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Introduction to the Retail Industry
India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP.
It is the largest employment provider after agriculture industry.
Source- www.business.mapsofindia.com/india-retail-industry/
Introduction Of the Company
Date of Establishment 1996Revenue Rs. 10,913 crores (FY 2008) – RPG GroupMarket Cap Rs. 8,314 crores (2007) – RPG GroupBranches Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijayawada, Aurangabad Durgapur and Kolkata.Management Team R.P Goenka – Chairman Emeritus Harsh Goenka – Chairman Sanjiv Goenka – Vice Chairman
Source- www.rpggroup.com/sretail.html
Company Profile Spencer's retail is the largest* supermarket chain in India. It operates through over 350 stores.Spencer's offers its customers a customized and convenient shopping experience in 5 different formats.1. Spencer's Express2. Spencer's Fresh 3. Spencer's Daily 4.Spencer's Super 5. Spencer's Hyper
OverviewSpencer’s Retail deals with food, apparel, fashion, electronics, lifestyle products, music and books.It also offers services such as gift vouchers and easy loans in association with CitiFinancial Consumer Finance India Ltd.
Different Formats of Spencer’s
Format Stocks Minimum Trading Area (sq. ft.)
Spencer’s Express
dairy, fruit and vegetables, bread and bread products, fruit juice, fresh batter, fresh coffee/tea, masalas, pickles, Ghee, Fish and meat.
1000
Spencer’s Fresh vegetables, fruits, milk, eggs, breads 2000
Spencer’s daily regular groceries 4000-7000
Spencer’s Super home care products; personal care products, Bakery, Chilled and frozen food; Baby care products
8000-15000
Spencer’s Hyper Miscellaneous More than 25000
PROJECT TITLE
“Brand awareness of Spencer’s & its comparative analysis with Big Bazaar & other retail organizations in Lucknow city”
Vision
To “build Spencer’s as the most professionally managed retail business in the country through:
Excellence in all operating process;
Nurturing and facilitating a learning and growth culture;
Building a unique retail experience for the customers”.
Mission
Strives to exceed the aspirations of its customers for a healthy and fulfilling lifestyle by providing:
The most innovative customer goods and delectable taste experience.
The ultimate shopping experience.
Unbeatable value.
The “next” place away from home or office to relax and indulge themselves.
OBJECTIVES OF THE STUDY
To study about the Brand awareness of Spencer’s.
To analyze the organized retailer’s profitability drivers on the basis of Garments, Gifts, Cards & Music Department.
The Big Bazaar is the discount store which offers a wide range of products under one roof. The products include apparels and non-apparels such as utensils, sports goods and footwear. The Food Bazaar provides a range of food and grocery products ranging from fresh fruits and vegetables, staples, FMCG products and ready-to-cook products.
Source- www.pantaloon.com/fashion-bigbazaar.asp
The group’s prime focus is on retailing. The Vishal stores offer affordable family fashion at prices to suit every pocket.
Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price ranges. The showrooms have over 70,000 products range which fulfills all your household needs, and can be catered to under one roof.
Source- www.vishalmegamart.net/
RESEARCH METHODOLOGY
In collecting requisite data and information regarding the topic selected, I went to the outlets of Spencer’s, Big Bazaar & Vishal Mega Mart of Lucknow city and collected the data.
Survey design:
Data were collected at a single point of time. Sample of population was selected on the basis of convenience.
Sample Size and Design:
A sample of 100 peoples & 3 stores was taken on the basis of convenience. The actual customers were contacted on the basis of random sampling.
CONTD…..
Research Period: Research work is only carried for 3 weeks. Research Instrument:This work is carried out through face to face survey &self-administered questionnaires. The questions included were open ended, dichotomous and offered multiple choices.
Data Collection:The data, which is collected for the purpose of study, is divided into 2 bases:
Primary Source: The data has been collected directly from respondent & with the help of structured questionnaires.
CONTD…..
Secondary Source: The secondary data was collected from Company’s website and price list of the companies.
Data Analysis:The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that I have used is pie graphs, Bar graphs, with MS Excel.
LIMITATIONS OF THE STUDY
The main limitations are as follows:
Due to limitation of time only 100 people & 3 stores were selected for the study. So the sample of people & stores was not enough to generalize the findings of the study. The main source of data for the study was primary data with the help of self-administered questionnaires. Hence, the chances of unbiased information are less. Retailers were hesitant to disclose the true facts.
SURVEY ON SPENCER’S RETAIL
1. Have you heard of Spencer’s?
YesNo
Yes 93
No 7
2. Have you visited Lucknow city Spencer’s earlier ?
Yes 90
No 10
Yes No
3. Visited Lucknow Spencer’s once, twice or more ?
Once 12
Twice 19
More than Twice 69
Once Twice More than Twice
4. Spencer’s products range available to Customers ?
Spencer’s 3%
Big Bazaar 5%
Vishal Mega Mart 15%
Others 77%
Spencer’s Big Bazaar Vishal Mega Mart Others
5. Spencer’s in F & V?
Yes 22
No 78
Yes No
FINDINGS
1. Spencer’s have good brand awareness among the consumers. 2. Big Bazaar has better product range than Spencer’s. 3. Big Bazaar have greater acceptance among the consumers in comparison to Spencer’s. 4. FMCG products have major acceptance of all offerings of Spencer’s among consumers. 5. The consumers are not much satisfied of the offers introduced by Spencer’s. 6. Big Bazaar has better promotional schemes than Spencer’s.
DATA ANALYSIS AND INTERPRETATIONANALYSIS OF THE STUDY ON SPENCER RETAIL
Types of Customer: Spencer is a major player in the Indian organized retail industry. They have huge music, cards or cookery departments.
HIGH GRADE INCOME LEVEL
75%
MEDIUM GRADE INCOME LEVEL
20%
AVERAGE GRADE INCOME LEVEL
5%
0%40%80%
DATA ANALYSIS AND INTERPRETATIONFlow of customer in different departments:
DEPARTMENT NO. OF CUSTOMERS
GARMENTS DEPARTMENT 350
GIFTS DEPARTMENT 700
MUSIC DEPARTMENT 900
GARMENTS DEPARTMENT
GIFTS DEPARTMENT
MUSIC DEPARTMENT
NO. OF CUSTOMERS
NO. OF CUSTOMERS
Revenue generated by the different department:
REVENUE PER DEPARTMENT
2007-2008 (Rs)
GARMENTS DEPARTMENT 20000
GIFTS DEPARTMENT 400000
MUSIC DEPARTMENT 650000
TOTAL 1070000
GARMEN
TS D
EPAR
TMEN
T
GIFTS
DEP
ARTM
ENT
MUSI
C DEP
ARTM
ENT
TOTA
L 0
400000
800000
1200000
Garment Department:Overview:In Garment department the products are mainly the major international readymade brands and price ranges lies between Rs.800 to Rs.2000 averagely which is meant for a few Indians customers.
Findings:The products exclusively for a certain income level customers. Maximum products are unreachable for the medium and average income level customers. Suggestions:They are focusing a very few Indian customers and the most of the Indian consumers can’t afford this price range. So if they want to increase their market share in the Indian retail Industry they should introduce such product range also which can be affordable for the medium level income groups and the main customer in the retail industry lies within it.
Gifts DepartmentOverview:Gifts department is consisting of various product categories from home furnishing products to personal grooming products.
Findings:In the Spencer we have found a wider range of glass made and metal products which are exclusive and also the quality isn’t up to the price levels. Whatever, the stock is sufficient to satisfy its customers but the price range is found very high as a gift product in this department. Suggestions:Again the Indian retail industry is targeting the medium level income group people as its increasing day by day but the products in the Spencer store is meant only for the high class consumers which is very low in population in India. Also an important point is noted that though the volume is sufficient but the variety in product categories as a gift isn’t sufficient.
Music DepartmentOverview:Music section consist of Music CD;s, Game CD & DVD’s and also Movie DVD’s.
Findings:Spencer has introduced very low range CD & DVD's like “Moser bear” music and movie cd-dvd’s and price range lies in between Rs 30 to 100. Basically they are gaining a competitive business at the age of piracy products in this industry. Also they have a very good collection in games CD-DVD categories at a low price range of Rs 100 to 200 whereas if anyone go to the open market the average price range is Rs 300 to 400 for the copyright product.
Suggestions:Spencer is earning more revenue by its music section. In the music it’s found that the collection of CD’s and educational CD’s low than the music games CD’s. They are emphasizing on the low price mp3 and game CD’s where as there is also a demand for educational and movies cd-dvd’s.
ANALYSIS OF STUDY ON BIG BAZAARPercentage of customers flows department wise
TYPE OF CUSTOMER GARMENT SECTION
GIFT SECTION
MUSIC SECTION
CARDS SECTION
HIGH GRADE INCOME LEVEL
10% 15% 50% 7%
MEDIUM GRADE INCOME
50% 55% 40% 53%
HIGH GRADE INCOME LEVEL
40% 30% 10% 40%
Garment section
Gifts Section
Music section
Cards section
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
High grade income levelMedium grade income levelHigh grade income level
Flow of customers in different departments:
DEPARTMENTS NO. OF CUSTOMERS
GARMENTS DEPARTMENT
1600
GIFTS DEPARTMENT 600
CARDS DEPARTMENT 250
MUSIC DEPARTMENT 800
Department
Garments Department
Gifts Department
Cards Department
Music Department
020
040
060
080
010
0012
0014
0016
00
Chart Title
Series1
Revenue generated by the different departments:
REVENUE PER DEPARTMENT
2004-2005 2007-2008
GARMENTS 90000 300000
GIFTS 42000 180000
CARDS 2000 1800
MUSIC 19000 40000
TOTAL 153000 521800
Garm
ent d
epar
tmen
t
Gifts de
partm
ent
Cards
dep
artm
ent
Music
depa
rtmen
t
Tota
l0
100000
200000
300000
400000
500000
600000
2004-20052008-2009
FACTS AND FINDINGS
From the above analysis it’s found that the average customers in the all departments are the all income level people in Big Bazaar. Meanwhile their main customer base is upper, middle and average level income customers.
ANALYSIS OF STYDY ON VISHAL MEGA MART
Types of customer:
TYPE OF CUSTOMER GARMENTS
GIFTS MUSIC CARDS
HIGH GRADE INCOME 10% 40% 60% 0%
MEDIUM GRADE INCOME
60% 50% 30% 50%
AVERAGE GRADE INCOME
30% 10% 10% 50%
Germ
ent s
ectio
n
Gifts se
ctio
n
Music
sect
ion
Cards
sec
tion
0
10
20
30
40
50
60
70
80
90
100
Average grade income level
Medium grade income level
High grade income level
Flow of customers in different departments:
DEPARTMENTS NO. OF CUSTOMER
GARMENTS DEPARTMENT 900
GIFTS DEPARTMENT 250
CARDS DEPARTMENT 100
MUSIC DEPARTMENT 300
Garments Department
Gifts Department
Cards Department
Music Department
020
040
060
080
010
00
Inter- Department customer flow Number of customer
Inter- Department cus-tomer flow Number of customer
Revenue generated by different departments:
DEPARTMENT 2004-2005 2007-2008
GARMENTS 50000 180000
GIFTS 5000 10000
CARDS 2000 1800
MUSIC 1800 5000
TOTAL 58800 196800
Gar-ments
Gifts Cards Music Total0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
2004-2005
FACTS AND FINDINGS
From the above analysis its found that the average customers in the all departments are the middle grade income level customers as Vishal is mainly focusing in this segment of customers.
COMPARITIVE ANALYSIS OF THE STORESOn the basis of customer flows:We have considered the average of the high customer flow days.
Store name No. of customer
Vishal mega Mart 1600
Spencer Retail 1200
Big Bazaar 2300
Vish
al m
ega
Mar
t
Spen
cer R
etai
l
Big
Baza
ar
010002000
Vishal Mega Mart: From the study its revealed that the average customer flow is medium grade income level customers and average grade income level customers.
Spencer Retail: The customer flows in this store is basically refers to the high and upper medium income level customers.
Big Bazaar: They are focusing on the all income level customers but it depends on the departments wise also.
SUGGESTIONS AND RECOMMENDATIONS
In order to improve its business, Spencer’s should introduce more competitive promotional schemes such as those in Big Bazaar. The product range of Spencer’s should be improved in order to match that existing in Big Bazaar.
For promotional offers, company should go for free gifts rather than going for other ways.
THANK YOU
