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Operations Management
Submitted By
Name: Amit Anil Kulkarni
Reg No.: 201513005
Submitted To SCDL
In partial fulfillment of the requirements for the award of degree of
This is to certify that “Amit Anil Kulkarni” is permitted to use relevant data/information
of this organization for his/her project as a partial fulfillment of the Post Graduate
Diploma in Business Administration (Specialization – Operations Management)
Programme. We wish him/her all the success.
This is to declare that I “Amit Anil Kulkarni” have carried out this project work myself in
part fulfillment of the Post Graduate Diploma in Business Administration (Specialization
– Operations Management) Program of SCDL.
The work is original, has not been copied from anywhere else and has not been submitted
to any other University/Institute for an award of any degree/diploma.
Certified that the work incorporated in this Project Report on Operations Management
submitted by Amit Anil Kulkarni is his/her original work and completed under my
supervision.
Material obtained from other sources has been duly acknowledged in the Project Report.
There are certain aspects that are vital to be observed in any retail store such as front-end
operations, back-end operations, store layout, customer relation management, visual
merchandising, inventory management, promotional activities….etc .This study explains
all these aspects in particular and emphasizes for an effective way to the retailers to
improve their ability to achieve the targeted goals and enhance the profitability of the
organization.
The project is aimed at the operations (business development) of a store engaged in retail
business and studies its management, growth expansion program and other points.
Business development is two types first is the income generation and by increasing the
business of store. The marketing and business development team is responsible for
business development of store and in turn of the organization. They should be creative and
proactive to attain the task given .They must know how to take competitive advantage over
the competitors. The business development plays an important role in retailing as the
organized retailer operates at very thin margins. So any additional income to the store is
advantage to the organization.
Based on the information presented before on the aspects relating to concepts, objectives,
purposes and /or importance .It is understood that the concept of “business development”
is one of the important areas in retailing. Further it is also understand that based on the
profile of the organization presented in chapter-2, the organizations is one of the leading
and important retail organizations at present.
Retail comes from the French word retailer which refers to “cutting off, clip and divide “in
terms of tailoring (1365). It was first recorded as a noun with the meaning of a “sale in
small quantities’” in 1433. Its literal meaning was large quantities from the manufacturers
or importers, either directly or through wholesaler, and then sells individual items or small
quantities to the general public or end-user customer, usually in a shop, also called a store.
Retailer is at the end of the supply chain. Marketers see retailing as a part of their overall
distribution strategy.
Retailing business is quite familiar in foreign countries and famous department stores like
burdens and Macy’s, discount stores like the Gap, Zale’s jewelers and toys ‘R’ us, are all
renewed companies having several chain branches in different countries countries and
doing business internationally.
In India through retailing business through chain shops is emerging as a new business,
several retail stores like Reliance, BigBazar, Megamart…etc have already enter in retail
business and achieved phenomenal business growth. Due to India‘s healthy domestic
economical growth several multi-national companies are eying to enter the fray. As india is
a potential market for retail business because of population. The same has already been
proved in communications and auto sector. further, service providers like dentists, hotels
and hair salons and on-line stores, likeAmazon.com,Bazee.com, E-Bay also come under
retailers. Many business, like Home depot, though they do business in both wholesale and
retail business because they sell to consumers directly .Other business, like The Limited
are both manufactures and retailers . Regardless of other functions these business perform,
they are retail.
Retailing is evolving into a global, high-tech business. There are many organizations
such as Wal-mart, Carrefour, Food Lion, reliance, Metro……etc are pioneers in this
retail sectored.
Retailers are using sophisticated communication and information system to manage
their business.
The growing power of the large retail has increased their ability to demand trade.
Increase in competition in retail had become obvious in this industry to maintain
effective in store operations strategies.
Customers often aren’t aware of the sophisticated business decisions retail managers
make and the technologies they use to provide goods and services.
PRIMARY SOURCES:
Observation method
Interview method
Respondent’s busy schedule /routines did not give them enough time to respond
properly.
Fear of top management may have prohibited the employee to give their true opinion.
Financial data could not be accessed due to company’s confidential clause.
India’s retail market which is seen as THE GOLDMINE by global players has grabbed
attention of the most developed nations. This is no wonder to the one who knows that the
total Indian retail market is US $350bn. (16, 00,000 crore INR approx.) of which organized
retailing is only around 3 percent i.e. US $8bn (36,000 crore INR approx).“Retailing
includes all activities involved in selling goods or services directly to final consumers for
personal, non-business use. A retailer or retail store is any business enterprise whose sales
volume comes primarily from retailing.” Retail is India's largest industry, accounting for
over 10 per cent of the country's GDP and around eight per cent of the employment.
Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and
fast paced industries with several players entering the market. The presence of 15million
kirana stores brings into light the very fact that the Indian retail industry is highly
fragmented/ unorganized. Retailing in India is gradually inching its way toward becoming
the next boom industry, org shopping has altered in terms of format and consumer buying
behavior, ushering in a revolution in shopping in India. Modern retail has entered India as
seen in sprawling shopping centers, multi-storied malls and huge complexes offer
shopping, entertainment and food all under one roof.
The future of Indian retailing may even witness the concept of 24 hour retailing. Even
though this concept has been in existence in few retail segments like pharmaceuticals and
fuel, it still remains to be a challenge for other segments like food and groceries, apparel
etc to adopt this trend. Although the organized retailing in India is coming up in a big way,
it cannot simply ignore the competition from the conventional stores because of various
factors like reach, extending credit facility and other intangible factors like the human
touch which are provided only by the conventional stores.
Global Scenario:
Retail stores constitute 20% of US GDP & are the 3 rd largest employer segment in USA.
China on the other hand has attracted several global retailers in recent times. Retail sector
employs 7% of the population in China. Major retailers like Wal-Mart & Carrefour have
The global retail industry has traveled a long way from a small beginning to an industry
where the world wide retail sales is valued at $ 7 x 10 5 Crore. The top 200 retailers alone
accounts for 30 % of the worldwide demand. Retail turnover in the EU is approximately
Euros 2,00,000 Crore and the sector average growth is showing an upward pattern. The
Asian economies (excluding Japan) are expected to grow at 6% consistently till 2005-06.
On the global Retail stage, little has remained same over the last decade. One of the few
similarities with today is that Wal-Mart was ranked the top retailer in the world then & it
still holds that distinction. Other than Wal-Mart's dominance, there's a little about today's
environment that looks like the mid-1990s. The global economy has changed, consumer
demand has shifted & retailers' operating systems today are infused with far more
technology than was the case six years ago.
Indian retailing today is at an interesting crossroads. The retail sales are at the highest point
in history and new technologies are improving retail productivity. Though there are many
opportunities to start a new retail business, retailers are facing numerous challenges.
Purchasing power of buyers, especially post-liberalization, increase in product variety, and
increase in economies of scale, with the aid of modern supply and distributions solution.
The Facts
Retailing in more developed countries is big business and better organized that what it is in
India. Report published by McKinsey & Co. in partnership with Confederation of Indian
Industry (CII) states that the global retail business is worth a staggering retailing to
In India the scenario is quiet unique, organized retailing accounts for a mere 5% of the
total retail sector. Although there are around 5 million retail stores in India, 90% of these
have a floor space area of 500 sq.ft. or less. The emergence of organized retailing in IUS $
7 trillion. The ratio of organized The emergence of organized retailing in India is a recent
phenomenon and is concentrated in the top 20 urban towns and cities.
1) LOCATION:
"Right Place, Right choice" Location is the most important ingredient for any business that
relies on customers, and is typically the
prime consideration in a customer’s store choice. Locations decisions are harder to change
because retailers have to either make sustainable investments to buy and develop real
estate or commit to long term lease with developers. When formulating decision about
where to locate, the retailer must refer to the strategic plan:
Investigate alternative trading areas
.Determine the type of desirable store location
Evaluate alternative specific store sites
2) MERCHANDISE:
The primary goal of the most retailers is to sell the right kind of merchandise and nothing
is more central to the strategic thrust of the retailing firm. Merchandising consists of
activities involved in acquiring particular goods and services and making them available at
a place, time and quantity that enable the retailer to reach its goals. Merchandising is
perhaps, the most important function for any retail organization, as it decides what finally
goes on shelf of the store.
3)PRICING:
Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and its
interaction with other retailing elements. The importance of pricing decisions is growing
because today's customers are looking for good value when they buy merchandise and
services. Price is the easiest and quickest variable to change.
4) TARGET AUDIENCE:
"Consumer the prime mover""Consumer Pull", however, seems to be the most important
driving factor behind the sustenance of the industry. The purchasing power of the
customers has increased to a great extent, with the influencing the retail industry to a great
extent, a variety of other factors also seem to fuel the retailing boom.
Major players:
Detailing reasons why Indian organized retail is at the brink of revolution, the IMAGES-
KSA report says that the last few years have seen rapid transformation in many areas and
the setting of scalable and profitable retail models across categories. Indian consumers are
rapidly evolving and accepting modern formats overwhelmingly. Retail Space is no more a
constraint for growth.
India is on the radar of Global Retailers and suppliers / brands worldwide are willing to
partner with retailers here. Further, large Indian corporate groups like Tata, Reliance,
Raheja, ITC, Bombay Dyeing, Murugappa & Piramal Groups ………etc and also foreign
investors and private equity players are firming up plans to identify investment
opportunities in the Indian retail sector. The quantum of investments is likely to skyrocket
as the inherent attractiveness of the segment lures more and more investors to earn large
profits. Investments into the sector are estimated at INR 2000 - 2500 Crore in the next 2-3
years, and over INR 20,000 Crore by end of 2010.
RETAIL FORMATS:
Hypermarket: It is the largest format in Indian retail so far is a one stop shop for the
modern Indian shopper
Merchandise: food grocery to clothing to spots goods to books to stationery.
Space occupied: 50000 Sq .ft. and above.
SKUs: 20000-30000.
Example: Pantaloon retail’s Big Bazaar, RPG’s Spencers (Giant).
Discount store: Standard merchandise sold at lower prices with lower margins and higher
volumes
Merchandise: A variety of perishable/ non perishable goods.
Example: Viswapriya Group’s Subiksha, Piramal’s TruMart.
MBO’s: Multi Brand outlets, also known as Category Killers. These usually do well in
busy market places and Metros Merchandise: Offers several brads across a single product
category.
Kirana stores: The smallest retail formats which are the highest in number (15 million
approx.) in India.
Merchandise: Offers several brads across a single product category.
The smallest retail formats: Which are the highest in number (15 million approx.) in India.
Merchandise: Mostly food and groceries
Recent Trends: Retailing in India is witnessing a huge revamping exercise as can be seen
in the graph
India is rated the fifth most attractive emerging retail market: a potential goldmine.
Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade)
makes up 3 percent or US$ 6.4 billion
As per a report by KPMG the annual growth of department stores is estimated at
24%
Unorganized: Vast majority of the twelve million stores are small "father and son" outlets
Fragmented: Mostly small individually owned businesses, average size of outlet equals 50
s.q. ft. Though India has the highest number of retail outlets per capita in the world, the
retail space per capita at 2 s.q. ft per person is amongst the lowest.
Rural bias: Nearly two thirds of the stores are located in rural areas. Rural retail industry
has typically two forms: "Haats" and “Melas". Haats are the weekly markets : serve groups
of 10-50 villages and sell day-to-day necessities. Melas are larger in size and more
sophisticated in terms of the goods sold (like TVs)
Recent changes:
Experimentation with formats:
Retailing in India is still evolving and the sector is witnessing a series of experiments
across the country with new formats being tested out.
Ex. Quasi-mall, sub-urban discount stores,Cash and carry etc.
Store design:
Biggest challenge for organised retailing to create a “customer-pull” environment that
increases the amount of impulse shopping. Research shows that the chances of senses
dictating sales are upto 10-15%. Retail chains like MusicWorld, Baristas, Piramyd and
Globus are laying major emphasis & investing heavily in store design.
It is the non-food segment, however that foray has been made into a variety of new sectors.
These include lifestyle/fashion segments (Shoppers' Stop, Globus, LifeStyle, Westside),
apparel/accessories (Pantaloon, Levis, Reebok), books/music/gifts (Archies, MusicWorld,
Crosswords, Landmark), appliances and consumer durables (Viveks, Jainsons, Vasant &
Co.), drugs and pharmacy (Health and Glow, Apollo).
Technology in Retail:
Over the years as the consumer demand increased and the retailers geared up to meet this
increase, technology evolved rapidly to support this growth. The hardware and software
tools that have now become almost essential for retailing can be into 2 broad categories.
Internet
Internet is also rapidly evolving as a customer interface, removing the need of a consumer
physically visiting the store.
CRM Systems
The rise of loyalty programs, mail order and the Internet has provided retailers with real
access to consumer data. Data wareho This, along with the various available CRM
(Customer Relationship Management) Systems, allows the retailers to study the purchase
behavior of consumers in detail and grow the value of individual consumers to their
businesses.
FUTURE TREND:
SCOPE OF 24hr RETAILING:
The concept of 24hr. retailing in India has been present only in very limited formats like
the pharmaceuticals (Apollo) and fuel retail outlets (H.P, Reliance etc.) and the other retail
formats used to operate only till the early hours of the night. But because of the changing
Most of the Indian retail formats though capable of operating their formats round the clock
do not choose to do so because of the non feasibility of the idea at present taking in
conjunction the customers’ readiness. For instance if any of the hyper market or
supermarket is functioning during the night the retailer has to bear the extra costs of
electricity, labor and maintenance if the number of footfalls are less very low during the
late nights which otherwise would be profitable to him. Anyways, the shopping time of the
consu India most of the retailing is all about food and groceries. It might not be a rational
prediction that all the consumers will step into the retail outlet at midnights to buy food
and groceries.
This problem can be overcome by implementing the idea in places which have a floating
population even during the nights like railway stations and bus stations. However with the
upcoming culture of malls and the changing lifestyles of the people one can design a small
part of the store or a mall for a new 24/7 retail format which consists of the essential
products like medicines, fruits and vegetables, groceries and some other FMCG products
and test market it. Once if the sales start showing some consistent positive figures and if
the crowd increases then the store can come in a bigger way to reach out to their
customers.
The other option for trying the concept of 24hr retailing is that the retailer can have a
mobile s to happen. outlet which can place itself in the areas which have substantial night
traffic for the sale And once the people are to the 24hr shopping then the retail plans can be
altered accordingly.
Chaupal Sagar :
ITC launched the country's first rural mall ‘ Chaupal Sagar' offering a diverse product
range from FMCG to electronics appliance to automobiles, attempting to provide farmers a
one-stop destination for all of their needs.
Hariyali Bazaar :
There has been yet another initiative by the DCM Sriram Group called the Hariyali Bazaar'
that has initially started off by providing farm related inputs and services but plans to
introduce the complete shopping basket in due course. Other corporate bodies include
Escorts, and Tata Chemicals (with Tata Kisan Sansar) setting up agri-stores to provide
products/services targeted at the farmer in order to tap the vast rural market.
Adhar:
Commenting on the Rural Retailing chapter in INDIA RETAIL REPORT 2005, Mr. Adi B.
Godrej, Chairman, The Godrej Group (India's one of the leading corporate majors) said
that his group had also launched the concept of agri-stores named 'Adhaar', which served
as one-stop shops for farmers selling agricultural products such as fertilisers providing
farmers knowledge on how to effectively utilise these products. "There are 8 stores already
operating in Maharashtra and Gujarat and further expansion is very much on the cards. He
added.
The group plans to take its recently launched retail concept – Nature's Basket - to newer
cities steadily. Godrej Group's Agro and Food division, Godrej Agrovet Ltd. (GAVL)
operates the format, selling a variety of vegetables, fruits and herbs - both local and exotic
thereby introducing the concept of 'farm-to-plate' to urbanites. Godrej plans to open four
more Nature's Basket stores in Mumbai before taking them national. Setting up cost of a
store is about INR 5-10 million and per stores sales are expected in the range of INR 30-
Rs 50 million a year.
Urban Trends:
The urban retailing has been experimenting with many formats like the supermarkets,
hypermarkets, specialty stores, multi branded outlets etc. and of latest it seems to be
embracing the trend of mall culture. It is a rich man's world too, with multi-screen
cinemas, restaurants, games and branded shops - well out of the reach of many of the
country's one billion people. But India's middle-classes, widely travelled and with deep
pockets, are flocking to malls.
SWOT ANALYSIS:
A SWOT analysis of the Indian organized retail industry is presented below:
Strength:
Retailing is a "Technology-intensive" industry. It is technology that will help the
organized retailers to score over the unorganized retailers. Successful organized
retailers today work closely with their vendors to predict consumer demand,
shorten lead times, reduce inventory holding and ultimately save cost. Example:
Wal-Mart pioneered the concept of building competitive advantage through
distribution & information systems in the retailing industry. They introduced two
innovative logistics techniques – cross-docking and EDI (electronic data
interchange)
On an average a super market stocks up to 5000 SKU's against a few hundred
stocked with an average unorganized retailer. This will provide variety in products
(required breadth & depth for consumers)
Weakness:
Less Conversion level:
Despite high footfalls, the conversion ratio has been very low in the retail outlets in a mall
as compared to the standalone counter parts. It is seen that actual conversions of footfall
into sales for a mall outlet is approximately 20-25%. On the other hand, a high street store
of retail chain has an average conversion of about 50-60%. As a result, a stand-alone store
has a ROI (return on investment) of 25-30%; in contrast the retail majors are experiencing
a ROI of 8-10%
Customer Loyalty
Retail chains are yet to settle down with the proper merchandise mix for the mall outlets.
Since the stand-alone outlets were established long time back, so they have stabilized in
terms of footfalls & merchandise mix and thus have a higher customer loyalty base.
Opportunity:
The Indian middle class is already 30 Crore & is projected to grow to over 60 Crore
by 2010 making India one of the largest consumer markets of the world.
The IMAGES-KSA projections indicate that by 2015, India will have over 55 Crore people
under the age of 20 - reflecting the enormous opportunities possible in the kids and teens
retailing segment
Organized retail is only 3% of the total retailing market in India. It is estimated to
grow at the rate of 25-30% p.a. and reach INR 1,00,000 Crore by 2010.
Rural Retailing:
India's huge rural population has caught the eye of the retailers looking for new areas of
growth. ITC launched India's first rural mall "Chaupal Saga" offering a diverse range of
products from FMCG to electronic goods to automobiles, attempting to provide farmers a
one-stop destination for all their needs." Hariyali Bazar" is started by DCM Sriram group
which provides farm related inputs & services. The Godrej group has launched the concept
of 'agri-stores' named "Adhaar" which offers agricultural products such as fertilizers &
animal feed along with the required knowledge for effective use of the same to the farmers.
Threats:
If the unorganized retailers are put together, they are parallel to a large supermarket
with no or little overheads, high degree of flexibility in merchandise, display,
prices and turnover.
Shopping culture has not developed in India as yet. Even now malls are just a place
to hang around with family and friends and largely confined to window-shopping.
Cultural Variation leads to variation in merchandise in India at different
geographical locations.
Challenges in Retail:
The following are the key areas that may pose a threat to those retail companies that ignore
the impacts of giving less importance to manage their demand and supply: -
Forecasting and Inventory Management for JIT replenishments of products.
Peak Season Demand Handling.
Order Management in case of retailers with multiple outlets.
Warehouse Management in case of multiple outlets.
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.
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.
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 RPG’s quality and organizational excellence awards,
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,
Policies and processes, and its organization-wide deployment.
MANUFACTURING CATEGORY
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:
RPG’s business ethics promote higher levels of excellence. The group’s 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.
COMPANY PROFILE
Spencer’s Retail is the largest supermarket chain in India. At Spencer’s 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 couldn’t 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 Spencer’s. And this trust has been the outcome of a consistent high-
quality service.
Spencer’s Daily
The Spencer’s 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,
Spencer’s Daily saves you the hassle of bargaining with the local Kirana shop owners
(because we offer the lowest possible prices).
Spencer’s Superstore
The Spencer’s Super is the place to go for your monthly shopping. About 8000-15,000 sq.
ft. in size the Spencer’s 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.
Spencer’s Hyper
The Spencer’s 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
Spencer’s has retail footage of over 1.3 million square feet and over 250 Spencer’s stores
in 50 cities.
Spencer’s fresh: all food items, juices, and bread products are available.
Spencer’s Express: your food and grocery store next door.
SPENCER’S 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-in-Chief,
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, Café 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.
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.
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 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 SPENCER’S?
Spencer’s 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 40% more positively.
(Source: Nielsen Media)
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:
Customer Sovereignty
People Orientation
Innovation & Entrepreneurship
Transparency & Integrity
Passion for Superior Performance
Anticipation, Speed & Flexibility
Staff briefing store manager will discuss previous day’s targets and achieved to days
targets and special promos, awareness among the team members.
Handling CSD activities: The work is that the store manager has to take responsibility of
CSD activities like exchanges, refunds, customer complaints & suggestions.
Check list execution: store manager checks the list which includes stock arrival from
warehouse .CSA’S attendance and their work.
Store manager will check everything that are included to housekeeping like cleaning of
floor, baskets, trolleys etc,.
Store manager keeps some amount in every cash counter which is useful for change as
opening balance. The cashier signs when store manager gives amount and again he will
sign shift end.
Operation management:
The first Spencer’s hypermarket is located in the heart of Hyderabad, in Musheerabad, at a
site spread over 1,20,000sq.ft area. ‘Spencer’s’ stock s over 20,000 products across a
50,000-sq.ft.singlelevel shopping space, and employs around 160 people
The store has a convenient food court and concessionaries who sell a wide range of
products like pearls jewelry, ethnic wear, liquor, fresh chicken, music and personal care
product
Spencer’s hypermarket also offers memberships to B28 customers that have advantages of
convenient shopping combined rewards for bulk purchases.
Inventory In Spencer’s
General Stock Receiving:
Inwards process means stock receiving from vendors and manufacturing department and
receiving damage stock from stores. In this process they are doing three functions.
1. GRN process receipt note
2. Stock transfer in process
3. Damage transfer in process.
Outwards process:
Out wards process means stock dispatching from warehouse to stores and damage stock
dispatching from warehouse to vendors or manufacturing department in this process the
main functions are
(1) General stock dispatching process
(2) F&V dispatching process
(3) Damage stock dispatching process
Indent process
It will start in this process every day before closing the store manager send the day-end file
means requirement of stock for next day(the day-end file is create by compare both store
MBQ and store QOH).This day –end file will come to it department and the IT manager
will give prepare indent. This process is done through automatically system process .The
indent will come in division wise to each store that is called pick list.
STAFFING
INTRODUCTION
The organizational structure of a retail store will vary by the size and type of the business
most task involved with operating a retail business will be the same .However small or a
independent retail store may combine many sectors together under one division, while
larger stores create various division for each particular function along with many layers of
management .As Spencer’s is an organized store, it consists of various act ivies .Under
RECRUITIMENT PROCESS
Generally the customers facilitators are recruited by tapping the known sources .They then
look into the bio data and the experience the person has. Mostly the company prefer to
recruit experienced people .This helps the store to reduce to training cost. The payment of
the CSA’s is Rs 4000 and the payment of supervisor s is Rs 6000 and Rs15000 to
manager .Based on the experience they have the salary changes spender’s over, there are
some credits and incentives given to employees who sell Spencer’s in a month .This helps
the management to in build a competitive spirit the rest.
INTRODUCTION
The supply chain is the process of creating products for customers .Supply change span
from raw materials, to manufacturing, distribution, transportation, warehousing and
product sales. As you can imagine, when the number of resources, operations, and
functions increase, managing this supply chain can become very complex. An entire supply
chain could exist within a single company supply chains operating within enterprise! Or
supply chain can span multiple enterprises before it reaches a customer .While other
dreams like demand chain and value chain are used today, they usually mean the same
thing managing a portfolio of assets and relationships to transform raw material into
finished goods for customers in the most efficient manner.
A supply chain is dynamic and involves the constant flow of information, product and
funds between different stages .Realistic supply chains have multiple end products with
shared components, facilities and capacities. The flow of material is not always along an
arbores cent network, various modes of transportation may be considered, and the bill of
materials for the end items may be both deep and large.
Supply chain management is typically use viewed to lie between fully vertically integrated
firms,where the entire material flow owned by a single firm and those where each channel
member operators independently, such a team is spencer’s competitive when each player
knows how to be positioned for hand-off.
In Visakhapatnam the warehouse is located Gajuwakha where all products are send to all
stores depending on different categories of products, different supply chain process will
use by Spencer’s owned manufacturer and directly from farmers, and for branded products
dispatches from that branded company manufacturer’s.
The same process is adapted by all the stores of spencer’s .thus all about their supply chain
process at spencer’s.
PROCESSES IN WAREHOUSE OR DC
RECEIVING
DISTRIBUTION
DISPATCH
CUSTOMER SERVICE:
Customer services with cheering faces wishing the customers and provide the service
properly to them like basket, trolley and parking etc.,
FIRE FIGHTING:
Whenever there is some information about some fire accident immediately rushing to that
area and try extinguishing the fire. From this tie should will aware about the fire
equipments and this operation.
First Aid: security should provide the first aid to any one like customers, staff when ever it
is needed. Security is of contract based. the head is the Spencer’s employees and reaming
all are contract people.
SALES PROMOTION:
Sales promotion is a key ingredient in marketing campaigns.
SALES PROMOTION means a collection of incentive tools mostly short term, designed to
stimulated quicker or greater purchase of particular product or services by consumers or
the trade.
Sellers use incentive type promotions to attract new prospects, to rewards loyal customers
and to increase the repurchase rates of occasional users. Sales promotions often attract the
brand switchers.
In advertising take a back seat to sales promotion because advertising typically acts to
build brands loyalty. Sales promotion with its incessant prices off, coupons, deals,
premiums and blaring quality may devalue the product offering in the buyer’s minds.
The HR manager will give the incentives to the category wise .The HR will keep the
records of the every category and they should be given a list of sales day by day to the each
category.He will take the attendance of the workers of each category.In case of any
shortage is held he will take the alternate decision and want to allocate another person to
that category.
The HR manager will work hard for the development of the organization for that purpose
he will trained up the member of each category by giving the demo classes to all people.
The HR manager will motivates the workers in the organization and gives some of the
benefits to workers in the organization like safety and security, health, bonus any
compensation etc will be taken under the HR.
BILLING:
Billing is major part of the store without this the store will not move forward. In this
billing department the people will be take the all the responsibilities while they are in duty
about the money. They should very careful while they are doing their job. Every day they
CATEGORIES:
Retail marketing industry is growing at rapid space in India. Government policies are also
helping the industries to have a strong foot hold part of the product mix of the retail
industry is FMCG that is bifurcated to food and Non-Food. Food division broadly divided
as biscuit, beverages and noodles where as non food segment is parted into skin, hair and
body segment. So display of goods of this segment is based on price range. The leading
player among the existing one is HLL with around 450 products followed by Henkel, RBI
and P&G there are around 48 bays in the spencer followed 5 selves in the displays
The total trading area 25000sqft in which the following break up may be observed as
Home,Work and Play - 2800 SKU
FMCG - 3623 SKU
F&V - 1400SKU
Fashion - 5650SKU
Hi-Tech - 1450 SKU
Staples - 2440 SKU
Bakery and food - 800SKU
STAPLES:
It is a category completed based on the quality .Staples are a day to day essential category
for A.P people and it is the destination category. Company will put their own brands and
sell it like Dal Rice, Masala etc. Four P’s in this category is to be followed they are:
1. Price
2. Product Knowledge
3. Planogram
4. Promotions
Non-food category consists of powders/ Detergents, washing Bars, Floor Cleaner, Toilet
Cleaner, pooja ltems, Sanitary ltems, Mosquitoes/ Reptiles, Air fresher, Agarbathi Tooth
Brush, Tooth paste, Mouth Wash, Baby Toiletries, Creams, Soaps, Lotions, Diapers,
shaving creams,razor Blades, OTC products (over the counter) Hair oil color, Bath
Accessories etc,.
In Home Kitchen Ware, Table Ware, Home needs, Home décor, Gifts and Novelties,
Cleaning aids, Bathroom aids, Serving ladles, tainless Steel, plates, Bake and Serve,
Cookery, Serving Dishes, Glass Ware, Lend and Fashion like bed sheets, towels, pillow
covers, kerchiefs. Door croutons etc,.
In play Soft toys, Sports, Education and Entertainment. Board Games and puzzles infant
Toys. Play characters etc.
a. BED ROOM:
In this category the furniture will have different types of are there Which are to be
decorated in the bed room, to get good out look of the bed room, Due to the increase in the
nucoeat famioies there most be a importance came to the furniture,
Some of the item in furniture which are decorated are bed, mattress, dressing table, chairs,
book stand ward robes unit,
Some of the furniture items which are arranged in the childrens. Room are bed mattress,
chair study table. Book shelfs. Ward robes, computer table, computer chairs, etc,.
GARMENTS:
It is the only category which gives more margin than any other category the margin with be
28 to 30%. That total sale contribution will be 9 to 10%
ADVERTISING
Advertising is a form of communication that typically attempts to persuade potential
customers to purchase or to purchase or to consume Spencer’s of a particular brand of
product or service. While now central to the contemporary global economy and the
reproduction of global production networks, it is only quite recently that advertising has
been Spencer’s than a marginal influence on patterns of sales and production. The
formation of modern advertising was intimately bound up with the emergence of new
forms of monopoly capitalism around the end of the 19 th and beginning of the 20th century
as one element in corporate strategies to create, organize and where possible control
markets, especially for mass produced consumer goods. Mass production necessitated
mass consumption, and this in turn required a certain homogenization of consumer tastes
for final products. At its limit, this involved seeking to create world cultural convergence to
homogenize consumer tastes and engineer a convergence of lifestyle, culture and behaviors
among consumer segments across the world.”
Print media: Spencer’s concentration mostly on print media rather than electronic medias
like TV’S internet their perception is that print media creates a better impact and
impression on customer minds. Spencer’s mostly concentrate on print media to advertise
bout the discounts and offers of large number of sku’s and to keep remembrance in mind of
the customer for that they mostly concentrate on leaf lets and news papers.
Hoardings playing major role in advertising the brand of Spencer’s adithya Birla group to
all types of customer like upper class and middle class customers Spencer’s concentrate
upon advertisement on hording at every part of the city.
VISUAL MECHANDISING:
Visual merchandising can be termed as a orderly, systematic, logical and intelligent way of
putting stock on floor. It has several aspects and involves sku planning, store windows and
floor displays, signs, design, fixtures and hardware, props and mannequins. As retailing
becomes increasingly complex creating the right atmosphere in the store and presenting
merchandising in the right manner becomes more and more important.
To produce good visual merchandising, it is vital to understand the product and the
customer. Good visual merchandising means selling space is neat, easy-to-see, follow and
shop. It means merchandising arranged in a manner that enable the customer to buy
quickly, efficiently and comfortably.
The design and lay out of the store are a means of communicating the image of the retail
store. The primary consideration the retailer tales in to account while choosing the look for
his store and the merchandising that he is going to sell, creating store image is like giving a
personality to the store it is what the store is all about,
SPACE PLANING
It helps a retailer determine the amount of space available for selling and for storage, it
also helps determine the following,
The location of various departments
The location of various products waith in the department
The specific location for impulse products, destination areas, seasonal
Products, products with specific merchandising needs, adjacent departments etc.,
The relation of space to profitability
LIGHTING
Lighting is a key factor of retail design .The lighting screen to adopt has to be decided
upon keeping in mind the kind of products being sold in the store and the target audience.
Effective lighting is key to the sale of merchandising and it helps create a favorable first
impression.
METHODS OF DISPLAY
Retailers while displaying their products may adopt various methods.
COLOUR DOMINANCE
This is simplest and most direct method of presenting merchandising .In such a display
merchandise is primarily displayed by color .Within the color display the products may be
displayed by size and style.
COORDINATE PRESENTATION
Many times it is effective to present merchandising are coordinate manner .Presentation by
coordination may be done for garments and can also can be done for the home-fashions,
bed and bath lines and even kitchen requisites.
PRESENTATION BY PRICE
In such a display, the inexpensive, bargain or merchandising is displayed first. The volume
of the product and the saving is dominant.
Interpretation:
The above graph shows out of 100 respondents 20% of the people know through T.V/FM,
12% of the people know through pamphlet, 15% of the people know through newspaper
and remaining 53% of the people know through others.
Interpretation:
The above graph shows out of 100 respondents 13% of the people delighted with product
quality,67% of the people happy, 15% of the people somewhat satisfied and 5% of the
peoples are dissatisfied.
Interpretation:
The above graph shows out of 100 respondents 26% of the people delighted with product
variety 39% of the people happy, 24% of the people somewhat satisfied and 11% of the
peoples are dissatisfied.
Interpretation:
The above graph shows out of 100 respondents 29% of the people delighted with product
availability 43% of the people happy, 15% of the people somewhat satisfied and 13% of
the peoples are dissatisfied.
Interpretation:
The above graph shows out of 100 respondents 15% of the people delighted with product
pricing 52% of the people happy, 22% of the people somewhat satisfied and 11% of the
peoples are dissatisfied.
Interpretation:
The above graph shows out of 100 respondents 17% of the people delighted with store
ambience 40% of the people happy, 28% of the people somewhat satisfied and 15% of the
peoples are dissatisfied.
Interpretation:
The above graph shows out of 100 respondents 28% of the people delighted with
convenient location 66% of the people happy, 10% of the people somewhat satisfied and
6% of the peoples are dissatisfied.
Sales
Interpretation:
The above graph shows out of 100 respondents 24% of the people delighted with fast &
accurate billing 57% of the people happy, 19% of the people somewhat satisfied and 10%
of the peoples are dissatisfied.
Sales
Interpretation:
The above graph shows out of 100 respondents 23% of the people delighted with customer
service 69% of the people happy, 12% of the people somewhat satisfied and 6% of the
peoples are dissatisfied.
Yes
No
Interpretation:
The above graph shows out of 100 respondents 84% of the people are ready to recommend
to others 16% of the people are not ready to recommend to others.
Websites:
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Spencersretail.com