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
http://www.spencersretail.com/index.aspxhttp://www.spencersretail.com/index.aspx


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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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http://www.freefoto.com/preview/807-41-351?ffid=807-41-351&k=Menton+Markethttp://www.freefoto.com/preview/807-41-1806?ffid=807-41-1806&k=Market+stallhttp://www.freefoto.com/preview/807-41-1821?ffid=807-41-1821&k=Fresh+Fruit+Stall


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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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http://images.google.co.in/imgres?imgurl=http://www.panoramio.com/photos/original/21726058.jpg&imgrefurl=http://www.panoramio.com/photo/21726058&usg=__YIAFLXRDojy9B9ofrXbaq9CQJkw=&h=2592&w=1944&sz=1119&hl=en&start=10&um=1&tbnid=C5ucOqo9PT4BsM:&tbnh=150&tbnw=113&prev=/images?q=spencer%27s+super+pictures&hl=en&sa=G&um=1


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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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http://images.google.co.in/imgres?imgurl=http://www.panoramio.com/photos/original/21726058.jpg&imgrefurl=http://www.panoramio.com/photo/21726058&usg=__YIAFLXRDojy9B9ofrXbaq9CQJkw=&h=2592&w=1944&sz=1119&hl=en&start=10&um=1&tbnid=C5ucOqo9PT4BsM:&tbnh=150&tbnw=113&prev=/images?q=spencer%27s+super+pictures&hl=en&sa=G&um=1


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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


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


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


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


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


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


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


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


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


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


Inference:-


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


Inference:-


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


Inference:-


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


Inference:-


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


Inference:-


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


Inference:-


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


Inference:-


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


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?

Sajal Project

Documents

Transcript of Sajal Project