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A STUDY ON STORE OPERATION AT SPENCERS RETAIL Ltd

With special reference to

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

POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT


Submitted by

SINGMOHANTHI VENKAT RAVIKIRAN


(ROLL NO-24077) Under the Esteemed guidance of

KIRAN.OMMI, MS (USA),
(Associate Professor)

INTEGRAL INSTITUTE OF ADVANCED MANAGEMENT


(Approved by AICTE, Ministry of HRD )
PLOT NO-10,SECTOR-7,M.V.P. COLONY

VISAKHAPATNAM - 530 017. (2010-2012)

DECLARATION

I hereby declare that this project work entitled A STUDY ON STORE OPERATION AT SPENCERS RETAIL Ltd. with special reference to Spencers Hyper Retail Ltd., Visakhapatnam submitted to IIAM, VISAKHAPATNAM in partial fulfillment for the award of Degree of POST GRADUATE DIPLOMA IN

BUSINESS MANAGEMENT is entirely based on my own study & is being submitted for the first time and it has not been submitted to any other University or Institution for any degree or diploma.

( SINGMOHANTHI VENKAT RAVIKIRAN)

INTEGRAL INSTITUTE OF ADVANCED MANAGEMENT (Approved by AICTE, Ministry of HRD) PLOT NO-10,SECTOR-7, M.V.P. COLONY,

VISAKHAPATNAM- 530 017

CERTIFICATE KIRAN OMMI MS. (USA)

This is to certify that the project report entitled A STUDY ON STORE OPERATION AT SPENCERS RETAIL Ltd. With special reference to Spencers

Hyper Retail Ltd., Visakhapatnam is being submitted by Mr. SINGMOHANTHI VENKAT RAVIKIRAN in partial fulfillment for the award of the Degree of PGDBM has been carried out by him under my guidance and supervision.

Place: VISAKHAPATNAM DATE:

KIRAN.OMMI (Project Guide )

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide KIRAN.OMMI , for his valuable guidance and cooperation throughout the project work and all other faculty members who helped me directly and indirectly for the successful completion of my project work. I am also thankful to our beloved Director Prof. B. PARVATHISWARA RAO for giving me the permission to carryout the project work. I also express my gratitude and heartfelt thanks to my company guide SRIKAR, Regional Marketing Manager, Spencers Hyper Retail Ltd., Visakhapatnam, who

extended their cooperation and timely support and providing necessary data for early completion of my project work. Finally I would like to express my sincere thanks to my parents and friends whose unremarkable encouragement had helped me throughout my educational endeavor and to do this project work.

(SINGMOHANTHI VENKAT RAVIKIRAN )

CONTENTS

CHAPTER 1

INTRODUCTION ABSTRACT INTRODUCTION TO THE PROJECT NEED FOR THE STUDY OBJECTIVE OF THE STUDY METHODOLOGY OF STUDY LIMITATION OF THE STUDY

CHAPTER 2

RETAIL INDUSTRY INTRODUCTION TO RETAILING CONCEPT OF RETAILING IMPORTANCE OF RETAILING RETAIL IN FUTURE TECHNOLOGY IN RETAIL

CHAPTER 3

COMPANY PROFILE RPG GROUP Ltd SPENCERS RETAIL Ltd

CHAPTER 4

STORE PROCESS STORE OPERATIONS DUTIES OF STORE MANAGER STAFFING

CHAPTER 5

FUNCTIONAL ASPECTS OF SUPPLY CHAIN MANAGEMENT SALES PROMOTION ADVERTISING VISUAL MERCHANDISE

CHAPTER 6

SUVERY REPORT FINDINGS SUGGESTIONS

BIBLIOGRAPHAY

CHAPTER- 1
Abstract: There are certain aspects that are vital to be observed in any retail store such as front-end operations, back-end operations, store layout, customer relation management, visual merchadising, inventory management, promotional activities.etc .This study explains all these aspects in particular and emphasizes for an effective way to the retailers to improve their ability to achieve the targeted goals and enhance the profitability of the organization. The project is aimed at the operations (business development) of a store engaged in retail business and studies its management, growth expansion program and other points. Business development is two types first is the income generation and by increasing the business of store. The marketing and business development team is responsible for business development of store and in turn of the organization. They should be creative and proactive to attain the task given .They must know how to take competitive advantage over the competitors. The business development plays an important role in retailing as the organized retailer operates at very thin margins. So any additional income to the store is advantage to the organization. Based on the information presented before on the aspects relating to concepts, objectives, purposes and /or importance .It is understood that the concept of business development is one of the important areas in retailing. Further it is also understand that based on the profile of the organization

presented in chapter-2, the organizations is one of the leading and important retail organizations at present.

INTRODUCTION Retail comes from the French word retailer which refers to cutting off, clip and divide in terms of tailoring (1365). It was first recorded as a noun with the meaning of a sale in small quantities in 1433. Its literal meaning was large quantities from the manufacturers or importers, either directly or through wholesaler, and then sells individual items or small quantities to the general public or end-user customer, usually in a shop, also called a store. Retailer is at the end of the supply chain. Marketers see retailing as a part of their overall distribution strategy. Retailing business is quite familiar in foreign countries and famous department stores like burdens and Macys , discount stores like the Gap, Zales jewelers and toys R us ,are all renewed companies having several chain branches in different countries countries and doing business internationally. In India through retailing business through chain shops is emerging as a new business, several retail stores like Reliance, BigBazar, Megamartetc have already enter in retail business and achieved phenomenal business growth. Due to Indias healthy domestic economical growth several multi-national companies are eying to enter the fray. As india is a potential market for retail business because of population. The same has already been proved in communications and auto sector. further , service providers like dentists , hotels and hair salons and on-line stores, likeAmazon.com,Bazee.com ,E-Bay also come under retailers. Many

business ,like Home depot, though they do business in both wholesale and retail business because they sell to consumers directly .Other business ,like The Limited are both manufactures and retailers . Regardless of other functions these business perform, they are retail.

NEED FOR THE STUDY

Retailing is evolving into a global, high-tech business. There are many organizations such as Wal-mart, Carrefour, Food Lion, reliance, Metroetc are pioneers in this retail sectored. Retailers are using sophisticated communication and information system to manage their business.

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

Increase in competition in retail had become obvious in this industry to maintain effective in store operations strategies.

Customers often arent aware of the sophisticated business decisions retail managers make and the technologies they use to provide goods and services.

OBJECTIVE OF THE STUDY

The objective of the project study to know To benchmark the various operations (business development) in retail store. To know how well the company policies and procedures are put into practice.

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

To identify the problems and suggest the required measures to improve the performance of the company.

METHODOLOGY OF THE STUDY The methodology of this project runs as stated below. The data was collected from 1. Primary sources 2. Secondary sources PRIMARY SOURCES: Observation method Interview method The primary information is collected by using a structured questionnaire and also interviews were held with some of the respondents and staff of the organizations. SECONDARY SOURCES: Secondary data was collected through annual reports of the organizations. The informations so collected is tabulated systematically and analyzed meaningfully by using various statically techniques wherever necessary. This helped a lot in making appropriate suggestions and drawing meaningful conclusions.

LIMITATION OF THE STUDY

Respondents busy schedule /routines did not give them enough time to respond properly. Fear of top management may have prohibited the employee to give their true opinion. Financial data could not be accessed due to companys confidential clause.

CHAPTER- 2

Introduction:

Indias retail market which is seen as THE GOLDMINE by global players has grabbed attention of the most developed nations. This is no wonder to the one who knows that the total Indian retail market is US $350bn. (16, 00,000 crore INR approx.) of which organized retailing is only around 3 percent i.e. US $8bn (36,000 crore INR approx).Retailing includes all activities involved in selling goods or services directly to final consumers for personal, non-business use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Retail is India's largest industry, accounting for over 10 per cent of the country's GDP and around eight per cent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. The presence of 15million kirana stores brings into light the very fact that the Indian retail industry is highly fragmented/ unorganized. Retailing in India is gradually inching its way toward becoming the next boom industry, org shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centers, multistoreyed malls and huge complexes offer shopping, entertainment and food all under one roof.

The future of Indian retailing may even witness the concept of 24 hour retailing. Even though this concept has been in existence in few retail segments like pharmaceuticals and fuel, it still remains to be a challenge for other segments like food and groceries, apparel etc to adopt this trend. Although the organized retailing in India is coming up in a big way, it cannot simply ignore the competition from the conventional stores because of various factors like reach, extending credit facility and other intangible factors like the human touch which are provided only by the conventional stores. Global Scenario: Retail stores constitute 20% of US GDP & are the 3 rd largest employer segment in USA. China on the other hand has attracted several global retailers in recent times. Retail sector employs 7% of the population in China. Major retailers like Wal-Mart & Carrefour have already entered the Chinese market. In the year 2003, Wal-Mart & Carrefour had sales of US $ 70.4 Crore & US $ 160 Crore respectively. The global retail industry has traveled a long way from a small beginning to an industry where the world wide retail sales is valued at $ 7 x 10 5 Crore. The top 200 retailers alone accounts for 30 % of the worldwide demand. Retail turnover in the EU is approximately Euros 2,00,000 Crore and the sector average growth is showing an upward pattern. The Asian economies (excluding Japan) are expected to grow at 6% consistently till 2005-06. On the global Retail stage, little has remained same over the last decade. One of the few similarities with today is that Wal-Mart was ranked the top retailer in the world then & it still holds that distinction. Other than Wal-Mart's dominance, there's a little about today's environment that looks like the mid-1990s. The global economy has changed, consumer demand

has shifted & retailers' operating systems today are infused with far more technology than was the case six years ago.

Scenario of Retailing in India Retailing is the most active and attractive sector of last decade. While the retailing industry itself has been present since ages in our country, it is only the recent past that it has witnessed so much dynamism. The emergence of retailing in India has more to do with the increased p of modern supply and distributions solution. Indian retailing today is at an interesting crossroads. The retail sales are at the highest point in history and new technologies are improving retail productivity. though there are many opportunities to start a new retail business, retailers are facing numerous challenges.urchasing power of buyers, especially post-liberalization, increase in product variety, and increase in economies of scale, with the aid of modern supply and distributions solution.

The Facts Retailing in more developed countries is big business and better organized that what it is in India. Report published by McKinsey & Co. in partnership with Confederation of Indian Industry (CII) states that the global retail business is worth a staggering retailing to unorganized in US is around 80 to 20, in Europe it is 70 to 30, while in Asia it comes to around 20 to 80. In India the scenario is quiet unique, organized retailing accounts for a mere 5% of the total retail sector. Although there are around 5 million

retail stores in India, 90% of these have a floor space area of 500 sq.ft. or less. The emergence of organized retailing in IUS $ 7 trillion. The ratio of organized The emergence of organized retailing in India is a recent phenomenon and is concentrated in the top 20 urban towns and cities.

Traditionally retailing in India can be traced to The emergence of the neighborhood Kirana stores catering to the convenience of the consumers Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission 1980s experienced slow change as India began to open up economy. Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains Later Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. Post 1995 onwards saw an emergence of shopping centers, mainly in urban areas, with facilities like car parking targeted to provide a complete destination experience for all segments of society Emergence of hyper and super markets trying to provide customer with 3 Vs - Value, Variety and Volume Expanding target consumer segment: The Sachet revolution -

example of reaching to the bottom of the pyramid.

Indian retailing key challenges: 1) LOCATION: "Right Place, Right choice" Location is the most important ingredient for any business that relies on customers, and is typically the prime consideration in a customers store choice. Locations decisions are harder to change because retailers have to either make sustainable investments to buy and develop real estate or commit to long term lease with developers. When formulating decision about where to locate, the retailer must refer to the strategic plan: Investigate alternative trading areas .Determine the type of desirable store location Evaluate alternative specific store sites 2) MERCHANDISE: The primary goal of the most retailers is to sell the right kind of merchandise and nothing is more central to the strategic thrust of the retailing firm. Merchandising consists of activities involved in acquiring particular goods and services and making them available at a place, time and quantity that enable the retailer to reach its goals. Merchandising is perhaps, the most important function for any retail organization, as it decides what finally goes on shelf of the store. 3)PRICING: Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and its interaction with other retailing elements. The importance of pricing decisions is growing because today's customers are looking for good value when they buy merchandise and services. Price is the easiest and quickest variable to change.

4) TARGET AUDIENCE: "Consumer the prime mover""Consumer Pull", however, seems to be the most important driving factor behind the sustenance of the industry. The purchasing power of the customers has increased to a great extent, with the influencing the retail industry to a great extent, a variety of other factors also seem to fuel the retailing boom. 5) SCALE OF OPERATIONS: Scale of operations includes all the supply chain activities, which are carried out in the business. It is one of the challenges that the Indian retailers are facing. The cost of business operations is very high in India.

PRESENT INDIAN SCENARIO: Unorganized market: Rs. 583,000 crores Organized market: Rs.5, 000 crores 5X growth in organized retailing between 2000-2005 Over 4,000 new modern Outlets in the last 3 years Over 5,000,000 sq. ft. of mall space under development The top 3 modern retailers control over 750,000 sq. ft. of retail space Over 400,000 shoppers walk through their doors every week Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2005-06 Major players: Detailing reasons why Indian organized retail is at the brink of revolution, the IMAGES-KSA report says that the last few years have seen rapid transformation in many areas and the setting of scalable and profitable

retail models across categories. Indian consumers are rapidly evolving and accepting modern formats overwhelmingly. Retail Space is no more a constraint for growth. India is on the radar of Global Retailers and suppliers / brands worldwide are willing to partner with retailers here. Further, large Indian corporate groups like Tata, Reliance, Raheja, ITC, Bombay Dyeing, Murugappa & Piramal Groups etc and also foreign investors and private equity players are firming up plans to identify investment opportunities in the Indian retail sector. The quantum of investments is likely to skyrocket as the inherent attractiveness of the segment lures more and more investors to earn large profits. Investments into the sector are estimated at INR 2000 - 2500 Crore in the next 2-3 years, and over INR 20,000 Crore by end of 2010.

Few of India's top retailers are: 1. Big Bazaar-Pantaloons: Big Bazaar, a division of Pantaloon Retail (India) Ltd is already India's biggest retailer. 2. Food World: Food World in India is an alliance between the RPG group in India with Dairy Farm International of the Jar dine Matheson Group.

3. Trinethra:

It is a supermarket chain that has predominant presence in the southern state of Andhra Pradesh. Their turnover was Rs 78.8 Crore for the year 2002-03.

4. Apna Bazaar: It is a Rs 140-crore consumer co-operative society with a customer base of over 12 lakh, plans to cater to an upwardly mobile urban population. 5. Margin Free: It is a Kerala based discount store, which is uniformly spread across 240 Margin Free franchisees in Kerala, Tamil Nadu and Karnataka. Wholesale trading is another area, which has potential for rapid growth. German giant Metro AG and South African Shoprite Holdings have already made headway in this segment by setting up stores selling merchandise on a wholesale basis in Bangalore and Mumbai respectively. These new-format cash-and-carry stores attract large volumes from a sizeable number of retailers who do not have to maintain relationships with multiple suppliers for all their needs

INDIAN RETAIL IS MOVING INTO SECOND GEAR: 1) FIRST GEAR: (Create awareness)

New retailers driving awareness High degree of fragmentation Real estate groups starting retail chains Consumer expecting 'value for money' as core value 2) SECOND GEAR:(Meet customer expectations)

Consumer-driven Emergence of pure retailers

3) THIRD GEAR: management

(Back end management)

Vendor partnership Category Stock turns Channel synchronization Consumer acquisitio Customer relation's management 4) FOURTH GEAR:(Consolidation) Aggressive rollout Organized retail acquitting significant share Organized retail acquitting significant share Beginning of cross-border movement Mergers and acquisitions Merchandise: food grocery to stationery. Space occupied: 50000 Sq .ft. and above. SKUs: 20000-30000. Example: Pantaloon retails Big Bazaar, RPGs Spencers (Giant). clothing to spots goods to books to

RETAIL FORMATS: Hypermarket: It is the largest format in Indian retail so far is a one stop shop for the modern Indian shopper Merchandise: food grocery to clothing to spots goods to books to stationery. Space occupied: 50000 Sq .ft. and above. SKUs: 20000-30000. Example: Pantaloon retails Big Bazaar, RPGs Spencers (Giant). Supermarket: A subdued version of a hypermarket. Merchandise: Almost similar to that of a hypermarket but in relatively smaller proposition. Space occupied: 5000 Sq. ft. or more. SKUs: Around 10000. Example: Nilgiris, Apna Bazaar, Trinethra. Convenience store: A subdued version of a supermarket. Merchandise: Groceries are predominantly sold.

Space occupied: Around 500 Sq. ft. to 3000 Sq. ft. Example: stores located at the corners of the streets, Reliance Retails Fresh and Select.

Department store: A retail establishment which specializes in selling a wide range of products without a single prominent merchandise line and is usually a part of a retail chain. Merchandise: Apparel, household accessories, cosmetics, gifts etc. pace occupied: Around 10000 Sq. ft. 30000 Sq. ft. Example: Landmark Groups Lifestyle, Trent India Ltd.s Westside. Discount store: Standard merchandise sold at lower prices with lower margins and higher volumes Merchandise: A variety of perishable/ non perishable goods. Example: Viswapriya Groups Subiksha, Piramals TruMart. Specialty store: It consists of a narrow product line with deep assortment. Merchandise: Depends on the stores Example: Bata store deals only with footwear, RPGs Music World, Crossword.

MBOs: Multi Brand outlets, also known as Category Killers. These usually do well in busy market places and Metros Merchandise: Offers several brads across a single product category.

Kirana stores: The smallest retail formats which are the highest in number (15 million approx.) in India. Merchandise: Offers several brads across a single product category. The smallest retail formats : which are the highest in number (15 million approx.) in India. Merchandise: Mostly food and groceries Recent Trends : Retailing in India is witnessing a huge revamping exercise as can be seen in the graph India is rated the fifth most attractive emerging retail market: a potential goldmine. Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion As per a report by KPMG the annual growth of department stores is estimated at 24% Ranked second in a Global Retail Development Index of 30 developing countries drawn up by contd. AT Kearney.

Traditionally three factors have plagued the retail industry: Unorganized: Vast majority of the twelve million stores are small "father and son" outlets

Fragmented: Mostly small individually owned businesses, average size of outlet equals 50 s.q. ft. Though India has the highest number of retail outlets per capita in the world, the retail space per capita at 2 s.q. ft per person is amongst the lowest. Rural bias: Nearly two thirds of the stores are located in rural areas. Rural retail industry has typically two forms: "Haats" and Melas". Haats are the weekly markets : serve groups of 10-50 villages and sell day-to-day necessities. Melas are larger in size and more sophisticated in terms of the goods sold (like TVs) Recent changes: Experimentation with formats: Retailing in India is still evolving and the sector is witnessing a series of experiments across the country with new formats being tested out. Ex. Quasi-mall, sub-urban discount stores,Cash and carry etc.

Store design: Biggest challenge for organised retailing to create a customer-pull environment that increases the amount of impulse shopping. Research shows that the chances of senses dictating sales are upto 10-15%. Retail chains like MusicWorld, Baristas, Piramyd and Globus are laying major emphasis & investing heavily in store design.

Emergence of discount stores: They are expected to spearhead the organised retailing revolution. Stores trying to emulate the model of Wal-Mart. Unorganized retailing is getting organized: To meet the challenges of organized retailing such as large cineplexes, and malls, which are backed by the corporate house such as 'Ansals' and 'PVR the unorganized sector is getting organized. 25 stores in Delhi under the banner of Provision mart are joining hands to combine monthly buying. Bombay Bazaar and Efoodmart formed which are aggregations of Karanas.

Recent Trends contd. Multiple drivers leading to a consumption boom: Favorable demographics Growth in income Increasing population of women Raising aspirations : Value added goods sales Food and apparel retailing key drivers of growth

Organized retailing in India has been largely an urban phenomenon with affluent classes and growing number of double-income households. More successful in cities in the south and west of India. Reasons range from differences in consumer buying behavior to cost of real estate and taxation laws. Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most categories of consumption ITC is experimenting with retailing through its e-Choupal and Choupal Sagar rural hypermarkets. HLL is using its Project Shakti initiative leveraging women selfhelp groups to explore the rural market. Mahamaza is leveraging technology and network marketing concepts to act as an aggregator and serve the rural markets. IT is a tool that has been used by retailers ranging from Amazon.com to eBay to radically change buying behavior across the globe. e-tailing slowly making its presence felt. Companies using their own web portal or tie-sups with horizontal players like Rediff.com and Indiatimes.com to offer products on the web. Trends in Present Retail Market: New Product Categories: For a long time, the corner grocery store was the only choice available to the consumer, especially in the urban areas. This is slowly giving way to international formats of retailing. The traditional food and grocery segment has seen the emergence of supermarkets/grocery chains (Food World, Nilgiris, Apna Bazaar), convenience stores (ConveniO, HP Speedmart) and fast-food chains (McDonalds, Dominos).

It is the non-food segment, however that foray has been made into a variety of new sectors. These include lifestyle/fashion segments (Shoppers' Stop, Globus, LifeStyle, Westside), apparel/accessories

(Pantaloon, Levis, Reebok), books/music/gifts (Archies, MusicWorld, Crosswords, Landmark), appliances and consumer durables (Viveks, Jainsons, Vasant & Co.), drugs and pharmacy (Health and Glow, Apollo).

Increasing competition in the retail market: New entrants such as Reliance, Bharti Enterprises and the AV Birla group will compete against well-established retailers, such as Pantaloon Retail, Shoppers stop, Trent, Spencers and Lifestyle stores. Foreign retailers are keenly evaluating the Indian market and identifying partners to forge an alliance with in areas currently permitted by regulations. With an estimated initial investment of USD 750 million, Reliance is planning to launch a nationwide chain of hypermarts, supermarkets, discount stores, department stores, conven stores. These 5,500 stores will be located in 800 cities and towns in India. Increase in Private Labels: With the emergence of organized retail and modern retail formats, private labels have been gaining significance. They enhance the profitability levels of product categories, increase retailers negotiation powers and create consumer loyalty. More retailers are introducing their own brands in all categories including Food & Groceries, apparel, accessories, footwear. These own brands also do not have to manage intermediaries since retailers maintain oversight of the supply chain.

The label penetration is in a huge rise. Private Label penetration has been on a rise. It is mainly growing among FMCG products in most supermarkets with groceries accounting for 45.9% Expanding to Tier II and III cities: Indian retailers are planning to extend operations into Tier II and Tier III cities as heightened IT offshoring activity in these locations have increased consumers disposable income. The population in these cities is typically well educated and willing to purchase goods and services. Some major retailers, like Globus, Reliance Retail and Pantaloon, have already begun building a retail presence in Tier III cities before many retailers have finalized their Tier II retail operations. Foray into Retail Agri-Business: Indias most prestigious business houses and global retailers are planning to enter retail agri-business. Market entrants plan to invest in the entire value chain, moving goods from the farm to the fridge at home. Viewed as Indias next Sunrise Sector, retailers are employing contract farming as a means of boosting their ventures. Contract farming enables farmers to a.ccess land, manpower and farming skill without having to purchase land. Of the total Cultivable land of 400 million acres in India, contract farming represents 7 million acres thus indicating a tremendous opportunity. For pure corporate contracts between farmers and companies, only 2,00,000 acres are used. Experimenting with formats: Selecting the right retail format is essential in modern retailing. The difference between urban and rural customers is one of the reasons why multiple formats are required in India. Local conditions and insights into

buying-behaviour shape the format choice. No single format will be suitable or an all India strategy and selecting the relevant format is the key success factor.

Technology in Retail: Over the years as the consumer demand increased and the retailers geared up to meet this increase, technology evolved rapidly to support this growth. The hardware and software tools that have now become almost essential for retailing can be into 2 broad categories. Customer Interfacing Systems: Bar Coding and Scanners Point of sale systems use scanners and bar coding to identify an item, use pre-stored data to calculate the cost and generate the total bill for a client. Tunnel Scanning is a new concept where the consumer pushes the full shopping cart through an electronic gate to the point of sale In a matter of seconds, the items in the cart are hit with laser beams and scanned. All that the consumer has to do is to pay for the goods. Payment Payment through credit cards has become quite widespread and this enables a fast and easy payment process. Electronic cheque conversion, a recent development in this area, processes a cheque electronically by transmitting transaction information to the retailer and

consumer's bank. Rather than manually process a cheque, the retailer voids it and hands it back to the consumer along with a receipt, having digitally captured and stored the image of the cheque, which makes the process very fast..

Internet Internet is also rapidly evolving as a customer interface, removing the need of a consumer physically visiting the store. Operation Support Systems: ERP System Various ERP vendors have developed retail-specific systems which help in integrating all the functions from warehousing to distribution, front and back office store systems and merchandising. An integrated supply chain helps the retailer in maintaining his stocks, getting his supplies on time, preventing stock-outs and thus reducing his costs, while servicing the customer better. CRM Systems The rise of loyalty programs, mail order and the Internet has provided retailers with real access to consumer data. Data wareho This, along with the various available CRM (Customer Relationship Management) Systems, allows the retailers to study the purchase behavior of consumers in detail and grow the value of individual consumers to their businesses.

FUTURE TREND: SCOPE OF 24hr RETAILING: The concept of 24hr. retailing in India has been present only in very limited formats like the pharmaceuticals (Apollo) and fuel retail outlets (H.P, Reliance etc.) and the other retail formats used to operate only till the early hours of the night. But because of the changing lifestyles and the

buying habits of the consumers the retailers have been extending their operating hours till late nights. Most of the Indian retail formats though capable of operating their formats round the clock do not choose to do so because of the non feasibility of the idea at present taking in conjunction the customers readiness. For instance if any of the hyper market or supermarket is functioning during the night the retailer has to bear the extra costs of electricity, labor and maintenance if the number of footfalls are less very low during the late nights which otherwise would be profitable to him. Anyways, the shopping time of the consu India most of the retailing is all about food and groceries. It might not be a rational prediction that all the consumers will step into the retail outlet at midnights to buy food and groceries. This problem can be overcome by implementing the idea in places which have a floating population even during the nights like railway stations and bus stations. However with the upcoming culture of malls and the changing lifestyles of the people one can design a small part of the store or a mall for a new 24/7 retail format which consists of the essential products like medicines, fruits and vegetables, groceries and some other FMCG products and test market it. Once if the sales start showing

some consistent positive figures and if the crowd increases then the store can come in a bigger way to reach out to their customers. The other option for trying the concept of 24hr retailing is that the retailer can have a mobile s to happen. outlet which can place itself in the areas which have substantial night traffic for the sale And once the people are to the 24hr shopping then the retail plans can be altered accordingly.

Rural Vs Urban Retail Trends: The urban retail market has been embracing various new formats and the malls turned out to be the trend setters by promising the concept of shoppertainment. The trends in the rural market also have been changing from the old Haats and Melas to the rural malls like Chaupal Sagar launched by ITC, DCM Shriram Groups one-stop shopping destination called Hariyali Bazaar, Godrej groups agri store Adhar etc. India's largely rural population has also caught the eye of retailers looking for new areas of growth. Chaupal Sagar : ITC launched the country's first rural mall Chaupal Sagar' offering a diverse product range from FMCG to electronics appliance to automobiles, attempting to provide farmers a one-stop destination for all of their needs. Hariyali Bazaar : There has been yet another initiative by the DCM Sriram Group called the Hariyali Bazaar' that has initially started off by providing farm

related inputs and services but plans to introduce the complete shopping basket in due course. Other corporate bodies include Escorts, and Tata Chemicals (with Tata Kisan Sansar) setting up agri-stores to provide products/services targeted at the farmer in order to tap the vast rural market.

Adhar: Commenting on the Rural Retailing chapter in INDIA RETAIL REPORT 2005, Mr. Adi B. Godrej, Chairman, The Godrej Group (India's one of the leading corporate majors) said that his group had also launched the concept of agri-stores named 'Adhaar', which served as one-stop shops for farmers selling agricultural products such as fertilisers providing farmers knowledge on how to effectively utilise these products. "There are 8 stores already operating in Maharashtra and Gujarat and further expansion is very much on the cards. He added. The group plans to take its recently launched retail concept Nature's Basket - to newer cities steadily. Godrej Group's Agro and Food division, Godrej Agrovet Ltd. (GAVL) operates the format, selling a variety of vegetables, fruits and herbs - both local and exotic thereby introducing the concept of 'farm-to-plate' to urbanites. Godrej plans to open four more Nature's Basket stores in Mumbai before taking them national. Setting up cost of a store is about INR 5-10 million and per stores sales are expected in the range of INR 30- Rs 50 million a year. Interestingly, the world's largest corporation, Wal-mart, also had its roots in rural America. Unlike many other retailers who started from

urban centres and then trickled down to rural areas, Wal-mart had started from rural areas and then came closer to cities over a period of time. Many more such concepts are likely to be tested in the future as marketers and retailer The IMAGES KSA Report avers that these concepts are likely to go a long way in bringing a huge untapped population within the purview of organized retailing, thereby, increasing the size of the total markets begin to acknowledge that the rural consumer is more than a poor cousin' of the urban counterpart.

Urban Trends: The urban retailing has been experimenting with many formats like the supermarkets, hypermarkets, specialty stores, multi branded outlets etc. and of latest it seems to be embracing the trend of mall culture. It is a rich man's world too, with multi-screen cinemas, restaurants, games and branded shops - well out of the reach of many of the country's one billion people. But India's middle-classes, widely travelled and with deep pockets, are flocking to malls. SWOT ANALYSIS: A SWOT analysis of the Indian organized retail industry is presented below: Strength: Retailing is a "Technology-intensive" industry. It is technology that will help the organized retailers to score over the unorganized retailers. Successful organized retailers today work closely with their vendors to predict consumer demand, shorten lead times, reduce inventory holding and ultimately save cost. Example: Wal-Mart

pioneered the concept of building competitive advantage through distribution & information systems in the retailing industry. They introduced two innovative logistics techniques cross-docking and EDI (electronic data interchange) On an average a super market stocks up to 5000 SKU's against a few hundred stocked with an average unorganized retailer. This will provide variety in products (required breadth & depth for consumers)

As a consequence of high volumes, procurement will be direct from the Manufacturer. Hence, merchandise can be offered at lower costs. Weakness: Less Conversion level: Despite high footfalls, the conversion ratio has been very low in the retail outlets in a mall as compared to the standalone counter parts. It is seen that actual conversions of footfall into sales for a mall outlet is approximately 20-25%. On the other hand, a high street store of retail chain has an average conversion of about 50-60%. As a result, a stand-alone store has a ROI (return on investment) of 25-30%; in contrast the retail majors are experiencing a ROI of 8-10% Customer Loyalty : Retail chains are yet to settle down with the proper

merchandise mix for the mall outlets. Since the stand-alone outlets were established long time back, so they have stabilized in terms of footfalls & merchandise mix and thus have a higher customer loyalty base.

Opportunity: The Indian middle class is already 30 Crore & is projected to grow to over 60 Crore by 2010 making India one of the largest consumer markets of the world. The IMAGES-KSA projections indicate that by 2015, India will have over 55 Crore people under the age of 20 - reflecting the enormous opportunities possible in the kids and teens retailing segment Organized retail is only 3% of the total retailing market in India. It is estimated to grow at the rate of 25-30% p.a. and reach INR 1,00,000 Crore by 2010. . Rural Retailing: India's huge rural population has caught the eye of the retailers looking for new areas of growth. ITC launched India's first rural mall "Chaupal Saga" offering a diverse range of products from FMCG to electronic goods to automobiles, attempting to provide farmers a one-stop destination for all their needs." Hariyali Bazar" is started by DCM Sriram group which provides farm related inputs & services. The Godrej group has launched the concept of 'agri-stores' named "Adhaar" which offers agricultural products such as fertilizers & animal feed along with the

required knowledge for effective use of the same to the farmers. Pepsi on the other hand is experimenting with the farmers of Punjab for growing the right quality of tomato for its tomato purees & pastes.

Threats: If the unorganized retailers are put together, they are parallel to a large supermarket with no or little overheads, high degree of flexibility in merchandise, display, prices and turnover. Shopping culture has not developed in India as yet. Even now malls are just a place to hang around with family and friends and largely confined to window-shopping. Cultural Variation leads to variation in merchandise in India at different geographical locations.

Challenges in Retail: The following are the key areas that may pose a threat to those retail companies that ignore the impacts of giving less importance to manage their demand and supply: Forecasting and Inventory Management for JIT replenishments of products. Peak Season Demand Handling. Order Management in case of retailers with multiple outlets. Warehouse Management in case of multiple outlets.

India vs. World Indian retail is fragmented with over 12 million outlets operating in the country. This is in comparison to 0.9 million outlets in USA, catering to more than 13 times of the total retail market size as compared to India India has the highest number of outlets per capita in the world widely spread retail network but with the lowest per capita retail space (@ 2 sq. ft. per person) Annual turnover of Wal-Mart (Sales in 2001 were $219 billion) is higher than the size of Indian retail industry. Almost 100 times more than the turnover of HLL (India's largest FMCG company). Wal-Mart - over 4,800 stores (over 47 million square meters) where as none of India's large format store (Shoppers' Stop, Westside, Lifestyle) can compare. The sales per hour of $22 million are incomparable to any retailer in the world. Number of employees in Wal-Mart are about 1.3 million where as the entire Indian retail industry employs about three million people. One-day sales record at Wal-Mart (11/23/01) $1.25 billion - roughly two third of HLL's annual turnover.

Developed economies like the U.S. employ between 10 and 11 percent of their workforce in retailing (against 7 percent employed in India today).

60% of retailers in India feel that the multiple format approach will be successful here whereas in US 34 of the fastest-growing 50 retailers have just one format Inventory turns ratio: measures efficiency of operations. The U.S. retail sector has an average inventory turns ratio of about 18. Many Indian retailers KPMG surveyed have inventory turns levels between 4 and 10. Global best-practice retailers can achieve more than 95 percent availability of all SKUs on the retail shelves (translating into a stockout level of less than 5 %).The stock-out levels among Indian retailers surveyed ranged from 5 to 15 percent. Future direction: Positives AT Kearney has estimated Indias total retail market at US$ 202.6 billion which is expected to grow at a compounded 30 per cent over the next five years. With the organised retail segment growing at the rate of 25-30 per cent per annum, revenues from the sector are expected to triple from the current US$ 7.7 billion to US$ 24 billion by 2010. The share of modern retail is likely to grow from its current 2 per cent to 15-20 percent over the next decade

Over next two years India will see several Indian retail businesses attaining a critical mass as growth in the industry picks up momentum driven by two key factors: Availability of quality real estate and mall management practices Consumer preference for shopping in new environments Wal-Mart : huge plans for India. Moving a senior official from its headquarters in Bentonville, Arkansas, to head its market research and business development functions pertaining to its retail plans in India. New York-based high-end fashion retailer Saks Fifth Avenue has tied up with realty major DLF Properties to set up shop in a mall in New Delhi. Tommy Hilfiger, retailer of apparels, expects to open one store each in Delhi, Ahmedabad, Lucknow and Bangalore in the next four months. Future direction: Concerns 68 million square feet of mall space is expected to be available by end of 2007, which might lead to over-capacity of malls Lack of differentiation among the malls that are coming up. One option may be to look at specialization. Poor inventory turns and stock availability measures - retailers clearly need to augment their operations. Operations of retailers and suppliers are not integrated. Efficient replenishment practices practiced in the Indian auto and autocomponent industry can be leveraged to implement efficient supply chain management techniques.

Supplier maturity, in terms of adherence to delivery schedules and delivering the quantity ordered, is an issue Sales tax laws - lead to retailers having state-level procurement and storage leads to Indian retailers having higher inventories. VAT has helped alleviate this a bit. Increased adoption of IT and shrinkage management will be a critical area.

CHAPTER- 3

RPG ENTERPRISES An RPG enterprise is not only one of the biggest, but also one of the most respected names in the industry. A US$ 3.4 billion business conglomerate, RPG is one of the powerhouses that drive Indian Industry. With more than 20 companies, it spans 7 business sectors, Retail, Technology, Entertainment, Power, Transmission, Tyres and Specialties- all under the RPG banner. Even with such a diverse portfolio, the fact that RPG Enterprises has had nothing but only unrivalled success in all these sectors, speak very highly of the efficiency and vision with which the company is run. Over the years RPG Enterprises has built a huge reservoir of trust and goodwill among the people of India. We at 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

QUALITY: For RPG quality determines success. Continuous process

improvements are carried out to ensure complete satisfaction of customer and market requirements. RPG ORGANIZATIONAL EXCELLENCE: RPG Organizational Excellence is an effort toward achieving excellence by enhancing performances through clarity of purpose, meticulous planning, tenacious execution and passion to excel. RPG ORGANIZATIONAL APPROACH : RPG Organizational Approach translates the 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.

RPG ORGANIZATIONAL EXCELLENCE MODEL : RPG has always been among the forerunners in the area of quality improvement. The group set up the RPG Organizational Excellence Center in 1998 (then know as the Corporate Quality Center), to enhance quality standards within all RPG group companies. To match world standards of excellence the center inducted the Organizational Excellence Model, drawn from the EFQM framework of excellence and in alignment with the CII EXIM Business Excellence Model. The model works in three distinct phases... Introspection: Establishing quality systems, processes and human responses across the group companies

Externalizing: proactively studying customers, markets and societal issues Benchmarking: applying a relevant global excellence model

RPG ORGANIZATIONAL EXCELLENCE APPROACH:

Web site: http://www.rpggroup.com/quality1.html RPG has been encouraging continuous improvement initiatives in all the group companies, through an effective 3-point program: Six Sigma, TPM, and Continuous Improvement. The quality drive has been promoted through QC, CFT, and 5S systems. Many of the group companies have successfully applied the quality improvement program, implementing policy deployment through the Business Balanced Score Card (BBSC).

The group companies have initiated the excellence drive by implementing TQM strategies like 5S of housekeeping, and structured problem solving CFT, Kaizen etc. These initiatives help in embedding awareness of quality in all organizational processes; leading to employee involvement, a culture of continuous improvement and definite changes in QCD.

PG ORGANIZATIONAL EXCELLENCE AWARDS

The RPG Organizational Excellence Awards were introduced in 1999, to encourage higher levels of business excellence among the 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, Policies and processes, and its organization-wide deployment.

MANUFACTURING CATEGORY

Year

Winner

Certificate of Merit

2000 2001 2002 2003 2004 2005

Raychem RPG RPG Cables, Mysore Cetex Petrochemicals CEAT Limited CEAT Limited Raychem RPG

RPG Cables, Mysore Cetex Petrochemicals, RPG Life Sciences RPG Cables, Thane KEC Butibori International,

Raychem RPG CEAT Limited

2006 2007

CEAT Limited Raychem RPG

Raychem RPG CEAT Limited

SERVICE CATEGORY

Year 2000 2001 2002 2003 2004 2005

Winner Spencers Travel RPG Cellular Services RPG Cellular Services CEAT Limited CEAT Limited CESC Limited CESC Limited CESC Limited

Certificate of Merit Zensar Technologies Zensar Technologies Zensar Technologies Spencers Travel Spencers Travel Music Entertainment Ltd N/A KEC, Dhabi Projects, Abu World

2006 2007

Website:

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

Vision: Leadership in profitability and revenue growth in our chosen businesses. Being a customer-centric organization and Being the most exciting workplace.

Values: 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. 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 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.

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).

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 your daily needs but also stocks home care products; personal care products, Bakery, Chilled and frozen food; Baby care besides groceries & staples, fresh fruits and vegetables. In effect we have everything to make sure your household runs smoothly all month long. 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. 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-inChief, Eastern Naval Command and Mrs. Renu Bansal. The store is spread over 60,000 sq. ft and provides ample parking more than 60 cars and two wheelers in the premises. The store would have 25,000 plus products across staples, ready foods, instant foods, beverages, health & beauty products, dairy & frozen foods, garments, electrical goods, general merchandise and other household products. The store would also have a Bakery, Music World, 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. The hypermarket business was started in 2001. The store at Vizag will be in association with Phoenix Logistics Pvt. Ltd. The lowest price, in a format that is air-conditioned, cleans, comfortable, well stocked and laid-out. The spacious layout allows for wide aisles within the store for moving around and ample space outside for parking and loading.

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

The Hypermarket is a large format store that aims at retail consolidation by being a single point contact between the brand owners and customers. This is one of the fastest growing formats in Asia. A number of international chains are investing in these stores. Hypermarkets have a very wide range of product categories, of which the core and essential range is in groceries, food, home needs, fresh food, garments and consumer durables. All these are sold at low prices, which is possible because of the economies of large-scale operations. The Hypermarket format offers several advantages to all the parties involved in the process.

SPENCER'S PRDUCTS

Spencer's retail offers the complete gamut of products & durables ranging from bread to bed covers; from toothpaste to television. Our product profile includes the following:

Website:

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

A04C-81F5878FFAE9ArtVPF.gif

1. Fresh fruits and vegetables

2. Groceries & staples

3. Home care products

4. Personal care products

5. Garments & fashions accessories

6. Jewelry 7. Bakery, Chilled and frozen food

8. Utensils & crockery for your kitchen

9. Stationary for your office and home

10. White goods

11. Baby care

12. Music and lots more

Website: http://www.thehindu.com/2008/05/10/images/2008051053770501.jpg Spencer's Retail provides maximum value for price in its stores. It has been our constant endeavor to provide the best shopping experience to our customers. We have regular promotions and special offers running, 52 weeks of the year, that enable our customers to buy smartly. These offers are available across all our outlets, across the entire range of products. WHY 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. Consumers view brands advertised on in-store media 40% more positively. (Source: Nielsen Media)

networks

Consumers are 34% more predisposed to buy products on in-store media network. (Source: India retail report

advertised 2005)

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

for TV Ads. (Source: Nielsen Media) 7 Consumers watch in-store media advertising on an average of minutes per visit. Variety of branding options (Hyper, Daily / Supers) for the and a controlled environment for in-store promotions. We

clients

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

Trolley / Basket branding

Carry Bag branding

In store - promoters

Playing pre-recorded ads in the TVs.

Standalone Scrollers

Pull downs and banners

Display panels on the wall

Product Displays

Bill Roll branding

Cash till boards

Glass Windows

VISION & CORE VALUES What is it that defines RPG Enterprises success and carries it on through generations? The set of values and the visionary focus of its leaders, which forms the distinct identity of RPG Enterprises, is what constitute its business drivers. Its Vision and Core Values are:

We shall be a leading Indian Group with a focus on market capitalization through: Leadership in profitability and revenue growth in our chosen

businesses. Being a customer-centric organization and Being the most exciting workplace.

Customer Sovereignty People Orientation Innovation & Entrepreneurship Transparency & Integrity Passion for Superior Performance Anticipation, Speed & Flexibility

MILESTONES OF RPG GROUP The following are the Milestones of RPG Group: By the 1900s the Goenkas establish themselves in diverse business sectors like banking, textiles, jute and tea. Sir Hariram Goenka and Sir Badridas Goenka are conferred knighthood by the British for outstanding contribution to business and the community. In 1933, Sir Badridas Goenka becomes the first Indian to be appointed Chairman of the Imperial Bank of India (now the State Bank of India). He is elected President of the Federation of Indian Chambers of Commerce and Industry (FICCI) in 1945. Keshav Prasad Goenka (son of Sir Badridas Goenka) continues the successful trait of entrepreneurship. In 1950 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.

SPENCER'S ACHIEVEMENTS

VMRD Award: Spencers was awarded the first runners-up in the Visual Merchandizing Category at the In-store Asia, 2009. Food Forum of India Award: Coca Cola Golden Spoon Most Admired Food & Grocery Retailer, Convenience and Express Formats, 2008. India Retail Forum: Most Evolved Retailer of the Year, India Retail Forum, 2007. India Retail Forum: Turnaround Retailer of the Year, 2006

CHAPTER- 4

STORE OPERATIONS Stores shutter will be opened at 7:30 am Security opens the tampered seal and locks in the presence Supervisor. The first activity to happen will be the house keeping followed by staff scheduling. The stock outs are established and the replenishments happen as the day progresses, though it is suggested that replenishments of the stock should always happens the customer is not there. The head of the store inspects all the departments of the store which is otherwise called as Floor Walk. The Supervisor would ensure that all cashiers have enough and correct float cash, whether the stationery required by them is in place or not. The store manager in turn would brief their team on the achievements of the previous day and the set targets for the day. During this discussion, any incidents worth mention. All the CSAs working in the schedule between 7:30 am to 2:30pm should be present at stores by 7:00 am. Time when the shutter is opened is registered by the security in Closing and Opening book and the entry time of the staff is also registered in Staff register.

DUTIES OF STORE MANAGER:

Staff attendance: daily store manager will take the attendance of every employee in store Staff briefing store manager will discuss previous days targets and achieved to days targets and special promos, awareness among the team members.

Handling CSD activities: The another work is that the store manager has to take responsibility of CSD activities like exchanges, refunds, customer complaints & suggestions.

Check list execution: store manager checks the list which includes stock arrival from warehouse .CSAS attendance and their work.

Store manager will check everything that are included to housekeeping like cleaning of floor, baskets, trolleys etc,.

Store manager will check the stock that are coming from vendors like fresh choice and send goods which are damaged.

Store manager keeps some amount in every cash counter which is useful for change as opening balance. The cashier signs when store manager gives amount and again he will sign shift end.

Operation management: The first Spencers hypermarket is located in the heart of Hyderabad, in Musheerabad, at a site spread over 1,20,000sq.ft area. Spencers stock s over 20,000 products across a 50,000-sq.ft.singlelevel shopping space, and employs around 160 people

The store has a convenient food court and concessionaries who sell a wide range of products like pearls jewelry, ethnic wear, liquor, fresh chicken, music and personal care product The second Spencers Hypermarket is located at malad in Mumbai, with an area of 50,000sq.ft. And stocks over 25000 products .it also has a bakery, music world Express outlet and a gift store. Spencers hypermarket also offers memberships to B28 customers that have advantages of convenient shopping combined rewards for bulk purchases. Inventory In Spencers General Stock Receiving: Inwards process means stock receiving from vendors and

manufacturing department and receiving damage stock from stores. In this process they are doing three functions.

1. GRN process receipt note 2. Stock transfer in process 3. Damage transfer in process.

GRN process:

This process will start when the stock come to ware house from vendor as per PO (purchase order). The vendor will come to with invoice and purchase order . my using both supervisor will check cost price of the product ,EAN code of the product and quality After checking the stock will send to warehouse for storing and the document will go to EDP section to enter into system . In that EDP section they will modify the cost prices . MRP and quantity if necessary and finely calculate the total amount including VAT tax .If any product is damage the product return to vendor at same time and the amount of damage stock will be deducted from total amount .After GRN complete the stock will go put away means storage in racks.

Stock transfer in process:

This process will starts when the stock receive from RPC (main warehouse) or any other warehouses. This stock is mainly staples like rice ,Attas ,dals and species ets .In the process the merchandiser will give order to RPC as per requirement .sometimes the stock will come from another warehouse when the stock will come from RPC they will send stock transfer out report with vehicles ,then the inwards supervisor will check the PO and to report and then check the total quantity of the stock .After that the document will go to EDP section .In that section they will enter the stock details (EAN codes and quantity )after that stock will go to put away.

Damage transfer in process:

This is another process means receiving damage and expire stock from stores and inside the warehouse .This process is two types (1)Store damage TI process means the damage stock of the store of the store will keep at the store and that will check by checker at end of the every month that is called PRN process. After PRN the stock will come to ware house . In the ware house the inwards supervisor will check PRN document and receive the stock .Warehouse damage TI process means ,if any stock damages or expires the stock will come to the damage location. It is done every day and the warehouse in charge will send TO report to damage supervisor.

F&V Stock Receiving :

In the process they are sourcing of vegetables from direct formers and local market (wholesaler) and the fruits are sourcing from Hyderabad and other states .The F&V merchandiser will give order to vendors before two days and the buyer will go to local market in early morning of the day to purchase and bring to warehouse by auto by morning 6 am and the vendor will bring the stock before 6 am. After receiving stock to warehouse the quality and quantity will

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

Outwards process :

Out wards process means stock dispatching from warehouse to stores and damage stock dispatching from warehouse to vendors or manufacturing department in this process the main functions are

(1) General stock dispatching process (2) F&V dispatching process (3) Damage stock dispatching process

General stock dispatching process :

General stock dispatching process means the stock sending to stores as per requirement of the store (indent).

Indent process

It will start in this process every day before closing the store manager send the day-end file means requirement of stock for next day(the day-end file is create by compare both store MBQ and store QOH).This day end file will come to it department and the IT manager will give prepare indent. This process is done through automatically system process .The indent will come in division wise to each store that is called pick list.

Picking & checking process:

Picking process means by using pick list the picker will pick the stock from each division for each store as per QOH of the warehouse and after picking the stock keep in store bays for checking .After picking pick list go to EDP for modification and they will prepare check list by using this check list the checker will the stock at store bays after check list go to EDP to prepare stock transfer out report.

stock transfer out report: After completing picking and checking process the EDP supervisor will prepare to report .After this process the stock will go for packing and then loaded in vehicle for dispatching. The QC(quantity checker )will go to store with the TO documents to deliver the stock in store.

F&V dispatching process: In this process the indent will come through manual before two days from store .By this indent the F&V manager will give the purchase order to vendors and bring the stock from local market .After Quality checking and grading the stock will allocate to each store as per indent of the store. After allocation this stock will keep at store bays. After that the F&V supervisor will prepare stock transfer out report and then lode in auto .This stock will go to store before 10 am in the morning .In this process also the QC(quantity checker )will go to store with the TO documents to deliver them to stock in store.

Damage stock dispatching process : In this process the store damage and warehouse damage will keep in damage section for sending to vendor or RPC for replenishment .The damage stock will checked section supervisor after receiving stock from store and warehouse .After checking the manager will send the stock to return if it is sending to RPC then the stock transfer out report will prepare otherwise it will go to second sale or burning purpose. STAFFING INTRODUCTION The organizational structure of a retail store will vary by the size and type of the business most task involved with operating a retail business will be the same .However small or a independent retail store may combine many sectors together under one division ,while larger stores create various division for each particular function along with many layers of management .As Spencers is an organized store ,it consists of various act ivies .Under them ,staffing is one of the major part of the operations .Staffing generally consists of scheduling the employees store meetings, exit interviews, motivating staffing. My observation including all these activities.

RECRUITIMENT PROCESS Generally the customers facilitators are recruited by tapping the known sources .They then look into the bio data and the experience the person has. Mostly the company prefer to recruit experienced people .This helps the store to reduce to training cost. The payment of the CSAs is Rs 4000 and the payment of supervisor s is Rs 6000 and Rs15000 to manager .Based on the experience they have the salary changes spenders over, there are some credits and incentives given to employees who sell Spencers in a month .This helps the management to in build a competitive spirit the rest. SCHEDULING THE EMPLOYEES The basic hierarchy or the structure of the staff is that, the store consists of customer facilitators who are controlled by the supervisors .Above them, there store manager and all of them are controlled by the cluster manager .The CSAs are first regarding the way they sell the product by explaining them the texture,fabric and price of the product so that they try to induce a thought into the customers mind to buy the product. The CSAs generally work in two shifts, first shift from morning 07:30 am to 4:00 and second shift from 1:00 pm to 10:30 pm with a one hour recess time for lunch and fifteen minutes recess for tea .The recess time is scheduled differently for a group of CSAs a

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CHAPTER- 5

SUPPLY CHAIN MANAGEMENT INTRODUCTION The supply chain is the process of creating products for customers .Supply change span from raw materials, to manufacturing, distribution, transportation, warehousing,and product sales. As you can imagine, when the number of resources, operations, and functions increase, managing this supply chain can become very complex. An entire supply chain could exist within a single company supply chains operating within enterprise! Or asupply chain can span multiple enterprises before it reaches a customer .While other dreams like demand chain and value chain are used today , they usually mean the same thing managing a portfolio of assets and relationships to transform raw material into finished goods for customers in the most efficient manner.

A supply chain is dynamic and involves the constant flow of information ,product and funds between different stages .Realistic supply chains have multiple end products with shared components, facilities and capacities. The flow of material is not always along an arbores cent network ,various modes of transportation may be considered, and the bill of materials for the end items may be both deep and large.

SUPPLY CHAIN MANAGEMENT PROBLEMS Supply chain management must address the following problems: Distrbution Network configuration number ,location and network missions of suppliers , production facilities ,distribution centres ,warehouses crossdocks and customers. Distribution strategy : Including question of operating control (centralized decentralizes or shared ): delivery scheme (e.g,,direct shipment , pool

point shipping .cross docking DSD (direct store delivery),closed loop shipping):mode of transportation (e.g,,motor carrier,including truckload ,LTL,parcel:railroad:intermodal,including TOFC and COFC: ocean

freight:airfreight): replinshment strategy (e.g,,pull,push or hybrid): and transportation control (eg,,owner-operated,private carrier,common

carrier,contract carrier,or 3PL Information: Integration of and process through the supply chain to share valuable information ,including demand signals,forecasts,inventory and transportation etc. Inventory management: quantity and location of inventory including raw material ,work-in-process and finished goods, Cash-flow : Arranging the payment terms and the methodologies for exchanging funds across entities within the supply chain.

Supply chain execution is managing and coordinating the movement of materials, information and funds across the supply chain .the flow is dis directional.

OBJECTIVE OF A SUPPLY CHAIN IN SPENCERS The objectives of the project are to create a horticultural model for spencers retail are : Increases consumers value for money Reduce cost in the supply chain Improve response to customer needs Facilities new product innovation Increases competitiveness and along term sustainability through out the production distribution and marketing chain Improve the market share of the fresh fruit and vegetables in the retail sector. The objective of every supply chain should be to maximize the overall value generated. for the most commercial supply chains. value will be strongly correlated with supply chain profitability (also known as a supply chain surplus). The difference between the revenue generated by from the customers and the overall cost across the supply chain.

Supply chain management is typically use viewed to lie between fully vertically integrated firms,where the entire material flow owned by a single firm and those where each channel member operators independently, such a team is spencers competitive when each player knows how to be positioned for hand-off.

SUPPLY CHAIN PROCESS IN SPENCERS

The supply chain process plays a vital role in every organization .but this process may different from one organization to another organization. The process of supply chain in spencers: The supply chain process in spencers retail ltd in Andhra Pradesh is going on in systematic process

Manufacturer Warehouse Stores(spencers) Customers SUPPLY CHAIN IN SPENCERS The supply chain process in spencers is quite a simple one even though have large number of stores .when merchandisers from different locations go for buying , after selection their required product they courier them to central point, Hyderabad, since they have chosen central point as Hyderabad because geographically very much accessible to their merchandise centers in transport means.so the main warehouse is placed at Hyderabad, from there according to the requirement of the individual stores at different areas they courier the products as they adopted this process since Hyderabad very much near to Visakhapatnam and at any time they can get the goods depending on their requirement to Visakhapatnam warehouse. here at Visakhapatnam they have separate ware house in Gajuwakha where the inventory is stocked.

In Visakhapatnam the warehouse is located Gajuwakha where all products are send to all stores depending on different categories of products ,different supply chain process will use by Spencers owned manufacturer and directly from farmers, and for branded products dispatches from that branded company manufacturers. The same process is adapted by all the stores of spencers .thus all about their supply chain process at spencers.

PROCESSES IN WAREHOUSE OR DC RECEIVING DISTRIBUTION DISPATCH EDP DAMAGE SECTION STOCK CHECK SECURITY SECURITY Security is implemented to maintain the discipline and to prevent the losses and customers service and fine fighting discipline cover. They take the responsibility to open and close the store. Uniform Time in time out Grouning prevention losses: finding out where the losses are possible by tighten the security control the losses

CUSTOMER SERVICE:

Customer services with cheering faces wishing the customers and provide the service properly to them like basket, trolley and parking etc.,

FIRE FIGHTING: Whenever there is some information about some fire accident immediately rushing to that area and try extinguishing the fire. From this tie should will aware about the fire equipments and this operation.

First Aid: security should provide the first aid to any one like customers, staff when ever it is needed. Security is of contract based. the head is the Spencers employees and reaming all are contract people.

SALES PROMOTION: Sales promotion is a key ingredient in marketing campaigns.

SALES PROMOTION means a collection of incentive tools mostly short term, designed to stimulated quicker or greater purchase of particular product or services by consumers or the trade. Sales promotion offers a reason to buy Sales promotion offers an incentive to buy. Sales promotion also includes tools for consumer promotion like samples,coupons,cash refund offers ,prices off ,premiums,prizes,free trails,warranties,point of purchase display and demonstrations etc., Sales promotion are used by organization ,including

manufactures,distributors,retailers,trade associations and non profit organizations.

In ancient times the advertising to sales promotion ratio was about 60:40 but today the consumer packaged goods companies sales promotion accounts for 65:75 Sales promotion expenditures have been increased as a percentage of budget expenditure annually for the last two decades.

Several

factors

contribute

to the rapid growth of sales promotion,

particularly in consumer markets they are :

Internal factors include:

1.Promotion is now more accepted by management as effective sales tool. 2.product managers are qualified to use sales promotion tools 3.product managers are under greater pressure to increase current sales

External factors include: 1.the number of brands has increase 2.Competitors use promotions frequency 3.Many brands are seen as similar 4.Consumers are more prices oriented 5.The trade has demanded more deals from manufacturers. 6.Advertising efficiency has declined because of rising costs,media coverage and legal restraints.

Sellers use incentive type promotions to attract new prospects,to rewards loyal customers and to increase the repurchase rates of occasional users.Sales promotions often attract the brand switchers.

Marketing managers first estimate what they need to spend in trade promotion and then they need to spend in consumer promotion.Whatever is left they will budget for advertising.

In advertising take a back seat to sales promotion because advertising typically acts to build brands loyalty.Sales promotion with its incessant prices off,coupons,deals,premiums and blaring quality ,may devalue the product offering in the buyers minds.

HUMAN RESOURCES MANAGEMENT: The Human Resouces manager will see the all the responsibilities of the store while the customer are satisfied while they are shopping or not.The HR manager will train the C.S.A.s of all the categories.He will decided how much of man power is sufficient for the each category.The HR Manager recruits the people and allocates how much salary they will have to pay them. The HR will give the leaves to each category and he will allocate the working hours to the people who are working in the store.He will allocate the worker for the 1st and 2nd shifts of the stores.

The HR manager will give the incentives to the category wise .The HR will keep the records of the every category and they should be given a list of sales day by day to the each category.He will take the attendance of the workers of each category.In case of any shortage is held he will take the alternate decision and want to allocate another person to that category.

The HR manager will work hard for the development of the organization for that purpose he will trained up the member of each category by giving the demo classes to all people.

The HR manager will motivates the workers in the organization and gives some of the benefits to workers in the organization like safety and security,health,bonus any compensation etc.,will be taken under the HR. BILLING: Billing is major part of the store without this the store will not move forward.In this billing department the people will be take the all the responsibilities while they are in duty about the money.They should very careful while they are doing their job.Every day they will to shift takes place.The people of both shifts will be attend at the end of the day and they should pay the collected amount to the managers. In case any items are returned by the customer the manager will give the permission to cancel that bill and want to give the new bill.The people who are billing they should know the offers and discount of the product which are in stores ,and otherwise they will face so many problems with the customers and so many times they may loose their value stores.

The mode of payment will be done on 4 type.

a. b. c. d.

Cash Credit Coupons (sodexo,paper cuttings) Gift vouchers

CATEGORIES: Retail marketing industry is growing at rapid space in india.Government policies are also helping the industries to have a strong foot hold part of the product mix of the retail industry is FMCG that is bifurcated to food and NonFood.Food division broadly divided as biscuit ,beverages and noodles where as non food segment is parted into skin,hair and body segment.So display of goods of this segment is based on price range.The leading player among the existing one is HLL with aroung 450 products followed by Henkel ,RBI and P&G.there are around 48 bays in the spencer followed 5 selves in the displays

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

Home,Work and Play - 2800 SKU FMCG F&V Fashion Hi-Tech Staples Bakery and food - 3623 SKU - 1400SKU - 5650SKU - 1450 SKU - 2440 SKU - 800SKU

FRESH(F&V):

In the modern retail F&V (fruits and vegetables) is the important category which diffr from common retailers the same concept is adopted by the bigger companies like Reliance.F & V carriers some of the sub-categories like vegetables , hard vegetables,leafy vegetables, imported fruits (litchi,Australian grapes)exciting vegetables ,fruits,bakery items.To attract the common retailer F & V section is the right section to differ from other competitors.If a lady consumer satisfies with a stuff of F & V she will turn as a loyal customer to the organization. In Spencers F & V section consists of

Onions,potatoes,Tomotoes,Cabbage,Brinjal etc., and leafy vegetables like : Coriander ,curry leaf,palak etc.,and fruits are : Apple

,Banana,Grapes,Mango,Orange etc.,

STAPLES:

It is a category completed based on the quality .Staples are a day to day essential category for A.P people and it is the destination category. Company will put their own brands and sell it like Dal Rice ,Masala etc. Four Ps in this category is to be followed they are: 1. 2. 3. 4. Price Product Knowledge Planogram Promotions

There are sub-categories in staples category: 1. cereals : it consists of raw rice,wheat etc,. 2. Pulses: it consists of toor dal,urrad dal ,major and minor dals, channa dal , Green piece. 3. Floured: RAva-idly ,Bombay,maida,atta etc,. 4. Masala and spieces :dry fruits and spices 5. Oil: sun flower, palm. ground nut, rice rich ,ghee, vanaspathi etc,. 6. Salt: salt 7. Sweeteners: sugar, jag earn etc.

FMCG: (Fast moving consumer goods) FMCG is the basis category which gives top line(sales) FMCG is the 60% business driving category , if a customer picks up a general basket value rs 300//- line value of FMCG will be 60% There are 2 sub categories in it Food Non food Food consist of tea chips ,mineral water ,aerated drink,fruit

juice,savories,potato

Apadam,sauces,vermicelli,instead

noodles,pickles,corn flakes,health drink , milk Powder ,cream Biscuits, plain Biscuits , wafers, paper Tissues, Chocolates, Toffees. Mint, Sweet etc,

Non-food category consists of powders/ Detergents, washing Bars, Floor Cleaner, Toilet Cleaner, pooja ltems, Sanitary ltems, Mosquitoes/ Reptiles, Air fresher, Agarbathi Tooth Brush, Tooth paste, Mouth Wash, Baby Toiletries, Creams, Soaps, Lotions, Diapers ,shaving creams,razor Blades, OTC products (over the counter) Hair oil color, Bath Accessories etc,.

H.W.P(Home Work And Play)

It is one of the major categories. It contributes 13% of store With high margins (bottom line is strong ) customer service should maintain in this category to get average sales, Average margin contribution is around 25% it is a seasonal category in this season the contribution of Kitchen Hold ltims Will be high In Home Kitchen Ware, Table Ware, Home needs, Home dcor, Gifts and Novelties, Cleaning aids, Bathroom aids, Serving ladles, tainless Steel, plates, Bake and Serve, Cookery, Serving Dishes, Glass Ware, Lend and Fashion like bed sheets, towels, pillow covers, kerchiefs. Door croutons etc,.

In play Soft toys, Sports, Education and Entertainment. Board Games and puzzles infant Toys. Play characters etc.

FURNITURE: Furniture is one of the important cateagories in the stores. NoW-a days most of the people are preferred for their luxuries life in the society.sothat people are preferred for the nuclear families.Due to the increase in the nucoear families there is an increase purchasing quantity. So that the people are wanted to live in there own house, So that there is an increase in the furniture.

In this there are 6 subcategories for various standards.

a) Bed Room b) Livingroom c) Kitchen room d) Cgukdren room e) Iffuce room f) Outdoor room

a. BED ROOM:

In this category the furniture will have different types of are there Which are to be decorated in the bed room, to get good out look of the bed room, Due to the increase in the nucoeat famioies there most be a importance came to the furniture,

Some of the item in furniture which are decorated are bed, mattress, dressing table, chairs, book stand ward robes unit,

b. living Room Furniture: it is also known as Hall furniture, in every house the hall must be decorated in a attractive manner for that purpose they want to place the furniture items. So that many furniture companies are designed the living room furniture with various designs and models which are in attractive manner, These are some of the items which are decorated in the hall to good outlook is sofa set tables. Chairs, T.V unit Center table, book shelfs, magazine stands etc, corner tables, etc are come under this category.

C. kitchen room furniture Kitchen furniture is also important every home while the people are eating or while doing the work in the kitchen they should be feel comfort, So that some of the furniture items should be arranged compulsorily, So that some of the items arranged in the kitchen are dinning table, chairs. Kitchen stands. Kitchen shelf, s/ kitchen trolley,s. kitchen cupboards, etc,.

d.Children Room Furniture: in every family the parents are take care about their children.s. studies so that the parents are giving a separate room for their studies and for the playing purpose. The parents want to create a good atmosphere and facilities for their studies. Sleeping and playing purposes etc,. So that parents are arrange the furniture in a simple manner to their children.

Some of the furniture items which are arranged in the childrens. Room are bed mattress, chair study table. Book shelfs. Ward robes, computer table, computer chairs, etc,.

e.office room furniture;

presently all the companies are want to create an ambiance among their customers so that they want to decorate their offices with attractive among manner. Due to these availabilities the people in the offices are doing their work in a respectable way. Some of the furniture items which are arranged in the office room are Tables, Chairs, book shelves, ,agazome sstamd. Telephone stand, computer chair etc, are come under category,

f. Out door Furniture: Outdoor furniture is the one of the category in the furniture. People are like to sit in the out door in the evening for the health air and also for the freshness. Some of the furniture items which are arranged in the outdoor are shoe rack, iron tables, jula, sofas, etc., are come under this category. GARMENTS: It is the only category which gives more margin than any other category the margin with be 28 to 30%. That total sale contribution will be 9 to 10% GARMENTS are of different kinds like MENS WEAR, LADIES, KIDS and FASHION etc., MENS WEAR: Shirts, Jeans, T-Shirts, jackets, Kurtha, Pijama etc., LADIES : Dress materials, Salwar Suits, Tops, Skirts, Sarees, Nighties KIDS: Frocks, Tops, 3/4items, Shirts, Jeans etc., FASHION : Foot ware, Junk Jewellery, Cosmetic, Brand Watches, Belts and all HI-TECH: It is one of the major and important categories in the Hyper Market. It contributes 25% of store sale. In this category all the Skill is higher value. The items are divided into two categories they are 1. ELECTRICALS : Kitchen appears Electronic Appliances Electric equipments inner wears

KITCHEN APPEARS:

Juicer / Mixer Grinder, Mixes, Hand

Blender, Micro Wave Oven, Rice Cookers, etc., COMFORT: Fans, Air conditioners etc., ELECTRICAL APPLIANCES: Iron Boxes, Emersion Rods ELECTRICAL EQUIPMENT: Batteries, Bulbs, Tube Lights, Lamps and Electrical Accessories 2. ELECTRONICS: Home Appliances Audio Digital HOME APPLIANCES:Refrigerators, Washing Machine, Vacuum Cleaners etc., AUDIOS: DVD players, Hi-Fi Systems, Home Theater, Speakers, CTVs,LCDS DIGITAL: Still Camera, Digital Camera

CATEGORIES IN SPENCERS HYPER VIJAYAWADA hyper have a seven categories, it is given be love 1. FASHION 2. HI-TECH 3. HWPLF 4. FMCG 5. STAPLES 6. F&V 7. BAKERY FOOD SERVICES

A) THE MAJOR CATEGORIES IN HYPER: 1. FMCG 2. STAPLES 3. F&V B) THE SUPPORTING CATEGORIES IN HYPER; 1. HWPLF 2. FASHION 3. HI-TECH 4. BAKERY FOOD SERVICES THE MAJOR CATEGORIES IN HYPER: FMCG (Fast Moving Consumer Goods): The total trading area is 4000sq.ft. This categories has approximately 3500 SKU This categories contains 30% of total store sale. Ever day sales in FMCG section nearly Rs 1,00,000. In weekends sale Rs.1,80,000 This categories items divided into two types. a) Food items, b) Non-Food items. A) Food items: Food items are divided into two class like Processed food, Beverage Food items. Processed Food : Processed Food consist of bricks. o Pickels o Corn flakes o Health drinks o Ready to eat o Honey jam a different types

o Milk powers o Baby foods o Noodles vermicells o Kur kury o Lays o Oats o Chocolates o Biscuits o Mint etc., Beverages food : Beverages food divided two type families, like hot drinks, soft drinks. This consist of a different types bricks. They are as follows Hot drinks : o Tea o Coffee o Alcoholic items o Non alcoholic items Soft drinks: o Cool drinks o Fruit juices o Dairy items o Frozen. B) Non food items: Non food items are divided into two class llike home needs, health and beauty items. Home needs: o Detergents o Washing bars

o Flour cleaners o Toilet soaps o Air fresher o Tissue roles o Naptalin balls o Pet car o Baby toilet items etc., Health and Beatuty: Health and Beauty items divided three type families as a Hair Care: o Hair care o Hair colour o Shampoos o Otc o Beauty oils o Shaving needs Skin care: o Talcum powers o Bath saops o Spry etc Oral care: o Toot pasts o Tooth brush etc. STAPLES: The total trading area is 1500sq.ft. This categories contains 18% of total sale. Every day sales I this section nearly Rs80,000 In weekends sale nearly Rs1,40,000.

In this categories pravite lable (spencers brand) items occupy 80% sku. This categories items divided into eight type class. 1. Cereals 2. Pules 3. Floured 4. Masala and spices 5. Oil 6. Salt 7. Sweet nees 8. Dry fruit 9. Organic Cereals : o Rice o Wheat Pules : o Toor dal o China dal o Moong dal Floured : o Idly rawwa o Bombay rawwa Masala and spices: Oil : o Sun flower oil o Ground nut oil o Olive oil Salt : o Salt

Sweetness : o Sugar o Jiggery Dry fruits : o Khaju o Date fruit F&V (Fruits and vegtables): The total trading are is 1000sqft. This categories has approximately 70sku This categories contains 8% of total store sale. Every day sales in this section nearly Rs.20,000. In weekends sale nearly Rs 40,000. Fruit and vegetables available three types, they are basics, seasonal, extic. Harabara offer: this offer special of spencers every Wednesday fruit and vegetables available love price compare to other days and in the spencers This category divided three classes. 1. Fruits 2. Vegetables 3. Egg Fruits : every class have a different type of bricks. o Apples & Pears o Citrus o Berries o Grapes o Melon o Tropics o Temperate fruit

o Fresh band fruits Fresh vegetables: o Seeds o Root veg o Stems and shoots o Leaves and salads o Buds and flowers o Fresh veg-fruits Egg : o Poultry egg o Mushrooms

HWPLF (Home work play lenian fruniture): The total trading area is 4000sqft. This categories has approximately 3500sku/ This categories contains13% of total store sale. Every day sales in this section nearly Rs 80,000. HOME : Kitchen ware : non stick ware Table ware : dining accessories Home needs: o Photo frame o Artificial lowers o Vase o Decorative candle Gift & nonvelties: gift articles Cleaning aid: o Broom /brush

o Duster o Cleaning implement Bath room aids: o Mugs o Buckets o Tubs o Cleaning implements Disposable: o Paper towels o Serving needs o Falls o Dry facial tissue o Candle o Party accessories Pooja needs: o Pooja aids o Agarbathi Baby needs: Feeding & wearing Grooming &hygiene Cookware: Dining ware: Dinner set Cups &saucers Kitchen tools metals: Cutting aid implements Non stick Cooker accessories Steel cookware Aluminum cookware

Kitchen wooden Plastics &thermo ware: Storage plastic Microwave ware Thermo ware Plastic accessories Serve/Table ware: Cutler knife Sorage metal: Lunch carrier Fitter Glass ware: Dinner set-glass ware Glass bowls Glass plate,jug,jar etg..

Ceramic ware: Dinner set,bowl,plate Work: Luggage: Tool: Hand tool Looks Stationary: Note books Files & folders School bags Brief case Travel bags Two wheel trolley Laptop bags

PLAY: Soft toys: Animals soft toys Sport: Indoor, outdoor Education & entertainment: Multimedia Art craft Board games Musical instruments Vehicle: Batter operated Non batter operated Play character: Dolls, soft toys Linen: Bed: Bath: Kitchen : o Kitchen towels Dining : o Glove o Table met FURNITURE: Bath towel Hand towel Face towel Bath mats Shower curtains Bed sheets & covers Pillow & covers Blankets Comforts

Bed room: bed Living room: side table Dining room: dining table Essential : study table, computer table Storage solution: shoe racks, book shelf. GARMENTS : The total trading area is 2500sqft. This category has approximately 6000sku. This category contains 10% of total stores sale. Every day sales in this section nearly Rs 40,000 In weekends sale nearly Rs.1,00,000 This categories only give more margin than other categories, than margin with be 28 to 30% Spencers give offers always to customers on this category. 1. Mens ware 2. Ladies ware 3. Kids ware 4. Fashion accessories 5. Foot ware 6. Basic ware 7. Lady bird 8. BHPV Mens ware : o Shirts o Jeans o T-shirts o Tie o Suits

o Trousers Ladies ware : o Sarees o Dress materials o Tops o Skirts o Sal war suits Kids ware: o Shirts o Tops o items o Jeans o Frocks Fashion accessories : o Junk jewellery o Cosmetic o Brand watches o Belt and all cosmetics items Foot ware Basic ware Lady bird BHPV

HI-TECH: The total trading area is 1700sqft. This categories has approximately 80sku This categories contains 8% of total store sale Every day sales in this section nearly Rs 30,000

In weekends sale nearly Rs,50,000 BFS(Backery and Food services): The total trading area is 1700sqft. This categories has approximately 80sku This categories contains 6% of total store sale Every day in this section nearly Rs20,000 In weekends sale nearly Rs50,000 ADVERTISING Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to purchase or to consume Spencers of a particular brand of product or service. While now central to the contemporary global economy and the reproduction of global production networks, it is only quite recently that advertising has been Spencers than a marginal influence on patterns of sales and production. The formation of modern advertising was intimately bound up with the emergence of new forms of monopoly capitalism around the end of the 19 th and beginning of the 20th century as one element in corporate strategies to create, organize and where possible control markets, especially for mass produced consumer goods. Mass production necessitated mass consumption, and this in turn required a certain homogenization of consumer tastes for final products. At its limit, this involved seeking to create world cultural convergence to homogenize consumer tastes and engineer a convergence of lifestyle, culture and behaviors among consumer segments across the world. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinvention of the brand image . For these purpose, advertisements sometimes embed their persuasive message with factual information. Every major medium is used to deliver these

messages, including television, radio, cinema, magazines, news papers, video games. The internet, carrier bags and billboards. Advertising is often placed by and organization. Organizations that frequently spend large sums of money on advertising that sells what is not, strictly speacking, a product or service include c and military recruiters. Non profit organizations are not typical advertising clients, and may rely on free modes of persuasion, such as public service announcements. Advertising in Spencers: As per our observation, Spencers majorly concentrates for advertising about their store, by print media, local television advertisements and FM. Print media: Spencers concentration mostly on print media rather than electronic medias like TVS internet their perception is that print media creates a better impact and impression on customer minds. Spencers mostly concentrate on print media to advertise bout the discounts and offers of large number of skus and to keep remembrance in mind of the customer for that they mostly concentrate on leaf lets and news papers. Hoardings playing major role in advertising the brand of Spencers adithya Birla group to all types of customer like upper class and middle class customers Spencers concentrate upon advertisement on hording at every part of the city. Electronic media: in electronic media, FM playing a major role in advertising. Since in Vijayawada listeners for radios are quite in good number. But by only these means on cant get good publicity. After launching of Spencers private labels they are using FM media Spencers

VISUAL MECHANDISING: Visual merchandising can be termed as a orderly, systematic, logical and intelligent way of putting stock on floor. It has several aspects and involves sku planning, store windows and floor displays, signs, design, fixtures and hardware, props and mannequins. As retailing becomes increasingly complex creating the right atmosphere in the store and presenting merchandising in the right manner becomes more and more important. To produce good visual merchandising, it is vital to understand the product and the customer. Good visual merchandising means selling space is neat, easy-tosee, follow and shop. It means merchandising arranged in a manner that enable the customer to buy quickly, efficiently and comfortably. IMPORTANCE OF VISUAL RCHANDISING STORE DESGIN: The store design and layout tells a customer what the store is all about, Lit is very strong tool in the hands of retailer for communicating and creating the image of the store in the mid of the customer, it is the creation of the image that is starting point all marketing efforts. The importance store design needs to be understood from the perspective of retailer as well as from the perspective of consumer.

The design and lay out of the store are a means of communicating the image of the retail store. The primary consideration the retailer tales in to account while choosing the look for his store and the merchandising that he is going to sell, creating store image is like giving a personality to the store it is what the store is all about,

INTERIOR STORE DESIGN: The interior store design is a function of the aesthetics within the store, the merchandising sold within the space use for the same and the overall lay out, now concerned each of these areas, the first factor that needs to be take in to account is the amount of space allocated within the store. For the merchandising, this often termed as space planning, SPACE PLANING It helps a retailer determine the amount of space available for selling and for storage, it also helps determine the following, The location of various departments The location of various products waith in the department The specific location for impulse products, destination areas, seasonal Products, products with specific merchandising needs, adjacent departments etc., The relation of space to profitability

LIGHTING Lighting is a key factor of retail design .The lighting screen to adopt has to be decided upon keeping in mind the kind of products being sold in the store and the target audience. Effective lighting is key to the sale of merchandising and it helps create a favorable first impression.

PLANOGRAM Planogram is a tool used by the retailer that helps determine the location of merchandising with in a department .It is a diagram that visually communicates how merchandise and props physically fit onto a store fixture or window to allow for the proper visibility and price point options. METHODS OF DISPLAY Retailers while displaying their products may adopt various methods. COLOUR DOMINANCE This is simplest and most direct method of presenting merchandising .In such a display merchandise is primarily displayed by color .Within the color display the products may be displayed by size and style.

COORDINATE PRESENTATION Many times it is effective to present merchandising are coordinate manner .Presentation by coordination may be done for garments and can also can be done for the home-fashions, bed and bath lines and even kitchen requisites. PRESENTATION BY PRICE In such a display, the inexpensive, bargain or merchandising is displayed first. The volume of the product and the saving is dominant.

CHAPTER- 6

1) How do you know about Spencers?

a) TV/FM

b) Pamphlet

c) Newspaper

d) Others

20%

53%

12%

TV/FM Pamphlet Newspaper

15%

Others

Interpretation: The above graph shows out of 100 respondents 20% of the people know through T.V/FM , 12% of the people know through pamphlet, 15% of the people know through newspaper and remaining 53% of the people know through others.

2) What made you make to prefer Spencers? a) Quality b) price c) Services d) Others

15% 44% 25% Quality Price Services

Others 16%

Interpretation: The above graph shows out of 100 respondents 44% of the people prefer for quality, 16% of the people prefer for price, 25% of the people prefer for services, 15% of the people prefer for others.

3) How many times do you visit to Spencers? a) Daily b) Weekly c) Forth night d)Monthly

31%

20%

Daily Weekly 12% Forth night

37%

Monthly

Interpretation: The above graph shows out of 100 respondents 20% of the people visit the store daily, 37% of the people visit the store weekly, 12% of the people visit the store forth night, 31% of the people visit the store monthly.

4) How much do you spent in every visit? a) Below 500/b) 500-1000/c)1000-1500/d) Above 2000/-

26%

20%

Below 500 500-1000 20% 34% 1000-1500

Above 2000

Interpretation: The above graph shows out of 100 respondents 20% of the people purchase below 500/-, 34% of the people purchase 500-1000/-, 20% of the people purchase 10001500/-, 26% of the people purchase more than 2000/-.

What do you like about Spencers store? Rate your experience in following questions

5) Product Quality a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

15%

5%

13%

Delighted Happy Some What satisfied 67% Dissatisfied

Interpretation: The above graph shows out of 100 respondents 13% of the people delighted with product quality,67% of the people happy, 15% of the people somewhat satisfied and 5% of the peoples are dissatisfied.

6) Product Variety a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

11% 24%

26% Delighted Happy Somewhat Satisfied 39% Dissatisfied

Interpretation: The above graph shows out of 100 respondents 26% of the people delighted with product variety 39% of the people happy, 24% of the people somewhat satisfied and 11% of the peoples are dissatisfied.

7) Product Availability a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

13% 15%

29% Delighted Happy Somewhat Satisfied 43% Dissatisfied

Interpretation: The above graph shows out of 100 respondents 29% of the people delighted with product availability 43% of the people happy, 15% of the people somewhat satisfied and 13% of the peoples are dissatisfied.

8) what do you rate Spencers on product pricing. a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

11% 22%

15%

Delighted Happy Somewhat Satisfied 52% Dissatisfied

Interpretation: The above graph shows out of 100 respondents 15% of the people delighted with product pricing 52% of the people happy, 22% of the people somewhat satisfied and 11% of the peoples are dissatisfied.

9) Store Ambience a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

15%

17%

Delightde 28% 40% Happy Somewhat Satisfied Dissatisfied

Interpretation: The above graph shows out of 100 respondents 17% of the people delighted with store ambience 40% of the people happy, 28% of the people somewhat satisfied and 15% of the peoples are dissatisfied.

10) Convenient Location a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

10%

6%

28% Delighted Happy Somewhat Satisfied

66%

Dissatisfied

Interpretation: The above graph shows out of 100 respondents 28% of the people delighted with convenient location 66% of the people happy, 10% of the people somewhat satisfied and 6% of the peoples are dissatisfied.

11) Fast & Accurate Billing a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

Sales
10% 19% Delighted Happy Somewhat Satisfied 57% Dissatisfied

24%

Interpretation: The above graph shows out of 100 respondents 24% of the people delighted with fast & accurate billing 57% of the people happy, 19% of the people somewhat satisfied and 10% of the peoples are dissatisfied.

12) Customer Service a) Delighted b) Happy c) Somewhat satisfied d) Dissatisfied

Sales
6%

12%

23% Delighted Happy Somewhat Satisfied

69%

Dissatisfied

Interpretation: The above graph shows out of 100 respondents 23% of the people delighted with customer service 69% of the people happy, 12% of the people somewhat satisfied and 6% of the peoples are dissatisfied.

13) Do you refer Spencers brand to your friend? a) Yes b) No

16

Yes No

84

Interpretation: The above graph shows out of 100 respondents 84% of the people are ready to recommend to others 16% of the people are not ready to recommend to others.

FINDINGS
Discount offers are not very visible in Newspapers/T.V. Billing counters were found inadequate/ slow billing. All the offers are not being updated by the \IT administrator at the right

time. In the store customer service associates do not have proper knowledge

in private labels. Pops are not updated in the f&v (fruits& vegetables) and staples

section. Parking space is very less, mostly in weekends. fresh stock in ( F&V )fruits & vegetables is not available.

SUGGESTIONS
Discount offers to customers should be made more effective by presenting advertisements in newspapers. Billing counters which are being kept closed to be opened during rush hours Salesmen should improve their body language by being submissive and cordial in receiving customers. Special manpower to help customers to guide products to be allotted.

They need proper training and knowledge about products. Then they can explain about the private labels.

It should be mandatory to update the pops in all section in store.

BIBLIOGRAPHY

Phillip Kotler Swapna Pradhan Levy Weitz

Marketing Management Retail Management Retail Management

Websites: Imagesretailing.com Retail blitz Google Spencersretail.com