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