2. A REPORT
ON
MARKETING RESEARCH
AND
NEW BUSINESS DEVELOPMENT
By
Afzal Ishtiaq Usmani
(13BSPHH010027)
(A report submitted in partial fulfillment of the requirements
of MBA Program of IBS Hyderabad)
Undertaken at
(Spencer’s Retail Limited)
Submitted to
Prof. Praveen Srivastava Mr Rakshan Ali Khan
Faculty Guide Company Guide
IBS Hyderabad (Regional Marketing Manager, U.P east)
Date of submission :-
3. Authorisation
This project was undertaken at Spencer’s Retail Limited , Lucknow
from Februaury 24, 2014 to May 23, 2014 as an Assignment for
Summer Internship Project in marketing for partial fulfillment of the
MBA Program at IBS, Hyderabad.
Date: 23/05/2014
4. Acknowledgement
I take immense pleasure in thanking Spencer’s Retail Limited for allowing me to pursue this
project in its esteemed organization.
I wish to express my deep sense of gratitude to Mr. Rakshan Ali Khan who had been a source
of inspiration in this project. It is a great pleasure for me to acknowledge him for his assistance,
contributions and valuable suggestions during the development of this project
I would also like to thank Mr. Sanjay Das, who has been a torch bearer for me in the company
and helped us know different concepts of retail industry.
I would also like to thank Mr.Ravi who has helped us a lot in understanding about the new
business development policies and in confirmation of properties for stores.
I would like to extend my gratitude to my faculty guide, Mr. Praveen srivastava , for his
guidance in this project and for taking the initiative of inviting Spencer’s Retail Limited to IBS
for summer placements. He has also guided me by giving his valuable feedback from time to
time.
Words are inadequate in offering my thanks to the entire team at Spencer’s Retail Limited,
who helped me with all the issues I faced during the Summer Internship at the company and
providing me with a very conducive environment to carry out the project. Without their
guidance and support, I would have never got a chance to gain a real life experience of working
with such a reputed company.
My special thanks also to Mr. Vikas ( marketing manager, FUN Hyper ) who also helped me a
lot in doing my project as well as for motivating me always when ever needed
Last but not least, I express my heartiest gratitude to Almighty god, my mother for her love
and blessings to complete the project successfully.
23/05/2014 Afzal Ishtiaq Usmani
5. Table of contents
i. Authorisation………………………………………………..i
ii. Acknowledgementi………………………………………….ii
iii. Executive Summary………………………………………. iii
iv. List Of Tables………………………………………………iv
v. Introduction To Retail Industry…………………………..1-2
vi. Overview Of The Company………………………………..3
Company Profile…………………………………………..4-5
Different Spencer Stores………………………………….6-10
vi. Research Methodology………………………………………11
vii.Conducting Market Survey…………………………………12-17
viii. Catchment Study…………………………………………..18-22
ix. Competitor Analysis…………………………………………23-25
x. STP And Lifecycle Of Spencer’s…………………………… 26
xi.Porter’s 5 Force Model………………………………………27-31
xii. SWOT Analysis……………………………………………...32
xiii. PESTLE Model…………………………………………… 33-36
xiv. Marketing Mix…………………………………………….. 37-38
xv. Positioning………………………………………………….. 39
xvi. Organization And Customer Value…………………………40
xvii. Annexures 1-7 ………………………………………………41-77
xviii. References………………………………………………….78
xix. Student feedback form……………………………………..79
6. LIST OF TABLES
1. Age Distribution
2. Employement Details
3. Salary
4. Area Of Arrival
5. Awareness Of Promotions
6. Rating
7.First Visit
8. Future Shopping
9. Suggesting Others
10. Pop Visibility
11.Medium Of Awareness
12. Newspaper Read
13. Analysis Of 5 Forces With Spencer’s
14.SWOT Analysis
7. Executive summary
The internship carried out at spencer’s helped us to learn about the retail industry mainly the organized sector. It
helped us get to the roots of Spencer’s and know it from the nutshell. We went through several projects throught
the programme.
Market survey helped us know about the mindset of people visiting spencer’s , their awareness about the
promotional offers and also helped the company in knowing which medium they can use in order to reach
maximum potential buyers. It also helped me analyse how age, salary, type of employement and distance of
residence from the store effects the buying behavior and also helped me make a pattern through which we can
calculate which person will visit us or not.
We also went through catchment study which helped me analyse different markets feasible for opening a new
store. It also helped me learn the different costs involved in opening a new retail store and how we should plan
in order to reach early breakeven . It also made me understand that catchment is a necessary tool for retail
industry.
We also did a competitive analysis on big bazaar which helped me to differentiate between prices of similar
goods . It thus provided me a platform to understand whether big bazaar’s guirella strategy is really affecting
spencer’s or not
We also tried to map different concepts of marketing with the real world scenario at Spencer’s like
understanding their STP , lifecycle, 5 forces of porter, PESTLE model, doing it SWOT analysis and finding out
its marketing mix .
8. INTRODUCTION TO RETAIL INDUSTRY
“Retailing includes all activities that are involved in selling goods and services directly to final customers for
their personal, non business use.”
After 50 years of unorganized retailing and fragmented kirana stores, the Indian retail industry has finally
begun to move towards modernaization, systemization and consolidation. Today,modernization is the catch
phrase and the key to understanding retail in the next decade. Traditionally retailers have had localized
operations. This localized nature of industry is changing as retailers face lower growth rates and threathened
profitability in home markets. New geographies help them sustain top line growth in addition to enabling
global sourcing and encashing on global advantages of getting the best product at optimum prices. There has
been a boom in retail trade in india owing to a gradual increase in the disposable incomes of the middle class
households. More and more players are entering the retail business in india to introduce new formats and
even changing the traditional retail stores
.
Types of retailing
1. Speciality stores:- carry a narrow product line with a deep assortment such as apparel store, furniture
stores etc.
2. Department stores :- carry several product lines- typically clothing, home furnishing and household
goods with each line operated as a separate department managed by specialist buyers
3. Supermarkets :- a relatively large, low cost, low margin, high volume self-service operation designed
to serve the customer’s total need for grocery and household products
4. Convenience stores :- relatively small stores located near residential areas, open long hours and
carring limited line of high turnover convenience products at slighter lower costs
5. Discount stores :- carry standard merchandise sold at lower prices with lower margins and higher
volumes
6. Superstores :- very large stores traditionally aimed at meeting customer’s total needs.
7. Mom and pop stores –traditionally small family owned format
Amount of service offered:-
1. Self service retailers :- they serve the customers who are willing to perform their own “locate-
compare-select “ process to save time and money. It is a basis of all discount stores and is used by retailers
selling convenience goods and nationally branded fast moving shopping goods. Eg:- Spencer’s
2. Limited service retailers :- they provide more sale assistance because they carry more shopping
goods about which customers need information.their increased operationg cost result in high prices. Eg:-
shoppers stop
3. Full service retailers :-they are high end speciality stores and first class departmental stores where
sales people assist customers in every phase of shopping. They carry more of speciality goods for which
customers want more assistance.
Major types of retail organizations :-
1. Corporate chain stores :- two or more outlets that are commonly owned and controlled.
2. Voluntary chain :- wholesaler sponsored group of independent retailers engaged in group buying and
merchandizing
9. 3. Retailer cooperative :- group of independent retailers who set up a central buying organization and
conduct joint promotion efforts
4. Franchise organization :- contractual association between a franchiser and franchisees . these are
based on some unique products or service, on a method of doing business or on a trade name, goodwill or
patent.
5. Merchandizing conglomerate :- a free-form corporation that combines serval diversified
retailing lines and forms under central ownership, along with some integration of their distribution and
management functions.
Change in consumer behavior and growth of retail industry
The whole concept of shopping has altered in terms of format and customer buying behavior ushering in a
revolution in shopping in india. Rising income levels, falling real estate cost and a greater exposure to media
and international trends have fuelled retail growth. Consumer spending in india is estimated to have grown at
an average rate of 11.5% per year over the past decade. While retailers have improved their offerings, many
attribute their better fortunes to a change in consumer behavior.
10. Overview of the Company
Spencer's Retail Limited
Type Subsidiary
Industry Retail
Founded 1920
Headquarters Kolkotta, West Bengal,
India
Employees 80,000+
Parent RPG Group
Website spencersretail.com
11. COMPANY PROFILE
Overview of RPG Group
RPG Enterprises, established in 1979, is one of India’s 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 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
RPG’s business ethics promote higher levels of excellence. The group’s 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
Goenka’s acquire two British trading houses - Duncan Brothers and Octavius Steel. After successful
12. 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 Goenka’s sons Harsh (Chairman) and Sanjeev (Vice-Chairman) spearhead the group’s management from
1990.
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 Spencer’s 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
Formats of Spencer’s outlets
Spencer’s has retail footage over 2 million square feet and over 400 Spencer’s stores in 65 cities.
The Company operates through the following formats:
1. Spencer’s 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. Spencer’s super: One of the largest supermarket chains in the food and grocery segment in
India.
3. Spencer’s Daily: Small format stores conveniently located with a range of products to meet daily
household needs.
4. Spencer’s express: Food and grocery store next door.
13. Spencer’s Daily
Fresh Fruit Stall Market stall Manton Market
The Spencer’s Daily store is a friendly neighborhood store, which caters to the entire daily shopping needs-
from regular groceries to fresh food and also weekly top-up shopping.
It is about 4000-7000 sq ft in size and with a bright and friendly atmosphere; Spencer’s Daily saves the hassle
of bargaining with the local kirana shop owners (because it offers the lowest possible prices).
Spencer’s Express
Spencer’s Express is a store next door for the fresh needs at arm’s length.
These stores are around 1000 sq ft in size. They are open from 7 am to 9 pm and also provides with home
delivery.
14. The Express stores stock dairy, fruit and vegetables, bread and bread products, cut vegetables/ready to cook,
fruit juice, fresh batter, fresh coffee/tea, fresh masalas, fresh pickles, fresh Ghee, fresh Fish and meat.
Spencer’s Fresh
Spencer’s fresh stores provide with an enjoyable and convenient shopping environment in very own
neighborhood. These 2000 sq ft. air conditioned stores are well stocked with Fresh food of very best quality,
such as fresh farm produce, vegetables, fruit, milk, eggs, breads and much more. With an impressive range and
a clean, bright and hygienic ambience, Spencer’s Fresh is far better the regular sabzi mandis or local vegetables
markets and at Spencer’s.
Fresh consumers not only do get fresh, clean and tasty farm produce but also the lowest possible prices in the
locality, yes even lower than sabziwala!
Spencer’s Super
15. The Spencer’s Super is the place to go for the monthly shopping.
About 8000-15000 sq ft. in size, the Spencer’s Super not only caters to the daily needs but also stocks
home care products; personal care products, Bakery, Chilled and frozen food; Baby care besides groceries
& staples, Fresh fruits and vegetables
Spencer’s Hyper
The Spencer’s Hypermarkets are huge destination stores, more than 25,000 sq ft. in trading area. Shoppers
come here looking for fantastic deals across all categories. 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.
16. CLASSIFICATION OF HYPER
BACKGROUND:-
India’s first modern format hypermarket was opened by Spencer’s 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 Spencer’s hypermarkets,
located across the country, are open throughout the day, seven days a week, 365 days a year.
Spencer’s already employ over 9000 employees across 60 cities. Roughly 1/3rd
of the team are women.
Spencer’s began its operations in India way back in 1863 and since then has remained a part of the lives of
Indian consumers. 145 years later, the Spencer’s name still evokes special memory of authentic quality at
affordable prices.
Currently, RPG’s Retail activity comprises Spencer’s Retail, RPG Cellucom, Books & Beyond and
MusicWorld. RPG’s total retail outlets are more than …… The total area of all Spencer’s stores across the
country is over ….. sq.ft. Spencer’s currently has a national consumer base of over 48 million people, who
walk into the store every year.
DIVISION
OF HYPER
HWPFL
Home, Work,
Play,
Furniture,
Linen.
GARMENTS
SECTION
Deals with
Apparels.
ENE
Electrical N
Electronic.
F & V
Fruits &
Vegetables.
STAPLES
Deals with
Grocery
items.
FMCG
Food & Non-
Food
17. 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, masalas, pickles, Ghee, Fish and
meat.
1000
Spencer’s Fresh vegetables, fruit, milk, eggs, breads 2000
Spencer’s daily regular groceries 4000-7000
Spencer’s Super home care products; personal care products,
Bakery, Chilled and frozen food; Baby care
products
8000-15000
Spencer’s Hyper Miscellaneous More than 25000
18. 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 Learner’s 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.”
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.
RESEARCH METHODOLOGY APPLIED
We have used anova both one way and factorial design to understand various factors that are affecting a single
process or behavior. We have also implemented discriminant analysis to understand the pattern of buying and to
know whether a customer in future will buy from our shop or not. The calculations of these have been done at
the last of the report
19. Conducting Market Survey
The first assignment being allotted was to conduct a market survey in form of interviews by talking to
customers while they are shopping and also on exit to know their mindset of Spencer’s when compared to
other retail chains and also to know if they are aware of promotions at Spencer’s .this was also done to do the
following things:-
I. To create a database of customers visiting spencers
II. To know their area of residence and their salary division
III. To Check whether they are aware of promotions or not
IV. To check their satisfaction when compared to other retail stores and also their understanding of various
pop’s
V. To know about the number of new customers at spener’s
VI. To find out which medium they use to know about promotions and also to know which is the maximum
newspaper being read
Survey was conducted for a duration of approx. 3 weaks with sample size of around 940 people and the
target person was anyone who visited the store on the date of interview.
Findings of the survey
1.Age Distirbution
2. Employement Details
Age level
Total
number %
18-25 years 147 15.65495
26-35 years 308 32.80085
36-45 years 437 46.53887
46 and above 45 4.792332
Table 1
Type
Total
number %
Employed 492 52.39617
self employed 140 14.90948
Others 304 32.37487
Table 2
20. 3. Salary
4. Area Of Arrival
5. Awareness Of
Promotion
6. Rating
Range
Tototal
number %
10k-20k 65 6.922258
20k-30k 427 45.47391
30k-50k 348 37.0607
50 k and above 93 9.904153
Table 3
Range
To total
number %
1-2 km 45 4.792332
2-3 km 145 15.44196
3-5 km 346 36.84771
5 km and above 364 38.76464
Others 28 2.981896
Table 3
Tot total
number %
Yes 204 21.72524
No 735 78.27476
Table 4
Rating Tottotal number %
Poor 26 2.768903
Average 681 72.52396
Good 218 23.21619
Excellent 13 1.384452
Table 5
21. 7. First Visit
8. Future Shopping
9. Suggesting Others
10. Pop Visibility
first visit
Tottotal
number %
No 823 87.64643
Yes 116 12.35357
Table 6
Future
Tottotal
number %
Yes 915 97.44409
No 24 2.555911
Table 7
Suggest
Tot total
number %
Yes 550 58.57295
No 389 41.42705
Table 8
Display To total number %
Yes 868 92.43876
No 71 7.561235
Table 9
22. 11. Medium Of Awareness
12. Newspaper Read
Conclusions/Recommendations from exit interview
1. Maximum people visiting the stores are in between the age group of 36 and 45 years and hence more
concentration should be given to the goods consumed by this age group
Age group of 26-35 years are also visiting stores in a good number thus good such as clothings beauty items
should be increased to encourage them for shopping
2. Most customers of spencer’s are employed hence more offers should be provided on weekends to
increase the footfall and also the shopping
Others mainly consists of housewifes, not working people and students, thus grocery which is strong point for
spencer’s should be worked on if targeting this segment
3. Main portion of customer’s coming are in range of earnings between 20k and 30k followed by people in
Medium
Tot total
number %
Newspaper 691 73.58892
Sms 10 1.064963
Outdoor 85 9.052183
Wom 99 10.54313
tv/radio 52 5.537806
Leaflets 2 0.212993
Table 10
Tott total
number %
times of india 418 44.51544
dainik jagran 209 22.25772
amar ujala 42 4.472843
Hindustan 258 27.47604
i-next 3 0.319489
Others 7 0.745474
Table 11
23. between 30k and 50k thus cheaper products which are more durable and available at less cost should be
brought in to make the customers buy more
4. Mainly the footfall is from a range of 5km and above which include areas like munshipulia, vikas nagar,
eldeco, ashiana, rajajipuram, naka hindola, alambagh with major chunks coming from ashiana and rajajipuram
and hence more focus needs to be given to this.
The other area which has the major footfall is gomtinagar, bhootnath, hazratganj, aminabad, cantt area
(3-5km)
People from nearby are visiting less and hence more concentration needs to be given to them to make
them aware of promotions and offers of Spencer’s
5. Majority of people being interviewed were unaware about the promotions and offers running at Spencer’s
and thus proper awareness programs should be created so that people can get to know about offers. This can be
done through mobile vans, leaflet distributions and mainly through newspaper insertion as we came to know
that maximum people know about promotions through newspapers
6. When people were asked to rate spencer’s when compared to other retail stores majority felt that it is
average or at par with other stores with only POD being the fresh vegetables being offered. Some even said the
offers here are far less that Big Bazaar and the products being sold are costly as compared to them. Moreover
some said that goods they require are not easily available here and hence they have to visit BB to buy those.
Some even said that apparel section is lacking the collection it should have atleast at the time of festivals
7. Maximum customers at Spencer’s were found out to be the regular customers who come here for monthly
shopping and for their requirements for vegetables and other goods. Few of them were those who were just
visiting the town and because they don’t have spencer’s at their place they were visiting the store. Some said
that they have just come for window shopping and were having no intention to buy because of less offers and
high prices
8. People though were not much satisfied with Spencer’s and gave it average rating said they will defiantely
visit again to see if there are new offers.
When asked about referring others they said they will do if asked for it and will suggest people to come
for grocery and vegetables at Spencer’s. others were of the opinion that people are aware through social sites
and other mediums and do not require referring to come for shopping
9. Most of the customers visiting the stores said they had no issue in figuring out the offers and were easily
able to shop although some said they had slight confusion regarding terms and conditions of the offerings.
Moreover they said that instore promotions lacks a lot because they are not clearly audible and not clear in
their pronounciations. They also said that sound quality at spencer’s is not good for knowing in-store
promotions.
10. Awareness of promotions among people is mainly created with the help of newspapers in which times of
india has the widest reach followed by hindustan and dainik jagran. Thus promotional activities through TOI
and HT should be increased to gain more footfall.
Moreover word of mouth and outdoors also contribute a healthy number in the number of customers
arriving here.
Leaflets were found to lack the effectiveness and hence more concern should be given to this whether
through home to home distribution or in-mall distribution of forms
11. Footfall has increased by 1542 when compared to last year in the very same days
24. NoB has increased by 2293 in the same duration
Conversion grouwth has been 4.54% with sales increment of Rs 43,01,343 which implies a 36.24%
increment in sales volume when compared to last year thus showing a substantial growth .
Suggestions
1. Proper awareness programs needs to be designed to make people aware of the offers even before they visit
the store
2 In-store promotions needs to be amended to provide clearence to customers about the ongoing offers
3. Better offers should be designed which can change the perception of customers as Spencer’s being a retail
chain basically focussing only on high and upper middle class of the society
4. More interactive programs needs to be initiated which can increase the footfall as the footfall difference is
very less when compared to last year
5. More advertisements should be provided to TOI and HT as they have the widest reach
6. Local products can also be included in the shelf to increase the sale and also increase the mass reach
7. Apparel section needs a major concentration as products of good quality are out of stock and that too in the
festival season.
8. In mall promotions and awareness camps can also be arranged where a general issue can be discussed under
the name of Spencer;s
( Feedback Form, Pie Charts And SAS Calculations Are There In ANNEXURE
1,2 AND 3 )
25. CATCHMENT STUDY
Catchment analysis is originally a study to identify an ideal location for establishment of a new retail outlet
but it can be helpful to identify potential customer base in any geographical area for existing retail outlets.
This study includes study about various geo-demographic factors like occupation, mother tongue,
education standard etc. and help in understanding customer preferences, accessibility in buying, purchase
intentions buying patterns and likelihood of buying for the group of products that the retailer deals with
and level of competition in that area.
The final outcome of catchment area analysis provides the retailer an idea about number of customers who
can visit the store and kind of products that will be in demand and the stock he need to maintain in order to
meet the demand in selected location. Importance of catchment can be seen in the point that if all retail
companies are offering same products and services within same price range and quality standards than we
can easily say that the population within the catchment will do all its purchasing at the nearest centre.
However in practicality it‟s not possible that different retail companies are same and people have to travel
to their preferred destination for purchasing instead of their nearest one.
Differences between similar stores can affect the spending pattern in the present time, but it is important
to see how changes in various demographic factors and infrastructure development in competing locations
will have impact on such store in future.
Catchment analysis pre-launch will ideally decide the product mix and formats of the stores, catchment
analysis done from time to time will give information about what is happening and where to concentrate
marketing energies to get more walk-ins.
The total catchment area, of a store is useful information to decide a store location and post store opening
marketing energies focus. The catchment analysis is usually done to study the profile of consumers likely to
visit in terms of income profile, current shopping destinations and the likely visit to the new store, which
further can be helpful for business predictions and also useful in the " yes " or " no " decision.
Generally it can be considered that major retailers like department stores, furniture warehouses will be
destination sites. These sites can attract people from greater distances because the items are not common
purchases, are expensive or provide the opportunity where a number of purchases can be made from the
one location.
For these destination sites it is possible for consumers to travel more distance. Similarly a small
neighborhood store, or a small departmental store, would have a catchment near very small area which can
be no more than 1 or two kilometer distance. For retailers that offer the same or very similar products as
their competitors are offering, unless there is very strong pricing differences a customer may not be
prepared to travel pass the competition, he or she may select the nearest destination.
26. Catchment analysis is useful like any other market research in showing retailers the opportunity and the
direction to be taken.
Factors that influence consumers' decisions on where to shop include:
1. Presence of various retailers·
2. Volume, quality and product mix of retail offerings·
3. Additional services and facilities·
4. Leisure provision·
5.Accessibility·
6.Parking·
7.Shopping Environment and ambience
Catchment Analysis is important due to following factors:·
1. Prime consideration of customer‟s store choice, based on nearness to home/work, linked with other
domestic work·
2.Strategic importance for sustainable competitive advantage.
3.Merchandise, price, assortments can be changed but not location of a store.
4.Competitors can‟t easily copy as they are precluded from locating there.·
5.Entry of more and more companies in organized retail making difficult to find suitable location within
budget.·
6.Forms an important P of place for a long time for adequate assurance for a success.·
7. It also influences the merchandise mix and interior layout of store.·
8. It provides information about establishment of warehouse for online retailers.
Besides demographic factors, economic and infrastructural, cultural and competitive environment
prevailing in catchment area also needs to be analyzed.
Following are the factors which are analyzed for catchment area analysis
.1. Land Area
2. Schools
3. Population
27. 4. Income Types
5. Age Distribution
6. Poverty Status
7. Household Size And Type
8. Departure Time For Work
9. Marital Status
10. Occupation
11. Family Size And Type
12. Working Women
13. Owner Occupied Housing
14. Fertility Rates
15. Rental Status
16. Vehicle Owners
17. Language Spoken
18. Telephone Subscribers
Above variables help location decision and also product line potential e.g. toys shop location for children,
economic factor i.e. unemployment will affect purchasing power in that area, per capita income data helps
in projecting demands for various merchandise. Economic stability of area can be estimated from
household incomes and expenditure patterns, buying power index and effective buying incomes are
calculated to arrive at fairly accurate analysis of catchment area.
The shape of organized retailing in India has undergone several changes over the last few years and a more
changes are expected in the near future. Retailers are making a push to get to the developments, which
have the first entrant advantage in a location, and are trying to get the best rental deals for longer time
periods. They understand that location and viable lease rentals are two very important ingredients for their
success. On the other hand, developers are rushing in to make sure that they are among the first entrants
in a catchment area with good retail potential as that strategy has spelt success in the past. Also, they are
keen to have the right tenant mix in their developments in order to attract repeat visits by clients.
Consumer is the ultimate reason for existing of any business. Companies can invest hugely in their projects,
but it‟s the customers who will give them return on their investments.There are lots of examples of such
failure where companies were not able to exactly know who their customers are. Since a company does not
know about their target customer profile its difficult or sometimes impossible to decide product offering,
28. pricing strategy and in that case promotional expenses will also be a waste if they don‟t know exactly to
whom they are communicating. Getting answer to this type of questions can be difficult but catchment area
analysis can be helpful in such kind of situations. A company can get good return on its employed resources
only if it knows its market in terms of customer profile and competition level.
In catchment area analysis, first part is area mapping of desired location and studies various geo-
demographic variables in that particular area.
Thus finding competitors location, potential customers and kind of flow between competitors and potential
customers. For this we need to quantify the sizes and potential of local market areas. With the help of
catchment area analysis, companies can know best location for establishment of their store, target and
potential customer base.
Type of catchment areaWith the help of catchment area analysis we can divide the total area into following
four kinds of catchment areas
1 Primary Catchment:-It is the nearest area around any retail store. As it will have maximum number
customer visiting store from this area. People in this area will be having demand for all kind of product
offering from specific retail store
.2 Secondary Catchment:-This area is little far away from primary area. Generally people from this
area will have less visits than primary area and will have less demand. As there can be other stores in their
neighborhood. It can be within 3 kilometer radius from the store.
3 Tertiary Catchment:-Tertiary area is more far away from the store, may be within 3 to 5 kilometer
radius. Retail store will have marginal number of customers from this area. Usually selected or some loyal
customers with specific demand will only visit the store.
4 Outer Catchment:-In this area companies don‟t have a kind of customer presence. People from
these are rarely or very less number of time visit the store.
This way, Catchment area analysis helps in scanning the environment and understanding the type of
consumers and their needs.
On the basis of these needs and the types or customers, the allocation of retailers, marketing activities are
carried out.
Conclusion
Retailing is becoming an important part of one‟s daily life. In present time a retail store provide solution to
all the needs and problem of everyone at one point. But this is not easy because deciding a location for
retail establishment to creating satisfied customer is a very long process, during this process various each
factor plays an important role. Ever increasing competition makes it difficult for established store to keep
29. their market share, for that reason established retail companies have to continuously scan their
environment to keep their market share safe and looking options for further growth and development. To
conclude, retail stores need to have a continuous look over its surrounding environment so as to take
advantage of available opportunities and being pro active to threats. And always trying to increase
customer walk-in and focus on long term relationship with customer, which finally result in customer
loyalty and profitability.
Catchment at Spencer’s
We did catchment about two locations and also studied a report of one location that helped us to
understand concept regarding opening of a new store.
The three places of catchment were :-
1. fun republic mall, gomti nagar (ANNEXURE 4 )
2. experia mall, near vibhuti khand (upcoming ) (ANNEXURE 5 )
3. mahanagar, near gold gym (ANNEXURE 6 )
It lead to understand the expected footfall which can be expected and various costs which are included in
the opening of a new store and also helped us understand the process of business development and the
time by which our stores will reach breakeven. This analysis is important as this help us know whether
opening a store in a particular location is profitable for us or not.
(Different Calculations Have Been Done And The Sheet Is Attached At The
Last Of The Report ANNEXURE 6 )
30. COMPETITOR ANALYSIS
Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of
current and potential competitors. This analysis provides both an offensive and defensive strategic context to
identify opportunities and threats. Profiling coalesces all of the relevant sources of competitor analysis into one
framework in the support of efficient and effective strategy formulation, implementation, monitoring and
adjustment.Competitor analysis is an essential component of corporate strategy.It is argued that most firms do
not conduct this type of analysis systematically enough. Instead, many enterprises operate on what is called
“informal impressions, conjectures, and intuition gained through the tidbits of information about competitors
every manager continually receives.” As a result, traditional environmental scanning places many firms at risk
of dangerous competitive blindspots due to a lack of robust competitor analysis.
Competitor profiling
The strategic rationale of competitor profiling is powerfully simple. Superior knowledge of rivals offers a
legitimate source of competitive advantage. The raw material of competitive advantage consists of offering
superior customer value in the firm’s chosen market. The definitive characteristic of customer value is the
adjective, superior. Customer value is defined relative to rival offerings making competitor knowledge an
intrinsic component of corporate strategy. Profiling facilitates this strategic objective in three important ways.
1. profiling can reveal strategic weaknesses in rivals that the firm may exploit.
2. the proactive stance of competitor profiling will allow the firm to anticipate the strategic response of their
rivals to the firm’s planned strategies, the strategies of other competing firms, and changes in the environment.
Third, this proactive knowledge will give the firms strategic agility.
Offensive strategy can be implemented more quickly in order to exploit opportunities and capitalize on
strengths. Similarly, defensive strategy can be employed more deftly in order to counter the threat of rival firms
from exploiting the firm’s own weaknesses.
Clearly, those firms practicing systematic and advanced competitor profiling have a significant advantage. As
such, a comprehensive profiling capability is rapidly becoming a core competence required for successful
competition. An appropriate analogy is to consider this advantage as akin to having a good idea of the next
move that your opponent in a chess match will make. By staying one move ahead, checkmate is one step closer.
Indeed, as in chess, a good offense is the best defense in the game of business as well.
A common technique is to create detailed profiles on each of your major competitors.
These profiles give an in-depth description of the competitor's background, finances, products, markets,
facilities, personnel, and strategies.
This involves:
1. Background
i. location of offices, plants, and online presences
ii. history - key personalities, dates, events, and trends
iii. ownership, corporate governance, and organizational structure
2. Financials
i. P-E ratios, dividend policy, and profitability
ii. various financial ratios, liquidity, and cash flow
iii. profit growth profile; method of growth (organic or acquisitive)
3. Products
i. products offered, depth and breadth ofproduct line, and product portfolio balance
ii. new products developed, new product success rate, and R&D strengths
iii. brands, strength of brand portfolio, brand loyalty and brand awareness
31. iv. patents and licenses
v. quality control conformance
vi. reverse engineering or deformulation
4. Marketing
i. segments served, market shares, customer base, growth rate, and customer loyalty
ii. promotional mix, promotional budgets, advertising themes, ad agency used, sales force success
rate, online promotional strategies
iii. distribution channels used (direct & indirect), exclusivity agreements, alliances, and
geographical coverage
iv. pricing, discounts, and allowances
5. Facilities
i. Plant capacity, capacity utilization rate, age of plant, plant efficiency, capital investment
ii. location, shipping logistics, and product mix by plant
6. Personnel
i. number of employees, key employees, and skill sets
ii. strength of management, and management style
iii. compensation, benefits, and employee morale & retention rates
7. Corporate and marketing strategies
i. objectives, mission statement, growth plans, acquisitions, and divestitures
Media scanning
Scanning competitor's ads can reveal much about what that competitor believes about marketing and their target
market. Changes in a competitor's advertising message can reveal new product offerings, new production
processes, a new branding strategy, a new positioning strategy, a new segmentation strategy, line extensions and
contractions, problems with previous positions, insights from recent marketing or product research, a
new strategic direction, a new source of sustainable competitive advantage, or value migrations within the
industry. It might also indicate a new pricing strategy such aspenetration, price discrimination, price
skimming, product bundling, joint product pricing, discounts, or loss leaders.
It may also indicate a new promotion strategy such as push, pull, balanced, short term sales generation, long
term image creation, informational, comparative, affective, reminder, new creative objectives, new unique
selling proposition, new creative concepts, appeals, tone, and themes, or a new advertising agency. It might also
indicate a new distribution strategy, new distribution partners, more extensive distribution, more intensive
distribution, a change in geographical focus, or exclusive distribution. Similar techniques can be used by
observing a competitor's search engine optimizationtargets and practices
For example, by conducting keyword research, one may be able to determine a competitor's target market,
keywords, or products. Other metrics allow for detection of a competitor's success.
Little of this intelligence is definitive: additional information is needed before conclusions should be drawn.A
competitor's media strategy reveals budget allocation, segmentation and targeting strategy, and selectivity
and focusFrom a tactical perspective, it can also be used to help a manager implement his own media plan. By
knowing the competitor's media buy, media selection, frequency, reach, continuity, schedules, and flights, the
manager can arrange his own media plan so that they do not coincide.Other sources of corporate intelligence
include trade shows, patent filings, mutual customers, annual reports, and trade associations. Some firms hire
competitor intelligence professionals to obtain this information. TheSociety of Competitive Intelligence
Professionals maintains a listing of individuals who provide these services
32. Benchmarking at Spencer’s
We visited the big bazaar saharaganj on 3rd
may on the day when bb was offering under the name of “public
sale” and noted down the prices of various key products at offer in Big bazaar and then compared them with our
products and offerings on the same days to know the difference between the prices . This helped us in knowing
the offers in which we outperformed big bazaar and the others on which we needed to improve upon. This thus
in one or the other way helped us to make offers when we went on with our promotional activity under the
banner of “zyada ka fayda “ from 9th
may-11th
may. (Sheet is attached in ANNEXURE 7)
33. STP of Spencer’s
Segmentation :-Discerning young customers looking for a range of quality products that let them
participate in a global lifestyle
Targeting:- Upper-middle and upper class individuals
Positioning :- Delighting shoppers with the best products and services that enable a fine living at
reasonable prices while providing them with a warm, friendly and knowledgeable retail environment.
Usp :- Create memorable 360° shopping experiences for consumers with a premium, high-street touch
Tagline :- “Makes Fine Living Affordable “
LIFECYCLE OF SPENCER’S
34. Michael Porter’s 5 Force Model And Its
Applicability With Indian Retail Industry
Michael Porter (1980) considers that rivalry (competition) on the market is result of the five variables or main
forces: rivalry level, bargaining power of customers and that of suppliers, the threat of new entrants and of
substitute products.
These variables are interconnected. They are illustrated in the matrix of the five competitive forces of
Porter.
The Five Forces model of Porter is an outside-in business unit strategy tool that is used to make an analysis of
the attractiveness (value...) of an industry structure. It captures the key elements of industry competition.
These forces are used in several industrial sectors. Like Retails, Telecom, Airline, Pharma etc.
Figure 1
35. Figure 2
1.Threat of New Entrants.
One trend that started over a decade ago has been a decreasing number of independent retailers.
Walk through any mall and you'll notice that a majority of them are chain stores.
While the barriers to start up a store are not impossible to overcome, the ability to establish favorable supply
contracts, leases and be competitive is becoming virtually impossible.
Their vertical structure and centralized buying gives chain stores a competitive advantage over independent
retailers.
2. Bargaining power of suppliers.
Historically, retailers have tried to exploit relationships with suppliers.
Bargaining power of buyers is moderate because of the size and concentration of major retailers.
To reduce power and you retain customers, retailers seek to differentiate products and create strong brands.
Individual private customers have a relatively low bargaining power in front of large retail chains, however,
their power is greater for small retailers, who are less organized.
A contract with a large retailer such as Spencers can make or break a small supplier. In the retail industry,
suppliers tend to have very little power.
36. 3.Power of Buyers.
Individually, customers have very little bargaining power with retail stores.
It is very difficult to bargain with the clerk at Safeway for a better price on grapes.
But as a whole, if customers demand high-quality products at bargain prices, it helps keep retailers honest.
4.Threat of substitute products.
The tendency in retail is not to specialize in one good or service, but to deal in a wide range of products and
services.
This means that what one store offers you will likely find at another store.
Retailers offering products that are unique have a distinct or absolute advantage over their competitors.
5. Competitive Rivalry
Is increased by equal size and power of dominant retailers who are pushing to increase market share.
The trend of extinction of small retailers through acquisitions, mergers alliances and high cost to exist this
market.
Among leading group there are More, Reliance store, Big bazar and Flipkart that are dominating the large
markets of retail sector in India.
37. Analysis about Spencer’s
5 forces An analysis
rivalry amongst the
competitor
• Reliance Retail, Aditya Birla Group , Vishal Retail’s, Bharti and
Walmart,, Big bazaar
Threats of entrants • FDI policy favorable for international players.
• Domestic conglomerates looking to start retail chains.
• International players looking to foray India.
bargaining power of suppliers
• The bargaining power of suppliers varies depending upon the target
segment.
• The unorganised sector has a dominant position.
• There are few players who have a slight edge over others on account of
being established players and enjoying brand distinction.
bargaining power of
Buyers
• Consumers are price sensitive..
• Availability of more choice.
threats of substitutes • Unorganized retail
Table 123
38. CONCLUSION:
1.The model of porter led to following conclusion about threat of new entrants, bargaining power of
suppliers, bargaining power of customer, the rivalry between existing firms on retail market in Romanian and
threat from substitute product.
2.In the retail sector barriers to entry are relatively high.
3.Consumer bargaining power is moderate because size and concentration of major retailers
4.There are many threats on the retail market penetration of large discount stores.
5. E-retailing is also threat to stable trade retailers.
6. Rivalry among existing firms in retail market in Romanian is enhanced by equal size and power of
dominant retailers who pressured to increase their market share.
7. The trend of extinction small retailers through acquisitions , mergers or alliances and high cost to exist
this market
Strengths of five forces model:
1. The model is strong tool for competitive analysis at industry level.
2. It provides useful input for performing a SWOT analysis.
Limitations
1. Inside-out strategy is ignored (core competence)
2. It does not cope with synergies and interdependencies within the portfolio of large corporations (parenting
advantage)
3. The environments which are characterized by rapid, systemic and radical change require more flexible,
dynamic or emergent approaches to strategy formulation (disruptive innovation)
4. Sometimes it may be possible to create completely new markets instead of selecting from existing ones
(blue ocean strategy)
39. SWOT ANALYSIS
Strength
1. A very broad product portfolio of food and lifestyle (fashion,
home, entertainment) brands, with a special emphasis and brands
and quality
2. Extremely successful customer engagement programmes
3. Follows differentiation as a strategy rather than cost-leadership
4.Brand Imagery-perceived as an international, contemporary,
accessible, empathetic and trusted brand
5.Offers promotions carefully designed to suit the buying cycle and
shopping basket of the consumers
Weakness
1.Rising Operating costs
2. Limited Geographical presence
3.High bargaining power of suppliers across the huge product range
it deals in
Opportunity
1.Growth of organized retail sector in India which was till now
dominated by unorganized kirana(convenience) stores
2.Favourable Indian demographics- rising middle class, young
working population with higher disposable incomes who prefer to
shop under one roof and stock items
3.Expansion through large format stores across the country
Threats
1. Stringent Government regulations in the organized retail sector in
India
2.Competition from leading international retail giants such as Tesco,
Carrefour, Walmart due to approval of FDI in multi-retail
3.Competition from rising presence of e-commerce shopping sites
Competitors
1. Aditya Birla Retail Ltd.
2.Vishal Mega Mart
3.Big Bazaar
4. Reliance Retail
40. PESTLE MODEL
PESTLE stands for Political, Economic, Sociological, Technological, Legal and Environmental. Historically
the model was PEST; however Legal and Environmental were added on more recently as their importance
grew. The model describes the environmental influences on any organization and can be used to aid strategic
decision making. If you can understand what is going on in your environment, both internally and externally,
you will be able react and implement change more quickly and effectively providing a competitive edge.
PESTLE analysis provides useful data for understanding the ‘big picture’ of the environment in which an
organization is operating. Specifically a PESTLE analysis is a useful tool for understanding and identifying
risks as part of a risk assessment process. It is particularly important when assessing market risks (the need for
a product or service) and assessing growth or decline, and as such the position and direction for any business
or organization.
PESTLE forces are sometimes called the ‘drivers of change’ of any organization as they are the forces that
exist that cause the requirement for change in an organization. Failing to identify drivers of change can be
disastrous for an organization. For example a key Legal driver of change could be a change in legislation, if
this has a great effect on an organization but they fail to react early enough they could well be left behind by
competitors. PESTLE Analysis is a key tool in identifying these drivers of change.
Organizations exist within the micro (the environment around your organization where you have limited
influence and impact) and macro (the wider economy and markets where you have no control and can only
react) economic environments.
A PESTLE Analysis assists an organization to see where it sits in these environments and identify threats and
opportunities and to minimize and maximize their impact on the organization. PESTLE Analysis can help you
identify long terms trends and help you make informed decisions about the future and can be particularly
useful when entering a new market, country or environment allowing you to quickly change and adapt to the
external forces.
Using PESTLE Analysis to identify the drivers of change to your organization is only the first step. The next
step is to analyze their potential impact on your organization and really think through what they mean. The
assumptions should be continually tested and updated against the real life experiences within the environment.
There are many factors in the macro-environment that will affect the decisions of managers in any business.
Tax changes, new legislation, trade barriers, demographic change and government policy changes are some
examples of macro change.To analyse these factors managers categorise them using the PESTEL model. This
classification distinguishes between:
Political factors.
These refer to government policy such as the degree of intervention in the economy. What goods and services
does a government want to provide?To what extent does it believe in subsidising business?What are its
priorities in terms of business support?Political decisions can impact on many vital areas for business such as
the education of the workforce, health system and the quality of the infrastructure of the economy such as the
road and rail system.
41. Economic factors.
These include interest rates, taxation changes, economic growth, inflation and exchange rates.Government
intervention in the free marketBusiness cycle stage – prosperity, recession, recoveryDiscretionary
incomeUnemployment rateEconomic change can have major impacts – for example:Higher interest rates may
deter investment because it costs more to borrowA strong currency may make exporting more difficult
because it may raise the price in terms of foreign currencyInflation may provoke higher wage demands from
employees and raise costsHigher national income growth may boost demand for a firm’s products
Social factors.
Changes in social trends can impact on the demand for businesses’ products and services. Consider the
following which may impact. Demographics Class structure,Education,Culture,Entrepreneurial
spirit,Attitudes – sentiment, health, environmental consciousness, nutrition,Leisure issues
Technological factors.
New technologies create new products and new processes.iPads, phone apps, online gambling and high
definition TVs are all recent markets created by technological advances.Online shopping, bar coding and
computer aided design are all improvements to the way we do business as a result of better
technology.Technology can reduce costs, improve quality and lead to innovation.These developments can
benefit consumers as well as the organisations providing the products.
Environmental factors.
Environmental factors include the weather and climate change – greenhouse gas emissions, overall
environmental footprint.Changes in temperature can impact on many industries including farming, tourism
and insurance.With major climate changes occurring due to global warming and with greater environmental
awareness this external factor is becoming a significant issue for firms to consider.The growing desire to
protect the environment is having an impact on many industries such as the travel and transportation
industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general
move towards more environmentally friendly products and processes is affecting demand patterns and
creating business opportunities.Energy consumptionRecyclabilityClean water consumption
Legal factors.
These are related to the legal environment in which firms operate. In recent years there have been many
significant legal changes that have affected business emanating from the EU.The introduction of age
discrimination and disability discrimination legislation, the minimum wage and greater requirements for firms
to recycle are examples of relatively recent laws that affect businesses.Legal changes can affect a firm’s costs
(if new systems and procedures have to be developed) and demand (if the law affects the likelihood of
customers buying the good or using the service).Different categories of law include:
42. Consumer Laws.
These are designed to protect customers against unfair practices such as misleading descriptions of the
product
Competition Laws.
These are aimed at protecting small firms against unfair practices by larger firms and ensuring customers are
not exploited by firms with monopoly positions.
Employment Laws.
These cover areas such as redundancy, dismissal, working hours and minimum wages. They aim to protect
employees against the abuse of power by managers
Health and Safety Legislation.
These laws are aimed at ensuring the workplace is as safe as is reasonably practical. They cover issues such as
training, reporting accidents and the appropriate provision of safety training, systems and equipment.
More …
Listing PESTEL factors does not in itself tell you very much. You need to do is to think about which factors
are most likely to change and which ones will have the greatest impact.It is also important when using
PESTEL analysis to consider the level at which it is applied. For instance you may want to differentiate
between factors which are local, other which are national and finally those which are global.
For example, a retailer undertaking PESTEL analysis may consider
Local factors such as infrastructure, planning permission and local bye-laws
National factors such as economic growth rates, discretionary income
Global factors such as the general state of the world economy, currency rates, emergence of China and India
as global players.
This version of PESTEL analysis is called LoNGPESTEL.
Mapping of PESTEL Model with Spencer’s/retail industry
1.Political :- The elections are going on and there is a possibility of change in government which is
encouraged by the rise in share prices also which will thus result in better oppurtunities in the industry.
Moreover the BJP is against FDI in retail and the state government has also said that FDI will not be adopted
in UTTAR PRADESH. Thus we can have a good market in the near future as competition from abroad will
not increase.
2.Economic:- Indian economic condition is in the phase of slowdown as of now but is likely to improve
soon. Thus the jobs will also increase in the near future and and as the government has main focus on
employement it is expected that employement laws will have relaxation plus they will encourage more
businesses through lower interest rates.
43. 3.Social :-as more and more people are getting good education and there is a regular drift of people from
rural to urban areas the need of goods is likely to increase with the increase in the living standards and thus
retail industry is likely to get a boom because people now prefer buying things from a single store rather than
visiting several stores to fulfill their requirements.
4. Technological :- e- retailing has started advancing with the presence of social media and the way
retail sector operated in changing and thus changes in technology will increase the sales manifold in coming
future.
5. Environmental :- retail industry has started concentrating on environment also through charging for
the use of polybags and also requesting customers to bring their own handbags . they have also started several
awareness programs to make customers aware of how to protect the environment.
6. Legal :- these factors are favourable as of now for the retail industry as the laws are not that stringent .
but however certain small changes in laws can result in high operating cost for the industry which should
always be kept in consideration.
MARKETING MIX AT SPENCER’S
7 ‘P’
Process
Product
Price
PromotionPlace
People
Physical
Evidence
44. 1.Product :- the various sections of product at spencer’s consist of food and vegetables, home work and play, apparels,
fmcg, beverages, electronics and furniture goods.
2.Price:- the different types of pricing being implemented are
Value Pricing:- giving offers like buy 2 pepsi and get 1 free
Promotional Pricing
Low interest financing :- providing emi’s at low interest rates on products of high value
Psychological discounting:- offers like“buy 1 tshirt at rs 299 and get 2 tshirts at an offer price of rs 499”
Special event pricing :- offers on different products at special occasions.
Differentiated Pricing
Time pricing :- giving special prices on products on particular days.
Bundling :- getting two or more different products and selling them as a combined product
3. Place :- spencer’s is present in above 450 cities all over the country.
4.Promotion:-
5.People :- it consist of well trained staff, good appearance, empowered individuals who are given freedom to think out
• Coupon, discount, more of the product
at normal price, gift with purchase,
competition, and prizes, money back
offer, exchange offer, special occasion.
Below the
Line
Promotion
• Giving advertise in news paper, TV.
Internet (own website which give
online shopping service),
• partnership with vodafone, fm etc.
Above the
Line
Promotion
45. of the box.
6. Physical Evidence :- the shelves are occupied with products to provide a display to customers.
7. Process :- process includes self service and picking the items and then getting them billed at the cash counter
through cash or through card.
47. ORGANISATION VALUE AND CUSTOMER
VALUE
*High organization
value
*Low customer
value
Spencer’s
*High organization
value
*High customer
value
*Low organization
value
*Low customer
value
*Low organization
value
*Low customer
value
48. ANNEXURE 1
Format of the Exit Questionnaire
Customer Name:
Contact No.:
Email ID:
Do you want to get offer communication/promotion thru SMS or Mail ?
Yes No
Age
18-25years 26-35years 36-45years 46 & Above
Are you ''Self Employed or Employed''?
Self Employed Employed Others
Salary
10K-20K 20K- 30K 30K-50K
50 K &
Above
How far do you live from the Store?
0-1 km 1-2kms 2-3kms 3 -5 Kms 5 kms & Above Location plz specify
Do you know, There is a promotion at Spencer's (Y/N) - If
no, then explain the promo .
Yes No
What is the promotion going on?
Did you like the Spencer's Offer/Promo ? Plz Rate Us
Poor Average Good Excelent
49. Were the offers on display clearly visible?
Yes No
Do you recall the Spencer's Promo Communications in
English ?
Yes No
Are you visiting Spencer's for the first time?
Yes No
If yes then have you made any purchase from Spencer's?
Yes No
If yes then will you shop from Spencer's again?
Yes No
Would you suggest others to Spencer's ?
Yes No
Where did you seen our Communication?
News Paper
Outdoor
Hoarding/Van
promotion TV/Radio Leaflet SMS
WOM
Which Newspaper have you seen the ad in ?
Times of India Dainik Jagran
Amar
Ujala Hindustan I-Next Others
55. ANNEXURE 3
1) Does distance affect awareness of promotions ?
One-Way Analysis of Variance
Results
The ANOVA Procedure
Class Level Information
Class Levels Values
distance 5 1 2 3 4 5
Number of Observations Read 939
Number of Observations Used 939
Generated by the SAS System ('Local', W32_VSPRO) on May 14, 2014 at 09:25:00 AM
One-Way Analysis of Variance
Results
The ANOVA Procedure
Dependent Variable: info about promotions
Source DF Sum of Squares Mean Square F Value Pr > F
Model 4 5.9409611 1.4852403 9.02 <.0001
Error 934 153.7395501 0.1646034
Corrected Total 938 159.6805112
R-Square Coeff Var Root MSE info about promotions Mean
0.037205 186.7475 0.405713 0.217252
Source DF Anova SS Mean Square F Value Pr > F
distance 4 5.94096111 1.48524028 9.02 <.0001
Generated by the SAS System ('Local', W32_VSPRO) on May 14, 2014 at 09:25:00 AM
56. )Does age and salary affect customer satisfaction ?
Class Level Information
Class Levels Values
age 4 1 2 3 4
salary 4 1 2 3 4
Number of Observations Read 939
Number of Observations Used 939
Generated by the SAS System ('Local', W32_VSPRO) on May 15, 2014 at 09:42:23 AM
Linear Models
The GLM Procedure
Dependent Variable: rate spencers
Source DF Sum of Squares Mean Square F Value Pr > F
Model 14 6.6231965 0.4730855 1.83 0.0304
Error 924 238.7655149 0.2584042
Corrected Total 938 245.3887114
R-Square Coeff Var Root MSE rate spencers Mean
0.026991 22.77320 0.508335 2.232162
Source DF Type III SS Mean Square F Value Pr > F
age 3 2.08102384 0.69367461 2.68 0.0455
salary 3 2.21231017 0.73743672 2.85 0.0363
age*salary 8 4.14388962 0.51798620 2.00 0.0431
57. 3) does age, salary, distance, employement affect your first time visit ?
Linear Models
The GLM Procedure
Class Level Information
Class Levels Values
distance 5 1 2 3 4 5
age 4 1 2 3 4
salary 4 1 2 3 4
employement 3 1 2 3
Number of Observations Read 939
Number of Observations Used 939
Generated by the SAS System ('Local', W32_VSPRO) on May 14, 2014 at 11:26:33 AM
Linear Models
The GLM Procedure
Dependent Variable: first visit
Source DF Sum of Squares Mean Square F Value Pr > F
Model 111 24.4423407 0.2202013 2.36 <.0001
Error 827 77.2275209 0.0933827
Corrected Total 938 101.6698616
R-Square Coeff Var Root MSE first visit Mean
0.240409 247.3665 0.305586 0.123536
Source DF Type III SS Mean Square F Value Pr > F
distance 4 0.50504617 0.12626154 1.35 0.2489
age 3 1.14509615 0.38169872 4.09 0.0068
distance*age 12 3.85174019 0.32097835 3.44 <.0001
salary 3 0.41442388 0.13814129 1.48 0.2187
employement 2 0.65409100 0.32704550 3.50 0.0306
distance*salary 12 1.63088775 0.13590731 1.46 0.1356
distance*employement 8 1.81162325 0.22645291 2.42 0.0136
age*salary 8 1.30734883 0.16341860 1.75 0.0835
age*employement 5 1.18114377 0.23622875 2.53 0.0277
salary*employement 6 0.28973524 0.04828921 0.52 0.7956
distance*age*salary 7 0.95353359 0.13621908 1.46 0.1786
distanc*age*employem 6 2.14133304 0.35688884 3.82 0.0009
distan*salary*employ 8 1.06257212 0.13282151 1.42 0.1831
age*salary*employeme 5 1.59926053 0.31985211 3.43 0.0045
dist*age*salar*emplo 2 0.03113242 0.01556621 0.17 0.8465
58. 4) does salary and distance have an impact on your future buying ?
Linear Models
The GLM Procedure
Class Level Information
Class Levels Values
distance 5 1 2 3 4 5
salary 4 1 2 3 4
Number of Observations Read 939
Number of Observations Used 939
Generated by the SAS System ('Local', W32_VSPRO) on May 14, 2014 at 11:28:19 AM
Linear Models
The GLM Procedure
Dependent Variable: future shopping
Source DF Sum of Squares Mean Square F Value Pr > F
Model 19 0.90804566 0.04779188 1.95 0.0086
Error 919 22.47853581 0.02445978
Corrected Total 938 23.38658147
R-Square Coeff Var Root MSE future shopping Mean
0.038828 16.04984 0.156396 0.974441
Source DF Type III SS Mean Square F Value Pr > F
distance 4 0.16493090 0.04123273 1.69 0.1511
salary 3 0.18412763 0.06137588 2.51 0.0575
distance*salary 12 0.34141081 0.02845090 1.16 0.3053
59. 5) does age, salary and distance in any way impact reaching of promotions ?
Linear Models
The GLM Procedure
Class Level Information
Class Levels Values
age 4 1 2 3 4
distance 5 1 2 3 4 5
salary 4 1 2 3 4
Number of Observations Read 939
Number of Observations Used 939
Generated by the SAS System ('Local', W32_VSPRO) on May 15, 2014 at 09:44:44 AM
Linear Models
The GLM Procedure
Dependent Variable: communication medium
Source DF Sum of Squares Mean Square F Value Pr > F
Model 60 359.688110 5.994802 2.61 <.0001
Error 878 2018.793253 2.299309
Corrected Total 938 2378.481363
R-Square Coeff Var Root MSE communication medium Mean
0.151226 85.31157 1.516347 1.777423
Source DF Type III SS Mean Square F Value Pr > F
age 3 19.1010521 6.3670174 2.77 0.0407
salary 3 1.9428058 0.6476019 0.28 0.8387
age*salary 8 102.6788401 12.8348550 5.58 <.0001
distance 4 11.5592553 2.8898138 1.26 0.2854
age*distance*salary 18 107.7413797 5.9856322 2.60 0.0003
age*distance 12 61.1420064 5.0951672 2.22 0.0096
distance*salary 12 55.1385267 4.5948772 2.00 0.0217
60. 6) does age and salary affect reading a newspaper ?
Class Level Information
Class Levels Values
age 4 1 2 3 4
salary 4 1 2 3 4
Number of Observations Read 939
Number of Observations Used 939
Generated by the SAS System ('Local', W32_VSPRO) on May 15, 2014 at 09:45:26 AM
Linear Models
The GLM Procedure
Dependent Variable: newspaper read
Source DF Sum of Squares Mean Square F Value Pr > F
Model 14 40.639720 2.902837 1.72 0.0468
Error 924 1559.745797 1.688037
Corrected Total 938 1600.385517
R-Square Coeff Var Root MSE newspaper read Mean
0.025394 59.42478 1.299245 2.186368
Source DF Type III SS Mean Square F Value Pr > F
age 3 5.98341485 1.99447162 1.18 0.3156
salary 3 18.41127170 6.13709057 3.64 0.0126
age*salary 8 19.03425396 2.37928175 1.41 0.1883
61. 7)discriminant analysis
Total Sample Size 939 DF Total 938
Variables 8 DF Within Classes 937
Classes 2 DF Between Classes 1
Number of Observations Read 939
Number of Observations Used 939
Class Level Information
future shopping
Variable
Name Frequency Weight Proportion
Prior
Probability
0 0 24 24.0000 0.025559 0.500000
1 1 915 915.0000 0.974441 0.500000
Univariate Test Statistics
F Statistics, Num DF=1, Den DF=937
Variable
Total
Standard
Deviation
Pooled
Standard
Deviation
Between
Standard
Deviation R-Square
R-Square
/ (1-RSq) F Value Pr > F
age 0.8067 0.8025 0.1216 0.0114 0.0115 10.77 0.0011
salary 0.7663 0.7630 0.1058 0.0095 0.0096 9.03 0.0027
distance 0.9259 0.9256 0.0537 0.0017 0.0017 1.58 0.2091
employement 0.9002 0.9000 0.0488 0.0015 0.0015 1.38 0.2399
rate spencers 0.5115 0.5076 0.0913 0.0160 0.0162 15.20 0.0001
newspaper read 1.3062 1.3032 0.1386 0.0056 0.0057 5.31 0.0214
communication medium 1.5924 1.5914 0.1082 0.0023 0.0023 2.17 0.1409
info about promotions 0.4126 0.4125 0.0211 0.0013 0.0013 1.23 0.2674
Average R-Square
Unweighted 0.0061625
Weighted by Variance 0.004687
Multivariate Statistics and Exact F Statistics
S=1 M=3 N=464
Statistic Value F Value Num DF Den DF Pr > F
Wilks' Lambda 0.95675937 5.25 8 930 <.0001
Pillai's Trace 0.04324063 5.25 8 930 <.0001
Hotelling-Lawley Trace 0.04519488 5.25 8 930 <.0001
Roy's Greatest Root 0.04519488 5.25 8 930 <.0001
62. Linear Discriminant Function for future shopping
Variable 0 1
Constant -21.54865 -28.55533
age 2.95290 3.74949
salary 3.54472 4.17987
distance 2.62350 2.86617
employement 3.05684 3.65016
rate spencers 7.07864 8.70867
newspaper read 1.31654 0.96290
communication medium 0.62923 0.50870
info about promotions -2.77060 -3.38112
Number of Observations and Percent
Classified into future shopping
From future shopping 0 1 Total
0 13
54.17
11
45.83
24
100.00
1 244
26.67
671
73.33
915
100.00
Total 257
27.37
682
72.63
939
100.00
Priors 0.5 0.5
Error Count Estimates for future shopping
0 1 Total
Rate 0.4583 0.2667 0.3625
Priors 0.5000 0.5000
Discriminant Analysis Results
Canon
ical
Correl
ation
Adjust
ed
Canon
ical
Correl
ation
Approx
imate
Standar
d
Error
Squar
ed
Canon
ical
Correl
ation
Eigenvalues of Inv(E)*H
= CanRsq/(1-CanRsq)
Test of H0: The canonical correlations in the curren
t row and all that follow are zero
Eigen
value
Differ
ence
Propo
rtion
Cumul
ative
Likelihood
Ratio
Approximate
F Value Num DF Den DF Pr > F
1 0.2079
44
0.1908
82
0.03123
9
0.0432
41
0.0452 1.0000 1.0000 0.95675937 5.25 8 930 <.0001
63. Raw Canonical Coefficients
Variable Can1
age 0.591969524
salary 0.472003976
distance 0.180334397
employement 0.440923533
rate spencers 1.211333886
newspaper read -0.262802830
communication medium -0.089575344
info about promotions -0.453703059
65. SUMMER INTERNSHIP PROGRAM
Student Feedback Form
Name:- Afzal Ishtiaq Usmani Enrollment no:-13BSPHH010027
Name of internship organization :- Spencer’s retail limited, Lucknow
City:- Lucknow
s.no Parameter Excellent Very
good
Good Fair Not
satisfactory
1. Support received from IBS on internship
recognition
2. Opportunity to learn from internship work in the
company
3. Learning benefits from the internship work
4. Placement oppurtunities
5. Recommend the company to future students
Date.:- Signature of student
66. Note:- annexures 4,5,6 and 7 are their in hard copy. Other than that all analysis parts are also included in hard copy.