Retailing Customer is King

A Customer is the most important visitor on our premises. He is not 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

Some Published issue of Retail Industry The retail industry is expected to grow into a INR 427 billion industry by 2010- FICCI. Indias retail industry, which is in the middle of rapid growth, has already scripted success stories fit to be the subject of a Bollywood film-Business Standard. The impact of organized retailers that have seen swarming of malls lately, on the mom-npop stores in 20 Indian cities- Indian Council of Research in International Economic Relations (ICRIER). Modern Retailing Comprehensive policy vital- The Hindu Retail boom triggers ancillary industry growth- The Times of India

The Indian Macro Economy

Tops AT Kearney list of emerging markets for global Retailers to enter. 2nd Fastest growing economy in the World and 50% of the total GDP led by services such as IT, telecommunications, healthcare and retailing. GDP growth rate for the year 2007-08 ended at 9.4% (in 1st quarter) and current GDP (6 %) is better than China and other developed country. Reserves crossed the 150 INR 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. 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 the US and China Fragmented retailing with 5 million retailers and 95% less than 500 sq ft nation of shop-keepers brilliant trading and entrepreneur community Real Estate & Retailers in India are the most aggressive in Asia in expanding their businesses, thus creating a huge demand for real estate. Their preferred means of expansion is 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.

Objective of the Study

Objectives of the study

To study the customer demographics and customer preferences in spencers daily retail outlet at valasaravakkam. To study about the perception of customers with reference to availability of products and services in supermarket/Spencers. To study about customer preferences and frequency of shopping. To know the target customers of Spencers Retail/Supermarket at valasaravakkam . To understand the customers expectation from retail service provider.

Research Methodology and Scope of the Study

Research Methodology

The study is relied on primary as well as secondary research. The primary data is collected through personal interviews using structured Questionnaire. The Secondary is collected from management of the Spencers Retail Ltd, various books, journals and Internet. Sampling Methods: Probability sampling method or simple random sampling Sample Size: Sample size is 110. Research Instrument: For this study, for the collection of various data requirement, structured questionnaire is used. This questionnaire contains qualitative and quantitative information of the customers. The questionnaire contains of both open-ended and close ended questions, which would help to know the situation prevailing in the market.

Statistical Tools Used

For the purpose of data analysis, Percentage Method is used for calculation and result was interpreted. No. of Respondents Percentage = ---------------------------100 Total Respondents

Scope of the Study

With the help of primary data given by the respondent during survey and secondary data, study is done to help the Spencers Retail Ltd to understand the market potential at VALASARAWAKKAM, CHENNAI market, also to understand the customer preferences and, potential customers and current market position of Spencers Daily at that area.

Retail Sector and its scope in India

Retail Sector and its scope in India Structure of Indian Retail Sector

The retail industry continued in India in the form of Kirana stores till 1980. Soon, following the modernization of the retail sector in India, many companies started pouring in the retail industry in India like Bombay Dyeing, Grasim etc. From that time the retail sector in India can be widely split into the organized and the unorganized sector. Organized Retail Sector After 50 years of unorganized retailing and fragmented Kirana stores, the Indian retail industry has finally begun to move towards modernization, Systematization and consolidation. Today, modernization is the catch phrase and the key to understanding retail in the next decade. There has been a boom in retail trade in India owing to a gradual increase in the disposable incomes of the middle class households, as a result of good performance of IT, Service and Infrastructure sectors. More and more players are entering the retail business in India to introduce new formats like malls, supermarkets, discount stores, department stores and even changing the traditional looks of bookstores, chemist shops, and furnishing stores. Organized retail formats prevalent globally Malls Supermarkets Hypermarkets Discount Stores Department Stores Specialty Stores Internet Retailing Convenience Stores MBO(multi-business outlet)

Unorganized Retail Sector The unorganized retail sector basically includes the local Kirana stores, hand cart, the vendors on the pavement (sidewalk) etc. This sector constitutes about 95% of the total retail trade. As 70% of the employment is generated in Agriculture sector, hence this form of retailing is widely

seen in those areas and of course to some parts of the urban. There is a lot of hue and cry in the sector for opening of sector for direct investment from the foreign players, but government cannot neglect the interests of small players. One of main reason of not opening this sector to FDI is it may shrink the employment in the unorganized sector and expand that in the organized. The Evolution of retail in India Traditional Formats Itinerant Salesman Haats Melas Kiosks Established Formats Kirana shops PDS Pan/Beedi shops Post Office India's Largest retail Chains: 1. PDS (Public Distribution System): 463,000 2. Post offices: 160,000 3. KVIC (Khadi & Village industries): 7,000 4. CSD (Canteen Stores Department) Stores:3,400 (Source business world marketing White book 2005) Emerging Formats Exclusive retail outlets Malls/Multiplexes Specialty Malls Fast food outlets etc.

Convenience/Department stores Hypermarket

Company Profile

Company Profile

RPG Enterprise

Type: Founded: Founder(s):-

Private Conglomerate Mumbai, India (1979) RP Goenka

Headquarters: - Mumbai, India Key People: - RP Goenka (Chairman Emeritus) Harsh Goenka (Chairman) Sanjeev Goenka (Vice Chairman) Industry: Power, Retail, Tyres/Tires, Transmission, Technology, Entertainment and other Revenue: Employees: Website: US$3.25 billion 58000
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 Harrisons Malayalam

Transmission KEC International RPG Transmission Nitel

Technology Retail Spencer's Retail Music World Books and Beyond RPG Cellucom Zensar Technologies RPG Cables RPG Life Sciences Raychem RPG

Entertainment Other Spencer's Travel Services Spencer International Hotels Saregama

Wide-ranging businesses, growing returns and a reputation to reckon, makes working with RPG an enriching experience. Where entrepreneurial skills are valued, excellence is the by-word, and performance is a pre-requisite. Management The RPG Management Board is the backbone of the conglomerate. Its members are highly qualified professionals, well experienced in their respective fields. Values RPGs 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. Quality For RPG quality determines success. Continuous process improvements are carried out to ensure complete satisfaction of customer and market requirements.

Beyond Business RPG 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 Group The history of RPG began in 1820 when Ramdutt Goenka, from a small town in Rajasthan, came to Calcutta to do business with the British East India Company. The following milestones speak of his enterprising efforts, and the subsequent growth of the RPG group.

By the 1900s the Goenkas establish themselves in diverse business sectors like banking, textiles, jute and tea. Sir Hariram Goenka and Sir Badridas Goenka are conferred knighthood by the British for outstanding contribution to business and the community. In 1933, Sir Badridas Goenka becomes the first Indian to be appointed Chairman of the Imperial Bank of India (now the State Bank of India). He is elected President of the Federation of Indian Chambers of Commerce and Industry (FICCI) in 1945. Keshav Prasad Goenka (son of Sir Badridas Goenka) continues the successful trait of entrepreneurship. In 1950 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 business is taken over by his three sons. One of the sons, Rama Prasad Goenka (better known as RP Goenka), starts RPG Enterprises in 1979 with Phillips Carbon Black, Asian Cables, Agarpara Jute and Murphy India. The 80s see further acquisitions by the RPG group, the first being CEAT Tyres of India in 1981. The group then went on to acquire KEC (1982); Searle India, now RPG Life Sciences (1983); Dunlop (1984); HMV (1988); and finally CESC, Harrisons Malayalam, Spencer & Co. and ICIM in 1989. RP 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

Introduction to Market Potential

Market Potential
Market Potential:Market Potential is the total amount of a product/service that customers will purchase within a specified period of time at a specific level of industry wide marketing activity or estimated maximum total sales revenue of all suppliers of a product in a market during certain period of time. This is an important aspect of marketing since one has to do market research related to his industry product which can be business to consumer or business to business. Market potential is basically carried out to know the strength in the industry also to allocate the target to the sales force based on optimum market research which normally includes the customers requirement

and their expansion plans, investment etc. With optimum information a company can know amount of investment for a product, also for a particular area. Total Market Demand:The total market demand for a product or service is the total volume that would be bought by a defined consumer group in a defined geographic area in a defined time period in a defined marketing environment under a defined level and mix of industry marketing effort. Total market demand is not a fixed number but a function of the stated conditions.

Market demand in the specific period

Market potential Market forecast Market minimum Planned expenditure Industry marketing expenditures Market demand as a function of Industry marketing expenditures Fig (1): Market Demand Figure (1) shows the relationship between total market demand and various market conditions. In this figure, upper limit of market demand is called Market Potential. Companies have developed various practical methods for estimating total market demand.

A common method to estimate total market demand is as follows:Q=nqp Where Q = total market demand n = number of possible buyers in the market q = quantity purchased by an average buyer per year p = price of an avg. unit Benefits of Market Potential Analysis: Understand market potential for a single store, network of stores or a new market. Deploy resources effectively by ranking markets in priority order. Forecast total opportunity in terms of number of customers and revenue potential. Estimate your market share.

A market potential analysis may include: A customer profile to understand where to find more like them Market penetration and market share reports showing performance in existing markets and expected performance in new markets Market ranking reports allowing you to prioritize resource deployment into new markets A geographic view of market opportunity on detailed maps

Market potential can be expressed as a function of: The number of customers purchasing Amount purchased Frequency of purchase

In other words, market potential = (how many * how much* how often)

Bottom Up or Top Down Market Analysis:-

A Bottom Up approach to market sizing starts with a company customers. How much and often do they buy? What is their profile? How many potential customers do you have in the market based on your customer profiles? How can you reach them? A Top Down approach starts with market and industry data. It takes a close look at a geographic market area and profiles the consumers and/or businesses to let you know their propensity to buy your products and services. Estimating the market or market potential for a new business or business expansion is critical in determining the economic feasibility of a venture. But market potential is very essential for the company and by knowing market potential a company can make its position in the market by finding how many players are there in that sector.

Data Analysis and Interpretation

Data Analysis and Interpretation

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 the retail 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 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 SPENCERS , VALASARAWAAKKAM. Table-1

Age Group 18-25 26-35 36-45 46-55 56+

Age Group of Respondents No. of Respondents % of Respondents 37 33.5 42 38 16 14 7 6.75 8 7.75

Pie Chart: 1 Source: Primary Data Inference: From the Table-1 and Pie chart-1 depicted above, Out of 110 respondents who answered the questionnaire, 33.5% people fall in the age group 1825 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 group 18-25 and 26-35

No. of family members of the Respondents

This table explains about No. of family members in a family of valasarawakkam , spencer retail at Chennai. Table-2

No. of Family and Family Member's of Respondent

Member's of family 2 3 4 5 6 7 8 No. of Family % of Family

2
11 33 39 15 8 4

1.8 10 30 35.45 13.6 7 3.5

Column Chart-2

Source: Primary Data Inference: From the Table-2, Column chart-2 depicted above, Out of 110 respondents who answered the questionnaire, 35.45 people belong to 5 members family, 30% people belong to 4 members family, 13.6% people belong to 6 members family, 10% people belong to 3 members family, 1.8% people belong to 2 members family, 3.5% people belong to 8 members family.

Target Customer- Education Wise

This table explains about education level of customers of SPENCERS IN VALASARAVAKKAM. Table-3

Education Level of Respondents

Education Level S.S.C. Inter Graduate Post Graduate Others No. of Respondents

2 8 59 38 3

% of Respondents 1.75 7 53.75 34.5 3

Pie Chart-3 Source: Primary Data Inference: From the table, pie chart depicted above, Out of 110 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 Respondents
This table describes the occupation of respondents who gave the answer of questionnaire and explain class of customers of valasarawakkam,Chennai. Table-4

Occupation of Respondents
Occupations Student House Wife Service Business Others No. of Respondents

21 7 47 24 11

% of Respondents 18.25 6.75 43 21.75 10.25

Pie Chart-4

Source: Primary Data Inference: From the table, pie chart depicted above, On this basis of 110 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 VALASARAVAKKAM, CHENNAI & so taken by me as a sample of the entire population for the analysis.
Table-5

Monthly Income of Respondents

Monthly Income < 5k 5k-10k 10k-20k > 20k No. of Respondents 19 21 % of Respondents 17% 19.5% 37.25% 26.25%

41 29

Pie Chart- 5 Source: - Primary Data Inference:

From the Table-5, Pie Chart-5 depicted above, Out of 110 respondents who answered the questionnaire, 17% people belong to 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.

No. of times in a week shopping at Spencers by the Respondents

This table explains about frequency of shopping in a week by the respondents in a week. Table-6

Shopping at Spencer's in a week by Respondents

No. of times in a week 1 2 3 4 No. of Respondents % of Respondents

26 49 21 13 1

23.6 44.4 19.2 11.9 0.9

Column Chart-6

Source:- Primary Data Inference:From the table, column chart depicted above, On the basis of 110 respondents who answered the questionnaire, 23.6% people go to Spencers for shopping once in a week, 44.4% people shop at Spencers twice in a week. 19.5% people shop at Spencers thrice in a week and 11.9% people shop at Spencers 4times in a week.

Perception of Customers about visiting to supermarket

This table reveals the opinion of customers for visiting a Supermarket. 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-7

Perception of customers for visiting Supermarket

% of Very Poor Outlook Better Price Response 0% % of Poor Response 4% % of Avg. Response 28.50% % of Good Response 44.75% % of VG Response 12% % of No Response 10.75%

Good Quality of Products Variety of Product to choose Parking Facilities Convenience or Opening Hours Product Knowledge of Employee Store Comfortable to shop-in 0% 0.5% 6.5% 43.5% 38.75% 10.75% 1% 1.5% 22.5% 57% 7.25% 10.75% 0% 1.25% 3% 57% 28% 10.75 0.5% 0.75% 3.75% 5.75% 37.25% 43.25% 35% 33% 12.75% 6% 10.75% 11.25% 0% 0.25% 5.5% 46.75% 36.75% 10.75%

For Better Price

Column Chart-7 Source:- Primary Data Inference:From the Table-7, Column Chart-7 depicted above, Out of 110 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 Supermarket.

Column Chart-8 Source:- Primary Data Inference:From the Table-7, Column Chart-8 depicted above, Out of 110 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 Supermarket.

Column Chart-9 Source:- Primary Data Inference:From the Table, Column Chart-9 depicted above,

Out of 110 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.

Column Chart-10 Source:- Primary Data Inference:From the Table, Column Chart-10 depicted above, Out of 110 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 Supermarket.

Column Chart-11 Source:- Primary Data

Inference:From the Table, Column Chart-11 depicted above, Out of 110 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 Supermarket.

Column Chart-12 Source:- Primary Data Inference:From the Table, Column Chart-12 depicted above, Out of 110 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 Supermarket.

Column Chart-13 Source:- Primary Data Inference:Out of 110 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 Supermarket. 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%).

Respondents View in selecting a Supermarket

This question tells about important things for a Supermarket on the basis of customers view. Table-9

Important things in selecting a Supermarket in Respondents view (in %)

Somewhat Outlook Security Close to where You live Convenience of Parking Courteous Friendly Employee Offers Several brands High quality Fruits & Vegetables Diff. Variety of Dairy product Non Veg. & Sea food Home Delivery 8.75% 6% 0.50% 1% 12.75% 1.25% 5% 10.50% 4.25% 32% 52.25% 42.25% 43.50% 8.25% 42% 9.75% 10.25% 9.75% 0.50% 0.50% 5% 11.75% 72.50% 9.75% 0% 2.50% 0% 1% 5% 4.50% 20.25% 29.75% 65% 52.50% 9.75% 9.75% Not all Imp. 1.50% 1.75% 0% Un Imp. 5.50% 2% 0.75% Neutral 13% 16% 5.75% Somewhat Imp. 28.50% 20% 57.75% Extremely Imp 41.75% 50.50% 26% No Response 9.75% 9.75% 9.75%

Column Chart-14 Source:- Primary Data Inference:From the Column Chart-14 depicted above, Out of 110 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 Supermarket.

Column Chart-15 Source:- Primary Data Inference:From the Column Chart-15 depicted above, Out of 110 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 Supermarket.

Column Chart-16 Source:- Primary Data Inference:From the Column Chart-16 depicted above, Out of 110 respondents who answered the questionnaire, 57.75% respondents give their view regarding Convenience of Parking somewhat important, 26% respondents extremely important, 5.57% respondents neutral during selecting a Supermarket.

Column Chart-17 Source:- Primary Data Inference:From the Column Chart-17 depicted above, Out of 110 respondents who answered the questionnaire, 65% respondents give their view regarding Courteous friendly employees as extremely important, 20.25%

respondents somewhat important, 5% respondents neutral during selecting a Supermarket.

Column Chart-18 Source:- Primary Data Inference:From the Column Chart-18 depicted above, Out of 110 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.

Column Chart-19 Source:- Primary Data Inference:From the Column Chart-19 depicted above, Out of 110 respondents who answered the questionnaire, 72.50% respondents give their view regarding High quality fruits and vegetable as extremely important, 11.75% respondents somewhat important, 5% respondents neutral and 9.75% respondents No Response during selecting a Supermarket.

Column Chart-20 Source:- Primary Data Inference:From the Column Chart-20 depicted above, Out of 110 respondents who answered the questionnaire, 43.50% respondents give their view regarding Offers different of dairy products as extremely important, 32% respondents somewhat important, 5% respondents neutral and 9.75% respondents No Response during selecting a Supermarket.

Column Chart-21 Source:- Primary Data Inference:From the Column Chart-21 depicted above, Out of 110 respondents who answered the questionnaire, 52.25% respondents give 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 Supermarket.

Column Chart-22 Source:- Primary Data Inference:From the Column Chart-22 depicted above, Out of 110 respondents who answered the questionnaire, 42.20% respondents give their view regarding Home Delivery as somewhat important, 42% respondents extremely important and 9.75% respondents No Response during selecting a Supermarket.

Customers preferences with respect to Services

This table tells about what kinds of services, customers expect from Spencers . Table-10

Kind of Services customers expect

Services Fast Billing Ticket Booking Counter's Ample Parking Home Delivery All C. & D. cards Should accept Important 90.25% 24.50% 70.25% 79.50% 92.50% Not Important 4.50% 69.25% 24.25% 15.25% 2% No Response 5.25% 6.25% 5.50% 5.25% 5.50%

Column Chart-23 Source:- Primary Data Inference:From the Table-10, Column Chart-23 depicted above,

Out of 110 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.

Findings of the Study

Findings of the Study

After 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 supermarket. Demographics of this area 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. Valasaravakkam is mixture of Joint family and Nuclear family because 34.5% family are having only 5 family members, 30.75% family are having only 4 family members, 13.5% family are having 6 family members and 10.5% family are having 3 family members. Residents of this area are well qualified. 53.75% people are Graduate, 34.5% people are Post Graduate and 7% people have studied Intermediate/ S.S.C. In this 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 reasons for visiting a Supermarket, people 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 Product Knowledge 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 Supermarket, people 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 NonVeg. and Seafood- 52.25% somewhat important % 8.25% extremely important, regarding home delivery- 42% extremely important & 42.25% somewhat important. People gave their expectation regarding different-different services, -- Fast billing 90.25% important, Ticket booking counters- 69.25% not important & 24.50% important, Ample Parking 70.25% important, Home Delivery- 79.50% important, All Credit & Debit cards should accept 92.50% important. Valasaravakkam 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 Supermarket.

Suggestions and Recommendations

Suggestions and Recommendations

Fast moving consumer goods (FMCG) or daily used items should be available in more number of varieties because customers of Valasaravakkam 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. It is found 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 this 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 like brand products rather than private labels.

Spencers have to maintain experienced sales staff so that they can better explain the quality and features of the products. It is found that in-store environment of Spencers very dull, so recommended 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 Valasaravakkam 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 number should be there and offer some point system on every purchase that will attract the customers, through that Spencers can increase its sales. It is found that 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 it easily 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. 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 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 Supermarket for better price and quality of products. Company should give information to the customers through the marketing gimmick (sms) using database of customers. 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

Limitations of the Study

Following are the few limitations of the particular research study.

Data collected may not be a representation of the entire population. I also took the view of respondents who dont shop from Supermarkets. 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.

Conclusion

Conclusion
In the organized retail market of Chennai, Spencers has come up with Hypermarket in the city in 2005, giving good competition to its competitors like Big Bazaar, More, Reliance Fresh and other retail outlets. In the near future, it plans to open many stores in Chennai and some stores in other parts of Tamilnadu. 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, Heritage Fresh@,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 8 years of its launch in Chennai; also nearing one year at Spencers Daily at Valasaravakkam. It 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 More, Food world 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 Spencers. Valasaravakkam 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, radio about various offers, also provide club Spencers membership card.

Annexure

Questionnaire

FEEDBACK FORM

Name:Address:-

Contact No:1. What is your age group? i) 18-25 ii) 26-35 iii) 36-45 iv) 46-55 v) 56+

2. How many Members do have in your family including with you 3. Your Occupation 1. Student 2.House Wife 3. Service 4. What is your monthly family income? 1. < 5000 2. 5000-10,000 3. 10,000 - 20,000 4. >20,000 4.Business 5. Others

5. Where do you shop regularly? 1. Supermarkets 2. Others 6. Do you shop at Spencers store? Yes / No If Yes, how many times per week

7. Reasons for visiting supermarket: Please highlight or enter the appropriate number Index: 1 for Very Poor and 5 for Very good

Very Poor

Very Good

1-5

Better Price Good Quality of Products Variety of products to choose Parking Facilities Convenience/Opening hours Product knowledge of Employee Store comfortable to shop-in

1 1 1 1 1 1

2 2 2 2 2 2

3 3 3 3 3 3

4 4 4 4 4 4

5 5 5 5 5 5

8. In your view what is the important thing in selecting A SUPERMARKET:

Not Description All Impo rtant Security

Somewhat Unimporta nt

Somewh Neut ral at Importan t

Extreme ly Importa nt

Close to where you live Convenience of parking Courteous friendly

employees Offers several brands to choose from in a category High quality fruits & vegetables Offers different variety of dairy products Sells fresh Non-Veg. & seafood Home delivery

9. What kind of services you expect? Please put a mark Services Fast Billing Ticket Booking Counters Ample parking Home delivery All credit and debit cards should accept If, any other please specify Important Not Important

10.

SUGGESTIONS

THANK YOU Spencers Retail Ltd.

Bibliography

Bibliography

Books:-

Marketing Management (13th Edition) Principles of Marketing (11th Edition) Research Methodology The Art of Retailing --

By Philip Kotler, Keller, Koshy and Jha By Philip Kotler and Gary Armstrong C.R. Kothari A.J. Lamba

Reference:www.google.com www.rpggroup.com www.indiaretailing.com www.retailindustry.com www.spencersretail.com www.ibef.org www.thebrandreporter.com