A Study On Consumer Bhaviour With reference to

VISAKHAPATNAM . A project report submitted in partial fulfillment of the requirement for The award of the degree in

Bachelor Of Business Management

Submitted by

A.BHARGAV (Regd.No:1214109107) Under the esteemed guidance of MS.P.SHOBA RANI

Asst . professor

VISAKHAPATNAM - 530 046. (2008-2010)

DECLARATION

hereby declare that this project work entitled CUSTOMER OF SPENCERS spencers hyper HYPER MARKET with market Pvt., Ltd., special Visakhapatnam

PERCEPTION reference to

submitted to JNT University, Kakinada in partial fulfillment for the award of Degree of MBA 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.

(Mr. B. Venkateswara Rao)

VIGNANS INSTITUTE OF INFORMATION TECHNOLOGY Approved by AICTE & Affiliated To JNT University, Kakinada) Duvvada, VISAKHAPATNAM- 530 046 DEPARTMENT OF MANAGEMENT STUDIES

Jyothirmayee M.B.A.,M.Phil.,(Ph.D) Dt.02-07-2010.

CERTIFICATE

This is to certify that the project report entitled CUSTOMER PERCEPTION OF SPENCERS HYPER MARKET With special reference to Spencers hyper market Pvt., Ltd,. Visakhapatnam is being submitted by Mr. B.Venkateswara Rao in partial fulfillment for the award of the Degree of MBA has been carried out by him under my guidance and supervision.

Ms. Jyothrimayee (Project Guide)

ACKNOWLEDGEMENT

I express my sincere thanks to the Head of the Department & my project guide Ms. Jyothrimayee , for her valuable guidance and cooperation throughout the project work and all other faculty members

who helped me directly and indirectly for the successful completion of my project work. I am also thankful to our beloved principal Prof. A. Ramjee for

giving me the permission to carryout the project work. I also express my gratitude and heartfelt thanks to my company guide, Mr.Srikar, Marketing Regional Manager, Spencers Hyper Market Pvt., Ltd., Visakhapatnam, who extended their cooperation and timely support and providing necessary data for early completion of my project work. Finally I would like to express my sincere thanks to my parents and friends whose unremarkable encouragement had helped me throughout my educational endeavor and to do this project work.

(Mr.B.Venkat eswara Rao)

CONTENTS CHAPTER-1 : INTRODUCTION Need for the Study Objectives of the Study Scope of the study

 Methodology of the Study Limitations of the study CHAPTER-2 : COMPANY PROFILE

CHAPTER-3 PERCEPTION CHAPTER-4 CHAPTER-5

THEORITICAL

STUDY

OF

CUSTOMER

: :

DATA ANALYSIS AND INTERPRETATION FINDINGS AND SUGGESTIONS Findings Suggestions Conclusion

BIBLIOGRAPHY QUESTIONNAIRE

INTRODUCTION

Retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of nonbranded items.

India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort. Global retail giants are also entering the retail industry in India and this is also one of the factors in the growth of the organized retail sector in India. Ex: Wal-Mart, Tisco

NEED FOR THE STUDY Marketing is a domain which is dynamic i.e. involves change, an important phenomenon not to be overlooked. We have come across a term Unique Selling Proposition(USP) which companies feel as a constant

factor . Every organisation is an open system of management which means change is inevitable and is associated with environmental factors. Companies need to focus not only on USP of their products but also on the Unique Customer Perception(UCP) of the final end users. The prop of marketing is based on the need identification and the USP's are prepared based on the identified needs . If the needs are wrongly identified then even the USP's which are unique to the product would not serve the purpose. USP identifies a product/service from its competitors while UCP is the perception or picture a customer develops from all types of promotional inputs from the company about their product or service. It is often seen that some brands do extremely well compared to other brands having the same resources. The reason for the brands not to do well is probably the communications which does not reflect the customers perception. So it is not the USP but UCP that plays an important role .This has lead to the concept - Customer Perception is the Rule and not Customer Satisfaction. Measuring customer satisfaction is a relatively new concept to many companies that have been focused exclusively on income statements and balance sheets. Companies now recognize that the new global economy has changed things forever. Increased competition, crowded markets with little product differentiation and years of continual sales growth followed by two decades of flattened sales curves have indicated to today's sharp competitors that their focus must change.

OBJECTIVE OF THE STUDY

1. To

study the customer opinion about the spencers products

2 . To realize the customer perception Regarding the price, taste and availability regarding the products

3. To understand, to what extant print Ads can influence the customer to purchase the Spencers products

4. To identify factors that can maximize the sales of spencers products

5. To analyses the market and to ascertain the relative performance of different brand of products.

6. To suggest the company to further improvement.

SCOPE OF THE STUDY

Indian Retailing industry offers opportunities to entrepreneurs worldwide who wish to capitalize on one of the worlds largest and fast growing markets for retailing operations and business.

Hence this topic is chosen to have comprehensive idea on branding, brand awareness and its practices of Spencers hyper market under RPG enterprises in Visakhapatnam.

METHODOLOGY

For this study the data is collected from two sources i.e. primary and secondary sources. The data is collected form observation method. The data so collected has being subjected to analysis with the help of simple percentile method and at the stage of interpretation; the data collected from observation method has also been employed.

PRIMARY DATA:

Primary data consists of original information collected for specific purpose. To obtain primary data, a well-structured, pilot tested schedule was prepared and the respondents are met personally to get response. One hundred Eighty consumers were randomly selected and interviewed in the vizag.

SECONDARY DATA:

Secondary data consists of information that already exists somewhere having been collected for some other purpose. In this study, the secondary data is collected from company manuals, broachers, catalogues, websites, magazine, journals etc. the collected data from various sources is subjected to analysis and interpretation with the help of suitable simple percentile method and presented in a structured frame work consisting of pie charts, various graphs and bar charts wherever applicable. LIMITATIONS OF THE STUDY

Some customers are reluctant to share their information Only Visakhapatnam was covered during the course of study and hence the data collected may not be applicable to entire universe.

The sample size was only one hundred customers, which is relatively small for the objectives of the study.

chosen.

There could have been a lack of homogeneity in the sample

Time was a constraint there was limited only to 9 weeks and its difficulty in interviewing the respondents.

The respondents opinions may be biased on account of some inherent limitations in the schedule.

CHAPTER-II

Organizational Study It's a business that's been around for ever, and always will be, because as long as people are willing to pay for something they want and need, you

can guarantee that there will always be somebody willing and able to sell it to them. The history of retail has included countless ways in which retailers have attempted to get their products in front of the consumer. But it seems that the businesses that have provided their customers with the most convenience have generally proven to be the most successful. For centuries, most retail sales were made by the street vendor or the small family owned shop, which provided their customers with the convenience of not having to grow their own food or make their own clothes. By the mid nineteenth century, most of the goods that we find in today's superstores were supplied by craftsmen or local manufacturers who dealt directly with their customers. Needed, not to mention that they probably had to travel all over town to get their shopping done. As manufacturing methods improved, and as the road and rail transport network extended, there developed specialist manufacturers who needed retail stores to sell their goods. Over time, the small retail store concept grew, and by the mid 1950's small stores blanketed every high street. While most people loved the individual attention and great service that the small store provided, it became more and more difficult for the small store to offer the kind of prices and selection that the consumer really. The next big revolution in retailing was the emergence of the retail chains, and later the superstores. The consumer of the 70's demanded the convenience of having their favorite stores in one enclosed location where they could easily hop from store to store without having to concern them about the weather.

This shopping mall concept was quickly embraced by the consumer, but unfortunately the crowds and traffic of today's mega malls can often turn what should have been a convenient and comfortable shopping experience into a mission of hand-to-hand combat! In recent years, the mail order business has experienced some of the most impressive growth, which would also seem to echo the continuing consumer demand for convenience. Most retailers are recognizing that they simply have to offer their customers the ability to order products or services from the comfort of their own home or office in order to compete in today's retail marketplace.

RETAILING INDUSTRY IN INDIA Retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail

industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of nonbranded items.

India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort. Global retail giants are also entering the retail industry in India and this is also one of the factors in the growth of the organized retail sector in India. Ex: Wal-Mart, Tisco

INDIA IS A GROWING MARKET FOR RETAILING INDUSTRY The scope of the Indian retail market is immense for this sector is poised for the highest growth in the next 5 years. The India retail industry

contributes 10% of the countries GDP and its current growth rate is 8.5%. In the Indian retail market the scope for growth can be seen from the fact that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005. The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year 2010. There are under construction at present around 325 departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth in the Indian retail market. This led to increase in foreign direct investments Global retail giants are also entering the retail industry in India and this is also one of the factors in the growth of the organized retail sector in India. The global retail giants who are entering the organized retail sector in India are: Wal-Mart, Tosco, Carrefour SA, Metro AG.

CHALLENGES FACING THE INDIAN ORGANIZED RETAIL SECTOR

The challenges facing the Indian organized retail sector are various and these are stopping the Indian retail industry from reaching its full potential. The behavior pattern of the Indian consumer has undergone a major change. This has happened for the Indian consumer is earning more now, western influences, and women working force is increasing, desire for luxury items and better quality. He now wants to eat, shop, and get entertained under the same roof. All these have lead the Indian organized retail sector to give more in order to satisfy the Indian customer. The biggest challenge facing the Indian organized retail sector is the lack of retail space. With real estate prices escalating due to increase in demand from the Indian organized retail sector, it is posing a challenge to its growth. With Indian retailers having to shell out more for retail space it is effecting there overall profitability in retail. Trained manpower shortage is a challenge facing the organized retail sector in India. The Indian retailers have difficultly in finding trained person and also have to pay more in order to retain them. This again brings down the Indian retailers profit levels. The Indian government has allowed 51% foreign direct investment (FDI) in the India retail sector to one-brand shops only. This has made the entry of global retail giants to organized retail sector in India difficult. This is a challenge being faced by the Indian organized retail sector. But the global retail giants like Tisco, Wal-Mart, and Metro AG are entering the organized retail sector in India indirectly through franchisee agreement and cash and carry wholesale trading. Many Indian companies

are also entering the Indian organized retail sector like Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing stiff competition from these global retail giants. As a result disco becoming accepted practices. This too brings down the profit of the Indian retailers. Some of the reasons for this slow growth are: 1. Retail not being recognized as an industry in India. 2. The high costs of real estate 3. High stamp duty. 4. Lack of adequate infrastructure. 5. Multiple and complex taxation system.

CHALLENGES FACED BY GLOBAL RETAILERS The emergence of new markets: Asia, especially India and china are the emerging market places. The technological and transportation and industrial revolutions of the past two decades have changed much of that. The empowered consumer: Retaining the consumer is far more difficult today than it was a decade ago. Consumer lifestyles and demographics are changing rapidly. Spending power is increasing and technology is aiding consumers in making sound shopping decisions. Technology enabled efficiencies: Technology has enabled business and consumers to build efficiencies on the basics of the ability to receive and transmit data, at a fast speed. This information has today become critical for achieving efficiencies in all aspects of retailing. The rise of the e-age: The emergence of Internet retailing or e-retailing has been a key driver of change in retail. The increase in the number of Internet users not in developed markets but also globally, has placed new demands on retailers. Online shopping facilitated by auction sites are the new retailers of retail. Comparison- shopping is a new reality of the e-age.

TOP 10 RETAILERS IN THE WORLD

Rank

Retailer Wal-Mart Stores, Inc. Carrefour Group The Kroger Co Metro AG. The Home Depot, Inc. Albertsons, Inc ITM Enterprises,SA Sears, Roebuck and Co Kmart Corporation Target Corporation

Home Country

Sales in US$ Millions

1 2 3 4 5 6 7 8 9 10

USA FRA USA GER USA USA FRA USA USA USA

$1,63,532 $52,196 $45,352 $44,163 $38,434 $37,478 $36,762 $36,728 $35,925 $33,702

Web site: www.worldb2blink.com/worldtop100retailers.htm

A SNAP SHOT OF RETAIL PLAYERS PROFILE IN INDIA SPENCERS RETAIL PIRAMYD RETAIL SHOPPERS STOP FUTURE GROUP

 RELIANCE RETAIL TRENT SPENCERS RETAIL:RETAIL VENTURE: Spencers Retail Limited is a multi-format retailer providing a wide range of quality products to discerning young customers well-traveled citizens of the world, looking out for authentic flavors and experiences in a fun-filled shopping environment. Spencers brand positioning Taste the World embodies this approach, delighting shoppers with the best that the world has to offer in terms of interiors, ambience and merchandise. Part of the Rs. 15,500 crore RPG Group, they run about 250 stores (including about 29 large format stores) across 50 cities in India, employing more than 6,000 people. As one of the earliest entrants in the retail space in India, they have been instrumental in introducing Indian consumers to the concept of organized retailing, becoming the countrys first grocery chain back in 1920, and offering the joys of hypermarket shopping in 2001 at Hyderabad. A food first retailer they offer both fresh and packaged foods as well as groceries. They also have a wide selection of electronics and electrical equipment, home and office essentials, garments and fashion accessories, toys, and personal care. LEADERSHIP: Sanjiv Goenka, Vice Chairman; J.H.Mehta, President. CURRENT STATUS: It operates 250 stores spread in 50 cities.

FUTURE PLANS: Spencers is also looking at expanding the US-based Beverly Hills Polo Club (BHPC) brand, with which Spencers Retail had tied-up last year. It will raise the number of BHPC standalone stores to 10 in the next six months from three at present. They are also planning to invest Rs 100 crore this year on expanding their retail business. This will cover both the BHPC brands as well as 10 12 large format Spencers stores they plan to open during next six months.

PIRAMYD RETAIL:RETAIL VENTURE: The Piramals owned Pyramid, which in 1999 pioneered the countrys first modern shopping Mall Crossroads at Tardeo in Mumbai, and which currently operates over 42 stores under two retail chains Pyramid Megastore (life style-large format) and Trumart (convenience, grocery-small format), have decided to sell both the retail chains to Indiabulls Wholesale Services, a wholly owned subsidiary of Indiabulls Real Estate (IBREL) Limited. These stores employ 1,300 persons and occupy over a million sq.ft.of retail space.

LEADERSHIP: Nandan primal, Managing Director: Bipin gurnani, chief operating officer.

CURRENT STATUS: Piramyd is operating 42 stores across India. FUTURE PLANS: Its plans to open 10-12 more Trumart outlets by this year. SHOPPERS STOP:RETAIL VENTURE: Owned by the diversified realty to retail conglomerate, the K Raheja Group, Shoppers stop was set up in 1991 and is one of the first operators in the modern retailing sector in the country. LEADERSHIP: B.S.Nagesh, Customer care associate and Managing Director; Govind Shrikhande, Customer care associate and chief executive officer. CURRENT STATUS: This premium outlet is present in 12 cities with 27 outlets either as a part of a mall or as exclusive stores. There are different stores belongs to Shoppers Stop. They are Crossword Bookstores, Home Stop, Brio, Desi Caf, Hyper city, M.A.C., Arcelia, Mother Care, Nuance Group, HyperCityArgos, and Timezone. FUTURE PLANS: The group plans to extend the number of its departmental stores from 20 to 48 in about 3 years.

FUTURE GROUP:RETAIL VENTURE: Future Group founded in 1987 as Manz wear, the company made a foray into modern retail in august 1997 with the launch of its first departmental store for premium apparel. Pantaloons in Calcutta. Future Groups retail network touches the lives of more than 200 million Indians in 71 cities and 65 rural locations across the country. LEADERSHIP: Kishore Biyani, CEO and MD; Rajan malhotra, Head, Big Bazaar; Damodar mall, President and CEO Food bazaar. CURRENT STATUS: The company is spread in 71 cities and 65 rural locations across the country. The group currently operates around 1,000 stores spread over 12 million square feet of retail space. FUTURE PLANS: Kishore Biyanis Future Group has plans to start selling its private labels, including in apparels, food and groceries, to kirana stores in rural and semi-urban areas in the second half of this year, according to a top company executive. The Future Group plans to open 1,500 more stores in the next 18 months. It plans to grow its rural retail venture, Aadhaar, in 800 towns and villages in the country in the next couple of years from around 60 towns at present.

RELIANCE RETAIL:RETAIL VENTURE: The foray of the largest corporate Reliance industries into the retail arena this year through Reliance Fresh in Hyderabad on November 3rd. It was first from the 25000 crore investment committed for retail. LEADERSHIP: Mukesh Ambani, Promoter; Raghu Pilai, President Strategy. CURRENT STATUS: Already opened 22 stores in Hyderabad and Jaipur. FUTURE PLANS: Reliance retail plans to establish 4000 outlets across various formats in next 5 years and is eyeing sales of rupees 1-lakh-crore over this period.

TRENT:RETAIL VENTURE: The salt-to-software corporate conglomerate TATA Group entered the modern arena way back in 1998. When it opened its outlet Trent in Bangalore in that year. Today Trent operates in three formats- Westside, Landmark and Star India Bazaar. LEADERSHIP: Noel TATA, MD; Neeti chopra, Head, Marketing (Westside). CURRENT STATUS: Westside has more than 20 outlets spread in Bangalore, Hyderabad, Chennai, Mumbai, Pune, and Delhi & Kolkata. FUTURE PLANS: The TATA Group, through its retail brand Proma, is set to enter the Electronics and Consumer Durable market.

RETAIL TRADE FORMATS The Retail Trade sector comprises establishments engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The retailing process is the final step in the distribution of merchandise. Retailers are therefore organized to sell merchandise in small quantities to the general public. This sector comprises two main types of retailers: Store retailers Non store retailers STORE RETAILERS:Operate fixed point-of-sale locations, located and designed to attract a high volume of walk-in customers. In general, retail stores have extensive displays of merchandise and use mass-media advertising to attract customers. They typically sell merchandise to the general public for personal or household consumption, but some also serve business and institutional clients. These include establishments such as office supply stores, computer and software stores, building materials dealers, plumbing supply stores and electrical supply stores. Catalog showrooms, gasoline service stations, automotive dealers and mobile home dealers are treated as store retailers. In addition to retailing merchandise, some types of store retailers are also engaged in the provision of after-sales services, such as repair and installation. For example, new automobile dealers, electronics and appliance stores, musical instrument and supplies stores often provide repair services. As a general rule, establishments engaged in retailing merchandise and providing after-sales services are classified in this sector.

NON STORE RETAILERS:Non-store retailers, like store retailers, are organized to serve the general public, but their retailing methods differ. The establishments of this sub sector reach customers and market merchandise with methods, such as the broadcasting of infomercials, the broadcasting and publishing of direct-response advertising, the publishing of paper and electronic catalogs, door-to-door solicitation, in-home demonstration, selling from portable stalls (street vendors, except food) and distribution through vending machines. Establishments engaged in the direct sale (non-store) of products, such as home heating oil dealers and home delivery newspaper routes are included here. The buying of goods for resale is a characteristic of retail trade establishments that particularly distinguishes them from establishments in the agriculture, manufacturing and construction industries. For example, farms that sell their products at or from the point of production are not classified in retail, but rather in agriculture. Similarly, establishments that both manufacture and sell their products to the general public are not classified in retail, but rather in manufacturing.

FORMATS IN DETAIL CONVENIENCE STORES: This industry comprises establishments known as convenience stores or food marts primarily engaged in retailing a limited line of goods that generally includes milk, bread, soda and snacks in a 2000 to 3000 square foot store with speedy check out. They are the modern version of the neighborhood mom-and-pop grocery/general store. DEPARTMENT STORES: This industry group comprises establishments known as department stores primarily engaged in retailing a wide range of the following new products with no one merchandise line predominating: apparel; furniture; appliances and home furnishings; and selected additional items, such as paint, hardware, toiletries, cosmetics, photographic equipment, jewelry, toys, and sporting goods. Merchandise lines are normally arranged in separate departments. DISCOUNT STORES: This industry comprises establishments known as department stores that have central customer checkout areas, generally in the front of the store. Department stores in this industry offer a wide range of general merchandise (except fresh, perishable foods), limited service and low prices. SPECIALITY STORES: This industry concentrates on a limited number of complementary merchandise categories and provides a high level of service in an area typically less than 8000 square feet. In recent years, a specialty apparel store has been one of the weakest, slowest-growing areas in retailing.

CATEGORY KILLERS: This industry is much nearer to discount store that offers a narrow variety but deep assortment of merchandise. These retailers are basically discount specialty stores. Most category specialists use a self-service approach, but some specialists in consumer durables offer assistance to customers. SUPER CENTERS: This industry offers a wide variety of food and nonfood merchandise. They are the fastest growing retail category. Super centers stock between 100,000 and 150,000 individual items (SKUs). The store generally is spread across 150,000 to 220,000 square foot. HYPER MARKETS: This industry is large combination food and general merchandise retailers. They typically stock less than super centers, between 40,000 and 60,000 items ranging from groceries, hardware, and sports equipment, to furniture and appliances, to computers and electronics. The store generally is spread across 100,000 to 300,000 square foot.

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

RPG Enterprises is run by a Management Board headed by Mr. R. P. Goenka, Chairman Emeritus, Mr. Harsh Goenka, Chairman and Mr. Sanjiv Goenka, Vice-Chairman. The Management Board comprises of highly qualified and experienced professionals in their respective fields. HISTORY: The history of RPG began in 1820 when Ramdutt Goenka, from a small town in Rajasthan, came to Calcutta to do business with the British East India Company. The following milestones speak of his enterprising efforts, and the subsequent growth of the RPG group

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.

RPG ORGANIZATIONAL EXCELLENCE AWARDS

The RPG Organizational Excellence Awards were introduced in 1999, to encourage higher levels of business excellence among the groups companies. These awards motivate the companies to instill quality control measures in all their processes. The awards also generate a healthy competitive environment, encouraging the companies to excel. The RPG quality awards are given to group companies (in the manufacturing or the service categories) that exhibit outstanding levels of organizational excellence. Each company is assessed on predetermined criteria for RPGs quality and organizational excellence awards, every year. The Best TQM Team and Best TQM Facilitator awards are given to encourage and appreciate improvement efforts at team and individual levels.

The introduction of the awards has been effective in creating a better working environment by: Providing direction and creating a uniform excellence culture throughout the group Recognizing contributions made by individual units Motivating the management and employees to work toward continuous improvement Improving company performance, based on the sound approach of strategy,

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 International, Butibori 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-A04C81F5878FFAE9ArtVPF.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 networks more positively. (Source: Nielsen Media)

40%

Consumers are 34% more predisposed to buy products advertised on in-store media network. (Source: India retail report 2005) In-store advertising has 57% Brand Recall as compared to 24% for TV Ads. (Source: Nielsen Media) Consumers watch in-store media advertising on an average of 7 minutes per visit. Variety of branding options (Hyper, Daily / Supers) for the clients and a controlled environment for in-store promotions. We deliver the lowest OTC cost and ensure minimum media wastage.

Branding/visibility options for Spencers hyper stores

Hoardings

Gondola-End visibility

Back-lit boards.

Drop down scroll boards

 Trolley / Basket branding

Carry Bag branding

In store - promoters

Playing pre-recorded ads in the TVs.

Standalone Scrollers

Pull downs and banners

Display panels on the wall

Product Displays

Bill Roll branding

Kiosks

Promo tables Audio Jingles

 Carry bag insertions

Cash till boards

Glass Windows

VISION & CORE VALUES

What is it that defines RPG Enterprises success and carries it on through generations? The set of values and the visionary focus of its leaders, which forms the distinct identity of RPG Enterprises, is what constitute its business drivers.

Its Vision and Core Values are:

We shall be a leading Indian Group with a focus on market capitalization through:

Leadership in profitability and revenue growth in our chosen businesses.

 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-III

THEORITICIAL FRAME WORK

INTRODUCTION TO MARKETING

In this chapter various aspects of the study are going to be discussed. To which area of management does the study belongs to- and various concepts that are related the area of study. The present study comes under marketing and deals in specific with the distribution network and its management.

MAIN SUBJECT

Todays companies must urgently and critically rethink their business mission and marketing strategies. Instead of operating in market place of fixed and known competitors and stable consumers preferences, todays companies work in a war zone of rapidly changing competitors, technological advances. News laws, managed trade policies, and diminishing customer loyalty.

Companies find themselves competing in a race where the world sign and rules keep changing, where there is no finish line, no permanent win. They simply must keep racing ; hopefully in a direction where the public wants those to go in the days when it was Business as usual, companies could succeed by producing and supporting them with hard selling and heavy advertising. This was called Marketing.

Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas and services to create exchange that satisfy individual and organizational goals.

INTRODUCTION TO MARKETING

Marketing is a social and managerial process by which individual and groups obtained what they need and want through creating and offering & exchanging products and values with others

MARKETING MIX Definition: Marketing mix is the combination of elements that you will use to market your product. There are four elements: Product, Place, Price and Promotion. They are called the four Ps of the marketing mix

MARKETING MIX Some people think that the four Ps are old fashionable and propose a new paradigm: The four Cs! Product becomes customer needs; Place becomes convenience, price is replaced by cost to the user, promotion becomes communication. It looks like a joke but the Cs is more customer-oriented. 1. Challenge 2. Product 3. Place 4. Price 5. Promotion 6. Sales strategy 7. Do it yourself 8. Coaching

2-PRODUCT A good product makes its marketing by itself because it gives benefits to the customer. We can expect that you have right now a clear idea about the benefits your product can offer. Suppose now that the competitors products offer the same benefits, same quality, same price. You have then to differentiate your product with design, features, packaging, services, warranties, return and so on. In general, differentiation is mainly related to: -The design: it can be a decisive advantage but it changes with fads. For example, a fun board must offer a good and fashionable design adapted to young people. -The packaging: It must provides a better appearance and a convenient use. In food business, products often differ only by packaging. -The safety: It does not concern fun board but it matters very much for products used by kids.

-The "green": A friendly product to environment gets an advantage among some segments. In business to business and for expensive items, the best mean of differentiation are warranties, return policy, maintenance service, time payments and financial and insurance services linked to the product. 1. Challenge 2. Product 3. Place 4. Price 5. Promotion 6. Sales strategy 7. Do it yourself 8. Coaching

3-PLACE-DISTRIBUTION A crucial decision in any marketing mix is to correctly identify the distribution channels. The question " how to reach the customer" must always be in your mind. -Definition: The place is where you can expect to find your customer and consequently, where the sale is realized. Knowing this place, you have to look for a distribution channel in order to reach your customer. In fact, instead of "place" it would be better to use the word "distribution" but the MBA lingo uses "place" to memorize the 4 Ps of the marketing mix! Channels It exists today, with the internet, more channels than in the past but basically, you have to consider three main distribution channels: -Selling to the customers: Whether you sell by yourself ( as retailer) whether you employ a sales force, you are in these cases in front of the final customer. There are not intermediaries between you and him. Unfortunately, except for the retailer business, this situation is far to be the general case.

-Selling to the retailers: For example, you manufacture the fun boards and you sell them to the Arizona retailers. This practice could be a bit complicated. -Selling to the wholesalers: There are maybe four or five sport articles wholesalers in Arizona. You sell your fun boards to these big men. On turn the wholesalers sell the fun boards to the retailers which finally sell to their customers. In the case of Pacific Boat which manufactures its boats in Philippines for customers located in the USA or in Europe, there is not alternative ways. It must sell through some big import export corporate's. Pacific boat has not any contact with its final customers but of course it must know exactly their profile. If the product does not fit to the profile of the final customer, the wholesaler will not buy it. As you can see, the choice of your distribution channel heavily depends on your product and place in the productive process. If you are in coal mining, do not expect to sell some coal buckets to the final consumer! The next drawing summarizes the different possible channels: You are represented by the black square, the wholesaler by the maroon one, the retailer by the yellow and the customer by the green!

Real life example: A commodity is a product such as crude oil, coal, rice, wheat, sugar, copper and so on: Mainly primary products and raw materials. In a commodity market, the products have very few distinguished characteristics. They are traded in few places like Chicago and London. In the rice market, there are maybe six or seven big traders for the entire world in front of some hundred millions of little producers grouped in cooperatives or primary marketing boards. The big traders know each other very well and most of the bargain relies on trust. PRICE Price is the one element of the marketing mix that produce revenue, the other elements produce costs. Prices are the easiest marketing mix element to adjust, product features, channels, and even promotion take more time. Price also communicate to the markets the companys intended value position-ing of its product or brand.

Pricing strategies In fact, you have to choose between three strategies: -Competitive pricing: If your product is sold at the lowest price regarding all your competitors, you are practicing competitive pricing. Sometimes,

competitive pricing is essential. For instance, when the products are basically the same, this strategy will usually succeed. Remember that the success of competitive pricing strategy depends on achieving high volume and low costs. If your prices are lower than your costs, you are going straight to bankruptcy! To avoid such a mistake, you have to take notice of the break even ratio that you will find below. -Cost-plus-profit: It means that you add the profit you need to your cost. It is also called cost-orientated strategy and is mainly used by the big contractor of public works. The authority may have access to the costing data and should like to check if the profit added to the cost is not too high. In fact, this strategy is only good for a business whom the customers are public collectivities or government agencies. -Value pricing: It means that you base your prices on the value you deliver to customers. For example, when a new technology has a very large success, you can charge high prices to the customer. This practice is also called skimming. It is easy when you are in the introductory phase of the product life cycle. Value pricing is also common in luxury items. Sometimes, the higher the price, the more you sell: Fashionable clothing or restaurants for snob people. Of course value pricing is limited by the price elasticity as you have already learnt in Economics. The diagram below illustrates how you have to determine your price. You could see that a conflict could arise between your financial objectives ( the expected profit) and your actual costs.

PROMOTION Advertising, public relations and so on are included in promotion and consequently in the 4Ps. Sometimes, packaging becomes a fifth P. As promotion is closely linked to the sales, I will mention here the most common features about the sale strategy. -Definition: The function of promotion is to affect the customer behavior in order to close a sale. Of course, it must be consistent with the buying process described in the consumer analysis. Promotion includes mainly three topics: advertisement, public relations, and sales promotions. -Advertisement: It takes many forms: TV, radio, internet, newspapers, yellow pages, and so on. You have to take notice about three important notions:

Reach is the percentage of the target market which is affected by your advertisement. For example, if you advertise on radio you must know how many people belonging to your segment can be affected. Frequency is the number of time a person is exposed to your message. It is said that a person must be exposed seven times to the message before to be aware of it. Reach*frequency gives the gross rating point. You have to evaluate it before any advertisement campaign. Message: Sometimes, it is called a creative. Anyway, the message must: get attraction, capture interest, create desire and finally require action that is to say close the sale. Down-earth-advice: There are some magical words that you can use in any message: -Your-You--I-Me-My--Now-Today -Fast-Easy-Cool-New-Fun-Updated-Free-Exciting-Astonishing -Success-Love-Money-Comfort-Protection-Freedom-Luck.

-Public relations: Public relations are more subtle and rely mainly on your own personality. For example, you can deliver public speeches on subjects such as economics, geoeconomics, futurology to several organizations (civic groups, political groups, fraternal organizations, professional associations)

These speeches will enable you to develop new relationships and their cost is nil! -Sales promotion: It includes fair trades, coupons, discounts and are linked to the sales strategy. SALES STRATEGY Sales bring in the money. Salesmen are directly exposed to the pressure of finding prospects, making deals, beating competition and bringing money. You have first to learn some definitions used by the MBA lingo: Definitions: A lead is a person who has been identified as a prospect. A prospect is a potential customer. An account is a customer that often buys from the company. A national account is a very big customer An order taking: the customer asks for a product and the vendor sells it. It's usual way to sell candy, soda or to sell tickets for theater. On the contrary, active selling involves locating customers and persuading them to buy. Inside sales refers to selling done mainly by phone or by internet. Outside sales involves getting appointment to meet customers at their home. Home cold calling means to phone people you do not know. Hard sell means to use of high pressures upon the prospect.

We have then to distinguish the sale process and the sale organization. The sales process: It depends heavily on the buying process. It includes prospecting and persuading. Prospecting involves finding the leads and presenting the product. After making contact, the salesman must show that the product solves a customer's problem. He must also answer two questions : - Has the prospect a need or an interest in the product ? - Does the prospect have the money to buy the product ? If the prospect does not meet these criteria, you have better to move on to the next prospect ! Persuading and authority are often necessary to close a sale. The salesman's approach is often to rise questions in order to lead the prospect to a logical conclusion : I must buy now.

The four Ps, product, place, price and promotion are the elements of the marketing mix used to establish a detailed and final marketing plan. After the product which is a paramount, the place is very important because it describes how you reach the consumer and what distribution channel you are going to choose: Margins and image are quite important features in this matter.

According to your product and place , the pricing strategy will have heavy consequences on the promotion campaign and on success or failure of your business as a whole PERCEPTION Perception is the process by which an individual interpret various stimuli received and forms a meaning full picture of the word.

PERCEPTION PROCESS

EXPLORE Exposure occurs when our sensory receptors detect a stimulus Implication for marketers:

Consumers must be exposed to your marketing efforts for them to perceive anything Ad placement - being in the right place at the right time!! Road blocking - catch them at every corner: Ads on competing channels Use multiple media

ATTENTION

 Exposure occurs when our sensory receptors detect a stimulus Implication for marketers:

Consumers must be exposed to your marketing efforts for them to perceive anything Ad placement - being in the right place at the right time!! Road blocking - catch them at every corner: Ads on competing channels Use multiple media

INTERPRETATION

Interpretation occurs when consumers give meaning to the incoming stimulus information

Information is subject to:

Cognitive interpretation - the process of adding meaning from existing knowledge Affective interpretation - the processing of information and adding meaning based on feelings

Influences on interpretation: Individual characteristics Stimulus factors Situational factors The way the information is presented

CHAPTER-IV

1)Occupation of the respondent

Particulars Employee Self employed Home maker Student Total

No. of respondets 51 8 10 31 100

Percentage of respondents 51 8 10 31 100

60 50 40 30 20 10 0 Employee Self employed Home maker Student Series1

INTERPRETATION:

From the above table it shows the 51% of the respondents are employees, 31% of the responders are students, 10% of the respondents are home maker and the remaining 8% of the responders are self employed. 2) Why do you like to purchase in spencers market?

Particulars Quality products overall ambience Affordable prices monthly offers Total

No. of respondets 22 44 12 22 100

Percentage of respondents 22 44 12 22 100

INTERPRETATION: From the above table is shown the 22% of quality products and 44% of overall ambience and affordable prices are 12% and 22% of monthly offers,

3) Which communication channel makes you to recall Spencers?

Particulars Ads on print media Positive word of mouth Ads on electronic media Satisfaction from the previous purchase Total

No. of respondets 12 38 11 39

Percentage of respondents 12 38 11 39

100

100

4 5

4 0

3 5

3 0

2 5 S rie 1 e s 2 0

1 5

1 0

0 A s o p t d n rin md e ia P s ew rdo o itiv o f mu o th A s o d n e c n le tro ic md e ia S tis c n a fa tio fro th m e p v u re io s p rc a e u hs

INTERPRETATION: From the above table shown the 12% of Ads on print media and 38% of positive word of mouth, & 11% of Ads on electronic media, the remaining 39% of satisfaction from the previous purchase.

4) Which paper do you read?

Particulars The Hindu Eenadu Sakshi Decan chronicle Total

No. of respondets 32 35 30 3 100

Percentage of respondents 32 35 30 3 100

40 35 30 25 20 15 10 5 0 The Hindu Eenadu Sakshi Decan chronicle Series1

INTERPRETATION; From the above table shows the32% of Hindu and Eenadu 35% and Sakshi is 30% and the remaining 3% is Deccan chronicle.

5) Which F.M do you listen?

Particulars 93.5/Red fm 92.7/Big fm

No. of respondets 32 38 18 12 100

Percentage of respondents 32 38 18 12 100

98.3/Radio mirchi 91.1/Radio city Total

40 35 30 25 20 15 10 5
ch i

Series1

0
fm fm d ig .5 /R e .7 /B di o

m ir

.3 /R a

93

INTERPRETATION; From the above table shown 32% of Red fm and 38% of Big fm,18% of Radio mirchi the remaining 12% is Radio city.

98

91

.1 /R a

92

di o

ci ty

6) Which (TV) channel do you most watch ?

Particulars Local channels National channels News channels Music channels Total

No. of respondets 16 35 30 19 100

Percentage of respondents 16 35 30 19 100

40 35 30 25 20 15 10 5 0 Local National New s Music channels channels channels channels Series1

INTERPRETATION; It is noticed that majority of the respondents prefer 35% of national channels and 30% of news channels,19% of music channels the remaining 16% peoples are watching local channels .

7) Do you know about our monthly & weekly promotions if yes please tick on the from the below?

Particulars Coolmela offer Hara bhara offer Mango fest Anniversary offer Total

No. of respondets 29 25 27 19 100

Percentage of respondents 29 25 27 19 100

35 30 25 20 15 10 5 0
Co ol m ela of fe r Ha ra bh ar ao ffe r Ma ng o fe An st ni ve rs ar yo ffe r

Series 1

INTERPRETATION; Most of the respondents are quite happy and satisfied with the kool mela offer in terms of reasonable price, installations, and other related benefits such as servicing, etc........

8) Which media reach you? Particulars Print media Electronic media Total No. of respondets 66 34 100 Percentage of respondents 66 34 100

70 60 50 40 Series1 30 20 10 0 Print media Electronicmedia

INTERPRETATION; Print media is the pioneer and stands on top despite of electronic media grow thing stage, in creating awareness among customers followed by event sponsoring, hoardings and sky writings.

9) Are our internal communication & announcement reaching you? Particulars Yes No Veryrarely Frequently Total No. of respondets 25 16 50 9 100 Percentage of respondents 25 16 50 9 100

60 50 40 30 20 10 0 Yes No Veryrarely Frequently Series1

INTERPRETATION; It is observed that majority of the respondents are not getting the internal announcement.

10) Do you feel comfortable with the communication given through (pops) point of purchases?

Particulars Yes No Total

No. of respondets 88 12 100

Percentage of respondents 88 12 100

100 90 80 70 60 50 40 30 20 10 0 Yes No Series1

INTERPRETATION; Majority of the respondents conveyed they pretty well like the communication given through (pops) point of purchase.

11) Do you think the sales force at Spencers provide you service with ease?

Particulars stronglyagree Agree Disagree Strongly disagree Total

No. of respondets 27 56 9 8 100

Percentage of respondents 27 56 9 8 100

60 50 40 30 20 10 0 strongly agree Agree Series1

INTERPRETATION; Majority of the respondents conveyed that they are happy the way receiving at the particular shopping .

12) Do you think Spencers is a one stop shopping destination, as it provides all under one roof?

Particulars stronglyagree Agree Disagree Strongly disagree Total

No. of respondets 18 55 19 8 100

Percentage of respondents 18 55 19 8 100

60 50 40 30 20 10 0
ag re e Ag re e ag re e sa gr ee

Series1

ng ly

Di s

INTERPRETATION; From the above analysis its clearly shown that majority of the respondents are pretty happy about the one stop shopping destination.

13) Where do you rate the quality of Spencers own brand products?

Particulars Very good Good

No. of respondets 12 48 36 4 100

St ro ng ly

st ro

di

Percentage of respondents 12 48 36 4 100

Satisfactory Poor Total

60 50 40 30 20 10 0
G oo d go od fa ct or y Po or

Series1

Ve ry

INTERPRETATION; From the above table shown 48% of respondents are feeling good about the spencers own brand products, and also 36% of the respondents are feeling satisfactory .

14) How do you feel shopping at Spencers?

Particulars Feel happy Somewhat happy

No. of respondets 33 44 8 15 100

Sa tis

Percentage of respondents 33 44 8 15 100

Not happy Satisfactory Total

at ha p p

50 45 40 35 30 25 20 15 10 5 0
ap py h

Series1

F ee l

ew h

th ap

N o

INTERPRETATION; Above the analysis clearly shown that the half of the respondents are fell happy when shopping at spencers.

om

a tis

fa ct or y

py

CHAPTER V

Findings
It is found that majority of the respondents are in favor of consumable products

Most of the respondents feel that consumption of spencers product is symbol of social status.

Most of the responds are quite happy and satisfied with the spencers products in terms of Quality, Quantity, durability, etc.............

 To full their daily needs majority of the respondents prefer spencers products like FMCG etc......

It is noticed that most of the respondents wanted air conditioner to reduce their body heat especially in the summer.

The spencers hyper market service is good and can do better.

Spencers super market is doing well as well as it has to improve its own brand products.

It is found that customers are most interested in hara bhara offer and also that they want some another offers like this.

Spencer is the only one shop performing consistenitently as well as pioneer in the retail business.

Suggestions
Spencers market must come up with new products to boost up its sales.

Spencers hyper market should introduce special summer offer to improve the sales during the peak season.

 Spencers should improve the own brand products because when compared to other products its moving is very slow.

To attract the customer spencers should concentrate on sponsoring social events.

Apart from increasing the frequency of Ads electronic media, spencers must also make proper use of print media to boost up its sales.

Spencers should also maintain the customer relationship thats the only one way to retain the customers.

New customer attractive schemes if introduced would certainly help spencers to scale new heights.

As customers will keep switching from one super market to the other, spencers must look for customer delight & should not just stop with customer satisfaction.

Conclusion

Spencers is one of the pioneer in the retail marketing field and its doing tremendously well for the past so many years. Spencers products and its own brand products have got a very good place for themselves in the customers heart and are enjoying very good market share.

Despite of taking every possible care it is found that spencers is just foot forward in terms of market shares when compared with Big bazaar which is a little disappointing and hence steps are to be taken to further maximizing the same.

To beat out competitors and to improve its current position, spencers should add new products spencers products. which can bring a revolution in the sales of

Also spencers has to make proper use of every possible channel to boost up its sales and particularly has to increase the frequency of its Ads in print and electronic media.

Spencers must leave no stone un turned in satisfying the customers and must be very conscious about its competitors and must take timely action to survive and thrive in todays competitive market place.

QUESTIONNAIRE

A STUDY ON CUSTOMER PERCEPTION @ SPENCERS (With special reference to Spencers hyper market Pvt. Limited) Questionnaire

Name:

Contact No:

Area:

1) Occupation of the respondent A) Employee C) Home maker B) Self employed D) Student

2) Why do you like to purchase in spencers market? A) Quality products C) Affordable prices B) overall ambience D) monthly offers

3) Which communication channel makes you to recall Spencers? A) Ads on print media C) Ads on electronic media B) Positive word of mouth D) Satisfaction from the previous purchase

4) Which paper do you read? A) The Hindu C) Sakshi B) Eenadu D) Decan chronicle

5) Which F.M do you listen? A) 93.5/Red fm C) 98.3/Radio mirchi B) 92.7/Big fm D) 91.1/Radio city

6) Which (TV) channel do you most watch? A) Local channels C) News channels B) National channels D) Music channels

7) Do you know about our monthly & weekly promotions if yes please tick on the from the below? A) Cool mela offer Mango fest B) Hala bara offer D) Anniversary offer C)

8) Which media reach you? A) Print media B) Electronic media

9) Are our internal communication & announcement reaching you? A) Yes B) No C) Very rarely D) Frequently

10) Do you feel comfortable with the communication given through (pops) point of purchases? A) Yes B) No

11) Do you think the sales force at Spencers provide you service with ease? A) Strongly agree C) Disagree B) Agree D) strongly disagree

12) Do you think Spencers is a one stop shopping destination, as it provides all under one roof? A) Strongly agree C) Disagree B) Agree D) strongly disagree

13) Where do you rate the quality of Spencers own brand products?

A) Very good

B) good

C) Satisfactory

D) Poor

14) How do you feel shopping at Spencers? A) Feel happy C) Not happy B) Some what happy D) Satisfactory

15) Your suggestions to Spencers if any ________________________________________________________________ ________________________________________________________________ ________________________________________________

BIBLIOGRAPHY

BIBLOGRAPHY

Marketing management Consumer Behaviour Research Methodology Consumer Behaviour

Philip kotler k.k.Srivastava C.R.Kothari Leon.g.schiffman

Indian Journal of marketing www.spencers retail.com www.google.com