Introduction to the Retail Industry

India retail industry is the largest industry in India, with an employment of

around 8% and contributing to over 10% of the country's GDP.

It is the largest employment provider after agriculture industry.

Source- www.business.mapsofindia.com/india-retail-industry/
 Introduction Of the Company

Date of Establishment 1996

Revenue Rs. 10,913 crores (FY 2008) – RPG Group
Market Cap  Rs. 8,314 crores (2007) –
RPG Group
Branches Mumbai,
Gurgaon, Ghaziabad, Lucknow,
Calicut,
Hyderabad, Vizag, Vijayawada,
Aurangabad
Durgapur and Kolkata.
Management Team R.P Goenka – Chairman
Emeritus
Source- www.rpggroup.com/sretail.html Harsh Goenka
Overview
Spencer’s Retail deals with food, apparel, fashion, electronics, lifestyle products,
music and books.
It also offers services such as gift vouchers and easy loans in association with
CitiFinancial Consumer Finance India Ltd.

Company Profile
vSpencer's retail is the largest* supermarket chain in India.
vIt operates through over 350 stores.
vSpencer's offers its customers a customized and convenient
shopping experience in 5 different formats.
1. Spencer's Express
2. Spencer's Fresh
3. Spencer's Daily
4.Spencer's Super
5. Spencer's Hyper
 Different Formats of Spencer’s
Format Stocks Minimum Trading

Area (sq.
ft.)

Spencer’s Express dairy, fruit and vegetables, bread and bread

products, fruit juice, fresh batter, fresh coffee/tea, 1000
masalas, pickles, Ghee, Fish and meat.

Spencer’s Fresh vegetables, fruits, milk, eggs, breads 2000

Spencer’s daily regular groceries 4000-7000

Spencer’s Super home care products; personal care products, Bakery, 8000-15000
Chilled and frozen food; Baby care products

Spencer’s Hyper Miscellaneous More than 25000

Project Title

“Brand awareness of Spencer’s & its comparative

analysis with Big Bazaar & other retail organizations
in Lucknow city”



Vision
To “build Spencer’s as the most professionally managed retail business in the
country through:

§Excellence in all operating process;

§Nurturing and facilitating a learning and growth culture;

§Building a unique retail experience for the customers”.

Mission
Strives to exceed the aspirations of its customers for a healthy and fulfilling
lifestyle by providing:

§The most innovative customer goods and delectable taste experience.

§The ultimate shopping experience.

§
§Unbeatable value.

§The “next” place away from home or office to relax and indulge themselves.
Objectives of the study

vTo study about the Brand awareness of Spencer’s.

vTo analyze the organized retailer’s profitability drivers

on the basis of Garments, Gifts, Cards & Music
Department.
The Big Bazaar is the discount store which offers a wide range of
products under one roof. The products include apparels and non-
apparels such as utensils, sports goods and footwear. The Food
Bazaar provides a range of food and grocery products ranging
from fresh fruits and vegetables, staples, FMCG products and
ready-to-cook products.

Source- www.pantaloon.com/fashion-bigbazaar.asp
The group’s prime focus is on retailing. The Vishal stores offer affordable
family fashion at prices to suit every pocket.

Vishal is one of fastest growing retailing groups in India. Its outlets cater to
almost all price ranges. The showrooms have over 70,000 products range which
fulfills all your household needs, and can be catered to under one roof.

Source- www.vishalmegamart.net/
Research Methodology

In collecting requisite data and information regarding the topic selected, I went
to the outlets of Spencer’s, Big Bazaar & Vishal Mega Mart of Lucknow city
and collected the data.

Survey design:

Data were collected at a single point of time.

Sample of population was selected on the basis of convenience.

Sample Size and Design:

A sample of 100 peoples & 3 stores was taken on the basis of convenience. The
actual customers were contacted on the basis of random sampling.
CONtd…..
Research Period:

Research work is only carried for 3 weeks.

Research Instrument:
This work is carried out through face to face survey &self-administered
questionnaires. The questions included were open ended, dichotomous and
offered multiple choices.

Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:

Primary Source:
The data has been collected directly from respondent & with the help of
structured questionnaires.
Contd…..
Secondary Source:
The secondary data was collected from Company’s website and price list of the
companies.

Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical
techniques. The technique that I have used is pie graphs, Bar graphs, with MS
Excel.
LIMITATIONS OF THE STUDY

The main limitations are as follows:

Due to limitation of time only 100 people & 3 stores were selected for the study.
So the sample of people & stores was not enough to generalize the findings of
the study.

The main source of data for the study was primary data with the help of self-
administered questionnaires. Hence, the chances of unbiased information are
less.

Retailers were hesitant to disclose the true facts.

Survey on Spencer’s retail

1.Have you heard of Spencer’s?

Yes 93
No 7
2. Have you visited Lucknow city Spencer’s earlier ?

Yes 90
No 10
3. Visited Lucknow Spencer’s once, twice or more ?

Once 12
Twice 19
More than Twice 69
4. Spencer’s products range available to Customers ?

Spencer’s 3%
Big Bazaar 5%
Vishal Mega Mart 15%
Others 77%
5. Spencer’s in F & V?

Yes 22
No 78
findings

1. Spencer’s have good brand awareness among the consumers.

2. Big Bazaar has better product range than Spencer’s.

3. Big Bazaar have greater acceptance among the consumers in comparison to

Spencer’s.

4. FMCG products have major acceptance of all offerings of Spencer’s

among consumers.

5. The consumers are not much satisfied of the offers introduced by

Spencer’s.

6. Big Bazaar has better promotional schemes than Spencer’s.

Data analysis and interpretation
ANALYSIS OF THE STUDY ON SPENCER RETAIL

Types of Customer : Spencer is a major player in the Indian

organized retail industry.
They have huge music, cards or
cookery departments.
HIGH GRADE INCOME 75%
LEVEL
MEDIUM GRADE 20%
INCOME
AVERAGELEVEL
GRADE 5%
INCOME LEVEL
Data analysis and interpretation
Flow of customer in different departments :

DEPARTMENT NO. OF
GARMENTS CUSTOMERS
350
DEPARTMENT
GIFTS DEPARTMENT 700
MUSIC DEPARTMENT 900
Revenue generated by the different department:
REVENUE PER 2007-2008 (Rs)
GARMENTS
DEPARTMENT 20000
GIFTS DEPARTMENT
DEPARTMENT 400000
MUSIC DEPARTMENT 650000
TOTAL 1070000
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 “Moser bear” music and
movie cd-dvd’s and price range lies in between Rs 30 to 100. Basically they are gaining
a competitive business at the age of piracy products in this industry. Also they have a
very good collection in games CD-DVD categories at a low price range of Rs 100 to 200
whereas if anyone go to the open market the average price range is Rs 300 to 400 for the
copyright product.

Suggestions:
Spencer is earning more revenue by its music section. In the music it’s found that the
collection of CD’s and educational CD’s low than the music games CD’s. They are
emphasizing on the low price mp3 and game CD’s where as there is also a demand for
educational and movies cd-dvd’s.
ANALYSIS OF STUDY ON BIG BAZAAR
Percentage of customers flows department wise

TYPE OF CUSTOMER GARME GIFT MUSIC CARDS

HIGH GRADE 10%
NT 15%
SECTIO50%
SECTIO7%
SECTIO
MEDIUM GRADE
INCOME LEVEL 50%
SECTIO 55%
N 40%
N 53%
N
HIGH GRADE
INCOME 40%
N 30% 10% 40%
INCOME LEVEL
Flow of customers in different departments:

DEPARTMENTS NO. OF CUSTOMERS

GARMENTS 1600
DEPARTMENT
GIFTS DEPARTMENT 600
CARDS 250
DEPARTMENT
MUSIC 800
DEPARTMENT
Revenue generated by the different departments:

REVENUE PER 2004-2005 2007-2008

GARMENTS
DEPARTMENT 90000 300000
GIFTS 42000 180000
CARDS 2000 1800
MUSIC 19000 40000
TOTAL 153000 521800
FACTS AND FINDINGS

From the above analysis it’s found that the average customers in the
all departments are the all income level people in Big Bazaar.
Meanwhile their main customer base is upper, middle and average
level income customers.
ANALYSIS OF STYDY ON VISHAL MEGA
MART
Types of customer:
TYPE OF GARMEN GIFTS MUSIC CARDS
HIGH GRADE
CUSTOMER 10%
TS 40% 60% 0%
MEDIUM
INCOME GRADE 60% 50% 30% 50%
AVERAGE
INCOME GRADE 30% 10% 10% 50%
INCOME
Flow of customers in different departments:

DEPARTMENTS NO. OF
GARMENTS CUSTOMER
900
DEPARTMENT
GIFTS DEPARTMENT 250
CARDS DEPARTMENT 100
MUSIC DEPARTMENT 300
Revenue generated by different departments:

DEPARTMENT 2004-2005 2007-2008

GARMENTS 50000 180000
GIFTS 5000 10000
CARDS 2000 1800
MUSIC 1800 5000
TOTAL 58800 196800
FACTS AND FINDINGS

From the above analysis its found that the average

customers in the all departments are the middle grade
income level customers as Vishal is mainly focusing in
this segment of customers.
COMPARITIVE ANALYSIS OF THE
STORES
On the basis of customer flows:
We have considered the average of the high customer flow days.

Store name No. of customer

Vishal mega Mart 1600
Spencer Retail 1200
Big Bazaar 2300
Vishal Mega Mart: From the study its revealed that the average
customer flow is medium grade income level customers and average
grade income level customers.

Spencer Retail: The customer flows in this store is basically refers

to the high and upper medium income level customers.

Big Bazaar: They are focusing on the all income level customers
but it depends on the departments wise also.
Suggestions and recommendations

ØIn order to improve its business, Spencer’s should introduce more

competitive promotional schemes such as those in Big Bazaar.

ØThe product range of Spencer’s should be improved in order to

match that existing in Big Bazaar.

ØFor promotional offers, company should go for free gifts rather

than going for other ways.
THANK YOU