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PART-I
1
COMPANY PROFILE
Spencer’s Industries Limited
History
Management Board
About RPG
Spencer’s Retail Format
Spencer’s Retail Store In Lko
Growth & Future of Retail
2
SPENCER’S RETAIL LTDSPENCER’S RETAIL LTD..
3
Spencer's Retail Limited
Type Subsidiary
Industry Retail
Founded 1920
Headquarters Kolkotta, West Bengal,
India
Number of locations 220 Across 35 Cities[1]
Employees 60,000+
Parent RPG Group
Website spencersretail.com
COMPANY PROFILE
Overview of RPG Group
RPG Enterprises, established in 1979, is one of India’s fastest growing business groups
with a turnover touching USD $3 billion. The group has more than twenty companies managing
diverse business interests in the areas of Power, Transmission, Technology, Retail and
Entertainment.
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.
Management
The RPG Management Board is the backbone of the conglomerate. Its members are highly
qualified professionals, well experienced in their respective fields.
Values
RPG’s business ethics promote higher levels of excellence. The group’s 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.
4
Quality
For RPG quality determines success. Continuous process improvements are carried out to ensure
complete satisfaction of customer and market requirements.
History
The 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. In 1950 Goenka’s 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 business is 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.
5
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, now RPG Life Sciences
(1983); Dunlop (1984); HMV (1988); and finally CESC, Harrisons Malayalam, Spencer & Co.
and ICIM in 1989. RP Goenka’s sons Harsh (Chairman) and Sanjeev (Vice-Chairman) spearhead
the group’s management from 1990.
6
SOME IMPORTANT FACTS ABOUT SPENCER’S
Date of Establishment 1996
Revenue Rs. 10,913 crores (FY 2007) – RPG Group
Market Cap Rs. 8,314 crores (2007) – RPG Group
Address RPG Enterprises, CEAT Mahal, 463, Dr.
Annie Besant Road, Worli, Mumbai 400
030, Maharashtra, India
Branches Mumbai, Gurgaon, Ghaziabad, Lucknow,
Calicut, Hyderabad, Vizag, Vijayawada,
Aurangabad Durgapur and Kolkata
Management Team R.P Goenka – Chairman Emeritus
Harsh Goenka – Chairman
Sanjiv Goenka – Vice Chairman
S Bannerjee – President/Chief Executive
Power Sector
P.K Chowdhary – President/Chief
Executive Tyre Sector
Subroto Chattopadhayay – President/Chief
Executive Entertainment Sector
P.K Mohapatra – President/CEO,
Technology Sector
7
Arvind Agrawal – President/Chief
Executive Corporate Development and HR
Ramesh Chandak - President/Chief
Executive Transmission Sector
P. Sampath Group CFO
Overview Spencer’s Retail is a part of the RPG
Companies that deals with food, apparel,
fashion, electronics, lifestyle products,
music and books. It operates through over
350 stores. It also offers services such as
gift vouchers and easy loans in association
with CitiFinancial Consumer
Finance India Ltd. It consists of Spencer’s
Hypermarkets, Spencer’s Super, Spencer’s
Daily and Spencer’s Express.
COMPANY HISTORY
YEAR & EVENTS
8
1987 - The company was established in the year. The main objects of the company are
marketing and distribution manufacture of Pharmaceuticals-Aerated waters and other food
products- Marketing of consumer durables- Trawlers and marine products processing- Travel
and shipping- Imports and Exports - Hotels and Catering- Tea estater-Chain departmental stores-
computer and computer services- Real Estates.
- M/s Kellner Pharmaceuticals Ltd., Vulcan Electricals Ltd., Spencer International Hotels Ltd.,
Spencer, Furnitures & Furnishing, Spencer Estates Ltd., Spencer Consumer Products and
Services Ltd., Spencer Pharmaceticals Ltd., G.F.Kellner & Co. Ltd., Fiesta Restaurant Ltd.,
Kartik Pharmaceuticals Ltd., and Spencer Information Services are the subsidiaries.
1995 - Spencer Industrial Fund Ltd has become a Subsidiary of Spencer International Hotels Ltd
under provision of Section 4(1) (a) of the Companies Act, 1956 and accordingly a Subsidiary of
this Company also from 24th January.
1996 - The Company has entered into a Technical Assistance cum Joint venture options
Agreement with M/s. Dairy Farm International Holdings Ltd., a major International retailing
force operating in several countries.
1997 - During the year the company has entered into a Joint Venture agreement with DFI
Mauritius Limited to enter yet another Retail Format. A chain of retail drugstores, dealing in
Medicines, Cosmetics, Toiletries and allied Health and Beauty products, is proposed to be set up
on a nation-wide basis.
9
- A new company has been named as RPG Guardian Private Limited and is on a mission to lop a
highly regarded retail business in India by offering excellent service and value to customers. The
company has been set up on a 50 : 50 equity partnership basis. The total paid up capital of the
company will be Rs. 450 lakhs consisting of 45,00,000 of equity shares of Rs. 10/- each.
1998 - Mr P.K. Mohapatra appointed as Managing Director w.e.f. 1st April.
- The Company's expansion4 into Food Retailing through the chain of Food World Supermarket
started during 1996 made significant progress during the year. - Foodworld has became a
household name in three cities enjoying high patronage from its customers and suppliers.
2000 - Spencer & Company, an RPG group outfit, has signed a joint venture agreement with
Dairy Farm International Mauritius (DFI) to launch a chain of large distribution infrastrucutre,
essentially meant to serve the small retailer.
- The Company will form a joint venture company, as a subsidiary of Spencer’s.
SPENCER’S RETAIL
10
Based in Kolkata, India, Spencer's Retail is one of the country's fastest growing retail
companies with approximately 2 million square feet of retail space and more than 400 stores in
65 cities. Products include food, apparel, electronics, lifestyle products, music, and books.
Spencer's Retail is a division of RPG Enterprise, a business group with more than 20 companies
in industries such as power, technology, retail, and entertainment. Established in 1979, RPG
Enterprises has annual revenue of $3.25 billion.
Customer Challenges
Enable rapid business expansion
Improve performance
Add room for growth
Ensure IT systems' availability
Solution:
Spencer's Retail based its production environment on Sun SPARC Enterprise servers that run
SAP ERP software. The infrastructure includes Sun storage solutions and a remote disaster
recovery site with Sun SPARC Enterprise and Sun Fire servers. When implementation is
complete, more than 350 stores will connect to the new system.
Business Results
11
Improved performance
Increased scalability
Ensured IT systems' availability
Reduced space and power requirements
Products and Services:-
Sun SPARC Enterprise M5000 Server
Related Customer Success Stories:-
Out spark Increases System Uptime and
12
Sun SPARC Enterprise M4000 Server
Sun SPARC Enterprise T5120 Server
Sun Fire V490 Server
Sun Storage Tek 6540 Array
Sun Storage Tek 6140 Array
Sun Storage Tek SL500 Modular Library
System
Solaris 10 Operating System
Solaris Cluster 3.2
Sun Storage Tek Data Replicator Software
Performance, Cuts Power Consumption and
Costs with Sun Server Solution.
Sun Unified Storage Helps Elanders Reduce
Costs and Increase Performance.
Ivan Smith Furniture Deploys a Java-Based
Reporting System from MCM Software.
View all Customer Success Stories.
Story Details
13
Spencer's Retail in India is in an enviable but challenging position instead of trying to
generate new business, it is struggling to keep up with explosive growth. Approximately two
years ago, the company had approximately 60 stores and 4,000 employees; today, it has more
than 350 stores and 15,000 employees.
By 2004 the retail industry was growing rapidly in India, and Spencer's Retail decided to
pursue an aggressive expansion strategy. The company had the customers, the products, and the
employees to make it happen. It just needed an IT infrastructure that could support rapid growth.
Current servers were at capacity, and the company needed to upgrade before adding new stores.
Amit Mukerjee, Group CIO of the RPG Group, describes the challenge as part of the learning
curve for retail development in India. “Retailing is a new business in this country. As the
business matures, the process matures, and IT systems must evolve accordingly.”
" One benefit for us with Sun Microsystems is its understanding of retail and its ability to
architect a solution for this type of business. The second benefit is that Sun has the technology
to support a transaction-intensive environment, and it can provide us a solution that can
handle large amounts of data so that business runs smoothly. "
— Amit Mukherjee, Group CIO, RPG Group
The company also needed an enterprise resource planning (ERP) solution to handle
critical processes such as supply-chain management. It decided to implement mySAP ERP, now
called SAP ERP, and realized the solution needed to run on high-performance servers. Spencer's
Retail evaluated several possibilities, including servers from HP, IBM, and Sun Microsystems. It
decided to build its IT infrastructure on Sun systems for several reasons. Sun SPARC Enterprise
Servers had the performance and scalability needed to sustain its business, and they delivered
14
higher performance at less cost. Sun's knowledge of the retail space in India, as well as its long
history with RGP Enterprises, were also deciding factors.
Spencer's Retail chose Sun SPARC Enterprise M5000 servers with four dual-core 2.1
GHz SPARC 64 VI processors as the center of its production environment. Designed for
consolidation and virtualization, Sun SPARC Enterprise Servers bring mainframe-class
utilization and efficiency levels to the open systems market. Supporting hardware partitions and
Solaris Containers, these systems deliver deliver 24/7 mission-critical services while reducing
power, cooling, and space requirements.
After an eight-month testing period beginning in early 2005, the company installed the
SAP ERP database software on two Sun SPARC Enterprise M5000 servers in a high-availability
cluster with Sun Cluster 3.2 software. The disaster recovery solution ensures business continuity
with advanced failover protection.The cluster is connected to a Sun StorageTek 6540 array
through a Dell Brocade SW200E Switch. ASun StorageTek SL500 Modular Library System is
used for data backup as well. The solution also includes Sun SPARC Enterprise T5120, Sun
SPARC Enterprise M4000, and Sun Fire V490 servers used to support both production and
quality assurance functions.
Spencer's Retail has rolled out its SAP solution to approximately 160 stores and expects
to complete deployment to more than 350 stores by October 2008. The company purchased the
SunSpectrum Enterprise Service Plan to help support the ambitious project. Indranil Guha, head
of the ERP data center at Spencer & Co. says, “We are always in touch with Sun; we work with
it as a partner. Good customer service is very important to us, because we run our entire business
on Sun servers.”
15
The company is meeting its initial goals for a high-performance solution with room for
growth. It has already observed that data transactions run as much as five times faster on the new
systems. And it estimates that its current solution can easily handle up to 1,000 stores. The
company also appreciates that the more energy-efficient and compact design will reduce space
and power requirements.
Spencer's Retail plans to enhance its IT environment further with a new disaster recovery
site, which will include Sun Fire V890 servers and Sun SPARC Enterprise T5120 servers
running Solaris Cluster software connected to a StorageTek 6140 array. It will also use Sun
StorageTek Data Replicator Software software to mirror data between the production
environment and the remote location. Together with its new server infrastructure, the disaster
recover installation will provide the high-performance, high-availability solution the company
envisioned. With its business processes running on Sun infrastructure, Spencer's Retail can meet
business growth with confidence.
16
MANAGEMENT BOARD:-
The Management Board comprises of highly qualified and experienced professionals
from different business areas.
17
RPG ORGANIZATIONAL EXCELLENCE:-
RPG Organizational Excellence is an effort toward achieving excellence by enhancing
performances through clarity of purpose, meticulous planning, tenacious execution and passion
to excel.
18
RPG ORGANIZATIONAL APPROACH:-
RPG Organizational Approach translates the group’s organizational excellence strategy through an
effective 3-point program:
Six Sigma
TPM
Continuous Improvement
19
ABOUT RPG :-
RPG Enterprises is not only one of the biggest, but also one of the most respected
names in the industry. A US$ 3.4 billion business conglomerate, RPG is one of the powerhouses
that drive Indian Industry. With more than 20 companies, it spans 7 business sectors, Retail,
Technology, Entertainment, Power, Transmission, Tyres and Specialties- all under the RPG
banner. Even with such a diverse portfolio, the fact that RPG Enterprises has had nothing but
only unrivalled success in all these sectors, speak very highly of the efficiency and vision with
which the company is run. Over the years RPG Enterprises has built a huge reservoir of trust and
goodwill among the people of India. People at Spencer’s are truly proud to be a part of the
RPG
THEIR HERITAGE:-
Since 1863, Spencer’s has been a part of the Indian retail landscape. At one time, the
Spencer’s Empire stretched from Peshawar to Cochin, from Karachi to Chittagong, spanning
the length and width of undivided India. Originally owned by a British gentleman – yes, there
was a Mr. Spencer (John William Spencer, to be precise) – it acquired Indian ownership in the
1960s, and became part of the RPG Group in 1989.
In 1995, RPG Enterprises, the flagship company of the RPG Group, launched Foodworld
as a joint venture with Hong-Kong based Dairy Farm International. The joint venture, which
operated supermarkets under thename “Foodworld” and hypermarkets under the name “Giant”,
was terminated in 2006. RPG retained 48 of the 93 stores it owned. These were re-furbished and
their launch under the brand name, Spencer’s, kicked off a new phase in both the history of the
Spencer’s brand, and the retailin India.
20
Since inception Spencer’s has been a consumer-centric brand, constantly innovating, pioneering
formats, evolving over time but always keeping consumer needs and satisfaction center-stage.
Back in 1920, we were the first grocery chain in India. In 1980, we became the first supermarket
chain, and in 2001, we introduced India to the joys of hypermarket shopping.
What has remained unchanged almost 150 years is the trust the Spencer’s brand evokes.
To the consumer, it carries the promise of innovation, quality, and service; the confidence that
they will always be able to find a Spencer’s at a convenient location; that it will have a pleasant
ambience; and that it will offer a wide range of products at affordable prices.
21
RPG VALUES:-
22
Customer SovereigntyPeople OrientationInnovation and EntrepreneurshipTransparency and IntegrityAnticipation, Speed and FlexibilityPassion for Superior Performance
VISION
We shall be a leading Indian group with a focus on market capitalization through
• Leadership in profitability and revenue growth in our chosen business
• Being a customer centric organization
• Being the most exciting work place
23
Harsh Goenka, Chairman, RPG Enterprises
DIVERCIFICATION IN DIFFERENT SECTOR
24
RETAIL MACRO ENVIRONMENT:-
25
RPG – RETAIL VISION
To be a customer focused, differentiated, Foods intensive Retail Company with clusters
of destination and convenience stores (Hyper ,Supers & Dailies)
To establish Spencer’s Express & mass proliferate
To set up Retail chains in focused Verticals like Music, Books, Mobility Solutions,
Apparel, Footwear, Luxury Brands and Life Style Brands where domain knowledge
exists or is acquired through partnerships
To achieve Pan India presence with 2000 Stores through current verticals by 2009 &
5000 stores by 2011
26
THE JOURNEY :-
RPG RETAIL 1995-2005
Grocery – Super markets.
GIANT HYPERMARKETS Hypermarket with extended range
27
HISTORY
• 1995 – JV between RPG and DFI to set up retail Stores in grocery.
• 1996-2003- All is well – rapid expansion 95 stores across south & Pune.
• 2001- FDI withdrawn in retail.
• 2002- MOU expires with DFI .cracks in the JV. No store opened till 2005.
• JV Broke up 2005 Sept.
28
RPG RETAIL – 2005 ONWARDS :-
September 2005 -Spencer’s Retail was born- A revitalized organization with new hopes
and challenges.
Group re-dedicates itself to the industry
New store opening plans made and first store opened in October
Addition of new Formats : Books n Beyond, Cellucom in sector portfolio in 2007
29
SPENCER’S RETAIL: CURRENT VIEW :-
Aggressive plans for Spencer’s
Exited March ’08 with 400 stores including 16 Hypers with T/O Rs 800 Cr.
Propose to add >500 stores including 26 Hypers by March ’09 with T/O > 2000
Cr.
Exit ‘09 with >1000 Spencer’s stores
Investment plan - Rs 1100 Cr for Spencer’s expansion.
May ’08: Pan India presence in 65 cities with 400 stores - 16 Hypers, 12 Supers,
197 Dailies, 135 express.
30
FORMATS OF SPENCER’S OUTLETS
Spencer’s has retail footage over 2 million square feet and over 400 Spencer’s stores in 65 cities.
The Company operates through the following formats:
1. Spencer’s Hypermarkets: A fast growing retail network of hypermarkets with large
format stores in Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag,
Vijaywada, Aurangabad, Durgapur and Kolkata.
2. Spencer’s super: One of the largest supermarket chains in the food and grocery
segment in India.
3. Spencer’s Daily: Small format stores conveniently located with a range of products to
meet daily household needs.
4. Spencer’s express: Food and grocery store next door.
31
Spencer’s Daily
Fresh Fruit Stall Market stall Manton Market
The Spencer’s Daily store is a friendly neighborhood store, which caters to the entire
daily shopping needs- from regular groceries to fresh food and also weekly top-up
shopping.
It is about 4000-7000 sq ft in size and with a bright and friendly atmosphere; Spencer’s
Daily saves the hassle of bargaining with the local kirana shop owners (because it offers
the lowest possible prices).
32
SPENCER’S EXPRESS
Spencer’s Express is a store next door for the fresh needs at arm’s length.
These stores are around 1000 sq ft in size. They are open from 7 am to 9 pm and also
provides with home delivery.
The Express stores stock dairy, fruit and vegetables, bread and bread products, cut
vegetables/ready to cook, fruit juice, fresh batter, fresh coffee/tea, fresh masalas, fresh
pickles, fresh Ghee, fresh Fish and meat.
33
SPENCER’S FRESH
Spencer’s fresh stores provide with an enjoyable and convenient shopping environment in
very own neighborhood. These 2000 sq ft. air conditioned stores are well stocked with
Fresh food of very best quality, such as fresh farm produce, vegetables, fruit, milk, eggs,
breads and much more. With an impressive range and a clean, bright and hygienic
ambience, Spencer’s Fresh is far better the regular sabzi mandis or local vegetables markets
and at Spencer’s.
34
Fresh consumers not only do get fresh, clean and tasty farm produce but also the lowest
possible prices in the locality, yes even lower than sabziwala!
SPENCER’S SUPER
The Spencer’s Super is the place to go for the monthly shopping.
35
About 8000-15000 sq ft. in size, the Spencer’s Super not only caters to the daily
needs but also stocks home care products; personal care products, Bakery, Chilled
and frozen food; Baby care besides groceries & staples, Fresh fruits and
vegetables.
SPENCER’S HYPER
36
The Spencer’s Hypermarkets are huge destination stores, more than 25,000 sq
ft. in trading area. Shoppers come here looking for fantastic deals across all
categories.
Hypermarkets ensure a comfortable, clean, bright and functional ambience to
shop along with the convenience of finding everything under one roof at the
best value for money.
37
BACKGROUNDER
India’s first modern format hypermarket was opened by Spencer’s in Hyderabad in January
2001. Located over an area of 1,20,000 sq.ft., the store has a trading area of 36,000 sq.ft. The
Spencer’s hypermarkets, located across the country, are open throughout the day, seven days a
week, 365 days a year.
Spencer’s already employ over 9000 employees across 60 cities. Roughly 1/3rd of the team are
women. Spencer’s began its operations in India way back in 1863 and since then has remained a
part of the lives of Indian consumers. 145 years later, the Spencer’s name still evokes special
memory of authentic quality at affordable prices.
Currently, RPG’s Retail activity comprises Spencer’s Retail, RPG Cellucom, Books & Beyond
and MusicWorld. RPG’s total retail outlets are more than …… The total area of all Spencer’s
38
DIVISIONOF
HYPER
HWPFLHome, Work,
Play, Furniture,
Linen.
GARMENTSSECTION
Deals with Apparels.
ENE
Electrical N Electronic.
F & V
Fruits & Vegetables.
STAPLES
Deals with Grocery items.
FMCG
Food & Non-Food
stores across the country is over ….. sq.ft. Spencer’s currently has a national consumer base of
over 48 million people, who walk into the store every year.
SNAPSHOT
Different Formats of Spencer’s
Format Stocks Minimum Trading
Area (sq. ft.)
Spencer’s Express dairy, fruit and vegetables, bread and bread
products, fruit juice, fresh batter, fresh
coffee/tea, masalas, pickles, Ghee, Fish and
meat.
1000
Spencer’s Fresh vegetables, fruit, milk, eggs, breads 2000
Spencer’s daily regular groceries 4000-7000
39
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
40
East UP
Lucknow:
Fun mall (hyper)AshianaAliganjIndranagarJankipuramRajendra nagarRajajipuramVikas nagarViram khandVivek khand
Ala
VaranasiBhelupurSigraMehmurganjBhojuveer
Gorakhpur(Hyper) City Mall
41
Glass branding (hyper-Fun)
Elements available for branding….
H=8ftL=13ft
42
Travellator branding
5 Glass sides of the travellator (Hyper Fun)
Contd…
Drop downs 3ft-2ft (hyper) . Danglers (all)
43
44
Contd…..
L = 6ft B = 2ft
Cash Till branding 2 (hyper)
Cash till branding-1 (hyper)
L=3ftW=1ft10”
45
Contd…
Standee (all) Leaflet branding (all)Up to 18sqft
Contd…
8’’
11’’
1FT 6’’
1FT 7’’
2FT 3’’
Trolley branding
L1 = 14”, L2 = 13”, H = 10”
Basket Branding
46
Contd…
Carry bag branding (all) Bill roll – branding (all)
Contd…
Circular=3ft 6”Height=11ft 4”
Pillar branding inside mall
Pillar Branding (3 Pillars) H = 7ft 10”, W = 2ft 8”
47
Contd…
Circular=3ft 6”Height=11ft 4”
Pillar branding inside mall
Pillar Branding (3 Pillars) H = 7ft 10”, W = 2ft 8”
48
Contd…
Floor sticker (all) Cash till branding (small stores)
L=2.5ft W=1.5ft
Contd…
Cash till branding Indranagar & Ashiana store
49
PART-II
50
OBJECTIVE OF THE PROJECT
The project would study the scanning efficiency of the products of the HWP section of
the Hyper.
To find out the main reasons behind the decreased scanning efficiency of the products of
HWP section.
To check how many products require alteration i.e., retagging, New Mrp etc.
It will also let us know the comparison between the scanning efficiency of HWP and
other sections.
What is the amount that is lost due to inefficiency of the section?
To suggest some action that can help in increasing the efficiency of the section.
What kind of problems are faced by the CSA’s at the till counter related to the products
of HWP section.
51
RESEARCH METHODOLOGY:-
RESEARCH
“Research is a systematized effort to gain new knowledge.”
-Redman & Mory
“Research is a careful investigation or inquiry especially through search for new facts in any
branch of knowledge.”
-Advanced Learner’s Dictionary of Current English
“Research is the manipulation of things, concepts or symbols for the purpose of generalizing
to extend, correct or verify knowledge, whether that knowledge aids in construction of theory
or in the practice of an art.”
52
OBJECTIVES OF RESEARCH
The purpose of research is to discover answers to questions through the application of scientific
procedures. The main aim of research is to find out the truth which is hidden and which has not
been discovered as yet. In this project descriptive type of research has been done.
DESCRIPTIVE RESEARCH
Descriptive research includes surveys and fact-finding enquiries of different kinds. The major
purpose of descriptive research is description of the state of affairs as it exists at present.
In social science and business research we quite often use the term Ex post facto research for
descriptive research studies. The main characteristic of this method is that the researcher has no
control over the variables; he can only report what has happened or what is happening.
As in this report descriptive research has been used methodology was based on comparative
analysis which was done for six sectors for 92 companies in east UP for alliances and activation
area. Sectors were Education; Telecom, Healthcare, Insurance and banking, Automobile, and
others. From which 41 was positive and 51 were negative responses when presentation was give
to these companies from the positive responses few converted into deals as telecom companies
were ardent interested in branding comp aired to other sectors. The revenue generation from this
53
sector was more than other sectors. The research study based on companies responses as telecom
companies have big budget comp aired to other sectors because of high competition in telecom
sector as they want to connect to there customer fast. Few companies are interested but they
worried about response they are not sure they will get benefit or not, convinced them quite
difficult task. Analysis done on every sector separately and comparative analysis for two sectors
has been done. The responses which was viewed for 92 companies can be deliberate by
descriptive study only because whatever the responses was give by companies could be
psychoanalysis only by whatever interaction taken place during the period of presentation till the
last fellow up of the company. Positive and negative responses also analyzed on executive
responses and depend on the communication which taken place between the company executive
and Spencer’s trainee not any type of questioner was prepared. Experiences and understanding
of trainee has been revealed in the project report.
54
PART-III
55
DATA ANALYSIS:-
We directed all our sincere efforts in doing the project with much sincerity and honesty.
We found many a things hap hazarded in Spencer’s as the dedication of the employees towards
their work was not up to the mark.
There were a lot of problems we faced while we were scanning the products of the HWP
section. Some of them are described below as follows:-
There were some torn tags which were difficult to get scanned.
There were some products that didn’t have tag at all.
56
One major problem was also that some products Mrp as ‘zero’.
Some products were also found as INF (Item not found).
We scanned all the items of the HWP section & with our sincere efforts and with the
coordination of the Spencer’s employees, we were able to resolve the problems discussed
foresaid.
We gave following suggestions to enhance the scanning efficiency of the HWP section:-
The tag should be placed at the places where there is minimum friction.
Faulted products should be sent for retagging.
The products with zero mrp problem & INF problems must be coordinated to the
merchandiser.
ERRORS FOUND DURING SCANNING
57
ACTIVACTION
Under activation we draft new activities which attract customer to spent time and money in store.
Its objective is to increase footfall and average bill value through bill buster. The ultimate goal of
any businesses is to increase its sales and income. Ideally we want to attract new customers to
58
our products and encourage repeat purchases. Awareness plays very important role to increase
sell, activation can work as catalyst in increasing the awareness among the customers. Activation
makes easier to hold the customer for long duration as customer walk-in with their families with
kids games such as jinga, cricket chess and exiting gifts which compel the customer to brose in
the store which result in up selling. As malls are becoming the blistering places for companies to
do their promotion and activities every week end some or the other going in malls which benefit
not only the company but also the malls to increases the footfall in malls.As Spencer’s retail do
activation on every week-end which increase the sell of Spencer’s garments section which was
not making much revenue earlier. Education, health care, Banking sectors also doing activation
in retail sector as they can get their target customer easily through less effort they valuable data
base .Sponsoring big events is also part of activation.
59
In the above graph it shows how many times customers viisit the spencers in month every
Times 5.60% of customer visit the store where as not visited customer are quite high27.20
%.This pecentage of customer can decreased through activation part .Such as Through awreness
which spread through leafelet.Ossasionaly type customer can be Increased by giving them some
execting offers .Week end activation can drive once and twice type customers to the store.In 60
days eight activites were organised every week ends activties like jinga; cricket ;Chess; spoon
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race ; quize competation and The glow beauti center activity were also Organised which lead the
customer to spent more time in store and wining the existing Gifts and purchase the first activity
increased the footfall and sell of the garments section At high phase.The activity which
organised by glow given them strong data base and potionsal clientele the gifts were given by
them huge number of customer participted with execement and thirl which increased the
spencer’s hyper footfall. Kids drawing competation were also organised in which huge number
of kids participted gifts were sponcered by the companies.
PHOTO GALLERY OF ACTIVATION
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LIMITATIONS
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Limited access to the data of the section.
Due to excess crowd on weekends we were unable to use the scanner for scanning the
products.
Representing Spencer’s was mammoth responsibility.
There was too much physical stress on us at weekends.
Companies marketing heads were very specific about sharing their information.
SUGGESTIONS
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Various other options available in order to enhance the scanning efficiency are as follows:
+ Festival oriented targeting: Organizing some special events at some strategic locations
such as Holi, Diwali, Christmas New-year.
+ On ground activity: Organizing some kind of games , Source of publicity, Source of free
advertisement.
+ Distributing freebies such as Pens, key chains, etc written Spencer’s over it on special
occasions. It will help in brand recall which in turn will help in creating goodwill.
+ Advertising should be done at the strategic locations in the markets through Banners and
posters. Hardly have we seen any banner of Spencer’s other than in malls or where
Spencer’s is present.
+ Tie ups with Multi-Plexes – Spencer’s should have promotional scheme card distributed
inside multiplexes so that people know about the Spencer’s offers .
+ Organizing Baby competition around housings and kids competitions in schools with
Freebies having Spencer’s logo.
+ Miscellaneous – Kids Pictures: Making a medium side board with a face of small child,
asking parents to bring pictures of their kids & pasting the pictures on the board. This
campaign can be run for a period of 20-25 days. The above suggestions are given keeping
in view customers of all age group. Spencer need to improve its fourth class employees
services behavior which putting bad Impact on its goodwill…Selling of spaces not the
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big deal for Spencer’s if they increase their footfall when Companies watch huge number
of footfall they will choose Spencer’s for their promotion Activities.
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CONCLUSION
As retail sector is booming, We live in a word with too many stores and we are Witnessing a
dramatic thining of the retail herd by the dual forces of a changin Consumer and a sluning global
economy. When times are good retail brand might Get along by emulating others. Coping
everything from their visual look and Feel and real estate strategy .However when times get
tough it’s the great Retail brand that win the ones that innovate, understand the DNA of their
brands and Connect with their customer. As per learning about Alliances and activation in 60
days it is profit maker for a retail Store it helps in increasing the revenue and foot fall building
relationship with other Brands and giving them lead to showcase their elements inside the store.
It also Help the company in increasing the awareness about the store and its products.
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SWOT ANALYSIS:-
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of
planning and helps marketers to focus on key issues. SWOT Stands for strengths, weaknesses,
opportunities, and threats. Strengths & weaknesses are internal factors. opportunities, and threats
are external factors.
Strengths
Spencer’s have good brand awareness among the consumers.
Spencer’s in FMCG sector.
Spencer’s retail specialist marketing expertise.
Weaknesses
The consumers are not much satisfied of the offers introduced by Spencer’s.
Big Bazaar has better product range than Spencer’s.
Big Bazaar has better promotional schemes than Spencer’s.
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Opportunities
To become better in the business of garments.
To be accepted by the consumers in comparison to other retail stores.
To develop better marketing strategy than retail outlets.
Threats
Big Bazaar & Vishal Mega Mart are huge threats to Spencer’s.
Big Bazaar have greater acceptance among the consumers in comparison to Spencer’s.
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ANNEXURE
QUESTIONNAIRE
PERSONAL DETAILS
Name:
Address:
Gender:
Phone Number:
Marital status:
Education:
Profession:
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1. What kind of problems are you facing at the cash till?
a) Mrp Zerob) No Tagc) Dual Mrpd) INF
INTERPRETATION:
In this above mentioned pie-chart it is illustrated that the major scanning errors come
due to ‘No tags ‘ then it is followed by ‘INF’ ( Item not found ) problem, after that the
third major problem was of ‘Zero Mrp problem’ and last but not the least is Dual Mrp
problem in which a product shows dual Mrp which creates a lot of problem at the cash
till.
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2. Which section has the maximum number of scanning problems with their products?a) HWPFLb) FMCGc) ENEd) Garments
INTERPRETATION:In the above mentioned pie-chart, it is illustrated that HWPFL (45%) is the section which
has got the maximum problems regarding scanning which is followed by the Garments
(30%) section.
After that comes FMCG ( 15%) which has a comparatively less amount of defected
products who are returned form the cash till, it brings embarrassment to the Hyper as a
whole and the at last comes the ENE (10%) which has the minimum problem regarding
Scanning.
3. What is the present Scanning efficiency of the HWP section?
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a) 80%b) 85%c) 90%d) 95%
INTERPRETATION:
In the above mentioned pie-chart, it is shown here that what is the percentage of scanning
efficiency of the HWP section according to the CSA’s at the Cash till.
15% of them think that scanning efficiency is 95%.
25% of them think that scanning efficiency is 90%.
40% of them think that scanning efficiency is 85%.
20% of them think that scanning efficiency is 80%.
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4. What is the percentage of products who show ‘INF’ problem?a) 25-30b) 30-35c) 35-40d) 40-45
INTERPRETATION:
In the above shown pie-chart it is depicted that maximum ( 35%) CSA’s think that INF
products are almost between the range of 30-35.
The minimum (15%) CSA’s think that the products showing INF problem are in the
range of 40-45.
5. What is the percentage of products who show ‘NO TAG’ problem?
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a) 25-30b) 30-35c) 35-40d) 40-45
INTERPRETATION:
In the above shown pie-chart it is depicted that maximum (35%) CSA’s think that ‘NO
TAG’ products are almost between the ranges of 30-35.
The minimum (15%) CSA’s think that the products showing ‘NO TAG’ problem are in
the range of 40-45.
6. What is the percentage of products that show ‘DUAL MRP’ problem?
a) 5-10
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b) 10-15c) 15-20d) 20-25
INTERPRETATION:
In the above shown pie-chart it is depicted that maximum (40%) CSA’s think that
‘DUAL MRP’ products are almost between the ranges of 10-15.
The minimum (15%) CSA’s think that the products showing ‘DUAL MRP’ problem are
in the range of15-20 and 20-25.
7. What is the percentage of products that show ‘ZERO MRP’ problem?
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a) 5-10b) 10-15c) 15-20d) 20-25
INTERPRETATION:
In the above shown pie-chart it is depicted that maximum (40%) CSA’s think that ‘ZERO
MRP’ products are almost between the ranges of 20-25.
The minimum (15%) CSA’s think that the products showing ‘ZERO MRP’ problem are
in the range of 5-10and 10-15.
8. What is the customers reaction about this kind of problem?
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a) Leave that productb) Leave all the products of that sectionc) Cancel all purchasesd) Buy it from other place
INTERPRETAION:
In the above pie-chart it is illustrated that majority of the customers when against this
kind of situation cancel all purchases from that particular store.
Some of them also purchase it from somewhere else, while some just leave that product
and continue their purchase.
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9. What is the impact on company’s brand image?
a) Bad brand image
b) Not any impact
c) Decrease competitiveness
d) Loss in customer loyalty
INTERPRETATION:
In the above pie-chart it is illustrated that there will be a greater impact on brand
image which will be bad, and there will be a minimum loss in customer loyalty due to
this problem.
10. What will be the impact on customer loyalty due to this problem?
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a) No impact
b) Minimum impact
c) Bad impact
d) Loose customer
INTERPRETATION:
In the above pie-chart, it is illustrated that there will a bad impact on customers loyalty
which is maximum ( 59%) and there is a very less possibility that there will be no
impact.
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SURVEY ON SPNCER’S RETAIL
What is the thought of people about Spencer’s retail?
1. Have you heard of Spencer’s?
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Yes 93%
No 7%
2. Have you visited Lucknow city Spencer’s earlier?
Yes 90%
No 10%
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3. Visited Lucknow Spencer’s once, twice or more?
Once 12%
Twice 19%
More than Twice 69%
4. Peoples not visited to local retail stores?
Local shops 10 %
Big Bazaar 20 %
Any other stores 70 %
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5. Spencer’s products range available to customers?
Spencer’s 3%
Big Bazaar 5%
Vishal Mega Mart 15%
Others 77%
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6. Spencer’s in FMCG?
Spencer’s 67%
Big Bazaar 25%
Vishal Mega Mart 8%
7. Spencer’s in garments?
Yes 8 %
No 92 %
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8. Spencer’s in F & V?
Yes 22 %
No 78 %
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BIBLIOGRAPHY:-
Author’s Name Book Name Place of Publication Year
Kothari, C.R. Research Methodology-
Methods and Techniques
Wiley Eastern Ltd., New Delhi
Brown, F.E. Marketing Research, a
structure for decision
making
Addison-Wesley Eastern Ltd.
Dunn Online Jean and
Virginai A Clarck
Applied Statistics John Wiley and Sons
Hooda, R.P. Statistics for Business and
Economics
Macmillan India, New Delhi
Green Pant E and Donald S.
Tull
Research for Marketing
Decisions
Wiley Eastern, New Delhi
Philip Kotler. Marketing Management Prentice Publishing Co., New
Delhi.
Shenoy, GVS et al. Quantitative Techniques
for Managerial Decision
Making
Wiles Eastern New Delhi
.
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Websites
www.Spencersretail.com
www.rpggroup.com
www.scribt.com
Magazines
India today.
Business world.
Business india.
Material profile of company.
Surey.
Search engines.
www.google.com
www.search.com
www.yahoo.com
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