A STUDY ON

STORE OPERATION AT SPENCER‟S RETAIL Ltd

With special reference to

VISAKHAPATNAM.

A Project work submitted to IIAM for partial fulfillment for the award of the degree

Of

POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT

Submitted by

SINGMOHANTHI VENKAT RAVIKIRAN

(ROLL NO-24077)

Under the Esteemed guidance of

KIRAN.OMMI, MS (USA),

(Associate Professor)

INTEGRAL INSTITUTE OF ADVANCED MANAGEMENT

(Approved by AICTE, Ministry of HRD )

PLOT NO-10,SECTOR-7,M.V.P. COLONY

VISAKHAPATNAM - 530 017.

(2010-2012)

DECLARATION

I hereby declare that this project work entitled „A STUDY ON STORE

OPERATION AT SPENCER‟S RETAIL Ltd.‟‟ with special reference to Spencer‟s

Hyper Retail Ltd., Visakhapatnam submitted to IIAM, VISAKHAPATNAM in partial

fulfillment for the award of Degree of POST GRADUATE DIPLOMA IN

BUSINESS MANAGEMENT is entirely based on my own study & is being

submitted for the first time and it has not been submitted to any other University or

Institution for any degree or diploma.

( SINGMOHANTHI VENKAT RAVIKIRAN)

INTEGRAL INSTITUTE OF ADVANCED MANAGEMENT

(Approved by AICTE, Ministry of HRD)

PLOT NO-10,SECTOR-7, M.V.P. COLONY,

VISAKHAPATNAM- 530 017

CERTIFICATE

KIRAN OMMI

MS. (USA)

This is to certify that the project report entitled „A STUDY ON STORE

OPERATION AT SPENCER‟S RETAIL Ltd.‟‟ With special reference to Spencer‟s

Hyper Retail Ltd., Visakhapatnam is being submitted by Mr. SINGMOHANTHI

VENKAT RAVIKIRAN in partial fulfillment for the award of the Degree of

PGDBM has been carried out by him under my guidance and supervision.

Place: VISAKHAPATNAM KIRAN.OMMI

DATE: (Project Guide )

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide KIRAN.OMMI , for his

valuable guidance and cooperation throughout the project work and all other faculty

members who helped me directly and indirectly for the successful completion of my

project work.

I am also thankful to our beloved Director Prof.

B. PARVATHISWARA RAO for giving me the permission to carryout the project work.

I also express my gratitude and heartfelt thanks to my company guide SRIKAR,

Regional Marketing Manager, Spencer‟s Hyper Retail Ltd., Visakhapatnam, who

extended their cooperation and timely support and providing necessary data for early

completion of my project work.

Finally I would like to express my sincere thanks to my parents and

friends whose unremarkable encouragement had helped me throughout my educational

endeavor and to do this project work.

(SINGMOHANTHI VENKAT RAVIKIRAN )

CONTENTS

CHAPTER 1 INTRODUCTION

ABSTRACT

INTRODUCTION TO THE PROJECT

NEED FOR THE STUDY

OBJECTIVE OF THE STUDY

METHODOLOGY OF STUDY

LIMITATION OF THE STUDY

CHAPTER 2 RETAIL INDUSTRY

INTRODUCTION TO RETAILING

CONCEPT OF RETAILING

IMPORTANCE OF RETAILING

RETAIL IN FUTURE

TECHNOLOGY IN RETAIL

CHAPTER 3 COMPANY PROFILE

RPG GROUP Ltd

SPENCER‟S RETAIL Ltd

CHAPTER 4 STORE PROCESS

STORE OPERATIONS

DUTIES OF STORE MANAGER

STAFFING

CHAPTER 5 FUNCTIONAL ASPECTS OF

SUPPLY CHAIN MANAGEMENT

SALES PROMOTION

ADVERTISING

VISUAL MERCHANDISE

CHAPTER 6 SUVERY REPORT

FINDINGS

SUGGESTIONS

BIBLIOGRAPHAY

CHAPTER- 1 Abstract:

There are certain aspects that are vital to be observed in any retail

store such as front-end operations, back-end operations, store layout,

customer relation management, visual merchadising, inventory

management, promotional activities….etc .This study explains all these

aspects in particular and emphasizes for an effective way to the retailers to

improve their ability to achieve the targeted goals and enhance the

profitability of the organization.

The project is aimed at the operations (business development) of a

store engaged in retail business and studies its management, growth

expansion program and other points. Business development is two types

first is the income generation and by increasing the business of store. The

marketing and business development team is responsible for business

development of store and in turn of the organization. They should be

creative and proactive to attain the task given .They must know how to take

competitive advantage over the competitors. The business development

plays an important role in retailing as the organized retailer operates at very

thin margins. So any additional income to the store is advantage to the

organization.

Based on the information presented before on the aspects relating to

concepts, objectives, purposes and /or importance .It is understood that the

concept of “business development” is one of the important areas in retailing.

Further it is also understand that based on the profile of the organization

presented in chapter-2, the organizations is one of the leading and important

retail organizations at present.

INTRODUCTION

Retail comes from the French word retailer which refers to

“cutting off, clip and divide “in terms of tailoring (1365). It was first

recorded as a noun with the meaning of a “sale in small quantities‟” in 1433.

Its literal meaning was large quantities from the manufacturers or importers,

either directly or through wholesaler, and then sells individual items or

small quantities to the general public or end-user customer, usually in a

shop, also called a store. Retailer is at the end of the supply chain. Marketers

see retailing as a part of their overall distribution strategy.

Retailing business is quite familiar in foreign countries and

famous department stores like burdens and Macy‟s , discount stores like

the Gap, Zale‟s jewelers and toys „R‟ us ,are all renewed companies having

several chain branches in different countries countries and doing business

internationally.

In India through retailing business through chain shops is

emerging as a new business, several retail stores like Reliance, BigBazar,

Megamart…etc have already enter in retail business and achieved

phenomenal business growth. Due to India„s healthy domestic economical

growth several multi-national companies are eying to enter the fray. As

india is a potential market for retail business because of population. The

same has already been proved in communications and auto sector. further ,

service providers like dentists , hotels and hair salons and on-line stores,

likeAmazon.com,Bazee.com ,E-Bay also come under retailers. Many

business ,like Home depot, though they do business in both wholesale and

retail business because they sell to consumers directly .Other business ,like

The Limited are both manufactures and retailers . Regardless of other

functions these business perform, they are retail.

NEED FOR THE STUDY

Retailing is evolving into a global, high-tech business. There are many

organizations such as Wal-mart, Carrefour, Food Lion, reliance,

Metro……etc are pioneers in this retail sectored.

Retailers are using sophisticated communication and information system to

manage their business.

The growing power of the large retail has increased their ability to demand

trade.

Increase in competition in retail had become obvious in this industry to

maintain effective in store operations strategies.

Customers often aren‟t aware of the sophisticated business decisions retail

managers make and the technologies they use to provide goods and

services.

OBJECTIVE OF THE STUDY

The objective of the project study to know

To benchmark the various operations (business development) in retail store.

To know how well the company policies and procedures are put into practice.

To know what generally customer looks for from a service organization.

To identify the problems and suggest the required measures to improve the

performance of the company.

METHODOLOGY OF THE STUDY

The methodology of this project runs as stated below. The data was

collected from

1. Primary sources

2. Secondary sources

PRIMARY SOURCES:

Observation method

Interview method

The primary information is collected by using a structured

questionnaire and also interviews were held with some of the respondents

and staff of the organizations.

SECONDARY SOURCES:

Secondary data was collected through annual reports of the

organizations. The information‟s so collected is tabulated systematically and

analyzed meaningfully by using various statically techniques wherever

necessary. This helped a lot in making appropriate suggestions and drawing

meaningful conclusions.

LIMITATION OF THE STUDY

Respondent‟s busy schedule /routines did not give them enough time to

respond properly.

Fear of top management may have prohibited the employee to give their

true opinion.

Financial data could not be accessed due to company‟s confidential

clause.

CHAPTER- 2

Introduction:

India‟s retail market which is seen as THE GOLDMINE by global

players has grabbed attention of the most developed nations. This is no

wonder to the one who knows that the total Indian retail market is US

$350bn. (16, 00,000 crore INR approx.) of which organized retailing is

only around 3 percent i.e. US $8bn (36,000 crore INR approx).“Retailing

includes all activities involved in selling goods or services directly to final

consumers for personal, non-business use. A retailer or retail store is any

business enterprise whose sales volume comes primarily from retailing.”

Retail is India's largest industry, accounting for over 10 per cent of the

country's GDP and around eight per cent of the employment.

Retail industry in India is at the crossroads. It has emerged as one

of the most dynamic and fast paced industries with several players entering

the market. The presence of 15million kirana stores brings into light the

very fact that the Indian retail industry is highly fragmented/ unorganized.

Retailing in India is gradually inching its way toward becoming the next

boom industry, org shopping has altered in terms of format and consumer

buying behavior, ushering in a revolution in shopping in India. Modern

retail has entered India as seen in sprawling shopping centers, multi-

storeyed malls and huge complexes offer shopping, entertainment and food

all under one roof.

The future of Indian retailing may even witness the concept of 24

hour retailing. Even though this concept has been in existence in few retail

segments like pharmaceuticals and fuel, it still remains to be a challenge for

other segments like food and groceries, apparel etc to adopt this trend.

Although the organized retailing in India is coming up in a big way, it

cannot simply ignore the competition from the conventional stores because

of various factors like reach, extending credit facility and other intangible

factors like the human touch which are provided only by the conventional

stores.

Global Scenario:

Retail stores constitute 20% of US GDP & are the 3 rd largest

employer segment in USA. China on the other hand has attracted several

global retailers in recent times. Retail sector employs 7% of the population

in China. Major retailers like Wal-Mart & Carrefour have already entered

the Chinese market. In the year 2003, Wal-Mart & Carrefour had sales of

US $ 70.4 Crore & US $ 160 Crore respectively.

The global retail industry has traveled a long way from a small

beginning to an industry where the world wide retail sales is valued at $ 7 x

10 5 Crore. The top 200 retailers alone accounts for 30 % of the worldwide

demand. Retail turnover in the EU is approximately Euros 2,00,000 Crore

and the sector average growth is showing an upward pattern. The Asian

economies (excluding Japan) are expected to grow at 6% consistently till

2005-06.

On the global Retail stage, little has remained same over the last

decade. One of the few similarities with today is that Wal-Mart was ranked

the top retailer in the world then & it still holds that distinction. Other than

Wal-Mart's dominance, there's a little about today's environment that looks

like the mid-1990s. The global economy has changed, consumer demand

has shifted & retailers' operating systems today are infused with far more

technology than was the case six years ago.

Scenario of Retailing in India

Retailing is the most active and attractive sector of last

decade. While the retailing industry itself has been present since ages in

our country, it is only the recent past that it has witnessed so much

dynamism. The emergence of retailing in India has more to do with the

increased p of modern supply and distributions solution.

Indian retailing today is at an interesting crossroads. The retail

sales are at the highest point in history and new technologies are improving

retail productivity. though there are many opportunities to start a new retail

business, retailers are facing numerous challenges.urchasing power of

buyers, especially post-liberalization, increase in product variety, and

increase in economies of scale, with the aid of modern supply and

distributions solution.

The Facts

Retailing in more developed countries is big business and better

organized that what it is in India. Report published by McKinsey & Co. in

partnership with Confederation of Indian Industry (CII) states that the global

retail business is worth a staggering retailing to unorganized in US is around

80 to 20, in Europe it is 70 to 30, while in Asia it comes to around 20 to 80.

In India the scenario is quiet unique, organized retailing accounts

for a mere 5% of the total retail sector. Although there are around 5 million

retail stores in India, 90% of these have a floor space area of 500 sq.ft. or

less. The emergence of organized retailing in IUS $ 7 trillion. The ratio of

organized The emergence of organized retailing in India is a recent

phenomenon and is concentrated in the top 20 urban towns and cities.

Traditionally retailing in India can be traced to

The emergence of the neighborhood „Kirana‟ stores catering to the

convenience of the consumers

Era of government support for rural retail: Indigenous franchise

model of store chains run by Khadi & Village Industries Commission

1980s experienced slow change as India began to open up economy.

Textiles sector with companies like Bombay Dyeing, Raymond's, S

Kumar's and Grasim first saw the emergence of retail chains

Later Titan successfully created an organized retailing concept and

established a series of showrooms for its premium watches

The latter half of the 1990s saw a fresh wave of entrants with a shift

from Manufactures to Pure Retailers.

For e.g. Food World, Subhiksha and Nilgiris in food and FMCG;

Planet M and Music World in music; Crossword and Fountainhead in

books.

Post 1995 onwards saw an emergence of shopping centers,

mainly in urban areas, with facilities like car parking

targeted to provide a complete destination experience for all segments

of society

Emergence of hyper and super markets trying to provide customer

with 3 V‟s - Value, Variety and Volume

Expanding target consumer segment: The Sachet revolution -

example of reaching to the bottom of the pyramid.

Indian retailing key challenges:

1) LOCATION:

"Right Place, Right choice" Location is the most important

ingredient for any business that relies on customers, and is typically the

prime consideration in a customer‟s store choice. Locations decisions are

harder to change because retailers have to either make sustainable

investments to buy and develop real estate or commit to long term lease

with developers. When formulating decision about where to locate, the

retailer must refer to the strategic plan:

Investigate alternative trading areas

.Determine the type of desirable store location

Evaluate alternative specific store sites

2) MERCHANDISE:

The primary goal of the most retailers is to sell the right kind

of merchandise and nothing is more central to the strategic thrust of the

retailing firm. Merchandising consists of activities involved in acquiring

particular goods and services and making them available at a place, time and

quantity that enable the retailer to reach its goals. Merchandising is perhaps,

the most important function for any retail organization, as it decides what

finally goes on shelf of the store.

3)PRICING:

Pricing is a crucial strategic variable due to its direct

relationship with a firm's goal and its interaction with other retailing

elements. The importance of pricing decisions is growing because today's

customers are looking for good value when they buy merchandise and

services. Price is the easiest and quickest variable to change.

4) TARGET AUDIENCE:

"Consumer the prime mover""Consumer Pull", however,

seems to be the most important driving factor behind the sustenance of the

industry. The purchasing power of the customers has increased to a great

extent, with the influencing the retail industry to a great extent, a variety of

other factors also seem to fuel the retailing boom.

5) SCALE OF OPERATIONS:

Scale of operations includes all the supply chain activities,

which are carried out in the business. It is one of the challenges that the

Indian retailers are facing. The cost of business operations is very high in

India.

PRESENT INDIAN SCENARIO:

Unorganized market: Rs. 583,000 crores

Organized market: Rs.5, 000 crores

5X growth in organized retailing between 2000-2005

Over 4,000 new modern Outlets in the last 3 years

Over 5,000,000 sq. ft. of mall space under development

The top 3 modern retailers control over 750,000 sq. ft. of retail space

Over 400,000 shoppers walk through their doors every week

Growth in organized retailing on par with expectations and projections

of the last 5 Years: on course to touch Rs. 35,000 crores (US$ 7 Billion)

or more by 2005-06

Major players:

Detailing reasons why Indian organized retail is at the brink of

revolution, the IMAGES-KSA report says that the last few years have seen

rapid transformation in many areas and the setting of scalable and profitable

retail models across categories. Indian consumers are rapidly evolving and

accepting modern formats overwhelmingly. Retail Space is no more a

constraint for growth.

India is on the radar of Global Retailers and suppliers / brands

worldwide are willing to partner with retailers here. Further, large Indian

corporate groups like Tata, Reliance, Raheja, ITC, Bombay Dyeing,

Murugappa & Piramal Groups ………etc and also foreign investors and

private equity players are firming up plans to identify investment

opportunities in the Indian retail sector. The quantum of investments is

likely to skyrocket as the inherent attractiveness of the segment lures more

and more investors to earn large profits. Investments into the sector are

estimated at INR 2000 - 2500 Crore in the next 2-3 years, and over INR

20,000 Crore by end of 2010.

Few of India's top retailers are:

1. Big Bazaar-Pantaloons:

Big Bazaar, a division of Pantaloon Retail (India) Ltd is

already India's biggest retailer.

2. Food World:

Food World in India is an alliance between the RPG group in

India with Dairy Farm International of the Jar dine Matheson Group.

3. Trinethra:

It is a supermarket chain that has predominant presence in the

southern state of Andhra Pradesh. Their turnover was Rs 78.8 Crore for the

year 2002-03.

4. Apna Bazaar:

It is a Rs 140-crore consumer co-operative society with a customer

base of over 12 lakh, plans to cater to an upwardly mobile urban population.

5. Margin Free:

It is a Kerala based discount store, which is uniformly spread

across 240 Margin Free franchisees in Kerala, Tamil Nadu and Karnataka.

Wholesale trading is another area, which has potential for rapid growth.

German giant Metro AG and South African Shoprite Holdings have already

made headway in this segment by setting up stores selling merchandise on a

wholesale basis in Bangalore and Mumbai respectively. These new-format

cash-and-carry stores attract large volumes from a sizeable number of

retailers who do not have to maintain relationships with multiple suppliers

for all their needs

INDIAN RETAIL IS MOVING INTO SECOND GEAR:

1) FIRST GEAR: (Create awareness)

New retailers driving awareness

High degree of fragmentation

Real estate groups starting retail chains

Consumer expecting 'value for money' as core value

2) SECOND GEAR:(Meet customer expectations)

Consumer-driven

Emergence of pure retailers

3) THIRD GEAR: (Back end management)

management

Vendor partnership

Category Stock turns

Channel synchronization

Consumer acquisitio

Customer relation's management

4) FOURTH GEAR:(Consolidation)

Aggressive rollout

Organized retail acquitting significant share

Organized retail acquitting significant share

Beginning of cross-border movement

Mergers and acquisitions

Merchandise: food grocery to clothing to spots goods to books to

stationery.

Space occupied: 50000 Sq .ft. and above.

SKUs: 20000-30000.

Example: Pantaloon retail‟s Big Bazaar, RPG‟s Spencers (Giant).

RETAIL FORMATS:

Hypermarket:

It is the largest format in Indian retail so far is a one stop shop

for the modern Indian shopper

Merchandise: food grocery to clothing to spots goods to books to

stationery.

Space occupied: 50000 Sq .ft. and above.

SKUs: 20000-30000.

Example: Pantaloon retail‟s Big Bazaar, RPG‟s Spencers (Giant).

Supermarket:

A subdued version of a hypermarket.

Merchandise: Almost similar to that of a hypermarket but in relatively

smaller proposition.

Space occupied: 5000 Sq. ft. or more.

SKUs: Around 10000.

Example: Nilgiris, Apna Bazaar, Trinethra.

Convenience store:

A subdued version of a supermarket.

Merchandise: Groceries are predominantly sold.

Space occupied: Around 500 Sq. ft. to 3000 Sq. ft.

Example: stores located at the corners of the streets, Reliance Retail‟s Fresh

and Select.

Department store:

A retail establishment which specializes in selling a wide range

of products without a single prominent merchandise line and is usually a

part of a retail chain.

Merchandise: Apparel, household accessories, cosmetics, gifts etc.

pace occupied: Around 10000 Sq. ft. – 30000 Sq. ft.

Example: Landmark Group‟s Lifestyle, Trent India Ltd.‟s Westside.

Discount store:

Standard merchandise sold at lower prices with lower margins and

higher volumes

Merchandise: A variety of perishable/ non perishable goods.

Example: Viswapriya Group‟s Subiksha, Piramal‟s TruMart.

Specialty store:

It consists of a narrow product line with deep assortment.

Merchandise: Depends on the stores

Example: Bata store deals only with footwear, RPG‟s Music World,

Crossword.

MBO‟s:

Multi Brand outlets, also known as Category Killers. These usually

do well in busy market places and Metros Merchandise: Offers several brads

across a single product category.

Kirana stores:

The smallest retail formats which are the highest in number (15

million approx.) in India.

Merchandise: Offers several brads across a single product category.

The smallest retail formats :

which are the highest in number (15 million approx.) in India.

Merchandise: Mostly food and groceries

Recent Trends :

Retailing in India is witnessing a huge revamping exercise as can be seen in

the graph

India is rated the fifth most attractive emerging retail market: a

potential goldmine.

Estimated to be US$ 200 billion, of which organized retailing (i.e.

modern trade) makes up 3 percent or US$ 6.4 billion

As per a report by KPMG the annual growth of department stores is

estimated at 24%

Ranked second in a Global Retail Development Index of 30

developing countries drawn up by contd. AT Kearney.

Traditionally three factors have plagued the retail industry:

Unorganized:

Vast majority of the twelve million stores are small "father and

son" outlets

Fragmented:

Mostly small individually owned businesses, average size of outlet

equals 50 s.q. ft. Though India has the highest number of retail outlets per

capita in the world, the retail space per capita at 2 s.q. ft per person is

amongst the lowest.

Rural bias:

Nearly two thirds of the stores are located in rural areas. Rural retail

industry has typically two forms: "Haats" and “Melas". Haats are the weekly

markets : serve groups of 10-50 villages and sell day-to-day necessities.

Melas are larger in size and more sophisticated in terms of the goods sold

(like TVs)

Recent changes:

Experimentation with formats:

Retailing in India is still evolving and the sector is

witnessing a series of experiments across the country with new formats

being tested out.

Ex. Quasi-mall, sub-urban discount stores,Cash and carry etc.

Store design:

Biggest challenge for organised retailing to create a

“customer-pull” environment that increases the amount of impulse

shopping. Research shows that the chances of senses dictating sales are upto

10-15%. Retail chains like MusicWorld, Baristas, Piramyd and Globus are

laying major emphasis & investing heavily in store design.

Emergence of discount stores:

They are expected to spearhead the organised retailing

revolution. Stores trying to emulate the model of Wal-Mart.

Unorganized retailing is getting organized:

To meet the challenges of organized retailing such

as large cineplexes, and malls, which are backed by the corporate house

such as 'Ansals' and 'PVR„ the unorganized sector is getting organized. 25

stores in Delhi under the banner of Provision mart are joining hands to

combine monthly buying. Bombay Bazaar and Efoodmart formed which are

aggregations of Karana‟s.

Recent Trends contd.

Multiple drivers leading to a consumption boom:

Favorable demographics

Growth in income

Increasing population of women

Raising aspirations : Value added goods sales

Food and apparel retailing key drivers of growth

Organized retailing in India has been largely an urban phenomenon

with affluent classes and growing number of double-income

households.

More successful in cities in the south and west of India. Reasons

range from differences in consumer buying behavior to cost of real

estate and taxation laws.

Rural markets emerging as a huge opportunity for retailers reflected

in the share of the rural market across most categories of consumption

ITC is experimenting with retailing through its e-Choupal and

Choupal Sagar – rural hypermarkets.

HLL is using its Project Shakti initiative – leveraging women self-

help groups – to explore the rural market.

Mahamaza is leveraging technology and network marketing concepts

to act as an aggregator and serve the rural markets.

IT is a tool that has been used by retailers ranging from Amazon.com

to eBay to radically change buying behavior across the globe.

e-tailing‟ slowly making its presence felt.

Companies using their own web portal or tie-sups with horizontal

players like Rediff.com and Indiatimes.com to offer products on the

web.

Trends in Present Retail Market:

New Product Categories:

For a long time, the corner grocery store was the only choice

available to the consumer, especially in the urban areas. This is slowly

giving way to international formats of retailing. The traditional food and

grocery segment has seen the emergence of supermarkets/grocery chains

(Food World, Nilgiris, Apna Bazaar), convenience stores (ConveniO, HP

Speedmart) and fast-food chains (McDonalds, Dominos).

It is the non-food segment, however that foray has been made

into a variety of new sectors. These include lifestyle/fashion segments

(Shoppers' Stop, Globus, LifeStyle, Westside), apparel/accessories

(Pantaloon, Levis, Reebok), books/music/gifts (Archies, MusicWorld,

Crosswords, Landmark), appliances and consumer durables (Viveks,

Jainsons, Vasant & Co.), drugs and pharmacy (Health and Glow, Apollo).

Increasing competition in the retail market:

New entrants such as Reliance, Bharti Enterprises and the AV Birla

group will compete against well-established retailers, such as Pantaloon

Retail, Shoppers‟ stop, Trent, Spencer‟s and Lifestyle stores. Foreign

retailers are keenly evaluating the Indian market and identifying partners to

forge an alliance with in areas currently permitted by regulations. With an

estimated initial investment of USD 750 million, Reliance is planning to

launch a nationwide chain of hypermarts, supermarkets, discount stores,

department stores, conven stores. These 5,500 stores will be located in 800

cities and towns in India.

Increase in Private Labels:

With the emergence of organized retail and modern retail

formats, private labels have been gaining significance. They enhance the

profitability levels of product categories, increase retailers‟ negotiation

powers and create consumer loyalty. More retailers are introducing their

own brands in all categories including Food & Groceries, apparel,

accessories, footwear. These own brands also do not have to manage

intermediaries since retailers maintain oversight of the supply chain.

The label penetration is in a huge rise. Private Label penetration has been on

a rise. It is mainly growing among FMCG products in most supermarkets

with groceries accounting for 45.9%

Expanding to Tier II and III cities:

Indian retailers are planning to extend operations into Tier II and

Tier III cities as heightened IT offshoring activity in these locations have

increased consumers‟ disposable income. The population in these cities is

typically well educated and willing to purchase goods and services. Some

major retailers, like Globus, Reliance Retail and Pantaloon, have already

begun building a retail presence in Tier III cities before many retailers have

finalized their Tier II retail operations.

Foray into Retail Agri-Business:

India‟s most prestigious business houses and global

retailers are planning to enter retail agri-business. Market entrants plan to

invest in the entire value chain, moving goods “from the farm to the fridge

at home.” Viewed as India‟s next “Sunrise Sector,” retailers are employing

contract farming as a means of boosting their ventures. Contract farming

enables farmers to a.ccess land, manpower and farming skill without having

to purchase land. Of the total Cultivable land of 400 million acres in India,

contract farming represents 7 million acres thus indicating a tremendous

opportunity. For pure corporate contracts between farmers and companies,

only 2,00,000 acres are used.

Experimenting with formats:

Selecting the right retail format is essential in modern retailing.

The difference between urban and rural customers is one of the reasons why

multiple formats are required in India. Local conditions and insights into

buying-behaviour shape the format choice. No single format will be suitable

or an all India strategy and selecting the relevant format is the key success

factor.

Technology in Retail:

Over the years as the consumer demand increased and the

retailers geared up to meet this increase, technology evolved rapidly to

support this growth. The hardware and software tools that have now become

almost essential for retailing can be into 2 broad categories.

Customer Interfacing Systems:

Bar Coding and Scanners

Point of sale systems use scanners and bar coding to identify

an item, use pre-stored data to calculate the cost and generate the total bill

for a client. Tunnel Scanning is a new concept where the consumer pushes

the full shopping cart through an electronic gate to the point of sale In a

matter of seconds, the items in the cart are hit with laser beams and scanned.

All that the consumer has to do is to pay for the goods.

Payment

Payment through credit cards has become quite widespread

and this enables a fast and easy payment process. Electronic cheque

conversion, a recent development in this area, processes a cheque

electronically by transmitting transaction information to the retailer and

consumer's bank. Rather than manually process a cheque, the retailer voids

it and hands it back to the consumer along with a receipt, having digitally

captured and stored the image of the cheque, which makes the process very

fast..

Internet

Internet is also rapidly evolving as a customer interface,

removing the need of a consumer physically visiting the store.

Operation Support Systems:

ERP System

Various ERP vendors have developed retail-specific systems

which help in integrating all the functions from warehousing to distribution,

front and back office store systems and merchandising. An integrated supply

chain helps the retailer in maintaining his stocks, getting his supplies on

time, preventing stock-outs and thus reducing his costs, while servicing the

customer better.

CRM Systems

The rise of loyalty programs, mail order and the Internet has provided

retailers with real access to consumer data. Data wareho This, along with

the various available CRM (Customer Relationship Management) Systems,

allows the retailers to study the purchase behavior of consumers in detail

and grow the value of individual consumers to their businesses.

FUTURE TREND:

SCOPE OF 24hr RETAILING:

The concept of 24hr. retailing in India has been present only in very

limited formats like the pharmaceuticals (Apollo) and fuel retail outlets

(H.P, Reliance etc.) and the other retail formats used to operate only till the

early hours of the night. But because of the changing lifestyles and the

buying habits of the consumers the retailers have been extending their

operating hours till late nights.

Most of the Indian retail formats though capable of

operating their formats round the clock do not choose to do so because of

the non feasibility of the idea at present taking in conjunction the customers‟

readiness. For instance if any of the hyper market or supermarket is

functioning during the night the retailer has to bear the extra costs of

electricity, labor and maintenance if the number of footfalls are less very

low during the late nights which otherwise would be profitable to him.

Anyways, the shopping time of the consu India most of the retailing is all

about food and groceries. It might not be a rational prediction that all the

consumers will step into the retail outlet at midnights to buy food and

groceries.

This problem can be overcome by implementing the idea

in places which have a floating population even during the nights like

railway stations and bus stations. However with the upcoming culture of

malls and the changing lifestyles of the people one can design a small part

of the store or a mall for a new 24/7 retail format which consists of the

essential products like medicines, fruits and vegetables, groceries and some

other FMCG products and test market it. Once if the sales start showing

some consistent positive figures and if the crowd increases then the store

can come in a bigger way to reach out to their customers.

The other option for trying the concept of 24hr retailing is that the

retailer can have a mobile s to happen. outlet which can place itself in the

areas which have substantial night traffic for the sale And once the people

are to the 24hr shopping then the retail plans can be altered accordingly.

Rural Vs Urban Retail Trends:

The urban retail market has been embracing various new

formats and the malls turned out to be the trend setters by promising the

concept of shoppertainment. The trends in the rural market also have been

changing from the old Haats and Melas to the rural malls like „Chaupal

Sagar‟ launched by ITC, DCM Shriram Groups one-stop shopping

destination called „Hariyali Bazaar‟, Godrej groups agri store „Adhar‟ etc.

India's largely rural population has also caught the eye of

retailers looking for new areas of growth.

Chaupal Sagar :

ITC launched the country's first rural mall „ Chaupal Sagar'

offering a diverse product range from FMCG to electronics appliance to

automobiles, attempting to provide farmers a one-stop destination for all of

their needs.

Hariyali Bazaar :

There has been yet another initiative by the DCM Sriram Group

called the Hariyali Bazaar' that has initially started off by providing farm

related inputs and services but plans to introduce the complete shopping

basket in due course.

Other corporate bodies include Escorts, and Tata Chemicals

(with Tata Kisan Sansar) setting up agri-stores to provide products/services

targeted at the farmer in order to tap the vast rural market.

Adhar:

Commenting on the Rural Retailing chapter in INDIA RETAIL

REPORT 2005, Mr. Adi B. Godrej, Chairman, The Godrej Group (India's

one of the leading corporate majors) said that his group had also launched

the concept of agri-stores named 'Adhaar', which served as one-stop shops

for farmers selling agricultural products such as fertilisers providing farmers

knowledge on how to effectively utilise these products. "There are 8 stores

already operating in Maharashtra and Gujarat and further expansion is very

much on the cards. He added.

The group plans to take its recently launched retail concept –

Nature's Basket - to newer cities steadily. Godrej Group's Agro and Food

division, Godrej Agrovet Ltd. (GAVL) operates the format, selling a variety

of vegetables, fruits and herbs - both local and exotic thereby introducing

the concept of 'farm-to-plate' to urbanites. Godrej plans to open four more

Nature's Basket stores in Mumbai before taking them national. Setting up

cost of a store is about INR 5-10 million and per stores sales are expected in

the range of INR 30- Rs 50 million a year.

Interestingly, the world's largest corporation, Wal-mart, also had

its roots in rural America. Unlike many other retailers who started from

urban centres and then trickled down to rural areas, Wal-mart had started

from rural areas and then came closer to cities over a period of time. Many

more such concepts are likely to be tested in the future as marketers and

retailer The IMAGES KSA Report avers that these concepts are likely to go

a long way in bringing a huge untapped population within the purview of

organized retailing, thereby, increasing the size of the total markets begin to

acknowledge that the rural consumer is more than a „poor cousin' of the

urban counterpart.

Urban Trends:

The urban retailing has been experimenting with many formats

like the supermarkets, hypermarkets, specialty stores, multi branded outlets

etc. and of latest it seems to be embracing the trend of mall culture. It is a

rich man's world too, with multi-screen cinemas, restaurants, games and

branded shops - well out of the reach of many of the country's one billion

people. But India's middle-classes, widely travelled and with deep pockets,

are flocking to malls.

SWOT ANALYSIS:

A SWOT analysis of the Indian organized retail industry is

presented below:

Strength:

Retailing is a "Technology-intensive" industry. It is technology that

will help the organized retailers to score over the unorganized

retailers. Successful organized retailers today work closely with their

vendors to predict consumer demand, shorten lead times, reduce

inventory holding and ultimately save cost. Example: Wal-Mart

pioneered the concept of building competitive advantage through

distribution & information systems in the retailing industry. They

introduced two innovative logistics techniques – cross-docking and

EDI (electronic data interchange)

On an average a super market stocks up to 5000 SKU's against a few

hundred stocked with an average unorganized retailer. This will

provide variety in products (required breadth & depth for consumers)

As a consequence of high volumes, procurement will be direct from

the Manufacturer. Hence, merchandise can be offered at lower costs.

Weakness:

Less Conversion level:

Despite high footfalls, the conversion ratio has been very

low in the retail outlets in a mall as compared to the standalone counter

parts. It is seen that actual conversions of footfall into sales for a mall outlet

is approximately 20-25%. On the other hand, a high street store of retail

chain has an average conversion of about 50-60%. As a result, a stand-alone

store has a ROI (return on investment) of 25-30%; in contrast the retail

majors are experiencing a ROI of 8-10%

Customer Loyalty

: Retail chains are yet to settle down with the proper

merchandise mix for the mall outlets. Since the stand-alone outlets were

established long time back, so they have stabilized in terms of footfalls &

merchandise mix and thus have a higher customer loyalty base.

Opportunity:

The Indian middle class is already 30 Crore & is projected to grow to

over 60 Crore by 2010 making India one of the largest consumer

markets of the world.

The IMAGES-KSA projections indicate that by 2015, India will have over

55 Crore people under the age of 20 - reflecting the enormous opportunities

possible in the kids and teens retailing segment

Organized retail is only 3% of the total retailing market in India. It is

estimated to grow at the rate of 25-30% p.a. and reach INR 1,00,000

Crore by 2010.

. Rural Retailing:

India's huge rural population has caught the eye of the

retailers looking for new areas of growth. ITC launched India's first rural

mall "Chaupal Saga" offering a diverse range of products from FMCG to

electronic goods to automobiles, attempting to provide farmers a one-stop

destination for all their needs." Hariyali Bazar" is started by DCM Sriram

group which provides farm related inputs & services. The Godrej group has

launched the concept of 'agri-stores' named "Adhaar" which offers

agricultural products such as fertilizers & animal feed along with the

required knowledge for effective use of the same to the farmers. Pepsi on

the other hand is experimenting with the farmers of Punjab for growing the

right quality of tomato for its tomato purees & pastes.

Threats:

If the unorganized retailers are put together, they are parallel to a

large supermarket with no or little overheads, high degree of

flexibility in merchandise, display, prices and turnover.

Shopping culture has not developed in India as yet. Even now malls

are just a place to hang around with family and friends and largely

confined to window-shopping.

Cultural Variation leads to variation in merchandise in India at

different geographical locations.

Challenges in Retail:

The following are the key areas that may pose a threat to

those retail companies that ignore the impacts of giving less importance to

manage their demand and supply: -

Forecasting and Inventory Management for JIT replenishments of

products.

Peak Season Demand Handling.

Order Management in case of retailers with multiple outlets.

Warehouse Management in case of multiple outlets.

India vs. World

Indian retail is fragmented with over 12 million outlets operating

in the country. This is in comparison to 0.9 million outlets in USA, catering

to more than 13 times of the total retail market size as compared to India

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 (Shoppers' Stop, Westside,

Lifestyle) can compare.

The sales per hour of $22 million are incomparable to any retailer in

the world. Number 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 KPMG surveyed have inventory turns levels between

4 and 10.

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.

Future direction: Positives

AT Kearney has estimated India‟s total retail market at US$

202.6 billion which is expected to grow at a compounded 30 per cent over

the next five years.

With the organised retail segment growing at the rate of 25-30 per

cent per annum, revenues from the sector are expected to triple from

the current US$ 7.7 billion to US$ 24 billion by 2010.

The share of modern retail is likely to grow from its current 2 per cent

to 15-20 percent over the next decade

Over next two years India will see several Indian retail businesses

attaining a critical mass as growth in the industry picks up momentum

driven by two key factors:

Availability of quality real estate and mall management practices

Consumer preference for shopping in new environments

Wal-Mart : huge plans for India. Moving a senior official from its

headquarters in Bentonville, Arkansas, to head its market research

and business development functions pertaining to its retail plans in

India.

New York-based high-end fashion retailer Saks Fifth Avenue has tied

up with realty major DLF Properties to set up shop in a mall in New

Delhi.

Tommy Hilfiger, retailer of apparels, expects to open one store each

in Delhi, Ahmedabad, Lucknow and Bangalore in the next four

months.

Future direction: Concerns

68 million square feet of mall space is expected to be

available by end of 2007, which might lead to over-capacity

of malls

Lack of differentiation among the malls that are coming up. One

option may be to look at specialization.

Poor inventory turns and stock availability measures - retailers clearly

need to augment their operations.

Operations of retailers and suppliers are not integrated. Efficient

replenishment practices practiced in the Indian auto and auto-

component industry can be leveraged to implement efficient supply

chain management techniques.

Supplier maturity, in terms of adherence to delivery schedules and

delivering the quantity ordered, is an issue

Sales tax laws - lead to retailers having state-level procurement and

storage leads to Indian retailers having higher inventories. VAT has

helped alleviate this a bit.

Increased adoption of IT and shrinkage management will be a critical

area.

CHAPTER- 3

RPG ENTERPRISES

An RPG enterprise is not only one of the biggest, but also one of the

most respected names in the industry. A US$ 3.4 billion business

conglomerate, RPG is one of the powerhouses that drive Indian Industry.

With more than 20 companies, it spans 7 business sectors, Retail,

Technology, Entertainment, Power, Transmission, Tyres and Specialties- all

under the RPG banner. Even with such a diverse portfolio, the fact that RPG

Enterprises has had nothing but only unrivalled success in all these sectors,

speak very highly of the efficiency and vision with which the company is

run. Over the years RPG Enterprises has built a huge reservoir of trust and

goodwill among the people of India. We at Spencer‟s are truly proud to be a

part of the RPG family

RPG Enterprises is run by a Management Board headed by Mr. R. P.

Goenka, Chairman Emeritus, Mr. Harsh Goenka, Chairman and Mr. Sanjiv

Goenka, Vice-Chairman. The Management Board comprises of highly

qualified and experienced professionals in their respective fields.

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

QUALITY:

For RPG quality determines success. Continuous process

improvements are carried out to ensure complete satisfaction of customer

and market requirements.

RPG ORGANIZATIONAL EXCELLENCE:

RPG Organizational Excellence is an effort toward achieving

excellence by enhancing performances through clarity of purpose,

meticulous planning, tenacious execution and passion to excel.

RPG ORGANIZATIONAL APPROACH :

RPG Organizational Approach translates the group‟s organizational

excellence strategy through an effective 3-point program:

Six Sigma

TPM

Continuous Improvement

RPG ORGANIZATIONAL AWARDS:

The RPG Organizational Excellence Awards were started to give

impetus to the group‟s excellence movement. Initiated in 1999, these awards

aim to encourage higher levels of business excellence among the group

companies.

RPG ORGANIZATIONAL EXCELLENCE MODEL :

RPG has always been among the forerunners in the area of quality

improvement. The group set up the RPG Organizational Excellence Center

in 1998 (then know as the Corporate Quality Center), to enhance quality

standards within all RPG group companies.

To match world standards of excellence the center inducted the

Organizational Excellence Model, drawn from the EFQM framework of

excellence and in alignment with the CII – EXIM Business Excellence

Model.

The model works in three distinct phases...

Introspection:

Establishing quality systems, processes and human responses across the

group companies

Externalizing: proactively studying customers, markets and societal issues

Benchmarking: applying a relevant global excellence model

RPG ORGANIZATIONAL EXCELLENCE APPROACH:

Web site: http://www.rpggroup.com/quality1.html

RPG has been encouraging continuous improvement initiatives in all

the group companies, through an effective 3-point program: Six Sigma,

TPM, and Continuous Improvement.

The quality drive has been promoted through QC, CFT, and 5S

systems. Many of the group companies have successfully applied the quality

improvement program, implementing policy deployment through the

Business Balanced Score Card (BBSC).

The group companies have initiated the excellence drive by

implementing TQM strategies like 5S of housekeeping, and structured

problem solving – CFT, Kaizen etc. These initiatives help in embedding

awareness of quality in all organizational processes; leading to employee

involvement, a culture of continuous improvement and definite changes in

QCD.

PG ORGANIZATIONAL EXCELLENCE AWARDS

The RPG Organizational Excellence Awards were introduced in

1999, to encourage higher levels of business excellence among the group‟s

companies.

These awards motivate the companies to instill quality control measures in

all their processes. The awards also generate a healthy competitive

environment, encouraging the companies to excel.

The RPG quality awards are given to group companies (in the

manufacturing or the service categories) that exhibit outstanding levels of

organizational excellence. Each company is assessed on predetermined

criteria for RPG‟s quality and organizational excellence awards, every year.

The „Best TQM Team‟ and „Best TQM Facilitator‟ awards are given to

encourage and appreciate improvement efforts at team and individual levels.

The introduction of the awards has been effective in creating a

better working environment by:

Providing direction and creating a uniform excellence culture

throughout the group

Recognizing contributions made by individual units

Motivating the management and employees to work toward

continuous improvement

Improving company performance, based on the sound approach

of strategy,

Policies and processes, and its organization-wide deployment.

MANUFACTURING CATEGORY

Year

Winner Certificate of Merit

2000 Raychem RPG RPG Cables, Mysore

2001 RPG Cables, Mysore Cetex Petrochemicals,

RPG Life Sciences

2002 Cetex Petrochemicals RPG Cables, Thane

2003 CEAT Limited KEC International,

Butibori

2004 CEAT Limited Raychem RPG

2005 Raychem RPG CEAT Limited

2006 CEAT Limited Raychem RPG

2007 Raychem RPG CEAT Limited

SERVICE CATEGORY

Year Winner Certificate of Merit

2000 Spencer‟s Travel Zensar Technologies

2001 RPG Cellular Services Zensar Technologies

2002 RPG Cellular Services Zensar Technologies

2003 CEAT Limited Spencer‟s Travel

2004 CEAT Limited Spencer‟s Travel

2005 CESC Limited

Music World

Entertainment Ltd

2006 CESC Limited N/A

2007 CESC Limited KEC, Projects, Abu

Dhabi

Website: http://www.rpggroup.com/quality2.html

Vision:

Leadership in profitability and revenue growth in our chosen

businesses.

Being a customer-centric organization and Being the most exciting

workplace.

Values:

RPG‟s business ethics promote higher levels of excellence. The

group‟s values of Customer Sovereignty, People Orientation, Innovation &

Entrepreneurship, Transparency & Integrity, Passion for Superior

Performance, Anticipation, Speed and Flexibility propel it to perform and

excel in all spheres of the business.

Core values:

The Core Values of RPG Enterprises were soon defined as its

business drivers and are still faithfully followed and cherished.

Respond - React to a business opportunity. Harness

the finest resources.

Perform - Inspire people to come together and work

as one team.

Grow - Ensure the best possible outcome… success.

Quality :

Quality is a process in which RPG Enterprises firmly believes as it

aims at continuous improvements to meet the current and anticipated

requirements of customers and markets.

With an ever-changing environment, RPG Enterprises is an exciting

place to work, where excellence, performance and entrepreneurship are

valued.

COMPANY PROFILE

Spencer‟s Retail is the largest supermarket chain in India. At

Spencer‟s we have for you an extensive range of products and durables,

designed to satisfy all your shopping needs. We are proud today of

our 400 stores across 65 cities covering a retail trading area of 2 million

square feet and an astonishing 3.5 million customers a month. However, all

these figures and statistics would mean nothing if we couldn‟t put a smile on

your face. It has been and will always be our constant effort. No wonder,

after more than 100 years, people continue to trust the name Spencer‟s. And

this trust has been the outcome of a consistent high-quality service.

For every want, for every need:

We at Spencer‟s are glad that we are able to provide all that you need,

and all that you wish you had. From an endless choice of foods and exotic

fruits & vegetables to household needs, home décor and consumer durables.

Whether you are designing your home or plan to have a party, we have your

basket ready with us. So come and discover the joy of shopping at

Spencer‟s.

THE VARIOUS FORMATS IN SPENCER’S RETAIL

Spencer’s Express

Spencer‟s express is your store next door for your fresh needs at arms

length. These stores are around 1000 sq ft in size. They are open from 7 am

to 9 pm and also provide you with home delivery. Our Express stores stock

dairy, fruit and vegetable, bread and bread products, cut vegetables/ ready to

cook, fruit juices, fresh batter, fresh coffee/tea, fresh masalas, fresh pickles,

fresh Ghee, fresh fish and meat.

Spencer’s Fresh

Spencer‟s Fresh stores provide you with an enjoyable and convenient

shopping environment in your very own neighborhood. These 2000 sq. ft.

air-conditioned stores are well stocked with fresh food of the 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 than the regular sabzi mandis or

local vegetable markets, which is why our consumers return to our stores

again and again. And at Spencer‟s Fresh not only do you get fresh, clean

and tasty farm produce but also the lowest possible prices in the locality, yes

even lower than your sabziwala!

Spencer’s Daily

The Spencer‟s Daily store is your friendly neighborhood store, which

caters to your entire daily shopping needs - 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 you the hassle

of bargaining with the local Kirana shop owners (because we offer the

lowest possible prices).

Spencer’s Superstore

The Spencer‟s Super is the place to go for your monthly shopping.

About 8000-15,000 sq. ft. in size the Spencer‟s Super not only caters to your

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. In effect we have everything to make sure your

household runs smoothly all month long.

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. Our 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.

OPERATIONS IN INDIA

Spencer‟s has retail footage of over 1.3 million square feet and over

250 Spencer‟s stores in 50 cities.

The company operates through the following formats:

Spencer’s Hypermarkets: a fast growing retail network of hypermarkets

with large format stores in Mumbai, Gurgaon, Ghaziabad, Lucknow,

Calicut, Hyderabad, Vizag, Vijayawada, Aurangabad Durgapur and

Kolkata.

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 your daily household needs.

Spencer’s fresh: all food items, juices, and bread products are available.

Spencer’s Express: your food and grocery store next door.

SPENCER’S PROFILE

RPG: Retail Launches "Spencer's Hypermarket" In Visakhapatnam on

September 17 2004: Great Wholesale Club Ltd., the company which

operates the GIANT Hypermarkets launched their first 'Spencer's

Hypermarket" today at Vizag. The store was inaugurated by Vice-Admiral

O.P. Bansal, PVSM, AVSM, and VSM. Flag Officer, Commanding-in-

Chief, Eastern Naval Command and Mrs. Renu Bansal.

The store is spread over 60,000 sq. ft and provides ample parking

more than 60 cars and two wheelers in the premises.

The store would have 25,000 plus products across staples, ready

foods, instant foods, beverages, health & beauty products, dairy & frozen

foods, garments, electrical goods, general merchandise and other household

products. The store would also have a Bakery, Music World, Café and

several other concessionaires offering a wide variety of products. The store

would be open from 9.30 a.m. to 10.00 p.m., 7 days of the week.

The store has several customer facilities which the first in Vizag like

19 cash tills, special billing for physically challenged people, etc.

There will be special promotions and offers exclusively at

Spencer's, 365 days in a year, in addition to the products being sold below

MRP. Spencer's offers a unique no hassles "Replacement Guarantee" as also

a "Price Guarantee" to their customers. This is one of the several unique

features that the store offers to their customers.

In addition to this Spencer's would have a whole host of exciting

offers and activities every weekday. "Hara Bhara Wednesday" is an

exclusive concept.

Where customers get fresh fruits and vegetables at the lowest prices,

only at Spencer's and Aksheya Annapurna showcased on Friday.

Mr. Raghu Pillai, President & Chief Executive, Retail Sector, RPG

Enterprises, speaking about the launch said "This is truly exciting that the

"Grand Old Lady" comes back in style into the Indian retail environment. I

am proud to present Spencer's Hypermarket to the Vizagites". Mr. Kruben

Moodliar, CEO added that 'Spencer's promises Mega Value. Maha Khushi'

and that customer in Vizag can now look forward to some great,

international shopping at Indian prices.

RPG Retail has been a pioneer in the organized retail segment and

operates several large successful chains of stores. The various brands

operated by RPG Retail include Food world, Health & Glow, Music World.

The hypermarket business was started in 2001. The store at Vizag will be in

association with Phoenix Logistics Pvt. Ltd.

The lowest price, in a format that is air-conditioned, cleans,

comfortable, well stocked and laid-out. The spacious layout allows for wide

aisles within the store for moving around and ample space outside for

parking and loading.

http://www.topnews.in/files/Spencer-3825.jpg

The Hypermarket is a large format store that aims at retail

consolidation by being a single point contact between the brand owners and

customers. This is one of the fastest growing formats in Asia. A number of

international chains are investing in these stores. Hypermarkets have a very

wide range of product categories, of which the core and essential range is in

groceries, food, home needs, fresh food, garments and consumer durables.

All these are sold at low prices, which is possible because of the economies

of large-scale operations. The Hypermarket format offers several advantages

to all the parties involved in the process.

SPENCER'S PRDUCTS

Spencer's retail offers the complete gamut of products & durables

ranging from bread to bed covers; from toothpaste to television.

Our product profile includes the following:

Website: http://www.livemint.com/images/10C0DA8B-4B43-46E7-

A04C-81F5878FFAE9ArtVPF.gif

1. Fresh fruits and vegetables

2. Groceries & staples

3. Home care products

4. Personal care products

5. Garments & fashions accessories

6. Jewelry

7. Bakery, Chilled and frozen food

8. Utensils & crockery for your kitchen

9. Stationary for your office and home

10. White goods

11. Baby care

12. Music and lots more…

Website:

http://www.thehindu.com/2008/05/10/images/2008051053770501.jpg

Spencer's Retail provides maximum value for price in its stores. It has

been our constant endeavor to provide the best shopping experience to our

customers.

We have regular promotions and special offers running, 52 weeks of

the year, that enable our customers to buy smartly. These offers are

available across all our outlets, across the entire range of products.

WHY SPENCER’S?

Spencer‟s has currently 250 stores geographically spread

across the country with a retail trading area of more than half a

million square feet.

The largest Super Market Chain of India.

We have a captive audience of around 2.6 million who walk in

every month in all the stores across the chain.

Consumers view brands advertised on in-store media

networks 40% more positively. (Source: Nielsen Media)

Consumers are 34% more predisposed to buy products

advertised on in-store media network. (Source: India retail report

2005)

In-store advertising has 57% Brand Recall as compared to 24%

for TV Ads. (Source: Nielsen Media)

Consumers watch in-store media advertising on an average of

7 minutes per visit.

Variety of branding options (Hyper, Daily / Supers) for the

clients and a controlled environment for in-store promotions. We

deliver the lowest OTC cost and ensure minimum media wastage.

Branding/visibility options for Spencer’s hyper stores

Hoardings

Gondola-End visibility

Back-lit boards.

Drop down scroll boards

Trolley / Basket branding

Carry Bag branding

In store - promoters

Playing pre-recorded ads in the TVs.

Standalone Scrollers

Pull downs and banners

Display panels on the wall

Product Displays

Bill Roll branding

Cash till boards

Glass Windows

VISION & CORE VALUES

What is it that defines RPG Enterprises‟ success and carries it on through

generations?

The set of values and the visionary focus of its leaders, which forms

the distinct identity of RPG Enterprises, is what constitute its business

drivers.

Its’ Vision and Core Values are:

We shall be a leading Indian Group with a focus on market

capitalization through:

Leadership in profitability and revenue growth in our chosen

businesses.

Being a customer-centric organization and

Being the most exciting workplace.

Customer Sovereignty

People Orientation

Innovation & Entrepreneurship

Transparency & Integrity

Passion for Superior Performance

Anticipation, Speed & Flexibility

MILESTONES OF RPG GROUP

The following are the Milestones of 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 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.

SPENCER'S ACHIEVEMENTS

VMRD Award: Spencer‟s was awarded the first runners-up in the Visual

Merchandizing Category at the In-store Asia, 2009.

Food Forum of India Award: Coca Cola Golden Spoon “Most Admired

Food & Grocery Retailer, Convenience

and Express Formats”, 2008.

India Retail Forum: “Most Evolved Retailer of the Year”, India Retail

Forum, 2007.

India Retail Forum: “Turnaround Retailer of the Year”, 2006

CHAPTER- 4

STORE OPERATIONS

Stores shutter will be opened at 7:30 am

Security opens the tampered seal and locks in the presence Supervisor.

The first activity to happen will be the house keeping followed by staff

scheduling.

The stock outs are established and the replenishments happen as the day

progresses, though it is suggested that replenishments of the stock should

always happens the customer is not there.

The head of the store inspects all the departments of the store which is

otherwise called as “Floor Walk”.

The Supervisor would ensure that all cashiers have enough and correct

float cash, whether the stationery required by them is in place or not.

The store manager in turn would brief their team on the achievements of

the previous day and the set targets for the day. During this discussion,

any incidents worth mention.

All the CSA‟s working in the schedule between 7:30 am to 2:30pm

should be present at stores by 7:00 am.

Time when the shutter is opened is registered by the security in Closing

and Opening book and the entry time of the staff is also registered in Staff

register.

DUTIES OF STORE MANAGER:

Staff attendance: daily store manager will take the attendance of every

employee in store

Staff briefing store manager will discuss previous day‟s targets and achieved to

days targets and special promos, awareness among the team members.

Handling CSD activities: The another work is that the store manager has to take

responsibility of CSD activities like exchanges, refunds, customer complaints &

suggestions.

Check list execution: store manager checks the list which includes stock arrival

from warehouse .CSA‟S attendance and their work.

Store manager will check everything that are included to housekeeping like

cleaning of floor, baskets, trolleys etc,.

Store manager will check the stock that are coming from vendors like fresh

choice and send goods which are damaged.

Store manager keeps some amount in every cash counter which is useful for

change as opening balance. The cashier signs when store manager gives amount

and again he will sign shift end.

Operation management:

The first Spencer‟s hypermarket is located in the heart of Hyderabad, in

Musheerabad, at a site spread over 1,20,000sq.ft area. „Spencer‟s‟ stock s over

20,000 products across a 50,000-sq.ft.singlelevel shopping space, and employs

around 160 people

The store has a convenient food court and concessionaries who sell a wide range

of products like pearls jewelry, ethnic wear, liquor, fresh chicken, music and

personal care product

The second Spencer‟s Hypermarket is located at malad in Mumbai, with an area

of 50,000sq.ft. And stocks over 25000 products .it also has a bakery, music

world Express outlet and a gift store.

Spencer‟s hypermarket also offers memberships to B28 customers that have

advantages of convenient shopping combined rewards for bulk purchases.

Inventory In Spencer‟s

General Stock Receiving:

Inwards process means stock receiving from vendors and

manufacturing department and receiving damage stock from stores. In this

process they are doing three functions.

1. GRN process receipt note

2. Stock transfer in process

3. Damage transfer in process.

GRN process:

This process will start when the stock come to ware house from vendor as

per PO (purchase order). The vendor will come to with invoice and purchase

order . my using both supervisor will check cost price of the product ,EAN code

of the product and quality After checking the stock will send to warehouse for

storing and the document will go to EDP section to enter into system . In that

EDP section they will modify the cost prices . MRP and quantity if necessary

and finely calculate the total amount including VAT tax .If any product is

damage the product return to vendor at same time and the amount of damage

stock will be deducted from total amount .After GRN complete the stock will go

put away means storage in racks.

Stock transfer in process:

This process will starts when the stock receive from RPC (main

warehouse) or any other warehouse‟s. This stock is mainly staples like rice

,Atta‟s ,dals and species ets .In the process the merchandiser will give order to

RPC as per requirement .sometimes the stock will come from another

warehouse when the stock will come from RPC they will send stock transfer

out report with vehicles ,then the inwards supervisor will check the PO and to

report and then check the total quantity of the stock .After that the document

will go to EDP section .In that section they will enter the stock details (EAN

codes and quantity )after that stock will go to put away.

Damage transfer in process:

This is another process means receiving damage and expire stock from stores

and inside the warehouse .This process is two types (1)Store damage TI process

means the damage stock of the store of the store will keep at the store and that

will check by checker at end of the every month that is called PRN process.

After PRN the stock will come to ware house . In the ware house the inwards

supervisor will check PRN document and receive the stock .Warehouse damage

TI process means ,if any stock damages or expires the stock will come to the

damage location. It is done every day and the warehouse in charge will send TO

report to damage supervisor.

F&V Stock Receiving :

In the process they are sourcing of vegetables from direct formers and local

market (wholesaler) and the fruits are sourcing from Hyderabad and other states

.The F&V merchandiser will give order to vendors before two days and the

buyer will go to local market in early morning of the day to purchase and bring

to warehouse by auto by morning 6 am and the vendor will bring the stock

before 6 am. After receiving stock to warehouse the quality and quantity will

check after that the stock will go grading it is done through mandatory.

Outwards process :

Out wards process means stock dispatching from warehouse to stores and

damage stock dispatching from warehouse to vendors or manufacturing

department in this process the main functions are

(1) General stock dispatching process

(2) F&V dispatching process

(3) Damage stock dispatching process

General stock dispatching process :

General stock dispatching process means the stock sending to stores as per

requirement of the store (indent).

Indent process

It will start in this process every day before closing the store manager send

the day-end file means requirement of stock for next day(the day-end file is

create by compare both store MBQ and store QOH).This day –end file will

come to it department and the IT manager will give prepare indent. This

process is done through automatically system process .The indent will come

in division wise to each store that is called pick list.

Picking & checking process:

Picking process means by using pick list the picker will pick the stock from

each division for each store as per QOH of the warehouse and after picking

the stock keep in store bays for checking .After picking pick list go to EDP

for modification and they will prepare check list by using this check list the

checker will the stock at store bays after check list go to EDP to prepare

stock transfer out report.

stock transfer out report:

After completing picking and checking process the EDP supervisor will prepare

to report .After this process the stock will go for packing and then loaded in

vehicle for dispatching. The QC(quantity checker )will go to store with the TO

documents to deliver the stock in store.

F&V dispatching process:

In this process the indent will come through manual before two days

from store .By this indent the F&V manager will give the purchase order to

vendors and bring the stock from local market .After Quality checking and

grading the stock will allocate to each store as per indent of the store. After

allocation this stock will keep at store bays. After that the F&V supervisor will

prepare stock transfer out report and then lode in auto .This stock will go to

store before 10 am in the morning .In this process also the QC(quantity checker

)will go to store with the TO documents to deliver them to stock in store.

Damage stock dispatching process :

In this process the store damage and warehouse damage will keep in damage

section for sending to vendor or RPC for replenishment .The damage stock will

checked section supervisor after receiving stock from store and warehouse

.After checking the manager will send the stock to return if it is sending to RPC

then the stock transfer out report will prepare otherwise it will go to second sale

or burning purpose.

STAFFING

INTRODUCTION

The organizational structure of a retail store will vary by the size and type of the

business most task involved with operating a retail business will be the same

.However small or a independent retail store may combine many sectors

together under one division ,while larger stores create various division for each

particular function along with many layers of management .As Spencer’s is an

organized store ,it consists of various act ivies .Under them ,staffing is one of

the major part of the operations .Staffing generally consists of scheduling the

employees store meetings, exit interviews, motivating staffing.

My observation including all these activities.

RECRUITIMENT PROCESS

Generally the customers facilitators are recruited by tapping

the known sources .They then look into the bio data and the experience the

person has. Mostly the company prefer to recruit experienced people .This helps

the store to reduce to training cost. The payment of the CSA‟s is Rs 4000 and

the payment of supervisor s is Rs 6000 and Rs15000 to manager .Based on the

experience they have the salary changes spender‟s over, there are some credits

and incentives given to employees who sell Spencer‟s in a month .This helps the

management to in build a competitive spirit the rest.

SCHEDULING THE EMPLOYEES

The basic hierarchy or the structure of the staff is that, the store

consists of customer facilitators who are controlled by the supervisors .Above

them, there store manager and all of them are controlled by the cluster manager

.The CSA‟s are first regarding the way they sell the product by explaining them

the texture,fabric and price of the product so that they try to induce a thought

into the customers mind to buy the product.

The CSA‟s generally work in two shifts, first shift from morning 07:30 am to

4:00 and second shift from 1:00 pm to 10:30 pm with a one hour recess time for

lunch and fifteen minutes recess for tea .The recess time is scheduled differently

for a group of CSA‟s a

.

.

CHAPTER- 5

SUPPLY CHAIN MANAGEMENT

INTRODUCTION

The supply chain is the process of creating products for customers

.Supply change span from raw materials, to manufacturing, distribution,

transportation, warehousing,and product sales. As you can imagine, when the

number of resources, operations, and functions increase, managing this supply

chain can become very complex. An entire supply chain could exist within a

single company supply chains operating within enterprise! Or asupply chain can

span multiple enterprises before it reaches a customer .While other dreams like

demand chain and value chain are used today , they usually mean the same thing

managing a portfolio of assets and relationships to transform raw material into

finished goods for customers in the most efficient manner.

A supply chain is dynamic and involves the constant flow of

information ,product and funds between different stages .Realistic supply chains

have multiple end products with shared components, facilities and capacities.

The flow of material is not always along an arbores cent network ,various modes

of transportation may be considered, and the bill of materials for the end items

may be both deep and large.

SUPPLY CHAIN MANAGEMENT PROBLEMS

Supply chain management must address the following problems:

Distrbution Network configuration number ,location and network missions

of suppliers , production facilities ,distribution centres ,warehouses cross-

docks and customers.

Distribution strategy : Including question of operating control (centralized

decentralizes or shared ): delivery scheme (e.g,,direct shipment , pool

point shipping .cross docking DSD (direct store delivery),closed loop

shipping):mode of transportation (e.g,,motor carrier,including truckload

,LTL,parcel:railroad:intermodal,including TOFC and COFC: ocean

freight:airfreight): replinshment strategy (e.g,,pull,push or hybrid): and

transportation control (eg,,owner-operated,private carrier,common

carrier,contract carrier,or 3PL

Information: Integration of and process through the supply chain to share

valuable information ,including demand signals,forecasts,inventory and

transportation etc.

Inventory management: quantity and location of inventory including raw

material ,work-in-process and finished goods,

Cash-flow : Arranging the payment terms and the methodologies for

exchanging funds across entities within the supply chain.

Supply chain execution is managing and coordinating the movement of

materials, information and funds across the supply chain .the flow is dis

directional.

OBJECTIVE OF A SUPPLY CHAIN IN SPENCER’S

The objectives of the project are to create a horticultural model for spencer‟s

retail are :

Increases consumer‟s value for money

Reduce cost in the supply chain

Improve response to customer needs

Facilities new product innovation

Increases competitiveness and along term sustainability through

out the production distribution and marketing ‟chain‟

Improve the market share of the fresh fruit and vegetables in the

retail sector.

The objective of every supply chain should be to maximize the overall value

generated. for the most commercial supply chains. value will be strongly

correlated with supply chain profitability (also known as a supply chain

surplus). The difference between the revenue generated by from the customers

and the overall cost across the supply chain.

Supply chain management is typically use viewed to lie between fully

vertically integrated firms,where the entire material flow owned by a single

firm and those where each channel member operators independently, such a

team is spencer‟s competitive when each player knows how to be positioned for

hand-off.

SUPPLY CHAIN PROCESS IN SPENCER’S

The supply chain process plays a vital role in every organization .but this

process may different from one organization to another organization.

The process of supply chain in spencer’s:

The supply chain process in spencer‟s retail ltd in Andhra Pradesh is going on

in systematic process

Manufacturer

Warehouse

Stores(spencer‟s)

Customers

SUPPLY CHAIN IN SPENCER’S

The supply chain process in spencer‟s is quite a simple one

even though have large number of stores .when merchandisers from different

locations go for buying , after selection their required product they courier them

to central point, Hyderabad, since they have chosen central point as Hyderabad

because geographically very much accessible to their merchandise centers in

transport means.so the main warehouse is placed at Hyderabad, from there

according to the requirement of the individual stores at different areas they

courier the products as they adopted this process since Hyderabad very much

near to Visakhapatnam and at any time they can get the goods depending on

their requirement to Visakhapatnam warehouse. here at Visakhapatnam they

have separate ware house in Gajuwakha where the inventory is stocked.

In Visakhapatnam the warehouse is located Gajuwakha where all

products are send to all stores depending on different categories of products

,different supply chain process will use by Spencer‟s owned manufacturer and

directly from farmers, and for branded products dispatches from that branded

company manufacturer‟s.

The same process is adapted by all the stores of spencer‟s .thus all

about their supply chain process at spencer‟s.

PROCESSES IN WAREHOUSE OR DC

RECEIVING

DISTRIBUTION

DISPATCH

EDP

DAMAGE SECTION

STOCK CHECK

SECURITY

SECURITY

Security is implemented to maintain the discipline and to prevent the losses

and customers service and fine fighting discipline cover. They take the

responsibility to open and close the store.

Uniform

Time in time out

Grouning

prevention losses: finding out where the losses are possible by tighten the

security control the losses

CUSTOMER SERVICE:

Customer services with cheering faces wishing the customers and provide the

service properly to them like basket, trolley and parking etc.,

FIRE FIGHTING:

Whenever there is some information about some fire accident immediately

rushing to that area and try extinguishing the fire. From this tie should will

aware about the fire equipments and this operation.

First Aid: security should provide the first aid to any one like customers, staff

when ever it is needed. Security is of contract based. the head is the Spencer‟s

employees and reaming all are contract people.

SALES PROMOTION:

Sales promotion is a key ingredient in marketing campaigns.

SALES PROMOTION means a collection of incentive tools mostly short term,

designed to stimulated quicker or greater purchase of particular product or

services by consumers or the trade.

Sales promotion offers a reason to buy

Sales promotion offers an incentive to buy.

Sales promotion also includes tools for consumer promotion like

samples,coupons,cash refund offers ,prices off ,premiums,prizes,free

trails,warranties,point of purchase display and demonstrations etc.,

Sales promotion are used by organization ,including

manufactures,distributors,retailers,trade associations and non profit

organizations.

In ancient times the advertising to sales promotion ratio was about 60:40

but today the consumer packaged goods companies sales promotion

accounts for 65:75

Sales promotion expenditures have been increased as a percentage of

budget expenditure annually for the last two decades.

Several factors contribute to the rapid growth of sales promotion,

particularly in consumer markets they are :

Internal factors include:

1.Promotion is now more accepted by management as effective sales tool.

2.product managers are qualified to use sales promotion tools

3.product managers are under greater pressure to increase current sales

External factors include:

1.the number of brands has increase

2.Competitors use promotions frequency

3.Many brands are seen as similar

4.Consumers are more prices oriented

5.The trade has demanded more deals from manufacturers.

6.Advertising efficiency has declined because of rising costs,media coverage

and legal restraints.

Sellers use incentive type promotions to attract new prospects,to rewards

loyal customers and to increase the repurchase rates of occasional users.Sales

promotions often attract the brand switchers.

Marketing managers first estimate what they need to spend in trade

promotion and then they need to spend in consumer promotion.Whatever is left

they will budget for advertising.

In advertising take a back seat to sales promotion because advertising

typically acts to build brands loyalty.Sales promotion with its incessant prices

off,coupons,deals,premiums and blaring quality ,may devalue the product

offering in the buyer‟s minds.

HUMAN RESOURCES MANAGEMENT:

The Human Resouces manager will see the all the responsibilities of the store

while the customer are satisfied while they are shopping or not.The HR manager

will train the C.S.A.‟s of all the categories.He will decided how much of man

power is sufficient for the each category.The HR Manager recruits the people

and allocates how much salary they will have to pay them.

The HR will give the leaves to each category and he will allocate the working

hours to the people who are working in the store.He will allocate the worker for

the 1st and 2

nd shifts of the stores.

The HR manager will give the incentives to the category wise .The HR will

keep the records of the every category and they should be given a list of sales

day by day to the each category.He will take the attendance of the workers of

each category.In case of any shortage is held he will take the alternate decision

and want to allocate another person to that category.

The HR manager will work hard for the development of the organization

for that purpose he will trained up the member of each category by giving the

demo classes to all people.

The HR manager will motivates the workers in the organization and

gives some of the benefits to workers in the organization like safety and

security,health,bonus any compensation etc.,will be taken under the HR.

BILLING:

Billing is major part of the store without this the store will not move

forward.In this billing department the people will be take the all the

responsibilities while they are in duty about the money.They should very careful

while they are doing their job.Every day they will to shift takes place.The

people of both shifts will be attend at the end of the day and they should pay the

collected amount to the managers.

In case any items are returned by the customer the manager will give the

permission to cancel that bill and want to give the new bill.The people who are

billing they should know the offers and discount of the product which are in

stores ,and otherwise they will face so many problems with the customers and

so many times they may loose their value stores.

The mode of payment will be done on 4 type.

a. Cash

b. Credit

c. Coupons (sodexo,paper cuttings)

d. Gift vouchers

CATEGORIES:

Retail marketing industry is growing at rapid space in india.Government

policies are also helping the industries to have a strong foot hold part of the

product mix of the retail industry is FMCG that is bifurcated to food and Non-

Food.Food division broadly divided as biscuit ,beverages and noodles where as

non food segment is parted into skin,hair and body segment.So display of goods

of this segment is based on price range.The leading player among the existing

one is HLL with aroung 450 products followed by Henkel ,RBI and P&G.there

are around 48 bays in the spencer followed 5 selves in the displays

The total trading area 25000sqft in which the following break up may be

observed as

Home,Work and Play - 2800 SKU

FMCG - 3623 SKU

F&V - 1400SKU

Fashion - 5650SKU

Hi-Tech - 1450 SKU

Staples - 2440 SKU

Bakery and food - 800SKU

FRESH(F&V):

In the modern retail F&V (fruits and vegetables) is the important category

which diffr from common retailers the same concept is adopted by the bigger

companies like Reliance.F & V carriers some of the sub-categories like

vegetables , hard vegetables,leafy vegetables, imported fruits (litchi,Australian

grapes)exciting vegetables ,fruits,bakery items.To attract the common retailer F

& V section is the right section to differ from other competitors.If a lady

consumer satisfies with a stuff of F & V she will turn as a loyal customer to the

organization.

In Spencer‟s F & V section consists of

Onions,potatoes,Tomotoes,Cabbage,Brinjal etc., and leafy vegetables like :

Coriander ,curry leaf,palak etc.,and fruits are : Apple

,Banana,Grapes,Mango,Orange etc.,

STAPLES:

It is a category completed based on the quality .Staples are a day to day

essential category for A.P people and it is the destination category. Company

will put their own brands and sell it like Dal Rice ,Masala etc. Four P‟s in this

category is to be followed they are:

1. Price

2. Product Knowledge

3. Planogram

4. Promotions

There are sub-categories in staples category:

1. cereals : it consists of raw rice,wheat etc,.

2. Pulses: it consists of toor dal,urrad dal ,major and minor dals, channa dal ,

Green piece.

3. Floured: RAva-idly ,Bombay,maida,atta etc,.

4. Masala and spieces :dry fruits and spices

5. Oil: sun flower, palm. ground nut, rice rich ,ghee, vanaspathi etc,.

6. Salt: salt

7. Sweeteners: sugar, jag earn etc.

FMCG: (Fast moving consumer goods)

FMCG is the basis category which gives top line(sales) FMCG is the

60% business driving category , if a customer picks up a general basket value rs

300//- line value of FMCG will be 60%

There are 2 sub categories in it

Food

Non food

Food consist of tea ,mineral water ,aerated drink,fruit

juice,savories,potato chips Apadam,sauces,vermicelli,instead

noodles,pickles,corn flakes,health drink , milk Powder ,cream Biscuits, plain

Biscuits , wafers, paper Tissues, Chocolates, Toffees. Mint, Sweet etc,

Non-food category consists of powders/ Detergents, washing Bars, Floor

Cleaner, Toilet Cleaner, pooja ltems, Sanitary ltems, Mosquitoes/ Reptiles, Air

fresher, Agarbathi Tooth Brush, Tooth paste, Mouth Wash, Baby Toiletries,

Creams, Soaps, Lotions, Diapers ,shaving creams,razor Blades, OTC products

(over the counter) Hair oil color, Bath Accessories etc,.

H.W.P(Home Work And Play)

It is one of the major categories. It contributes 13% of store With high

margins (bottom line is strong ) customer service should maintain in this

category to get average sales, Average margin contribution is around 25% it is a

seasonal category in this season the contribution of Kitchen Hold ltims Will be

high

In Home Kitchen Ware, Table Ware, Home needs, Home décor, Gifts and

Novelties, Cleaning aids, Bathroom aids, Serving ladles, tainless Steel, plates,

Bake and Serve, Cookery, Serving Dishes, Glass Ware, Lend and Fashion like

bed sheets, towels, pillow covers, kerchiefs. Door croutons etc,.

In play Soft toys, Sports, Education and Entertainment. Board Games and

puzzles infant Toys. Play characters etc.

FURNITURE:

Furniture is one of the important cateagories in the stores. NoW-a days most

of the people are preferred for their luxuries life in the society.sothat people are

preferred for the nuclear families.Due to the increase in the nucoear families

there is an increase purchasing quantity. So that the people are wanted to live in

there own house, So that there is an increase in the furniture.

In this there are 6 subcategories for various standards.

a) Bed Room

b) Livingroom

c) Kitchen room

d) Cgukdren room

e) Iffuce room

f) Outdoor room

a. BED ROOM:

In this category the furniture will have different types of are there Which are to

be decorated in the bed room, to get good out look of the bed room, Due to the

increase in the nucoeat famioies there most be a importance came to the

furniture,

Some of the item in furniture which are decorated are bed, mattress, dressing

table, chairs, book stand ward robes unit,

b. living Room Furniture:

it is also known as Hall furniture, in every house the hall must be decorated

in a attractive manner for that purpose they want to place the furniture

items. So that many furniture companies are designed the living room furniture

with various designs and models which are in attractive manner, These are some

of the items which are decorated in the hall to good outlook is sofa set tables.

Chairs, T.V unit

Center table, book shelfs, magazine stands etc, corner tables, etc are come under

this category.

C. kitchen room furniture

Kitchen furniture is also important every home while the people are eating or

while doing the work in the kitchen they should be feel comfort, So that some of

the furniture items should be arranged compulsorily, So that some of the items

arranged in the kitchen are dinning table, chairs. Kitchen stands. Kitchen shelf,

s/ kitchen trolley,s. kitchen cupboards, etc,.

d.Children Room Furniture:

in every family the parents are take care about their children.s. studies so that

the parents are giving a separate room for their studies and for the playing

purpose. The parents want to create a good atmosphere and facilities for their

studies. Sleeping and playing purposes etc,. So that parents are arrange the

furniture in a simple manner to their children.

Some of the furniture items which are arranged in the childrens. Room are

bed mattress, chair study table. Book shelfs. Ward robes, computer table,

computer chairs, etc,.

e.office room furniture;

presently all the companies are want to create an ambiance among their

customers so that they want to decorate their offices with attractive among

manner. Due to these availabilities the people in the offices are doing their work

in a respectable

way. Some of the furniture items which are arranged in the office room are

Tables, Chairs, book shelves, ,agazome sstamd. Telephone stand, computer

chair etc, are come under category,

f. Out door Furniture:

Outdoor furniture is the one of the category in the furniture. People are like

to sit in the out door in the evening for the health air and also for the

freshness. Some of the furniture items which are arranged in the outdoor are

shoe rack, iron tables, jula, sofas, etc., are come under this category.

GARMENTS:

It is the only category which gives more margin than any other category the

margin with be 28 to 30%. That total sale contribution will be 9 to 10%

GARMENTS are of different kinds like MENS WEAR, LADIES, KIDS and

FASHION etc.,

MENS WEAR: Shirts, Jeans, T-Shirts, jackets, Kurtha, Pijama etc.,

LADIES : Dress materials, Salwar Suits, Tops, Skirts, Sarees, Nighties

KIDS: Frocks, Tops, 3/4items, Shirts, Jeans etc.,

FASHION : Foot ware, Junk Jewellery, Cosmetic, Brand Watches, Belts and

all inner wears

HI-TECH:

It is one of the major and important categories in the Hyper Market. It

contributes 25% of store sale. In this category all the

Skill is higher value. The items are divided into two categories they are

1. ELECTRICALS : Kitchen appears

Electronic Appliances

Electric equipments

KITCHEN APPEARS: Juicer / Mixer Grinder, Mixes, Hand

Blender, Micro Wave Oven, Rice Cookers, etc.,

COMFORT: Fans, Air conditioners etc.,

ELECTRICAL APPLIANCES: Iron Boxes, Emersion Rods

ELECTRICAL EQUIPMENT: Batteries, Bulbs, Tube Lights,

Lamps and Electrical Accessories

2. ELECTRONICS: Home Appliances

Audio

Digital

HOME APPLIANCES:Refrigerators, Washing Machine, Vacuum

Cleaners etc.,

AUDIOS: DVD players, Hi-Fi Systems, Home Theater, Speakers,

CTV‟s,LCD‟S

DIGITAL: Still Camera, Digital Camera

CATEGORIES IN SPENCER’S HYPER

VIJAYAWADA hyper have a seven categories, it is given be love

1. FASHION

2. HI-TECH

3. HWPLF

4. FMCG

5. STAPLES

6. F&V

7. BAKERY FOOD SERVICES

A) THE MAJOR CATEGORIES IN HYPER:

1. FMCG

2. STAPLES

3. F&V

B) THE SUPPORTING CATEGORIES IN HYPER;

1. HWPLF

2. FASHION

3. HI-TECH

4. BAKERY FOOD SERVICES

THE MAJOR CATEGORIES IN HYPER:

FMCG (Fast Moving Consumer Goods):

The total trading area is 4000sq.ft.

This categories has approximately 3500 SKU

This categories contains 30% of total store sale.

Ever day sales in FMCG section nearly Rs 1,00,000.

In weekends sale Rs.1,80,000

This categories items divided into two types.

a) Food items,

b) Non-Food items.

A) Food items: Food items are divided into two class like Processed food,

Beverage Food items.

Processed Food : Processed Food consist of a different types

bricks.

o Pickels

o Corn flakes

o Health drinks

o Ready to eat

o Honey jam

o Milk powers

o Baby foods

o Noodles vermicells

o Kur kury

o Lays

o Oats

o Chocolates

o Biscuits

o Mint etc.,

Beverages food : Beverages food divided two type families, like

hot drinks, soft drinks. This consist of a different types bricks.

They are as

follows

Hot drinks :

o Tea

o Coffee

o Alcoholic items

o Non alcoholic items

Soft drinks:

o Cool drinks

o Fruit juices

o Dairy items

o Frozen.

B) Non food items: Non food items are divided into two class llike home

needs, health and beauty items.

Home needs:

o Detergents

o Washing bars

o Flour cleaners

o Toilet soaps

o Air fresher

o Tissue roles

o Naptalin balls

o Pet car

o Baby toilet items etc.,

Health and Beatuty: Health and Beauty items divided three type

families as a

Hair Care:

o Hair care

o Hair colour

o Shampoos

o Otc

o Beauty oils

o Shaving needs

Skin care:

o Talcum powers

o Bath saops

o Spry etc

Oral care:

o Toot pasts

o Tooth brush etc.

STAPLES:

The total trading area is 1500sq.ft.

This categories contains 18% of total sale.

Every day sales I this section nearly Rs80,000

In weekends sale nearly Rs1,40,000.

In this categories pravite lable (spencer‟s brand) items

occupy 80% sku.

This categories items divided into eight type class.

1. Cereals

2. Pules

3. Floured

4. Masala and spices

5. Oil

6. Salt

7. Sweet nees

8. Dry fruit

9. Organic

Cereals :

o Rice

o Wheat

Pules :

o Toor dal

o China dal

o Moong dal

Floured :

o Idly rawwa

o Bombay rawwa

Masala and spices:

Oil :

o Sun flower oil

o Ground nut oil

o Olive oil

Salt :

o Salt

Sweetness :

o Sugar

o Jiggery

Dry fruits :

o Khaju

o Date fruit

F&V (Fruits and vegtables):

The total trading are is 1000sqft.

This categories has approximately 70sku

This categories contains 8% of total store sale.

Every day sales in this section nearly Rs.20,000.

In weekends sale nearly Rs 40,000.

Fruit and vegetables available three types, they are

basics, seasonal, extic.

Harabara offer: this offer special of spencer‟s every

Wednesday fruit and vegetables available love price

compare to other days and in the spencer‟s

This category divided three classes.

1. Fruits

2. Vegetables

3. Egg

Fruits : every class have a different type of bricks.

o Apples & Pears

o Citrus

o Berries

o Grapes

o Melon

o Tropics

o Temperate fruit

o Fresh band fruits

Fresh vegetables:

o Seeds

o Root veg

o Stems and shoots

o Leaves and salads

o Buds and flowers

o Fresh veg-fruits

Egg :

o Poultry egg

o Mushrooms

HWPLF (Home work play lenian fruniture):

The total trading area is 4000sqft.

This categories has approximately 3500sku/

This categories contains13% of total store sale.

Every day sales in this section nearly Rs 80,000.

HOME :

Kitchen ware : non stick ware

Table ware : dining accessories

Home needs:

o Photo frame

o Artificial lowers

o Vase

o Decorative candle

Gift & nonvelties: gift articles

Cleaning aid:

o Broom /brush

o Duster

o Cleaning implement

Bath room aids:

o Mugs

o Buckets

o Tubs

o Cleaning implements

Disposable:

o Paper towels

o Serving needs

o Falls

o Dry facial tissue

o Candle

o Party accessories

Pooja needs:

o Pooja aids

o Agarbathi

Baby needs:

Feeding & wearing

Grooming &hygiene

Cookware:

Non stick

Cooker accessories

Steel cookware

Aluminum cookware

Dining ware:

Dinner set

Cups &saucers

Kitchen tools metals:

Cutting aid

implements

Kitchen wooden

Plastics &thermo ware:

Storage plastic

Microwave ware

Thermo ware

Plastic accessories

Serve/Table ware:

Cutler knife

Sorage metal:

Lunch carrier

Fitter

Glass ware:

Dinner set-glass ware

Glass bowls

Glass plate,jug,jar etg..

Ceramic ware:

Dinner set,bowl,plate

Work:

Luggage:

Brief case

Travel bags

Two wheel trolley

Laptop bags

Tool:

Hand tool

Looks

Stationary:

Note books

Files & folders

School bags

PLAY:

Soft toys:

Animals soft toys

Sport:

Indoor, outdoor

Education & entertainment:

Multimedia

Art craft

Board games

Musical instruments

Vehicle:

Batter operated

Non batter operated

Play character:

Dolls, soft toys

Linen:

Bed:

Bed sheets & covers

Pillow & covers

Blankets

Comforts

Bath:

Bath towel

Hand towel

Face towel

Bath mats

Shower curtains

Kitchen :

o Kitchen towels

Dining :

o Glove

o Table met

FURNITURE:

Bed room: bed

Living room: side table

Dining room: dining table

Essential : study table, computer table

Storage solution: shoe racks, book shelf.

GARMENTS :

The total trading area is 2500sqft.

This category has approximately 6000sku.

This category contains 10% of total stores sale.

Every day sales in this section nearly Rs 40,000

In weekends sale nearly Rs.1,00,000

This categories only give more margin than other

categories, than margin with be 28 to 30%

Spencer‟s give offers always to customers on this

category.

1. Men‟s ware

2. Ladies ware

3. Kids ware

4. Fashion accessories

5. Foot ware

6. Basic ware

7. Lady bird

8. BHPV

Mens ware :

o Shirts

o Jeans

o T-shirts

o Tie

o Suits

o Trousers

Ladies ware :

o Sarees

o Dress materials

o Tops

o Skirts

o Sal war suits

Kids ware:

o Shirts

o Tops

o ¾ items

o Jeans

o Frocks

Fashion accessories :

o Junk jewellery

o Cosmetic

o Brand watches

o Belt and all cosmetics items

Foot ware

Basic ware

Lady bird

BHPV

HI-TECH:

The total trading area is 1700sqft.

This categories has approximately 80sku

This categories contains 8% of total store sale

Every day sales in this section nearly Rs 30,000

In weekends sale nearly Rs,50,000

BFS(Backery and Food services):

The total trading area is 1700sqft.

This categories has approximately 80sku

This categories contains 6% of total store sale

Every day in this section nearly Rs20,000

In weekends sale nearly Rs50,000

ADVERTISING

Advertising is a form of communication that typically

attempts to persuade potential customers to purchase or to purchase or to

consume Spencer‟s of a particular brand of product or service. While now

central to the contemporary global economy and the reproduction of global

production networks, it is only quite recently that advertising has been

Spencer‟s than a marginal influence on patterns of sales and production. The

formation of modern advertising was intimately bound up with the emergence

of new forms of monopoly capitalism around the end of the 19th

and beginning

of the 20th

century as one element in corporate strategies to create, organize and

where possible control markets, especially for mass produced consumer goods.

Mass production necessitated mass consumption, and this in turn required a

certain homogenization of consumer tastes for final products. At its limit, this

involved seeking to create world cultural convergence to homogenize consumer

tastes and engineer a convergence of lifestyle, culture and behaviors among

consumer segments across the world.”

Many advertisements are designed to generate increased consumption of those

products and services through the creation and reinvention of the brand image .

For these purpose, advertisements sometimes embed their persuasive message

with factual information. Every major medium is used to deliver these

messages, including television, radio, cinema, magazines, news papers, video

games. The internet, carrier bags and billboards. Advertising is often placed by

and organization. Organizations that frequently spend large sums of money on

advertising that sells what is not, strictly speacking, a product or service include

c and military recruiters. Non – profit organizations are not typical advertising

clients, and may rely on free modes of persuasion, such as public service

announcements.

Advertising in Spencer’s:

As per our observation, Spencer‟s majorly concentrates for advertising about

their store, by print media, local television advertisements and FM.

Print media: Spencer‟s concentration mostly on print media rather than

electronic medias like TV‟S internet their perception is that print media creates

a better impact and impression on customer minds. Spencer‟s mostly

concentrate on print media to advertise bout the discounts and offers of large

number of sku‟s and to keep remembrance in mind of the customer for that they

mostly concentrate on leaf lets and news papers.

Hoardings playing major role in advertising the brand of Spencer‟s adithya Birla

group to all types of customer like upper class and middle class customers

Spencer‟s concentrate upon advertisement on hording at every part of the city.

Electronic media: in electronic media, FM playing a major role in advertising.

Since in Vijayawada listeners for radios are quite in good number. But by only

these means on cant get good publicity. After launching of Spencer‟s private

labels they are using FM media Spencer‟s

VISUAL MECHANDISING:

Visual merchandising can be termed as a orderly, systematic, logical and

intelligent way of putting stock on floor. It has several aspects and involves sku

planning, store windows and floor displays, signs, design, fixtures and

hardware, props and mannequins. As retailing becomes increasingly complex

creating the right atmosphere in the store and presenting merchandising in the

right manner becomes more and more important.

To produce good visual merchandising, it is vital to understand the product and

the customer. Good visual merchandising means selling space is neat, easy-to-

see, follow and shop. It means merchandising arranged in a manner that enable

the customer to buy quickly, efficiently and comfortably.

IMPORTANCE OF VISUAL RCHANDISING

STORE DESGIN:

The store design and layout tells a customer what the store is all about, Lit is

very strong tool in the hands of retailer for communicating and creating the

image of the store in the mid of the customer, it is the creation of the image that

is starting point all marketing efforts. The importance store design needs to be

understood from the perspective of retailer as well as from the perspective of

consumer.

The design and lay out of the store are a means of communicating the

image of the retail store. The primary consideration the retailer tales in to

account while choosing the look for his store and the merchandising that he is

going to sell, creating store image is like giving a personality to the store it is

what the store is all about,

INTERIOR STORE DESIGN:

The interior store design is a function of the aesthetics within the store, the

merchandising sold within the space use for the same and the overall lay out,

now concerned each of these areas, the first factor that needs to be take in to

account is the amount of space allocated within the store. For the

merchandising, this often termed as space planning,

SPACE PLANING

It helps a retailer determine the amount of space available for selling and for

storage, it also helps determine the following,

The location of various departments

The location of various products waith in the department

The specific location for impulse products, destination areas,

seasonal

Products, products with specific merchandising needs, adjacent departments

etc.,

The relation of space to profitability

LIGHTING

Lighting is a key factor of retail design .The lighting screen to adopt has to be

decided upon keeping in mind the kind of products being sold in the store and

the target audience. Effective lighting is key to the sale of merchandising and it

helps create a favorable first impression.

PLANOGRAM

Planogram is a tool used by the retailer that helps determine the location of

merchandising with in a department .It is a diagram that visually communicates

how merchandise and props physically fit onto a store fixture or window to

allow for the proper visibility and price point options.

METHODS OF DISPLAY

Retailers while displaying their products may adopt various methods.

COLOUR DOMINANCE

This is simplest and most direct method of presenting merchandising .In such a

display merchandise is primarily displayed by color .Within the color display

the products may be displayed by size and style.

COORDINATE PRESENTATION

Many times it is effective to present merchandising are coordinate manner

.Presentation by coordination may be done for garments and can also can be

done for the home-fashions, bed and bath lines and even kitchen requisites.

PRESENTATION BY PRICE

In such a display, the inexpensive, bargain or merchandising is displayed first.

The volume of the product and the saving is dominant.

CHAPTER- 6

1) How do you know about Spencer‟s?

a) TV/FM b) Pamphlet c) Newspaper d) Others

Interpretation:

The above graph shows out of 100 respondents 20% of the people know through

T.V/FM , 12% of the people know through pamphlet, 15% of the people know

through newspaper and remaining 53% of the people know through others.

20%

12%

15%

53% TV/FM

Pamphlet

Newspaper

Others

2) What made you make to prefer Spencer‟s?

a) Quality b) price c) Services d) Others

Interpretation:

The above graph shows out of 100 respondents 44% of the people prefer for

quality, 16% of the people prefer for price, 25% of the people prefer for services,

15% of the people prefer for others.

44%

16%

25%

15%

Quality

Price

Services

Others

3) How many times do you visit to Spencer‟s?

a) Daily b) Weekly c) Forth night d)Monthly

Interpretation:

The above graph shows out of 100 respondents 20% of the people visit the store

daily, 37% of the people visit the store weekly, 12% of the people visit the store

forth night, 31% of the people visit the store monthly.

20%

37%12%

31%

Daily

Weekly

Forth night

Monthly

4) How much do you spent in every visit?

a) Below 500/- b) 500-1000/- c)1000-1500/- d) Above 2000/-

Interpretation:

The above graph shows out of 100 respondents 20% of the people purchase below

500/-, 34% of the people purchase 500-1000/-, 20% of the people purchase 1000-

1500/-, 26% of the people purchase more than 2000/-.

20%

34%20%

26%

Below 500

500-1000

1000-1500

Above 2000

What do you like about Spencer‟s store? Rate your experience in following

questions

5) Product Quality

a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

Interpretation:

The above graph shows out of 100 respondents 13% of the people delighted

with product quality,67% of the people happy, 15% of the people somewhat

satisfied and 5% of the peoples are dissatisfied.

13%

67%

15% 5%

Delighted

Happy

Some What satisfied

Dissatisfied

6) Product Variety

a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

Interpretation:

The above graph shows out of 100 respondents 26% of the people delighted

with product variety 39% of the people happy, 24% of the people somewhat

satisfied and 11% of the peoples are dissatisfied.

26%

39%

24%

11%

Delighted

Happy

Somewhat Satisfied

Dissatisfied

7) Product Availability

a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

Interpretation:

The above graph shows out of 100 respondents 29% of the people delighted

with product availability 43% of the people happy, 15% of the people somewhat

satisfied and 13% of the peoples are dissatisfied.

29%

43%

15%

13%

Delighted

Happy

Somewhat Satisfied

Dissatisfied

8) what do you rate Spencer‟s on product pricing.

a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

Interpretation:

The above graph shows out of 100 respondents 15% of the people delighted

with product pricing 52% of the people happy, 22% of the people somewhat

satisfied and 11% of the peoples are dissatisfied.

15%

52%

22%

11%

Delighted

Happy

Somewhat Satisfied

Dissatisfied

9) Store Ambience

a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

Interpretation:

The above graph shows out of 100 respondents 17% of the people delighted

with store ambience 40% of the people happy, 28% of the people somewhat

satisfied and 15% of the peoples are dissatisfied.

17%

40%

28%

15%

Delightde

Happy

Somewhat Satisfied

Dissatisfied

10) Convenient Location

a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

Interpretation:

The above graph shows out of 100 respondents 28% of the people delighted

with convenient location 66% of the people happy, 10% of the people somewhat

satisfied and 6% of the peoples are dissatisfied.

28%

66%

10% 6%

Delighted

Happy

Somewhat Satisfied

Dissatisfied

11) Fast & Accurate Billing

a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

Interpretation:

The above graph shows out of 100 respondents 24% of the people delighted

with fast & accurate billing 57% of the people happy, 19% of the people

somewhat satisfied and 10% of the peoples are dissatisfied.

24%

57%

19%

10%

Sales

Delighted

Happy

Somewhat Satisfied

Dissatisfied

12) Customer Service

a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

Interpretation:

The above graph shows out of 100 respondents 23% of the people delighted

with customer service 69% of the people happy, 12% of the people somewhat

satisfied and 6% of the peoples are dissatisfied.

23%

69%

12% 6%

Sales

Delighted

Happy

Somewhat Satisfied

Dissatisfied

13) Do you refer Spencer‟s brand to your friend?

a) Yes b) No

Interpretation:

The above graph shows out of 100 respondents 84% of the people are ready to

recommend to others 16% of the people are not ready to recommend to others.

84

16

Yes

No

FINDINGS

Discount offers are not very visible in Newspapers/T.V.

Billing counters were found inadequate/ slow billing.

All the offers are not being updated by the \IT administrator at the right

time.

In the store customer service associates do not have proper knowledge

in private labels.

Pops are not updated in the f&v (fruits& vegetables) and staples

section.

Parking space is very less, mostly in weekends.

fresh stock in ( F&V )fruits & vegetables is not available.

SUGGESTIONS

Discount offers to customers should be made more effective by

presenting advertisements in newspapers.

Billing counters which are being kept closed to be opened during rush

hours

Salesmen should improve their body language by being submissive and

cordial in receiving customers.

Special manpower to help customers to guide products to be allotted.

They need proper training and knowledge about products. Then they

can explain about the private labels.

It should be mandatory to update the pops in all section in store.

BIBLIOGRAPHY

Phillip Kotler Marketing Management

Swapna Pradhan Retail Management

Levy Weitz Retail Management

Websites:

Imagesretailing.com

Retail blitz

Google

Spencersretail.com