You are on page 1of 106

PART-I

COMPANY PROFILE
Spencers Industries Limited History Management Board About RPG Spencers Retail Format Spencers Retail Store In Lko Growth & Future of Retail

SPENCERS RETAIL LTD.


Spencer's Retail Limited

Type Industry Founded Headquarters

Subsidiary Retail 1920 Kolkotta, West Bengal, India

Number of locations

220 Across 35 Cities[1]

Employees Parent Website

60,000+ RPG Group spencersretail.com

COMPANY PROFILE

Overview of RPG Group


RPG Enterprises, established in 1979, is one of Indias fastest growing business groups with a turnover touching USD $3 billion. The group has more than twenty companies managing diverse business interests in the areas of Power, Transmission, Technology, Retail and Entertainment. Wide-ranging businesses, growing returns and a reputation to reckon, makes working with RPG an enriching experience. Where entrepreneurial skills are valued, excellence is the byword, 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.

History
The history of RPG began in 1820 when Ramdutt Goenka, from a small town in Rajasthan, came to Calcutta to do business with the British East India Company. The following milestones speak of his enterprising efforts, and the subsequent growth of the RPG group. By the 1900s the Goenkas establish themselves in diverse business sectors like banking, textiles, jute and tea. Sir Hariram Goenka and Sir Badridas Goenka are conferred knighthood by the British for outstanding contribution to business and the community. In 1933, Sir Badridas Goenka becomes the first Indian to be appointed Chairman of the Imperial Bank of India (now the State Bank of India). He is elected President of the Federation of Indian Chambers of Commerce and Industry (FICCI) in 1945. Keshav Prasad Goenka (son of Sir Badridas Goenka) continues the successful trait of entrepreneurship. In 1950 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.

SOME IMPORTANT FACTS ABOUT SPENCERS

Date of Establishment Revenue Market Cap

1996 Rs. 10,913 crores (FY 2007) RPG Group Rs. 8,314 crores (2007) RPG Group

Address

RPG Enterprises, CEAT Mahal, 463, Dr. Annie Besant Road, Worli, Mumbai 400

Branches

030, Maharashtra, India Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijayawada,

Management Team

Aurangabad Durgapur and Kolkata R.P Goenka Chairman Emeritus Harsh Goenka Chairman Sanjiv Goenka Vice Chairman S Bannerjee President/Chief Executive Power Sector P.K Chowdhary President/Chief Executive Tyre Sector Subroto Chattopadhayay President/Chief Executive Entertainment Sector P.K Mohapatra President/CEO, Technology Sector Arvind Agrawal President/Chief Executive Corporate Development and HR

Ramesh Chandak - President/Chief Executive Transmission Sector P. Sampath Group CFO

Overview

Spencers Retail is a part of the RPG Companies that deals with food, apparel, fashion, electronics, lifestyle products, music and books. It operates through over 350 stores. It also offers services such as gift vouchers and easy loans in association with CitiFinancial Consumer Finance India Ltd. It consists of Spencers Hypermarkets, Spencers Super, Spencers Daily and Spencers Express.

COMPANY HISTORY
8

YEAR & EVENTS 1987 - The company was established in the year. The main objects of the company are
marketing and distribution manufacture of Pharmaceuticals-Aerated waters and other food products- Marketing of consumer durables- Trawlers and marine products processing- Travel and shipping- Imports and Exports - Hotels and Catering- Tea estater-Chain departmental storescomputer and computer services- Real Estates.

- M/s Kellner Pharmaceuticals Ltd., Vulcan Electricals Ltd., Spencer International Hotels Ltd., Spencer, Furnitures & Furnishing, Spencer Estates Ltd., Spencer Consumer Products and Services Ltd., Spencer Pharmaceticals Ltd., G.F.Kellner & Co. Ltd., Fiesta Restaurant Ltd., Kartik Pharmaceuticals Ltd., and Spencer Information Services are the subsidiaries.

1995 - Spencer Industrial Fund Ltd has become a Subsidiary of Spencer International Hotels Ltd
under provision of Section 4(1) (a) of the Companies Act, 1956 and accordingly a Subsidiary of this Company also from 24th January.

1996 - The Company has entered into a Technical Assistance cum Joint venture options
Agreement with M/s. Dairy Farm International Holdings Ltd., a major International retailing force operating in several countries.

1997 - During the year the company has entered into a Joint Venture agreement with DFI
Mauritius Limited to enter yet another Retail Format. A chain of retail drugstores, dealing in Medicines, Cosmetics, Toiletries and allied Health and Beauty products, is proposed to be set up on a nation-wide basis.

- A new company has been named as RPG Guardian Private Limited and is on a mission to lop a highly regarded retail business in India by offering excellent service and value to customers. The company has been set up on a 50 : 50 equity partnership basis. The total paid up capital of the company will be Rs. 450 lakhs consisting of 45,00,000 of equity shares of Rs. 10/- each.

1998 - Mr P.K. Mohapatra appointed as Managing Director w.e.f. 1st April.


- The Company's expansion4 into Food Retailing through the chain of Food World Supermarket started during 1996 made significant progress during the year. - Foodworld has became a household name in three cities enjoying high patronage from its customers and suppliers.

2000 - Spencer & Company, an RPG group outfit, has signed a joint venture agreement with
Dairy Farm International Mauritius (DFI) to launch a chain of large distribution infrastrucutre, essentially meant to serve the small retailer. - The Company will form a joint venture company, as a subsidiary of Spencers.

SPENCERS RETAIL

10

Based in Kolkata, India, Spencer's Retail is one of the country's fastest growing retail companies with approximately 2 million square feet of retail space and more than 400 stores in 65 cities. Products include food, apparel, electronics, lifestyle products, music, and books. Spencer's Retail is a division of RPG Enterprise, a business group with more than 20 companies in industries such as power, technology, retail, and entertainment. Established in 1979, RPG Enterprises has annual revenue of $3.25 billion.

Customer Challenges

Enable rapid business expansion Improve performance Add room for growth Ensure IT systems' availability

Solution:
Spencer's Retail based its production environment on Sun SPARC Enterprise servers that run SAP ERP software. The infrastructure includes Sun storage solutions and a remote disaster recovery site with Sun SPARC Enterprise and Sun Fire servers. When implementation is complete, more than 350 stores will connect to the new system.

Business Results
11

Improved performance Increased scalability Ensured IT systems' availability Reduced space and power requirements

Products and Services:Sun SPARC Enterprise M5000 Server

Related Customer Success Stories:Out spark Increases System Uptime and

12

Sun SPARC Enterprise M4000 Server Sun SPARC Enterprise T5120 Server Sun Fire V490 Server Sun Storage Tek 6540 Array Sun Storage Tek 6140 Array Sun Storage Tek SL500 Modular Library System Solaris 10 Operating System Solaris Cluster 3.2 Sun Storage Tek Data Replicator Software

Performance, Cuts Power Consumption and Costs with Sun Server Solution. Sun Unified Storage Helps Elanders Reduce Costs and Increase Performance. Ivan Smith Furniture Deploys a Java-Based Reporting System from MCM Software. View all Customer Success Stories.

Story Details
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 13

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. 14

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 15

systems. And it estimates that its current solution can easily handle up to 1,000 stores. The company also appreciates that the more energy-efficient and compact design will reduce space and power requirements. Spencer's Retail plans to enhance its IT environment further with a new disaster recovery site, which will include Sun Fire V890 servers and Sun SPARC Enterprise T5120 servers running Solaris Cluster software connected to a StorageTek 6140 array. It will also use Sun StorageTek Data Replicator Software software to mirror data between the production environment and the remote location. Together with its new server infrastructure, the disaster recover installation will provide the high-performance, high-availability solution the company envisioned. With its business processes running on Sun infrastructure, Spencer's Retail can meet business growth with confidence.

16

MANAGEMENT BOARD:The Management Board comprises of highly qualified and experienced professionals from different business areas.

17

RPG ORGANIZATIONAL EXCELLENCE:RPG Organizational Excellence is an effort toward achieving excellence by enhancing performances through clarity of purpose, meticulous planning, tenacious execution and passion to excel.

18

RPG ORGANIZATIONAL APPROACH:-

RPG Organizational Approach translates the groups organizational excellence strategy through an effective 3-point program: Six Sigma TPM Continuous Improvement

19

ABOUT RPG:RPG Enterprises is not only one of the biggest, but also one of the most respected names in the industry. A US$ 3.4 billion business conglomerate, RPG is one of the powerhouses that drive Indian Industry. With more than 20 companies, it spans 7 business sectors, Retail, Technology, Entertainment, Power, Transmission, Tyres and Specialties- all under the RPG banner. Even with such a diverse portfolio, the fact that RPG Enterprises has had nothing but only unrivalled success in all these sectors, speak very highly of the efficiency and vision with which the company is run. Over the years RPG Enterprises has built a huge reservoir of trust and goodwill among the people of India. People at Spencers are truly proud to be a part of the RPG

THEIR HERITAGE:Since 1863, Spencers has been a part of the Indian retail landscape. At one time, the Spencers Empire stretched from Peshawar to Cochin, from Karachi to Chittagong, spanning the length and width of undivided India. Originally owned by a British gentleman yes, there was a Mr. Spencer (John William Spencer, to be precise) it acquired Indian ownership in the 1960s, and became part of the RPG Group in 1989. In 1995, RPG Enterprises, the flagship company of the RPG Group, launched Foodworld as a joint venture with Hong-Kong based Dairy Farm International. The joint venture, which operated supermarkets under thename Foodworld and hypermarkets under the name Giant, was terminated in 2006. RPG retained 48 of the 93 stores it owned. These were re-furbished and

20

their launch under the brand name, Spencers, kicked off a new phase in both the history of the Spencers brand, and the retailin India. Since inception Spencers has been a consumer-centric brand, constantly innovating, pioneering formats, evolving over time but always keeping consumer needs and satisfaction center-stage. Back in 1920, we were the first grocery chain in India. In 1980, we became the first supermarket chain, and in 2001, we introduced India to the joys of hypermarket shopping. What has remained unchanged almost 150 years is the trust the Spencers brand evokes. To the consumer, it carries the promise of innovation, quality, and service; the confidence that they will always be able to find a Spencers at a convenient location; that it will have a pleasant ambience; and that it will offer a wide range of products at affordable prices.

21

RPG VALUES:-

Customer Sovereignty People Orientation Innovation and Entrepreneurship Transparency and Integrity Anticipation, Speed and Flexibility Passion for Superior Performance

22

VISION

Harsh Goenka, Chairman, RPG Enterprises We shall be a leading Indian group with a focus on market capitalization through

Leadership in profitability and revenue growth in our chosen business Being a customer centric organization
Being the most exciting work place

23

DIVERCIFICATION IN DIFFERENT SECTOR

24

RETAIL MACRO ENVIRONMENT:-

25

RPG RETAIL VISION


To be a customer focused, differentiated, Foods intensive Retail Company with clusters of destination and convenience stores (Hyper ,Supers & Dailies) To establish Spencers Express & mass proliferate To set up Retail chains in focused Verticals like Music, Books, Mobility Solutions, Apparel, Footwear, Luxury Brands and Life Style Brands where domain knowledge exists or is acquired through partnerships To achieve Pan India presence with 2000 Stores through current verticals by 2009 & 5000 stores by 2011

26

THE JOURNEY:-

RPG RETAIL 1995-2005

Grocery Super markets.

GIANT HYPERMARKETS Hypermarket with extended range

27

HISTORY
1995 JV between RPG and DFI to set up retail Stores in grocery. 1996-2003- All is well rapid expansion 95 stores across south & Pune. 2001- FDI withdrawn in retail. 2002- MOU expires with DFI .cracks in the JV. No store opened till 2005. JV Broke up 2005 Sept.

28

RPG RETAIL 2005 ONWARDS: September 2005 -Spencers Retail was born- A revitalized organization with new hopes and challenges. Group re-dedicates itself to the industry New store opening plans made and first store opened in October Addition of new Formats : Books n Beyond, Cellucom in sector portfolio in 2007

29

SPENCERS RETAIL: CURRENT VIEW: Aggressive plans for Spencers Exited March 08 with 400 stores including 16 Hypers with T/O Rs 800 Cr. Propose to add >500 stores including 26 Hypers by March 09 with T/O > 2000 Cr. Exit 09 with >1000 Spencers stores Investment plan - Rs 1100 Cr for Spencers expansion. May 08: Pan India presence in 65 cities with 400 stores - 16 Hypers, 12 Supers, 197 Dailies, 135 express.

30

FORMATS OF SPENCERS OUTLETS

Spencers has retail footage over 2 million square feet and over 400 Spencers stores in 65 cities. The Company operates through the following formats: 1. Spencers Hypermarkets: A fast growing retail network of hypermarkets with large format stores in Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijaywada, Aurangabad, Durgapur and Kolkata. 2. Spencers super: One of the largest supermarket chains in the food and grocery segment in India. 3. Spencers Daily: Small format stores conveniently located with a range of products to meet daily household needs.

31

4. Spencers express: Food and grocery store next door.

Spencers Daily

Fresh Fruit Stall

Market stall

Manton Market

The Spencers 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. 32

It is about 4000-7000 sq ft in size and with a bright and friendly atmosphere; Spencers Daily saves the hassle of bargaining with the local kirana shop owners (because it offers the lowest possible prices).

SPENCERS EXPRESS

Spencers Express is a store next door for the fresh needs at arms length.

33

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.

SPENCERS FRESH

34

Spencers 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, Spencers Fresh is far better the regular sabzi mandis or local vegetables markets and at Spencers.

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!

SPENCERS SUPER

35

The Spencers Super is the place to go for the monthly shopping. About 8000-15000 sq ft. in size, the Spencers 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.

SPENCERS HYPER

36

The Spencers Hypermarkets are huge destination stores, more than 25,000 sq ft. in trading area. Shoppers come here looking for fantastic deals across all categories. Hypermarkets ensure a comfortable, clean, bright and functional ambience to shop along with the convenience of finding everything under one roof at the best value for money.

37

DIVISION OF HYPER

HWPFL
Home, Work, Play, Furniture, Linen.

GARMENTS SECTION

ENE
Electrical N Electronic.

F&V
Fruits & Vegetables.

STAPLES Deals with Grocery items.

FMCG
Food & NonFood

Deals with Apparels.

BACKGROUNDER
Indias first modern format hypermarket was opened by Spencers in Hyderabad in January 2001. Located over an area of 1,20,000 sq.ft., the store has a trading area of 36,000 sq.ft. The Spencers hypermarkets, located across the country, are open throughout the day, seven days a week, 365 days a year. Spencers already employ over 9000 employees across 60 cities. Roughly 1/3rd of the team are women. Spencers 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 Spencers name still evokes special memory of authentic quality at affordable prices.

38

Currently, RPGs Retail activity comprises Spencers Retail, RPG Cellucom, Books & Beyond and MusicWorld. RPGs total retail outlets are more than The total area of all Spencers stores across the country is over .. sq.ft. Spencers currently has a national consumer base of over 48 million people, who walk into the store every year.

SNAPSHOT

Different Formats of Spencers Format


Spencers Express

Stocks
dairy, fruit and vegetables, bread and bread products, fruit juice, fresh batter, fresh coffee/tea, masalas, pickles, Ghee, Fish and

Minimum Trading Area (sq. ft.) 1000

Spencers Fresh

meat. vegetables, fruit, milk, eggs, breads

2000 39

Spencers daily Spencers Super

regular groceries home care products; personal care products, Bakery, Chilled and frozen food;

4000-7000 8000-15000

Spencers Hyper

Baby care products Miscellaneous

More than 25000

Lucknow:

East(hyper) Fun mall UP


Ashiana Aliganj Indranagar Jankipuram Rajendra nagar Rajajipuram Vikas nagar Viram khand Vivek khand

Varanasi
Bhelupur Sigra Mehmurganj Bhojuveer

Gorakhpur
(Hyper) City Mall

Ala

40

Elements available for branding.

H=8ft L=13ft

Glass branding (hyper-Fun)

41

Travellator branding

5 Glass sides of the travellator (Hyper Fun)

Contd

Danglers (all)

Drop downs 3ft-2ft (hyper)


.

42

43

Contd..
L = 6ft B = 2ft

Cash Till branding 2 (hyper)

L=3ft W=1ft10

Cash till branding-1 (hyper)

44

Contd

Standee (all)

Up to 18sqft

Leaflet branding (all)

Contd

Trolley branding

Basket Branding L1 = 14, L2 = 13, H = 10

45

Contd

Carry bag branding (all)

Bill roll branding (all)

Contd

46

Contd

Circular=3ft 6 Height=11ft 4

Pillar branding inside mall

Pillar Branding (3 Pillars)


H = 7ft 10, W = 2ft 8

47

Contd

Floor sticker (all)

Cash till branding (small stores)


L=2.5ft W=1.5ft

Contd

Cash till branding


Indranagar & Ashiana store

48

49

PART-II
50

OBJECTIVE OF THE PROJECT

The project would study the scanning efficiency of the products of the HWP section of the Hyper.

To find out the main reasons behind the decreased scanning efficiency of the products of HWP section.

To check how many products require alteration i.e., retagging, New Mrp etc. It will also let us know the comparison between the scanning efficiency of HWP and other sections.

What is the amount that is lost due to inefficiency of the section? To suggest some action that can help in increasing the efficiency of the section. What kind of problems are faced by the CSAs at the till counter related to the products of HWP section.

51

RESEARCH METHODOLOGY:-

RESEARCH

Research is a systematized effort to gain new knowledge. -Redman & Mory

Research is a careful investigation or inquiry especially through search for new facts in any branch of knowledge.

-Advanced Learners Dictionary of Current English

Research is the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art.

52

OBJECTIVES OF RESEARCH
The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. In this project descriptive type of research has been done.

DESCRIPTIVE RESEARCH
Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we quite often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. As in this report descriptive research has been used methodology was based on comparative analysis which was done for six sectors for 92 companies in east UP for alliances and activation area. Sectors were Education; Telecom, Healthcare, Insurance and banking, Automobile, and others. From which 41 was positive and 51 were negative responses when presentation was give to these companies from the positive responses few converted into deals as telecom companies were ardent interested in branding comp aired to other sectors. The revenue generation from this sector was more than other sectors. The research study based on companies responses as telecom companies have big budget comp aired to other sectors because of high competition in telecom sector as they want to connect to there customer fast. Few companies are interested but they 53

worried about response they are not sure they will get benefit or not, convinced them quite difficult task. Analysis done on every sector separately and comparative analysis for two sectors has been done. The responses which was viewed for 92 companies can be deliberate by descriptive study only because whatever the responses was give by companies could be psychoanalysis only by whatever interaction taken place during the period of presentation till the last fellow up of the company. Positive and negative responses also analyzed on executive responses and depend on the communication which taken place between the company executive and Spencers trainee not any type of questioner was prepared. of trainee has been revealed in the project report. Experiences and understanding

54

PART-III
55

DATA ANALYSIS:-

We directed all our sincere efforts in doing the project with much sincerity and honesty.

We found many a things hap hazarded in Spencers as the dedication of the employees towards their work was not up to the mark.

There were a lot of problems we faced while we were scanning the products of the HWP section. Some of them are described below as follows:-

There were some torn tags which were difficult to get scanned. There were some products that didnt have tag at all. One major problem was also that some products Mrp as zero. Some products were also found as INF (Item not found).

We scanned all the items of the HWP section & with our sincere efforts and with the coordination of the Spencers employees, we were able to resolve the problems discussed foresaid. We gave following suggestions to enhance the scanning efficiency of the HWP section: The tag should be placed at the places where there is minimum friction. Faulted products should be sent for retagging. The products with zero mrp problem & INF problems must be coordinated to the merchandiser. 56

ERRORS FOUND DURING SCANNING

BY A B3 -8 B3 -8 B4 -8 B5 -8 B5 -8 B5 -8 B5 -8 B5 -8 B5 -8 B5 -8 B5 -8 B5 -8 B6 -8 B6 -8 B6 -8 B6 -8 B6 -8 B6 -8 B6 -8 B6 -8 B7 -8 B7 -8 B7 -8 B8 -8 B8 -8

S EFN . HL O

DS R T N E C IP IO 4 G mnT mle( 5 ) lu a u b r 3 0 5 G mno d p n e lu a il is e s r 2 F r nys ( r loa a aaja) 3 Tiv tP in r e la 3A t hs a ir ig t mll 3 A t h md m ir ig t e iu 3 S o en p ilic n ip le 4 P sics o n la t p o 4 Z o -D n rs o n o m in e p o 4 Z o -D n rs o n o m in e p o 5 C lap s b t le1 lit ip lat ot ( /2 ) 5 C lap s b t le1 ) ip lat ot ( lit 2 P in es r 'n o r r c toe 'p u 2 A t h h r eiq e ir ig t emt u 3 P in e aea t h b t lemd m r c w r ir ig t ot ( e iu ) 3 P in e aea t h b t les a r c w r ir ig t ot ( mll) 3 P in e aea t h b t lemd m r c w r ir ig t ot ( e iu ) 3 P in e aea t h b t lelag ) r c w r ir ig t ot ( r e 4 B ole ot 4 Dn syp sic ae( r e y at lat w r lag ) 5 So e e hc na e t r fr s o t in r 5 R a lifea t h c na e el ir ig t o t in r 5 Dn syp sic ae( mll) y at lat w r s a 3 Se loc llo( 0 m t e e 5 0 l) 5 P alp tc na es e r e o t in r

QA T Y U N IT

A ll

A ll

E /B R O E N ACD 1 80 0901 2 947 307 1 80 0904 4 947 302 1 80 0640 7 945 746 1 9 93 70 1 --1 --1 85 5621 8 809 413 80 2403 6 935 020 1 5 17 77 1 5 17 77 2 1 241 11 5 1 1 240 11 5 1 884 252 0 3966 9 1 884 540 0 3991 1 3 1 884 580 0 3991 9 8 884 500 0 3991 3 1 --6 8 884 580 0 3992 8 1 --1 80 0129 1 945 870 1 884 555 0 3965 2 1 1 001 19 5 4 80 0121 4 945 884 80 0310 8 946 074 1 5 1 955 09 4

ACTIVACTION
57

Under activation we draft new activities which attract customer to spent time and money in store. Its objective is to increase footfall and average bill value through bill buster. The ultimate goal of any businesses is to increase its sales and income. Ideally we want to attract new customers to our products and encourage repeat purchases. Awareness plays very important role to increase sell, activation can work as catalyst in increasing the awareness among the customers. Activation makes easier to hold the customer for long duration as customer walk-in with their families with kids games such as jinga, cricket chess and exiting gifts which compel the customer to brose in the store which result in up selling. As malls are becoming the blistering places for companies to do their promotion and activities every week end some or the other going in malls which benefit not only the company but also the malls to increases the footfall in malls.As Spencers retail do activation on every week-end which increase the sell of Spencers garments section which was not making much revenue earlier. Education, health care, Banking sectors also doing activation in retail sector as they can get their target customer easily through less effort they valuable data base .Sponsoring big events is also part of activation.

58

In the above graph it shows how many times customers viisit the spencers in month every Times 5.60% of customer visit the store where as not visited customer are quite high27.20 %.This pecentage of customer can decreased through activation part .Such as Through awreness which spread through leafelet.Ossasionaly type customer can be Increased by giving them some execting offers .Week end activation can drive once and twice type customers to the store.In 60

59

days eight activites were organised every week ends activties like jinga; cricket ;Chess; spoon race ; quize competation and The glow beauti center activity were also Organised which lead the customer to spent more time in store and wining the existing Gifts and purchase the first activity increased the footfall and sell of the garments section At high phase.The activity which organised by glow given them strong data base and potionsal clientele the gifts were given by them huge number of customer participted with execement and thirl which increased the spencers hyper footfall. Kids drawing competation were also organised in which participted gifts were sponcered by the companies. huge number of kids

60

PHOTO GALLERY OF ACTIVATION

61

LIMITATIONS
Limited access to the data of the section. Due to excess crowd on weekends we were unable to use the scanner for scanning the products. Representing Spencers was mammoth responsibility. There was too much physical stress on us at weekends. Companies marketing heads were very specific about sharing their information.

62

SUGGESTIONS
Various other options available in order to enhance the scanning efficiency are as follows: + Festival oriented targeting: Organizing some special events at some strategic locations such as Holi, Diwali, Christmas New-year. + On ground activity: Organizing some kind of games , Source of publicity, Source of free advertisement. + Distributing freebies such as Pens, key chains, etc written Spencers over it on special occasions. It will help in brand recall which in turn will help in creating goodwill.

Advertising should be done at the strategic locations in the markets through Banners and posters. Hardly have we seen any banner of Spencers other than in malls or where Spencers is present.

Tie ups with Multi-Plexes Spencers should have promotional scheme card distributed inside multiplexes so that people know about the Spencers offers .

Organizing Baby competition around housings and kids competitions in schools with Freebies having Spencers logo.

Miscellaneous Kids Pictures: Making a medium side board with a face of small child, asking parents to bring pictures of their kids & pasting the pictures on the board. This 63

campaign can be run for a period of 20-25 days. The above suggestions are given keeping in view customers of all age group. Spencer need to improve its fourth class employees services behavior which putting bad Impact on its goodwillSelling of spaces not the big deal for Spencers if they increase their footfall when Companies watch huge number of footfall they will choose Spencers for their promotion Activities.

64

CONCLUSION

As retail sector is booming, We live in a word with too many stores and we are Witnessing a dramatic thining of the retail herd by the dual forces of a changin Consumer and a sluning global economy. When times are good retail brand might Get along by emulating others. Coping everything from their visual look and Feel and real estate strategy .However when times get tough its the great Retail brand that win the ones that innovate, understand the DNA of their brands and Connect with their customer. As per learning about Alliances and activation in 60 days it is profit maker for a retail Store it helps in increasing the revenue and foot fall building relationship with other Brands and giving them lead to showcase their elements inside the store. It also Help the company in increasing the awareness about the store and its products.

65

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
Spencers have good brand awareness among the consumers. Spencers in FMCG sector. Spencers retail specialist marketing expertise.

Weaknesses
The consumers are not much satisfied of the offers introduced by Spencers. Big Bazaar has better product range than Spencers. Big Bazaar has better promotional schemes than Spencers. 66

Opportunities

To become better in the business of garments. To be accepted by the consumers in comparison to other retail stores. To develop better marketing strategy than retail outlets.

Threats

Big Bazaar & Vishal Mega Mart are huge threats to Spencers. Big Bazaar have greater acceptance among the consumers in comparison to Spencers.

67

ANNEXURE

QUESTIONNAIRE PERSONAL DETAILS Name: Address: Gender: Phone Number: Marital status: Education: Profession:

68

1. What kind of problems are you facing at the cash till? a) Mrp Zero b) No Tag c) Dual Mrp d) INF

69

INTERPRETATION:
In this above mentioned pie-chart it is illustrated that the major scanning errors come due to No tags then it is followed by INF ( Item not found ) problem, after that the third major problem was of Zero Mrp problem and last but not the least is Dual Mrp problem in which a product shows dual Mrp which creates a lot of problem at the cash till.

2. Which section has the maximum number of scanning problems with their products? a) HWPFL b) FMCG c) ENE d) Garments 70

INTERPRETATION:
In the above mentioned pie-chart, it is illustrated that HWPFL (45%) is the section which has got the maximum problems regarding scanning which is followed by the Garments (30%) section. After that comes FMCG ( 15%) which has a comparatively less amount of defected products who are returned form the cash till, it brings embarrassment to the Hyper as a whole and the at last comes the ENE (10%) which has the minimum problem regarding Scanning.

3. What is the present Scanning efficiency of the HWP section?

a) 80% b) 85% 71

c) 90% d) 95%

INTERPRETATION:
In the above mentioned pie-chart, it is shown here that what is the percentage of scanning efficiency of the HWP section according to the CSAs at the Cash till. 15% of them think that scanning efficiency is 95%. 25% of them think that scanning efficiency is 90%. 40% of them think that scanning efficiency is 85%. 20% of them think that scanning efficiency is 80%.

4. What is the percentage of products who show INF problem? 72

a) 25-30 b) 30-35 c) 35-40 d) 40-45

INTERPRETATION:
In the above shown pie-chart it is depicted that maximum ( 35%) CSAs think that INF products are almost between the range of 30-35. The minimum (15%) CSAs think that the products showing INF problem are in the range of 40-45.

5. What is the percentage of products who show NO TAG problem? 73

a) 25-30 b) 30-35 c) 35-40 d) 40-45

INTERPRETATION:
In the above shown pie-chart it is depicted that maximum (35%) CSAs think that NO TAG products are almost between the ranges of 30-35. The minimum (15%) CSAs think that the products showing NO TAG problem are in the range of 40-45.

74

6. What is the percentage of products that show DUAL MRP problem? a) 5-10 b) 10-15 c) 15-20 d) 20-25

INTERPRETATION:
In the above shown pie-chart it is depicted that maximum (40%) CSAs think that DUAL MRP products are almost between the ranges of 10-15. The minimum (15%) CSAs think that the products showing DUAL MRP problem are in the range of15-20 and 20-25.

75

7. What is the percentage of products that show ZERO MRP problem?

a) 5-10 b) 10-15 c) 15-20 d) 20-25

INTERPRETATION:
In the above shown pie-chart it is depicted that maximum (40%) CSAs think that ZERO MRP products are almost between the ranges of 20-25.

76

The minimum (15%) CSAs think that the products showing ZERO MRP problem are in the range of 5-10and 10-15.

8. What is the customers reaction about this kind of problem? a) b) c) d) Leave that product Leave all the products of that section Cancel all purchases Buy it from other place

INTERPRETAION:
In the above pie-chart it is illustrated that majority of the customers when against this kind of situation cancel all purchases from that particular store. Some of them also purchase it from somewhere else, while some just leave that product and continue their purchase. 77

9.

What is the impact on companys brand image?

a) Bad brand image b) Not any impact c) Decrease competitiveness d) Loss in customer loyalty

78

INTERPRETATION:
In the above pie-chart it is illustrated that there will be a greater impact on brand image which will be bad, and there will be a minimum loss in customer loyalty due to this problem.

10.

What will be the impact on customer loyalty due to this problem?

a) No impact b) Minimum impact c) Bad impact d) Loose customer

79

INTERPRETATION:
In the above pie-chart, it is illustrated that there will a bad impact on customers loyalty which is maximum ( 59%) and there is a very less possibility that there will be no impact.

80

SURVEY ON SPNCERS RETAIL

What is the thought of people about Spencers retail? 1. Have you heard of Spencers?

Yes No

93% 7%

81

2.

Have you visited Lucknow city Spencers earlier?

Yes No

90% 10%

3. Visited Lucknow Spencers once, twice or more? Once 12%

82

Twice More than Twice

19% 69%

4. Peoples not visited to local retail stores?

Local shops Big Bazaar Any other stores

10 % 20 % 70 %

83

5. Spencers products range available to customers?

Spencers Big Bazaar Vishal Mega Mart Others

3% 5% 15% 77%

6. Spencers in FMCG?

Spencers Big Bazaar Vishal Mega Mart

67% 25% 8%

84

7. Spencers in garments?

Yes No

8% 92 %

85

8. Spencers in F & V?

Yes No

22 % 78 %

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

BIBLIOGRAPHY:-

Authors Name Kothari, C.R. Brown, F.E.

Book Name Research MethodologyMethods and Techniques Marketing Research, a structure for decision

Place of Publication Year Wiley Eastern Ltd., New Delhi Addison-Wesley Eastern Ltd.

Dunn Online Jean and Virginai A Clarck Hooda, R.P. Green Pant E and Donald S. Tull Philip Kotler. Shenoy, GVS et al.

making Applied Statistics Statistics for Business and Economics Research for Marketing Decisions Marketing Management Quantitative Techniques for Managerial Decision Making

John Wiley and Sons Macmillan India, New Delhi Wiley Eastern, New Delhi Prentice Publishing Co., New Delhi. Wiles Eastern New Delhi

Websites
www.Spencersretail.com www.rpggroup.com www.scribt.com 105

Magazines India today. Business world. Business india. Material profile of company. Surey. Search engines. www.google.com www.search.com www.yahoo.com

106

You might also like