1. CAPSTONE PROJECT REPORT ON
“Brand Awareness of Spencer’s and Its
Comparative Analysis With
other
Retail Outlets”
BY
Praveen Pandey C
2. Spencer's retail is the largest supermarket chain
in India. They offer a complete range of
products & durables, from bread to bed cover;
from toothpaste to even television sets. Today
Spencer's has 100 stores spread across 25
cities with a retail trading area of more than
half a million square feet, and we're growing
rapidly. Spencer's is the shopping choice for
millions across the country, 2.8 million to be
exact, who frequent visit stores every month.
3. 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.
4. Major Investment plan
– It will be going in for a public issue within the next
12 months to raise capital for expansion.
– The company will be investing Rs.10 billion over
the next three years using both internal sources
and an IPO.
– The company has already reserved 1 million sq ft
of space all over the country and will be creating
close to 10,000 jobs in its different formats.
– Spencer’s Retail currently employs 4,500 people
and has 6 million sq ft of space.
5. Snapshot
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, 1000
fresh coffee/tea, masalas,
pickles, Ghee, Fish and
meat.
Spencer’s Fresh vegetables, fruit, milk, 2000
eggs, breads
Spencer’s daily regular groceries 4000-7000
Spencer’s Super home care products; 8000-15000
personal care products,
Bakery, Chilled and
frozen food; Baby care
products
Spencer’s Hyper Miscellaneous More than 25000
6. • Big Bazaar is not just another hypermarket. It caters to
every need of your family. Where Big Bazaar scores
over other stores is its value for money proposition for
the Indian customers.
• At Big Bazaar, you will definitely get the best products
at the best prices - that’s what it guarantee. With the
ever increasing array of private labels, it has opened
the doors into the world of fashion and general
merchandise including home furnishings, utensils,
crockery, cutlery, sports goods and much more at
prices that will surprise you. And this is just the
beginning. Big Bazaar plans to add much more to
complete your shopping experience.
7. • What started as a humble one store enterprise
in 1986 in Kolkata (erstwhile, Calcutta) is today
a conglomerate encompassing 180
showrooms in 100 cities / 24 states. India’s
first hyper-market has also been opened for
the Indian consumer by Vishal. Situated in the
national capital Delhi this store boasts of the
singe largest collection of goods and
commodities sold under one roof in India.
8. • Reliance Retail, Ltd. operates retail outlets in
India. Its retail outlets offer
foods, groceries, apparel and footwear, lifestyle
and home improvement products, electronic
goods, and farm implements and inputs. The
company’s outlets also provide
vegetables, fruits, and flowers. It focuses on
consumer goods, consumer durables, travel
services, energy, entertainment and leisure, and
health and well-being products
9. OBJECTIVES OF THE STUDY
• This project is based on the comparative study
of consumer behavior towards Brand
awareness of Spencer’s and its comparative
analysis with Big Bazaar & other retail
organizations in Chennai city. Objectives of the
study are:
• To study about the Brand awareness of
Spencer’s.
• To analyze the organized retailer’s profitability
drivers on the basis of Garments, Gifts, Cards
& Music Department.
10. Research Methodology
• Sample Size and Design:
• A sample of 100 peoples & 3 stores was taken on the basis of convenience.
The actual customers were contacted on the basis of random sampling.
• Data Collection:
The data, which is collected for the purpose of study, is divided into 2
bases:
• Primary Source: The primary data will be comprising of information
survey of “Brand awareness of Spencer’s and its comparative analysis with
Big Bazaar & other retail organizations ”. The data has been collected
directly from respondent & with the help of structured questionnaires.
• Secondary Source: The secondary data has been collected from
Company’s website and price list of the companies.
• Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical
techniques. The technique that I have used is pie graphs, Bar graphs.
11. LIMITATIONS OF THE STUDY
• In attempt to make this project authentic and reliable, every
possible aspect of the topic was kept in mind. Nevertheless, despite
of fact constraints were at play during the formulation of this
project. The main limitations are as follows:
• Due to limitation of time only 100 people & 3 stores were selected
for the study. So the sample of people & stores was not enough to
generalize the findings of the study.
• The main source of data for the study was primary data with the
help of self-administered questionnaires. Hence, the chances of
unbiased information are less.
• Retailers were hesitant to disclose the true facts.
12. Survey
• What is the thought of people about Spencer’s retail?
– 1) Have you heard of Spencer’?
Yes 93
No 7
Yes
No
14. 3.Visited Chennai Spencer’s once, twice or more?
Once 12
Twice 19
More than Twice 69
Once
Twice
More than Twice
15. 4.Peoples not visited to local retail stores?
Local shops 10.0
Big Bazaar 20.0
Any other stores 70.0
Local shops
Big Bazaar
Any other stores
16. 5.Spencer’s products range available to customers?
Spencer’s 3%
Big Bazaar 5%
Vishal Mega Mart 15%
Others 77%
Spencer’s
Big bazaar
Vishal Mega Mart
Others
17. 6.Spencer’s in FMCG?
Spencer’s 67%
Big Bazaar 25%
Vishal Mega Mart 8%
Spencer’s
Big Bazaar
Vishal Mega Mart
20. Findings
• Spencer’s have good brand awareness among the consumers.
• Big Bazaar has better product range than Spencer’s.
• Big Bazaar have greater acceptance among the consumers in
comparison to Spencer’s.
• FMCG products have major acceptance of all offerings of Spencer’s
among consumers.
• The consumers are not much satisfied of the offers introduced by
Spencer’s.
• Big Bazaar has better promotional schemes than Spencer’s.
21. Various Departments @ Spencer’s
Following Dept.are the main sources of
income for the Spencer’s
• GARMENTS DEPARTMENT
• GIFTS DEPARTMENT
• MUSIC DEPARTMENT
22. 1)Garment Department:
• Overview:
In Garment department the products are mainly the major
international readymade brands and price ranges lies between
Rs.800 to Rs.2000 averagely which is meant for a few Indians
customers.
• Findings:
The products exclusively for a certain income level customers.
Maximum products are unreachable for the medium and average
income level customers.
• Suggestions:
They are focusing a very few Indian customers and the most of the
Indian consumers can’t afford this price range. So if they want to
increase their market share in the Indian retail Industry they should
introduce such product range also which can be affordable for the
medium level income groups and the main customer in the retail
industry lies within it.
23. 2) Gifts Department
• Overview:
Gifts department is consisting of various product categories from
home furnishing products to personal grooming products.
• Findings:
In the Spencer we have found a wider range of glass made and
metal products which are exclusive and also the quality isn’t up to
the price levels. Whatever, the stock is sufficient to satisfy its
customers but the price range is found very high as a gift product in
this department.
. Suggestions:
Again the Indian retail industry is targeting the medium level income
group people as its increasing day by day but the products in the
Spencer store is meant only for the high class consumers which is
very low in population in India. Also an important point is noted
that though the volume is sufficient but the variety in product
categories as a gift isn’t sufficient.
24. 3) Music Department
• Overview:
Music section consist of Music CD;s, Game CD & DVD’s and also
Movie DVD’s.
Findings:
• Spencer has introduced very low range cd & dvd’s like “Moserbear”
music and movie cd- dvd’s and price range lies in between Rs 30
to 100. Basically they are gaining a competitive business at the age
of piracy products in this industry. Also they have a very good
collection in games cd-dvd categories at a low price range of Rs 100
to 200 whereas if anyone go to the open market the average price
range is Rs 300 to 400 for the copyright product.
• Suggestions:
Spencer is earning more revenue by its music section. In the music
it’s found that the collection of cd’s and educational cd’s low than
the music games cds. They are emphasizing on the low price mp3
and game cds where as there is also a demand for educational and
movies cd-dvd’s.
25. SUGGESTIONS AND
RECOMMENDATIONS
• In order to improve its business, Spencer’s
should introduce more competitive
promotional schemes such as those in Big
Bazaar.
• The product range of Spencer’s should be
improved in order to match that existing in Big
Bazaar.
• For promotional offers, company should go for
free gifts rather than going for other ways