Ajay Kumar Gupta: Presented by

The STudy of MarkeT
PoTenTial and CuSToMer

PreferenCeS aT dr. a.S. rao
nagar wiTh referenCe To
rPg gianT SPenCer’S reTail
lTd.
PRESENTED BY
aJay kuMar guPTa

(Registration No.: 08/06)
PGDM (2008-10)
ConTenTS
 Introduction
 Objectives of Study
 Research Methodology and Scope of the Study
 Retail Sector and its Scope in India
 Company Profile
 Data Analysis and Interpretation
 Findings of the Study
 Suggestions and Recommendations
 Limitation of Study
 Conclusion
Presented By Ajay Kumar Gupta, ICBM-School

21thJune, 2009 of Business Excellence, Hyderabad, Contact – 2
09291592309, akgicbm@gmail.com
inTroduCTion
 The word retail has its origin in French word retaillier and means “to cut
a piece off’’ or “to break bulk”.
 The term Retailing is defined as “All activities involved in selling goods
and services directly to final consumers for their personal and non-
business use”. In simple terms, it implies a first-hand transaction with
customer.
 Retailing in its present form started in the latter half of 20th century in
USA and Europe.
 In Hyderabad, Spencer’s Retail came up as the organized retail outlet in
the form of a Hypermarket in the year 2001, with its inception in
Hyderabad.
 With more than 9 outlets per 1000 people, India has the largest number
of outlets in the world and Almost 95% of these retail outlets are less
than 500 sq. ft. In size, the per capita retail space in India being 2 sq. ft.
compared to the US figure of 16 sq. ft. Thus India’s per capita retailing
space is the lowest in the world.
21thJune, 2009 Presented By Ajay Kumar Gupta, ICBM- 3

School of Business Excellence, Hyderabad
obJeCTiveS of STudy
 To study Dr. A.S. Rao Nagar area demographic wise.
 To study about the perception of customers with
reference to availability of products and services in
supermarket/Spencer’s.
 To study about customer preferences and frequency of
shopping.
 To know the target customer’s of Spencer’s
Retail/Supermarket at Dr. A.S. Rao Nagar.
 To understand the customer’s expectation from retail
service provider.

reSearCh MeThodology
 The study is relied on primary as well as secondary data.
 The primary data is collected through personal interviews
using structured Questionnaire.
 The Secondary is collected from management of the
Spencer’s Retail Ltd, various books, journals and Internet.
 Sampling Methods:- Probability sampling method or
simple random sampling
 Universe: - Dr. A.S. Rao Nagar
 Sample Size: - Sample size was 400.
 Research Instrument: - questionnaire and observation

reTail SeCTor and iTS SCoPe i
india
 Retail Sector is divided in to 2 part- Organized and
Unorganized.
 Over 12 million outlets operate in the country and only 5%
of them being larger than 500 sq ft (46 m²) in size.
Organized retailing in India is projected to grow at the rate
of 25-30% p.a., is estimated to grow from the US $ 330
billion in 2007 to US $ 427 billion by 2010 and US $ 637
billion by 2015.
 Retailing is emerging as a sunrise industry in India and is
presently largest employer after agriculture. Some
economists say that Retailing is one of the pillars of the
economy in India, and some say it is gold mine of Indian
economy.

ConTinued…….
 Organized retail formats prevalent globally:-Malls,
Supermarkets, Hypermarkets, Discount Stores,
Department Stores, Specialty Stores, Internet Retailing,
Convenience Stores, MBO etc.
 The Indian retail market, which is the fifth largest retail
destination globally, has been ranked the 2nd most
attractive emerging market for investment after Vietnam
in the retail sector by AT Kearney’s seventh annual
Global Retail Development Index (GDRI), in 2008. The
share of retail trade in the country’s gross domestic
product (GDP) was between 8-10% in 2007. It is
currently 12%, and is likely to reach 22% by 2010.

CoMPany Profile- rPg
enTerPriSe
 Type: - Private Conglomerate
 Founded: - Mumbai, India (1979)
 Founder(s):- RP Goenka
 Headquarters: - Mumbai, India
 Key People: - RP Goenka (Chairman Emeritus)
Harsh Goenka (Chairman)
Sanjeev Goenka (Vice Chairman)
 Industry: - Power, Retail, Tyres/Tires, Transmission,
Technology, Entertainment and other
 Revenue: - US$3.25 billion

abouT rPg gianT SPenCer’S
reTail lTd.
 Spencer’s Retail Limited, part of the Rs 13,500 crores RPG
group, is one of India’s largest and fastest growing multi-
format retailer and retailing food, apparel, fashion,
electronics, lifestyle products, music and books. with 350
stores, including 35 large format stores across 60 cities in
India.
 Established in 1996 and headquarter is in Chennai.
 Spencer’s Retail has a loyalty program. They offer a co-
branded credit card with HSBC bank (HSBC Spencer's
Retail Credit Card).

ConTinued……….
 Spencer's Retail Limited has been awarded the Coca Cola
Golden Spoon "Most Admired Food & Grocery Retailer for
Convenience and Express formats" Award at the Food
Forum of India, 2009 held in Mumbai and this is the third
award that the organization has received, three years in a
row. Spencer’s was awarded the Turnaround Retailer of the
year 2006 at the India Retailers Forum, 2007 in Mumbai.
And Most Evolved Retailer of the year 2007 at the India
Retail Forum, 2008.

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.

viSion
To “build Spencer’s as the most professionally managed

retail business in the country through:-
 Excellence in all operating processes;
 Nurturing and facilitating a learning and growth
culture;
 Building a unique retail experience for the customers;

MiSSion
Strives to exceed the aspirations of its customers for a
healthy and fulfilling lifestyle by providing:-
 The most innovative consumer goods and delectable taste
experience.
 The ultimate shopping experience.
 Unsurpassed customer service.
 Unbeatable value
 The ‘next’ place away from home or office to relax and
indulge themselves.

MaJor fuTure Plan
 It will be going in for public issue within the next 12
months to raise capital for expansion.
 In every financial year, Spencer’s is increasing its stores
from 150 to 250 with a target of expanding by 400 more in
the next two years.
 The company had last year announced a Rs 1,500 crore
investment plan to expand its business across the country.
 Spencer’s has announced that it will very soon launch CRT
TVs under the brand name Yashika.
 Spencer’s is all set to enter the standalone Lifestyle
Retailing segment by opening American Lifestyle Brand
stores in India - Beverly Hills Polo Club [BHPC].

forMaTS of SPenCer’S
ouTleTS
 The company operates through the following formats:-
 Spencer’s Hyper:- A fast growing retail network of
hypermarkets with large format stores in 35 cities of India.
 Spencer’s super:- One of the largest supermarket chains in
the food and grocery segment in India.
 Spencer’s Daily:- Small format stores conveniently located
with a range of products to meet daily household needs.
 Spencer’s Express:- Food and grocery store next door.
 Spencer’s Fresh:- Spencer’s Fresh stores provide with an
enjoyable convenient shopping environment in very own
neighborhood.

daTa analySiS and
inTerPreTaTion
Target Customers- Age Wise

SeC CaTegory of faMily aT dr.
a.S. rao nagar

no. of faMily MeMber’S of
The reSPondenTS

TargeT CuSToMer-
eduCaTion wiSe

oCCuPaTion of
reSPondenTS

MonThly inCoMe of
reSPondenTS

regular ShoPPing PlaCe
of reSPondenTS

ShoPPing PlaCe of
reSPondenTS iS SPenCer’S or
noT

no. of TiMeS in a week
ShoPPing aT SPenCer’S by The
reSPondenTS

reSPondenTS view in reaSonS
for viSiTing SuPerMarkeT'S

reSPondenTS view in
SeleCTing a
SuPerMarkeT

CuSToMerS exPeCTaTion wiTh
reSPeCT To ServiCeS

findingS of The STudy
 Consumer life style and spending pattern are changing,
more and more customers are visiting supermarket.
 Dr. A.S. Rao Nagar is a developing area of Hyderabad
and it consists of all classes of families. Most of the
families belong to Socio Economy Class (SEC) A & B.
Most of the residents fall in to age group 18-25 and
26-35. Most of the families have 4 to 5 members in their
families. Residents are well educated and holding jobs.
Their monthly incomes are ranging from 10,000-20,000
and above. Approximately 86.5% people visit
Supermarket for shopping and 50.75% people visit to
Spencer’s Daily Supermarket. From the above data it can
be observed that there is a potential for good market
opportunities for retail Supermarket.

ConTinued……..
 Despite high footfalls, the conversion ratio has been not
good in the Spencer's Daily.
 More is creating intense competition before Spencer’s
with the help of MORE @ YOUR DOOR.
 On the basis of customer’s preferences, Ushodya
Supermarket is having several varieties of products with
deep assortment and Ushodya has covered more market
at Dr. A.S. Rao Nagar.
 Most of Dr. A.S. Rao Nagar people are educated and job
holder, Spencer’s can do better promotion through
pamphlets about facilities and services of Spencer’s.

ConTinued……..
 In Dr. A.S. Rao Nagar, 50.75% people go to Spencer’s
for shopping and 49.25% people don’t go. In 50.75%
people, 19% people shop at Spencer’s once in a week,
24.5% people shop at Spencer’s twice in a week, 5%
people shop at Spencer’s thrice in a week and 2.25%
people shop at Spencer’s several times in a week.
 The reasons for visiting super markets as mentioned by
the respondents varied from better services to pricing to
variety of products available in the super markets.
44.75% respondents visit super markets for the prices
offered by the super markets and 46.75% mentioned that
the quality of product provided by the super markets is
the reason for their visit to super markets.

ConTinued……..
 The other factors which attract the respondents to various
super markets are variety of products offered, fresh
products like fruits and vegetables, availability of dairy
products, home delivery, parking facilities, accepting
debit/ credit cards, fast billing, booking counters, customer
service, courteous and friendly behavior and ambience.
 Most of the customers complained regarding customer
service, variety of product with deep assortment, store
image, arrangement of products, pricing, product
knowledge of employee, quality of products, parking
space, product updation, closing time at Dr. A.S. Rao
Nagar with reference to Spencer’s Daily.

SuggeSTionS and
reCoMMendaTion
 Customers are very eager to know about offers, discount
schemes provided by Supermarket’s/Spencer’s then
Spencer’s should do better promotion for creating
awareness about all offers with the help of pamphlets,
marketing gimmick using customer database.
 As the majority of population at Dr. A. S. Rao Nagar area
are falling into the age group of 26-35 and 18-25.
Company should concentrate on the need of people
falling into that category.
 Complained and feedback should be taken care in well
manner to create the loyalty and goodwill.

ConTinued……..
 Fast moving consumer goods (FMCG) or daily used

items should be available in more number of varieties
because customers of Dr. A.S. Rao Nagar complain
regarding this and FMCG product should be placed near
exit door as customers can purchase the daily use items
at the time of exit, which can directly increase the sales
of Spencer’s as done in other retail outlets.
 People of Dr. A.S. Rao Nagar, say that Spencer’s should
employ experienced sales staff so that they can better
explain the quality and features of the products.

ConTinued……..
 At Dr. A.S Rao Nagar area, the percentage of family
member group 5 and 4 is more. Therefore company
should try to attract that family by providing family pack
apparels offer at discount rate.
 Store layout should be redesigned that a customer can
have easy access to the product.
 Spencer’s should provide club Spencer’s membership
card (apart from HSBC Loyalty card), on that card one
unique no. should be there and offer some point system
on every purchase that will attract the customers, through
that Spencer’s can increase its sales.

ConTinued……..
 People generally search for the product on offer so the high

margin product should be up fronted that mean those item
should be in the eye height so that it easily catches the
customers’ attention and generates impulse purchase.
 Spencer’s should provide better customer service than its
competitors, increase the variety of merchandise with deep
assortment, arrangement of product should be in proper way
that creates good store image and it brings customers and
works as a word of mouth marketing for attracting more
customers. Spencer’s should also include apparels segment in
the store, should advertise through pamphlets about various
offers, provide parking space.

liMiTaTionS of The STudy
 The sample size chosen is limited to 400 only because of
time and financial constraint.
 This study was based purely in Dr. A.S. Rao Nagar,
Hyderabad.
 Data collected may not be a representation of the entire
population.
 The time duration for this project was only for a period of
45 days.
 I also took the view of respondents who don’t shop from
Supermarket’s.
 information given by respondents may be correct and
may not be correct.

21thJune, 2009 Presented By Ajay Kumar Gupta, ICBM-School 37
of Business Excellence, Hyderabad, Contact –
09291592309, ajaykrgupta12@gmail.com

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The STudy of MarkeT

PoTenTial and CuSToMer

aJay kuMar guPTa

Presented By Ajay Kumar Gupta, ICBM-School

21thJune, 2009 Presented By Ajay Kumar Gupta, ICBM- 3

21thJune, 2009 Presented By Ajay Kumar Gupta, ICBM- 4

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21thJune, 2009 Presented By Ajay Kumar Gupta, ICBM- 10

 Spencer’s retail has announced a tie-up with British

21thJune, 2009 Presented By Ajay Kumar Gupta, ICBM- 11

To “build Spencer’s as the most professionally managed

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 Fast moving consumer goods (FMCG) or daily used

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 People generally search for the product on offer so the high

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