Overview of RPG Group

INTRODUCTION
Overview of RPG Group
RPG Enterprises, established in 1979, is one of India’s fastest growing business groups with a
turnover touching USD $3 billion. The group has more than twenty companies managing diverse
business interests in the areas of Power, Transmission, Technology, Retail and
Entertainment.
Wide-ranging businesses, growing returns and a reputation to reckon, makes working with RPG
an enriching experience. Where entrepreneurial skills are valued, excellence is the by-word, and
performance is a pre-requisite.
Management
The RPG Management Board is the backbone of the conglomerate. Its members are highly
qualified professionals, well experienced in their respective fields.
Values
RPG’s business ethics promote higher levels of excellence. The group’s values of Customer
Sovereignty, People Orientation, Innovation & Entrepreneurship, Transparency & Integrity, and
Passion for Superior Performance, Anticipation, Speed and Flexibility propel it to perform and
excel in all spheres of the business.
Quality
For RPG quality determines success. Continuous process improvements are carried out to ensure
complete satisfaction of customer and market requirements.
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G. L.BAJAJ INSTITUTE OF MANAGEMENT AND RASEARCH
OBJECTIVES OF THE STUDY
This project is based on the comparative study of consumer behavior towards Brand awareness
of Spencer’s and its comparative analysis with Big Bazaar & other retail organizations in
Lucknow city. Objectives of the study are:
 To study about the Brand awareness of Spencer’s.

 To analyze the organized retailer’s profitability drivers on the basis of Garments,
Gifts, Cards & Music Department.
SCOPE OF THE STUDY

As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is
all pervasive in our lives, psychologists do not agree on how learning takes place. How
individuals learn is a matter of interest to marketers. They want to teach retailers in their roles as
their roles as consumers. They want retailers to learn about their products, product attributes,
potential consumers benefit, how to use, maintain or even dispose of the product and new ways
of behaving that will satisfy not only the consumer’s needs, but the marketer’s objectives.
The scope of my study restricts itself to the Brand awareness of Spencer’s and its comparative
analysis with Big Bazaar & other retail organizations in Lucknow city. The scope of my study is
also restricts itself to Lucknow city only. The scope of my study restricts itself to analyze the
organized retailer’s profitability drivers on the basis of Garments, Gifts, Cards & Music
Department where as in the recent trend it's seen that the key players in retail industry are more
emphasizing on the Garments, Personal grooming, Home furnishings, Life style and footwear
Department in their Stores.
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LITERATURE REVIEW
Spencer's retail is the largest supermarket chain in India. They offer a complete range of
products & durables, from bread to bed cover; from toothpaste to even television sets. Today
Spencer's has 100 stores spread across 25 cities with a retail trading area of more than half a
million square feet, and we're growing rapidly. Spencer's is the shopping choice for millions
across the country, 2.8 million to be exact, who frequent our stores every month.
Today Spencer's offers its customers a customized and convenient shopping experience in 5
different formats. Each format, namely the Spencer's Express, Spencer's Fresh, Spencer's Daily,
Spencer's Super and Spencer's Hyper is differently sized and caters to the various needs of our
consumers. We at Spencer's offer a pleasant and delightful shopping experience by ensuring
convenient store locations, trusted quality, great value for money and a wide array of products.
And these qualities characterize all of our 100 stores, across the country.
The scope of my study restricts itself to the Brand awareness of Spencer’s and its comparative
analysis with Big Bazaar & other retail organizations in Lucknow city. The scope of my study is
also restricts itself to Lucknow city only. The scope of my study restricts itself to analyze the
organized retailer’s profitability drivers on the basis of Garments, Gifts, Cards & Music
Department where as in the recent trend it's seen that the key players in retail industry are more
emphasizing on the Garments, Personal grooming, Home furnishings, Life style and footwear
Department in their Stores.
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COMPANY PROFILE
History
The history of RPG began in 1820 when Ramdutt Goenka, from a small town in Rajasthan, came
to Calcutta to do business with the British East India Company. The following milestones speak
of his enterprising efforts, and the subsequent growth of the RPG group.
By the 1900s the Goenkas establish themselves in diverse business sectors like banking, textiles,
jute and tea.
Sir Hariram Goenka and Sir Badridas Goenka are conferred knighthood by the British for
outstanding contribution to business and the community. In 1933, Sir Badridas Goenka becomes
the first Indian to be appointed Chairman of the Imperial Bank of India (now the State Bank of
India). He is elected President of the Federation of Indian Chambers of Commerce and Industry
(FICCI) in 1945.
Keshav Prasad Goenka (son of Sir Badridas Goenka) continues the successful trait of
entrepreneurship. In 1950 Goenka’s acquire two British trading houses - Duncan Brothers and
Octavius Steel. After successful 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.
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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
Management Board
The Management Board comprises of highly qualified and experienced professionals from
different business areas.
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About RPG
RPG Enterprises is not only one of the biggest, but also one of the most respected names in the
industry. A US$ 3.4 billion business conglomerate, RPG is one of the powerhouses that drive
Indian Industry. With more than 20 companies, it spans 7 business sectors, Retail, Technology,
Entertainment, Power, Transmission, Tyres and Specialties- all under the RPG banner. Even with
such a diverse portfolio, the fact that RPG Enterprises has had nothing but only unrivalled
success in all these sectors, speak very highly of the efficiency and vision with which the
company is run. Over the years RPG Enterprises has built a huge reservoir of trust and goodwill
among the people of India. People at Spencer’s are truly proud to be a part of the RPG .
Their Heritage
Spencer’s quality’ is a time-tested phrase, which has been ingrained in the minds of the Indian
consumer for over 100 years now. And it still continues to evoke a warm aura of trust and
goodness. In 1863, since we first opened our gates to the Indian consumer, we have like all
successful businesses, re-invented ourselves with the times. But our endeavor, by which we still
stand firm, has always been to provide a pleasant and delightful shopping experience for you, our
valued customer. As RPG, when we took over Spencer’s, we pioneered the retail revolution in
India, by introducing the concept of specialty stores like Food World, Health and Glow and
Music World. And this pioneering spirit still burns strong. We feel proud to share the fact that in
2000, we introduced the Indian consumer to the first ever Hypermarket.
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RPG Values
• Customer Sovereignty
• People Orientation
• Innovation and Entrepreneurship
• Transparency and Integrity
• Anticipation, Speed and Flexibility
Passion for Superior Performance
Customer Challenges
 Enable rapid business expansion
 Improve performance
 Add room for growth
 Ensure IT systems' availability
Solution
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Spencer's Retail based its production environment on Sun SPARC Enterprise servers that run
SAP ERP software. The infrastructure includes Sun storage solutions and a remote disaster
recovery site with Sun SPARC Enterprise and Sun Fire servers. When implementation is
complete, more than 350 stores will connect to the new system.
Business Results
 Improved performance
 Increased scalability
 Ensured IT systems' availability
Reduced space and power requirements
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Technology in Retail: The ERP Initiative at Spencer's Retail Ltd.
Over the years, during the turn of twentieth century as the consumer demand increased and the
retailers geared up to meet this increase world over, technology evolved rapidly to support this
growth. The hardware and software tools that have now become almost essential for retailing can
be classified into 3 broad categories:
Customer Interfacing Systems
 Bar Coding and Scanners
Point of Sale (POS) 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.
 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.
 Internet
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Internet is also rapidly evolving as a customer interface, removing the need of a customer
physically visiting the store.
Operation Support Systems
 ERP System
Various Enterprise Resource Planning (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 warehousing and mining technologies offers retailers the
tools they need to make sense of their consumer data and apply it to business.
 Advanced Planning and Scheduling Systems
APS systems can provide improved control across the supply chain, all the way from raw
material suppliers, right through to the retail shelf. They enable consolidation of activities
such as long term budgeting, monthly forecasting, weekly factory scheduling and daily
distribution scheduling into one overall planning process using a single set of data.
Strategic Decision Support Systems
 Store Site Location
Demographics and buying patterns of residents of an area can be used to compare various
possible sites for opening new stores. Today, software packages are helping retailers not
only in their locational decisions but in decisions regarding store sizing and floor-spaces
as well.
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 Visual Merchandising
The decision on how to place and stack items in a store is no more taken on the gut feel
of the store manager. A larger number of visual merchandising tools are available to him
to evaluate the impact of his stacking options.
To manage this kind of growth, it was necessary to move out of legacy systems, as they
didn't provide the scalability that was needed. Plus, some of its stores are currently
working on as many as four different legacy systems, managing which was very difficult.
It needed a solution to manage everything under one umbrella. So it engaged a team of
experts to evaluate various solutions in the market. Spencer's found that SAP came
closest to fulfilling its needs. Project Shakti has been operating for the last two years out
of Chennai and it has already gone live in seven States – Andhra Pradesh (Vizag since 17
November 2006), Haryana (Gurgaon, since March 08, 2007), Maharashtra, Gujarat, West
Bengal, Jharkhand, and Karnataka (Bangalore, since 1 July 2008). Spencer's Retail has
rolled out its SAP solution to approximately 207 stores and expects to complete
deployment to more than 350 stores by October 2008. While 53% stores run on SAP,
28% stores run on Oracle and 18% stores run on FoxPro.They are using the latest
MySAP ERP IS Retail ECC 6.0 for their operations in Books & Beyond, and are
gradually migrating the rest to SAP.
At RPG, the businesses are divided into three entities (Spencer's, Music World and Books &
Beyond). Spencer's business is basically procurement of articles from respective distribution
centres (DC) and selling to customers. The DCs in turn would be procuring articles based on the
site's need from different vendors. The business processes covered under this are purchase, sales,
inventory controlling along with financial accounting. The challenges faced during the
implementation are managing the different pricing procedures which change very rapidly,
managing the promotions; automation of the POS information, high volume of information to be
processed, GMROI (Gross Margin Return on Investment) etc.
They have followed SAP Methodology during the course of this implementation. The Project
leader from SAP India gathered the necessary KPI's, Dimensions and reports from the functional
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consultants. Based on these inputs he prepared a Data Model and the Blue Print. Taking this Blue
print as input the team at RPG was responsible in preparing the technical specs and also
realize/develop the objects.
With ERP, high-availability is a challenge as the network over which the data travels from, say, a
datacenter to the store is not within its control and belongs to an external agency. Spencer's ERP
datacenter is based out of Kolkata along with the business warehousing servers. For data
processing, they have 'staging servers'. These are intermediary servers to store data temporarily
before moving it to the SAP Production server. Eventually, all stores and warehouses across all
locations will be integrated with its datacenter and shall be working on a real-time basis, except
for the PoS billing system. At the end of each working day, the data is sent to the parent
datacenter for processing and analytics.
While some basic infrastructure is in place already, they are gradually implementing business
intelligence into their system in due course.
An important pillar of retail business is ERP, which has three elements – People, Process and
Technology. The People part is most difficult to manage as it needs to recruit, train and motivate
people constantly, generate awareness and do change management. This makes the task more
challenging, as it needs to manage deployments in such a dynamic environment keeping pace
with the company's exponential growth plans.
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Operations
Spencer's has retail footage of over 1 million square feet and over 275 Spencer's stores in 50
cities. The company operates through the following formats:
 The Spencer's Hyper stores are destination stores, of more than 15,000 sq. ft in
size. They offer everything under one roof. The merchandise ranges from fruits &
vegetables, processed foods (Ready to Eat, Ready to Cook, FMCG
products),specialty foods including international, sugar free, organic foods,
etc...groceries, meat, chicken, fish, bakery, chilled and frozen foods, garments,
consumer electronics & electrical products, home care, home décor & home
needs, office stationeries, soft toys. Besides, the stores also comprise book &
music retailing, electronic gadgets and IT accessories. On an average, a Spencer's
hyper stocks 70,000 SKUs across 35,000 items.
 The Spencer's stores are neighborhood stores ranging from 1500 less than 15000
sq. ft. These stores stock the necessary range and assortment in fruit and
vegetables, fmcg food and non-food, staples and frozen foods and cater to the
daily and weekly top-up shopping needs of the consumer. Some of these stores
which have floor area of more than 10,000 sq ft sometimes offer home care
products; personal care products, bakery, chilled and frozen food; baby care,
basics in garments and limited range of electronics and electrical.
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Vision
To “build Spencer’s as the most professionally managed retail business in the country through:
 Excellence in all operating process;

 Nurturing and facilitating a learning and growth culture;
 Building a unique retail experience for the customers”.
Mission
Strives to exceed the aspirations of its customers for a healthy and fulfilling lifestyle by
providing:
 The most innovative customer goods and delectable taste experience.

 The ultimate shopping experience.
 Unbeatable value.
 The “next” place away from home or office to relax and indulge themselves.
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Major Investment plan
1. It will be going in for a public issue within the next 12 months to raise capital for
expansion.
2. The company will be investing Rs.10 billion over the next three years using both
internal sources and an IPO.
3. The company has already reserved 1 million sq ft of space all over the country
and will be creating close to 10,000 jobs in its different formats.
4. Spencer’s Retail currently employs 4,500 people and has 6 million sq ft of space.
Spencer’s milestone
 1863- John William Spencer and Charles Durant open the first ever Spencer store in
Chennai.
 1920 Spencer’s becomes the first grocery store in India.
 1980 Spencer’s becomes the first supermarket chain under Food World in India.
 1989 RPG Enterprises buys a majority stake in Spencer’s.
 1995 Spencer’s enters into a Technology Assistance Agreement with Dairy Farm
International Holdings Ltd. ,Hong Kong, to set up the Food world chain of supermarkets
in India.
 1996 First Food world store inaugurated in R A Puram, Chennai, by M. S. Subbulakshmi,
renowned Karnatic musician.
 2001 First hypermarket inaugurated in Musheerabad, Hyderabad, by Krishna Yadav,
Labor Minister of Andhra Pradesh.
 100th Foodworld store inaugurated in Pondicherry.
 2006 Joint venture with Dairy Farm International Holdings terminated
 First new store under the Spencer’s brand name inaugurated in West Mambalam,
Chennai 2008.
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 75,000 sq ft flagship store inaugurated at South City Mall, Kolkata
 +First standalone store inaugurated at Vadodara
 Exclusive tie-up with £ 3 billion Woolworths plc, UK, for retailing their internationally
acclaimed toy brand,Chad Valley, and their Ladybird brand of kidswear; the latter is
Woolworths first international tie-up in the children’s apparel segment.
 Tie-up with Au Bon Pain, the Boston-based fast casual dining and bakery caf é chain
having more than 200 outlets in America, South Korea, Taiwan and Thailand.
 Alliance with Beverly Hills Polo Club – its first international tie-up in fashion.
 2009 Launch of first Shop-in-shop Gourmet store in Kolkata.
 Launch of first standalone Fish-n-meat store in Kolkata.
 Launch of first hyper of the state of Tamil Nadu in Tiruchira
Formats of Spencer’s outlets
Spencer’s has retail footage over 2 million square feet and over 400 Spencer’s stores in 65
cities.
The Company operates through the following formats:
1. Spencer’s Hypermarkets: A fast growing retail network of hypermarkets with large

format stores in Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag,
Vijaywada, Aurangabad, Durgapur and Kolkata.
2. Spencer’s super: One of the largest supermarket chains in the food and grocery
segment in India.
3. Spencer’s Daily: Small format stores conveniently located with a range of products to
meet daily household needs.
4. Spencer’s express: Food and grocery store next door.
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Spencer’s Daily
Fresh Fruit Stall Market stall Manton Market
 The Spencer’s Daily store is a friendly neighborhood store, which caters to the entire
daily shopping needs- from regular groceries to fresh food and also weekly top-up
shopping.
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 It is about 4000-7000 sq ft in size and with a bright and friendly atmosphere; Spencer’s
Daily saves the hassle of bargaining with the local kirana shop owners (because it offers
the lowest possible prices).
Spencer’s Express
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 Spencer’s Express is a store next door for the fresh needs at arm’s length.
 These stores are around 1000 sq ft in size. They are open from 7 am to 9 pm and also
provides with home delivery.
 The Express stores stock dairy, fruit and vegetables, bread and bread products, cut
vegetables/ready to cook, fruit juice, fresh batter, fresh coffee/tea, fresh masalas, fresh
pickles, fresh Ghee, fresh Fish and meat.
Spencer’s Fresh
 Spencer’s fresh stores provide with an enjoyable and convenient shopping

environment in very own neighborhood. These 2000 sq ft. air conditioned
stores are well stocked with Fresh food of very best quality, such as fresh
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farm produce, vegetables, fruit, milk, eggs, breads and much more. With
an impressive range and a clean, bright and hygienic ambience, Spencer’s
Fresh is far better the regular sabzi mandis or local vegetables markets and
at Spencer’s.
 Fresh consumers not only do get fresh, clean and tasty farm produce but
also the lowest possible prices in the locality, yes even lower than
sabziwala!
Spencer’s Super
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 The Spencer’s Super is the place to go for the monthly shopping.
 About 8000-15000 sq ft. in size, the Spencer’s Super not only caters to the daily
needs but also stocks home care products; personal care products, Bakery, Chilled
and frozen food; Baby care besides groceries & staples, Fresh fruits and
vegetables.
Spencer’s Hyper
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 The Spencer’s Hypermarkets are huge destination stores, more than 25,000 sq
ft. in trading area. Shoppers come here looking for fantastic deals across all
categories.
 Hypermarkets ensure a comfortable, clean, bright and functional ambience to

shop along with the convenience of finding everything under one roof at the
best value for money.
SNAPSHOT
Different Formats of Spencer’s
Format Stocks Minimum Trading

Area (sq. ft.)
Spencer’s Express dairy, fruit and vegetables, bread and bread
products, fruit juice, fresh batter, fresh 1000
coffee/tea, masalas, pickles, Ghee, Fish and
meat.
Spencer’s Fresh vegetables, fruit, milk, eggs, breads 2000
Spencer’s daily regular groceries 4000-7000
Spencer’s Super home care products; personal care 8000-15000

products, Bakery, Chilled and frozen food;
Baby care products
Spencer’s Hyper Miscellaneous More than 25000
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RETAIL INDUSTRY
RETAIL DEFINITION:- The word ‘retail’ is derived from the French word ‘retailer’ meaning
“to cut piece off “ or “tom break bulk”.it includes all the activates directly related to the sales of
goods and services to the ultimate consumer for personal or non –personal business use . in simple
terms, it implies a first-hand transaction with the consumer.
INTRODUCTION:-
“Retailing today is not only about selling at the shop, but also about surveying the market,
offering choice and experience to consumers, competitive prices and retaining consumers
as well”
Retailing is the final step in the distribution of merchandise - the last link in the Supply Chain -
connecting the bulk producers of commodities to the final consumers. Retailing covers diverse
products such as foot apparels, consumer goods, financial services and leisure.
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A retailer, typically, is someone who does not effect any significant change in the product except
breaking the bulk. He/ She are also the final stock point who makes products or services
available to the consumer whenever require. Hence, the value proposition a retailer offers to a
consumer is easy availabilities of the desired product in the desired sizes at the desired times.
In the developed countries, the retail industry has developed into a full-fledged industry where
more than three-fourths of the total retail trade is done by the organized sector. Huge retail
chains like Wal-Mart, Carr four Group, Sears, K-Mart, McDonalds, etc. have now replaced the
individual small stores. Large retail formats, with high quality ambiance and courteous, and well-
trained sales staff are regular features of these retailers.
TYPE OF RETAIL
1* Organized Retail- 3%
2* Unorganized Retail- 97%
Organized vs. unorganized Retail
Organized Unorganized
Owner usually not the operator Owner usually the operator
Supply chain management No SCM dependent on distributors & suppliers
Automation Virtually no automation
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Presence of store brand Absence of store brand
Wider assortment &range of products Lesser range & assortment of products
Large scale operations Small scale operations
Growth of organized retailing in India
Retailing- one of the largest sectors in the global economy is going through a transition phase
not only in India but the world over. 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.
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The Indian Retail market, rated as the second most attractive destination among emerging
markets globally, is in the midst of a gigantic transformation, thanks to a plethora of changes
within the segment and outside, with mounting international and domestic pressure to open up
the economy, with Indian corporate houses and investors taking active interest in retailing, and
with the Government realizing the importance of modernizing the sector, Organized Retail could
well become a major driver of the economy in the years ahead.
The sector can greatly induce consumer spending in the domestic market.
Various reasons are responsible for the growth of Indian retail:
1. Increased per capita income of the Indian consumer

 Increase in disposable income of middle class households.
 20.9% growth in real disposable income in ’99’-03.
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2. Growing high and middle income population at a pace of over
10% per annum over last decade.
3. Affordability growth:
 Falling interest rates

 Easier consumer credits
 Greater variety and quality at all price points.
4. Improvement in infrastructure are enlarging consumer markets

and accelerating the convergence of consumer tastes.
Liberalization of market for consumer goods, this has helped the
MNC brand to make in roads into Indian markets by offering
wide range of choices to Indian consumers.
5. Changing mindset of Indian consumer

 Increasing tendency to spend
 Post Liberalization youth population is nearly 100 million
6. Greater levels of education.
7. Shift in the consumer demand for higher brand
8. Internet is making consumers more accessible
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Reach of satellite TV channels, which are helping in creating
awareness about global products for local markets.
9. Reduction of custom duties of CE, personal care Dairy

Product.
10. The urban customer:

 Getting exposed to international lifestyle
INTRODUCTION OF SPENCER’S RETAIL
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 350 stores across 50 cities covering a retail trading area of 1.3 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
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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 Spence
SWOT Analysis
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of
planning and helps marketers to focus on key issues. SWOT Stands for strengths, weaknesses,
opportunities, and threats. Strengths & weaknesses are internal factors. opportunities, and threats
are external factors.
 Strengths
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 Spencer’s have good brand awareness among the consumers.
 Spencer’s in FMCG sector.
 Spencer’s retail specialist marketing expertise.
 Weaknesses
 The consumers are not much satisfied of the offers introduced by Spencer’s.
 Big Bazaar has better product range than Spencer’s.
 Big Bazaar has better promotional schemes than Spencer’s.
 Opportunities
 To become better in the business of garments.

 To be accepted by the consumers in comparison to other retail stores.
 To develop better marketing strategy than retail outlets.
 Threats
 Big Bazaar & Vishal Mega Mart are huge threats to Spencer’s.
 Big Bazaar have greater acceptance among the consumers in comparison to Spencer’s.
Comptative awarness of some other brand
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Big Bazaar
Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big
Bazaar scores over other stores is its value for money proposition for the Indian customers.
At Big Bazaar, you will definitely get the best products at the best prices - that’s what we
guarantee. With the ever increasing array of private labels, it has opened the doors into the world
of fashion and general merchandise including home furnishings, utensils, crockery, cutlery,
sports goods and much more at prices that will surprise you. And this is just the beginning. Big
Bazaar plans to add much more to complete your shopping experience.
The Big Bazaar is the discount store which offers a wide range of products under one roof. The
products include apparels and non-apparels such as utensils, sports goods and footwear. The
Food Bazaar provides a range of food and grocery products ranging from fresh fruits and
vegetables, staples, FMCG products and ready-to-cook products. The Central offers a chain of
stores including books and music stores, global brands in fashion, sports and lifestyle
accessories, grocery store and restaurants. The Group's other formats include, Depot, Shoe
Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and Sitara. It
also operates an online portal, futurebazaar.com.
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What started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is today
a conglomerate encompassing 180 showrooms in 100 cities / 24 states. India’s first hyper-
market has also been opened for the Indian consumer by Vishal. Situated in the national capital
Delhi this store boasts of the singe largest collection of goods and commodities sold under one
roof in India.
The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic leadership of
Mr.Ram Chandra Agarwal . The group had a turnover of Rs 2884.43 million for fiscal 2006 and
Rs. 6026.53 million for fiscal 2007.
The group’s prime focus is on retailing. The Vishal stores offer affordable family fashion at
prices to suit every pocket.
The group’s philosophy is integration and towards this end has initiated backward integration in
the field of high fashion by setting up a state of the art manufacturing facility to support its retail
endeavors.
Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price
ranges. The showrooms have over 70,000 products range which fulfills all your household needs,
and can be catered to under one roof. It is covering about 29, 90, 146 sq. ft. in 24 states across
India. Each store gives you international quality goods and prices hard to match..
Subhiksha was an Indian retail chain with 1600 outlets selling groceries, fruits, vegetables,
medicines and mobile phones. It was started and is managed by R Subramaniam, an IIM
Ahmedabad alumnus. Subhiksha plans to open 1000 outlets by December 2008. [1] He also plans
to invest Rs.500 crore to increase the number of outlets to 2000 across the country by 2009.its
turn over was 2305 crore in financial year 2008.
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The name Subhiksha means prosperity in Sanskrit. It opened its first store in Thiruvanmiyur in
Chennai in March, 1997 with an investment of about Rs. 5 lakhs. The retail chain has seen a
considerable growth by offering goods at cheaper rates and there by increasing its customer base.
It is also dubbed as India's largest retail chain.vision to deliver consistently better value to Indian
consumers, has guided Subhiksha to deliver savings to all consumers on each and every item that
they need in their daily lives, 365 days a year, without any compromise on quality of goods
purchased.
Subhiksha now has the pan Indian presence with stores across Delhi, UP, Punjab, Haryana,
Gujarat, Maharashtra, AP, Karnataka and TN. It has recently commenced operation in Kerala
also. Today, it is a multi-location, professionally managed and vibrant organization. Subhiksha
now has even opened Specialized Mobile shops called Subhiksha Mobile where mobiles are sold
at a discounted price.
As of January 2009, Subhiksha has been facing severe financial crises pertaining to liquidity.
This has led to the shutting down of a large number of stores.
Since its inception in 2006, Reliance Retail Limited (RRL) has grown into an organization that
caters to millions of customers, thousands of farmers and vendors. Based on its core growth
strategy of backward integration, RRL has made rapid progress towards building an entire value
chain starting from the farmers to the end consumers.
In the last year, Reliance Retail Limited (RRL) continued to fulfill its commitment of enriching
Indian consumer’s shopping experience and providing quality merchandise at an attractive value
proposition. More than 3 years into operation, RRL has now expanded its presence in more than
Page 33
85 cities across 14 states in India. RRL forged ahead with its expansion plans and rolled out
stores across the country. RRL’s footprint now spans a network of more than 1,000 stores.
RRL operates several ‘value’ & ‘specialty’ formats. The ‘value’ formats that RRL operates are:
‘Reliance Fresh’, a neighborhood concept, ‘Reliance Mart’ under one roof supermarket concept
& ‘Reliance Super’, a mini-mart concept. The ‘value’ formats offer a wide range and assortment
of products required for daily household needs.
The ‘specialty’ formats are: ‘Reliance Digital’, a consumer durables & information technology
concept, ‘Reliance Trends’, an apparel & accessories concept, ‘Reliance Wellness’, a health,
wellness & beauty concept, ‘is tore by Reliance Digital’, an exclusive Apple products concept,
‘Reliance Footprint’, a footwear concept, ‘Reliance Jewels’, a jeweler concept, ‘Reliance
Timeout’, a books, music & entertainment concept, ‘Reliance AutoZone’, an automotive
products & services concept and ‘Reliance Living’, a home ware, furniture, modular kitchens,
furnishings concept.
Research Methodology
This chapter describes the methodology of the study. This project is based on information
collected from primary sources. After the detailed study, an attempt has been made to present
Brand awareness of Spencer’s and its comparative analysis with Big Bazaar & other retail
organizations towards the people. The data had been used to cover various aspects like price of
various commodities available at Spencer’s and Big bazaar. In collecting requisite data and
information regarding the topic selected, I went to the outlets of Spencer’s, Big Bazaar & Vishal
Mega Mart of Lucknow city and collected the data.
Survey design:
The study is a cross sectional study because the data were collected at a single point of time. For
the purpose of present study a related sample of population was selected on the basis of
convenience.
Page 34
Sample Size and Design:
A sample of 100 peoples & 3 stores was taken on the basis of convenience. The actual customers
were contacted on the basis of random sampling.
Research Period:
Research work is only carried for 3 weeks.
Research Instrument:
This work is carried out through face to face survey &self-administered questionnaires. The
questions included were open ended, dichotomous and offered multiple choices.
Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
 Primary Source: The primary data comprises information survey of “Brand awareness
of Spencer’s and its comparative analysis with Big Bazaar & other retail organizations ”.
The data has been collected directly from respondent & with the help of structured
questionnaires.
 Secondary Source: The secondary data was collected from Company’s website and
price list of the companies.
Data Analysis:
 The data is analyzed on the basis of suitable tables by using mathematical techniques.
The technique that I have used is pie graphs, Bar graphs, with MS Excel .
Page 35
LIMITATIONS OF THE STUDY
In attempt to make this project authentic and reliable, every possible aspect of the topic was kept
in mind. Nevertheless, despite of fact constraints were at play during the formulation of this
project. The main limitations are as follows:
 Due to limitation of time only 100 people & 3 stores were selected for the study. So the
sample of people & stores was not enough to generalize the findings of the study.
 The main source of data for the study was primary data with the help of self-administered
questionnaires. Hence, the chances of unbiased information are less.
 Retailers were hesitant to disclose the true facts.
Survey on Spencer’s retail

What is the thought of people about Spencer’s retail?
1. Have you heard of Spencer’s?
Yes 93
No 7
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Yes
No
2. Have you visited Lucknow city Spencer’s earlier?
Yes 90
No 10
Yes
No
3. Visited Lucknow Spencer’s once, twice or more?
Once 12
Twice 19
More than Twice 69
Page 37
Once
Twice
More than Twice
4. Peoples not visited to local retail stores?
Local shops 10.0

Big Bazaar 20.0
Any other stores 70.0
Column1
Local shops
Big Bazaar
Any other stores
5. Spencer’s products range available to customers?
Spencer’s 3%
Page 38
Big Bazaar 5%
Vishal Mega Mart 15%
Others 77%
Spencer’s
Big bazaar
Vishal Mega Mart
Others
6. Spencer’s in FMCG?
Spencer’s 67%
Big Bazaar 25%
Vishal Mega Mart 8%
Page 39
Spencer’s
Big Bazaar
Vishal Mega Mart
7. Spencer’s in garments?
Yes 8
No 92
Yes
No
8. Spencer’s in F & V?
Yes 22
No 78
Page 40
Yes
No
Data Analysis and Interpretation
ANALYSIS OF THE STUDY ON SPENCER RETAIL
Types of Customer:
Page 41
Spencer is a major player in the Indian organized retail industry. They have a good customer
base in the high class level income group. Mainly they are focusing on the Men-Women-Kids
Apparel, gifts and also in the home furnishing products. They have huge music, cards or cookery
departments.
TYPES OF TARGET CUTOMER

HIGH GRADE INCOME LEVEL 75%
MEDIUM GRADE INCOME LEVEL 20%
AVEREGE GRADE INCOME LEVEL 5%
Chart Title
80%
60%
40%
20%
0%
HIGH GRADE MEDIUM GRADE AVEREGE
INCOME LEVEL INCOME LEVEL GRADE INCOME
LEVEL
From the above the analysis it’s revealed that though a very few numbers of low grade income
level customers are visiting the garment section but in the gifts section we have found that the
products are unreachable for the average level income groups.
Flow of customer in different departments:
Here we have analyzed the flow of customer’s per day basis. For this reason we have studied
customer flows on an average of high customer flow days.
Inter-Department Customer Flow

DEPARTMENT NUMBER OF CUSTOMER
GARMENTS DEPARTMENT 350
GIFTS DEPARTMENT Page 42700
G. L.BAJAJ INSTITUTE
MUSIC OF MANAGEMENT AND
DEPARTMENT 900 RASEARCH
In Spencer we have found that the average customer flow lies between 650-700 on average high
customer flow day.
The main products categories in Spencer basically the Music and home furnishing products
related to gifts items. We have found that in the case of garments department customer flow is
350 per day bases and in the case of gifts departments its 600 to 700 per day basis. It’s noted that
the gifts department consists of exclusive products.
Value of Stock in the different department:
VALUE OF THE STOCK

DEPARTMENT (Rs)
The garment GIFTS DEPARTMENT 5050000 section is divided
MUSIC DEPARTMENT 8060000
into Men, women and kids section as
well as lifestyle accessories and
shoe wears. They have all the major brands like Blackberry, Louis Phillips, Lee Coopers, Van
Hausen, Parx, Lee for in the men category, Melanga, Code, Ginger in the women category and
for the kids section they have brands like Bossini, Benetton, Orchestra, Juniors, Teeny Tiny,
Artex etc.
The garments section includes:
1. Watch section for the brands like Fast track, Zodiac, Hugo-boss, Nautica, Marie Claire,
Casio, Guess, GC, Kenneth Cole, Aspen, Skagen, Levi’s, Adidas etc.
2. Sunglass section for the brands like Ferrari, Mojo, Mont blanc, Scott, Guess etc.
3. Fashion accessories for the brands like Tribal Zone, Sarah, Fire Fly, Adrika, Earrings,
Necklace, Bracelet, Anklet, Bangles, Hair Clips, Bra Straps, Scrunges, Men’s Jewelry,
Kids Fashion.
Page 43
All these product range are exclusively for the High grade income level customers.
The gifts section is consisting of high class home furnishings and personal grooming products.
They are introducing it by the name of “Home Centre”. It’s a one-stop destination for furniture,
home ware and home furnishings that enterprises elegance, luxury and individuality. Home
Centre houses a wide range of contemporary and classic furniture, linen as well as other home
accessories, thus providing customers a high range product.
Revenue generated by the different department:
REVENUE PER
In 2007-08 (Rs)
DEPARTMENT
GIFTS DEPARTMENT 4000000
MUSIC DEPARTMENT 6500000
TOTAL 12500000
The average revenue earned per customer basis is more Rs.15000. Comparison of revenue
generated by the each department is taken into consideration on an average of high customer
flow days.
From the above analysis it’s found that the average customers in the all departments are basically
high grade income level customers.
Garment Department:
Overview:
In Garment department the products are mainly the major international readymade brands and
price ranges lies between Rs.800 to Rs.2000 averagely which is meant for a few Indians
customers.
Findings:
Page 44
The products exclusively for a certain income level customers. Maximum products are
unreachable for the medium and average income level customers.
Suggestions:
They are focusing a very few Indian customers and the most of the Indian consumers can’t afford
this price range. So if they want to increase their market share in the Indian retail Industry they
should introduce such product range also which can be affordable for the medium level income
groups and the main customer in the retail industry lies within it.
Gifts Department
Overview:
Gifts department is consisting of various product categories from home furnishing products to
personal grooming products.
Findings:
In the Spencer we have found a wider range of glass made and metal products which are
exclusive and also the quality isn’t up to the price levels. Whatever, the stock is sufficient to
satisfy its customers but the price range is found very high as a gift product in this department.
Suggestions:
Again the Indian retail industry is targeting the medium level income group people as its
increasing day by day but the products in the Spencer store is meant only for the high class
consumers which is very low in population in India. Also an important point is noted that though
the volume is sufficient but the variety in product categories as a gift isn’t sufficient.
Music Department
Page 45
Overview:
Music section consist of Music CD;s, Game CD & DVD’s and also Movie DVD’s.
Findings:
Spencer has introduced very low range cd & dvd’s like “Moserbear” music and movie cd-dvd’s
and price range lies in between Rs 30 to 100. Basically they are gaining a competitive business at
the age of piracy products in this industry. Also they have a very good collection in games cd-
dvd categories at a low price range of Rs 100 to 200 whereas if anyone go to the open market the
average price range is Rs 300 to 400 for the copyright product.
Suggestions:
Spencer is earning more revenue by its music section. In the music it’s found that the collection
of cd’s and educational cd’s low than the music games cds. They are emphasizing on the low
price mp3 and game cds where as there is also a demand for educational and movies cd-dvd’s.
Analysis of the study on Big Bazaar
In the Indian Retail Scenario Big Bazaar has a great success to create a revolution. Basically they
have differentiated their customers on the basis of customers rather than their income level. Later
on we will analyze these aspects. Here we are analyzing which income level of customers are
generally tended to purchase the products in Big Bazaar department wise:
Percentage of customers flows department wise
Page 46
Type of customer Garment Gifts Section Music Cards
section section section
High grade income level 10% 15% 50% 7%
Medium grade income level 50% 55% 40% 53%
High grade income level 40% 30% 10% 40%
100%
90%
80%
70%
60% High grade income level
50% Medium grade income
40% level
30% High grade income level
20%
10%
0%
Garment Gifts Music Cards
section Section section section
From the above details it is found that the garment section they are targeting the middle and
average level of customers. They are not promoting any major brands and they have their own
brand towards the major brands in garments industry. Flow of high level of customers I music
section is better than the other department. Generally upper middle and medium class and also a
good percentage of average income level customers visits their old departments.
Flow of customers in different departments:
Here we have analyzed the flow of customers per day basis. For this reason studied customer
flows on an average of high customer flow days.
Inter-Department Customer Flow
Department Number of customer

Garments Department 1600
Page 47
Gifts Department 600
Cards Department 250
Music Department 800
With the study of customer flow in Big Bazaar on an average of high customer flow day we
came to know that it’s basically lies between 2000-2500 customers per day. Here we talking the
customers who are generating revenues for these departments.
From the above figures its executed that flow of customers in garment department is relatively
higher than the other departments. One significant difference is noted than the others retail is that
they have placed their music department at the front of cash counters and introduced low range
of music cds’ and game dvd’s for the all category customers which increased customers the flow
in the music department.
Value of stock in the different departments:
We have chosen 4 departments from Spencer’s store and estimated the valuation of average
stock with the assumption details provided by the branch operation stuffs.
Value of the stock
Department (Rs)
The garment Gifts Department 7500000 section is
divided into Cards Department 150000 men, women
and kids Music Department 580000 section. They
have also a discount
section only for the garments. In this section they are selling the old or rejected stocks of major
Page 48
brands at 40-50 % discount rate. The value of stock in garment is being overflowed at the time of
winter season and tends to double the value of stock. Normally they are maintain a stock value of
16.3 to 17 crore value of stock bus it increase at the time of winter to more than 40 crore.
Revenue generated by the different departments:
To find out the profitability drivers we have compared the revenue generated by different
departments on the basis of 2004-2005 to 2008-2009.For this study we have considered average
revenue of a high customer flow day by the income level customers.
Revenue per 2004-2005 2007-2008

department
Garment department 90000 300000
Gifts department 42000 180000
Cards department 2000 1800
Music department 19000 40000
Total 153000 521800
600000
500000
400000
300000
200000
2004-2005
100000
2008-2009
0
t t t t l
en en en en ta
tm tm tm tm To
ar ar ar ar
d ep dep d ep dep
t s s ic
en Gift a rd us
r m C M
Ga
From the above study its revealed that at the time of inception of the organized retail in India in
the year of 2004-2005, only the high grade and upper medium grade income level customers
Page 49
were tends to go the retails. So the maximum portion of revenues generates from these two
groups only in the year of 2004-2005.
The change in revenue of garment department and in the gifts department from the year 2004-
2005 to 2007-2008 is significant because Big Bazaar is shifted products towards the own
manufactured brands and they became successful to establish their own brands in the garment
retail industry.
A measurable changes found in the cards department is the revenues as well as the stock is
decreasing day by day because of changing customer preferences towards information
technology enabled services like SMS, MMS & E-mails.
Facts and findings
From the above analysis it’s found that the average customers in the all departments are the all
income level people in Big Bazaar. Meanwhile their main customer base is upper, middle and
average level income customers.
Garment Department
Overview:
In Garment department the products are mainly their own brands an price range lies between Rs
99 to Rs 800 averagely which is very reasonable for the middle class, average and also low level
income group peoples. The stock in this section is fair to satisfy its customer needs and attracts
window shoppers to become a potential customer.
Findings:
The main facts that we have found in the garment section is that Big Bazaar mainly focusing on
the low range products with their own brands. All the times they are giving special discounts on
all the garments products. They have adopted tricks like “Buy 2 get 3”, Buy 3 get 5” which looks
Page 50
like as if you buy 2 will get more 3 but the actual fact is that if you buy 2 products will get 1 free
as total you will get 3. It’s a very strategic and attractive offer specially adopted by Big Bazaar.
They have also a section they are selling the branded high class garments at a high discount rate
of 50 to 60 percent.
Suggestions:
After discussing all the profit factors it can be suggest that as they have a good high income level
customer level flow in the others departments like in the furniture and grocery department they
can introduce a wider range of branded products in the garment section as this income is
conscious about the brand that they are using.
Gifts Department
Overview:
Gift department is consisting of various product categories from home furnishing products
personal using products. According to Big Bazaar now a days no one can define which section
should be referred as a gifts section. Customer preference is changing day by day with the
increased product categories.
Findings:
In Big Bazaar we have found that they are also referring home furnishing products, personal care
and low range electronic products as gift products and basically it depends on the customers need
Page 51
and choice. The whole gift section is able to satisfy the all level of income groups as they have a
large collection of product categories but with a limited stock of same products. A noted strategy
is taken in gifts department is that they are selling a large varieties of products with a limited
stock which helps them to implement a good stock turn over ratio and generating good revenue
from this department.
Suggestions:
Big Bazaar can focus on stocks of gifts though the stock varieties is remarkable but within the
same category the stock is not appreciable.
Music Department
Overview:
Music section consist of Music CD;s, Game CD & DVD’s and also Movie DVD’s.
Findings:
Big Bazaar has introduced very low range cd & dvd’s like “Moserbear” music and movie cd-
dvd’s and price range lies in between Rs 30 to 100. Basically they are gaining a competitive
business at the age of piracy products in this industry. Also they have a very good collection in
games cd-dvd categories at a low price range of Rs 100 to 200 whereas if anyone go to the open
market the average price range is Rs 300 to 400 for the copyright product.
Suggestions:
In the music its found that the collection of cd’s and educational cd’s low than the music games
cds. They are emphasizing on the low price mp3 and game cds where as there is also a demand
for educational and movies cd-dvd’s.
Page 52
Analysis of the study on Vishal Mega Mart
Types of customer:
There are three types of consumer in the Indian retail market. Vishal mega mart is a firm believer
of that the middle class and upper middle class are the potential customer in their product
categories.
Here we are analyzing which income level of customers are generally tend to purchase the
products department wise:
Page 53
Percentage of types of customer department wise
Type of customer Garment Gifts Music Cards

section section section section
High grade income level 10 40 60 0
Medium grade income level 60 50 30 50
Average grade income level 30 10 10 50
Type of customer
100
90
80
70
60 Average grade income
level
50
Medium grade income
40 level
30 High grade income level
20
10
0
Germent Gifts Music Cards
section section section section
From the above details it’s found that the customer flows in the garment section is relatively high
rather the other sections. The focus customer group is basically medium level income group of
customers.
Flow of customers in different departments:
Here we have analyzed the flow of customer per day basis. For this reason we have studied
customer flows on an average of high customer flow days.
Inter- Department customer flow
Department Number of customer
Page 54
From the above figures its executed that flow of customer in garment departments is relatively
higher than the others departments. To determine the above study we have considered who are
spending their money on purchase of products of above said departments. Its revealed at the time
of study that they have 10 cash counters and they are making bills of more than 280 bills per day
per counter on the above said days.
Value of stock in different department:
We have chosen departments from Vishal Mega Mart and establish the valuation of average
stock with the assumption details provided by the branch operation stuffs.
Value of the stock
Department (Rs)
Value of the stock in the Garment Departments:
Page 55
Garments Department
Gifts Department
Cards Department
Music Department
The garment section is divided into men, women and kids section. The value of the stock in the
garment department is relatively much higher than the others departments is relatively much
higher than the other departments. The value of stock in winter season jumps to 18 to 20 crore
and its 3 times higher than others season as normally they are maintaining a stock of 6 crore in
the others time.
The value of the stock of the other department are relatively lower than garment department.
The stock maintained in the gifts section, basically maintained for the high and medium level
income customers.
In the cards department the stock increases at the time of Christmas an New Year eve as it’s
seasonal business according to the Vishal Mega Mart.
Music department is consisting of Music, movie and game cd & dvd’s. Its found that the stock of
game cd & dvd’s is higher than the others.
Revenue generated by different departments:
To find out the profitability drivers we have composed the revenue generated by different
department on the basis of 2004-2005 to 2008-2009.
For this study we have considered average revenue of a high customer flow day by the all
income level customers.
Page 56
Department 2004-2005 2007-2008
Garments 50000 180000
Gifts 5000 10000
Cards 2000 1800
Music 1800 5000
Total 58800 196800
200000
180000
160000
140000
120000
100000 2004-2005
80000 2008-2009
60000
40000
20000
0
Garments Gifts Cards Music Total
From the above study its revealed that at the time of inception of the organized retail in India in
the year of 2005-2005, only the high grade and upper medium grade income level customers
wear tends to go to the retails only.
In the case of garments, gifts and music departments as the stock is increased, the revenue is also
increased with the market demand study of the year of 2004-05 to 2007-2008 and also its seen
that product category in the gifts and music department is relatively changing with the increasing
demand of new innovated products.
A measurable changes found in the cards department is that the revenues as well as the stock is
decreasing day by day because of changing customer preferences towards information
technology enabled services like SMS, MMS & E-mails.
FACTS AND FINDINGS
From the above analysis its found that the average customers in the all departments are the
middle grade income level customers as Vishal is mainly focusing in this segment of customers.
Page 57
Garments Department
Overview:
Product lines and the quality of the products in the Garment Section are basically for the medium
and average grade income level people and price range in this section is averagely lies between
Rs.250 to 600.
Findings :
In the garment section we have found that products categories are not focusing the high grade
income level customers as the brand consciousness not presents in the floors. The high grade
income level people are very conscious about the brand that they are using. Basically they are
very conscious about the brand rather than the quality which isn’t present in this department.
Suggestions:
Page 58
Vishal is strategically targeting the middle class customer but there is also a rash of high grade
income level customers in their stores. They should focus on this aspect that they can turn mob
into potential customer by introducing a various range of high class products in the garment
department.
Gifts Department
Overview:
Product lines and the quality of the products in the Gifts Section are basically for the high and
medium grade income level people and price range in this section is averagely lies between
Rs.500 to 800.
Findings:
In the gifts we have found that stock of gifts items is very low and also products categories are
not focusing to low grade income level customers and the gifts department is referred to high
class products.
Suggestions:
They should focus on this aspect by introducing more stocks and also a lower price range
products in the gifts section that they can also generate revenue from lower grade income
customers.
Music Department
Overview:
Music section consist of music cd’s, game cd & dvd’s and also movie dvd’s. Product lines and
the quality of products in the music section are basically for the high and medium grade income
level people and price range in this section is averagely lies between Rs.150 to 500.
Findings:
Page 59
In the music section we have found that they are mainly focusing on the game cd’s and dvd’s and
also the price range is also high. Again the collection of game cd and dvd’s is considerable but in
the case of Indian music cd’s the stock level is not also upto the customer’s satisfactory level.
Suggestions:
Vishal should concentrate on that the music industry is passing through a high competitive
market with piracy world so the range should be such as the customer feel free to buy original
cd’s. Another point is that there should be a balance between the stock of their product lines in
the music department.
COMPARITIVE ANALYSIS OF THE STORES
On the basis of customer flows:
We have considered the average of the high customer flow days.
Flow of Customer per Day

Store Name No. of Customer
Vishal Mega Mart 1600
Spencer Retail 1200
Big Bazaar 2300
Vishal Mega Mart: From the study its revealed that the average customer flow is medium
grade income level customers and average grade income level customers.
Page 60
Spencer Retail: The customer flows in this store is basically refers to the high and upper
medium income level customers.
Big Bazaar: They are focusing on the all income level customers but it depends on the
departments wise also.
On the basis of stock value:
Comparison of stock value

Store Name Garments Gifts Dept Cards Dept Music Dept
dept
Vishal Mega 65000000 250000 77500 175000
Mart
Spencer Retail 760000 5500000 175000 8060000
Big Bazaar 163000000 75000000 150000 575000
Garments Department:
The value of stock depends on the season. At the time of winter season it increases upto 2 to 3
times than the other seasons as the price of winter garments is relatively higher than springs-
summer collection.
Vishal Mega Mart: The product in the garment section isn’t exclusive and meant for the
medium to average grade income level customers. Also they aren’t focusing on major brands in
the garment industry. All the products are unbranded and semi branded and don’t attracts the
high grade level income groups. However brand consciousness not present but the stock volume
is able to met customer satisfaction.
Spencer Retail: Product ranges are very high and meant for the high class consumers. In
Spencer there is very low stock turnover ratio.
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Big Bazaar: They have their own brands in the garments department with a reasonable price for
the upper medium, medium and average class income groups. Though brand conscious people
will think at the time purchasing but customer are satisfied with the stock and as well as quality
related to price. They have high stock turnover ratio.
Gift Department:
Vishal Mega Mart: They are not focusing on the gifts stock for the result customer flow and
revenue from this section is very low and no point is gaining for the customer satisfactory level.
Spencer: A wider range of products is found in gifts section for the all income level people.
Though the variety in the product categories is high but the volume of stock in the same product
is low. However customers are happy with the large number of collection of gifts items.
Big Bazaar: A very large investment in the gifts section is found at the time of study. They are
basically emphasizing on introduction of personal grooming products and home furnishing
products in the gifts section. This department is solely for the upper class consumers and
customer’s satisfactory level is remarkable.
Cards Department:
Vishal Mega Mart: Stock in the department is taken care as relatively low and it’s considered as
a seasonal business.
Big Bazaar: Stock in this department is taken care as relatively low and it’s considered as a
seasonal business.
Spencer: It is having highest value in gift department.
Music Department:
Vishal Mega Mart: Music department is consisting of music, movies amd games cd-dvd’s. the
stock of game cd-dvd’s is higher than the others and price range is relatively not for the medium
Page 62
and average income groups though they are focusing on this income group only and a result they
failed to satisfy their customer needs.
Big Bazaar: Their music department is also consisting of music, movies and games cd-dvd’s
and they have maintained a good balance between the stock level in all the categories. And also a
remarkable change is noted that they selling very low range products within this copyright
product categories. They customer satisfaction level is high with the fulfillment of their needs.
Spencer: Spencer is earning more revenue in this department than Big Bazaar & Vishal Mega
Mart in music because it is of RPG group.
Findings
 Spencer’s have good brand awareness among the consumers.
 Big Bazaar has better product range than Spencer’s.
 Big Bazaar have greater acceptance among the consumers in comparison to

Spencer’s.
 FMCG products have major acceptance of all offerings of Spencer’s among

consumers.
 The consumers are not much satisfied of the offers introduced by Spencer’s.
 Big Bazaar has better promotional schemes than Spencer’s.
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SUGGESTIONS AND RECOMMENDATIONS
 In order to improve its business, Spencer’s should introduce more

competitive promotional schemes such as those in Big Bazaar.
 The product range of Spencer’s should be improved in order to match that

existing in Big Bazaar.
 For promotional offers, company should go for free gifts rather than going
for other ways.
Page 64
Bibliography:
USE WEBSITE
 www.Spencersretail.com
 www.rpggroup.com
SEARCH ENGINE
 www.google.com
 www.search.com
 www.yahoo.com
 www.alvista.com
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Overview of RPG Group

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Overview of RPG Group

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INTRODUCTION

Overview of RPG Group

 To study about the Brand awareness of Spencer’s.

SCOPE OF THE STUDY

Passion for Superior Performance

 Enable rapid business expansion

 Add room for growth

 Ensure IT systems' availability

 Ensured IT systems' availability

Reduced space and power requirements

Customer Interfacing Systems

 Bar Coding and Scanners

Operation Support Systems

Various Enterprise Resource Planning (ERP) vendors have developed retail-specific

 Advanced Planning and Scheduling Systems

Strategic Decision Support Systems

 Store Site Location

 Excellence in all operating process;

 The most innovative customer goods and delectable taste experience.

Formats of Spencer’s outlets

The Company operates through the following formats:

1. Spencer’s Hypermarkets: A fast growing retail network of hypermarkets with large

4. Spencer’s express: Food and grocery store next door.

Fresh Fruit Stall Market stall Manton Market

 Spencer’s fresh stores provide with an enjoyable and convenient shopping

 Hypermarkets ensure a comfortable, clean, bright and functional ambience to

Different Formats of Spencer’s

Format Stocks Minimum Trading

Spencer’s daily regular groceries 4000-7000

Spencer’s Super home care products; personal care 8000-15000

terms, it implies a first-hand transaction with the consumer.

trained sales staff are regular features of these retailers.

2* Unorganized Retail- 97%

Organized vs. unorganized Retail

Owner usually not the operator Owner usually the operator

Supply chain management No SCM dependent on distributors & suppliers

Automation Virtually no automation

Wider assortment &range of products Lesser range & assortment of products

Large scale operations Small scale operations

Growth of organized retailing in India

international formats of retailing.

markets globally, is in the midst of a gigantic transformation, thanks to a plethora of changes

well become a major driver of the economy in the years ahead.

Various reasons are responsible for the growth of Indian retail:

1. Increased per capita income of the Indian consumer

10% per annum over last decade.

 Falling interest rates

4. Improvement in infrastructure are enlarging consumer markets

Liberalization of market for consumer goods, this has helped the

MNC brand to make in roads into Indian markets by offering

wide range of choices to Indian consumers.

5. Changing mindset of Indian consumer

6. Greater levels of education.

7. Shift in the consumer demand for higher brand

8. Internet is making consumers more accessible

9. Reduction of custom duties of CE, personal care Dairy

10. The urban customer:

INTRODUCTION OF SPENCER’S RETAIL

For every want, for every need

 To become better in the business of garments.

Comptative awarness of some other brand

Research work is only carried for 3 weeks.

 Retailers were hesitant to disclose the true facts.