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A Study On Consumer Bhaviour
With reference to
VISAKHAPATNAM .
A project report submitted in partial fulfillment of the requirementfor
The award of the degree in
Bachelor Of Business Management
Submitted by
A.BHARGAV
(Regd.No:1214109107)
Under the esteemed guidance of
MS.P.SHOBA RANI
Asst . professor
VISAKHAPATNAM - 530 046.
(2008-2010)
DECLARATION
I hereby declare that this project work entitled CUSTOMER
PERCEPTION OF SPENCERS HYPER MARKET with special
reference to spencers hyper market Pvt., Ltd., Visakhapatnam
submitted to JNT University, Kakinada in partial fulfillment for the
award of Degree of MBA is entirely based on my own study & is
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being submitted for the first time and it has not been submitted to any
other university or institution for any degree or diploma.
(Mr. B. Venkateswara Rao)
VIGNANS INSTITUTE OF INFORMATION TECHNOLOGY
Approved by AICTE & Affiliated To JNT University, Kakinada)
Duvvada, VISAKHAPATNAM- 530 046
DEPARTMENT OF MANAGEMENT STUDIES
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Jyothirmayee
M.B.A.,M.Phil.,(Ph.D)
Dt.02-07-2010.
CERTIFICATE
This is to certify that the project report entitled CUSTOMER
PERCEPTION OF SPENCERS HYPER MARKET With special
reference to Spencers hyper market Pvt., Ltd,. Visakhapatnam is being
submitted by Mr. B.Venkateswara Rao in partial fulfillment for the award
of the Degree of MBA has been carried out by him under my guidance
and supervision.
Ms. Jyothrimayee
(Project Guide)
ACKNOWLEDGEMENT
I express my sincere thanks to the Head of the Department & my
project guide Ms. Jyothrimayee , for her valuable guidance and
cooperation throughout the project work and all other faculty members
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who helped me directly and indirectly for the successful completion of
my project work.
I am also thankful to our beloved principal Prof. A. Ramjee forgiving me the permission to carryout the project work.
I also express my gratitude and heartfelt thanks to my company
guide, Mr.Srikar, Marketing Regional Manager, Spencers Hyper Market
Pvt., 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.
(Mr.B.Venkat
eswara Rao)
CONTENTS
CHAPTER-1 : INTRODUCTION
Need for the Study
Objectives of the Study
Scope of the study
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Methodology of the Study
Limitations of the study
CHAPTER-2 : COMPANY PROFILE
CHAPTER-3 : THEORITICAL STUDY OF CUSTOMER
PERCEPTION
CHAPTER-4 : DATA ANALYSIS AND INTERPRETATION
CHAPTER-5 : FINDINGS AND SUGGESTIONS
Findings
Suggestions
Conclusion
BIBLIOGRAPHY
QUESTIONNAIRE
INTRODUCTION
Retail industry is the largest industry in India, with an employment of
around 8% and contributing to over 10% of the country's GDP. Retail
industry in India is expected to rise 25% yearly being driven by strong
income growth, changing lifestyles, and favorable demographic patterns.
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It is expected that by 2016 modern retail industry in India will be
worth US$ 175- 200 billion. India retail industry is one of the fastest
growing industries with revenue expected in 2007 to amount US$ 320
billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is
expected in the industry of retail in India by growth in consumerism in
urban areas, rising incomes, and a steep rise in rural consumption. It has
further been predicted that the retailing industry in India will amount to US$
21.5 billion by 2010 from the current size of US$ 7.5 billion.
Shopping in India has witnessed a revolution with the change in theconsumer buying behavior and the whole format of shopping also altering.
Industry of retail in India which has become modern can be seen from the
fact that there are multi- stored malls, huge shopping centers, and sprawling
complexes which offer food, shopping, and entertainment all under the same
roof.
India retail industry is expanding itself most aggressively; as a result
a great demand for real estate is being created. Indian retailers preferred
means of expansion is to expand to other regions and to increase the number
of their outlets in a city. It is expected that by 2010, India may have 600
new shopping centers.
In the Indian retailing industry, food is the most dominating sector
and is growing at a rate of 9% annually. The branded food industry is trying
to enter the India retail industry and convert Indian consumers to branded
food. Since at present 60% of the Indian grocery basket consists of non-
branded items.
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India retail industry is progressing well and for this to continue
retailers as well as the Indian government will have to make a combined
effort.
Global retail giants are also entering the retail industry in India and
this is also one of the factors in the growth of the organized retail sector in
India.
Ex: Wal-Mart, Tisco
NEED FOR THE STUDY
Marketing is a domain which is dynamic i.e. involves change, an
important phenomenon not to be overlooked. We have come across a term
Unique Selling Proposition(USP) which companies feel as a constant
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factor . Every organisation is an open system of management which means
change is inevitable and is associated with environmental factors.
Companies need to focus not only on USP of their products but also on the
Unique Customer Perception(UCP) of the final end users.
The prop of marketing is based on the need identification and the
USP's are prepared based on the identified needs . If the needs are wrongly
identified then even the USP's which are unique to the product would not
serve the purpose. USP identifies a product/service from its competitors
while UCP is the perception or picture a customer develops from all types
of promotional inputs from the company about their product or service. It is
often seen that some brands do extremely well compared to other brands
having the same resources. The reason for the brands not to do well is
probably the communications which does not reflect the customers
perception. So it is not the USP but UCP that plays an important role .This
has lead to the concept - Customer Perception is the Rule and not
Customer Satisfaction.
Measuring customer satisfaction is a relatively new concept to many
companies that have been focused exclusively on income statements and
balance sheets. Companies now recognize that the new global economy has
changed things forever. Increased competition, crowded markets with little
product differentiation and years of continual sales growth followed by two
decades of flattened sales curves have indicated to today's sharp competitorsthat their focus must change.
OBJECTIVE OF THE STUDY
1. To study the customer opinion about the spencers products
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2 . To realize the customer perception Regarding the price, taste
and availability regarding the products
3. To understand, to what extant print Ads can influence the customer
to purchase the Spencers products
4. To identify factors that can maximize the sales of spencers products
5. To analyses the market and to ascertain the relative performance of
different brand of products.
6. To suggest the company to further improvement.
SCOPE OF THE STUDY
Indian Retailing industry offers opportunities to entrepreneurs
worldwide who wish to capitalize on one of the worlds largest and fast
growing markets for retailing operations and business.
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Hence this topic is chosen to have comprehensive idea on branding,
brand awareness and its practices of Spencers hyper market under RPG
enterprises in Visakhapatnam.
METHODOLOGY
For this study the data is collected from two sources i.e. primary and
secondary sources. The data is collected form observation method. The data
so collected has being subjected to analysis with the help of simple
percentile method and at the stage of interpretation; the data collected from
observation method has also been employed.
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PRIMARY DATA:
Primary data consists of original information collected for specific
purpose. To obtain primary data, a well-structured, pilot tested schedule
was prepared and the respondents are met personally to get response. One
hundred Eighty consumers were randomly selected and interviewed in the
vizag.
SECONDARY DATA:
Secondary data consists of information that already exists somewhere
having been collected for some other purpose. In this study, the secondary
data is collected from company manuals, broachers, catalogues, websites,
magazine, journals etc. the collected data from various sources is subjected
to analysis and interpretation with the help of suitable simple percentile
method and presented in a structured frame work consisting of pie charts,
various graphs and bar charts wherever applicable.
LIMITATIONS OF THE STUDY
Some customers are reluctant to share their information
Only Visakhapatnam was covered during the course of
study and hence the data collected may not be applicable to entire
universe.
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The sample size was only one hundred customers, which is
relatively small for the objectives of the study.
There could have been a lack of homogeneity in the sample
chosen.
Time was a constraint there was limited only to 9 weeks
and its difficulty in interviewing the respondents.
The respondents opinions may be biased on account of
some inherent limitations in the schedule.
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CHAPTER-II
Organizational Study
It's a business that's been around for ever, and always will be, because
as long as people are willing to pay for something they want and need, you
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can guarantee that there will always be somebody willing and able to sell it
to them.
The history of retail has included countless ways in which retailershave attempted to get their products in front of the consumer. But it seems
that the businesses that have provided their customers with the most
convenience have generally proven to be the most successful.
For centuries, most retail sales were made by the street vendor or the
small family owned shop, which provided their customers with the
convenience of not having to grow their own food or make their own
clothes. By the mid nineteenth century, most of the goods that we find in
today's superstores were supplied by craftsmen or local manufacturers who
dealt directly with their customers. Needed, not to mention that they
probably had to travel all over town to get their shopping done.
As manufacturing methods improved, and as the road and rail
transport network extended, there developed specialist manufacturers who
needed retail stores to sell their goods. Over time, the small retail store
concept grew, and by the mid 1950's small stores blanketed every high
street.
While most people loved the individual attention and great service
that the small store provided, it became more and more difficult for thesmall store to offer the kind of prices and selection that the consumer really.
The next big revolution in retailing was the emergence of the retail
chains, and later the superstores. The consumer of the 70's demanded the
convenience of having their favorite stores in one enclosed location where
they could easily hop from store to store without having to concern them
about the weather.
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This shopping mall concept was quickly embraced by the consumer,
but unfortunately the crowds and traffic of today's mega malls can often turn
what should have been a convenient and comfortable shopping experience
into a mission of hand-to-hand combat!
In recent years, the mail order business has experienced some of the
most impressive growth, which would also seem to echo the continuing
consumer demand for convenience. Most retailers are recognizing that they
simply have to offer their customers the ability to order products or services
from the comfort of their own home or office in order to compete in today's
retail marketplace.
RETAILING INDUSTRY IN INDIA
Retail industry is the largest industry in India, with an employment of
around 8% and contributing to over 10% of the country's GDP. Retail
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industry in India is expected to rise 25% yearly being driven by strong
income growth, changing lifestyles, and favorable demographic patterns.
It is expected that by 2016 modern retail industry in India will beworth US$ 175- 200 billion. India retail industry is one of the fastest
growing industries with revenue expected in 2007 to amount US$ 320
billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is
expected in the industry of retail in India by growth in consumerism in
urban areas, rising incomes, and a steep rise in rural consumption. It has
further been predicted that the retailing industry in India will amount to US$21.5 billion by 2010 from the current size of US$ 7.5 billion.
Shopping in India has witnessed a revolution with the change in the
consumer buying behavior and the whole format of shopping also altering.
Industry of retail in India which has become modern can be seen from the
fact that there are multi- stored malls, huge shopping centers, and sprawling
complexes which offer food, shopping, and entertainment all under the same
roof.
India retail industry is expanding itself most aggressively; as a result
a great demand for real estate is being created. Indian retailers preferred
means of expansion is to expand to other regions and to increase the number
of their outlets in a city. It is expected that by 2010, India may have 600
new shopping centers.
In the Indian retailing industry, food is the most dominating sector
and is growing at a rate of 9% annually. The branded food industry is trying
to enter the India retail industry and convert Indian consumers to branded
food. Since at present 60% of the Indian grocery basket consists of non-
branded items.
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India retail industry is progressing well and for this to continue
retailers as well as the Indian government will have to make a combined
effort.
Global retail giants are also entering the retail industry in India and
this is also one of the factors in the growth of the organized retail sector in
India.
Ex: Wal-Mart, Tisco
INDIA IS A GROWING MARKET FOR RETAILING INDUSTRY
The scope of the Indian retail market is immense for this sector is
poised for the highest growth in the next 5 years. The India retail industry
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CHALLENGES FACING THE INDIAN ORGANIZED RETAIL SECTOR
The challenges facing the Indian organized retail sector are various
and these are stopping the Indian retail industry from reaching its fullpotential. The behavior pattern of the Indian consumer has undergone a
major change. This has happened for the Indian consumer is earning more
now, western influences, and women working force is increasing, desire
for luxury items and better quality. He now wants to eat, shop, and get
entertained under the same roof. All these have lead the Indian organized
retail sector to give more in order to satisfy the Indian customer. The
biggest challenge facing the Indian organized retail sector is the lack of
retail space.
With real estate prices escalating due to increase in demand from the
Indian organized retail sector, it is posing a challenge to its growth. With
Indian retailers having to shell out more for retail space it is effecting there
overall profitability in retail.
Trained manpower shortage is a challenge facing the organized
retail sector in India. The Indian retailers have difficultly in finding trained
person and also have to pay more in order to retain them. This again brings
down the Indian retailers profit levels.
The Indian government has allowed 51% foreign direct investment
(FDI) in the India retail sector to one-brand shops only. This has made the
entry of global retail giants to organized retail sector in India difficult. This
is a challenge being faced by the Indian organized retail sector.
But the global retail giants like Tisco, Wal-Mart, and Metro AG are
entering the organized retail sector in India indirectly through franchisee
agreement and cash and carry wholesale trading. Many Indian companies
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are also entering the Indian organized retail sector like Reliance
Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing
stiff competition from these global retail giants. As a result disco
becoming accepted practices. This too brings down the profit of the
Indian retailers.
Some of the reasons for this slow growth are:
1. Retail not being recognized as an industry in India.
2. The high costs of real estate
3. High stamp duty.
4. Lack of adequate infrastructure.
5. Multiple and complex taxation system.
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CHALLENGES FACED BY GLOBAL RETAILERS
The emergence of new markets:
Asia, especially India and china are the emerging market places. The
technological and transportation and industrial revolutions of the past two
decades have changed much of that.
The empowered consumer:
Retaining the consumer is far more difficult today than it was a
decade ago. Consumer lifestyles and demographics are changing rapidly.
Spending power is increasing and technology is aiding consumers in
making sound shopping decisions.
Technology enabled efficiencies:
Technology has enabled business and consumers to build
efficiencies on the basics of the ability to receive and transmit data, at a
fast speed. This information has today become critical for achieving
efficiencies in all aspects of retailing.
The rise of the e-age:
The emergence of Internet retailing or e-retailing has been a key
driver of change in retail. The increase in the number of Internet users not
in developed markets but also globally, has placed new demands on
retailers. Online shopping facilitated by auction sites are the new retailers
of retail. Comparison- shopping is a new reality of the e-age.
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TOP 10 RETAILERS IN THE WORLD
Web site: www.worldb2blink.com/worldtop100retailers.htm
A SNAP SHOT OF RETAIL PLAYERS PROFILE IN INDIA
SPENCERS RETAIL
PIRAMYD RETAIL
SHOPPERS STOP FUTURE GROUP
Rank Retailer Home Country Sales in US$
Millions
1Wal-Mart
Stores, Inc.USA $1,63,532
2Carrefour
GroupFRA $52,196
3 The Kroger Co USA $45,352
4 Metro AG. GER $44,163
5The Home
Depot, Inc.USA $38,434
6Albertsons,
IncUSA $37,478
7
ITM
Enterprises,SA
FRA $36,762
8Sears, Roebuck
and CoUSA $36,728
9Kmart
CorporationUSA $35,925
10Target
CorporationUSA $33,702
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RELIANCE RETAIL
TRENT
SPENCERS RETAIL:-
RETAIL VENTURE:
Spencers Retail Limited is a multi-format retailer providing a wide
range of quality products to discerning young customers well-traveled
citizens of the world, looking out for authentic flavors and experiences in a
fun-filled shopping environment. Spencers brand positioning Taste the
World embodies this approach, delighting shoppers with the best that the
world has to offer in terms of interiors, ambience and merchandise.
Part of the Rs. 15,500 crore RPG Group, they run about 250 stores
(including about 29 large format stores) across 50 cities in India, employing
more than 6,000 people. As one of the earliest entrants in the retail space in
India, they have been instrumental in introducing Indian consumers to the
concept of organized retailing, becoming the countrys first grocery chain
back in 1920, and offering the joys of hypermarket shopping in 2001 at
Hyderabad.
A food first retailer they offer both fresh and packaged foods as
well as groceries. They also have a wide selection of electronics and
electrical equipment, home and office essentials, garments and fashionaccessories, toys, and personal care.
LEADERSHIP:
Sanjiv Goenka, Vice Chairman; J.H.Mehta, President.
CURRENT STATUS:
It operates 250 stores spread in 50 cities.
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CURRENT STATUS:
Piramyd is operating 42 stores across India.
FUTURE PLANS:
Its plans to open 10-12 more Trumart outlets by this year.
SHOPPERS STOP:-
RETAIL VENTURE:
Owned by the diversified realty to retail conglomerate, the K RahejaGroup, Shoppers stop was set up in 1991 and is one of the first operators in
the modern retailing sector in the country.
LEADERSHIP:
B.S.Nagesh, Customer care associate and Managing Director; Govind
Shrikhande, Customer care associate and chief executive officer.
CURRENT STATUS:
This premium outlet is present in 12 cities with 27 outlets either as a
part of a mall or as exclusive stores. There are different stores belongs to
Shoppers Stop. They are Crossword Bookstores, Home Stop, Brio, Desi
Caf, Hyper city, M.A.C., Arcelia, Mother Care, Nuance Group, HyperCity-
Argos, and Timezone.
FUTURE PLANS:
The group plans to extend the number of its departmental stores from
20 to 48 in about 3 years.
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FUTURE GROUP:-
RETAIL VENTURE:
Future Group founded in 1987 as Manz wear, the company made a
foray into modern retail in august 1997 with the launch of its first
departmental store for premium apparel. Pantaloons in Calcutta. Future
Groups retail network touches the lives of more than 200 million Indians in
71 cities and 65 rural locations across the country.
LEADERSHIP:
Kishore Biyani, CEO and MD; Rajan malhotra, Head, Big Bazaar;
Damodar mall, President and CEO Food bazaar.
CURRENT STATUS:
The company is spread in 71 cities and 65 rural locations across the
country. The group currently operates around 1,000 stores spread over 12
million square feet of retail space.
FUTURE PLANS:
Kishore Biyanis Future Group has plans to start selling its private
labels, including in apparels, food and groceries, to kirana stores in rural and
semi-urban areas in the second half of this year, according to a top companyexecutive. The Future Group plans to open 1,500 more stores in the next 18
months. It plans to grow its rural retail venture, Aadhaar, in 800 towns and
villages in the country in the next couple of years from around 60 towns at
present.
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RELIANCE RETAIL:-
RETAIL VENTURE:
The foray of the largest corporate Reliance industries into the retail
arena this year through Reliance Fresh in Hyderabad on November 3rd. It
was first from the 25000 crore investment committed for retail.
LEADERSHIP:
Mukesh Ambani, Promoter; Raghu Pilai, President Strategy.
CURRENTSTATUS:
Already opened 22 stores in Hyderabad and Jaipur.
FUTURE PLANS:
Reliance retail plans to establish 4000 outlets across various formats
in next 5 years and is eyeing sales of rupees 1-lakh-crore over this period.
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TRENT:-
RETAIL VENTURE:
The salt-to-software corporate conglomerate TATA Group entered
the modern arena way back in 1998. When it opened its outlet Trent in
Bangalore in that year. Today Trent operates in three formats- Westside,
Landmark and Star India Bazaar.
LEADERSHIP:
Noel TATA, MD; Neeti chopra, Head, Marketing (Westside).
CURRENT STATUS:
Westside has more than 20 outlets spread in Bangalore, Hyderabad,
Chennai, Mumbai, Pune, and Delhi & Kolkata.
FUTURE PLANS:
The TATA Group, through its retail brand Proma, is set to enter the
Electronics and Consumer Durable market.
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RETAIL TRADE FORMATS
The Retail Trade sector comprises establishments engaged in retailing
merchandise, generally without transformation, and rendering servicesincidental to the sale of merchandise. The retailing process is the final step
in the distribution of merchandise. Retailers are therefore organized to sell
merchandise in small quantities to the general public.
This sector comprises two main types of retailers:
Store retailers
Non store retailers
STORE RETAILERS:-
Operate fixed point-of-sale locations, located and designed to attract a
high volume of walk-in customers. In general, retail stores have extensive
displays of merchandise and use mass-media advertising to attract
customers. They typically sell merchandise to the general public for
personal or household consumption, but some also serve business and
institutional clients. These include establishments such as office supply
stores, computer and software stores, building materials dealers, plumbing
supply stores and electrical supply stores. Catalog showrooms, gasoline
service stations, automotive dealers and mobile home dealers are treated as
store retailers.
In addition to retailing merchandise, some types of store retailers are
also engaged in the provision of after-sales services, such as repair and
installation. For example, new automobile dealers, electronics and appliance
stores, musical instrument and supplies stores often provide repair services.
As a general rule, establishments engaged in retailing merchandise and
providing after-sales services are classified in this sector.
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NON STORE RETAILERS:-
Non-store retailers, like store retailers, are organized to serve the
general public, but their retailing methods differ. The establishments of thissub sector reach customers and market merchandise with methods, such as
the broadcasting of infomercials, the broadcasting and publishing of
direct-response advertising, the publishing of paper and electronic catalogs,
door-to-door solicitation, in-home demonstration, selling from portable
stalls (street vendors, except food) and distribution through vending
machines. Establishments engaged in the direct sale (non-store) of products,
such as home heating oil dealers and home delivery newspaper routes are
included here.
The buying of goods for resale is a characteristic of retail trade
establishments that particularly distinguishes them from establishments in
the agriculture, manufacturing and construction industries. For example,
farms that sell their products at or from the point of production are not
classified in retail, but rather in agriculture. Similarly, establishments that
both manufacture and sell their products to the general public are not
classified in retail, but rather in manufacturing.
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FORMATS IN DETAIL
CONVENIENCE STORES:
This industry comprises establishments known as convenience stores
or food marts primarily engaged in retailing a limited line of goods that
generally includes milk, bread, soda and snacks in a 2000 to 3000 square
foot store with speedy check out. They are the modern version of the
neighborhood mom-and-pop grocery/general store.
DEPARTMENT STORES:
This industry group comprises establishments known as department
stores primarily engaged in retailing a wide range of the following new
products with no one merchandise line predominating: apparel; furniture;
appliances and home furnishings; and selected additional items, such as
paint, hardware, toiletries, cosmetics, photographic equipment, jewelry,
toys, and sporting goods. Merchandise lines are normally arranged in
separate departments.
DISCOUNT STORES:
This industry comprises establishments known as department stores
that have central customer checkout areas, generally in the front of the store.
Department stores in this industry offer a wide range of general merchandise(except fresh, perishable foods), limited service and low prices.
SPECIALITY STORES:
This industry concentrates on a limited number of complementary
merchandise categories and provides a high level of service in an area
typically less than 8000 square feet. In recent years, a specialty apparel store
has been one of the weakest, slowest-growing areas in retailing.
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CATEGORY KILLERS:
This industry is much nearer to discount store that offers a narrow
variety but deep assortment of merchandise. These retailers are basicallydiscount specialty stores. Most category specialists use a self-service
approach, but some specialists in consumer durables offer assistance to
customers.
SUPER CENTERS:
This industry offers a wide variety of food and nonfood merchandise.
They are the fastest growing retail category. Super centers stock between
100,000 and 150,000 individual items (SKUs). The store generally is
spread across 150,000 to 220,000 square foot.
HYPER MARKETS:
This industry is large combination food and general merchandise
retailers. They typically stock less than super centers, between 40,000 and
60,000 items ranging from groceries, hardware, and sports equipment, to
furniture and appliances, to computers and electronics. The store generally
is spread across 100,000 to 300,000 square foot.
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INDUSTRIAL PROFILE
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 Spencers 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
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QUALITY:
For RPG quality determines success. Continuous process
improvements are carried out to ensure complete satisfaction of customerand 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 groups 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 groups excellence movement. Initiated in 1999, these awards
aim to encourage higher levels of business excellence among the group
companies.
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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 Centerin 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
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RPG ORGANIZATIONAL EXCELLENCE APPROACH:
Web site:http://www.rpggroup.com/quality1.html
RPG has been encouraging continuous improvement initiatives in allthe 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.
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RPG ORGANIZATIONAL EXCELLENCE AWARDS
The RPG Organizational Excellence Awards were introduced in
1999, to encourage higher levels of business excellence among the groups
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 RPGs 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,
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Year Winner Certificate of Merit
2000 Spencers Travel Zensar Technologies
2001 RPG Cellular Services Zensar Technologies
2002 RPG Cellular Services Zensar Technologies
2003 CEAT Limited Spencers Travel
2004 CEAT Limited Spencers Travel
2005CESC 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.
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Being a customer-centric organization and Being the most exciting
workplace.
Values:
RPGs business ethics promote higher levels of excellence. The
groups 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.
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With an ever-changing environment, RPG Enterprises is an exciting
place to work, where excellence, performance and entrepreneurship are
valued.
COMPANY PROFILE
Spencers Retail is the largest supermarket chain in India. At
Spencers we have for you an extensive range of products and durables,designed to satisfy all your shopping needs. We are proud today of
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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 couldnt 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 Spencers. And
this trust has been the outcome of a consistent high-quality service.
For every want, for every need:
We at Spencers 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 dcor 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
Spencers.
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THE VARIOUS FORMATS IN SPENCERS RETAIL
Spencers Express
Spencers 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.
Spencers Fresh
Spencers 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, Spencers 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 Spencers 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!
Spencers Daily
The Spencers 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, Spencers Daily saves you the hassle
of bargaining with the local Kirana shop owners (because we offer the
lowest possible prices).
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Spencers Superstore
The Spencers Super is the place to go for your monthly shopping.
About 8000-15,000 sq. ft. in size the Spencers Super not only caters to yourdaily 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.
Spencers Hyper
The Spencers 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
Spencers has retail footage of over 1.3 million square feet and over
250 Spencers stores in 50 cities.
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The company operates through the following formats:
Spencers 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.
Spencers Super: one of the largest supermarket chains in the food and
grocery segment in India.
Spencers Daily: small format stores conveniently located with a range of
products to meet your daily household needs.
Spencers fresh: all food items, juices, and bread products are available.
Spencers Express: your food and grocery store next door.
SPENCERS 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
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products. The store would also have a Bakery, Music World, Caf 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.
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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
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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
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Website:
https://reader009.{domain}/reader009/html5/0516/5afb6d370fc41/5afb6d54ea7b5.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 SPENCERS?
Spencers 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.
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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 Spencers hyper stores
Hoardings
Gondola-End visibility
Back-lit boards.
Drop down scroll boards
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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
Kiosks
Promo tables
Audio Jingles
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Carry bag insertions
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.
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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
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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 Goenkas 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.
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CHAPTER-III
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THEORITICIAL FRAME WORK
INTRODUCTION TO MARKETING
In this chapter various aspects of the study are going to be discussed. To
which area of management does the study belongs to- and various concepts
that are related the area of study. The present study comes under marketing
and deals in specific with the distribution network and its management.
MAIN SUBJECT
Todays companies must urgently and critically rethink their business
mission and marketing strategies. Instead of operating in market place of fixed
and known competitors and stable consumers preferences, todays companies
work in a war zone of rapidly changing competitors, technological advances.
News laws, managed trade policies, and diminishing customer loyalty.
Companies find themselves competing in a race where the world
sign and rules keep changing, where there is no finish line, no permanent
win. They simply must keep racing ; hopefully in a direction where the public
wants those to go in the days when it was Business as usual, companies could
succeed by producing and supporting them with hard selling and heavyadvertising. This was called Marketing.
Marketing is the process of planning and executing the conception, pricing,
promotion and distribution of ideas and services to create exchange that satisfy
individual and organizational goals.
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INTRODUCTION TO MARKETING
Marketing is a social and managerial process by which individual and
groups obtained what they need and want through creating and offering &
exchanging products and values with others
MARKETING MIX
Definition: Marketing mix is the combination of elements that you will use
to market your product. There are four elements: Product, Place, Price and
Promotion. They are called the four Ps of the marketing mix
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-The "green": A friendly product to environment gets an advantage among
some segments.
In business to business and for expensive items, the best mean ofdifferentiation are warranties, return policy, maintenance service, time
payments and financial and insurance services linked to the product.
1. Challenge 2. Product 3. Place 4. Price 5. Promotion 6. Sales strategy 7.
Do it yourself8. Coaching
3-PLACE-DISTRIBUTION
A crucial decision in any marketing mix is to correctly identify the distribution
channels. The question " how to reach the customer" must always be in your
mind.
-Definition: The place is where you can expect to find your customer andconsequently, where the sale is realized. Knowing this place, you have to
look for a distribution channel in order to reach your customer.
In fact, instead of "place" it would be better to use the word "distribution" but
the MBA lingo uses "place" to memorize the 4 Ps of the marketing mix!
Channels
It exists today, with the internet, more channels than in the past but basically,
you have to consider three main distribution channels:
-Selling to the customers: Whether you sell by yourself ( as retailer) whether
you employ a sales force, you are in these cases in front of the final customer.
There are not intermediaries between you and him. Unfortunately, except forthe retailer business, this situation is far to be the general case.
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-Selling to the retailers: For example, you manufacture the fun boards and you
sell them to the Arizona retailers. This practice could be a bit complicated.
-Selling to the wholesalers: There are maybe four or five sport articleswholesalers in Arizona. You sell your fun boards to these big men. On turn the
wholesalers sell the fun boards to the retailers which finally sell to their
customers.
In the case of Pacific Boat which manufactures its boats in Philippines for
customers located in the USA or in Europe, there is not alternative ways. It must
sell through some big import export corporate's. Pacific boat has not any contact
with its final customers but of course it must know exactly their profile. If the
product does not fit to the profile of the final customer, the wholesaler will not
buy it.
As you can see, the choice of your distribution channel heavily depends on
your product and place in the productive process. If you are in coal mining,
do not expect to sell some coal buckets to the final consumer!
The next drawing summarizes the different possible channels: You are
represented by the black square, the wholesaler by the maroon one, the retailer
by the yellow and the customer by the green!
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Real life example:
A commodity is a product such as crude oil, coal, rice, wheat, sugar, copper and
so on: Mainly primary products and raw materials. In a commodity market, theproducts have very few distinguished characteristics.
They are traded in few places like Chicago and London. In the rice market,
there are maybe six or seven big traders for the entire world in front of some
hundred millions of little producers grouped in cooperatives or primary
marketing boards.
The big traders know each other very well and most of the bargain relies on
trust.
PRICE
Price is the one element of the marketing mix that produce revenue, the
other elements produce costs. Prices are the easiest marketing mix element toadjust, product features, channels, and even promotion take more time. Price
also communicate to the markets the companys intended value position-ing
of its product or brand.
Pricing strategies
In fact, you have to choose between three strategies:
-Competitive pricing: If your product is sold at the lowest price regarding all
your competitors, you are practicing competitive pricing. Sometimes,
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competitive pricing is essential. For instance, when the products are basically
the same, this strategy will usually succeed.
Remember that the success of competitive pricing strategy depends onachieving high volume and low costs. If your prices are lower than your costs,
you are going straight to bankruptcy! To avoid such a mistake, you have to take
notice of the break even ratio that you will find below.
-Cost-plus-profit: It means that you add the profit you need to your cost. It is
also called cost-orientated strategy and is mainly used by the big contractor of
public works. The authority may have access to the costing data and should like
to check if the profit added to the cost is not too high.
In fact, this strategy is only good for a business whom the customers are public
collectivities or government agencies.
-Value pricing: It means that you base your prices on the value you deliver to
customers. For example, when a new technology has a very large success, you
can charge high prices to the customer. This practice is also called skimming. It
is easy when you are in the introductory phase of the product life cycle.
Value pricing is also common in luxury items. Sometimes, the higher the price,
the more you sell: Fashionable clothing or restaurants for snob people. Of
course value pricing is limited by the price elasticity as you have already learnt
in Economics.
The diagram below illustrates how you have to determine your price. You could
see that a conflict could arise between your financial objectives ( the expected
profit) and your actual costs.
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PROMOTION
Advertising, public relations and so on are included in promotion and
consequently in the 4Ps. Sometimes, packaging becomes a fifth P. As
promotion is closely linked to the sales, I will mention here the most common
features about the sale strategy.
-Definition: The function of promotion is to affect the customer behavior in
order to close a sale.
Of course, it must be consistent with the buying process described in the
consumer analysis.
Promotion includes mainly three topics: advertisement, public relations,
and sales promotions.
-Advertisement:
It takes many forms: TV, radio, internet, newspapers, yellow pages, and so on.
You have to take notice about three important notions:
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Reach is the percentage of the target market which is affected by your
advertisement. For example, if you advertise on radio you must know how
many people belonging to your segment can be affected.
Frequency is the number of time a person is exposed to your message. It is said
that a person must be exposed seven times to the message before to be aware of
it. Reach*frequency gives the gross rating point. You have to evaluate it
before any advertisement campaign.
Message: Sometimes, it is called a creative. Anyway, the message must: get
attraction, capture interest, create desire and finally require action that is to say
close the sale.
Down-earth-advice:
There are some magical words that you can use in any message:
-Your-You--I-Me-My--Now-Today
-Fast-Easy-Cool-New-Fun-Updated-Free-Exciting-Astonishing
-Success-Love-Money-Comfort-Protection-Freedom-Luck.
-Public relations:
Public relations are more subtle and rely mainly on your own personality. For
example, you can deliver public speeches on subjects such as economics, geo-
economics, futurology to several organizations (civic groups, political groups,
fraternal organizations, professional associations)
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These speeches will enable you to develop new relationships and their cost is
nil!
-Sales promotion:
It includes fair trades, coupons, discounts and are linked to the sales strategy.
SALES STRATEGY
Sales bring in the money. Salesmen are directly exposed to the pressure of
finding prospects, making deals, beating competition and bringing money.
You have first to learn some definitions used by the MBA lingo:
Definitions:
A lead is a person who has been identified as a prospect.
A prospect is a potential customer.
An account is a customer that often buys from the company.
A national account is a very big customer
An order taking: the customer asks for a product and the vendor sells it. It's
usual way to sell candy, soda or to sell tickets for theater.
On the contrary, active selling involves locating customers and persuading
them to buy.
Inside sales refers to selling done mainly by phone or by internet. Outside sales
involves getting appointment to meet customers at their home. Home cold
calling means to phone people you do not know. Hardsell means to use of high
pressures upon the prospect.
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We have then to distinguish the sale process and the sale organization.
The sales process:
It depends heavily on the buying process. It includes prospecting and
persuading.
Prospecting involves finding the leads and presenting the product. After
making contact, the salesman must show that the product solves a customer's
problem. He must also answer two questions :
- Has the prospect a need or an interest in the product ?
- Does the prospect have the money to buy the product ?
If the prospect does not meet these criteria, you have better to move on to the
next prospect !
Persuading and authority are often necessary to close a sale. The salesman's
approach is often to rise questions in order to lead the prospect to a logical
conclusion : I must buy now.
The four Ps, product, place, price and promotion are the elements of the
marketing mix used to establish a detailed and final marketing plan.
After the product which is a paramount, the place is very important because it
describes how you reach the consumer and what distribution channel you are
going to choose: Margins and image are quite important features in this matter.
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According to your product and place , the pricing strategy will have heavy
consequences on the promotion campaign and on success or failure of your
business as a whole
PERCEPTION
Perception is the process by which an individual interpret various
stimuli received and forms a meaning full picture of the word.
PERCEPTION PROCESS
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EXPLORE
Exposure occurs when our sensory receptors detect a stimulus
Implication for marketers:
Consumers must be exposed to your marketing efforts
for them to perceive anything
Ad placement - being in the right place at the right time!!
Road blocking - catch them at every corner:
Ads on competing channels
Use multiple media
ATTENTION
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Exposure occurs when our sensory receptors detect a stimulus
Implication for marketers:
Consumers must be exposed to your marketing efforts
for them to perceive anything
Ad placement - being in the right place at the right time!!
Road blocking - catch them at every corner:
Ads on competing channels
Use multiple media
INTERPRETATION
Interpretation occurs when consumers give meaning to the incoming
stimulus information
Information is subject to:
Cognitive interpretation - the process of adding meaning from
existing knowledge Affective interpretation - the processing of information
and adding meaning based on feelings
Influences on interpretation:
Individual characteristics
Stimulus factors
Situational factors
The way the information is presented
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CHAPTER-IV
1)Occupation of the respondent
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Particulars No. of respondets Percentage of
respondents
Employee 51 51
Self employed 8 8
Home maker 10 10
Student 31 31
Total 100 100
0
10
20
30
40
50
60
Employee Self employed Home maker Student
Serie
INTERPRETATION:
From the above table it shows the 51% of the respondents are
employees, 31% of the responders are students, 10% of the respondents are
home maker and the remaining 8% of the responders are self employed.
2) Why do you like to purchase in spencers market?
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Particulars No. of respondets Percentage of
respondents
Quality products 22 22
overall ambience 44 44
Affordable prices 12 12
monthly offers 22 22
Total 100 100
INTERPRETATION:
From the above table is shown the 22% of quality products and 44% of
overall ambience and affordable prices are 12% and 22% of monthly
offers,
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3) Which communication channel makes you to recall Spencers?
Particulars No. of respondets Percentage of respondents
Ads on print media 12 12
Positive word of
mouth
38 38
Ads on electronic
media
11 11
Satisfaction from
the previous
purchase
39 39
Total 100 100
0
5
10
15
20
25
30
35
40
45
Ads onprint
media
Positive word of
mouth
Ads on
electronic
media
Satisfaction
fromthe
previous
Series1
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INTERPRETATION:
From the above table shown the 12% of Ads on print media and 38% of
positive word of mouth, & 11% of Ads on electronic media, the remaining39% of satisfaction from the previous purchase.
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4) Which paper do you read?
Particulars No. of respondets Percentage of
respondents
The Hindu 32 32
Eenadu 35 35
Sakshi 30 30
Decan chronicle 3 3
Total 100 100
0
5
10
15
20
25
30
35
40
The Hindu Eenadu Sakshi Decan chronicle
Serie
INTERPRETATION;
From the above table shows the32% of Hindu and Eenadu 35% and Sakshi is30% and the remaining 3% is Deccan chronicle.
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6) Which (TV) channel do you most watch ?
Particulars No. of respondets Percentage of
respondents
Local channels 16 16
National channels35 35
News channels 30 30
Music channels 19 19
Total 100 100
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0
5
10
15
20
25
30
35
40
Local
channels
National
channels
New s
channels
Music
channels
Series1
INTERPRETATION;
It is noticed that majority of the respondents prefer 35% of national channels
and 30% of news channels,19% of music channels the remaining 16%
peoples are watching local channels .
7) Do you know about our monthly & weekly promotions if yes please tick
on the from the below?
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0
5
10
15
20
25
30
35
Coolm
elaoff
er
Harabh
araoffe
r
Mang
ofest
Anniv
ersaryoffe
r
Series1
INTERPRETATION;
Most of the respondents are quite happy and satisfied with the kool mela offer
in terms of reasonable price, installations, and other related benefits such asservicing, etc........
Particulars No. of respondets Percentage of
respondents
Coolmela offer 29 29
Hara bhara offer25 25
Mango fest 27 27
Anniversary offer 19 19
Total 100 100
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8) Which media reach you?
0
10
20
30
40
50
60
70
Print media Electronicmedia
Series1
INTERPRETATION;
Print media is the pioneer and stands on top despite of electronic media grow
thing stage, in creating awareness among customers followed by event
sponsoring, hoardings and sky writings.
Particulars No. of respondets Percentage of
respondents
Print media 66 66
Electronic media34 34
Total 100 100
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9) Are our internal communication & announcement reaching you?
0
10
20
30
40
50
60
Yes No Veryrarely Frequent ly
Series1
INTERPRETATION;
It is observed that majority of the respondents are not getting the internal
announcement.
Particulars No. of respondets Percentage of respondents
Yes 25 25
No16 16
Veryrarely 50 50
Frequently 9 9
Total 100 100
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10) Do you feel comfortable with the communication given through
(pops) point of purchases?
0
10
20
30
40
5060
70
80
90
100
Yes No
Series1
INTERPRETATION;
Majority of the respondents conveyed they pretty well like the communication
given through (pops) point of purchase.
Particulars No. of respondets Percentage of
respondents
Yes 88 88
No12 12
Total 100 100
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11) Do you think the sales force at Spencers provide you service with
ease?
0
10
20
30
40
50
60
strongly agree Agree
Series1
INTERPRETATION;
Majority of the respondents conveyed that they are happy the way receiving
at the particular shopping .
Particulars No. of respondets Percentage of
respondents
stronglyagree 27 27
Agree56 56
Disagree9 9
Strongly disagree 8 8
Total 100 100
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0
10
20
30
40
50
60
stron
glya
gree
Agree
Disa
gree
Strongly
disa
gree
Series1
INTERPRETATION;
From the above analysis its clearly shown that majority of the respondents
are pretty happy about the one stop shopping destination.
13) Where do you rate the quality of Spencers own brand products?
Particulars No. of respondets Percentage of
respondents
Very good 12 12
Good
48 48
Satisfactory 36 36
Poor 4 4
Total 100 100
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0
10
20
30
40
50
60
Very
goo
dGo
od
Satisfa
ctory
Poor
Series1
INTERPRETATION;
From the above table shown 48% of respondents are feeling good about the
spencers own brand products, and also 36% of the respondents are feeling
satisfactory .
14) How do you feel shopping at Spencers?
Particulars No. of respondets Percentage of
respondents
Feel happy 33 33
Somewhat happy
44 44
Not happy 8 8
Satisfactory 15 15
Total 100 100
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0
5
10
15
2025
30
35
40
45
50
Feelha
pp
Som
ewha
thap
Not
happ
Satisfa
ctor
Series1
INTERPRETATION;
Above the analysis clearly shown that the half of the respondents are fell
happy when shopping at spencers.
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CHAPTER V
Findings
It is found that majority of the respondents are in favor of consumable
products
Most of the respondents feel that consumption of spencers product is
symbol of social status.
Most of the responds are quite happy and satisfied with the spencers
products in terms of Quality, Quantity, durability, etc.............
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To full their daily needs majority of the respondents prefer spencers
products like FMCG etc......
It is noticed that most of the respondents wanted air conditioner to
reduce their body heat especially in the summer.
The spencers hyper market service is good and can do better.
Spencers super market is doing well as well as it has to improve itsown brand products.
It is found that customers are most interested in hara bhara offer and
also that they want some another offers like this.
Spencer is the only one shop performing consistenitently as well aspioneer in the retail business.
Suggestions
Spencers market must come up with new products to boost up its sales.
Spencers hyper market should introduce special summer offer to
improve the sales during the peak season.
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Spencers should improve the own brand products because when
compared to other products its moving is very slow.
To attract the customer spencers should concentrate on sponsoring
social events.
Apart from increasing the frequency of Ads electronic media, spencers
must also make proper use of print media to boost up its sales.
Spencers should also maintain the customer relationship thats the only
one way to retain the customers.
New customer attractive schemes if introduced would certainly help
spencers to scale new heights.
As customers will keep switching from one super market to the other,
spencers must look for customer delight & should not just stop with
customer satisfaction.
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Conclusion
Spencers is one of the pioneer in the retail marketing field and its doing
tremendously well for the past so many years. Spencers products and its own
brand products have got a very good place for themselves in the customers
heart and are enjoying very good market share.
Despite of taking every possible care it is found that spencers is just
foot forward in terms of market shares when compared with Big bazaar which
is a little disappointing and hence steps are to be taken to further maximizing
the same.
To beat out competitors and to improve its current position, spencers
should add new products which can bring a revolution in the sales ofspencers products.
Also spencers has to make proper use of every possible channel to
boost up its sales and particularly has to increase the frequency of its Ads in
print and electronic media.
Spencers must leave no stone un turned in satisfying the customers and
must be very conscious about its competitors and must take timely action
to survive and thrive in todays competitive market place.
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QUESTIONNAIRE
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A STUDY ON CUSTOMER PERCEPTION @ SPENCERS
(With special reference to Spencers hyper market Pvt. Limited)
Questionnaire
Name:
Contact No: Area:
1) Occupation of the respondent
A) Employee B) Self employed
C) Home maker D) Student
2) Why do you like to purchase in spencers market?
A) Quality products B) overall ambience
C) Affordable prices D) monthly offers
3) Which communication channel makes you to recall Spencers?
A) Ads on print media B) Positive word of mouth
C) Ads on electronic media D) Satisfaction from the previous purchase
4) Which paper do you read?
A) The Hindu B) Eenadu
C) Sakshi D) Decan chronicle
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5) Which F.M do you listen?
A) 93.5/Red fm B) 92.7/Big fm
C) 98.3/Radio mirchi D) 91.1/Radio city
6) Which (TV) channel do you most watch?
A) Local channels B) National channels
C) News channels D) Music channels
7) Do you know about our monthly & weekly promotions if yes please
tick on the from the below?
A) Cool mela offer B) Hala bara offer C)
Mango fest D) Anniversary offer
8) Which media reach you?
A) Print media B) Electronic media
9) Are our internal communication & announcement reaching you?
A) Yes B) No C) Very rarely D) Frequently
10) Do you feel comfortable with the communication given through
(pops) point of purchases?
A) Yes B) No
11) Do you think the sales force at Spencers provide you service with
ease?
A) Strongly agree B) Agree
C) Disagree D) strongly disagree
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12) Do you think Spencers is a one stop shopping destination, as it
provides all under one roof?
A) Strongly agree B) Agree
C) Disagree D) strongly disagree
13) Where do you rate the quality of Spencers own brand products?
A) Very good B) good C) Satisfactory D) Poor
14) How do you feel shopping at Spencers?
A) Feel happy B) Some what happy
C) Not happy D) Satisfactory
15) Your suggestions to Spencers if any
________________________________________________________________
________________________________________________________________
________________________________________________
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BIBLIOGRAPHY
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BIBLOGRAPHY
Marketing management Philip kotler
Consumer Behaviour k.k.Srivastava
Research Methodology C.R.Kothari
Consumer Behaviour Leon.g.schiffman
Indian Journal of marketing
www.spencers retail.com
www.google.com