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SEPTEMBER, 2019
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SAVEETHA ENGINEERING COLLEGE
THANDALAM, CHENNAI – 602 105
BONAFIDE CERTIFICATE
Certified that this training report “ SUMMER TRAINING REOPRT ON SPAR INDIA “is
the bonafide work of MS. SHYAM VENKAT RAMANJANEYALU.A (Reg.No.
212218631103) who has carried out the summer training under our supervision. Certified further
that to the best of our knowledge the work reported here in does not form part of any other
training report or dissertation on the basis of which a degree or award was conferred on an earlier
occasion on this or any other candidate.
CERTIFICATE OF VIVA-VOCE-EXAMINATION
iv
DECLARATION
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ACKNOWLEDGEMENT
I would like to express my heartfelt gratitude to our Management, Our honorable President,
Dr.N.M.VEERAIYAN and Our beloved director Dr.S.RAJESH, Our respected Principal
Dr.R.RAMESH for providing an excellent environment and infrastructure at our college for
doing my MBA degree program successfully.
I have a great pleasure in expressing my sincere and profound thanks to our Head of the
Department, Dr.P.Uma Rani for her continuous motivation throughout my MBA program and
provide me opportunity to have a boundless exposures with industries through this training
period and also other development programs.
I am also thankful to our project coordinator and all the faculty members of our MBA
department for their support and their encouragement for this training work.
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ABSTRACT
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TABLE OF CONTENTS
CHAPTER DESCRIPTION PAGE NO
INTRODUCTION
1.1 Industry Profile
1.2 Company Profile
1.3 Nature of the business
1 Business volume
1.4 Product lines, List of products/ Services
1.5 Competitors
1.6 Objectives of the organization
1.7 Objectives of studying the organization
2 STRUCTURE OF THE ORGANISATION
2.1 Organizational structure
2.2 Number of employees
2.3 Duties and Responsibilities of Dept. Heads
FUNCTIONAL DEPARTMENTS OF THE
ORGANIZATION
3 3.1 Finance Department
3.2 Marketing Department
3.3 Human Resource Department
3.4 Production Department
4 APPLICATION OF MANAGEMENT CONCEPT
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LIST OF TABLES
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LIST OF FIGURES
The Indian retail industry has emerged as one of the most dynamic and fast-growing
industries due to the entry of several new players in the recent times along with rising income
levels, growing aspirations, favourable demographics and easy credit availability. It constitutes
over 10% of the country’s Gross Domestic Product (GDP) and around 8% of the employment
and is valued at USD 672 billion. Globally, India is fifth-largest global destination in the retail
space and is growing at a rate of 12% per annum. Over the last two decades, the size, scope and
complexity of retailing has undergone considerable change. The retail industry can broadly be
classified into two categories: Organized and Unorganized.
Thought the market has been dominated by unorganized players, the entry of domestic and
international organized players is set to change the scenario.
Organised Retail:
Oranised retail is characterised by high investment requirements, large premises, trained
staff where retailers are licensed and are registered to pay taxes to the government.
Unorganized Retail:
Unoranized retail refers to the traditional form of retail often situated near residential
areas. It is generally characterized by low rentals, low tax payouts with a majority of it being
ownermanaged and employing personal capital. It includes formidable mix of conventional
Kirana shops, general stores, mom-&-pop stores, paan-beedi shops and other small retail outlets.
Currently, organised retail market is valued at about USD 60 billion, only about 9% of the sector,
where as unorganized retail market holds the rest. India's organised retail penetration is much
lower compared with other countries, such as the United States which has organised retail sector
penetration of 85%.
TRENDS IN INDIAN RETAIL SECTOR:
Department stores
Department stores are general merchandisers. They offer to the customers mid- to high-quality
products. Though they sell general goods, some department stores sell only a select line of
products. Examples in India would include stores like "Westside" and "Lifestyle"--popular
department stores.
Malls
One of the most popular and most visited retail formats in India is the mall. These are the largest
retail format in India. Malls provide everything that a person wants to buy, all under one roof.
From clothes and accessories to food or cinemas, malls provide all of this, and more. Examples
include Spencers Plaza in Chennai, India, or the Forum Mall in Bangalore.Mallsare the largest
retail format in India
Supermarkets
One of the other popular retail formats in India is the supermarkets. A supermarket is a grocery
store that sells food and household goods. They are large, most often self-service and offer a
huge variety of products. People head to supermarkets when they need to stock up on groceries
and other items. They provide products for reasonable prices, and of mid to high quality.
Street vendors
Street vendors, or hawkers who sell goods on the streets, are quite popular in India. Through
shouting out their wares, they draw the attention of customers. Street vendors are found in almost
every city in India, and the business capital of Mumbai has a number of shopping areas
comprised solely of street vendors. These hawkers sell not just clothes and accessories, but also
local food.
Hypermarkets
Similar to supermarkets, hypermarkets in India are a combination of supermarket and department
store. These are large retailers that provide all kinds of groceries and general goods. Saravana
Stores in Chennai, Big Bazaar and Reliance Fresh are hypermarkets that draw enormous crowds.
COMPANY PROFILE
Introduction:
Retailing consists of those business activities involved in the sale of goods and services
to consumers for their personal, family, or household use. Retailing comprises of four elements
customer orientation, coordinated effort, value-driven, and goal orientation. The word "Retail"
originates from a French-Italian word. Retailer-someone who cuts off or sheds a small piece
from something. Retailing is the set of activities that markets products or services to final
consumers for their own personal or household use. It does this by organizing their availability
on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is
a Person or Agent or Agency or Company or Organization who is instrumental in reaching the
Goods or Merchandise or Services to the End User or Ultimate Consumer.
MAX HYPERMARKET INDIA PRIVATE LIMITED
SPAR is the world’s largest independent food retail chain which operates on the principle of
a ‘Co - operative of Independent Retailers and Wholesalers’ and is present in 48 countries
with 13,112 stores and meets the needs of over 13.5 million consumers every day.
SPAR Hypermarkets in India is the result of a license agreement between Dubai based
Landmark Group’s Max Hypermarket India Pvt. Ltd. and SPAR International. Max
Hypermarket has a total of 25 stores pan India and has stores currently in Bangalore,
Chennai, Coimbatore, Hyderabad, Ghaziabad, Gurgaon, Hyderabad, Mangalore and New
Delhi
Shoppers have the option to choose from a wide variety of quality products in every
category. SPAR offers the freshest quality, widest choice, great value for money and
personalized, friendly service all packaged to create a truly enjoyable shopping experience.
SPAR is the world's largest food store chain with over 12000 stores in 38 countries across 4
continents and meets the needs of over 10 million consumers every day. SPAR Hypermarkets
and supermarkets in India is the result of a license agreement between the Dubai based
Landmark Group's Max Hypermarkets India Pvt. Ltd. and SPAR International. SPAR is the
world's largest independent food retail chain which operates on the principle of a 'Co - operative
of Independent Retailers and Wholesalers.'
Customers have the option to choose from a wide variety of quality products in every category
ranging from grocery, fruits and vegetables, bakery, dairy, meat, poultry and fish, wine, beer and
spirits, home textiles, personal care, crockery utensils, plastics and kitchen appliances,
electronics and IT accessories and much more. SPAR promises to elevate shopping from a daily
chore to a world class shopping experience that also offers value for money. SPAR's retail
philosophy is to provide freshness, choice, value and service to its customers
SPAR promises to elevate shopping from a daily chore to a world class shopping experience that
also offers value for money. SPAR offers the freshest quality, widest choice, great value for
money and personalized, friendly service all packaged to create a truly enjoyable shopping
experience. SPAR's tag line "Live Better. Spend Less" epitomizes this philosophy.
SPAR assures excellent value for money throughout the year. The stores have a "Everything
Below MRP" concept. This simply means that SPAR offers the customer prices which are a
minimum of 4% and more below the actual MRP of the products. The customer therefore is able
to save a substantial amount on his groceries and regular monthly shopping. SPAR also has Best
Deals that run every fortnight and offer the customer the best bargains. In conjunction with the
Landmark Group's corporate loyalty programme, SPAR launched The Inner Circle, a loyalty
program for its customers in March 2009 which offers shopping and saving benefits in all stores
across the group.
In addition to freshness, choice and value, SPAR also assures world class service. Wide aisles for
easy and seamless trolley movement, from entrance to the parking area, fast billing process at the
numerous billing tills and even small details like the token system at the fish counter where
consumers get freshly cut and cleaned fish, packaged in ice.
Max Hypermarket India Pvt. Ltd. currently operates 25 stores in 9 locations. These cities are
Bangalore, Mangalore, Coimbatore, Hyderabad, Delhi, Ghaziabad, Gurgaon, Chennai and Pune.
The average hypermarket size is 50,000 sft. The company will be opening on an average 5 stores
a year over the next few years.
Retail presence of over 30 million sq. ft. across Middle East, India, Egypt, Turkey,
Yemen, Jordan, Sudan, Lebanon, Libya, Kenya and Pakistan
One of the group companies, Max Hypermarket India Pvt Ltd operates Spar
Hypermarkets in India
4. Electronics
5. Cosmetics
6. Accessories and footwear
Over the years, our Buying Department has ensured the availability of a solid range
of 300 products divided into 12 product categories.
Vision
To be the most exciting, innovative and sought-after retail brand worldwide.
Mission
Our mission is to ensure that SPAR remains the world’s leading food voluntary retail chain. We
continue to grow our brand, our presence and our partners by enhancing the competitiveness,
productivity and profitability of our retail and wholesale partners worldwide.
Core Values
AREA OF OPERATION
Max Hypermarket India Pvt. Ltd. currently operates 25 stores in 9 locations. These cities
are Bangalore, Mangalore, Coimbator d.The average hypermarket size is 50,000 sft. The
company will be opening on an average 5 stores a year over the next few years.
COMPETITOR IN INDIA
Spencer’s Retail has been part of the Indian retail landscape since
1863 and was originally set up by Mr John William Spencer. It acquired Indian ownership in the
1960s, and became part of the RPG Group in 1989. Since inception, Spencer’s has been a
consumer-centric brand, constantly innovating, pioneering formats, evolving over time.
Fabindia is India's largest private platform for products that are made from traditional
techniques, skills and hand-based processes. It started as a wholesale export company and has
since successfully established itself as a major retail player in the Indian market. Fabindia's first
retail store opened in New Delhi in 1976. Today, Fabindia has 17.
ORGANIZATION STRUCTURE
DIRECTOR
GENERAL MANAGER
SPAR’s Omnichannel play offers the proposition of convenience in tandem with its unique value
proposition along with the assurance of products’ freshness, superior services and various other
customer-friendly options. All of these features have been designed to bring a delightful array of
assortments and a virtual hypermarket near to the doorstep of the customer. According
to Saravana C, Deputy General Manager, Business Applications, SPAR India, “Our
Omnichannel play is all about reaching out seamlessly to our existing and potential customers
with our rich assortment and about expanding our customer base further. Th rough our
Omnichannel initiative, we are offering our customers a better service and delivery apart from
taking our freshness proposition to a new level. Our innovative Omnichannel model is live and
kicking and is getting a great response from the customers.”
Apart from launching its Spar Site, the hypermarket has also tied up with online retail giant
Amazon. Its product assortment is already available on Amazon and this initiative too has played
out well and drawn good customer response. To rev up its Omnichannel play a few notches
more, SPAR has also launched its mobile applications thereby offering its customers not just
another touch-point on its digital platform but one that customers can avail of to get an in-store
experience and feel and also for interacting with the staff as well.
What are the Omnichannel ways that we are we using and how we are using these channels to
reach out to the customers? One is the SPAR India website and the other is the ‘SPAR on
wheels’ initiative followed by the launch of our digital kiosk. The digital kiosk can work offline
anywhere and everywhere outside the store; this is one of the mode where customers can place
their orders and can get timely deliveries. We have also tied up with Amazon as our reach is only
in nine cities,”
INVENTORY MANAGEMENT
Daily Dump Report preparation - It is the report which shows the daily waste happened in
F&V Nonveg, Concept and Bakery department
DDR includes Ideal dump percent for each sub category, Target for every day and target
achieved percent on each day
Internal transfer report preparation and Internal transfer checking - This is a report that
includes transfer of products between one department to another within the store
CONTD...
INVENTORY PROCESS
• To safekeeping the stock and product it from any wear and tear
HANDLING
Discount (10%-50%)
Guarantee-Warranty
Bundling
PUBLIC RELATIONS
Media Information (Newspapers, magazines, radio and television are important channels
for communicating with customers, investors and the community. If you launch a new
product, for example, you can raise awareness and stimulate interest by issuing press
release to newspapers and magazines that reach your target market)
Social Media
MARKETING MIX
PRODUCT
PRICE
PROMOTION
o ADVERTISING
o Newspaper
o Television advt
o Radio ads
o Pamphlets
The lower level labors will be recruited through advertising, canvassing, issuing notice and
giving pamphlets. The existing employees of the company will be sent to do this kind of
canvassing work. Van will be arranged by the company itself.
They concentrate the rural areas to gather more labors to the company. They will be selected
according to their educational qualification and physical evaluation. Mostly they will be
appointed for the pre-processing work, settling and grading.
The middle level and the top level employees will be recruited through advertising in television,
newspaper, references etc. The applications from various applicants will be received and filtered.
While selecting them, experienced persons will be given first priority. At the time of selecting
the employees, they will evaluate on the basis of experience, package and whether they will
work for long term.
$ 0.03 $ 0.01
The increase in domestic gross profit margin compared to the same period last year was due to a
shift in our labor platform in the later part of 2018 and a more favorable mix of margin project
work year over year.
At March 31, 2019, cash and cash equivalents totaled $7.1 million. Working capital was $12.2
million and current ratio was 1.3 to 1. Total current assets and total assets were $57.4 million and
$77.0 million, respectively. Total liabilities were $51.1 million and total equity was $26.0
million at March 31, 2019
SPAR Group Financial Results for the Third Quarter Ended September 30,
2018
Highlights for the three and nine-month periods ended September 30, 2018, as compared to the
same periods in the prior year include:
Revenue for the three-month period ending September 30, 2018 increased $9.6 million,
or 20 percent, to $58.4 million. International operations contributed to $2.3 million of the
increase. Domestic operations contributed $7.3 million to year-over-year revenue growth
with Resource Plus contributing $8.0 million of the change in Domestic revenue for the
period.
Revenue for the nine-month period ending September 30, 2018 increased $40.8 million,
or 31 percent, to $172.2 million. International operations contributed to $18.6 of the
increase. Domestic operations contributed $22.2 million to year-over-year revenue
growth. Resource Plus contributed $19.9 million to the change in Domestic revenue
year-over-year.
Operating income for the third quarter increased $1.5 million to $2.3 million compared to
$828,000 during the same period last year. The increase in operating income in the third
quarter was attributable to both international and domestic operations.
Operating income for the nine months ended September 30, 2018 decreased $467,000, or
19 percent, to $1.8 million compared to $2.3 million during the same period of 2017.
The decline in operating income was driven primarily by the one-time charges of $2.0
million, partially offset by the growth in the international operations.
Net Income attributable to SPAR Group for the third quarter of 2018 was $621,000, or
$0.03 per share, compared to net income of $246,000, or $0.01 per diluted share, during
the third quarter of 2017.
Net loss attributable to SPAR Group for the nine months ended September 30, 2018 was
($1.0) million, or ($0.05) per share, compared to a net income of $346,000, or $0.02 per
diluted share, for the same period during 2017.
FINANCE DEPARTMENT
Finance plays a very important role in the day-to-day lives of each individual or
corporation. The importance of finance management is such that no one can ignore it and so,
here is an attempt to make you aware about the importance of finance in an economy, and how
good is financial health of the economy important for your well-being.
The finance department in this company is of utmost importance as they are responsible
for financial planning ensuring that adequate funds are available for achieving the objectives of
the organization. Moreover, it is the finance department which makes sure that the prices are
controlled, besides looking after the cash flow and controlling profitability levels. One of the
most important jobs of the finance department of this company is to identify the necessary
financial information which should be revealed to managers so that they can make informed
decisions and judgments. The department is also responsible for making financial documents and
preparing the final accounts so that they can be presented in the annual general meetings of this
company.
Here all the activities will be done under the control of the finance manager. Mostly in
every organization the expenses will somewhat in an equal ratio. But in this Company 90%
expenses is for purchasing and the remaining 10% is for the other administrative expenses. These
accounts will be maintained by the finance department. Nearly five to seven employees are
working in this department to maintain the accounts.
The following are some of the activities taken place in the finance department.
Marketing is “the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large”.
The marketing department must act as a guide and lead the company's other departments
in developing, producing, fulfilling, and servicing products or services for their customers.
Communication is vital. The marketing department typically has a better understanding of the
market and customer needs, but should not act independently of product development or
customer service. Marketing should be involved, and there should be a meeting of the minds,
whenever discussions are held regarding new product development or any customer-related
function of the company.
In this company the marketing activities will look after by the marketing manager and the
entire control will be with the Managing Director of the Company. The vehicles of the company
will be sent to various districts to collect the sea materials. There they will purchase them by
bargaining. A fixed rate of amount will be fixed by the MD of the company and the marketing
manager should not exceed the fixed rate. Then after the completion of entire production and
storage activities, the products are exported to various countries in different brand names.
The products are exported to Japan by using the sea route. First it reaches Srilanka and
then from there it will be sent to Japan. For that they will get a letter of credit. Totally it will take
40 days to move the products from Tuticorin to Japan.
In case of unexpected incidents, the company can claim the amount. These activities will be done
by the Marketing Manager.
4.3 HUMAN RESOURCE DEPARTMENT
Human resource management (HRM or simply HR) is the management of
an organization’s workforce, or human resources. It is responsible for
the attraction, selection, training, assessment, and rewarding of employees, while also overseeing
organizational leadership and culture, and ensuring compliance with employment and labor laws.
In circumstances where employees desire and are legally authorized to hold a collective
bargaining agreement, HR will typically also serve as the company's primary liaison with the
employees' representatives
SWOT ANALYSIS:
STRENGTHS
High brand-Equity in evolving retail markets.
More store space.
Point of purchase promotions to increase the purchase.
Variety of stuff under single roof increasing customer time and available `choices.
Low price & Advertisement.
Customer service desk.
WEAKNESSES
Unable to meet store opening targets.
Falling of revenue per square feet.
Weak R&D.
Unavailability of branded items.
OPPORTUNITY
International expansion
Evolving consumer preference in recent years.
Huge complexes offer shopping.
THREATS
Competitors, Global big players planning to foray into the markets.
Government policies are not well-defined in emerging markets like India.
Unorganized retail market of India.
1.4 OBJECTIVES
PRIMARY OBJECTIVE:
To find the promotional activities carried out by the SPAR HYPERMARKET
SECONDARY OBJECTIVE:
To find out the tools and techniques of promotions used in SPAR HYPERMARKET
To know the level of satisfaction of promotional activities carried out by the SPAR
HYPERMARKET
To identify the factors influencing to buy the product in SPAR HYPERMARKET
To give the suggestions to improve promotional activities over competitive markets
SUGGESTIONS
Can implement an auto display as in Wal-Mart, about the product to help the customers.
More branches should be open by the company for the customers to have better and easy
access.
Television is the main media through which the company can reach out to the people. So
advertisement can be given through TV media.
Customer Service need to be improved as it makes a good relationship between the
customers and stores which in turn will result in loyalty.
They have to improve the customer billing section transaction in stores.
To implement the foot wear section and increase a more brand product including
local and national brand products.
Company can improve the parking facilities for the customers
Company can offer some schemes to the customers
5.3 RECOMMENDATIONS