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Abstract:

This paper is about the Super market Stores in Vizianagaram. The name of
the store is SPENCERS SUPER MARKET. There I approached the store owner who
is seeing the entire stores maintenance. I asked few questions to them to know
about the past and current sales of the store and the growth rate as well as the
future assessment on sales in the location of Vizianagaram.
These are the Questions which i asked to the people who are working with the
stores are as follows:
Section A:
(History of the Company)

HISTORY:
Since 1863, Spencers has been a part of the Indian retail landscape.
At one time, the Spencers Empire stretched from Peshawar to Cochin,
from Karachi to Chittagong, spanning the length and width of undivided
India. Originally owned by a British gentleman yes, there was a Mr.
Spencer (John William Spencer, to be precise) it acquired Indian
ownership in the 1960s, and became part of the RPG Group in 1989.

In 1995, RPG Enterprises, the flagship company of the RPG Group,


launched 'Foodworld' as a joint venture with Hong-Kong based Dairy Farm
International. The joint venture, which operated supermarkets under the
name 'Foodworld' and hypermarkets under the name 'Giant', was
terminated in 2006. RPG retained 48 of the 93 stores it owned. These
were re-furbished and their launch under the brand name, Spencers,
kicked off a new phase in both the history of the Spencers brand, and
retail in India.

Since inception Spencers has been a consumer-centric brand,


constantly innovating, pioneering formats, evolving over time but always
keeping consumer needs and satisfaction center-stage. Back in 1920, we
were the first grocery chain in India. In 1980, we became the first
supermarket chain, and in 2001, we introduced India to the joys of
hypermarket shopping.

What has remained unchanged for 150 years is the trust that the
Spencers brand evokes. To the consumer, it carries the promise of
innovation, quality, and service; the confidence that they will always be
able to find a Spencers store at a convenient location; that it will have a
pleasant ambience; and that it will offer a wide range of products at
affordable prices.

BUSINESS:
Spencers Retail Limited, part of RP Sanjiv Goenka Group, is a multiformat retailer providing a wide range of quality products across
categories such as food, personal care, fashion, home essentials, electrical
and electronics to its key consumers. Specialty sections such as Spencers
Gourmet, Patisserie, Wine and Liquor, and the recently launched
Epicuisine section are some of the key differentiators in our hypermarket
stores.

Spencers, being one of the earliest entrants into the retail space in India,
introduced the Indian consumer to the concept of organized retailing. The
first ever hypermarket in India was launched by Spencers in Hyderabad in
2000. Today, Spencers runs 120 stores, including 37 Hyper stores in over
35 cities in India.

Spencers brand positioning Makes Fine Living Affordable embodies its


philosophy of delighting shoppers with the best products and services that
enable a fine living at reasonable prices, while providing them with a
warm, friendly and educational retail environment

Formats:
As a pioneer in organized food retailing in India, the modernday Spencers Retail started operations back in the early 1990s in South
India. Today, it has over 135 stores spread across over 40 cities in India.

Spencers operates 2 distinct retail formats:


Convenience stores:
These are neighborhood stores that cater to the
daily and weekly top-up shopping needs of consumers. Ranging from
1,500 to 15,000 sq. ft. in size, they stock an assortment of fruits and
vegetables, food and non-food FMCG products, staples and frozen
foods. The larger of these stores, having a floor area of more than
10,000 sq.ft., usually also offer a selected range of baked goodies,
frozen foods, personal and home care products, baby care essentials,
basic wear, and electrical equipment.

Hypermarkets:

Spencer's hypermarkets are megastores that


combine a supermarket with a department store. Ranging from
15,000 sq. ft to over 50,000 sq. ft. in size, they stock a wide and deep
assortment of food, fashion, home and personal care, general
merchandise, electrical and electronics, staples, frozen foods, and
specialty sections, all under one roof.
Despite having two distinct formats, Spencers brand ethos is evident in
all its stores, and it's positioning remains constant.

1. Who did you interview?


I met Mr R. CHANDRA MOULI in the store who is working as store
manager from past two years
2. How long have they been in Business?
Spencer was established in the year 2007 and business is doing
good with the sales growth rate of 5%
3. How has their Business changed over the years?
Starting there were only 5 employees and now number has
increased to 9. At first products were just dumped in order but now
the products were organised in top to low price order and also each
shelf is given name and that product is kept for sell. Customers
number has also shown increasing trend
4. What is their Mission Statement?
Mission: To make aspirational quality accessible to all, and Values:
Quality, value, service, innovation and trust."
5. Do they plan to expand, penetrate, diversify or change their
format in the near future?

Yes, they are planning to change their location as present trade area
is 1200sq.ft. It is not sufficient to requirement. They are going to
finalise their plan by asset team in this month end.

Section-B
(Super market Strategy)
1. Who is their Target Market:
Define their customer according to demographics (Age, gender, income level

education, etc..,)
Their target customers are head of family and high income peoples.
They focus main on the 30-45 years of age people
Trade area- 1200 sq.ft primary
2. Merchandise Assortment:
What are the major brands they carry?
They maintain all type of brands but they deal more with HUL,P&G& ITC are the

major brands.
Do they have private brands?
Yes, they have own merchandise on their own name spencers.
The products are mainly food products and the top selling product is vermicelli.
Where does their Super marketers merchandise fit on the category life cycle?
The business is running well from past 9 years but now they are facing tough
competition with more and metro hyper which is situated near by. And they are also
planning to expand their store area in order to face the competition. So basing on this
we can say that it is in expansion stage

Does this Super marketer carry convenience goods, shopping goods or specialty?
Spencer deals with shopping goods and convenience goods
3. Human Resources:
How does this store prepare and train their sales people?
At present, there are 9 employees in the spencer including manager. And employees
are given training for every two months which is known as star programme
Star programme consists of 3 levels
1st level how to be with customer and how to receive customers
2nd level knowledgeabout products attributes are given and style of selling is
enhanced in the employee
3rd level- how to operate store is taught

Are they paid on commission, salary, or hourly wage?


All the employees in the spencers are paid on salary basis.
Are the sales people allowed to cross sell?

Yes, the sales people are involved in cross selling in the absence of the requested
product by the consumer.

Do they outsource any activities in their business


No, they dont outsource any activities

4. Store Location:
Where is this Super market store located?
Purna market, Vizianagaram.
Why do you think they choose this location?
As the area is equipped with high income families which helps them in gaining

competitive advantage.
Is this site accessible for the customer?
It is located beside the main road it is easy for the customers to get along with the

store and hence this site is accessible for the customer.


What type of lease do they have?
They didnt provided the information due to confidentiality.
5. Pricing:
What is this store pricing policy?
As it is a branded store standard prices will be maintained which are fixed by the
company itself. There is no frequent changing in the price according to demand etc.
What other practices do they use to compete with price?
They are using discounts method in order to compete with competitors price
Does this Super marketer use the cost-oriented method of pricing or demand-

oriented pricing
This Super marketer uses the cost-oriented pricing.
Is there a frequent shopper program?
They are using discounts and value for money method in order to make the customer to
visit the store frequently.

6. Communication Mix:
What type of paid advertisements does this business use?
Sticking posters on autos, Advertisements in local media channels and newspapers,
banners and flex.
What type of unpaid communication does this business use?
Word of mouth
Does this Super marketer use cooperative advertising? With whom?
No, they are not using any cooperative advertising.
What type of sales promotions does this Super marketer use?
By using coupons&discounts as per the company norms. They also sponsor events
where huge female and family gatherings happen.

7. Store layout:
What type of design layout does this store use?
Grids, free flow.

Is it effective for customer flow?


yes, it is effective for customer flow.
What type of fixtures do they use?
Modular Super market wall system.
What type of lightings are they using?
Currently, they are using sealing based LED lightings in the store.
Is music constantly playing? What type?
No, they dont play
What type of scent is in the store? Does it detract or attract?
They use very mild floral room fresheners in the store. As they are mild and pleasant,
they attract the customers.
8. Customer Service:

What type of services does this store offer? (Alterations, gift-wrapping etc.)
They offer free alterations for their customers and also gift wrap the merchandise on
special request by the customers.

Talk to 3 customers - What is their perception of this stores customer service?


By collecting information from 3 customers who visited the store, they perceive
positive feedback regarding customer service in the store and also felt the price for the
product is also reasonable.

How does this store handle customer complaints?


Store takes the valid complaints and works on it. If the fault with goods is found they
do with customer preference i.e. return back money or changing of product.

Does this store have mystery shoppers to check level of service?


No.

Is the salesperson empowered to make decisions or is it up to management?


The sales person are not empowered to make decisions, it is only the management that
take decisions.

Section-c
(Competitive Advantage)

Does this Super marketer have a competitive advantage over similar stores?
It is old retail shop in vizianagram and they are able to win customers trust by
managing customer relationship which is their major competitive advantage

How can they retain this advantage or achieve an advantage over their
competition?
In vzm spencer they are not having any music system in the store so by keeping music
system they can attract customers
For making customer relationship more strong they can keep feedback system and if
any customer is unsatisfied they can take their concern. Their concern area can be due
to price or quantity or quality or treatment which they receive inside the store,
anything, they must work on it and if feasible treatment can be done to the concern
area, they have to do it and they also have to inform about the action to the customer
may be through SMS or e-mail.

They must also work on the frequent shopper program

Summarize your Super marketers primary strengths and weaknesses and


support your assessment. What are their biggest challenges now and in the
future? How are they preparing to meet those challenges? What do they view as
their opportunities for the future?

Strengths:
1. Their strength is great bonding with customers as they are old and trusted retailer in
Vizianagaram.
2. They have various brands and private brands too
3. Their location also gives them extra edge as it located in the area of core targeted
customers
4. Low labour cost of skilled ones
5. Demographic favor
6. Shopping convenience
7. Greater availability of quality retail space

Weakness:
1. The brand has not established itself in the e-commerce arena in vzm
2. The spencer retailer has the trading area of only 1200 sqfeet . when compared to
other retailer it is very small
3. Limited consumer insight
4. Lack of trained personnel at all level
5. Lack of adequate utilities
Opportunities:

1. The brand can focus on expansion of trading area and can become number one
retailer in Vizianagaram.
2. Locational advantage
3. Fastest growing retail market in Vizianagaram
4. Promoting e-retailing
Threats:
1. Existing competition from more and metro hyper
2. Opening of new stores in their area may make to share their customers
3. Poor inventory turns and stock availability measures.
4. Lack of differentiation among the malls that are coming.

What environmental and economic factors are affecting the Super marketer?
Suppliers
Customers
Competitors
How is your Super marketer seeking to increase revenue in the future?
By developing better customer service, sales thereby increasing revenue.

How do they make use of technology (web and ecommerce, supply chain
management, information systems, etc.)? How has technology affected the way
they conduct business?
They are planning to come on ecommerce

Competition
Who are the Super marketers competitors (both direct and indirect)? How does
your Super marketer compare to these competitors in terms of its size, market
dominance/share, sales, profitability, etc.?
Competitor: more and metro hyper
They are very strong in their trading area