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CAPSTONE PROJECT REPORT ON
“Brand Awareness of Spencer’s and Its
     Comparative Analysis With
              other
         Retail Outlets”




                BY
         Praveen Pandey C
Spencer's retail is the largest supermarket chain
  in India. They offer a complete range of
  products & durables, from bread to bed cover;
  from toothpaste to even television sets. Today
  Spencer's has 100 stores spread across 25
  cities with a retail trading area of more than
  half a million square feet, and we're growing
  rapidly. Spencer's is the shopping choice for
  millions across the country, 2.8 million to be
  exact, who frequent visit stores every month.
New Ventures

Spencer’s Retail has announced a tie-up with
  British retailer Woolworths Plc for exclusively
  selling its famous toy brand Chad Valley
  through its outlets.

 Besides the Chad Valley range of toys
 (available at prices Rs.49
 upwards).Woolworths is also planning to
 introduce the Ladybird range of Kids wear.
Major Investment plan
– It will be going in for a public issue within the next
  12 months to raise capital for expansion.
– The company will be investing Rs.10 billion over
  the next three years using both internal sources
  and an IPO.
– The company has already reserved 1 million sq ft
  of space all over the country and will be creating
  close to 10,000 jobs in its different formats.
– Spencer’s Retail currently employs 4,500 people
  and has 6 million sq ft of space.
Snapshot
Different Formats of
Spencer’s
Format                 Stocks                         Minimum Trading
                                                        Area (sq. ft.)
Spencer’s Express      dairy, fruit and vegetables,
                       bread and bread products,
                       fruit juice, fresh batter,          1000
                       fresh coffee/tea, masalas,
                       pickles, Ghee, Fish and
                       meat.
    Spencer’s Fresh        vegetables, fruit, milk,        2000
                           eggs, breads

    Spencer’s daily        regular groceries              4000-7000

    Spencer’s Super        home care products;            8000-15000
                           personal care products,
                           Bakery, Chilled and
                           frozen food; Baby care
                           products
    Spencer’s Hyper        Miscellaneous                  More than 25000
• Big Bazaar is not just another hypermarket. It caters to
  every need of your family. Where Big Bazaar scores
  over other stores is its value for money proposition for
  the Indian customers.
• At Big Bazaar, you will definitely get the best products
  at the best prices - that’s what it guarantee. With the
  ever increasing array of private labels, it has opened
  the doors into the world of fashion and general
  merchandise including home furnishings, utensils,
  crockery, cutlery, sports goods and much more at
  prices that will surprise you. And this is just the
  beginning. Big Bazaar plans to add much more to
  complete your shopping experience.
• What started as a humble one store enterprise
  in 1986 in Kolkata (erstwhile, Calcutta) is today
  a conglomerate encompassing 180
  showrooms in 100 cities / 24 states. India’s
  first hyper-market has also been opened for
  the Indian consumer by Vishal. Situated in the
  national capital Delhi this store boasts of the
  singe largest collection of goods and
  commodities sold under one roof in India.
• Reliance Retail, Ltd. operates retail outlets in
  India. Its retail outlets offer
  foods, groceries, apparel and footwear, lifestyle
  and home improvement products, electronic
  goods, and farm implements and inputs. The
  company’s outlets also provide
  vegetables, fruits, and flowers. It focuses on
  consumer goods, consumer durables, travel
  services, energy, entertainment and leisure, and
  health and well-being products
OBJECTIVES OF THE STUDY
• This project is based on the comparative study
  of consumer behavior towards Brand
  awareness of Spencer’s and its comparative
  analysis with Big Bazaar & other retail
  organizations in Chennai city. Objectives of the
  study are:
• To study about the Brand awareness of
  Spencer’s.
• To analyze the organized retailer’s profitability
  drivers on the basis of Garments, Gifts, Cards
  & Music Department.
Research Methodology
• Sample Size and Design:
• A sample of 100 peoples & 3 stores was taken on the basis of convenience.
  The actual customers were contacted on the basis of random sampling.

• Data Collection:
  The data, which is collected for the purpose of study, is divided into 2
  bases:

• Primary Source: The primary data will be comprising of information
  survey of “Brand awareness of Spencer’s and its comparative analysis with
  Big Bazaar & other retail organizations ”. The data has been collected
  directly from respondent & with the help of structured questionnaires.
• Secondary Source: The secondary data has been collected from
  Company’s website and price list of the companies.

• Data Analysis:
  The data is analyzed on the basis of suitable tables by using mathematical
  techniques. The technique that I have used is pie graphs, Bar graphs.
LIMITATIONS OF THE STUDY
• In attempt to make this project authentic and reliable, every
  possible aspect of the topic was kept in mind. Nevertheless, despite
  of fact constraints were at play during the formulation of this
  project. The main limitations are as follows:

• Due to limitation of time only 100 people & 3 stores were selected
  for the study. So the sample of people & stores was not enough to
  generalize the findings of the study.

• The main source of data for the study was primary data with the
  help of self-administered questionnaires. Hence, the chances of
  unbiased information are less.

• Retailers were hesitant to disclose the true facts.
Survey
• What is the thought of people about Spencer’s retail?
   – 1) Have you heard of Spencer’?

                      Yes                          93
                      No                            7




                                                          Yes
                                                          No
2.Have you visited Chennai city Spencer’s earlier?
        Yes                           90
        No                            10




                                             Yes
                                             No
3.Visited Chennai Spencer’s once, twice or more?

          Once                        12
         Twice                        19
     More than Twice                  69




                                    Once
                                    Twice
                                    More than Twice
4.Peoples not visited to local retail stores?

 Local shops                        10.0
  Big Bazaar                        20.0
Any other stores                    70.0




                                    Local shops
                                    Big Bazaar
                                    Any other stores
5.Spencer’s products range available to customers?
      Spencer’s                      3%
      Big Bazaar                      5%
   Vishal Mega Mart                  15%
        Others                       77%




                                           Spencer’s
                                           Big bazaar
                                           Vishal Mega Mart
                                           Others
6.Spencer’s in FMCG?

    Spencer’s             67%
   Big Bazaar             25%
Vishal Mega Mart           8%



                               Spencer’s
                               Big Bazaar
                               Vishal Mega Mart
7.Spencer’s in garments?
Yes                    8
No                     92




                            Yes
                            No
8.Spencer’s in Food & Vegetables ?
   Yes                      22
   No                       78




                                 Yes
                                 No
Findings
• Spencer’s have good brand awareness among the consumers.

• Big Bazaar has better product range than Spencer’s.

• Big Bazaar have greater acceptance among the consumers in
  comparison to Spencer’s.

• FMCG products have major acceptance of all offerings of Spencer’s
  among consumers.


• The consumers are not much satisfied of the offers introduced by
  Spencer’s.

• Big Bazaar has better promotional schemes than Spencer’s.
Various Departments @ Spencer’s
Following Dept.are the main sources of
 income for the Spencer’s

• GARMENTS DEPARTMENT
• GIFTS DEPARTMENT
• MUSIC DEPARTMENT
1)Garment Department:
• Overview:
  In Garment department the products are mainly the major
  international readymade brands and price ranges lies between
  Rs.800 to Rs.2000 averagely which is meant for a few Indians
  customers.
• Findings:
   The products exclusively for a certain income level customers.
  Maximum products are unreachable for the medium and average
  income level customers.

• Suggestions:
   They are focusing a very few Indian customers and the most of the
  Indian consumers can’t afford this price range. So if they want to
  increase their market share in the Indian retail Industry they should
  introduce such product range also which can be affordable for the
  medium level income groups and the main customer in the retail
  industry lies within it.
2) Gifts Department
• Overview:

  Gifts department is consisting of various product categories from
  home furnishing products to personal grooming products.

• Findings:
  In the Spencer we have found a wider range of glass made and
  metal products which are exclusive and also the quality isn’t up to
  the price levels. Whatever, the stock is sufficient to satisfy its
  customers but the price range is found very high as a gift product in
  this department.

 . Suggestions:
  Again the Indian retail industry is targeting the medium level income
   group people as its increasing day by day but the products in the
   Spencer store is meant only for the high class consumers which is
   very low in population in India. Also an important point is noted
   that though the volume is sufficient but the variety in product
   categories as a gift isn’t sufficient.
3) Music Department
•   Overview:
    Music section consist of Music CD;s, Game CD & DVD’s and also
    Movie DVD’s.

  Findings:
• Spencer has introduced very low range cd & dvd’s like “Moserbear”
  music and movie cd-       dvd’s and price range lies in between Rs 30
  to 100. Basically they are gaining a competitive business at the age
  of piracy products in this industry. Also they have a very good
  collection in games cd-dvd categories at a low price range of Rs 100
  to 200 whereas if anyone go to the open market the average price
  range is Rs 300 to 400 for the copyright product.
• Suggestions:
  Spencer is earning more revenue by its music section. In the music
  it’s found that the collection of cd’s and educational cd’s low than
  the music games cds. They are emphasizing on the low price mp3
  and game cds where as there is also a demand for educational and
  movies cd-dvd’s.
SUGGESTIONS AND
          RECOMMENDATIONS
• In order to improve its business, Spencer’s
  should introduce more competitive
  promotional schemes such as those in Big
  Bazaar.
• The product range of Spencer’s should be
  improved in order to match that existing in Big
  Bazaar.
• For promotional offers, company should go for
  free gifts rather than going for other ways
THANK YOU

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Spencer's Retail Brand Awareness and Comparative Analysis Report

  • 1. CAPSTONE PROJECT REPORT ON “Brand Awareness of Spencer’s and Its Comparative Analysis With other Retail Outlets” BY Praveen Pandey C
  • 2. Spencer's retail is the largest supermarket chain in India. They offer a complete range of products & durables, from bread to bed cover; from toothpaste to even television sets. Today Spencer's has 100 stores spread across 25 cities with a retail trading area of more than half a million square feet, and we're growing rapidly. Spencer's is the shopping choice for millions across the country, 2.8 million to be exact, who frequent visit stores every month.
  • 3. New Ventures Spencer’s Retail has announced a tie-up with British retailer Woolworths Plc for exclusively selling its famous toy brand Chad Valley through its outlets. Besides the Chad Valley range of toys (available at prices Rs.49 upwards).Woolworths is also planning to introduce the Ladybird range of Kids wear.
  • 4. Major Investment plan – It will be going in for a public issue within the next 12 months to raise capital for expansion. – The company will be investing Rs.10 billion over the next three years using both internal sources and an IPO. – The company has already reserved 1 million sq ft of space all over the country and will be creating close to 10,000 jobs in its different formats. – Spencer’s Retail currently employs 4,500 people and has 6 million sq ft of space.
  • 5. Snapshot Different Formats of Spencer’s Format Stocks Minimum Trading Area (sq. ft.) Spencer’s Express dairy, fruit and vegetables, bread and bread products, fruit juice, fresh batter, 1000 fresh coffee/tea, masalas, pickles, Ghee, Fish and meat. Spencer’s Fresh vegetables, fruit, milk, 2000 eggs, breads Spencer’s daily regular groceries 4000-7000 Spencer’s Super home care products; 8000-15000 personal care products, Bakery, Chilled and frozen food; Baby care products Spencer’s Hyper Miscellaneous More than 25000
  • 6. • Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. • At Big Bazaar, you will definitely get the best products at the best prices - that’s what it guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping experience.
  • 7. • What started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is today a conglomerate encompassing 180 showrooms in 100 cities / 24 states. India’s first hyper-market has also been opened for the Indian consumer by Vishal. Situated in the national capital Delhi this store boasts of the singe largest collection of goods and commodities sold under one roof in India.
  • 8. • Reliance Retail, Ltd. operates retail outlets in India. Its retail outlets offer foods, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods, and farm implements and inputs. The company’s outlets also provide vegetables, fruits, and flowers. It focuses on consumer goods, consumer durables, travel services, energy, entertainment and leisure, and health and well-being products
  • 9. OBJECTIVES OF THE STUDY • This project is based on the comparative study of consumer behavior towards Brand awareness of Spencer’s and its comparative analysis with Big Bazaar & other retail organizations in Chennai city. Objectives of the study are: • To study about the Brand awareness of Spencer’s. • To analyze the organized retailer’s profitability drivers on the basis of Garments, Gifts, Cards & Music Department.
  • 10. Research Methodology • Sample Size and Design: • A sample of 100 peoples & 3 stores was taken on the basis of convenience. The actual customers were contacted on the basis of random sampling. • Data Collection: The data, which is collected for the purpose of study, is divided into 2 bases: • Primary Source: The primary data will be comprising of information survey of “Brand awareness of Spencer’s and its comparative analysis with Big Bazaar & other retail organizations ”. The data has been collected directly from respondent & with the help of structured questionnaires. • Secondary Source: The secondary data has been collected from Company’s website and price list of the companies. • Data Analysis: The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that I have used is pie graphs, Bar graphs.
  • 11. LIMITATIONS OF THE STUDY • In attempt to make this project authentic and reliable, every possible aspect of the topic was kept in mind. Nevertheless, despite of fact constraints were at play during the formulation of this project. The main limitations are as follows: • Due to limitation of time only 100 people & 3 stores were selected for the study. So the sample of people & stores was not enough to generalize the findings of the study. • The main source of data for the study was primary data with the help of self-administered questionnaires. Hence, the chances of unbiased information are less. • Retailers were hesitant to disclose the true facts.
  • 12. Survey • What is the thought of people about Spencer’s retail? – 1) Have you heard of Spencer’? Yes 93 No 7 Yes No
  • 13. 2.Have you visited Chennai city Spencer’s earlier? Yes 90 No 10 Yes No
  • 14. 3.Visited Chennai Spencer’s once, twice or more? Once 12 Twice 19 More than Twice 69 Once Twice More than Twice
  • 15. 4.Peoples not visited to local retail stores? Local shops 10.0 Big Bazaar 20.0 Any other stores 70.0 Local shops Big Bazaar Any other stores
  • 16. 5.Spencer’s products range available to customers? Spencer’s 3% Big Bazaar 5% Vishal Mega Mart 15% Others 77% Spencer’s Big bazaar Vishal Mega Mart Others
  • 17. 6.Spencer’s in FMCG? Spencer’s 67% Big Bazaar 25% Vishal Mega Mart 8% Spencer’s Big Bazaar Vishal Mega Mart
  • 19. 8.Spencer’s in Food & Vegetables ? Yes 22 No 78 Yes No
  • 20. Findings • Spencer’s have good brand awareness among the consumers. • Big Bazaar has better product range than Spencer’s. • Big Bazaar have greater acceptance among the consumers in comparison to Spencer’s. • FMCG products have major acceptance of all offerings of Spencer’s among consumers. • The consumers are not much satisfied of the offers introduced by Spencer’s. • Big Bazaar has better promotional schemes than Spencer’s.
  • 21. Various Departments @ Spencer’s Following Dept.are the main sources of income for the Spencer’s • GARMENTS DEPARTMENT • GIFTS DEPARTMENT • MUSIC DEPARTMENT
  • 22. 1)Garment Department: • Overview: In Garment department the products are mainly the major international readymade brands and price ranges lies between Rs.800 to Rs.2000 averagely which is meant for a few Indians customers. • Findings: The products exclusively for a certain income level customers. Maximum products are unreachable for the medium and average income level customers. • Suggestions: They are focusing a very few Indian customers and the most of the Indian consumers can’t afford this price range. So if they want to increase their market share in the Indian retail Industry they should introduce such product range also which can be affordable for the medium level income groups and the main customer in the retail industry lies within it.
  • 23. 2) Gifts Department • Overview: Gifts department is consisting of various product categories from home furnishing products to personal grooming products. • Findings: In the Spencer we have found a wider range of glass made and metal products which are exclusive and also the quality isn’t up to the price levels. Whatever, the stock is sufficient to satisfy its customers but the price range is found very high as a gift product in this department. . Suggestions: Again the Indian retail industry is targeting the medium level income group people as its increasing day by day but the products in the Spencer store is meant only for the high class consumers which is very low in population in India. Also an important point is noted that though the volume is sufficient but the variety in product categories as a gift isn’t sufficient.
  • 24. 3) Music Department • Overview: Music section consist of Music CD;s, Game CD & DVD’s and also Movie DVD’s. Findings: • Spencer has introduced very low range cd & dvd’s like “Moserbear” music and movie cd- dvd’s and price range lies in between Rs 30 to 100. Basically they are gaining a competitive business at the age of piracy products in this industry. Also they have a very good collection in games cd-dvd categories at a low price range of Rs 100 to 200 whereas if anyone go to the open market the average price range is Rs 300 to 400 for the copyright product. • Suggestions: Spencer is earning more revenue by its music section. In the music it’s found that the collection of cd’s and educational cd’s low than the music games cds. They are emphasizing on the low price mp3 and game cds where as there is also a demand for educational and movies cd-dvd’s.
  • 25. SUGGESTIONS AND RECOMMENDATIONS • In order to improve its business, Spencer’s should introduce more competitive promotional schemes such as those in Big Bazaar. • The product range of Spencer’s should be improved in order to match that existing in Big Bazaar. • For promotional offers, company should go for free gifts rather than going for other ways