SPENCER

RETAIL
LIMITED :
Repositioning in
a Changing
Retail Submitted by: Group 5

Environment Aditya Jaiswal - 2011289

Chelsea Khandelwal - 2011055
Kamlesh Nayak - 2011340
Nitin Prabhakar - 2011312
Prakhar Pandey - 2011174
Sai Gowtham - 2011211
Siddharth Nahar - 2011243
Suraj Jain - 2011254
 Case Facts
● 180 stores in India
● Four store formats
○ Spencer’s Express
○ Spencer’s Daily Convenience Stores in residential neighborhoods
○ Spencer’s Super
○ Spencer’s Hypermarkets Supermarket with a department store
● More than 5000 employees
● Part of RP Sanjiv Goenka Group
● TTW (Taste The World)
○ Futuristic and International Shopping Experience
○ Expensive Store: Failed to appeal to Sec B and Sec C customers
Q1. Analyze the impact of TTW positioning?
Spencer's TTW positioning helped to establish it as a Lifestyle store and to
reinforce its high-quality image. Spencer has been able to attract customers from
India's SEC A (Socio-economic classification) population thanks to its brand
positioning. Spencer was able to promote itself as a Lifestyle store with the
support of TTW.
● Artistic Heritage Boards project a high-quality and service-oriented image.
● A merchandising strategy that was on par with or bettered than that of
international shopping malls
● Differentiating components such as Gourment Center and Premium Spirits
are introduced
Q1. Analyze the impact of TTW positioning?
Spencer's was now considered as a more expensive retailer, catering to the upper
classes rather than the general public. The merchandising strategy, which
eliminated items with opening price points and uncommon price discounts, also
contributed to the perception of a more expensive business. The following three
major problems were also expressed as a result of TTW positioning.

● The Spencer's loyalists were a small group(10 percent of population-Exhibit 1)

● There were no customer switching expenses; and
● Spencer's closest competitor, Big Bazaar, had a better reputation for low price
Q2. Why is Spencers repositioning it’s hyper stores from
TTW to MFLA

TTW impact:

● Created a store perception of being “expensive”

● Attracted SEC A (10% of Indian Population & 67% of customer base).
● Competition luring price sensitive customers

To tackle the above impacts and create a strategy to attract SEC B & C populations
which were the future of organised retail. It repositioned to MFLA.
Q3. What are the elements of MFLA?
● Making Fine Living Affordable
● Repositioning of Spencer’s image to attract value-oriented customers while
retaining its high-quality image
● Elements of MFLA positioning strategy:
○ Known Value Items Pricing: Included KVIs to match the Kirana prices. These
were the products that most households buy regularly and have
knowledge about its prices.
○ Opening Price Point: It was the entry price point in value-sensitive
categories. This was to draw customers away from Big Bazaar and
Kiranas
○ Spenser’s Private Labels: This was to leverage high-quality image of
Spencer’s and provide private labels at competitive prices.
Q4. Evaluate the financial impact of MFLA in terms of
Sales and margins.
Financial Impact
Sales- 13.5%

Margins- 2.15%
Q.5 Which of the Visual Communication aids used for
MFLA was effective? How to improve those Visual
Communication aids which were not effective?
● PYCT wall signs: Prices You Can Trust for opening price point items
● MFLA signs on store walls
● Spencer’s Quality Seal: Thumbs up signs
● PYCT pillar branding

PYCT wall signs has a visibility of 66%, Spenser’s Quality Seal has a visibility of 65%

MFLA has a lower Visibility of 32%, and prompt of purchase is also low at 75%

PYCT pillar, branding has lowest visibility of 22%, but high prompt of purchase
(90%)

● This shows that company need to focus on increasing visibility

● Focus on PYCT Pillar branding
Q.6 What do you think is the overall impact of MFLA? Do
you think Spencer’s should implement it across the stores?
● As obtained in previous questions, the overall operating profits of Spencer’s
increased with MFLA.
● Sales increased, operating margins dipped a bit.
● Overall Spencer’s was able to change the perception by adding Known Value
Items to its mix of products.
● Spencer’s now was able to target segments B & C which were earlier
alienated.
● Overall Spencer’s (as it wanted) is now able to target the mass population with
this new positioning.
● We recommend spencer’s use the MFLA positioning for all its stores and gain
popular market share in all the three segments but mainly reaching out to the
larger Section B & C.
THANK
YOU