Spencer's retail ltd. project report (summer internship project)

A
Project Report
On
The Study at Dr. A.S. Rao Nagar with reference to Spencer’s Retail Ltd on
Market Potential and Customer Preferences.
A Project Report Submitted in partial fulfillment for the award of
POST GRADUATE DIPLOMA IN MANAGEMENT

Submitted By:
Ajay Kumar Gupta
(Registration No.: 08/06)

ICBM-SCHOOL OF BUSINESS EXCELLENCE
Rajendra Nagar, Hyderabad-500 048
Approved by AICTE
(2008-2010)

[ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

ACKNOWLEDGEMENT
“Interdependence is a higher value than independence”

Some Says “Managers are born and some says managers are made”. I was also in
some dilemma before commencing my Summer Internship Project. But after the
successful completion of my summer internship project, I came to know that
managers are made if they are guided properly and are motivated to work willingly
towards fulfillment of specific goal.
It is with a sage sense of gratitude, I acknowledge the efforts of whole hosts of well
wishers who have in some way or other contributed in their own special ways to the
success and completion of this summer internship project.
First of all, I express my sage sense of gratitude and indebtedness to my Principal,
Prof. S. Zarar of “ICBM-School of Business Excellence”, Hyderabad, from the bottom
of my heart, for his unprecedented support and faith that I do the best and his valuable
recommendation and for accepting this project.
I sincerely express my thanks to our Marketing lecturer Prof. Jitender Govindani
for his valuable guidance and intellectual suggestions during this project.
Also, I also express my sincere thankfulness to my mentor Dr. P Sai Rani, Mr.
Khaja Qutubuddin and Mrs. Annie Kavitha for their kind advice, suggestions and
constant help in a lot of various ways during project course.
Further I express my sage sense of gratitude to Mr. Sudhakar Balivada, Regional
Marketing Manager of Spencer’s Retail Ltd (A RPG Group enterprise) and Mr.
Rajneesh Jha, who were kind enough to give an opportunity to work under their
immense expertise. I sincerely thank to both of them for their valuable suggestions,
motivation and encouragement. I express my thanks to the Spencer’s Supporting Team,
for their support and encouragement in bringing out this project report.
I would be failing in my duty if I don’t express my profound gratitude to the entire
respondent who has spent their valuable time to answer the questionnaire.


Last but not the least; I would also like to expand my thanks to all faculty members
of ICBM-School of Business Excellence, Hyderabad, who have helped a lot during the
course of my project.
Finally, I sincerely express my thanks to all my friends and the Staff members of
ICBM-School of Business Excellence, Hyderabad for their support.

Ajay Kumar Gupta
(Registration No.: - 08/06)


DECLARATION

I, Ajay Kumar Gupta student of ICBM-School of Business Excellence,
Hyderabad, hereby declare that this project report entitled “The Study on Market
Potential and Customer Preferences with reference to Spencer’s Retail Ltd at
Dr. A.S. Rao Nagar” for Spencer Retail Limited (A RPG Enterprise), Hyderabad,
is a bonafide record of work done by me during the course of summer internship
project work of PGDM program and all contents and facts are prepared and
presented by me without any bias.
I also declare that it has not previously formed the basis for the award to me for
any degree/diploma associate ship, fellowship or other similar title, of any
Institute/Society.

Place: Ajay Kumar Gupta

Date:


PREFACE
I want to express my gratitude for the experience and practical knowledge that I
gained during the summer internship project at Spencer’s Retail Ltd (An enterprise of
RPG’s group).It was my first experience when I went to the market not to buy anything
but to do the survey and to Study of Market Potential and Customer Preferences at Dr.
A.S Rao Nagar, Hyderabad with reference to Spencer’s Retail Ltd. The basic need of this
survey is to interact with customers. On first day I was nervous, but because of the good
image of the SPENCER’s in the market the people reacted positively.
For accomplishment of the project report I think about the conditions and views
and then I used to compose the whole thing on computer. In making the project report
theoretical knowledge was needed more than the practical which was given to us by my
professors in my institutes. In the market the experience relating to the practical
knowledge was very good which realized me about the real conditions of the marketing.
The project flows logically consisting of market research, data collection
method and questionnaire. It hoped that the findings and the suggestions will help the
company, confidently to formulate its strategy in comparison to its competitors. I have
enjoyed my summer internship at Spencer’s and have learnt lots of new things, which


will be helpful to me during my work in any organization. I thank Spencer’s for giving
this opportunity at their office and being good to me all the time.
I am please to work in this esteemed organization. I have tried my best to make
this report a reader friendly & also did my level best to fulfill the objective of the summer
training.

Lastly I am giving thanks to ICBM-School of Business Excellence family who
gave me their precious time to make project successful.

CERTIFICATE FROM GUIDE

This is to certify that the project entitled “The Study on Market Potential and Customer
Preferences with reference to Spencer’s Retail Ltd at Dr. A.S. Rao Nagar” is a bona fide
work of Ajay Kumar Gupta, a student of ICBM-School of Business Excellence bearing Roll
No. PGDM/08-10/06, and was successfully conducted at Spencer’s Retail Ltd. Hyderabad,
from 1stMay to 15th June ’09, for the partial fulfillment for the award of Post Graduate Diploma
in Management (PGDM). To the best of my knowledge this is an original piece of work.

I wish him all the very best in his career endeavors.

Dr. P. SAI RANI


(…………………………………….)
(PROJCET GUIDE)

TABEL OF CONTENTS

S.No. CONTENTS
1. Executive Summary
2. Introduction to Retailing
3. Objective of the Study
4. Research Methodology and Scope of the Study

5. Assumption of Study

6. Retail Sector and its scope in India

7. Company Profile
RPG Group
Spencer’s Retail Ltd.
8. Introduction to Market Potential and Catchment Analysis
9. Data Analysis and Interpretation
10. Findings of the Study
11. Challenges and Opportunities
12. Suggestions and Recommendation


13. Limitations of Study
14. Conclusion
Annexure
Bibliography

Retailing – Customer is King

“A Customer is the most important visitor on our premises. He is not dependent on us. We are
dependent on him. He is not an interruption on our work. He is the purpose of it. He is not an
outside of our business. He is a part of it and we are not doing him a favor by servicing him. He
is doing us a favor by giving us an opportunity to do so.”
Mahatma Gandhi

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


The Indian Macro Economy
• Tops AT Kearney list of emerging markets for global Retailers to enter.
• 2nd Fastest growing economy in the World and 50% of the total GDP led by services
such as IT, telecommunications, healthcare and retailing.
• GDP growth rate for the year 2007-08 ended at 9.4% (in 1 st quarter) and current GDP (6
%) is better than China and other developed country.
• Reserves crossed the $150 billion mark, showcasing India as one of the top ten holders of
Foreign exchange reserves.
• Population – 1000+ Million – 50 Million Rich and 300 Million Middle class

• 65% of population below 35 years and 54% below age 25 years

• Working population in India is growing like most other developed countries.

• China has issues of median age 30-34 years at the early stage of development and
psychology issues after implementation of “one child policy”

• Housing Boom – due to nuclear family, low interest rates, tax benefits from government
and lastly strong Indian values driven by savings and “owning home”

• Economy - 4h largest economy in the world on PPP basis (next only to USA, China and
Japan) -One of the fastest growing economy with 6.5% average growth in GDP for last
10 years and is expected to rank 3rd by 2010, just behind the US and China

• Fragmented retailing with 5 million retailers and 95% less than 500 sq ft – nation of
shop-keepers -brilliant trading and entrepreneur community

• Over 3.9 million tourists visited India this year, up from 3.0 million last year.
• India is on the track to be the servicing capital of the world (As China is manufacturing
capital) and Organized retail growing at 25-30%+ p.a. compound growth.

• IPL has again drastically changed the outlook of the whole world towards India. It has the
highest paid players across the Globe / Sports.


• Real Estate & Retailers in India are the most aggressive in Asia in expanding their
businesses, thus creating a huge demand for real estate. Their preferred means of
expansion is to increase the number of outlets in a city and also expand to other regions.

• Driven by changing lifestyles, strong income growth and favorable demographic patterns,
Indian retail is expanding at a rapid pace.

• Besides the 6 metros, India has 61 other cities with populations greater than 0.5 million
and contributes about 14% to the country’s GDP.

India Vs World
• Indian retail is fragmented with over 12 million outlets operating in the country which is
13 times more the all retail outlets operating in USA (0.9 million outlets).

• India has the highest number of outlets per capita in the world - widely spread retail
network but with the lowest per capita retail space (@ 2 sq. ft. per person)

• Annual turnover of Wal-Mart (Sales in 2001 were $219 billion) is higher than the size of
Indian retail industry. Almost 100 times more than the turnover of HLL (India's largest
FMCG Company).

• Wal-Mart - over 4,800 stores (over 47 million square meters) where as none of India's
large format store (Spencer’s, Big Bazaar, Shoppers' Stop, Westside, Lifestyle) can
compare.

• The Wal-Mart sales per hour of $22 million are incomparable to any retailer in the world.
Numbers of employees in Wal-Mart are about 1.3 million where as the entire Indian retail
industry employs about three million people.


• One-day sales record at Wal-Mart (11/23/01) $1.25 billion - roughly two third of HLL's
annual turnover.

• Developed economies like the U.S. employ between 10 and 11 percent of their workforce
in retailing (against 7 percent employed in India today).

• 60% of retailers in India feel that the multiple format approach will be successful here
whereas in US 34 of the fastest-growing 50 retailers have just one format
• Inventory turns ratio: measures efficiency of operations. The U.S. retail sector has an
average inventory turns ratio of about 18. Many Indian retailers have inventory turns
levels between 4 and 10 - KPMG surveyed.
• Global best-practice retailers can achieve more than 95 percent availability of all SKUs
on the retail shelves (translating into a stock-out level of less than 5 %).The stock-out
levels among Indian retailers surveyed ranged from 5 to 15 percent.


1. ExECuTivE SummAry


Executive Summary

Retailing is emerging as a sunrise industry in India and is presently largest employer after
agriculture. Some economists say that Retailing is one of the pillars of the economy in India, and
some say it is gold mine of Indian economy. Retailing in its present form started in the latter half
of 20th century in USA and Europe. Retail industry is divided into organized and unorganized
sectors. Over 12 million outlets operate in the country and only 5% of them being larger than
500 sq ft (46 m²) in size. Organized retailing in India is projected to grow at the rate of 25-30%
p.a., is estimated to grow from the US $ 330 billion in 2007 to US $ 427 billion by 2010 and US
$ 637 billion by 2015. Indian Retail Sector is growing very fast with so many new players are
coming in this growing organized sector and trying to attract customers by giving attractive
offers and offering competitive prices etc.

Spencer’s Retail Ltd is India’s leading retailer that operates in multiple formats. The company
operates over 6 million square feet of retail space, has over 350 square feet of retail stores across
60 cities in India and employs over 4500 people.

The motive of the study is to know the market potential at Dr. A.S. Rao Nagar, Hyderabad with
reference to Supermarkets & find out the customer’s perception about Supermarkets & what are
the customers’ expectations from Spencer’s Retail. The main purpose of the study is to find out
the target customers, preferences of the customers and sales potential with reference to
Spencer’s.

The study is done with the help of primary data given by respondents during survey and
secondary data to know the market potential and customer preferences at Dr. A.S Rao Nagar,
Hyderabad market with reference to Spencer’s Retail Ltd, and also to understand the current
market position of Spencer’s Daily at that area and know the potential customers. This study is
done with the help of area mapping and catchment analysis technique. Primary data is collected
through personal interview using structured questionnaire and secondary data is collected from
management of the Spencer’s Retail Ltd, various book, journals and from Spencer’s website.


Dr. A.S. Rao Nagar is a developing area of Hyderabad and it consists of all classes of families.
Most of the families belong to Socio Economy Class (SEC) A & B. Most of the residents fall in
to age group 18-45. Most of the families have 4 to 5 members in their families. Residents are
well educated and holding jobs. Their monthly incomes are ranging from 10,000-20,000 and
above. Approximately 86.5% people visit Supermarket for shopping and 50.75% people visit to
Spencer’s Daily Supermarket. From the above data it can be observed that there is a potential for
good market opportunities for retail Supermarket.

The reason for visiting super markets as mentioned by the respondents varied from better
services to pricing to variety of products available with the super markets. 44.75% respondents
visit super markets for the prices offered by the super markets and 46.75% mentioned that the
quality of product provided by the super markets is the reason for their visit to super markets.

The other factors which attract the respondents to various super markets are variety of products
offered, fresh products like fruits and vegetables, availability of dairy products, home delivery,
parking facilities, accepting debit/ credit cards, fast billing, booking counters, customer service,
courteous and friendly behavior and ambience.

Most of the customers complained regarding customer service, variety of product with deep
assortment, store image, arrangement of products, pricing, product knowledge of employee,
quality of products, parking space, product updation, closing time at Dr. A.S. Rao Nagar with
reference to Spencer’s Daily.

Company can enhance its business or increase its sales by doing these things; provide better
customer service than its competitors, increase the variety of merchandise with deep assortment,
arrangement of product should be in proper way that creates good store image, provide club
Spencer’s membership card to the customers. Company should also include apparels segment in
the store, should advertise through pamphlets about various offers, provide parking space and
employ knowledgeable sales staff.


This study helped me a lot for analyzing the market, understanding retail business and how to
respond in critical situations. Findings and suggestions/recommendation of this report might be
helpful for the company to improve its performance and business.

2. iNTrOduCTiON TO rETAiLiNg


Introduction

The word retail has its origin in French word retaillier and means “to cut a piece off’’ or “to
break bulk”. The term Retailing is defined as “All activities involved in selling goods and
services directly to final consumers for their personal and non-business use”. In simple terms, it
implies a first-hand transaction with customer. Retailing involves a direct interface with the
customer and the coordination of business activities from end to end right, from the concept or
design stage of a product or offering, to its delivery and post delivery service to the customer.
The industry has contributed to the fastest changing and dynamic industries in the world today.

Retailing, it is an emerging trend in the India and Hyderabad is not far behind which is also
witnessing the stupendous growth and opportunities presented by this sector. Many institutions-
Manufacturing, Wholesalers and retailers – do retailing, but most retailing is done by Retailers.
A business wholesales come from primarily from retailing. It is a proven fact that in India the
retail industry has become the 2nd largest employer after agriculture. Indian retail sector is in
boom period and many reasons are contributing to it.

The retail scenario in India is unique. Much of it is in the unorganized sector, with over 12
million retail outlets of various sizes and formats. Almost 95% of these retail outlets are less than
500 sq. ft. In size, the per capita retail space in India being 2 sq. ft. compared to the US figure of
16 sq. ft. Thus India’s per capita retailing space is the lowest in the world.

With more than 9 outlets per 1000 people, India has the largest number of outlets in the world.
Most of them are independent and contribute as much as 95% to the total retail sales. Because of
the increasing number of nuclear family, working women, greater work pressure and increased
commuting time, convenience has become a priority for the Indian consumers.


The growth and development of organized retailing in India is driven by two main factors –
lower price and benefits the consumers can’t resist. According to experts, economies of scale
drive down the cost of supply chain, allowing retailers to offers more benefits offered to the
customers. Globally, retailing is customer-centric with an emphasis on innovation in products,
process and services. In short, the customer is the king.

The Indian retail market is the 5th largest retail destination globally. It is estimated to grow from
the US $ 330 billion in 2007 to US $ 427 billion by 2010 and US $ 637 billion by 2015.

In Hyderabad, Spencer’s Retail came up as the organized retail outlet in the form of a
Hypermarket in the year 2001, with its inception in Hyderabad, shopping got an altogether new
meaning in Hyderabad. Some of the striking features of Spencer’s Retail – a big and different
formats having nice store image, along with soothing music and luring visual display of the
products with self-selection facility magnetizing customers to choose from a wide assortment
and variety of the products priced with entrancing discounts and fabulous offers.

The emergence of organized retailing has led to competition which has resulted to the
demographics & psychographic changes in the life of urban consumers. The life style and
purchasing power of the middle class & upper class segment have fuelled the growth of
organized retailing to intense competition among the big players.

Spencer’s Retail is facing big intense competition from organized retail outlets like Big Bazaar,
More, Vijetha, Hyderabad Central, Spar, Shopper’s Stop, Pantaloon’s, Heritage fresh @, Food
World, Reliance fresh, Vishal Mega Mart etc, to name a few, and from unorganized retailers like
Kirana shops, Garment shops etc. Competition in retail sector has become extremely keen. Many
new players coming in the retail market has increased the degree of competition by adopting 5
P’s (i.e. place, product, price, promotion and people) for successful retailing. While some of the
exiting retailers survived, others failed to do so.


3. OBjECTivE OF ThE STudy


Objectives of the study

• To study Dr. A.S. Rao Nagar area demographic wise.

• To study about the perception of customers with reference to availability of products and
services in supermarket/Spencer’s.

• To study about customer preferences and frequency of shopping.

• To know the target customer’s of Spencer’s Retail/Supermarket at Dr. A.S. Rao Nagar.

• To understand the customer’s expectation from retail service provider.


4. rESEArCh mEThOdOLOgy
ANd SCOpE OF ThE STudy


Research Methodology
The study is relied on primary as well as secondary data.
The primary data is collected through personal interviews using structured Questionnaire.
The Secondary is collected from management of the Spencer’s Retail Ltd, various books,
journals and Internet.
Sampling Methods:
Probability sampling method or simple random sampling
Universe: -
The research work was accomplished in Dr. A.S. Rao Nagar, Hyderabad, so Dr. A.S. Rao Nagar,
Hyderabad is my Universe.
Sample Size: -
Sample size was 400.
Research Instrument: -
For this study, for the collection of various data requirement, structured questionnaire is used.
This questionnaire contains qualitative and quantitative information of the customers. The
questionnaire contains of both open-ended and close ended questions, which would help to know
the situation prevailing in the market.
Statistical Tools Used
For the purpose of data analysis, Percentage Method is used for calculation and result was
interpreted.
No. of Respondents
Percentage = ---------------------------×100
Total Respondents


Scope of the Study

With the help of primary data given by the respondent during survey and secondary data, study is
done to help the Spencer’s Retail Ltd to understand the market potential at Dr. A. S. Rao Nagar,
Hyderabad market, also to understand the customer preferences and, potential customers and
current market position of Spencer’s Daily at that area.


5. Assumptions of the Study

The assumptions of the study are----
• Questionnaires which were filled by both husband and wife and other members of family
have been considered by me as filled by male (earner) only.
• Those questionnaires which are more than 80% filled, I have taken them in to
consideration as a full filled questionnaire.
• Customers who visit occasionally to Spencer’s in a month or with 15 days, I consider that
once in a week.


6. rETAiL SECTOr ANd iTS
SCOpE iN iNdiA


Retail Sector and its scope in India

Structure of Indian Retail Sector
The retail industry continued in India in the form of Kirana stores till 1980. Soon, following the
modernization of the retail sector in India, many companies started pouring in the retail industry
in India like Bombay Dyeing, Grasim etc. From that time the retail sector in India can be widely
split into the organized and the unorganized sector.

Organized Retail Sector
After 50 years of unorganized retailing and fragmented Kirana stores, the Indian retail industry
has finally begun to move towards modernization, Systematization and consolidation. Today,
modernization is the catch phrase and the key to understanding retail in the next decade.
There has been a boom in retail trade in India owing to a gradual increase in the disposable
incomes of the middle class households, as a result of good performance of IT, Service and
Infrastructure sectors. More and more players are entering the retail business in India to introduce
new formats like malls, supermarkets, discount stores, department stores and even changing the
traditional looks of bookstores, chemist shops, and furnishing stores.
Organized retail formats prevalent globally
• Malls
• Supermarkets
• Hypermarkets
• Discount Stores
• Department Stores
• Specialty Stores
• Internet Retailing
• Convenience Stores
• MBO


Unorganized Retail Sector
The unorganized retail sector basically includes the local Kirana stores, hand cart, the
vendors on the pavement (sidewalk) etc. This sector constitutes about 95% of the total retail trade.
As 70% of the employment is generated in Agriculture sector, hence this form of retailing is widely
seen in those areas and of course to some parts of the urban. There is a lot of hue and cry in the
sector for opening of sector for direct investment from the foreign players, but government cannot
neglect the interests of small players. One of main reason of not opening this sector to FDI is it may
shrink the employment in the unorganized sector and expand that in the organized.

The Evolution of retail in India

Traditional Established Emerging
Formats Formats Formats
Itinerant Salesman Kirana shops Exclusive retail outlets
Haats Convenience/Department stores Hypermarket
Melas PDS Malls/Multiplexes
Kiosks Pan/Beedi shops Specialty Malls
Post Office Fast food outlets etc.

India's Largest retail Chains:
1. PDS (Public Distribution System): 463,000
2. Post offices: 160,000
3. KVIC (Khadi & Village industries): 7,000
4. CSD (Canteen Stores Department) Stores:3,400
(Source business world marketing White book 2005)


Current Scenario of Indian Retail Sector

The Indian retail market, which is the fifth largest retail destination globally, has been ranked
the 2nd most attractive emerging market for investment after Vietnam in the retail sector by AT
Kearney’s seventh annual Global Retail Development Index (GDRI), in 2008. The share of retail
trade in the country’s gross domestic product (GDP) was between 8-10% in 2007. It is currently
12%, and is likely to reach 22% by 2010.
A McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian consumer
market is likely to grow four times by 2025. Commercial real estate services company, CB Richard
Ellis' findings state that India's retail market is currently valued at US$ 511 billion

Indian retail on the fast-track
• The Indian retail market is the fifth-largest retail destination globally. It is estimated to
grow from the US$ 330 billion in 2007 to US$ 427 billion by 2010 and further US$ 637
billion by 2015. Indian retail showed a growth rate of 49.73% with a turnover of US$
25.44 billion in 2007-08 as against US$ 16.99 billion in 2006-2007.
• Retail contributes to 10 per cent of India’s Gross Domestic Product and provides
employment to 8 per cent of India’s working population.
• Higher disposable incomes, easy availability of credit and high exposure to media and
brands has considerably increased the average propensity to consume over the years.
GRDI
India ranked first for the third consecutive year on the Global Retail Development Index – 2007,
conducted by AT Kearney across 30 emerging economies. India is ranked as the most preferred
retail destination for international investors.
GCCI
India ranked first for the fifth time on the Global Consumer Confidence Index – June 2007,
conducted by The Nielsen Company. Indians were judged as the world’s most optimistic
consumers, with high financial confidence about their income for the next 12 months.


The contribution of retail sector to GDP has been manifested below:

Country Retail Sector's share in GDP (in %)
India 10
USA 20
China 8
Brazil 6

The analysts foresee bright future of the retail sector. A huge number of shopping malls, nearly
100, have come up in the recent past, generating 20mn sq ft. retail space, extending more space
of about 12mn sq ft to it. Nearly 60 malls are on the verge of completion and may be operational
by the end of current financial year. A forecasted number of nearly 200 malls, in a move to make
additional 50mn sq ft of retail space, will be completed within the next two-years.
India retail industry is expanding itself most aggressively; as a result a great demand for real
estate is being created. Indian retailers preferred means of expansion is to expand to other
regions and to increase the number of their outlets in a city. It is expected that by 2010, India
may have 600 new shopping centers. In the Indian retailing industry, food is the most dominating
sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the
India retail industry and convert Indian consumers to branded food. Since at present 60% of the
Indian grocery basket consists of non- branded items. The global retail giants like Wal-Mart,
Spar International, Tesco, K-Mart/SEARS, Carrefour, ZARA, FCUK, Carrefour Group and The
Home Depot, NEXT, Mother Care, lKEA, Trussardi, DKNY and many more have made plans to
march in the Indian market.
Companies like Spencer’s, Shoppers Stop, Trent, Reliance, Lifestyle, Pantaloons Tanishq,
Crossroads, Vishal and More already have planned to invest over Rs 5,000cr. Trent is on the
edge to take both its brands 'Star India Bazaar' and 'Westside' to new cities, meanwhile Shoppers'
Stop has recently geared up for expansion of present ones and to add 11 new stores including two
hypermarkets. Pantaloon has planned to add eight 'Big Bazaar' malls within the next 6 to 8
months and also Spencer has geared up for opening 15 hypermarkets in near future.


After partition, Reliance Industries Ltd (RIL) is substantially getting ready to enter in
field of retailing. RIL is poised to emerge as the single largest player in this sector. On the other
hand, Tosco’s, Wal-Marts or Safeway does ultimately enter in the country. So finally, Shoppers'
Stops, Westside, Pantaloons and West sides in coming years have will face stiff competition.

Major Indian Retailers:-

• RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s
Super, Daily, Express & Fresh
• Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion
Station, Brand Factory, Depot, aLL, E-Zone etc.
• The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark, and
Titan Industries with World of Titans showrooms, Tanishq outlets, Chroma.
• K Raheja Corp Group Formats: Shoppers’ Stop, Crossword, Hyper City, Inorbit
• Lifestyle International- Lifestyle, Home Centre, Max, Fun City and International
Franchise brand stores.
• Pyramid Retail-Formats: Pyramid Megastore, True-Mart
• Nilgiri’s-Formats: Nilgiri's’ supermarket chain
• Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.
• More-Formats: Supermarket chain and hypermarket chain
• Vishal Retail Group-Formats: Vishal Mega Mart
• BPCL-Formats: In & Out
• Reliance Retail-Formats: Reliance Fresh
• Reliance ADAG Retail-Format: Reliance World
• German Metro Cash & Carry:- Wholesale
• Shoprite Holdings-Formats: Shoprite Hypermarket


International Retailers:-

The world's largest retailer, Wal-Mart, has tied-up with Sunil Mittal's Bharti Enterprises to
enter Indian retail market.
• Microsoft's first shop-in-shop pilot has been launched with the Tata Group subsidiary
Infiniti Retail's multi-brand consumer durables retail format, Croma.

• The Walt Disney Company, consumer product retailing arm of global animation giant,

will soon add 135 new stores to its existing 15 stores.

• World's leading coffee chain, Starbucks' enters India through a tie-up with the country's

leading multiplex operator PVR Limited.

• Apple Inc has entered into an exclusive marketing and distribution deal with Reliance

Retail through "iStore by Reliance Digital".
• Some of the international players that have already entered India include McDonald's,
Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton, Swarovski, Sony, Sharp,
Kodak, Medicine Shoppe among others.


7. COmpANy prOFiLE


Company Profile

RPG Enterprise

Type: - Private Conglomerate

Founded: - Mumbai, India (1979)

Founder(s):- RP Goenka

Headquarters: - Mumbai, India

Key People: - RP Goenka (Chairman Emeritus)
Harsh Goenka (Chairman)
Sanjeev Goenka (Vice Chairman)

Industry: - Power, Retail, Tyres/Tires, Transmission,
Technology, Entertainment and other

Revenue: - US$3.25 billion

Employees: - 58000

Website: - www.rpggroup.com


RPG Enterprises:-
RPG Enterprises, established in 1979 by RP Goenka, is one of India’s fastest growing
business groups with a turnover touching Turnover of Rs. 13,500 cr. and initially encompassed
Phillips Carbon Black, Asian Cables, Agarpara Jute and Murphy India. Currently, RP Goenka
retains the title of Chairman Emeritus, while the chairmanship and vice-chairman ship have been
assumed by his sons Harish and Sanjeev Goenka respectively.
The group has more than twenty companies managing diverse business interests in the areas of
Power, Tyre, Transmission, IT, Retail, Entertainment, Carbon Black, and Specialty.
The conglomerate’s major companies, subsidiaries and affiliates are…..

• Power

• CESC
• Noida Power Company Limited

• Tyres / Tires

• CEAT
• CEAT Srilanka
• Phillips Carbon Black
• Harrisons Malayalam

• Transmission

• KEC International
• RPG Transmission
• Nitel

• Technology

• Zensar Technologies
• RPG Cables
• RPG Life Sciences


• Raychem RPG

• Retail

• Spencer's Retail
• Music World
• Books and Beyond
• RPG Cellucom

• Entertainment

• Saregama

• Other

• Spencer's Travel Services
• Spencer International Hotels

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.


• Beyond Business
RPG is a socially responsible organization; believing in giving back to the community
what it has gained from it. The group regularly contributes toward the welfare of various
social groups and is involved in promoting social activities in the field of sports and arts.

History of RPG Group
The history of RPG began in 1820 when Ramdutt Goenka, from a small town in Rajasthan, came
to Calcutta to do business with the British East India Company. The following milestones speak
of his enterprising efforts, and the subsequent growth of the RPG group.
• By the 1900s the Goenka’s 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 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.

• RP Goenka currently oversees the group’s affairs as “Chairman Emeritus”. Today, RPG
has more than twenty companies across eight business sectors, with a Turnover of Rs.
13,500 cr.

• The group recorded a turnover of Rs 11,500 crore (equivalent to Rs. 115 billion) for fiscal
year 2007.

Management Board


Spencer's Retail Ltd. (A RPG Enterprise)

RPG Enterprises is not only one of the biggest, but also of the most respected names in the
industry. A US $ 3.25 billion dollars business conglomerate, RPG is one of the powerhouses that
drive Indian industry. With more than twenty companies, it spans six business sectors - Power,
Tyres, Transmission, Technology, Retail and Entertainment. With such a diverse portfolio, RPG
Enterprises has had unrivalled success which speaks very highly of the efficiency and vision with
which the group is run. Over the years, RPG Enterprises has built a huge reservoir of trust and
goodwill among the people of India. We at Spencer’s are truly proud to be a part of the RPG
family.

About Spencer’s Retail Ltd.
Spencer’s Retail Limited, part of the Rs 13,500 crores RPG group, is one of India’s largest and
fastest growing multi-format retailer with 350 stores, including 35 large format stores across 60
cities in India. Spencer’s focuses on verticals like food and grocery, fruit and vegetables,
electrical and electronics, home and office essentials, garments and fashion accessories, toys,
food and personal care, music and books. Established in 1996, Spencer’s has become a popular
destination for shoppers in India with hypermarkets and convenient stores catering to various
shopping needs of its large consumer base. We are proud today of our 350 stores across 60 cities
covering a retail trading area of 1.3 million square feet and an astonishing 4.5 million customers
a month. Spencer’s is one of the earliest entrants into the retail space and literally introduced the
Indian consumer to the concept of organized retailing. In fact, the first ever hyper store in India


was launched by Spencer’s at Hyderabad in the year 2001. The journey onwards has been one of
the most aggressive of all the retail players in India. The company started its operations way back
in the early 90’s in the south and over the last one year-and-a-half, it has ramped up operations to
about 350 stores across 60 cities in India. Spencer’s is on a high growth path.

Operations

Spencer’s has retail footage of over 6 million square feet and over 350 Spencer’s stores in 60
cities. The company operates through the following formats:

• The Spencer's hyper stores are destination stores, of more than 15,000 sq. ft in size. They
offer everything under one roof. The merchandise ranges from fruits & vegetables,
processed foods (Ready to Eat, Ready to Cook, FMCG products),specialty foods
including international, sugar free, organic foods, etc…..groceries, meat, chicken, fish,
bakery, chilled and frozen foods, garments, consumer electronics & electrical products,
home care, home décor & home needs, office stationeries, soft toys. Besides, the stores
also comprise book & music retailing, electronic gadgets and IT accessories. On an
average, a Spencer’s hyper stocks 70,000 SKUs across 35,000 items.
• The Spencer's stores are neighborhood stores ranging from 1500 less than 15000 sq. ft.
These stores stock the necessary range and assortment in fruit and vegetables, FMCG
food and non-food, staples and frozen foods and cater to the daily and weekly top-up
shopping needs of the consumer. Some of these stores which have floor area of more than
10,000 sq ft sometimes offer home care products; personal care products, bakery, chilled
and frozen food; baby care, basics in garments and limited range of electronics and
electrical.

Important Point:-


• Fastest growing retail stores with multiple formats and retailing food, apparel, fashion,
electronics, lifestyle products, music and books.
• Established in 1996 and headquarter is in Chennai.
• Retail footage of over 6 million square feet and over 350 Spencer’s stores in 60 cities.
• Spencer’s Retail has a loyalty program. They offer a co-branded credit card with HSBC bank
(HSBC Spencer's Retail Credit Card).
• Spencer's Retail Limited, one of India's largest food first multi-format retailer, has been
awarded the Coca Cola Golden Spoon "Most Admired Food & Grocery Retailer for
Convenience and Express formats" Award at the Food Forum of India, 2009 held in Mumbai
and this is the third award that the organization has received, three years in a row. Spencer’s
was awarded the Turnaround Retailer of the year 2006 at the India Retailers Forum, 2007 in
Mumbai. And Most Evolved Retailer of the year 2007 at the India Retail Forum, 2008.
• With an immense amount of expertise and credibility, Spencer’s Retail has become the
highest benchmark for the Indian retail Industry. In fact, the company’s continuing expansion
plans aim to help Spencer’s Retail meet the challenges of the retail industry in an even better
manner than it does today.

New Ventures
• Spencer’s retail has announced a tie-up with British retailer Woolworths Plc for
exclusively selling its famous toy brand Chad Valley through its outlets.
• Besides the Chad Valley range of toys (available at prices Rs. 49 upwards), Woolworths
is also planning to introduce the Ladybird range of kids wear.
Vision
To “build Spencer’s as the most professionally managed retail business in the country through:-
• Excellence in all operating processes;
• Nurturing and facilitating a learning and growth culture;
• Building a unique retail experience for the customers;
Mission
Strives to exceed the aspirations of its customers for a healthy and fulfilling lifestyle by
providing:-


• The most innovative consumer goods and delectable taste experience.
• The ultimate shopping experience.
• Unsurpassed customer service.
• Unbeatable value
• The ‘next’ place away from home or office to relax and indulge themselves.

Major Future Plan

• It will be going in for public issue within the next 12 months to raise capital for
expansion.
• The company plans to focus on the larger format stores in the identified growth clusters
with higher market potential value and stronger brand equity for Spencer's. These clusters
are Bangalore, Hyderabad, Coastal Andhra Pradesh, Chennai, Delhi NCR, East UP, Pune,
Mumbai, South Kerala, Aurangabad, Punjab and Kolkata.
• The company will be investing Rs. 10 billion over the next 3 years using both internal
source and an IPO.
• The company has already reserved 1 million square feet of space all over the country and
will be creating close to 10,000 jobs in its different formats.
• Spencer’s Retail currently employee’s 4,500 people and has 6 million square feet of
space.
• In every financial year, Spencer’s is increasing its stores from 150 to 250 with a target of
expanding by 400 more in the next two years.
• The company had last year announced a Rs 1,500 investment plan to expand its business
across the country.


• Spencer’s was the first to introduce the concept of music retailing with "Music World"
chain of stores, followed by "Books and Beyond"[Retail chain of Book Stores] and
"RPG Cellucom"[Retail Chain of Mobile Stores]. They are planning to setup 1,500
cellcoms and 400 Music Stores by 2010.
• Spencer’s has announced that it will very soon launch CRT TVs under the brand name
Yashika.
• Spencer’s is all set to enter the standalone Lifestyle Retailing segment by opening
American Lifestyle Brand stores in India - Beverly Hills Polo Club [BHPC]. The
company plans to setup five BHPC stores all in the Delhi NCR region and then move to
other metros.

Formats of Spencer’s Outlets

• Spencer’s has retail footage of over 2 million square feet and over 350 Spencer’s stores in
60 cities.
• The company operates through the following formats:-
Spencer’s Hyper:- A fast growing retail network of hypermarkets with large format
stores in Hyderabad, Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Vizag,
Vijayawada, Aurangabad, Durgapur, Kolkata, Gorakhpur and Warangal.
Spencer’s super: - One of the largest supermarket chains in the food and grocery
segment in India.
Spencer’s Daily: - Small format stores conveniently located with a range of products to
meet daily household needs.


Spencer’s Express: - Food and grocery store next door.
Spencer’s Fresh: - Spencer’s Fresh stores provide with an enjoyable convenient
shopping environment in very own neighborhood.

Spencer’s Hyper:-
• The Spencer’s Hypermarkets are huge destination stores, more than 25,000 square feet 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.

Spencer’s Super:-
• One of the largest supermarket chains in the food and grocery segment in India.
• The Spencer’s Super is the place to go for weekly and monthly shopping.
• About 8000-15,000 square feet 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 and staples, Fresh fruits and vegetables
and many more............

Spencer’s Express:-
• Spencer’s express positioned as the food and grocery store next door.
• These stores are around 1000 square feet in size. They are open from 7 am to 9 pm and
also provide with home delivery.
• The Express store stock dairy products, fruits and vegetable, bread and bread
products, cut vegetables/ready to cook, fruit juices, fresh butter, fresh coffee/tea,
fresh masalas, fresh pickles, fresh ghee, fresh fish and meat.


Spencer’s Daily:-
• Small format stores conveniently located with a range of product to meet daily household
needs.
• The Spencer’s daily store is a friendly neighborhood store, which caters to the entire
daily shopping need –from regular groceries to fresh food and also weekly top-up
shopping.
• 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 Fresh:-
Spencer’s Fresh stores provide with an enjoyable convenient shopping environment in very own
neighborhood. These 2000 square feet air-conditioned stores are well stocked with fresh food of
the very best quality, such as fresh farm produce, vegetables, fruits, milk, eggs, breads and
much more. With an impressive range and a clean, bright and hygienic ambience, Spencer’s
Fresh is far better than the regular sabzi mandi’s or local vegetable markets and at Spencer’s
Fresh consumers not only do get fresh, clean and tasty farm produce but also lowest possible
prices in the locality, yes even lower than sabziwala!

Snapshot:-

Different formats of Spencer’s Retail

Format Stocks Min. Trading Area (sq.ft.)
Spencer’s Express Dairy products, fruits, 1000
vegetables, bread and bread
products, fruit juices, fresh
butter, coffee/tea, masalas,
pickles, ghee, fresh fish and
meats.
Spencer’s Fresh Vegetables, fruits, milk, eggs, 2000
breads and daily use items.


Spencer’s Daily Regular groceries and daily 4000-7000
use products.
Spencer’s Super Home care products, personal 8000-10,000
care products, bakery, chilled
and fresh food, baby care
products and daily use items.
Spencer’s Hyper Miscellaneous and many more More than 25,000

8. iNTrOduCTiON TO mArkET
pOTENTiAL ANd CATChmENT
ANALySiS


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

Total Market Demand:-
The total market demand for a product or service is the total volume that would be bought by a
defined consumer group in a defined geographic area in a defined time period in a defined
marketing environment under a defined level and mix of industry marketing effort. Total market
demand is not a fixed number but a function of the stated conditions.


Market demand in the specific period

Market potential
Market forecast
Market minimum

Planned expenditure
Industry marketing expenditures
Market demand as a function of Industry marketing expenditures
Fig (1): Market Demand
Figure (1) shows the relationship between total market demand and various market conditions. In
this figure, upper limit of market demand is called Market Potential.
Companies have developed various practical methods for estimating total market demand.
A common method to estimate total market demand is as follows:-
Q=n×q×p
Where Q = total market demand
n = number of possible buyers in the market
q = quantity purchased by an average buyer per year
p = price of an avg. unit

Benefits of Market Potential Analysis:-

• Understand market potential for a single store, network of stores or a new market.
• Deploy resources effectively by ranking markets in priority order.
• Forecast total opportunity in terms of number of customers and revenue potential.
• Estimate your market share.

A market potential analysis may include:

• A customer profile to understand where to find more like them


• Market penetration and market share reports showing performance in existing markets
and expected performance in new markets
• Market ranking reports allowing you to prioritize resource deployment into new markets
• A geographic view of market opportunity on detailed maps

Market potential can be expressed as a function of:

• The number of customers purchasing
• Amount purchased
• Frequency of purchase

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

Bottom Up or Top Down Market Analysis:-

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


CATCHMENT ANALYSIS

Introduction about Dr. A.S. Rao Nagar, Hyderabad:-

Dr. A.S. Rao Nagar is developing area of Hyderabad and it consists of all class of family. In his
area 5.4% families belong to Socio Economy Class (SEC) A+, 38.6% families belong to SEC A,
52% families belong to SEC B and 4% families belong to SEC C. All this result has been found
with the help of Area Mapping technique and catchment analysis, all these data are approximate.
By all these data we can find that this area is having good market opportunities retail
Supermarket.

• If a company doesn’t know who its shoppers are, how can company give them what they
want? If company doesn’t know where they come from, how can company communicate
with them? Finding answers to these questions is vital but catchment analysis is very
helpful in that.
• A company or retail store will be able to optimize its activities if and only if company
knows its market in depth. Its market penetration, its success and its potential depend on


geographical factors, hard to grasp, hard to fully understand, but catchment analysis is
very helpful.
• In the catchment analysis, first part is the area mapping of that local market and through
that finds the locations of the competitors, customers and traffic between them. Through
that we quantify the sizes and potentials of that local catchment areas and market of that
area as whole.
• With the help of catchment analysis, company knows the best location for business, target
and potential customers

Type of catchment area
There are four type of catchment that is following
Unitary Catchment

It is hub of the catchment area around the outlet, from where maximum number of people
comes to the retail stores for shopping.

Secondary Catchment

This area is called secondary catchment area which is around 2 km far away retail stores
from where some people come to the shop for shopping.

Tertiary Catchment

The area from where only some selected or loyal customers come to the retail stores that
is more than 2 km far from outlet.

Outer Catchment

Outer catchment area is totally outer area from where only less no. of person sometimes
comes to the outlet,


9. dATA ANALySiS ANd
iNTErprETATiON


Data Analysis and Interpretation

Research in retail is very essential, as customer preferences and choices are dynamic and change
frequently, the retail company needs to understand these before redesigning its processes for
enhancing business and many more. Since customer interaction takes place at the store and near
store, there is a big opportunity to gather first hand information and feedback from customers
through research and survey. Research is carried out at the retail level for concept testing,
business feasibility analysis, identification of the right product mix, target customer and market
potential.

The major objectives of analysis of data are:-
• To evaluate and enhance data quality
• Describe the study population and its relationship
• Examine effects of other relevant factors
• Seek further insight into the relationship observed or not observed
• Evaluate impact and importance


Target Customers- Age Wise:-
This Table reveals about age group of customers at Dr. A.S. Rao Nagar, Hyderabad.
Table-1

Age Group of Respondents
Age Group No. of Respondents % of Respondents
18-25 134 33.5
26-35 152 38
36-45 56 14
46-55 27 6.75
56+ 31 7.75


Pie Chart: 1
Source: Primary Data
Inference:
From the Table-1 and Pie chart-1 depicted above,
Out of 400 respondents who answerd the questionnaire, 33.5% people fall in the age group 18-25
years, 38% people fall in the age group 26-35 years,14% people fall in the age group 36-45
years, 6.75% people fall in the age group 46-55 years and 7.75% people fall in the age group 56+
years.
From the above analysis, it is observed that majority of the residents fall in the age group 18-25
and 26-35
No. of family member’s of the Respondents

This table explains about No. of family member’s in a family of Dr. A.S. Rao Nagar, Hyderabad.
Table-2
No. of Family and Family Member's of Respondent
Member's of family No. of Family % of Family
1 2 0.5
2 20 5
3 42 10.5
4 123 30.75
5 138 34.5
6 54 13.5
7 15 3.75


8 4 1
9 1 0.25
11 1 0.25

Column Chart-2

Inference:
From the Table-2, Column chart-2 depicted above,
Out of 400 respondents who answerd the questionnaire, 34.5 people belong to 5 member’s
family, 33.75% people belong to 4 member’s family, 13.5% people belong to 6 member’s
family, 10.5% people belong to 3 member’s family, 5% people belong to 2 member’s family, 1%
people belong to 8 member’s family.


Target Customer- Education Wise
This table explains about education level of customers of Dr. A.S. Rao Nagar.
Table-3

Education Level of Respondents
Education Level No. of Respondents % of Respondents
S.S.C. 7 1.75
Inter 28 7
Graduate 215 53.75
Post Graduate 138 34.5
Others 12 3


Pie Chart-3

Inference:
From the table, pie chart depicted above,
Out of 400 respondents who answered the questionnaire, 1.75% people belong to S.S.C. category
education level, 7% people belong to Inter category education level, 53.75% people to Graduate
category education level, 34.5% people belong to Post Graduate category education level and 3%
people belong to others category education level.

Occupation of Respondents
This table describes the occupation of respondents who gave the answer of questionnaire and explain
class of customers of Dr. A.S. Rao Nagar, Hyderabad.

Table-4

Occupation of Respondents
Occupations No. of Respondents % of Respondents
Student 73 18.25
House Wife 27 6.75
Service 172 43
Business 87 21.75
Others 41 10.25


Pie Chart-4
Inference:
From the table, pie chart depicted above,
On this basis of 400 respondents who answered the questionnaire, 43% people belong to Service
category, 21.75% people belong to Business category, 18.25% belong to Student category,
6.75% people belong to House Wife category and 10.25% people belong to Others category.
Monthly Income of Respondents
This table states about the monthly income level of Respondents who gave the answer of this
survey questionnaire and belong to Dr. A.S. Rao Nagar, Hyderabad & so taken by me as a
sample of the entire population for the analysis.
Table-5

Monthly Income of Respondents
Monthly Income No. of Respondents % of Respondents
< 5k 68 17%
5k-10k 78 19.5%
10k-20k 149 37.25%
> 20k 105 26.25%


Pie Chart- 5
Source: - Primary Data
Inference:
From the Table-5, Pie Chart-5 depicted above,
Out of 400 respondents who answered the questionnaire, 17% people belong less than 5000
monthly income category, 19.5% people belong to 5000-10,000 monthly income category,
37.25% people belong 10,000-20,000 monthly income category and 26% people belong to more
than 20,000 monthly income category.
Regular shopping place of Respondents
This question reveals about preference of Respondents regarding retail stores where they shop
regularly.
Table-6

Regular Shopping Place of Respondents
Shopping Place No. of Respondents % of Respondents
Supermarket's 284 71
Kirana Stores 45 11.25
Others 5 1.25
Supermarket's & Kirana Stores 66 16.5


Pie Chart-6
Source:- Primary Data
Inference:- From the Table-6, Pie Chart-6 depicted above,
• Out of 400 respondents who answered the questionnaire, 71% people go to
Supermarket’s for shopping, 16.50% people shop at Supermarket’s and Kirana Stores,
11.25% people shop at Kirana Stores and 1.25% people shop at others.

Shopping place of Respondents is Spencer’s or not

This question tells about respondents shop at Spencer’s or not and also it tells about brand
awareness of Spencer’s in market.

Table-6
No. of Respondents who visit Spencer's for shopping
No. of Respondents Shop at Spencer's % of Respondents
203 Yes 50.75%
197 No 49.25%


Bar Chart-6

Inference:-
From the Table-6, Bar Chart-6 depicted above,
• Out of 400 respondents who answered the questionnaire, 50.75% people go to Spencer’s
for shopping but not regularly. By this question it reveals that brand awareness of
Spencer’s in Dr. A.S. Rao Nagar is nice.
• 49.25% people do not go Spencer’s.

No. of times in a week shopping at Spencer’s by the Respondents
This table explains about frequency of shopping in a week by the respondents in a week.
Table-7

Shopping at Spencer's in a week by Respondents
No. of times in a week No. of Respondents % of Respondents
1 76 19
2 98 24.5
3 20 5
4 8 2
20 1 0.25
203 50.75


Column Chart-7
Inference:-
From the table, column chart depicted above,
• On the basis of 400 respondents who answered the questionnaire, 19% people go to
Spencer’s for shopping once in a week, 24.5% people shop at Spencer’s twice in a week.
5% people shop at Spencer’s thrice in a week and 2.25% people shop at Spencer’s 4times
in a week.

Perception of Customers about visiting to supermarket

This table reveals the opinion of customers for visiting a Supermarket. It means the convenience
of the customer to visit a supermarket based on the different factors like better price,
accessibility, availability of variety of products, parking facility, store ambience (it determined
by store layout, soothing music, tempting visual display of the products with self selection
facility, etc.), customer service, range of items, product quality, value for money, offers and
discounts, after sales service.

Table-8

Perception of customers for visiting Supermarket


% of Very
Poor % of Poor % of Avg. % of Good % of VG % of No
Outlook Response Response Response Response Response Response

Better Price 0% 4% 28.50% 44.75% 12% 10.75%
Good Quality
of Products 0% 0.25% 5.5% 46.75% 36.75% 10.75%
Variety of
Product to
choose 0.5% 3.75% 37.25% 35% 12.75% 10.75%
Parking
Facilities 0.75% 5.75% 43.25% 33% 6% 11.25%

Convenience or
Opening Hours 0% 1.25% 3% 57% 28% 10.75
Product
Knowledge of
Employee 1% 1.5% 22.5% 57% 7.25% 10.75%
Store
Comfortable to
shop-in 0% 0.5% 6.5% 43.5% 38.75% 10.75%

For Better Price


Column Chart-8

Inference:-
From the Table-8, Column Chart-8 depicted above,
• Out of 400 respondents who answered the questionnaire, 44.75% said good about pricing
of products, 28.5% said average, 12% said very good and none said very poor regarding
Better Price in reasons for visiting a Supermarket.


Column Chart-9

Inference:-
• Out of 400 respondents who answered the questionnaire, 46.75% said good about quality
of products, 5.5% said average, 36.75% said very good and none said very poor regarding
Good Quality of Products in reasons for visiting a Supermarket.


Column Chart-10

Inference:-
From the Table, Column Chart-10 depicted above,
• Out of 400 respondents who answered the questionnaire, 35% said good about
availability of variety of products, 37.25% said average, 12.75% said very good and none
said very poor regarding Variety of Products to choose in reasons for visiting a
Supermarket.


Column Chart-11

Inference:-
• Out of 400 respondents who answered the questionnaire, Out of 400 respondents who
answered the questionnaire, 33% said good about parking facilities, 43.25% said average,
6% said very good and 0.75% said very poor regarding Parking Facilities in reasons for
visiting a Supermarket.


Column Chart-12
Inference:-
• Out of 400 respondents who answered the questionnaire, 57% said good about
convenience or opening hours, 3% said average, 28% said very good and none said very
poor regarding Convenience or Opening Hours in reasons for visiting a Supermarket.


Column Chart-13

Inference:-
• Out of 400 respondents who answered the questionnaire, 57% said good about products
knowledge of employee, 22.5% said average, 7.25% said very good and 1% said very
poor regarding Convenience/Opening Hours in reasons for visiting a Supermarket.


Column Chart-14

Inference:-
• Out of 400 respondents who answered the questionnaire, 43.5% said good about Store
comfortable to shop-in (ambience), 6.5% said average, 38.75% said very good and none
said very poor regarding Store Comfortable to Shop-in (Ambience) in reasons for visiting
a Supermarket.
Hence from above analysis, customers show the maximum view on following things in the
reasons for visiting a supermarket— product knowkedge of employee (57%),
Convenience/Opening Hours (57%),Good quality of Products (46.75), Better Price (44.75%),
Store comfortable to shop-in ( 43.50%), Parking Facilities (43.25%) and Variety of products to
choose (37.25%).


Respondents View in selecting a Supermarket
This question tells about important things for a Supermarket on the basis of customer’s view.

Table-9

Important things in selecting a Supermarket in Respondents view (in %)
Somewhat Somewhat Extremely No
Outlook Not all Imp. Un Imp. Neutral Imp. Imp Response

Security 1.50% 5.50% 13% 28.50% 41.75% 9.75%
Close to where
You live 1.75% 2% 16% 20% 50.50% 9.75%
Convenience of
Parking 0% 0.75% 5.75% 57.75% 26% 9.75%
Courteous
Friendly
Employee 0% 0% 5% 20.25% 65% 9.75%
Offers Several
brands 2.50% 1% 4.50% 29.75% 52.50% 9.75%
High quality
Fruits &
Vegetables 0.50% 0.50% 5% 11.75% 72.50% 9.75%
Diff. Variety of
Dairy product 8.75% 1% 5% 32% 43.50% 9.75%
Non Veg. & Sea
food 6% 12.75% 10.50% 52.25% 8.25% 10.25%

Home Delivery 0.50% 1.25% 4.25% 42.25% 42% 9.75%


Column Chart-15

Inference:-
From the Column Chart-15 depicted above,
• Out of 400 respondents who answered the questionnaire, 41.75% respondents give their
view regarding Security as extremely important, 28.50% respondents somewhat
important, 13% respondents neutral and 5.50% respondents somewhat important during
selecting a Supermarket.


Column Chart-16

Inference:-
view regarding Close to where you live as extremely important, 20% respondents
somewhat important, 16% respondents neutral during selecting a Supermarket.


Column Chart-17

Inference:-
view regarding Convenience of Parking somewhat important, 26% respondents extremely
important, 5.57% respondents neutral during selecting a Supermarket.


Column Chart-18

Inference:-
• Out of 400 respondents who answered the questionnaire, 65% respondents give their
view regarding Courteous friendly employees as extremely important, 20.25%
respondents somewhat important, 5% respondents neutral during selecting a
Supermarket.


Column Chart-19

Inference:-
view regarding Offers several brands as extremely important, 29.75% respondents
somewhat important and 4.5% respondents neutral.


Column Chart-20

Inference:-
view regarding High quality fruits and vegetable as extremely important, 11.75%
respondents somewhat important, 5% respondents neutral and 9.75% respondents No
Response during selecting a Supermarket.


Column Chart-21

Inference:-
view regarding Offers different of dairy products as extremely important, 32%
respondents somewhat important, 5% respondents neutral and 9.75% respondents No
Response during selecting a Supermarket.


Column Chart-22

Inference:-
view regarding Sells fresh Non-Veg. & Sea food as somewhat important, 12.75%
respondents 12.75 somewhat Un important, 10.50% respondents Neutral, 10.25%
respondents No Response during selecting a Supermarket.


Column Chart-23

Inference:-
view regarding Home Delivery as somewhat important, 42% respondents extremely
important and 9.75% respondents No Response during selecting a Supermarket.


Customers Expectation with respect to Services
This table tells about what kinds of services, customers expect from Spencer’s and other
Supermarket

Table-10
Kind of Services customers expect
Services Important Not Important No Response
Fast Billing 90.25% 4.50% 5.25%
Ticket Booking Counter's 24.50% 69.25% 6.25%
Ample Parking 70.25% 24.25% 5.50%
Home Delivery 79.50% 15.25% 5.25%
All C. & D. cards
Should accept 92.50% 2% 5.50%

Column Chart-24


Inference:-
view regarding Fast Billing as important, 69.25% respondents give their view regarding
Ticket Booking Counter’s as not important and 24.50% respondents important, 70.25%
respondents give their view regarding Ample Parking as important, 79.50%
respondents give their view regarding Home Delivery as important and 92.50%
respondents give their view regarding all credit and debit cards should accept as
important.
SEC Category of Family at Dr. A.S. Rao Nagar
This table explains about SEC (Socio Economic Class) category of family at Dr. A.S. Rao Nagar,
Hyderabad. This is done with the help of Area Mapping technique.
Table -11

SEC Category of Family
Family class No. of Family % of Family
SEC A + 538 5.40%
SEC A 3824 38.60%
SEC B 5148 52%
SEC C 391 4%


Pie Chart-25
Source: – Primary Data
Inference:- From the Table-11, Column Chart-25 depicted above
Dr. A.S. Rao Nagar is developing area of Hyderabad and it consists of all class of family. In his
area 5.4% families belong to Socio Economy Class (SEC) A+, 38.6% families belong to SEC A,
52% families belong to SEC B and 4% families belong to SEC C. All this result has been found
with the help of Area Mapping technique and all these data are approximate. By all these data we
can find that this area is having good market opportunities retail Supermarket


10. FiNdiNgS OF ThE STudy

Findings of the Study

After completing the survey and analyzing the responses of the persons contacted. I came across
the following facts—
• Consumer life style and spending pattern are changing, more and more customers are
visiting supermarket.
• Demographics of Dr. A.S. Rao Nagar are very nice for retail business. In this area 38%
people belong 26-35 age group category, 33.5% people belong to 18-25 age group
category, and 14% people belong to 36-45 age group category and rest other age group.


• Dr. A.S. Rao Nagar is mixture of Joint family and Nuclear family because 34.5% family
are having only 5 family member’s, 30.75% family are having only 4family member’s,
13.5% family are having 6 family member’s and 10.5% family are having 3 family
member’s.
• Residents of Dr. A.S. Rao Nagar are well qualified. 53.75% people are Graduate, 34.5%
people are Post Graduate and 7% people have studied Intermediate/ S.S.C.
• In Dr. A.S. Rao Nagar area most of the people are service man. 43% people are job
holders, 21.75% people are business man, 18.25% people are students and 6.45% women
are house wives, 10.25% people do other works. Among the women respondent most of
them are job holders or business women. This finding indicates that earning person is the
decision maker for a family even for shopping or any other work.
• As we know in this area service holder people are maximum and this shows their monthly
income would be good. In this area, 37.25% people earn 10,000-20,000 monthly, 26.25%
people earn more than 20,000, 19.50% people earn 5000-10,000 and 17% people earn
less than 5000 monthly.
• In Dr. A.S. Rao Nagar, 71 % people go to Supermarket regularly for shopping only,
16.5% people go to Supermarket & Kirana Store both and 11.25% people got to Kirana
Store for shopping only. This finding shows that supermarket customers are more in this
area, Spencer’s can enhance its business by providing better services.
• In Dr. A.S. Rao Nagar, 50.75% people go to Spencer’s for shopping and 49.25% people
don’t go. In 50.75% people, 19% people shop at Spencer’s once in a week, 24.5% people
shop at Spencer’s twice in a week, 5% people shop at Spencer’s thrice in a week and
2.25% people shop at Spencer’s several times in a week.
• In reasons for visiting a Supermarket, people of Dr. A.S. Rao Nagar gave their
preferences regarding Better Price 44.75% good &28.50% average, regarding Good
quality of products 46.75% good & 36.75% very good, regarding Variety of products
to choose 37.25% average, 35% good & 12.75% very good, regarding Parking
Facilities, 43.25% average & 33% good, regarding Convenience/Opening Hours 57%
good, 28% very good, regarding Product Knowledge of Employee 57% good, 22.5%
average & 7.25% very good, regarding Store comfortable to shop-in (ambience) 43.5%
good & 38.75% very good.


• In the important things in selecting a Supermarket, people of Dr. A.S. Rao Nagar gave
their view- regarding Security - 41.75% extremely important & 28.50% somewhat
important, regarding Close to where you live – 50.50% extremely important & 20%
somewhat important, regarding Convenience of Parking – 57.75% somewhat important
& 26% extremely important, regarding Courteous friendly employee- 65% extremely
important, 20.25% somewhat important, regarding Offers several brand-52.50%
extremely important & 29.75% somewhat important, regarding high quality fruits and
vegetables- 72.50% extremely important, regarding Offer different variety of dairy
products- 43.50% extremely important & 32% somewhat important, regarding sells
fresh Non-Veg. and Seafood- 52.25% somewhat important % 8.25% extremely
important, regarding home delivery- 42% extremely important & 42.25% somewhat
important.
• People of Dr. A.S. Rao Nagar gave their expectation regarding different-different
services, -- Fast billing – 90.25% important, Ticket booking counter’s- 69.25% not
important & 24.50% important, Ample Parking – 70.25% important, Home Delivery-
79.50% important, All Credit & Debit cards should accept – 92.50% important.
• Dr. A.S. Rao Nagar is developing area of Hyderabad and it consists of all class of family.
In his area 5.4% families belong to Socio Economy Class (SEC) A+, 38.6% families
belong to SEC A, 52% families belong to SEC B and 4% families belong to SEC C. By
all these data we can find that this area is having good market opportunities retail
Supermarket.
• Most of the customers complained---
• In Spencer’s, several variety of product is not available, stock of 1 variety of any
brand is not sufficient; company should keep more variety of any product.
• We never understand the pricing strategy of Spencer’s Daily.
• Product assortment is not good.
• Arrangement of products is not systematic, we face problem many times for
selection of products.
• Dabur products are not available in sufficient amount.
• Organic products are not available in the Spencer’s Daily since last two month.
• For vegetables and fruits, carry bag is small.


• Store closing time should be increased.
• Most of the customers were not too happy with level of service.
• Maximum time A.C. doesn’t work properly.
• Products are not updated; new launched products are not available.


11. ChALLENgES ANd
OppOrTuNiTiES


Spencer's retail ltd. project report (summer internship project)

Spencer's retail ltd. project report (summer internship project)

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