A REPORT

ON

MARKETING RESEARCH

AND

NEW BUSINESS DEVELOPMENT

By

Afzal Ishtiaq Usmani

(13BSPHH010027)

(SPENCER’S RETAIL LIMITED)

A REPORT

ON

MARKETING RESEARCH

AND

NEW BUSINESS DEVELOPMENT

By

Afzal Ishtiaq Usmani

(13BSPHH010027)

(A report submitted in partial fulfillment of the requirements

of MBA Program of IBS Hyderabad)

Undertaken at

(Spencer’s Retail Limited)

Submitted to

Prof. Praveen Srivastava Mr Rakshan Ali Khan

Faculty Guide Company Guide

IBS Hyderabad (Regional Marketing Manager, U.P east)

Date of submission :-

Authorisation

This project was undertaken at Spencer’s Retail Limited , Lucknow

from Februaury 24, 2014 to May 23, 2014 as an Assignment for

Summer Internship Project in marketing for partial fulfillment of the

MBA Program at IBS, Hyderabad.

Date: 23/05/2014

Acknowledgement

I take immense pleasure in thanking Spencer’s Retail Limited for allowing me to pursue this

project in its esteemed organization.

I wish to express my deep sense of gratitude to Mr. Rakshan Ali Khan who had been a source

of inspiration in this project. It is a great pleasure for me to acknowledge him for his assistance,

contributions and valuable suggestions during the development of this project

I would also like to thank Mr. Sanjay Das, who has been a torch bearer for me in the company

and helped us know different concepts of retail industry.

I would also like to thank Mr.Ravi who has helped us a lot in understanding about the new

business development policies and in confirmation of properties for stores.

I would like to extend my gratitude to my faculty guide, Mr. Praveen srivastava , for his

guidance in this project and for taking the initiative of inviting Spencer’s Retail Limited to IBS

for summer placements. He has also guided me by giving his valuable feedback from time to

time.

Words are inadequate in offering my thanks to the entire team at Spencer’s Retail Limited,

who helped me with all the issues I faced during the Summer Internship at the company and

providing me with a very conducive environment to carry out the project. Without their

guidance and support, I would have never got a chance to gain a real life experience of working

with such a reputed company.

My special thanks also to Mr. Vikas ( marketing manager, FUN Hyper ) who also helped me a

lot in doing my project as well as for motivating me always when ever needed

Last but not least, I express my heartiest gratitude to Almighty god, my mother for her love

and blessings to complete the project successfully.

23/05/2014 Afzal Ishtiaq Usmani

Table of contents

i. Authorisation………………………………………………..i

ii. Acknowledgementi………………………………………….ii

iii. Executive Summary………………………………………. iii

iv. List Of Tables………………………………………………iv

v. Introduction To Retail Industry…………………………..1-2

vi. Overview Of The Company………………………………..3

Company Profile…………………………………………..4-5

Different Spencer Stores………………………………….6-10

vi. Research Methodology………………………………………11

vii.Conducting Market Survey…………………………………12-17

viii. Catchment Study…………………………………………..18-22

ix. Competitor Analysis…………………………………………23-25

x. STP And Lifecycle Of Spencer’s…………………………… 26

xi.Porter’s 5 Force Model………………………………………27-31

xii. SWOT Analysis……………………………………………...32

xiii. PESTLE Model…………………………………………… 33-36

xiv. Marketing Mix…………………………………………….. 37-38

xv. Positioning………………………………………………….. 39

xvi. Organization And Customer Value…………………………40

xvii. Annexures 1-7 ………………………………………………41-77

xviii. References………………………………………………….78

xix. Student feedback form……………………………………..79

LIST OF TABLES

1. Age Distribution

2. Employement Details

3. Salary

4. Area Of Arrival

5. Awareness Of Promotions

6. Rating

7.First Visit

8. Future Shopping

9. Suggesting Others

10. Pop Visibility

11.Medium Of Awareness

12. Newspaper Read

13. Analysis Of 5 Forces With Spencer’s

14.SWOT Analysis

Executive summary

The internship carried out at spencer’s helped us to learn about the retail industry mainly the organized sector. It

helped us get to the roots of Spencer’s and know it from the nutshell. We went through several projects throught

the programme.

Market survey helped us know about the mindset of people visiting spencer’s , their awareness about the

promotional offers and also helped the company in knowing which medium they can use in order to reach

maximum potential buyers. It also helped me analyse how age, salary, type of employement and distance of

residence from the store effects the buying behavior and also helped me make a pattern through which we can

calculate which person will visit us or not.

We also went through catchment study which helped me analyse different markets feasible for opening a new

store. It also helped me learn the different costs involved in opening a new retail store and how we should plan

in order to reach early breakeven . It also made me understand that catchment is a necessary tool for retail

industry.

We also did a competitive analysis on big bazaar which helped me to differentiate between prices of similar

goods . It thus provided me a platform to understand whether big bazaar’s guirella strategy is really affecting

spencer’s or not

We also tried to map different concepts of marketing with the real world scenario at Spencer’s like

understanding their STP , lifecycle, 5 forces of porter, PESTLE model, doing it SWOT analysis and finding out

its marketing mix .

INTRODUCTION TO RETAIL INDUSTRY

“Retailing includes all activities that are involved in selling goods and services directly to final customers for

their personal, non business use.”

After 50 years of unorganized retailing and fragmented kirana stores, the Indian retail industry has finally

begun to move towards modernaization, systemization and consolidation. Today,modernization is the catch

phrase and the key to understanding retail in the next decade. Traditionally retailers have had localized

operations. This localized nature of industry is changing as retailers face lower growth rates and threathened

profitability in home markets. New geographies help them sustain top line growth in addition to enabling

global sourcing and encashing on global advantages of getting the best product at optimum prices. There has

been a boom in retail trade in india owing to a gradual increase in the disposable incomes of the middle class

households. More and more players are entering the retail business in india to introduce new formats and

even changing the traditional retail stores

.

Types of retailing 1. Speciality stores:- carry a narrow product line with a deep assortment such as apparel store, furniture

stores etc.

2. Department stores :- carry several product lines- typically clothing, home furnishing and household

goods with each line operated as a separate department managed by specialist buyers

3. Supermarkets :- a relatively large, low cost, low margin, high volume self-service operation designed

to serve the customer’s total need for grocery and household products

4. Convenience stores :- relatively small stores located near residential areas, open long hours and

carring limited line of high turnover convenience products at slighter lower costs

5. Discount stores :- carry standard merchandise sold at lower prices with lower margins and higher

volumes

6. Superstores :- very large stores traditionally aimed at meeting customer’s total needs.

7. Mom and pop stores –traditionally small family owned format

Amount of service offered:-

1. Self service retailers :- they serve the customers who are willing to perform their own “locate-

compare-select “ process to save time and money. It is a basis of all discount stores and is used by retailers

selling convenience goods and nationally branded fast moving shopping goods. Eg:- Spencer’s

2. Limited service retailers :- they provide more sale assistance because they carry more shopping

goods about which customers need information.their increased operationg cost result in high prices. Eg:-

shoppers stop

3. Full service retailers :-they are high end speciality stores and first class departmental stores where

sales people assist customers in every phase of shopping. They carry more of speciality goods for which

customers want more assistance.

Major types of retail organizations :-

1. Corporate chain stores :- two or more outlets that are commonly owned and controlled.

2. Voluntary chain :- wholesaler sponsored group of independent retailers engaged in group buying and

merchandizing

3. Retailer cooperative :- group of independent retailers who set up a central buying organization and

conduct joint promotion efforts

4. Franchise organization :- contractual association between a franchiser and franchisees . these are

based on some unique products or service, on a method of doing business or on a trade name, goodwill or

patent.

5. Merchandizing conglomerate :- a free-form corporation that combines serval diversified

retailing lines and forms under central ownership, along with some integration of their distribution and

management functions.

Change in consumer behavior and growth of retail industry

The whole concept of shopping has altered in terms of format and customer buying behavior ushering in a

revolution in shopping in india. Rising income levels, falling real estate cost and a greater exposure to media

and international trends have fuelled retail growth. Consumer spending in india is estimated to have grown at

an average rate of 11.5% per year over the past decade. While retailers have improved their offerings, many

attribute their better fortunes to a change in consumer behavior.

Overview of the Company

Spencer's Retail Limited

Type Subsidiary

Industry Retail

Founded 1920

Headquarters Kolkotta, West Bengal,

India

Employees 80,000+

Parent RPG Group

Website spencersretail.com

COMPANY PROFILE

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.

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.

The 80s see further acquisitions by the RPG group, the first being CEAT Tyres of India in 1981. The group then

went on to acquire KEC (1982); Searle India, now RPG Life Sciences (1983); Dunlop (1984); HMV (1988);

and finally CESC, Harrisons Malayalam, Spencer & Co. and ICIM in 1989.

RP Goenka’s sons Harsh (Chairman) and Sanjeev (Vice-Chairman) spearhead the group’s management from

1990.

RPG RETAIL - VISION

To be a customer focused, differentiated, Foods intensive Retail Company with clusters of destination and

convenience stores (Hyper ,Supers & Dailies)

To establish Spencer’s Express & mass proliferate

To set up Retail chains in focused Verticals like Music, Books, Mobility Solutions, Apparel, Footwear, Luxury

Brands and Life Style Brands where domain knowledge exists or is acquired through partnerships

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.

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.

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

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 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

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

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.

CLASSIFICATION OF HYPER

BACKGROUND:-

India’s first modern format hypermarket was opened by Spencer’s in Hyderabad in January 2001. Located

over an area of 1,20,000 sq.ft., the store has a trading area of 36,000 sq.ft. The Spencer’s hypermarkets,

located across the country, are open throughout the day, seven days a week, 365 days a year.

Spencer’s already employ over 9000 employees across 60 cities. Roughly 1/3rd

of the team are women.

Spencer’s began its operations in India way back in 1863 and since then has remained a part of the lives of

Indian consumers. 145 years later, the Spencer’s name still evokes special memory of authentic quality at

affordable prices.

Currently, RPG’s Retail activity comprises Spencer’s Retail, RPG Cellucom, Books & Beyond and

MusicWorld. RPG’s total retail outlets are more than …… The total area of all Spencer’s stores across the

country is over ….. sq.ft. Spencer’s currently has a national consumer base of over 48 million people, who

walk into the store every year.

DIVISION

OF HYPER

HWPFL

Home, Work, Play, Furniture, Linen.

GARMENTS

SECTION

Deals with Apparels.

ENE

Electrical N Electronic.

F & V

Fruits & Vegetables.

STAPLES

Deals with Grocery items.

FMCG

Food & Non-Food

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

coffee/tea, masalas, pickles, Ghee, Fish and

meat.

1000

Spencer’s Fresh vegetables, fruit, milk, eggs, breads 2000

Spencer’s daily regular groceries 4000-7000

Spencer’s Super home care products; personal care products,

Bakery, Chilled and frozen food; Baby care

products

8000-15000

Spencer’s Hyper Miscellaneous More than 25000

RESEARCH METHODOLOGY

RESEARCH

“Research is a systematized effort to gain new knowledge.”

-Redman & Mory

“Research is a careful investigation or inquiry especially through search for new facts in any branch of

knowledge.”

-Advanced Learner’s Dictionary of Current English

“Research is the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct

or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art.”

OBJECTIVES OF RESEARCH:-

The purpose of research is to discover answers to questions through the application of scientific procedures. The

main aim of research is to find out the truth which is hidden and which has not been discovered as yet. In this

project descriptive type of research has been done.

DESCRIPTIVE RESEARCH:-

Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of

descriptive research is description of the state of affairs as it exists at present.

In social science and business research we quite often use the term Ex post facto research for descriptive

research studies. The main characteristic of this method is that the researcher has no control over the variables;

he can only report what has happened or what is happening.

RESEARCH METHODOLOGY APPLIED

We have used anova both one way and factorial design to understand various factors that are affecting a single

process or behavior. We have also implemented discriminant analysis to understand the pattern of buying and to

know whether a customer in future will buy from our shop or not. The calculations of these have been done at

the last of the report

Conducting Market Survey

The first assignment being allotted was to conduct a market survey in form of interviews by talking to

customers while they are shopping and also on exit to know their mindset of Spencer’s when compared to

other retail chains and also to know if they are aware of promotions at Spencer’s .this was also done to do the

following things:-

I. To create a database of customers visiting spencers

II. To know their area of residence and their salary division

III. To Check whether they are aware of promotions or not

IV. To check their satisfaction when compared to other retail stores and also their understanding of various

pop’s

V. To know about the number of new customers at spener’s

VI. To find out which medium they use to know about promotions and also to know which is the maximum

newspaper being read

Survey was conducted for a duration of approx. 3 weaks with sample size of around 940 people and the

target person was anyone who visited the store on the date of interview.

Findings of the survey

1. Age Distirbution

2. Employement Details

Age level

Total

number %

18-25 years 147 15.65495

26-35 years 308 32.80085

36-45 years 437 46.53887

46 and above 45 4.792332

Table 1

Type

Total

number %

Employed 492 52.39617

self employed 140 14.90948

Others 304 32.37487

Table 2

3. Salary

4. Area Of Arrival

5. Awareness Of

Promotion

6. Rating

Range

Tototal

number %

10k-20k 65 6.922258

20k-30k 427 45.47391

30k-50k 348 37.0607

50 k and above 93 9.904153

Table 3

Range To total

number %

1-2 km 45 4.792332

2-3 km 145 15.44196

3-5 km 346 36.84771

5 km and above 364 38.76464

Others 28 2.981896

Table 3

Tot total

number %

Yes 204 21.72524

No 735 78.27476

Table 4

Rating Tottotal number %

Poor 26 2.768903

Average 681 72.52396

Good 218 23.21619

Excellent 13 1.384452

Table 5

7. First Visit

8. Future Shopping

9. Suggesting Others

10. Pop Visibility

first visit

Tottotal

number %

No 823 87.64643

Yes 116 12.35357

Table 6

Future

Tottotal

number %

Yes 915 97.44409

No 24 2.555911

Table 7

Suggest

Tot total

number %

Yes 550 58.57295

No 389 41.42705

Table 8

Display To total number %

Yes 868 92.43876

No 71 7.561235 Table 9

11. Medium Of Awareness

12. Newspaper Read

Conclusions/Recommendations from exit interview

1. Maximum people visiting the stores are in between the age group of 36 and 45 years and hence more

concentration should be given to the goods consumed by this age group

Age group of 26-35 years are also visiting stores in a good number thus good such as clothings beauty items

should be increased to encourage them for shopping

2. Most customers of spencer’s are employed hence more offers should be provided on weekends to

increase the footfall and also the shopping

Others mainly consists of housewifes, not working people and students, thus grocery which is strong point for

spencer’s should be worked on if targeting this segment

3. Main portion of customer’s coming are in range of earnings between 20k and 30k followed by people in

Medium

Tot total

number %

Newspaper 691 73.58892

Sms 10 1.064963

Outdoor 85 9.052183

Wom 99 10.54313

tv/radio 52 5.537806

Leaflets 2 0.212993

Table 10

Tott total

number %

times of india 418 44.51544

dainik jagran 209 22.25772

amar ujala 42 4.472843

Hindustan 258 27.47604

i-next 3 0.319489

Others 7 0.745474

Table 11

between 30k and 50k thus cheaper products which are more durable and available at less cost should be

brought in to make the customers buy more

4. Mainly the footfall is from a range of 5km and above which include areas like munshipulia, vikas nagar,

eldeco, ashiana, rajajipuram, naka hindola, alambagh with major chunks coming from ashiana and rajajipuram

and hence more focus needs to be given to this.

The other area which has the major footfall is gomtinagar, bhootnath, hazratganj, aminabad, cantt area

(3-5km)

People from nearby are visiting less and hence more concentration needs to be given to them to make

them aware of promotions and offers of Spencer’s

5. Majority of people being interviewed were unaware about the promotions and offers running at Spencer’s

and thus proper awareness programs should be created so that people can get to know about offers. This can be

done through mobile vans, leaflet distributions and mainly through newspaper insertion as we came to know

that maximum people know about promotions through newspapers

6. When people were asked to rate spencer’s when compared to other retail stores majority felt that it is

average or at par with other stores with only POD being the fresh vegetables being offered. Some even said the

offers here are far less that Big Bazaar and the products being sold are costly as compared to them. Moreover

some said that goods they require are not easily available here and hence they have to visit BB to buy those.

Some even said that apparel section is lacking the collection it should have atleast at the time of festivals

7. Maximum customers at Spencer’s were found out to be the regular customers who come here for monthly

shopping and for their requirements for vegetables and other goods. Few of them were those who were just

visiting the town and because they don’t have spencer’s at their place they were visiting the store. Some said

that they have just come for window shopping and were having no intention to buy because of less offers and

high prices

8. People though were not much satisfied with Spencer’s and gave it average rating said they will defiantely

visit again to see if there are new offers.

When asked about referring others they said they will do if asked for it and will suggest people to come

for grocery and vegetables at Spencer’s. others were of the opinion that people are aware through social sites

and other mediums and do not require referring to come for shopping

9. Most of the customers visiting the stores said they had no issue in figuring out the offers and were easily

able to shop although some said they had slight confusion regarding terms and conditions of the offerings.

Moreover they said that instore promotions lacks a lot because they are not clearly audible and not clear in

their pronounciations. They also said that sound quality at spencer’s is not good for knowing in-store

promotions.

10. Awareness of promotions among people is mainly created with the help of newspapers in which times of

india has the widest reach followed by hindustan and dainik jagran. Thus promotional activities through TOI

and HT should be increased to gain more footfall.

Moreover word of mouth and outdoors also contribute a healthy number in the number of customers

arriving here.

Leaflets were found to lack the effectiveness and hence more concern should be given to this whether

through home to home distribution or in-mall distribution of forms

11. Footfall has increased by 1542 when compared to last year in the very same days

NoB has increased by 2293 in the same duration

Conversion grouwth has been 4.54% with sales increment of Rs 43,01,343 which implies a 36.24%

increment in sales volume when compared to last year thus showing a substantial growth .

Suggestions

1. Proper awareness programs needs to be designed to make people aware of the offers even before they visit

the store

2 In-store promotions needs to be amended to provide clearence to customers about the ongoing offers

3. Better offers should be designed which can change the perception of customers as Spencer’s being a retail

chain basically focussing only on high and upper middle class of the society

4. More interactive programs needs to be initiated which can increase the footfall as the footfall difference is

very less when compared to last year

5. More advertisements should be provided to TOI and HT as they have the widest reach

6. Local products can also be included in the shelf to increase the sale and also increase the mass reach

7. Apparel section needs a major concentration as products of good quality are out of stock and that too in the

festival season.

8. In mall promotions and awareness camps can also be arranged where a general issue can be discussed under

the name of Spencer;s

( Feedback Form, Pie Charts And SAS Calculations Are There In ANNEXURE

1,2 AND 3 )

CATCHMENT STUDY

Catchment analysis is originally a study to identify an ideal location for establishment of a new retail outlet

but it can be helpful to identify potential customer base in any geographical area for existing retail outlets.

This study includes study about various geo-demographic factors like occupation, mother tongue,

education standard etc. and help in understanding customer preferences, accessibility in buying, purchase

intentions buying patterns and likelihood of buying for the group of products that the retailer deals with

and level of competition in that area.

The final outcome of catchment area analysis provides the retailer an idea about number of customers who

can visit the store and kind of products that will be in demand and the stock he need to maintain in order to

meet the demand in selected location. Importance of catchment can be seen in the point that if all retail

companies are offering same products and services within same price range and quality standards than we

can easily say that the population within the catchment will do all its purchasing at the nearest centre.

However in practicality it‟s not possible that different retail companies are same and people have to travel

to their preferred destination for purchasing instead of their nearest one.

Differences between similar stores can affect the spending pattern in the present time, but it is important

to see how changes in various demographic factors and infrastructure development in competing locations

will have impact on such store in future.

Catchment analysis pre-launch will ideally decide the product mix and formats of the stores, catchment

analysis done from time to time will give information about what is happening and where to concentrate

marketing energies to get more walk-ins.

The total catchment area, of a store is useful information to decide a store location and post store opening

marketing energies focus. The catchment analysis is usually done to study the profile of consumers likely to

visit in terms of income profile, current shopping destinations and the likely visit to the new store, which

further can be helpful for business predictions and also useful in the " yes " or " no " decision.

Generally it can be considered that major retailers like department stores, furniture warehouses will be

destination sites. These sites can attract people from greater distances because the items are not common

purchases, are expensive or provide the opportunity where a number of purchases can be made from the

one location.

For these destination sites it is possible for consumers to travel more distance. Similarly a small

neighborhood store, or a small departmental store, would have a catchment near very small area which can

be no more than 1 or two kilometer distance. For retailers that offer the same or very similar products as

their competitors are offering, unless there is very strong pricing differences a customer may not be

prepared to travel pass the competition, he or she may select the nearest destination.

Catchment analysis is useful like any other market research in showing retailers the opportunity and the

direction to be taken.

Factors that influence consumers' decisions on where to shop include:

1. Presence of various retailers·

2. Volume, quality and product mix of retail offerings·

3. Additional services and facilities·

4. Leisure provision·

5.Accessibility·

6.Parking·

7.Shopping Environment and ambience

Catchment Analysis is important due to following factors:·

1. Prime consideration of customer‟s store choice, based on nearness to home/work, linked with other

domestic work·

2.Strategic importance for sustainable competitive advantage.

3.Merchandise, price, assortments can be changed but not location of a store.

4.Competitors can‟t easily copy as they are precluded from locating there.·

5.Entry of more and more companies in organized retail making difficult to find suitable location within

budget.·

6.Forms an important P of place for a long time for adequate assurance for a success.·

7. It also influences the merchandise mix and interior layout of store.·

8. It provides information about establishment of warehouse for online retailers.

Besides demographic factors, economic and infrastructural, cultural and competitive environment

prevailing in catchment area also needs to be analyzed.

Following are the factors which are analyzed for catchment area analysis

.1. Land Area

2. Schools

3. Population

4. Income Types

5. Age Distribution

6. Poverty Status

7. Household Size And Type

8. Departure Time For Work

9. Marital Status

10. Occupation

11. Family Size And Type

12. Working Women

13. Owner Occupied Housing

14. Fertility Rates

15. Rental Status

16. Vehicle Owners

17. Language Spoken

18. Telephone Subscribers

Above variables help location decision and also product line potential e.g. toys shop location for children,

economic factor i.e. unemployment will affect purchasing power in that area, per capita income data helps

in projecting demands for various merchandise. Economic stability of area can be estimated from

household incomes and expenditure patterns, buying power index and effective buying incomes are

calculated to arrive at fairly accurate analysis of catchment area.

The shape of organized retailing in India has undergone several changes over the last few years and a more

changes are expected in the near future. Retailers are making a push to get to the developments, which

have the first entrant advantage in a location, and are trying to get the best rental deals for longer time

periods. They understand that location and viable lease rentals are two very important ingredients for their

success. On the other hand, developers are rushing in to make sure that they are among the first entrants

in a catchment area with good retail potential as that strategy has spelt success in the past. Also, they are

keen to have the right tenant mix in their developments in order to attract repeat visits by clients.

Consumer is the ultimate reason for existing of any business. Companies can invest hugely in their projects,

but it‟s the customers who will give them return on their investments.There are lots of examples of such

failure where companies were not able to exactly know who their customers are. Since a company does not

know about their target customer profile its difficult or sometimes impossible to decide product offering,

pricing strategy and in that case promotional expenses will also be a waste if they don‟t know exactly to

whom they are communicating. Getting answer to this type of questions can be difficult but catchment area

analysis can be helpful in such kind of situations. A company can get good return on its employed resources

only if it knows its market in terms of customer profile and competition level.

In catchment area analysis, first part is area mapping of desired location and studies various geo-

demographic variables in that particular area.

Thus finding competitors location, potential customers and kind of flow between competitors and potential

customers. For this we need to quantify the sizes and potential of local market areas. With the help of

catchment area analysis, companies can know best location for establishment of their store, target and

potential customer base.

Type of catchment areaWith the help of catchment area analysis we can divide the total area into following

four kinds of catchment areas

1 Primary Catchment:-It is the nearest area around any retail store. As it will have maximum number

customer visiting store from this area. People in this area will be having demand for all kind of product

offering from specific retail store

.2 Secondary Catchment:-This area is little far away from primary area. Generally people from this

area will have less visits than primary area and will have less demand. As there can be other stores in their

neighborhood. It can be within 3 kilometer radius from the store.

3 Tertiary Catchment:-Tertiary area is more far away from the store, may be within 3 to 5 kilometer

radius. Retail store will have marginal number of customers from this area. Usually selected or some loyal

customers with specific demand will only visit the store.

4 Outer Catchment:-In this area companies don‟t have a kind of customer presence. People from

these are rarely or very less number of time visit the store.

This way, Catchment area analysis helps in scanning the environment and understanding the type of

consumers and their needs.

On the basis of these needs and the types or customers, the allocation of retailers, marketing activities are

carried out.

Conclusion

Retailing is becoming an important part of one‟s daily life. In present time a retail store provide solution to

all the needs and problem of everyone at one point. But this is not easy because deciding a location for

retail establishment to creating satisfied customer is a very long process, during this process various each

factor plays an important role. Ever increasing competition makes it difficult for established store to keep

their market share, for that reason established retail companies have to continuously scan their

environment to keep their market share safe and looking options for further growth and development. To

conclude, retail stores need to have a continuous look over its surrounding environment so as to take

advantage of available opportunities and being pro active to threats. And always trying to increase

customer walk-in and focus on long term relationship with customer, which finally result in customer

loyalty and profitability.

Catchment at Spencer’s

We did catchment about two locations and also studied a report of one location that helped us to

understand concept regarding opening of a new store.

The three places of catchment were :-

1. fun republic mall, gomti nagar (ANNEXURE 4 )

2. experia mall, near vibhuti khand (upcoming ) (ANNEXURE 5 )

3. mahanagar, near gold gym (ANNEXURE 6 )

It lead to understand the expected footfall which can be expected and various costs which are included in

the opening of a new store and also helped us understand the process of business development and the

time by which our stores will reach breakeven. This analysis is important as this help us know whether

opening a store in a particular location is profitable for us or not.

(Different Calculations Have Been Done And The Sheet Is Attached At The

Last Of The Report ANNEXURE 6 )

COMPETITOR ANALYSIS

Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of

current and potential competitors. This analysis provides both an offensive and defensive strategic context to

identify opportunities and threats. Profiling coalesces all of the relevant sources of competitor analysis into one

framework in the support of efficient and effective strategy formulation, implementation, monitoring and

adjustment.Competitor analysis is an essential component of corporate strategy.It is argued that most firms do

not conduct this type of analysis systematically enough. Instead, many enterprises operate on what is called

“informal impressions, conjectures, and intuition gained through the tidbits of information about competitors

every manager continually receives.” As a result, traditional environmental scanning places many firms at risk

of dangerous competitive blindspots due to a lack of robust competitor analysis.

Competitor profiling

The strategic rationale of competitor profiling is powerfully simple. Superior knowledge of rivals offers a

legitimate source of competitive advantage. The raw material of competitive advantage consists of offering

superior customer value in the firm’s chosen market. The definitive characteristic of customer value is the

adjective, superior. Customer value is defined relative to rival offerings making competitor knowledge an

intrinsic component of corporate strategy. Profiling facilitates this strategic objective in three important ways.

1. profiling can reveal strategic weaknesses in rivals that the firm may exploit.

2. the proactive stance of competitor profiling will allow the firm to anticipate the strategic response of their

rivals to the firm’s planned strategies, the strategies of other competing firms, and changes in the environment.

Third, this proactive knowledge will give the firms strategic agility.

Offensive strategy can be implemented more quickly in order to exploit opportunities and capitalize on

strengths. Similarly, defensive strategy can be employed more deftly in order to counter the threat of rival firms

from exploiting the firm’s own weaknesses.

Clearly, those firms practicing systematic and advanced competitor profiling have a significant advantage. As

such, a comprehensive profiling capability is rapidly becoming a core competence required for successful

competition. An appropriate analogy is to consider this advantage as akin to having a good idea of the next

move that your opponent in a chess match will make. By staying one move ahead, checkmate is one step closer.

Indeed, as in chess, a good offense is the best defense in the game of business as well.

A common technique is to create detailed profiles on each of your major competitors.

These profiles give an in-depth description of the competitor's background, finances, products, markets,

facilities, personnel, and strategies.

This involves:

1. Background

i. location of offices, plants, and online presences

ii. history - key personalities, dates, events, and trends

iii. ownership, corporate governance, and organizational structure

2. Financials

i. P-E ratios, dividend policy, and profitability

ii. various financial ratios, liquidity, and cash flow

iii. profit growth profile; method of growth (organic or acquisitive)

3. Products

i. products offered, depth and breadth ofproduct line, and product portfolio balance

ii. new products developed, new product success rate, and R&D strengths

iii. brands, strength of brand portfolio, brand loyalty and brand awareness

iv. patents and licenses

v. quality control conformance

vi. reverse engineering or deformulation

4. Marketing

i. segments served, market shares, customer base, growth rate, and customer loyalty

ii. promotional mix, promotional budgets, advertising themes, ad agency used, sales force success

rate, online promotional strategies

iii. distribution channels used (direct & indirect), exclusivity agreements, alliances, and

geographical coverage

iv. pricing, discounts, and allowances

5. Facilities

i. Plant capacity, capacity utilization rate, age of plant, plant efficiency, capital investment

ii. location, shipping logistics, and product mix by plant

6. Personnel

i. number of employees, key employees, and skill sets

ii. strength of management, and management style

iii. compensation, benefits, and employee morale & retention rates

7. Corporate and marketing strategies

i. objectives, mission statement, growth plans, acquisitions, and divestitures

Media scanning

Scanning competitor's ads can reveal much about what that competitor believes about marketing and their target

market. Changes in a competitor's advertising message can reveal new product offerings, new production

processes, a new branding strategy, a new positioning strategy, a new segmentation strategy, line extensions and

contractions, problems with previous positions, insights from recent marketing or product research, a

new strategic direction, a new source of sustainable competitive advantage, or value migrations within the

industry. It might also indicate a new pricing strategy such aspenetration, price discrimination, price

skimming, product bundling, joint product pricing, discounts, or loss leaders.

It may also indicate a new promotion strategy such as push, pull, balanced, short term sales generation, long

term image creation, informational, comparative, affective, reminder, new creative objectives, new unique

selling proposition, new creative concepts, appeals, tone, and themes, or a new advertising agency. It might also

indicate a new distribution strategy, new distribution partners, more extensive distribution, more intensive

distribution, a change in geographical focus, or exclusive distribution. Similar techniques can be used by

observing a competitor's search engine optimizationtargets and practices

For example, by conducting keyword research, one may be able to determine a competitor's target market,

keywords, or products. Other metrics allow for detection of a competitor's success.

Little of this intelligence is definitive: additional information is needed before conclusions should be drawn.A

competitor's media strategy reveals budget allocation, segmentation and targeting strategy, and selectivity

and focusFrom a tactical perspective, it can also be used to help a manager implement his own media plan. By

knowing the competitor's media buy, media selection, frequency, reach, continuity, schedules, and flights, the

manager can arrange his own media plan so that they do not coincide.Other sources of corporate intelligence

include trade shows, patent filings, mutual customers, annual reports, and trade associations. Some firms hire

competitor intelligence professionals to obtain this information. TheSociety of Competitive Intelligence

Professionals maintains a listing of individuals who provide these services

Benchmarking at Spencer’s

We visited the big bazaar saharaganj on 3rd

may on the day when bb was offering under the name of “public

sale” and noted down the prices of various key products at offer in Big bazaar and then compared them with our

products and offerings on the same days to know the difference between the prices . This helped us in knowing

the offers in which we outperformed big bazaar and the others on which we needed to improve upon. This thus

in one or the other way helped us to make offers when we went on with our promotional activity under the

banner of “zyada ka fayda “ from 9th

may-11th

may. (Sheet is attached in ANNEXURE 7)

STP of Spencer’s

Segmentation :- Discerning young customers looking for a range of quality products that let them

participate in a global lifestyle

Targeting:- Upper-middle and upper class individuals

Positioning :- Delighting shoppers with the best products and services that enable a fine living at

reasonable prices while providing them with a warm, friendly and knowledgeable retail environment .

Usp :- Create memorable 360° shopping experiences for consumers with a premium, high-street touch

Tagline :- “Makes Fine Living Affordable “

LIFECYCLE OF SPENCER’S

Michael Porter’s 5 Force Model And Its

Applicability With Indian Retail Industry

Michael Porter (1980) considers that rivalry (competition) on the market is result of the five variables or main

forces: rivalry level, bargaining power of customers and that of suppliers, the threat of new entrants and of

substitute products.

These variables are interconnected. They are illustrated in the matrix of the five competitive forces of

Porter.

The Five Forces model of Porter is an outside-in business unit strategy tool that is used to make an analysis of

the attractiveness (value...) of an industry structure. It captures the key elements of industry competition.

These forces are used in several industrial sectors. Like Retails, Telecom, Airline, Pharma etc.

Figure 1

Figure 2

1.Threat of New Entrants.

One trend that started over a decade ago has been a decreasing number of independent retailers.

Walk through any mall and you'll notice that a majority of them are chain stores.

While the barriers to start up a store are not impossible to overcome, the ability to establish favorable supply

contracts, leases and be competitive is becoming virtually impossible.

Their vertical structure and centralized buying gives chain stores a competitive advantage over independent

retailers.

2. Bargaining power of suppliers.

Historically, retailers have tried to exploit relationships with suppliers.

Bargaining power of buyers is moderate because of the size and concentration of major retailers.

To reduce power and you retain customers, retailers seek to differentiate products and create strong brands.

Individual private customers have a relatively low bargaining power in front of large retail chains, however,

their power is greater for small retailers, who are less organized.

A contract with a large retailer such as Spencers can make or break a small supplier. In the retail industry,

suppliers tend to have very little power.

3.Power of Buyers.

Individually, customers have very little bargaining power with retail stores.

It is very difficult to bargain with the clerk at Safeway for a better price on grapes.

But as a whole, if customers demand high-quality products at bargain prices, it helps keep retailers honest.

4.Threat of substitute products.

The tendency in retail is not to specialize in one good or service, but to deal in a wide range of products and

services.

This means that what one store offers you will likely find at another store.

Retailers offering products that are unique have a distinct or absolute advantage over their competitors.

5. Competitive Rivalry

Is increased by equal size and power of dominant retailers who are pushing to increase market share.

The trend of extinction of small retailers through acquisitions, mergers alliances and high cost to exist this

market.

Among leading group there are More, Reliance store, Big bazar and Flipkart that are dominating the large

markets of retail sector in India.

Analysis about Spencer’s

5 forces An analysis

rivalry amongst the

competitor

• Reliance Retail, Aditya Birla Group , Vishal Retail’s, Bharti and

Walmart,, Big bazaar

Threats of entrants • FDI policy favorable for international players.

• Domestic conglomerates looking to start retail chains.

• International players looking to foray India.

bargaining power of suppliers

• The bargaining power of suppliers varies depending upon the target

segment.

• The unorganised sector has a dominant position.

• There are few players who have a slight edge over others on account of

being established players and enjoying brand distinction.

bargaining power of

Buyers

• Consumers are price sensitive..

• Availability of more choice.

threats of substitutes • Unorganized retail

Table 123

CONCLUSION:

1.The model of porter led to following conclusion about threat of new entrants, bargaining power of

suppliers, bargaining power of customer, the rivalry between existing firms on retail market in Romanian and

threat from substitute product.

2.In the retail sector barriers to entry are relatively high.

3.Consumer bargaining power is moderate because size and concentration of major retailers

4.There are many threats on the retail market penetration of large discount stores.

5. E-retailing is also threat to stable trade retailers.

6. Rivalry among existing firms in retail market in Romanian is enhanced by equal size and power of

dominant retailers who pressured to increase their market share.

7. The trend of extinction small retailers through acquisitions , mergers or alliances and high cost to exist

this market

Strengths of five forces model:

1. The model is strong tool for competitive analysis at industry level.

2. It provides useful input for performing a SWOT analysis.

Limitations

1. Inside-out strategy is ignored (core competence)

2. It does not cope with synergies and interdependencies within the portfolio of large corporations (parenting

advantage)

3. The environments which are characterized by rapid, systemic and radical change require more flexible,

dynamic or emergent approaches to strategy formulation (disruptive innovation)

4. Sometimes it may be possible to create completely new markets instead of selecting from existing ones

(blue ocean strategy)

SWOT ANALYSIS

Strength

1. A very broad product portfolio of food and lifestyle (fashion,

home, entertainment) brands, with a special emphasis and brands

and quality

2. Extremely successful customer engagement programmes

3. Follows differentiation as a strategy rather than cost-leadership

4.Brand Imagery-perceived as an international, contemporary,

accessible, empathetic and trusted brand

5.Offers promotions carefully designed to suit the buying cycle and

shopping basket of the consumers

Weakness

1.Rising Operating costs

2. Limited Geographical presence

3.High bargaining power of suppliers across the huge product range

it deals in

Opportunity

1.Growth of organized retail sector in India which was till now

dominated by unorganized kirana(convenience) stores

2.Favourable Indian demographics- rising middle class, young

working population with higher disposable incomes who prefer to

shop under one roof and stock items

3.Expansion through large format stores across the country

Threats

1. Stringent Government regulations in the organized retail sector in

India

2.Competition from leading international retail giants such as Tesco,

Carrefour, Walmart due to approval of FDI in multi-retail

3.Competition from rising presence of e-commerce shopping sites

Competitors

1. Aditya Birla Retail Ltd.

2.Vishal Mega Mart

3.Big Bazaar

4. Reliance Retail

PESTLE MODEL

PESTLE stands for Political, Economic, Sociological, Technological, Legal and Environmental. Historically

the model was PEST; however Legal and Environmental were added on more recently as their importance

grew. The model describes the environmental influences on any organization and can be used to aid strategic

decision making. If you can understand what is going on in your environment, both internally and externally,

you will be able react and implement change more quickly and effectively providing a competitive edge.

PESTLE analysis provides useful data for understanding the ‘big picture’ of the environment in which an

organization is operating. Specifically a PESTLE analysis is a useful tool for understanding and identifying

risks as part of a risk assessment process. It is particularly important when assessing market risks (the need for

a product or service) and assessing growth or decline, and as such the position and direction for any business

or organization.

PESTLE forces are sometimes called the ‘drivers of change’ of any organization as they are the forces that

exist that cause the requirement for change in an organization. Failing to identify drivers of change can be

disastrous for an organization. For example a key Legal driver of change could be a change in legislation, if

this has a great effect on an organization but they fail to react early enough they could well be left behind by

competitors. PESTLE Analysis is a key tool in identifying these drivers of change.

Organizations exist within the micro (the environment around your organization where you have limited

influence and impact) and macro (the wider economy and markets where you have no control and can only

react) economic environments.

A PESTLE Analysis assists an organization to see where it sits in these environments and identify threats and

opportunities and to minimize and maximize their impact on the organization. PESTLE Analysis can help you

identify long terms trends and help you make informed decisions about the future and can be particularly

useful when entering a new market, country or environment allowing you to quickly change and adapt to the

external forces.

Using PESTLE Analysis to identify the drivers of change to your organization is only the first step. The next

step is to analyze their potential impact on your organization and really think through what they mean. The

assumptions should be continually tested and updated against the real life experiences within the environment.

There are many factors in the macro-environment that will affect the decisions of managers in any business.

Tax changes, new legislation, trade barriers, demographic change and government policy changes are some

examples of macro change.To analyse these factors managers categorise them using the PESTEL model. This

classification distinguishes between:

Political factors.

These refer to government policy such as the degree of intervention in the economy. What goods and services

does a government want to provide?To what extent does it believe in subsidising business?What are its

priorities in terms of business support?Political decisions can impact on many vital areas for business such as

the education of the workforce, health system and the quality of the infrastructure of the economy such as the

road and rail system.

Economic factors.

These include interest rates, taxation changes, economic growth, inflation and exchange rates.Government

intervention in the free marketBusiness cycle stage – prosperity, recession, recoveryDiscretionary

incomeUnemployment rateEconomic change can have major impacts – for example:Higher interest rates may

deter investment because it costs more to borrowA strong currency may make exporting more difficult

because it may raise the price in terms of foreign currencyInflation may provoke higher wage demands from

employees and raise costsHigher national income growth may boost demand for a firm’s products

Social factors.

Changes in social trends can impact on the demand for businesses’ products and services. Consider the

following which may impact. Demographics Class structure,Education,Culture,Entrepreneurial

spirit,Attitudes – sentiment, health, environmental consciousness, nutrition,Leisure issues

Technological factors.

New technologies create new products and new processes.iPads, phone apps, online gambling and high

definition TVs are all recent markets created by technological advances.Online shopping, bar coding and

computer aided design are all improvements to the way we do business as a result of better

technology.Technology can reduce costs, improve quality and lead to innovation.These developments can

benefit consumers as well as the organisations providing the products.

Environmental factors.

Environmental factors include the weather and climate change – greenhouse gas emissions, overall

environmental footprint.Changes in temperature can impact on many industries including farming, tourism

and insurance.With major climate changes occurring due to global warming and with greater environmental

awareness this external factor is becoming a significant issue for firms to consider.The growing desire to

protect the environment is having an impact on many industries such as the travel and transportation

industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general

move towards more environmentally friendly products and processes is affecting demand patterns and

creating business opportunities.Energy consumptionRecyclabilityClean water consumption

Legal factors.

These are related to the legal environment in which firms operate. In recent years there have been many

significant legal changes that have affected business emanating from the EU.The introduction of age

discrimination and disability discrimination legislation, the minimum wage and greater requirements for firms

to recycle are examples of relatively recent laws that affect businesses.Legal changes can affect a firm’s costs

(if new systems and procedures have to be developed) and demand (if the law affects the likelihood of

customers buying the good or using the service).Different categories of law include:

Consumer Laws.

These are designed to protect customers against unfair practices such as misleading descriptions of the

product

Competition Laws.

These are aimed at protecting small firms against unfair practices by larger firms and ensuring customers are

not exploited by firms with monopoly positions.

Employment Laws.

These cover areas such as redundancy, dismissal, working hours and minimum wages. They aim to protect

employees against the abuse of power by managers

Health and Safety Legislation.

These laws are aimed at ensuring the workplace is as safe as is reasonably practical. They cover issues such as

training, reporting accidents and the appropriate provision of safety training, systems and equipment.

More …

Listing PESTEL factors does not in itself tell you very much. You need to do is to think about which factors

are most likely to change and which ones will have the greatest impact.It is also important when using

PESTEL analysis to consider the level at which it is applied. For instance you may want to differentiate

between factors which are local, other which are national and finally those which are global.

For example, a retailer undertaking PESTEL analysis may consider

Local factors such as infrastructure, planning permission and local bye-laws

National factors such as economic growth rates, discretionary income

Global factors such as the general state of the world economy, currency rates, emergence of China and India

as global players. This version of PESTEL analysis is called LoNGPESTEL.

Mapping of PESTEL Model with Spencer’s/retail industry

1.Political :- The elections are going on and there is a possibility of change in government which is

encouraged by the rise in share prices also which will thus result in better oppurtunities in the industry.

Moreover the BJP is against FDI in retail and the state government has also said that FDI will not be adopted

in UTTAR PRADESH. Thus we can have a good market in the near future as competition from abroad will

not increase.

2.Economic:- Indian economic condition is in the phase of slowdown as of now but is likely to improve

soon. Thus the jobs will also increase in the near future and and as the government has main focus on

employement it is expected that employement laws will have relaxation plus they will encourage more businesses through lower interest rates.

3.Social :-as more and more people are getting good education and there is a regular drift of people from

rural to urban areas the need of goods is likely to increase with the increase in the living standards and thus

retail industry is likely to get a boom because people now prefer buying things from a single store rather than

visiting several stores to fulfill their requirements.

4. Technological :- e- retailing has started advancing with the presence of social media and the way

retail sector operated in changing and thus changes in technology will increase the sales manifold in coming

future.

5. Environmental :- retail industry has started concentrating on environment also through charging for

the use of polybags and also requesting customers to bring their own handbags . they have also started several

awareness programs to make customers aware of how to protect the environment.

6. Legal :- these factors are favourable as of now for the retail industry as the laws are not that stringent .

but however certain small changes in laws can result in high operating cost for the industry which should always be kept in consideration.

MARKETING MIX AT SPENCER’S

7 ‘P’

Process

Product

Price

Promotion Place

People

Physical

Evidence

1.Product :- the various sections of product at spencer’s consist of food and vegetables, home work and play, apparels,

fmcg, beverages, electronics and furniture goods.

2.Price:- the different types of pricing being implemented are

Value Pricing:- giving offers like buy 2 pepsi and get 1 free

Promotional Pricing Low interest financing :- providing emi’s at low interest rates on products of high value

Psychological discounting:- offers like“buy 1 tshirt at rs 299 and get 2 tshirts at an offer price of rs 499”

Special event pricing :- offers on different products at special occasions.

Differentiated Pricing Time pricing :- giving special prices on products on particular days.

Bundling :- getting two or more different products and selling them as a combined product

3. Place :- spencer’s is present in above 450 cities all over the country.

4.Promotion:-

5.People :- it consist of well trained staff, good appearance, empowered individuals who are given freedom to think out

• Coupon, discount, more of the product at normal price, gift with purchase, competition, and prizes, money back offer, exchange offer, special occasion.

Below the Line

Promotion

• Giving advertise in news paper, TV. Internet (own website which give online shopping service),

• partnership with vodafone, fm etc.

Above the Line

Promotion

of the box.

6. Physical Evidence :- the shelves are occupied with products to provide a display to customers.

7. Process :- process includes self service and picking the items and then getting them billed at the cash counter

through cash or through card.

Positioning

ORGANISATION VALUE AND CUSTOMER

VALUE

*High organization value

*Low customer value

Spencer’s

*High organization value

*High customer value

*Low organization value

*Low customer value

*Low organization value

*Low customer value

ANNEXURE 1

Format of the Exit Questionnaire

Customer Name:

Contact No.:

Email ID:

Do you want to get offer communication/promotion thru SMS or Mail ?

Yes No

Age

18-25years 26-35years 36-45years 46 & Above

Are you ''Self Employed or Employed''?

Self Employed Employed Others

Salary

10K-20K 20K- 30K 30K-50K 50 K & Above

How far do you live from the Store?

0-1 km 1-2kms 2-3kms 3 -5 Kms 5 kms & Above Location plz specify

Do you know, There is a promotion at Spencer's (Y/N) - If

no, then explain the promo .

Yes No

What is the promotion going on?

Did you like the Spencer's Offer/Promo ? Plz Rate Us

Poor Average Good Excelent

Were the offers on display clearly visible?

Yes No

Do you recall the Spencer's Promo Communications in

English ?

Yes No

Are you visiting Spencer's for the first time?

Yes No

If yes then have you made any purchase from Spencer's?

Yes No

If yes then will you shop from Spencer's again?

Yes No

Would you suggest others to Spencer's ?

Yes No

Where did you seen our Communication?

News Paper

Outdoor

Hoarding/Van

promotion TV/Radio Leaflet SMS

WOM

Which Newspaper have you seen the ad in ?

Times of India Dainik Jagran

Amar

Ujala Hindustan I-Next Others

ANNEXURE 2

18-25 years 16%

26-35 years 33%

36-45 years 46%

46 and above 5%

Age distribution

employed 53%

self employed

15%

others 32%

employement type

10k-20k 7%

20k-30k 46%

30k-50k 37%

50 k and above 10%

Salary

1-2 km 5%

2-3 km 16%

3-5 km 37%

5 km and above 39%

others 3%

yes 22%

no 78%

Awareness of Promotions

poor 3%

average 73%

good 23%

excellent 1%

Rating

no 88%

yes 12%

First visit

yes 97%

no 3%

Future Shopping

yes 59%

no 41%

Suggesting Others

newspaper 74%

sms 1%

outdoor 9%

wom 11%

tv/radio 5%

leaflets 0%

Medium of awareness

times of india 45%

dainik jagran 22%

amar ujala 4%

hindustan 28%

i-next 0%

others 1%

Newspaper Read

ANNEXURE 3

1) Does distance affect awareness of promotions ?

One-Way Analysis of Variance

Results

The ANOVA Procedure

Class Level Information

Class Levels Values

distance 5 1 2 3 4 5

Number of Observations Read 939

Number of Observations Used 939

Generated by the SAS System ('Local', W32_VSPRO) on May 14, 2014 at 09:25:00 AM

One-Way Analysis of Variance

Results

The ANOVA Procedure

Dependent Variable: info about promotions

Source DF Sum of Squares Mean Square F Value Pr > F

Model 4 5.9409611 1.4852403 9.02 <.0001

Error 934 153.7395501 0.1646034

Corrected Total 938 159.6805112

R-Square Coeff Var Root MSE info about promotions Mean

0.037205 186.7475 0.405713 0.217252

Source DF Anova SS Mean Square F Value Pr > F

distance 4 5.94096111 1.48524028 9.02 <.0001

Generated by the SAS System ('Local', W32_VSPRO) on May 14, 2014 at 09:25:00 AM

)Does age and salary affect customer satisfaction ?

Class Level Information

Class Levels Values

age 4 1 2 3 4

salary 4 1 2 3 4

Number of Observations Read 939

Number of Observations Used 939

Generated by the SAS System ('Local', W32_VSPRO) on May 15, 2014 at 09:42:23 AM

Linear Models

The GLM Procedure

Dependent Variable: rate spencers

Source DF Sum of Squares Mean Square F Value Pr > F

Model 14 6.6231965 0.4730855 1.83 0.0304

Error 924 238.7655149 0.2584042

Corrected Total 938 245.3887114

R-Square Coeff Var Root MSE rate spencers Mean

0.026991 22.77320 0.508335 2.232162

Source DF Type III SS Mean Square F Value Pr > F

age 3 2.08102384 0.69367461 2.68 0.0455

salary 3 2.21231017 0.73743672 2.85 0.0363

age*salary 8 4.14388962 0.51798620 2.00 0.0431

3) does age, salary, distance, employement affect your first time visit ?

Linear Models

The GLM Procedure

Class Level Information

Class Levels Values

distance 5 1 2 3 4 5

age 4 1 2 3 4

salary 4 1 2 3 4

employement 3 1 2 3

Number of Observations Read 939

Number of Observations Used 939

Generated by the SAS System ('Local', W32_VSPRO) on May 14, 2014 at 11:26:33 AM

Linear Models

The GLM Procedure

Dependent Variable: first visit

Source DF Sum of Squares Mean Square F Value Pr > F

Model 111 24.4423407 0.2202013 2.36 <.0001

Error 827 77.2275209 0.0933827

Corrected Total 938 101.6698616

R-Square Coeff Var Root MSE first visit Mean

0.240409 247.3665 0.305586 0.123536

Source DF Type III SS Mean Square F Value Pr > F

distance 4 0.50504617 0.12626154 1.35 0.2489

age 3 1.14509615 0.38169872 4.09 0.0068

distance*age 12 3.85174019 0.32097835 3.44 <.0001

salary 3 0.41442388 0.13814129 1.48 0.2187

employement 2 0.65409100 0.32704550 3.50 0.0306

distance*salary 12 1.63088775 0.13590731 1.46 0.1356

distance*employement 8 1.81162325 0.22645291 2.42 0.0136

age*salary 8 1.30734883 0.16341860 1.75 0.0835

age*employement 5 1.18114377 0.23622875 2.53 0.0277

salary*employement 6 0.28973524 0.04828921 0.52 0.7956

distance*age*salary 7 0.95353359 0.13621908 1.46 0.1786

distanc*age*employem 6 2.14133304 0.35688884 3.82 0.0009

distan*salary*employ 8 1.06257212 0.13282151 1.42 0.1831

age*salary*employeme 5 1.59926053 0.31985211 3.43 0.0045

dist*age*salar*emplo 2 0.03113242 0.01556621 0.17 0.8465

4) does salary and distance have an impact on your future buying ?

Linear Models

The GLM Procedure

Class Level Information

Class Levels Values

distance 5 1 2 3 4 5

salary 4 1 2 3 4

Number of Observations Read 939

Number of Observations Used 939

Generated by the SAS System ('Local', W32_VSPRO) on May 14, 2014 at 11:28:19 AM

Linear Models

The GLM Procedure

Dependent Variable: future shopping

Source DF Sum of Squares Mean Square F Value Pr > F

Model 19 0.90804566 0.04779188 1.95 0.0086

Error 919 22.47853581 0.02445978

Corrected Total 938 23.38658147

R-Square Coeff Var Root MSE future shopping Mean

0.038828 16.04984 0.156396 0.974441

Source DF Type III SS Mean Square F Value Pr > F

distance 4 0.16493090 0.04123273 1.69 0.1511

salary 3 0.18412763 0.06137588 2.51 0.0575

distance*salary 12 0.34141081 0.02845090 1.16 0.3053

5) does age, salary and distance in any way impact reaching of promotions ?

Linear Models

The GLM Procedure

Class Level Information

Class Levels Values

age 4 1 2 3 4

distance 5 1 2 3 4 5

salary 4 1 2 3 4

Number of Observations Read 939

Number of Observations Used 939

Generated by the SAS System ('Local', W32_VSPRO) on May 15, 2014 at 09:44:44 AM

Linear Models

The GLM Procedure

Dependent Variable: communication medium

Source DF Sum of Squares Mean Square F Value Pr > F

Model 60 359.688110 5.994802 2.61 <.0001

Error 878 2018.793253 2.299309

Corrected Total 938 2378.481363

R-Square Coeff Var Root MSE communication medium Mean

0.151226 85.31157 1.516347 1.777423

Source DF Type III SS Mean Square F Value Pr > F

age 3 19.1010521 6.3670174 2.77 0.0407

salary 3 1.9428058 0.6476019 0.28 0.8387

age*salary 8 102.6788401 12.8348550 5.58 <.0001

distance 4 11.5592553 2.8898138 1.26 0.2854

age*distance*salary 18 107.7413797 5.9856322 2.60 0.0003

age*distance 12 61.1420064 5.0951672 2.22 0.0096

distance*salary 12 55.1385267 4.5948772 2.00 0.0217

6) does age and salary affect reading a newspaper ?

Class Level Information

Class Levels Values

age 4 1 2 3 4

salary 4 1 2 3 4

Number of Observations Read 939

Number of Observations Used 939

Generated by the SAS System ('Local', W32_VSPRO) on May 15, 2014 at 09:45:26 AM

Linear Models

The GLM Procedure

Dependent Variable: newspaper read

Source DF Sum of Squares Mean Square F Value Pr > F

Model 14 40.639720 2.902837 1.72 0.0468

Error 924 1559.745797 1.688037

Corrected Total 938 1600.385517

R-Square Coeff Var Root MSE newspaper read Mean

0.025394 59.42478 1.299245 2.186368

Source DF Type III SS Mean Square F Value Pr > F

age 3 5.98341485 1.99447162 1.18 0.3156

salary 3 18.41127170 6.13709057 3.64 0.0126

age*salary 8 19.03425396 2.37928175 1.41 0.1883

7)discriminant analysis

Total Sample Size 939 DF Total 938

Variables 8 DF Within Classes 937

Classes 2 DF Between Classes 1

Number of Observations Read 939

Number of Observations Used 939

Class Level Information

future shopping Variable Name Frequency Weight Proportion

Prior Probability

0 0 24 24.0000 0.025559 0.500000

1 1 915 915.0000 0.974441 0.500000

Univariate Test Statistics

F Statistics, Num DF=1, Den DF=937

Variable

Total Standard Deviation

Pooled Standard Deviation

Between Standard Deviation R-Square

R-Square / (1-RSq) F Value Pr > F

age 0.8067 0.8025 0.1216 0.0114 0.0115 10.77 0.0011

salary 0.7663 0.7630 0.1058 0.0095 0.0096 9.03 0.0027

distance 0.9259 0.9256 0.0537 0.0017 0.0017 1.58 0.2091

employement 0.9002 0.9000 0.0488 0.0015 0.0015 1.38 0.2399

rate spencers 0.5115 0.5076 0.0913 0.0160 0.0162 15.20 0.0001

newspaper read 1.3062 1.3032 0.1386 0.0056 0.0057 5.31 0.0214

communication medium 1.5924 1.5914 0.1082 0.0023 0.0023 2.17 0.1409

info about promotions 0.4126 0.4125 0.0211 0.0013 0.0013 1.23 0.2674

Average R-Square

Unweighted 0.0061625

Weighted by Variance 0.004687

Multivariate Statistics and Exact F Statistics

S=1 M=3 N=464

Statistic Value F Value Num DF Den DF Pr > F

Wilks' Lambda 0.95675937 5.25 8 930 <.0001

Pillai's Trace 0.04324063 5.25 8 930 <.0001

Hotelling-Lawley Trace 0.04519488 5.25 8 930 <.0001

Roy's Greatest Root 0.04519488 5.25 8 930 <.0001

Linear Discriminant Function for future shopping

Variable 0 1

Constant -21.54865 -28.55533

age 2.95290 3.74949

salary 3.54472 4.17987

distance 2.62350 2.86617

employement 3.05684 3.65016

rate spencers 7.07864 8.70867

newspaper read 1.31654 0.96290

communication medium 0.62923 0.50870

info about promotions -2.77060 -3.38112

Number of Observations and Percent Classified into future shopping

From future shopping 0 1 Total

0 13

54.17

11

45.83

24

100.00

1 244

26.67

671

73.33

915

100.00

Total 257

27.37

682

72.63

939

100.00

Priors 0.5

0.5

Error Count Estimates for future shopping

0 1 Total

Rate 0.4583 0.2667 0.3625

Priors 0.5000 0.5000

Discriminant Analysis Results

Canonical

Correlation

Adjusted

Canonical

Correlation

Approximate

Standard

Error

Squared

Canonical

Correlation

Eigenvalues of Inv(E)*H = CanRsq/(1-CanRsq)

Test of H0: The canonical correlations in the current row and all that follow are zero

Eigenvalue

Difference

Proportion

Cumulative

Likelihood Ratio

Approximate F Value Num DF Den DF Pr > F

1 0.207944

0.190882

0.031239

0.043241

0.0452 1.0000 1.0000 0.95675937 5.25 8 930 <.0001

Raw Canonical Coefficients

Variable Can1

age 0.591969524

salary 0.472003976

distance 0.180334397

employement 0.440923533

rate spencers 1.211333886

newspaper read -0.262802830

communication medium -0.089575344

info about promotions -0.453703059

References

1. Www.Spencerretail.Com

2. Www.Wikipedia.Com

3. Primary Data Collection

4. Reports From Company

5.Philip Koutler’s “Principles Of Marketing” (13th

Edition )

6. Marketing Research books

7. SAS software

SUMMER INTERNSHIP PROGRAM

Student Feedback Form

Name:- Afzal Ishtiaq Usmani Enrollment no:-13BSPHH010027

Name of internship organization :- Spencer’s retail limited, Lucknow

City:- Lucknow

s.no Parameter Excellent Very

good

Good Fair Not

satisfactory

1. Support received from IBS on internship

recognition

2. Opportunity to learn from internship work in the

company

3. Learning benefits from the internship work

4. Placement oppurtunities

5. Recommend the company to future students

Date.:- Signature of student

Note:- annexures 4,5,6 and 7 are their in hard copy. Other than that all analysis parts are also included in hard copy.