Professional Documents
Culture Documents
Project On Spencer
Project On Spencer
ON
“Brand awareness of Spencer’s & its comparative analysis with Big Bazaar & other
retail organizations in Lucknow city”
Section- 1802
First of all I would like to thank the Management at Spencer’s Retail Ltd. for giving me the
opportunity to do my 45 days project training in their esteemed organization. I am highly
obliged to my project guide Mr. Shekhar Sharma (HR manager, Spencer’s Retail Ltd.)
for granting me to undertake my training at Lucknow.
I express my thanks to all Staff of the branch under whose able guidance and direction, I was
able to give shape to my training. Their constant review and excellent suggestions
throughout the project are highly commendable.
My heartfelt thanks go to all the executives who helped me gain knowledge about the actual
working and the processes involved in various departments. I have no words to express my
feeling of deep gratitude, which I owe to SWATI OBEROI DHAM who extended me
assistance, support and council without, which this project would not have been materialized.
PROJECT GUIDE:
I am lucky that, I got an opportunity for making the project report on “Spencer Retail”. I
visited the various concerns for 45 days and I prepare my project report on the topic “Brand
awareness of Spencer’s & its comparative analysis with Big Bazaar & other retail
organizations in Lucknow city.” and the study is divided into various chapters to get
knowledge. I also considered some published material on the particular topic as well as about
the concern. This helps me in boosting up my confidence and determination which will help
me to face the situation in coming years. This report is written account of what I learnt and
experienced during my survey. I wish, those going through it will not only find it readable
but also get as useful Information. The main limitation of my experience was that I did not
get the full and correct Information from the market, as many of the respondents did not
answer to my questionnaire correctly and completely.
INTRODUCTION
- 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.
- 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.
- The Company's expansion 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.
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
Improved performance
Increased scalability
Ensured IT systems' availability
Reduced space and power requirements
Story Details
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 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.”
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.
SPENCERS RETAIL LIMITED
Company Profile
Company Profile Spencer's retail is the largest* supermarket chain in India. We offer a
complete range of products & durables, from bread to bed cover; from toothpaste to even
television sets. Today Spencer's has 100 stores spread across 25 cities with a retail trading
area of more than half a million square feet, and we're growing rapidly. Spencer's is the
shopping choice for millions across the country, 2.8 million to be exact, who frequent our
stores every month.
Today Spencer's offers its customers a customized and convenient shopping experience in 5
different formats. Each format, namely the Spencer's Express, Spencer's Fresh, Spencer's
Daily, Spencer's Super and Spencer's Hyper is differently sized and caters to the various
needs of our consumers. We at Spencer's offer a pleasant and delightful shopping experience
by ensuring convenient store locations, trusted quality, great value for money and a wide
array of products. And these qualities characterize all of our 100 stores, across the country.
Over the years, during the turn of twentieth century as the consumer demand increased and
the retailers geared up to meet this increase world over, technology evolved rapidly to
support this growth. The hardware and software tools that have now become almost essential
for retailing can be classified into 3 broad categories:
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 fast
and easy payment process. Electronic cheque conversion, a recent development in
this area, processes a cheque electronically by transmitting transaction information to
the retailer and consumer's bank.
Internet
ERP System
CRM Systems
The rise of loyalty programs, mail order and the Internet has provided retailers with
real access to consumer data. Data warehousing and mining technologies offers
retailers the tools they need to make sense of their consumer data and apply it to
business.
APS systems can provide improved control across the supply chain, all the way from
raw material suppliers, right through to the retail shelf. They enable consolidation 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.
The decision on how to place and stack items in a store is no more taken on the gut
feel of the store manager. A larger number of visual merchandising tools are
available to 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 they
didn't provide the scalability that was needed. Plus, some of its stores are currently working
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 came closest to fulfilling
its needs. Project Shakti has been operating for the last two years out of 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, West Bengal, Jharkhand,
and Karnataka (Bangalore, since 1 July 2008). Spencer's Retail has rolled 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 latest MySAP ERP IS Retail ECC 6.0 for their
operations in Books & Beyond, and are gradually 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 respective distribution
centres (DC) and selling to customers. The DCs in turn would be procuring articles based on
the site's need from different vendors. The business processes covered under this are
purchase, sales, inventory controlling along with financial accounting. The challenges faced
during the implementation are managing the different pricing procedures which change very
rapidly, managing the promotions; automation of the POS information, high volume of
information to be processed, GMROI (Gross Margin Return on Investment) etc.
They have followed SAP Methodology during the course of this implementation. The Project
leader from SAP India gathered the necessary KPI's, Dimensions and reports from the
functional consultants. Based on these inputs he prepared a Data Model and the Blue Print.
Taking this Blue print as input the team at RPG was responsible in preparing the technical
specs and also realize/develop the objects.
With ERP, high-availability is a challenge as the network over which the data travels from,
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 business warehousing
servers. For data processing, they have 'staging servers'. These are intermediary servers to
store data temporarily before moving it to the SAP Production server. Eventually, all stores
and warehouses across all locations will be integrated with its 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 processing and analytics.
In its legacy systems, they have deployed solutions like SAS and SAPZone. They use them
to do bill-value and time analysis. They are also using MySAP Business Warehousing 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 gradually
implementing business intelligence into their system in due course.
An important pillar of retail business is ERP, which has three elements – People, Process and
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. This makes the
task more challenging, as it needs to manage deployments in such a dynamic environment
keeping pace with the company's exponential growth plans.
Operations
Spencer's has retail footage of over 1 million square feet and over 275 Spencer's stores in 50
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 ranges from
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 and frozen foods,
garments, consumer electronics & electrical products, home care, home décor
& home needs, office stationeries, soft toys. Besides, the stores also comprise
book & music retailing, electronic gadgets and IT accessories. On an average,
a Spencer's hyper stocks 70,000 SKUs across 35,000 items.
The Spencer's stores are neighborhood stores ranging from 1500 less than
15000 sq. ft. These stores stock the necessary range and assortment in fruit
and vegetables, fmcg food and non-food, staples and frozen foods and cater 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 ft sometimes offer home
care products; personal care products, bakery, chilled and frozen food; baby
care, basics in garments and limited range of electronics and electrical.
New Ventures
Spencer’s 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.
Vision
To “build Spencer’s as the most professionally managed retail business in the country
through:
Mission
Strives to exceed the aspirations of its customers for a healthy and fulfilling lifestyle by
providing:
Spencer’s has retail footage over 2 million square feet and over 400 Spencer’s stores in
65 cities.
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.
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).
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.
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.
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.
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
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.
Spencer’s already employ over 9000 employees across 60 cities. Roughly 1/3 rd
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 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
Big Bazaar
Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big
Bazaar scores over other stores is its value for money proposition for the Indian customers.
At Big Bazaar, you will definitely get the best products at the best prices - that’s what we
guarantee. With the ever increasing array of private labels, it has opened the doors into the
world of fashion and general merchandise including home furnishings, utensils, crockery,
cutlery, sports goods and much more at prices that will surprise you. And this is just the
beginning. Big Bazaar plans to add much more to complete your shopping experience.
The Big Bazaar is the discount store which offers a wide range of products under one roof.
The products include apparels and non-apparels such as utensils, sports goods and footwear.
The Food Bazaar provides a range of food and grocery products ranging from fresh fruits and
vegetables, staples, FMCG products and ready-to-cook products. The Central offers a chain
of stores including books and music stores, global brands in fashion, sports and lifestyle
accessories, grocery store and restaurants. The Group's other formats include, Depot, Shoe
Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and
Sitara. It also operates an online portal, futurebazaar.com.
What started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is
today a conglomerate encompassing 180 showrooms in 100 cities / 24 states. India’s first
hyper-market has also been opened for the Indian consumer by Vishal. Situated in the
national capital Delhi this store boasts of the singe largest collection of goods and
commodities sold under one roof in India.
The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic
leadership of Mr.Ram Chandra Agarwal . The group had a turnover of Rs 2884.43 million
for fiscal 2006 and Rs. 6026.53 million for fiscal 2007.
The group’s prime focus is on retailing. The Vishal stores offer affordable family fashion at
prices to suit every pocket.
The group’s philosophy is integration and towards this end has initiated backward integration
in the field of high fashion by setting up a state of the art manufacturing facility to support its
retail endeavors.
Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price
ranges. The showrooms have over 70,000 products range which fulfills all your household
needs, and can be catered to under one roof. It is covering about 29, 90, 146 sq. ft. in 24
states across India. Each store gives you international quality goods and prices hard to match.
The cost benefits that is derived from the large central purchase of goods and services is
passed on to the consumer.
Reliance Retail, Ltd. operates retail outlets in India. Its retail outlets offer foods, groceries,
apparel and footwear, lifestyle and home improvement products, electronic goods, and farm
implements and inputs. The company’s outlets also provide vegetables, fruits, and flowers. It
focuses on consumer goods, consumer durables, travel services, energy, entertainment and
leisure, and health and well-being products, as well as on educational products and services.
The company was founded in 2006 and is based in Mumbai, India. Reliance Retail, Ltd.
operates as a subsidiary of Reliance Industries, Ltd.
Subhiksha was an Indian retail chain with 1600 outlets selling groceries, fruits, vegetables,
medicines and mobile phones. It was started and is managed by R Subramaniam, an IIM
Ahmedabad alumnus. Subhiksha plans to open 1000 outlets by December 2008. [1] He also
plans to invest Rs.500 crore to increase the number of outlets to 2000 across the country by
2009.its turn over was 2305 crore in financial year 2008.
The name Subhiksha means prosperity in Sanskrit. It opened its first store in Thiruvanmiyur
in Chennai in March, 1997 with an investment of about Rs. 5 lakhs. The retail chain has seen
a considerable growth by offering goods at cheaper rates and there by increasing its customer
base. It is also dubbed as India's largest retail chain.vision to deliver consistently better value
to Indian consumers, has guided Subhiksha to deliver savings to all consumers on each and
every item that they need in their daily lives, 365 days a year, without any compromise on
quality of goods purchased.
Subhiksha now has the pan Indian presence with stores across Delhi, UP, Punjab, Haryana,
Gujarat, Maharashtra, AP, Karnataka and TN. It has recently commenced operation in Kerala
also. Today, it is a multi-locational, professionally managed and vibrant organization.
Subhiksha now has even opened Specialised Mobile shops called Subhiksha Mobile where
mobiles are sold at a discounted price.
As of January 2009, Subhiksha has been facing severe financial crises pertaining to liquidity.
This has led to the shutting down of a large number of stores across the Nation.
This project is based on the comparative study of consumer behavior towards Brand
awareness of Spencer’s and its comparative analysis with Big Bazaar & other retail
organizations in Lucknow city. Objectives of the study are:
Research Methodology
This chapter describes the methodology of the study. This project is based on information
collected from primary sources. After the detailed study, an attempt has been made to present
Brand awareness of Spencer’s and its comparative analysis with Big Bazaar & other retail
organizations towards the people. The data had been used to cover various aspects like price
of various commodities available at Spencer’s and Big bazaar. In collecting requisite data
and information regarding the topic selected, I went to the outlets of Spencer’s, Big Bazaar &
Vishal Mega Mart of Lucknow city and collected the data.
Survey design:
The study is a cross sectional study because the data were collected at a single point of time.
For the purpose of present study a related sample of population was selected on the basis of
convenience.
Research Period:
Research Instrument:
This work is carried out through face to face survey &self-administered questionnaires. The
questions included were open ended, dichotomous and offered multiple choices.
Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
Primary Source: The primary data comprises information survey of “Brand
awareness of Spencer’s and its comparative analysis with Big Bazaar & other retail
organizations ”. The data has been collected directly from respondent & with the
help of structured questionnaires.
Secondary Source: The secondary data was collected from Company’s website and
price list of the companies.
Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical
techniques. The technique that I have used is pie graphs, Bar graphs, with MS Excel
& SPSS.
Due to limitation of time only 100 people & 3 stores were selected for the study. So
the sample of people & stores was not enough to generalize the findings of the study.
The main source of data for the study was primary data with the help of self-
administered questionnaires. Hence, the chances of unbiased information are less.
Yes 93
No 7
Yes
No
Yes 90
No 10
Yes
No
Once 12
Twice 19
Column1
Local shops
Big Bazaar
Any other stores
Spencer’s 3%
Big Bazaar 5%
Vishal Mega Mart 15%
Others 77%
Spencer’s
Big bazaar
Vishal Mega Mart
Others
6. Spencer’s in FMCG?
Spencer’s 67%
Big Bazaar 25%
Vishal Mega Mart 8%
Spencer’s
Big Bazaar
Vishal Mega Mart
7. Spencer’s in garments?
Yes 8
No 92
Yes
No
8. Spencer’s in F & V?
Yes 22
No 78
Yes
No
Findings
Spencer’s have good brand awareness among the consumers.
The consumers are not much satisfied of the offers introduced by Spencer’s.
Spencer is a major player in the Indian organized retail industry. They have a good customer
base in the high class level income group. Mainly they are focusing on the Men-Women-
Kids Apparel, gifts and also in the home furnishing products. They have huge music, cards
or cookery departments.
Chart Title
80%
60%
40%
20%
0%
From the above the analysis it’s revealed that though a very few numbers of low grade
income level customers are visiting the garment section but in the gifts section we have
found that the products are unreachable for the average level income groups.
Here we have analyzed the flow of customer’s per day basis. For this reason we have studied
customer flows on an average of high customer flow days.
GARMENTS DEPARTMENT
In Spencer we have found that the average customer flow lies between 650-700 on average
high customer flow day.
The main products categories in Spencer basically the Music and home furnishing products
related to gifts items. We have found that in the case of garments department customer flow
is 350 per day bases and in the case of gifts departments its 600 to 700 per day basis. It’s
noted that the gifts department consists of exclusive products.
GARMENTS DEPARTMENT
GIFTS DEPARTMENT
MUSIC DEPARTMENT
The garment section is divided into Men, women and kids section as well as lifestyle
accessories and shoe wears. They have all the major brands like Blackberry, Louis Phillips,
Lee Coopers, Van Hausen, Parx, Lee for in the men category, Melanga, Code, Ginger in the
women category and for the kids section they have brands like Bossini, Benetton, Orchestra,
Juniors, Teeny Tiny, Artex etc.
1. Watch section for the brands like Fast track, Zodiac, Hugo-boss, Nautica, Marie
Claire, Casio, Guess, GC, Kenneth Cole, Aspen, Skagen, Levi’s, Adidas etc.
2. Sunglass section for the brands like Ferrari, Mojo, Mont blanc, Scott, Guess etc.
3. Fashion accessories for the brands like Tribal Zone, Sarah, Fire Fly, Adrika, Earrings,
Necklace, Bracelet, Anklet, Bangles, Hair Clips, Bra Straps, Scrunges, Men’s
Jewelry, Kids Fashion.
All these product range are exclusively for the High grade income level customers.
The gifts section is consisting of high class home furnishings and personal grooming
products. They are introducing it by the name of “Home Centre”. It’s a one-stop destination
for furniture, home ware and home furnishings that enterprises elegance, luxury and
individuality. Home Centre houses a wide range of contemporary and classic furniture, linen
as well as other home accessories, thus providing customers a high range product.
REVENUE PER
In 2007-08 (Rs)
DEPARTMENT
GARMENTS DEPARTMENT 2000000
GIFTS DEPARTMENT 4000000
MUSIC DEPARTMENT 6500000
TOTAL 12500000
In 2007-08 (Rs)
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
GARMENTS GIFTS MUSIC TOTAL
DEPARTMENT DEPARTMENT DEPARTMENT
The average revenue earned per customer basis is more Rs.15000. Comparison of revenue
generated by the each department is taken into consideration on an average of high customer
flow days.
From the above analysis it’s found that the average customers in the all departments are
basically high grade income level customers.
Garment Department:
Overview:
In Garment department the products are mainly the major international readymade brands
and price ranges lies between Rs.800 to Rs.2000 averagely which is meant for a few Indians
customers.
Findings:
The products exclusively for a certain income level customers. Maximum products are
unreachable for the medium and average income level customers.
Suggestions:
They are focusing a very few Indian customers and the most of the Indian consumers can’t
afford this price range. So if they want to increase their market share in the Indian retail
Industry they should introduce such product range also which can be affordable for the
medium level income groups and the main customer in the retail industry lies within it.
Gifts Department
Overview:
Gifts department is consisting of various product categories from home furnishing products
to personal grooming products.
Findings:
In the Spencer we have found a wider range of glass made and metal products which are
exclusive and also the quality isn’t up to the price levels. Whatever, the stock is sufficient to
satisfy its customers but the price range is found very high as a gift product in this
department.
Suggestions:
Again the Indian retail industry is targeting the medium level income group people as its
increasing day by day but the products in the Spencer store is meant only for the high class
consumers which is very low in population in India. Also an important point is noted that
though the volume is sufficient but the variety in product categories as a gift isn’t sufficient.
Music Department
Overview:
Music section consist of Music CD;s, Game CD & DVD’s and also Movie DVD’s.
Findings:
Spencer has introduced very low range cd & dvd’s like “Moserbear” music and movie cd-
dvd’s and price range lies in between Rs 30 to 100. Basically they are gaining a competitive
business at the age of piracy products in this industry. Also they have a very good collection
in games cd-dvd categories at a low price range of Rs 100 to 200 whereas if anyone go to the
open market the average price range is Rs 300 to 400 for the copyright product.
Suggestions:
Spencer is earning more revenue by its music section. In the music it’s found that the
collection of cd’s and educational cd’s low than the music games cds. They are emphasizing
on the low price mp3 and game cds where as there is also a demand for educational and
movies cd-dvd’s.
Analysis of the study on Big Bazaar
In the Indian Retail Scenario Big Bazaar has a great success to create a revolution. Basically
they have differentiated their customers on the basis of customers rather than their income
level. Later on we will analyze these aspects. Here we are analyzing which income level of
customers are generally tended to purchase the products in Big Bazaar department wise:
100%
90%
80%
70%
60%
High grade income level
50% Medium grade income level
40% High grade income level
30%
20%
10%
0%
Garment Gifts Section Music section Cards section
section
From the above details it is found that the garment section they are targeting the middle and
average level of customers. They are not promoting any major brands and they have their
own brand towards the major brands in garments industry. Flow of high level of customers I
music section is better than the other department. Generally upper middle and medium class
and also a good percentage of average income level customers visits their old departments.
Chart Title
Music Department
Cards Department
Gifts Department
Garments Department
Department
With the study of customer flow in Big Bazaar on an average of high customer flow day we
came to know that it’s basically lies between 2000-2500 customers per day. Here we talking
the customers who are generating revenues for these departments.
From the above figures its executed that flow of customers in garment department is
relatively higher than the other departments. One significant difference is noted than the
others retail is that they have placed their music department at the front of cash counters and
introduced low range of music cds’ and game dvd’s for the all category customers which
increased customers the flow in the music department.
Value of stock in the different departments:
We have chosen 4 departments from Spencer’s store and estimated the valuation of average
stock with the assumption details provided by the branch operation stuffs.
Department (Rs)
Garments Department 163000000
Gifts Department 7500000
Cards Department 150000
Music Department 580000
Garments Department
Gifts Department
Cards Department
Music Department
The garment section is divided into men, women and kids section. They have also a discount
section only for the garments. In this section they are selling the old or rejected stocks of
major brands at 40-50 % discount rate. The value of stock in garment is being overflowed at
the time of winter season and tends to double the value of stock. Normally they are maintain
a stock value of 16.3 to 17 crore value of stock bus it increase at the time of winter to more
than 40 crore.
Stock of music department is overflowed with low products. Their stock have a potential to
earn revenue from all categories as prices of products in this department lies between Rs 30,
to Rs 400 approximately.
To find out the profitability drivers we have compared the revenue generated by different
departments on the basis of 2004-2005 to 2008-2009.For this study we have considered
average revenue of a high customer flow day by the income level customers.
500000
400000
300000 2004-2005
2008-2009
200000
100000
0
Garment Gifts Cards Music Total
department department department department
From the above study its revealed that at the time of inception of the organized retail in India
in the year of 2004-2005, only the high grade and upper medium grade income level
customers were tends to go the retails. So the maximum portion of revenues generates from
these two groups only in the year of 2004-2005.
The change in revenue of garment department and in the gifts department from the year
2004-2005 to 2007-2008 is significant because Big Bazaar is shifted products towards the
own manufactured brands and they became successful to establish their own brands in the
garment retail industry.
A measurable changes found in the cards department is the revenues as well as the stock is
decreasing day by day because of changing customer preferences towards information
technology enabled services like SMS, MMS & E-mails.
Garment Department
Overview:
In Garment department the products are mainly their own brands an price range lies between
Rs 99 to Rs 800 averagely which is very reasonable for the middle class, average and also
low level income group peoples. The stock in this section is fair to satisfy its customer needs
and attracts window shoppers to become a potential customer.
Findings:
The main facts that we have found in the garment section is that Big Bazaar mainly focusing
on the low range products with their own brands. All the times they are giving special
discounts on all the garments products. They have adopted tricks like “Buy 2 get 3”, Buy 3
get 5” which looks like as if you buy 2 will get more 3 but the actual fact is that if you buy 2
products will get 1 free as total you will get 3. It’s a very strategic and attractive offer
specially adopted by Big Bazaar. They have also a section they are selling the branded high
class garments at a high discount rate of 50 to 60 percent.
Suggestions:
After discussing all the profit factors it can be suggest that as they have a good high income
level customer level flow in the others departments like in the furniture and grocery
department they can introduce a wider range of branded products in the garment section as
this income is conscious about the brand that they are using.
Gifts Department
Overview:
Gift department is consisting of various product categories from home furnishing products
personal using products. According to Big Bazaar now a days no one can define which
section should be referred as a gifts section. Customer preference is changing day by day
with the increased product categories.
Findings:
In Big Bazaar we have found that they are also referring home furnishing products, personal
care and low range electronic products as gift products and basically it depends on the
customers need and choice. The whole gift section is able to satisfy the all level of income
groups as they have a large collection of product categories but with a limited stock of same
products. A noted strategy is taken in gifts department is that they are selling a large varieties
of products with a limited stock which helps them to implement a good stock turn over ratio
and generating good revenue from this department.
Suggestions:
Big Bazaar can focus on stocks of gifts though the stock varieties is remarkable but within
the same category the stock is not appreciable.
Music Department
Overview:
Music section consist of Music CD;s, Game CD & DVD’s and also Movie DVD’s.
Findings:
Big Bazaar has introduced very low range cd & dvd’s like “Moserbear” music and movie cd-
dvd’s and price range lies in between Rs 30 to 100. Basically they are gaining a competitive
business at the age of piracy products in this industry. Also they have a very good collection
in games cd-dvd categories at a low price range of Rs 100 to 200 whereas if anyone go to the
open market the average price range is Rs 300 to 400 for the copyright product.
Suggestions:
In the music its found that the collection of cd’s and educational cd’s low than the music
games cds. They are emphasizing on the low price mp3 and game cds where as there is also a
demand for educational and movies cd-dvd’s.
There are three types of consumer in the Indian retail market. Vishal mega mart is a firm
believer of that the middle class and upper middle class are the potential customer in their
product categories.
Here we are analyzing which income level of customers are generally tend to purchase the
products department wise:
100
90
80
70
60
Average grade income level
50 Medium grade income level
40 High grade income level
30
20
10
0
Germent Gifts section Music section Cards section
section
From the above details it’s found that the customer flows in the garment section is relatively
high rather the other sections. The focus customer group is basically medium level income
group of customers.
Here we have analyzed the flow of customer per day basis. For this reason we have studied
customer flows on an average of high customer flow days.
Music Department
Gifts Department
Garments Department
We have chosen departments from Vishal Mega Mart and establish the valuation of average
stock with the assumption details provided by the branch operation stuffs.
Department (Rs)
Garments Department 10340000
Gifts Department 250000
Cards Department 75000
Music Department 200000
Value of the stock in the Garment Departments:
Garments Department
Gifts Department
Cards Department
Music Department
The garment section is divided into men, women and kids section. The value of the stock in
the garment department is relatively much higher than the others departments is relatively
much higher than the other departments. The value of stock in winter season jumps to 18 to
20 crore and its 3 times higher than others season as normally they are maintaining a stock
of 6 crore in the others time.
The value of the stock of the other department are relatively lower than garment department.
The stock maintained in the gifts section, basically maintained for the high and medium level
income customers.
In the cards department the stock increases at the time of Christmas an New Year eve as it’s
seasonal business according to the Vishal Mega Mart.
Music department is consisting of Music, movie and game cd & dvd’s. Its found that the
stock of game cd & dvd’s is higher than the others.
To find out the profitability drivers we have composed the revenue generated by different
department on the basis of 2004-2005 to 2008-2009.
For this study we have considered average revenue of a high customer flow day by the all
income level customers.
180000
160000
140000
120000
100000 2004-2005
2008-2009
80000
60000
40000
20000
0
Garments Gifts Cards Music Total
From the above study its revealed that at the time of inception of the organized retail in India
in the year of 2005-2005, only the high grade and upper medium grade income level
customers wear tends to go to the retails only.
In the case of garments, gifts and music departments as the stock is increased, the revenue is
also increased with the market demand study of the year of 2004-05 to 2007-2008 and also
its seen that product category in the gifts and music department is relatively changing with
the increasing demand of new innovated products.
A measurable changes found in the cards department is that the revenues as well as the stock
is decreasing day by day because of changing customer preferences towards information
technology enabled services like SMS, MMS & E-mails.
Garments Department
Overview:
Product lines and the quality of the products in the Garment Section are basically for the
medium and average grade income level people and price range in this section is averagely
lies between Rs.250 to 600.
Findings :
In the garment section we have found that products categories are not focusing the high
grade income level customers as the brand consciousness not presents in the floors. The high
grade income level people are very conscious about the brand that they are using. Basically
they are very conscious about the brand rather than the quality which isn’t present in this
department.
Suggestions:
Vishal is strategically targeting the middle class customer but there is also a rash of high
grade income level customers in their stores. They should focus on this aspect that they can
turn mob into potential customer by introducing a various range of high class products in the
garment department.
Gifts Department
Overview:
Product lines and the quality of the products in the Gifts Section are basically for the high
and medium grade income level people and price range in this section is averagely lies
between Rs.500 to 800.
Findings:
In the gifts we have found that stock of gifts items is very low and also products categories
are not focusing to low grade income level customers and the gifts department is referred to
high class products.
Suggestions:
They should focus on this aspect by introducing more stocks and also a lower price range
products in the gifts section that they can also generate revenue from lower grade income
customers.
Music Department
Overview:
Music section consist of music cd’s, game cd & dvd’s and also movie dvd’s. Product lines
and the quality of products in the music section are basically for the high and medium grade
income level people and price range in this section is averagely lies between Rs.150 to 500.
Findings:
In the music section we have found that they are mainly focusing on the game cd’s and dvd’s
and also the price range is also high. Again the collection of game cd and dvd’s is
considerable but in the case of Indian music cd’s the stock level is not also upto the
customer’s satisfactory level.
Suggestions:
Vishal should concentrate on that the music industry is passing through a high competitive
market with piracy world so the range should be such as the customer feel free to buy
original cd’s. Another point is that there should be a balance between the stock of their
product lines in the music department.
9000000
8000000
7000000
6000000
VALUE OF THE STOCK (Rs)
5000000
4000000
3000000
2000000
1000000
0
GARMENTS GIFTS MUSIC
DEPARTMENT DEPARTMENT DEPARTMENT
Vishal Mega Mart: From the study its revealed that the average customer flow is
medium grade income level customers and average grade income level customers.
Spencer Retail: The customer flows in this store is basically refers to the high and upper
medium income level customers.
Big Bazaar: They are focusing on the all income level customers but it depends on the
departments wise also.
The value of stock depends on the season. At the time of winter season it increases upto 2 to
3 times than the other seasons as the price of winter garments is relatively higher than
springs-summer collection.
Garments dept
180000000
160000000
140000000
120000000
Garments dept
100000000
80000000
60000000
40000000
20000000
0
Vishal Mega Mart Spencer Retail Big Bazaar
Vishal Mega Mart: The product in the garment section isn’t exclusive and meant for the
medium to average grade income level customers. Also they aren’t focusing on major brands
in the garment industry. All the products are unbranded and semi branded and don’t attracts
the high grade level income groups. However brand consciousness not present but the stock
volume is able to met customer satisfaction.
Spencer Retail: Product ranges are very high and meant for the high class consumers. In
Spencer there is very low stock turnover ratio.
Big Bazaar: They have their own brands in the garments department with a reasonable price
for the upper medium, medium and average class income groups. Though brand conscious
people will think at the time purchasing but customer are satisfied with the stock and as well
as quality related to price. They have high stock turnover ratio.
Gift Department:
Vishal Mega Mart: They are not focusing on the gifts stock for the result customer flow and
revenue from this section is very low and no point is gaining for the customer satisfactory
level.
Spencer: A wider range of products is found in gifts section for the all income level people.
Though the variety in the product categories is high but the volume of stock in the same
product is low. However customers are happy with the large number of collection of gifts
items.
Big Bazaar: A very large investment in the gifts section is found at the time of study. They
are basically emphasizing on introduction of personal grooming products and home
furnishing products in the gifts section. This department is solely for the upper class
consumers and customer’s satisfactory level is remarkable.
Chart Title
80000000
70000000
60000000
50000000
40000000
30000000
20000000
10000000
0
Vishal Mega Mart Spencer Retail Big Bazaar
Cards Department:
Vishal Mega Mart: Stock in the department is taken care as relatively low and it’s
considered as a seasonal business.
Big Bazaar: Stock in this department is taken care as relatively low and it’s considered as a
seasonal business.
180000
160000
140000
120000
60000
40000
20000
0
Vishal Mega Mart Spencer Retail Big Bazaar
Music Department:
Vishal Mega Mart: Music department is consisting of music, movies amd games cd-dvd’s.
the stock of game cd-dvd’s is higher than the others and price range is relatively not for the
medium and average income groups though they are focusing on this income group only and
a result they failed to satisfy their customer needs.
Big Bazaar: Their music department is also consisting of music, movies and games cd-dvd’s
and they have maintained a good balance between the stock level in all the categories. And
also a remarkable change is noted that they selling very low range products within this
copyright product categories. They customer satisfaction level is high with the fulfillment of
their needs.
Spencer: Spencer is earning more revenue in this department than Big Bazaar & Vishal
Mega Mart in music because it is of RPG group.
9000000
8000000
7000000
6000000
3000000
2000000
1000000
0
Vishal Mega Mart Spencer Retail Big Bazaar
SUGGESTIONS AND RECOMMENDATIONS
For promotional offers, company should go for free gifts rather than
going for other ways.
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
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.
Opportunities
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.
Bibliography
www.rpggroup.com
www.scribt.com
Magazines
India today.
Business world.
Business india.
Surey.
Search engines.
www.google.com
www.search.com
www.yahoo.com
www.alvista.com
QUESTIONNAIRE
PERSONAL DETAILS
NAME :
Address:
Gender:
Phone Number:
Marital status:
Education:
Profession:
Questionnaire (General)
1. Store name:
(b) General
(a) Garments
(c) Cards
(d) Music
6. Does the brand consciousness of customers divert them to the different departments?
Yes
No
7. Does the brand consciousness of customers divert them to the different departments?
Yes
No
If yes which type of customer?
Young
Old
Child
Yes
No
If yes then which features is/are motivating?
ERP
Online Adv
SAP/Tally
Informational Security
9. Does the good atmosphere in the store pick the sale up?
Yes
No
1. Which kind of customers generally visit at your garment section and their flow?
Revenue in 2008-2009
Revenue in 2008-09
Revenue in 2008-09
Yes
No
1. Which kind of customers generally visit at your gifts section and their flow?
Revenue in 2008-09
Revenue in 2008-09
Yes
No
1. Which kind of customers generally visit at your Music section and their flow?
Revenue in 2008-2009
Revenue in 2008-09
3. Is your stock efficient to revamp the customer satisfaction in your store?
Yes
No
1. Which kind of customers generally visit at your Cards section and their flow?
Revenue in 2008-2009
Revenue in 2008-09
Revenue in 2008-09
3. Is your stock efficient to revamp the customer satisfaction in your store?
Yes
No