sajal project
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A
ON
Customer Preference Analysis and Increase in the Sales of the Garment Section.
JAIPURIA INSTITUTE OF MANAGEMENT
Submitted By:
Sajal Khanna
PGDM(RM) 2009-11
JIML-09-R-017
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PREFACE
PGDM is the one of the most reputed professional coures in the field of Retail Management.It include theory as well as its practical application.Summer Training is an integral part of PGDM-retail programme, for sucessful completion of this programme require two months summer training in retail organisation.
So after completion of third trimester each student at Jaipuria
Institute of Management, Lucknow need to under go two monthstraining in an organisation.
This training serves the purposes of acquainting the student withenvironment of an organisation in which student have to work hard in future .Only theoretical knowledge is not enough but its
practical application is also required to be learned. I was fortunate enough to have an opportunity of doing summer
training at Spencers Hyper, Lucknow . Every trainee wasrequired to prepare a report of his working in the organisation. I was assigned a project on
Customer Preference Analysis and tools to increase the sale of the garment section.
In this report,all the important findings of the project areincluded ,over and above an overall profile of the company (RPG Group ) is also given.It is hoped that this report will make thereaders familiar with the store and also give the idea about the
product and services offered by the company.
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DECLARATION
I, Sajal Khanna student of Jaipuria Institute of Management,
Lucknow, hereby declare that this project report entitled
Customer Preference Analysis and the Increment in the sales
of Garment section. for Spencer Retail Limited (A RPG
Enterprise), Lucknow, is a bonafide record of work done by me
during the course of summer internship project work of PGDM
program and all contents and facts are prepared and presented by
me without any bias.
Place: Sajal
Date:
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ACKNOWLEDGEMENTS
First of all, I express my sage sense of gratitude and
indebtedness to the Directorl, Prof. S. Chakraborty of JAIPURIA
INSTITUTE OF MANAGEMENT, LUCKNOW, from the bottom
of my heart, for his unprecedented support and faith that I do the
best and his valuable recommendation and for accepting this
project.I sincerely express my thanks to our Marketing lecturer
Dr. Shalini Nath Tripathi for her valuable guidance and
intellectual suggestions during this project.
Also, I also express my sincere thankfulness to my mentor
Ms. Reeti Agarwal for their kind advice, suggestions and constant
help in a lot of various ways during project course.
I take immense pleasure in thanking Mr. Rajneesh Rai, Store
Manager and Mr. Shekhar Sharma, HR Manager , for having
permitted me to carry out this project work.
I wish to express my deep sense of gratitude to my Internal Guide ,
Mr. Anubhav Kesarwani for her able guidance and useful
suggestions, which helped me in completing the project work, in
time.
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Needless to mention that Mr. Pranav Tripathi, who had been a
source of inspiration and for his timely guidance in the conduct of
our project work. I would also like to thank Anna Maam and
Sheffali Maam for all their valuable assistance in the project
work.
Finally, yet importantly, I would like to express my heartfelt thanks
to my beloved parents for their blessings, my friends/classmates
for their help and wishes for the successful completion of this
project.
Sajal Khanna
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Retailing Customer is King
A Customer is the most important visitor on our premises. He isnot dependent on us. We are dependent on him. He is not an
interruption on our work. He is the purpose of it. He is not an
outside of our business. He is a part of it and we are not doing him
a favor by servicing him. He is doing us a favor by giving us an
opportunity to do so.
Mahatma Gandhi
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The Indian MacroEconomy
Tops AT Kearney list of emerging markets for global Retailers to enter.
2nd Fastest growing economy in the World and 50% of thetotal GDP led by services such as IT, telecommunications,healthcare and retailing.
GDP growth rate for the year 2007-08 ended at 9.4% (in 1 st
quarter) and current GDP (6 %) is better than China and other developed country. Reserves crossed the $150 billion mark, showcasing India as
one of the top ten holders of Foreign exchange reserves. Population 1000+ Million 50 Million Rich and 300
Million Middle class
65% of population below 35 years and 54% below age 25
years Working population in India is growing like most other
developed countries.
China has issues of median age 30-34 years at the early stage of development and psychology issues after implementation of one child policy
Housing Boom due to nuclear family, low interest rates,tax benefits from government and lastly strong Indian valuesdriven by savings and owning home
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Economy - 4h largest economy in the world on PPP basis(next only to USA, China and Japan) -One of the fastest
growing economy with 6.5% average growth in GDP for last
10 years and is expected to rank 3rd
by 2010, just behind theUS and China
Fragmented retailing with 5 million retailers and 95% lessthan 500 sq ft nation of shop-keepers -brilliant trading and entrepreneur community
Over 3.9 million tourists visited India this year, up from 3.0million last year.
India is on the track to be the servicing capital of the world (As China is manufacturing capital) and Organized retail
growing at 25-30%+ p.a. compound growth.
IPL has again drastically changed the outlook of the wholeworld towards India. It has the highest paid players acrossthe Globe / Sports.
Real Estate & Retailers in India are the most aggressive in Asia in expanding their businesses, thus creating a hugedemand for real estate. Their preferred means of expansionis to increase the number of outlets in a city and also expand to other regions.
Driven by changing lifestyles, strong income growth and
favorable demographic patterns, Indian retail is expanding at a rapid pace.
Besides the 6 metros, India has 61 other cities with populations greater than 0.5 million and contributes about 14% to the countrys GDP.
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India Vs World
Indian retail is fragmented with over 12 million outlets
operating in the country which is 13 times more the all retail
outlets operating in USA (0.9 million outlets).
India has the highest number of outlets per capita in theworld - widely spread retail network but with the lowest per
capita retail space (@ 2 sq. ft. per person)
Annual turnover of Wal-Mart (Sales in 2001 were $219
billion) is higher than the size of Indian retail industry.
Almost 100 times more than the turnover of HLL (India's
largest FMCG Company).
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Wal-Mart - over 4,800 stores (over 47 million square meters)
where as none of India's large format store (Spencers, Big
Bazaar, Shoppers' Stop, Westside, Lifestyle) can compare.
The Wal-Mart sales per hour of $22 million are
incomparable to any retailer in the world. Numbers of
employees in Wal-Mart are about 1.3 million where as the
entire Indian retail industry employs about three million
people.
One-day sales record at Wal-Mart (11/23/01) $1.25 billion -
roughly two third of HLL's annual turnover.
Developed economies like the U.S. employ between 10 and
11 percent of their workforce in retailing (against 7 percent
employed in India today).
60% of retailers in India feel that the multiple format
approach will be successful here whereas in US 34 of the
fastest-growing 50 retailers have just one format
Inventory turns ratio: measures efficiency of operations. The
U.S. retail sector has an average inventory turns ratio of
about 18. Many Indian retailers have inventory turns levels
between 4 and 10 - KPMG surveyed.
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Global best-practice retailers can achieve more than 95
percent availability of all SKUs on the retail shelves
(translating into a stock-out level of less than 5 %).The
stock-out levels among Indian retailers surveyed ranged
from 5 to 15 percent.
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EXECUTIVE SUMMARY
India is undergoing a retail revolution from the unorganized to the
organized sector. There are now more modern retail formats such
as hypermarkets, supermarkets and malls. Several international
companies such as Wal-Mart, Carrefour, and Tesco are planning
their entry and establishment into the Indian market while several
domestic companies are setting up their retail setups, exclusive
showrooms and large format stores such as Reliance, Tata and the
whole concept of shopping has altered in terms of format and
consumer buying behavior, ushering in a revolution in shopping in
India.
These trends indicate that retailing, as an industry, has come into
its own. According to a study by the Confederation of Indian
Industry organized retail sales in India were a mere Rs. 135
billion in 2000 but today with over 15 million outlets, that provide
employment to over 74 million people (7% of the population), the size of the retail industry stands at USD 350 billion and it is
expected to grow at a compounded 30% over the next 5 years.
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Retailing is an important infrastructure perquisite for modernizing
India and can facilitate rapid economic growth. Modernization of
all retail services would enable efficient delivery of goods and
value-added services to the consumer, making a higher
contribution to the Gross Domestic Product.
This project focuses on taking an in-depth analysis of Customers.
The analysis is done by looking at Global retail trends vis--vis
the ones in India, the current state of the Indian retail industry,
industry characteristics and Economic drivers of change, to
understand the consumer buying behavior and what it foretells
about the nature of the Industry. To predict the kind of retail
models that would work in India, besides analyzing the existing
ones, the attempt has been to predict potentially promising
formats.
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TABEL OF CONTENTS
Introduction
The word retail has its origin in French word retaillier and means to cut a piece off or
to break bulk . The term Retailing is defined as All activities involved in selling goods
S.No. CONTENTS Pg No.
1. Introduction to Retailing 14
2. Objective of the Study 16
3. Company Profile RPG Group
Spencers Retail Ltd 17
4. Customer Catchment Analysis 39
5. Data Analysis and Interpretation 41
6. Findings of the Study 75
7. Challenges and Opportunities 78
8. Suggestions and Recommendations 80
9. Limitation of the Study 82
10. Conclusion 83
11. Garment Section Sales Increased 85
12. Annexure 88
13. Bibliography 92
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and services directly to final consumers for their personal and non-business use. In
simple terms, it implies a first-hand transaction with customer. Retailing involves a direct
interface with the customer and the coordination of business activities from end to end
right, from the concept or design stage of a product or offering, to its delivery and post
delivery service to the customer. The industry has contributed to the fastest changing and
dynamic industries in the world today.
Retailing, it is an emerging trend in the India and Lucknow is not far behind which is also
witnessing the stupendous growth and opportunities presented by this sector. Many
institutions- Manufacturing, Wholesalers and retailers do retailing, but most retailing is
done by Retailers. A business wholesales come from primarily from retailing. It is a
proven fact that in India the retail industry has become the 2 nd largest employer after
agriculture. Indian retail sector is in boom period and many reasons are contributing to it.
The retail scenario in India is unique. Much of it is in the unorganized sector, with over
12 million retail outlets of various sizes and formats. Almost 95% of these retail outlets
are less than 500 sq. ft. In size, the per capita retail space in India being 2 sq. ft. compared
to the US figure of 16 sq. ft. Thus Indias per capita retailing space is the lowest in the
world.
With more than 9 outlets per 1000 people, India has the largest number of outlets in the
world. Most of them are independent and contribute as much as 95% to the total retail
sales. Because of the increasing number of nuclear family, working women, greater work
pressure and increased commuting time, convenience has become a priority for the Indian
consumers.
The growth and development of organized retailing in India is driven by two main factors
lower price and benefits the consumers cant resist. According to experts, economies of
scale drive down the cost of supply chain, allowing retailers to offers more benefits
offered to the customers. Globally, retailing is customer-centric with an emphasis on
innovation in products, process and services. In short, the customer is the king.
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The Indian retail market is the 5 th largest retail destination globally. It is estimated to
grow from the US $ 330 billion in 2007 to US $ 427 billion by 2010 and US $ 637 billion
by 2015.
In Lucknow, Spencers Retail came up as the organized retail outlet in the form of aHypermarket in the year 200, with its inception in Lucknow, shopping got an altogether
new meaning in Lucknow. Some of the striking features of Spencers Retail a big and
different formats having nice store image, along with soothing music and luring visual
display of the products with self-selection facility magnetizing customers to choose from
a wide assortment and variety of the products priced with entrancing discounts and
fabulous offers.
The emergence of organized retailing has led to competition which has resulted to thedemographics & psychographic changes in the life of urban consumers. The life style and
purchasing power of the middle class & upper class segment have fuelled the growth of
organized retailing to intense competition among the big players.
Spencers Retail is facing big intense competition from organized retail outlets like Big
Bazaar, Shoppers Stop, Pantaloons, Vishal Mega Mart etc, to name a few, and from
unorganized retailers like Kirana shops, Garment shops etc. Competition in retail sector
has become extremely keen. Many new players coming in the retail market has increased
the degree of competition by adopting 5 Ps (i.e. place, product, price, promotion and
people) for successful retailing. While some of the exiting retailers survived, others failed
to do so.
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Objectives of the study
1. Demographic analysis of Trade area of Spencers Hyper, Lucknow.
2. To study about the perception of customers with reference to availability of
products and services in Spencers.
3. To study about customer preferences and frequency of shopping.
4. To know the target customers of Spencers Retail at Gomti Nagar.
5. To understand the customers expectation from retail service provider
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About Company
Type: - Private Conglomerate
Founded: - Mumbai, India (1979)
Founder(s):- RP Goenka
Headquarters: - Mumbai, India
Key People: - RP Goenka (Chairman Emeritus)
Harsh Goenka (Chairman)
Sanjeev Goenka (Vice Chairman)
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Industry: - Power, Retail, Tyres/Tires, Transmission,
Technology, Entertainment and other
Revenue: - US$3.25 billion
Employees: - 58000
Website: - www.rpggroup.com
RPG Enterprises:-
RPG Enterprises, established in 1979 by RP Goenka, is one of Indias fastest growing
business groups with a turnover touching Turnover of Rs. 13,500 cr. and initially
encompassed Phillips Carbon Black, Asian Cables, Agarpara Jute and Murphy India.
Currently, RP Goenka retains the title of Chairman Emeritus, while the chairmanship and
vice-chairman ship have been assumed by his sons Harish and Sanjeev Goenka
respectively.
The group has more than twenty companies managing diverse business interests in the
areas of Power , Tyre , Transmission, IT, Retail , Entertainment, Carbon Black, and
Specialty .
The conglomerates major companies, subsidiaries and affiliates are..
Power
CESC Noida Power Company Limited
Tyres / Tires
CEAT CEAT Srilanka Phillips Carbon Black
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http://en.wikipedia.org/wiki/File:RPG_Logo.pnghttp://en.wikipedia.org/wiki/File:RPG_Logo.pnghttp://en.wikipedia.org/wiki/File:RPG_Logo.pnghttp://en.wikipedia.org/wiki/File:RPG_Logo.pnghttp://www.rpggroup.com/http://en.wikipedia.org/wiki/File:RPG_Logo.pnghttp://www.rpggroup.com/ -
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Harrisons Malayalam
Transmission
KEC International RPG Transmission Nitel
Technology
Zensar Technologies RPG Cables RPG Life Sciences Raychem RPG
Retail
Spencer's Retail Music World Books and Beyond RPG Cellucom
Entertainment
Saregama
Other
Spencer's Travel Services Spencer International Hotels
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http://en.wikipedia.org/wiki/RPGLShttp://en.wikipedia.org/wiki/Spencer's_Retailhttp://en.wikipedia.org/wiki/RPGLShttp://en.wikipedia.org/wiki/Spencer's_Retail -
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Wide-ranging businesses, growing returns and a reputation to reckon, makes working
with RPG an enriching experience. Where entrepreneurial skills are valued, excellence is
the by-word, and performance is a pre-requisite .
ManagementThe RPG Management Board is the backbone of the conglomerate. Its members
are highly qualified professionals, well experienced in their respective fields.
ValuesRPGs business ethics promote higher levels of excellence. The groups values of
Customer Sovereignty, People Orientation, Innovation & Entrepreneurship,
Transparency & Integrity and Passion for Superior Performance, Anticipation, Speed
and Flexibility propel it to perform and excel in all spheres of the business.
QualityFor RPG quality determines success. Continuous process improvements are
carried out to ensure complete satisfaction of customer and market requirements.
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Beyond BusinessRPG is a socially responsible organization; believing in giving back to the
community what it has gained from it. The group regularly contributes toward the
welfare of various social groups and is involved in promoting social activities in the
field of sports and arts.
History of RPG GroupThe history of RPG began in 1820 when Ramdutt Goenka, from a small town in
Rajasthan, came to Calcutta to do business with the British East India Company. The
following milestones speak of his enterprising efforts, and the subsequent growth of the
RPG group.
By the 1900s the Goenkas establish themselves in diverse business sectors like
banking, textiles, jute and tea.
Sir Hariram Goenka and Sir Badridas Goenka are conferred knighthood by the
British for outstanding contribution to business and the community.
In 1933, Sir Badridas Goenka becomes the first Indian to be appointed Chairman
of the Imperial Bank of India (now the State Bank of India).
He is elected President of the Federation of Indian Chambers of Commerce and
Industry (FICCI) in 1945.
Keshav Prasad Goenka (son of Sir Badridas Goenka) continues the successful
trait of entrepreneurship.
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In 1950 Goenkas acquire two British trading houses - Duncan Brothers and
Octavius Steel.
After successful acquisitions in the areas of tea, automobile, tyre, jute, cotton
textile and electric cables, Keshav Prasad Goenka retires in the 70s. His businessis taken over by his three sons.
One of the sons, Rama Prasad Goenka (better known as RP Goenka), starts RPG
Enterprises in 1979 with Phillips Carbon Black, Asian Cables, Agarpara Jute and
Murphy India.
The 80s see further acquisitions by the RPG group, the first being CEAT Tyres of
India in 1981. The group then went on to acquire KEC (1982); Searle India, nowRPG Life Sciences (1983); Dunlop (1984); HMV (1988); and finally CESC,
Harrisons Malayalam, Spencer & Co. and ICIM in 1989.
RP Goenkas sons Harsh (Chairman) and Sanjeev (Vice-Chairman) spearhead the
groups management from 1990.
RP Goenka currently oversees the groups affairs as Chairman Emeritus.
Today, RPG has more than twenty companies across eight business sectors, with a
Turnover of Rs. 13,500 cr.
The group recorded a turnover of Rs 11,500 crore (equivalent to Rs. 115 billion)
for fiscal year 2007.
Management Board
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Company HistoryCont..
YEAREVENTS1987 - The company was established in the year. The main objects of the company aremarketing 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 HotelsLtd., Spencer, Furnitures & Furnishing, Spencer Estates Ltd., Spencer Consumer
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Products and Services Ltd., Spencer Pharmaceticals Ltd., G.F.Kellner & Co. Ltd., FiestaRestaurant Ltd., Kartik Pharmaceuticals Ltd., and Spencer Information Services are thesubsidiaries.
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 andaccordingly a Subsidiary of this Company also from 24th January.
1996 - The Company has entered into a Technical Assistance cum Joint venture optionsAgreement with M/s. Dairy Farm International Holdings Ltd., a major Internationalretailing force operating in several countries.
1997 - During the year the company has entered into a Joint Venture agreement with DFIMauritius Limited to enter yet another Retail Format. A chain of retail drugstores, dealingin 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 missionto lop a highly regarded retail business in India by offering excellent service and value tocustomers. 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 equityshares 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 WorldSupermarket started during 1996 made significant progress during the year. - Foodworld
has became a household name in three cities enjoying high patronage from its customersand suppliers.
2000 - Spencer & Company, an RPG group outfit, has signed a joint venture agreementwith Dairy Farm International Mauritius (DFI) to launch a chain of large distributioninfrastrucutre, essentially meant to serve the small retailer.
- The Company will form a joint venture company, as a subsidiary of Spencers.
Spencer's Retail.RPG Enterprises is not only one of the biggest, but also of the most respected names in
the industry. A US $ 3.25 billion dollars business conglomerate, RPG is one of the
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powerhouses that drive Indian industry. With more than twenty companies, it spans six
business sectors - Power, Tyres, Transmission, Technology, Retail and Entertainment.
With such a diverse portfolio, RPG Enterprises has had unrivalled success which speaks
very highly of the efficiency and vision with which the group is run. Over the years, RPG
Enterprises has built a huge reservoir of trust and goodwill among the people of India.
We at Spencers are truly proud to be a part of the RPG family .
About Spencers Retail Ltd .Spencers Retail Limited, part of the Rs 13,500 crores RPG group, is one of Indias
largest and fastest growing multi-format retailer with 350 stores, including 35 large
format stores across 60 cities in India. Spencers focuses on verticals like food andgrocery, fruit and vegetables, electrical and electronics, home and office essentials,
garments and fashion accessories, toys, food and personal care, music and books.
Established in 1996, Spencers has become a popular destination for shoppers in India
with hypermarkets and convenient stores catering to various shopping needs of its large
consumer base. We are proud today of our 350 stores across 60 cities covering a retail
trading area of 1.3 million square feet and an astonishing 4.5 million customers a month.
Spencers is one of the earliest entrants into the retail space and literally introduced the
Indian consumer to the concept of organized retailing. In fact, the first ever hyper store in
India was launched by Spencers at Hyderabad in the year 2001. The journey onwards
has been one of the most aggressive of all the retail players in India. The company started
its operations way back in the early 90s in the south and over the last one year-and-a-
half, it has ramped up operations to about 350 stores across 60 cities in India. Spencers is
on a high growth path.
.
Important Point:- Fastest growing retail stores with multiple formats and retailing food, apparel,
fashion, electronics, lifestyle products, music and books.
Established in 1996 and headquarter is in Chennai.
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Retail footage of over 6 million square feet and over 350 Spencers stores in 60 cities.
Spencers Retail has a loyalty program. They offer a co-branded credit card with
HSBC bank (HSBC Spencer's Retail Credit Card).
Spencer's Retail Limited, one of India's largest food first multi-format retailer, has
been awarded the Coca Cola Golden Spoon "Most Admired Food & Grocery Retailer
for Convenience and Express formats" Award at the Food Forum of India, 2009 held
in Mumbai and this is the third award that the organization has received, three years
in a row. Spencers was awarded the Turnaround Retailer of the year 2006 at the
India Retailers Forum, 2007 in Mumbai. And Most Evolved Retailer of the year 2007
at the India Retail Forum, 2008.
With an immense amount of expertise and credibility, Spencers Retail has become
the highest benchmark for the Indian retail Industry. In fact, the companys
continuing expansion plans aim to help Spencers Retail meet the challenges of the
retail industry in an even better manner than it does today.
New Ventures Spencers 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 .
VisionTo build Spencers as the most professionally managed retail business in the country
through:- Excellence in all operating processes;
Nurturing and facilitating a learning and growth culture;
Building a unique retail experience for the customers.
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MissionStrives to exceed the aspirations of its customers for a healthy and fulfilling lifestyle by
providing:-
The most innovative consumer goods and delectable taste experience.
The ultimate shopping experience.
Unsurpassed customer service.
Unbeatable value
The next place away from home or office to relax and indulge themselves.
Major Future Plan
It will be going in for public issue within the next 12 months to raise capital for
expansion.
The company plans to focus on the larger format stores in the identified growth
clusters with higher market potential value and stronger brand equity for
Spencer's. These clusters are Bangalore, Hyderabad, Coastal Andhra Pradesh,
Chennai, Delhi NCR, East UP, Pune, Mumbai, South Kerala, Aurangabad, Punjab
and Kolkata.
The company will be investing Rs. 10 billion over the next 3 years using both
internal source and an IPO.
The company has already reserved 1 million square feet of space all over thecountry and will be creating close to 10,000 jobs in its different formats.
Spencers Retail currently employees 4,500 people and has 6 million square feet
of space.
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In every financial year, Spencers is increasing its stores from 150 to 250 with a
target of expanding by 400 more in the next two years.
The company had last year announced a Rs 1,500 investment plan to expand its
business across the country. Spencers was the first to introduce the concept of music retailing with " Music
World " chain of stores, followed by " Books and Beyond "[Retail chain of Book
Stores] and " RPG Cellucom "[Retail Chain of Mobile Stores]. They are planning
to setup 1,500 cellcoms and 400 Music Stores by 2010. Spencers has announced that it will very soon launch CRT TVs under the brand
name Yashika. Spencers is all set to enter the standalone Lifestyle Retailing segment by opening
American Lifestyle Brand stores in India - Beverly Hills Polo Club [BHPC]. The
company plans to setup five BHPC stores all in the Delhi NCR region and then
move to other metros.
Technology in Retail: The ERPInitiative at Spencer's Retail Ltd.
Over the years, during the turn of twentieth century as the consumer demand increasedand the retailers geared up to meet this increase world over, technology evolved rapidlyto support this growth. The hardware and software tools that have now become almostessential for retailing can be classified into 3 broad categories:
Customer Interfacing Systems
Bar Coding and Scanners
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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 fastand easy payment process. Electronic cheque conversion, a recent development inthis area, processes a cheque electronically by transmitting transactioninformation to the retailer and consumer's bank.
Internet
Internet is also rapidly evolving as a customer interface, removing the need of acustomer 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 todistribution, front and back office store systems and merchandising. An integratedsupply chain helps the retailer in maintaining his stocks, getting his supplies ontime, preventing stock-outs and thus reducing his costs, while servicing thecustomer better.
CRM Systems
The rise of loyalty programs, mail order and the Internet has provided retailerswith real access to consumer data. Data warehousing and mining technologiesoffers retailers the tools they need to make sense of their consumer data and applyit 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 enableconsolidation 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
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Demographics and buying patterns of residents of an area can be used to comparevarious possible sites for opening new stores. Today, software packages arehelping retailers not only in their locational decisions but in decisions regardingstore 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 gutfeel of the store manager. A larger number of visual merchandising tools are availableto 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 theydidn't provide the scalability that was needed. Plus, some of its stores are currentlyworking 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 cameclosest to fulfilling its needs. Project Shakti has been operating for the last two years outof 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, WestBengal, Jharkhand, and Karnataka (Bangalore, since 1 July 2008). Spencer's Retail hasrolled 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 latestMySAP ERP IS Retail ECC 6.0 for their operations in Books & Beyond, and aregradually 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 respectivedistribution centres (DC) and selling to customers. The DCs in turn would be procuringarticles based on the site's need from different vendors. The business processes coveredunder this are purchase, sales, inventory controlling along with financial accounting. Thechallenges faced during the implementation are managing the different pricing
procedures which change very rapidly, managing the promotions; automation of the POSinformation, high volume of information to be processed, GMROI (Gross Margin Returnon Investment) etc.
They have followed SAP Methodology during the course of this implementation. TheProject leader from SAP India gathered the necessary KPI's, Dimensions and reportsfrom the functional consultants. Based on these inputs he prepared a Data Model and the
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Blue Print. Taking this Blue print as input the team at RPG was responsible in preparingthe technical specs and also realize/develop the objects.
With ERP, high-availability is a challenge as the network over which the data travelsfrom, 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 businesswarehousing servers. For data processing, they have 'staging servers'. These areintermediary servers to store data temporarily before moving it to the SAP Productionserver. Eventually, all stores and warehouses across all locations will be integrated withits 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 processingand analytics.
In its legacy systems, they have deployed solutions like SAS and SAPZone. They usethem to do bill-value and time analysis. They are also using MySAP BusinessWarehousing 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 graduallyimplementing business intelligence into their system in due course.
An important pillar of retail business is ERP, which has three elements People, Processand 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. Thismakes the task more challenging, as it needs to manage deployments in such a dynamicenvironment keeping pace with the company's exponential growth plans.
OperationsSpencer's has retail footage of over 1 million square feet and over 275 Spencer's stores in50 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 rangesfrom 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 andfrozen foods, garments, consumer electronics & electrical products, home
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care, home dcor & home needs, office stationeries, soft toys. Besides, thestores also comprise book & music retailing, electronic gadgets and ITaccessories. On an average, a Spencer's hyper stocks 70,000 SKUs across35,000 items.
The Spencer's stores are neighborhood stores ranging from 1500 less than15000 sq. ft. These stores stock the necessary range and assortment in fruitand vegetables, fmcg food and non-food, staples and frozen foods andcater 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 ftsometimes offer home care products; personal care products, bakery,chilled and frozen food; baby care, basics in garments and limited range of electronics and electrical.
Formats of Spencers outlets
Spencers has retail footage over 2 million square feet and over 400 Spencers storesin 65 cities.
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The Company operates through the following formats:
1. Spencers Hypermarkets: A fast growing retail network of hypermarkets with large format stores in Mumbai, Gurgaon, Ghaziabad,Lucknow, Calicut, Hyderabad, Vizag, Vijaywada, Aurangabad, Durgapur andKolkata.
2. Spencers super : One of the largest supermarket chains in the food andgrocery segment in India.
3. Spencers Daily : Small format stores conveniently located with a range of products to meet daily household needs.
4. Spencers express : Food and grocery store next door.
Spencers Daily
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Fresh Fruit Stall Market stall Manton Market
The Spencers Daily store is a friendly neighborhood store, which caters to theentire daily shopping needs- from regular groceries to fresh food and also weeklytop-up shopping.
It is about 4000-7000 sq ft in size and with a bright and friendly atmosphere;Spencers Daily saves the hassle of bargaining with the local kirana shop owners(because it offers the lowest possible prices).
Spencers Express
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Spencers Express is a store next door for the fresh needs at arms length.
These stores are around 1000 sq ft in size. They are open from 7 am to 9 pm andalso provides with home delivery.
The Express stores stock dairy, fruit and vegetables, bread and bread products, cutvegetables/ready to cook, fruit juice, fresh batter, fresh coffee/tea, fresh masalas,fresh pickles, fresh Ghee, fresh Fish and meat.
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Spencers Fresh
Spencers fresh stores provide with an enjoyable and convenientshopping environment in very own neighborhood. These 2000 sqft. 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 aclean, bright and hygienic ambience, Spencers Fresh is far better the regular sabzi mandis or local vegetables markets and atSpencers.
Fresh consumers not only do get fresh, clean and tasty farm produce but also the lowest possible prices in the locality, yes evenlower than sabziwala!
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Spencers Super
The Spencers Super is the place to go for the monthly shopping.
About 8000-15000 sq ft. in size, the Spencers Super not onlycaters to the daily needs but also stocks home care products;personal care products, Bakery, Chilled and frozen food; Babycare besides groceries & staples, Fresh fruits and vegetable.
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Spencers Hyper
The Spencers Hypermarkets are huge destination stores, more than25,000 sq ft. in trading area. Shoppers come here looking for fantasticdeals across all categories.
Hypermarkets ensure a comfortable, clean, bright and functionalambience to shop along with the convenience of finding everythingunder one roof at the best value for money.
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Indias first modern format hypermarket was opened by Spencers in Hyderabad inJanuary 2001. Located over an area of 1,20,000 sq.ft., the store has a trading area of 36,000 sq.ft. The Spencers hypermarkets, located across the country, are openthroughout the day, seven days a week, 365 days a year.
Spencers already employ over 9000 employees across 60 cities. Roughly 1/3 rd of theteam are women.
Spencers began its operations in India way back in 1863 and since then hasremained a part of the lives of Indian consumers. 145 years later, the Spencers namestill evokes special memory of authentic quality at affordable prices.
Currently, RPGs Retail activity comprises Spencers Retail, RPG Cellucom, Books& Beyond and MusicWorld. RPGs total retail outlets are more than The total areaof all Spencers stores across the country is over .. sq.ft. Spencers currently has anational consumer base of over 48 million people, who walk into the store every year.
Snapshot
Different Formats of Spencers
Format
Stocks MinimumTrading
Area(sq. ft.)
Spencers Express dairy, fruit and vegetables, bread and breadproducts, fruit juice, fresh batter, freshcoffee/tea, masalas, pickles, Ghee, Fish andmeat.
1000
Spencers Fresh vegetables, fruit, milk, eggs, breads 2000
Spencers daily regular groceries 4000-7000
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Spencers Super home care products; personal careproducts, Bakery, Chilled and frozen food;Baby care products
8000-15000
Spencers Hyper Miscellaneous More than 25000
CATCHMENT ANALYSIS
Introduction about Gomti Nagar, Lucknow:-
Gomti Nagar is developing area of Lucknow and it consists of all class of family. In his
area 5.4% families belong to Socio Economy Class (SEC) A+, 38.6% families belong to
SEC A, 52% families belong to SEC B and 4% families belong to SEC C. All this result
has been found with the help of Area Mapping technique and catchment analysis, all
these data are approximate. By all these data we can find that this area is having good
market opportunities retail Hypermarket.
If a company doesnt know who its shoppers are, how can company give themwhat they want? If company doesnt know where they come from, how can
company communicate with them? Finding answers to these questions is vital but
catchment analysis is very helpful in that.
A company or retail store will be able to optimize its activities if and only if
company knows its market in depth. Its market penetration, its success and its
potential depend on geographical factors, hard to grasp, hard to fully understand,
but catchment analysis is very helpful.
In the catchment analysis, first part is the area mapping of that local market and
through that finds the locations of the competitors, customers and traffic between
them. Through that we quantify the sizes and potentials of that local catchment
areas and market of that area as whole.
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With the help of catchment analysis, company knows the best location for
business, target and potential customers
Type of catchment area
There are four type of catchment that is following,
Unitary Catchment
It is hub of the catchment area around the outlet, from where maximum number of
people comes to the retail stores for shopping.
Secondary Catchment
This area is called secondary catchment area which is around 2 km far away retail
stores from where some people come to the shop for shopping.
Tertiary Catchment
The area from where only some selected or loyal customers come to the retail
stores that is more than 2 km far from outlet.
Outer Catchment
Outer catchment area is totally outer area from where only less no. of person
sometimes comes to the outlet,
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Data Analysis andInterpretation
Research in retail is very essential, as customer preferences and choices are dynamic and
change frequently, the retail company needs to understand these before redesigning its
processes for enhancing business and many more. Since customer interaction takes place
at the store and near store, there is a big opportunity to gather first hand information and
feedback from customers through research and survey. Research is carried out at theretail level for concept testing, business feasibility analysis, identification of the right
product mix, target customer and market potential.
The major objectives of analysis of data are:-
To evaluate and enhance data quality
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Describe the study population and its relationship
Examine effects of other relevant factors
Seek further insight into the relationship observed or not observed
Evaluate impact and importance
Target Customers- Age Wise:-This Table reveals about age group of customers at Gomti Nagar, Lucknow .
Table-1
Age Group of RespondentsAge Group No. of % of
18-25 134 33.526-35 152 3836-45 56 1446-55 27 6.7556+ 31 7.75
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Pie Chart: 1
Source: Primary Data
Inference:
From the Table-1 and Pie chart-1 depicted above,
Out of 400 respondents who answerd the questionnaire, 33.5% people fall in the age
group 18-25 years, 38% people fall in the age group 26-35 years,14% people fall in the
age group 36-45 years, 6.75% people fall in the age group 46-55 years and 7.75% people
fall in the age group 56+ years.
From the above analysis, it is observed that majority of the residents fall in the age group18-25 and 26-35
No. of family members of the
RespondentsThis table explains about No. of family members in a family of Gomti Nagar, Lucknow.
Table-2
No. of Family and Family Member's of RespondentMember's of family No. of Family % of Family
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1 2 0.52 20 53 42 10.54 123 30.755 138 34.56 54 13.57 15 3.758 4 19 1 0.25
11 1 0.25
Column Chart-2
Source : Primary Data
Inference :
From the Table-2, Column chart-2 depicted above,
Out of 400 respondents who answerd the questionnaire, 34.5 people belong to 5
members family, 33.75% people belong to 4 members family, 13.5% people belong to 6
members family, 10.5% people belong to 3 members family, 5% people belong to 2
members family, 1% people belong to 8 members family.
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Target Customer- EducationWise
This table explains about education level of customers of Gomti Nagar, Lucknow.
Table-3
Education Level of RespondentsEducation Level No. of Respondents % of Respondents
S.S.C. 7 1.75Inter 28 7
Graduate 215 53.75Post Graduate 138 34.5
Others 12 3
Pie Chart-3
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Source : Primary Data
Inference:
From the table, pie chart depicted above,
Out of 400 respondents who answered the questionnaire, 1.75% people belong to S.S.C.
category education level, 7% people belong to Inter category education level, 53.75%
people to Graduate category education level, 34.5% people belong to Post Graduate
category education level and 3% people belong to others category education level.
Occupation of RespondentsThis table describes the occupation of respondents who gave the answer of questionnaire
and explain class of customers of Gomti Nagar, Lucknow.
Table-4
Occupation of Respondents
Occupations No. of Respondents
% of
RespondentsStudent 73 18.25
House Wife 27 6.75Service 172 43
Business 87 21.75Others 41 10.25
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Pie Chart-4Source : Primary Data
Inference:
From the table, pie chart depicted above,
On this basis of 400 respondents who answered the questionnaire, 43% people belong to
Service category, 21.75% people belong to Business category, 18.25% belong to Student
category, 6.75% people belong to House Wife category and 10.25% people belong to
Others category.
Monthly Income of Respondents
This table states about the monthly income level of Respondents who gave the answer of
this survey questionnaire and belong to Gomti Nagar, Lucknow & so taken by me as a
sample of the entire population for the analysis .
Table-5
Monthly Income of
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Respondents
Monthly Income No. of Respondents
% of
Respondents< 5k 68 17%5k-10k 78 19.5%
10k-20k 149 37.25%> 20k 105 26.25%
Pie Chart- 5
Source : - Primary DataInference:
From the Table-5, Pie Chart-5 depicted above,
Out of 400 respondents who answered the questionnaire, 17% people belong less than
5000 monthly income category, 19.5% people belong to 5000-10,000 monthly income
category, 37.25% people belong 10,000-20,000 monthly income category and 26%
people belong to more than 20,000 monthly income category .
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Regular shopping place of Respondents
This question reveals about preference of Respondents regarding retail stores where they
shop regularly .
Table-6
Regular Shopping Place of RespondentsShopping Place No. of Respondents % of Respondents
Supermarket's 284 71Kirana Stores 45 11.25
Others 5 1.25Supermarket's & Kirana
Stores 66 16.5
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Pie Chart-6
Source :- Primary Data
Inference:-
From the Table-6, Pie Chart-6 depicted above,
Out of 400 respondents who answered the questionnaire, 71% people go to
Supermarkets for shopping, 16.50% people shop at Supermarkets and Kirana
Stores, 11.25% people shop at Kirana Stores and 1.25% people shop at others.
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Shopping place of Respondents is Spencers or
notThis question tells about respondents shop at Spencers or not and also it tells about
brand awareness of Spencers in market .
Table-6
No. of Respondents who visit Spencer's for shopping
No. of Respondents Shop at Spencer's % of Respondents203 Yes 50.75%
197 No 49.25%
Bar Chart-6
Source:- Primary Data
Inference:-
From the Table-6, Bar Chart-6 depicted above, Out of 400 respondents who answered the questionnaire, 50.75% people go to
Spencers for shopping but not regularly. By this question it reveals that brand
awareness of Spencers in Gomti Nagar is nice.
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49.25% people do not go Spencers.
No. of times in a week shopping at Spencers by the
RespondentsThis table explains about frequency of shopping in a week by the respondents in a week. Table-7
Shopping at Spencer's in a week by RespondentsNo. of times in a
week No. of Respondents % of Respondents1 76 192 98 24.53 20 54 8 2
20 1 0.25203 50.75
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Column Chart-7
Source:- Primary Data
Inference:-
From the table, column chart depicted above,
On the basis of 400 respondents who answered the questionnaire, 19% people go
to Spencers for shopping once in a week, 24.5% people shop at Spencers twice
in a week. 5% people shop at Spencers thrice in a week and 2.25% people shop
at Spencers 4times in a week.
Perception of Customers aboutvisiting to Hypermarket
This table reveals the opinion of customers for visiting a Hypermarket. It means the
convenience of the customer to visit a supermarket based on the different factors like
better price, accessibility, availability of variety of products, parking facility, store
ambience (it determined by store layout, soothing music, tempting visual display of the products with self selection facility, etc.), customer service, range of items, product
quality, value for money, offers and discounts, after sales service.
Table-8
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Perception of customers for visiting Supermarket
Outlook
% of
Very
PoorRespon
se
% of
PoorRespons
e
% of
Avg.Respon
se
% of
GoodRespon
se
% of
VGRespo
nse
% of
NoRespo
nseBetter
Price 0% 4% 28.50% 44.75% 12% 10.75%Good
Quality of
Products 0% 0.25% 5.5% 46.75% 36.75% 10.75%Variety of
Product
to choose 0.5% 3.75% 37.25% 35% 12.75% 10.75%Parking
Facilities 0.75% 5.75% 43.25% 33% 6% 11.25%Convenien
ce or
Opening
Hours 0% 1.25% 3% 57% 28% 10.75Product
Knowledg
e of
Employee 1% 1.5% 22.5% 57% 7.25% 10.75%Store
Comforta
ble to
shop-in 0% 0.5% 6.5% 43.5% 38.75% 10.75%
For Better Price
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Column Chart-8
Source:- Primary Data
Inference:-
From the Table-8, Column Chart-8 depicted above, Out of 400 respondents who answered the questionnaire, 44.75% said good about
pricing of products, 28.5% said average, 12% said very good and none said very
poor regarding Better Price in reasons for visiting a Hypermarket.
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Column Chart-9
Source:- Primary Data
Inference:-
From the Table-8, Column Chart-9 depicted above, Out of 400 respondents who answered the questionnaire, 46.75% said good about
quality of products, 5.5% said average, 36.75% said very good and none said very
poor regarding Good Quality of Products in reasons for visiting a Hypermarket .
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Column Chart-10
Source: - Primary Data
Inference:-
From the Table, Column Chart-10 depicted above,
Out of 400 respondents who answered the questionnaire, 35% said good about
availability of variety of products, 37.25% said average, 12.75% said very good
and none said very poor regarding Variety of Products to choose in reasons for
visiting a Supermarket.
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Column Chart-11
Source:- Primary Data
Inference:-
From the Table, Column Chart-11 depicted above, Out of 400 respondents who answered the questionnaire, Out of 400 respondents
who answered the questionnaire, 33% said good about parking facilities, 43.25%
said average, 6% said very good and 0.75% said very poor regarding Parking
Facilities in reasons for visiting a Hypermarket.
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Column Chart-12
Source:- Primary Data
Inference:-
From the Table, Column Chart-12 depicted above, Out of 400 respondents who answered the questionnaire, 57% said good about
convenience or opening hours, 3% said average, 28% said very good and none
said very poor regarding Convenience or Opening Hours in reasons for visiting a
Hypermarket.
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Column Chart-13
Source:- Primary Data
Inference:-
From the Table, Column Chart-13 depicted above, Out of 400 respondents who answered the questionnaire, 57% said good about
products knowledge of employee, 22.5% said average, 7.25% said very good and
1% said very poor regarding Convenience/Opening Hours in reasons for visiting a
Hypermarket.
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Column Chart-14
Source:- Primary Data
Inference:- Out of 400 respondents who answered the questionnaire, 43.5% said good about
Store comfortable to shop-in (ambience), 6.5% said average, 38.75% said very
good and none said very poor regarding Store Comfortable to Shop-in
(Ambience) in reasons for visiting a Hypermarket.
Hence from above analysis, customers show the maximum view on following things in
the reasons for visiting a supermarket product knowkedge of employee (57%),
Convenience/Opening Hours (57%),Good quality of Products (46.75), Better Price(44.75%), Store comfortable to shop-in ( 43.50%), Parking Facilities (43.25%) and
Variety of products to choose (37.25%).
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Respondents View inselecting a Hypermarket
This question tells about important things for a Supermarket on the basis of customers
view.
Table-9
Important things in selecting a Hypermarket in
Respondents view (in %)
Outlook
Not all
Imp.
Somew
hat Un
Imp. Neutral
Somewh
at Imp.
Extreme
ly Imp
No
Respon
se
Security 1.50% 5.50% 13% 28.50% 41.75% 9.75%Close to
where
You live 1.75% 2% 16% 20% 50.50% 9.75%
Convenience of
Parking 0% 0.75% 5.75% 57.75% 26% 9.75%Courteous
Friendly
Employee 0% 0% 5% 20.25% 65% 9.75%Offers
Several
brands 2.50% 1% 4.50% 29.75% 52.50% 9.75%High
quality
Fruits &
Vegetable
0.50% 0.50% 5% 11.75% 72.50% 9.75%
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sDiff.
Variety of
Dairyproduct 8.75% 1% 5% 32% 43.50% 9.75%
Non Veg.
& Sea
food 6% 12.75% 10.50% 52.25% 8.25% 10.25%Home
Delivery 0.50% 1.25% 4.25% 42.25% 42% 9.75%
Column Chart-15
Source:- Primary Data
Inference:-
From the Column Chart-15 depicted above,
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Out of 400 respondents who answered the questionnaire, 41.75% respondents
give their view regarding Security as extremely important, 28.50% respondents
somewhat important, 13% respondents neutral and 5.50% respondents somewhat
important during selecting a Hypermarket.
Column Chart-16
Source:- Primary Data
Inference: -
From the Column Chart-16 depicted above, Out of 400 respondents who answered the questionnaire, 50.50% respondents
give their view regarding Close to where you live as extremely important, 20%
respondents somewhat important, 16% respondents neutral during selecting a
Hypermarket.
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Column Chart-17
Source:- Primary Data
Inference:-
From the Column Chart-16 depicted above, Out of 400 respondents who answered the questionnaire, 57.75% respondents
give their view regarding Convenience of Parking somewhat important, 26%
respondents extremely important, 5.57% respondents neutral during selecting a
Hypermarket .
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Column Chart-18
Source:- Primary Data
Inference:-
From the Column Chart-17 depicted above,
Out of 400 respondents who answered the questionnaire, 65% respondents givetheir view regarding Courteous friendly employees as extremely important,
20.25% respondents somewhat important, 5% respondents neutral during
selecting a Hypermarket.
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Column Chart-19
Source:- Primary Data
Inference:-
From the Column Chart-18 depicted above,
Out of 400 respondents who answered the questionnaire, 52.5% respondents give
their view regarding Offers several brands as extremely important, 29.75%respondents somewhat important and 4.5% respondents neutral.
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Column Chart-20
Source:- Primary Data
Inference:-
From the Column Chart-19 depicted above, Out of 400 respondents who answered the questionnaire, 72.50% respondents
give their view regarding High quality fruits and vegetable as extremely
important, 11.75% respondents somewhat important, 5% respondents neutral and
9.75% respondents No Response during selecting a Hypermarket.
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Column Chart-21
Source:- Primary Data
Inference:-
From the Column Chart-20 depicted above, Out of 400 respondents who answered the questionnaire, 43.50% respondents
give their view regarding Offers different of dairy products as extremely
important, 32% respondents somewhat important, 5% respondents neutral and
9.75% respondents No Response during selecting a Hypermarket.
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Column Chart-22
Source:- Primary Data
Inference:-
From the Column Chart-21 depicted above,
Out of 400 respondents who answered the questionnaire, 52.25% respondentsgive their view regarding Sells fresh Non-Veg. & Sea food as somewhat
important, 12.75% respondents 12.75 somewhat Un important, 10.50%
respondents Neutral, 10.25% respondents No Response during selecting a
Hypermarket.
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Column Chart-23
Source:- Primary Data
Inference:-
From the Column Chart-22 depicted above, Out of 400 respondents who answered the questionnaire, 42.20% respondents
give their view regarding Home Delivery as somewhat important, 42%
respondents extremely important and 9.75% respondents No Response during
selecting a Hypermarket.
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Customers Expectation withrespect to Services
This table tells about what kinds of services, customers expect from Spencers and other Hypermarket.
Table-10
Kind of Services customers expect
Services Important Not Important
No
ResponseFast Billing 90.25% 4.50% 5.25%
Ticket BookingCounter's 24.50% 69.25% 6.25%
Ample Parking 70.25% 24.25% 5.50%Home Delivery 79.50% 15.25% 5.25%
All C. & D. cards
Should accept 92.50% 2% 5.50%
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Column Chart-24
Source:- Primary Data
Inference:-
From the Table-10, Column Chart-23 depicted above, Out of 400 respondents who answered the questionnaire, 90.25% respondents
give their view regarding Fast Billing as important, 69.25% respondents give
their view regarding Ticket Booking Counters as not important and 24.50%respondents important, 70.25% respondents give their view regarding Ample
Parking as important, 79.50% respondents give their view regarding Home
Delivery as important and 92.50% respondents give their view regarding all
credit and debit cards should accept as important.
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SEC Category of Family at
Gomti NagarThis table explains about SEC (Socio Economic Class) category of family at Gomti
Nagar, Lucknow. This is done with the help of Area Mapping technique.
Table -11
SEC Category of FamilyFamily class No. of Family % of Family
SEC A + 538 5.40%
SEC A 3824 38.60%SEC B 5148 52%SEC C 391 4%
Pie Chart-25
Source: Primary Data
Inference:- From the Table-11, Column Chart-25 depicted above
Gomti Naar is developing area of Lucknow and it consists of all class of family. In his
area 5.4% families belong to Socio Economy Class (SEC) A+, 38.6% families belong to
SEC A, 52% families belong to SEC B and 4% families belong to SEC C. All this result
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has been found with the help of Area Mapping technique and all these data are
approximate. By all these data we can find that this area is having good market
opportunities retail Hypermarket.
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Findings of the StudyAfter completing the survey and analyzing the responses of the persons contacted. I came
across the following facts Consumer life style and spending pattern are changing, more and more customers
are visiting hypermarket. Demographics of Gomti Nagar are very nice for retail business. In this area 38%
people belong 26-35 age group category, 33.5% people belong to 18-25 age group
category, and 14% people belong to 36-45 age group category and rest other age
group.
Gomti Nagar is mixture of Joint family and Nuclear family because 34.5% familyare having only 5 family members, 30.75% family are having only 4family
members, 13.5% family are having 6 family members and 10.5% family are
having 3 family members. Residents of Gomti Nagar are well qualified. 53.75% people are Graduate, 34.5%
people are Post Graduate and 7% people have studied Intermediate/ S.S.C. In Gomti Nagar area most of the people are service man. 43% people are job
holders, 21.75% people are business man, 18.25% people are students and 6.45%
women are house wives, 10.25% people do other works. Among the women
respondent most of them are job holders or business women. This finding
indicates that earning person is the decision maker for a family even for shopping
or any other work.
As we know in this area service holder people are maximum and this shows their
monthly income would be good. In this area, 37.25% people earn 10,000-20,000
monthly, 26.25% people earn more than 20,000, 19.50% people earn 5000-10,000
and 17% people earn less than 5000 monthly. In Gomti Nagar, 71 % people go to Hypermarket regularly for shopping only,
16.5% people go to Hypermarket & Kirana Store both and 11.25% people got to
Kirana Store for shopping only. This finding shows that hypermarket customers
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are more in this area, Spencers can enhance its business by providing better
services. In Gomti Nagar, 50.75% people go to Spencers for shopping and 49.25% people
dont go. In 50.75% people, 19% people shop at Spencers once in a week, 24.5%
people shop at Spencers twice in a week, 5% people shop at Spencers thrice in a
week and 2.25% people shop at Spencers several times in a week. In reasons for visiting a Hypermarket, people of Gomti Nagar gave their
preferences regarding Better Price 44.75% good &28.50% average, regarding
Good quality of products 46.75% good & 36.75% very good, regarding Variety
of products to choose 37.25% average, 35% good & 12.75% very good,
regarding Parking Facilities, 43.25% average & 33% good, regarding
Convenience/Opening Hours 57% good, 28% very good, regarding ProductKnowledge of Employee 57% good, 22.5% average & 7.25% very good,
regarding Store comfortable to shop-in (ambience) 43.5% good & 38.75% very
good. In the important things in selecting a Hypermarket, people of Gomti Nagar gave
their view- regarding Security - 41.75% extremely important & 28.50%
somewhat important, regarding Close to where you live 50.50% extremely
important & 20% somewhat important, regarding Convenience of Parking
57.75% somewhat important & 26% extremely important, regarding Courteous
friendly employee - 65% extremely important, 20.25% somewhat important,
regarding Offers several brand -52.50% extremely important & 29.75%
somewhat important, regarding high quality fruits and vegetables - 72.50%
extremely important, regarding Offer different variety of dairy products -
43.50% extremely important & 32% somewhat important, regarding sells fresh
Non-Veg. and Seafood - 52.25% somewhat important % 8.25% extremely
important, regarding home delivery - 42% extremely important & 42.25%
somewhat important. People of Gomti Nagar gave their expectation regarding different-different services, --
Fast billing 90.25% important, Ticket booking counters - 69.25% not important &
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24.50% important, Ample Parking 70.25% important, Home Delivery - 79.50%
important, All Credit & Debit cards should accept 92.50% important. Gomti Nagar is developing area of Lucknow and it consists of all class of family.
In his area 5.4% families belong to Socio Economy Class (SEC) A+, 38.6%
families belong to SEC A, 52% families belong to SEC B and 4% families belong
to SEC C. By all these data we can find that this area is having good market
opportunities retail Hypermarket .
Most of the customers complained---
In Spencers, several variety of product is not available, stock of 1 variety
of any brand is not sufficient; company should keep more variety of any
product. We never understand the pricing strategy of Spencers Hyper. Product assortment is not good.
Arrangement of products is not systematic, we face problem many times
for selection of products.
Dabur products are not available in sufficient amount.
Organic products are not available in the Spencers Daily since last two
month.
For vegetables and fruits, carry bag is small. Store closing time should be increased.
Most of the customers were not too happy with level of service.
Maximum time A.C. doesnt work properly.
Products are not updated; new launched products are not available.
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Challenges and OpportunitiesAt Gomti Nagar, 2 retail companies are doing their business. These are-
1. Spencers Hyper 2. Big Bazaar
Out of these 2 Supermarkets, on the basis of customer preferences, market survey Big
Bazaar is much more preffered by the customers as compared to Spencers Hyper.
Challenges at GomtiNagar Market:- Customers are flexible towards discount and offers with respect to
Hypermarkets. Despite high footfalls, the conversion ratio has been not good in the Spencer's
Hyper. Big Bazaar is creating intense competition before Spencers with the help of
various promotions schemes. Promotional activities Big Bazaar are continuously going on in the market with
the help of Templates and Kiosks Show. On the basis of customers preferences, Big Bazaar is having several varieties of
products with deep assortment and Big Bazaar has covered more market.
Personalized service offered by Mom-&-Pop stores.
Brand awareness of Spencers is not quite good only 50.75% people shop at
Spencers.
29% people shop at Kirana Stores.
Knowledgeable sales person inside store for motivating to the customers.
Competitors follow competitive and discount pricing strategy.
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Opportunities at Gomti Nagar Market:- Gomti Nagar is developing area of Lucknow and it consists of all class of family,
38.6% families belong to Socio Economy Class (SEC) A, 52% families belong toSEC B. this shows that Hypermarkets going people are available.
Urbanization is increasing of Gomti Nagar in broad form, also disposable income
of people. People of Gomti Nagar are changing the Pattern of consumption along with
shopping trends. 71% people shop regularly at Hypermarkets, 16.5% people shop at
Hypermarkets and Kirana Stores both and 11.25% people shop at only Kirana
Stores. This shows maximum no. of people shop at Hypermarkets and if
Spencers will provide better customer service in comparison to its competitors
with help of attractive offers, promotions and marketing activities then Spencers
can enhance its sales. Most of Gomti Nagar people are educated and job holder, Spencers can do better
promotion through pamphlets about facilities and services of Spencers. Most of the people of Gomti Nagar earn 10,000-20,000 and more than 20,000.
Customers are very eager to know about offers, discount schemes provided byHypermarkets/Spencers then Spencers should do better promotion for creating
awareness about all offers.
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Suggestions and
Recommendations Fast moving consumer goods (FMCG) or daily used items should be available in
more number of varieties because customers of Gomti Nagar complain regarding
this and FMCG product should be placed near exit door as customers can
purchase the daily use items at the time of exit, which can directly increase the
sales of Spencers as done in other retail outlets.
Most of the customers believe that stock is not updated and no offer schemes are
provided by Spencers on the old stock. Same price is charged for both the fresh
stock and old stock. Respondents feel offers should be provided on the old stock,
as is done in other retail stores. As the majority of population at Gomti Nagar area are falling into the age group
of 26-35 and 18-25.Company should concentrate on the need of people falling
into that category. People of Gomti Nagar, say that Spencers should employ experienced sales staff
so that they can better explain the quality and features of the products. Some of the people find in-store environment of Spencers very dull, so try to
maintain nice store image which attracts the customers and it works in word of
mouth marketing for attracting more customers. Variety of products should be increased for better selection by the customers so
that customers can choose from a huge lot of items of different companies having
different features as the customers of Gomti Nagar complained more regarding
variety of products. Store layout should be redesigned that a customer can have easy access to the
product. Spencers should provide club Spencers membership card ( apart from HSBC
Loyalty card ), on that card one unique no. should be there and offer some point
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system on every purchase that will attract the customers, through that Spencers
can increase its sales.
People generally search for the product on offer so the high margin product
should be up fronted that mean those item should be in the eye height so that iteasily catches the customers attention and generates impulse purchase.
Company should try to include mens, ladies, and kids apparels segment in the
Spencers daily for attracting the customers.
At Gomti Nagar area, the percentage of family member group 5 and 4 is more.
Therefore company should try to attract that family by providing family pack
apparels. offer at discount rate
To improve Product visualization the Company should do visual merchandising in
better way.
Spencers should do intensive advertisement through pamphlets, local newspaper,
banners, FM Radio, Kiosks for creating more awareness.
Variety of products should be increased with deep assortment for better selection
by the customers so that customers can choose from huge lot of items of different
companies having different features.
Customers are very eager to know about offers, discount schemes provided by
Supermarkets/Spencers then Spencers should do better marketing for creating
awareness about offers and discount schemes.
Complained and feedback should be taken care in well manner to create the
loyalty and goodwill.
Merchandise should be arranged properly.
Company should offer competitive price with good quality of products because
most of the customers visit to Hypermarket for better price and quality of
products.
Company should give information to the customers through the marketing
gimmick (sms) using database of customers.
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Keep high quality fruits and vegetables in the stores, employees must be
courteous and friendly as most of the customer gave their preferences regarding
these.
Billing should be fast because customers dont want to stay in the store after
purchasing the products.
Limitations of the Study
Following are the few limitation of the particulars research study.
The sample size chosen is limited to 400 only because of time and financialconstraint.
This study was based purely in Gomti Nagar, Lucknow.
Data collected may not be a representation of the entire population.
The time duration for this project was only for a period of 45 days.
I also took the view of respondents who dont shop from Hypermarkets. This study was limited to the capabilities and willingness of the respondents in
appropriately answering the questions and information given by respondents may be correct and may not be correct .
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ConclusionIn the organized retail market of Lucknow, Spencers has come up with Hypermarket in
Lucknow after Big Bazaar, giving good competition to its competitors like Big Bazaar
and other retail outlets. In the near future, it plans to open many stores in Lucknow andsome stores in other parts of U.P. . Many more competitors has entered the market and
many are about to enter the market, making Spencers journey even tougher. Hence,
Spencers has to take some important steps to overcome its problem areas and implement
the suggestions before the existing and new retailers grab the opportunity making
Spencers existence even more challenging.
To sum up, Spencers is facing tough competition from its competitors Big Bazaar, More,
Vishal. Vijetha, Heritage Fresh@, Magna, Food World etc, who have grabbed half of the
market by establishing its stores in prime area of the city. Spencers has to do intensive
media advertisements by roping in celebrities as brand ambassadors to create awareness
of its existence, since most of the customers came to know only through friends and
family.
Spencers has completed 3 years of its launch in Lucknow; also Spencers Hyper at
Gomti Nagar has good brand awareness but still Spencers lacks in terms of availability
of products, range of items, pricing and advertisement regarding offers and discounts
which can mesmerize the customers to walk in to Spencers as compared to its
competitors Big Bazaar etc, also parking space should be increased and quality of sales
executive should be improved by appointing experienced sales staff who can cater to the
needs of the customers. The management has to take some major steps and implement the
above mentioned suggestions/recommendations as it directly affects the sales of
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Spencers. Gomti Nagar market have good opportunity for retail business, most of the
people belong to SEC A & B, educated and earning more money. 86.5% people go to
Supermarkets. Company can enhance its business or increase its sales by providing
better customer service than its competitors, increase the variety of merchandise with
deep assortment and intensive promotion with the help of pamphlets, kiosks, radio about
various offers, also provides club Spencers membership card.
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Garment Section SaleIncreased
The ultimate goal of most business is to increase sales and income. Ideally, we wantto attract new customers to our products and encourage repeat purchases. Awarenessrefers to how aware customers and potential customers are of our business and its
products .
Garment Section in Spencers was not showing any positive response in the sale graph.Section is not even able to achieve the 50% of their target sales, on the weekdays as wellas on the weekends too. We are assigned in the garment section to checkout the faults andthe gaps that hinders the sale. After a careful analysis for about about 3 days(includingweekends) conclusion drawn from it was ,
Weakness1. As spencers a two floor retail hypermarket, groundfloor for the
staples, HWP, fruits and vegetables where as the first floor for thegarment and accessories. Very big gap was the communication of thegarment section which was comparatively very low, due tounawareness in the customer. Mainly customer doesnt knew aboutthat there is any garment section on the first floor.
2. Secondly, the walls on the garment section were not utilized for thewall hangings or for the display on the wall. Which make them loosealmost an area of 60 sqft.
3. The display of the gondolas and the browser was also a topic todiscussed upon, which does not follow any of the format.
4. Cartons of the products were left on the floor area only, which wasleaving a bad and negative impact on the mindset of the customer.
Strength1. Communication level of the Customer Care Assistance is very high, having a
complete knowledge not about their department, as well as having a knowledge of allthe fabrics and other departments too.
2. A complete range of garments available for Mens, Womens, Kids and Infants.
3. Retail area for the garment section is quiet very big as compared with other departments.
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4. Coordination among the floor workers was also a strength, as they have a very highlevel of coordination among themselves.
5. Not only having a complete range of the garments, but also focused on the quality of the fabric, which was also very good.
Action
Now was the time to take an appropriate action to remove the weakness and increasethe strength. This was not one man army, this process took a group of more than 5members including 2 summer trainiees and a marketing person of spencer, departmentmanager, CCAs. To work together for taking out something positive.
Steps that accelerated us towards the success,
1. Communicating to the customers about the garment section through paging, andnot only communicating them, but also make them to walk-in to the garmentsection through activites ( like T-20 hitting stump with a ball, Chess, Jenga,Dedicate a song) to attract not only an individual but inculcating a whole familyinto the process. Which not only helped in the increment of the footfall but also inthe rise of the sales graph by more than 105%.
2. Using the left wall in the women section by hanging up the latest and theexclusive arrival in the store.
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3. Rearranging the gondolas and the browser and the bins, so as to make thecustomer walk freely and make him/her excited during the shopping.
4. Removing the unwanted cartons and the articles which were of no use and justleaving a bad impact. Which not only cleaned up the messed space but also
provided us more space to use.
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Annexure
Questionnaire
FEEDBACK FORM
Name:-
Address:-
Contact No:-
1. What is your age group?