AN INTERIM

REPORT ON

“Inventory management and their effect on product placement”

BY
PARASURAMPURAM SAMPATH KUMAR
18BSP2637
SPAR HYPERMARKETS INDIA LIMITED.

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 AN INTERIM
REPORT ON

“Inventory management and their effect on product placement”

BY
PARASURAMPURAM SAMPATH KUMAR
18BSP2637

An interim report submitted in partial fulfilment

of the requirements of
PGPM program of IBS 2018-2020

Submitted under the guidance of

MR.RAVINDRA BABU MR. V DILIP KUMAR

(FACULTY GUIDE) (COMPANY GUIDE)

DATE OF SUBMISSION: 18-4-2019

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 AUTHORIZATION

I, PARASURAMPURAM SAMPATH KUMAR, Enrolment no: 18BSP2637, hereby declare that this
project work entitled ‘Inventory management and their effect on product placement’ is my original work
under the guidance of Mr. Ravindra Babu IBS Bangalore.

I further declare that this report is based on the information collected by me and has not been submitted to
any other university or academic body.

Date: 18th April 2019

PARASURAMPURAM SAMPATH KUMAR
18BSP2637

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 ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the possibility to complete this
project till now. I want to thank SPAR HYPERMARKETS PRIVATE LIMITED for giving me
permission to commence this project in the first instance, to do the necessary research work and to
use the available data.

I am deeply indebted to my supervisors MR. V DILIP KUMAR (VM MARKETING) ,MRS.

BHANU BHARGAVI (HR) for their help, stimulating suggestions and encouragement in all the
time of internship till the date.

I wish to extend my profound gratitude to MR.RAVINDRA BABU, IBS Bangalore for his
guidance and valuable suggestions throughout my internship till the date.

Especially, I would like to give my special thanks to my team members, parents and friends for
their patient love and help in internship.

PLACE: HYDERABAD PARASURAPURAM SAMPATH KUMAR

DATE: 18-04-2019 18BSP2637

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 INDEX

TITLE PAGE NO

1. Abstract 6
2. Introduction 7
3. PESTEL Analysis 9
4. Retail Industry 14
5. PORTERS five force model 15
6. SWOT analysis ; 17

7. Objectives and Methodology of the study 19

8. Project 20
9. Marketing strategies 22
10.Limitations 24
11.References 25

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 ABSTRACT

My project Marketing Strategies, their implementation for Spar India Limited and Relationship
Management has helped me by providing awareness of online application and, ways to tackle the queries
raised from the side of Customer and satisfying them with practical answers that will enable them to
reach meaningful conclusion.

The report focuses on how the online application works and what are the various issues faced by the
customer and corporate and solving their doubts in order to bring them to a decision to tie up. Further
focuses on how the deal has been specifically modified for a specific client. It also shows how important
it is to understand the needs of the customer and to provide the best possible result.

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 INTRODUCTION

Online applications are a popular method for booking products. Customers can book any products on
computers and mobile phones by using online security to protect their privacy and financial information
and by using several online applications to compare prices and facilities at different application.

Prior to the Internet, customer could write, telephone the application directly, or customer to make a
reservation on selected product. Online applications have pictures of different product and information
on prices and deals, and even information on local delivers. Many customers are encouraging this
application.

Online application reservations are also helpful for making last minute of product booking. May drop the
price of a product if some products are still available. There are several websites that specialize in
searches for deals on product. Same with application SPAR INDIA.

ABOUT THE COMPANY:

SPAR Hypermarkets in India is a result of a strategic partnership between Dubai based Landmark
Group’s Max Hypermarkets India Pvt. Ltd. & Amsterdam based SPAR International. The company
started with one store in 1932 and now comprises of 12,500+ stores in 44 countries across 4 continents.
The success story of SPAR has been underpinned by a set of values that have guided the organization
since its inception which was more than 80 years ago. At the heart of these core values is the commitment
of SPAR stores worldwide towards Freshness, Choice, Value, & Service.

SPAR India currently has 20 stores across 9 cities; Bengaluru, Mangalore, Shimoga, Chennai,
Coimbatore, Hyderabad, New Delhi, Gurugram, & Ghaziabad

Our vision is to be the most engaging and innovative hypermarket in India, making a difference in the
lives of teams, customers, communities and shareholders, Everyday!

SPAR India has always been focused on providing the best value to its customers. Exclusive offers &
best prices give our customers more than one reason to come back for more. Whether it is about daily
needs at guaranteed lowest prices, savings on special products under Super Savers Offers, getting the
most out of new & clearance sales, or savings on SPAR Private Label Products with ‘Save With SPAR

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Offers’, we have something for everyone, so that our customers go back home with a valuable shopping
experience..
. We also make sure that our customers feel spoilt for choice by providing a wide variety of products;
Fruits & Vegetables, Beverages, Grocery, Meat, Fish & Poultry, Dairy, Apparels, Plastics, Utensils, &
Crockery, Home Furnishing etc. This gives our customers the opportunity to pick from a wide assortment
of products & benefit from it. Our ‘Taste the World’ section allows customers to enjoy variety of cuisines
from all over the world. Our ‘Taste of India’ section offers local Indian flavors from across the county.

FOUNDERS
.
The Landmark Group has appointed Rajeev Krishna as the managing director of Max
Hypermarkets in India. Prior to this, he was the senior advisor for McKinsey retail and consumer
practices, and earlier, the executive vice president and business head of retail operations at, part
of the Bharti Wal-Mart joint venture in India. Krishnan takes over from the outgoing managing
director, Viney Singh, and the appointment has been effective from August 1, 2016. Singh will
continue to be on the board of the company as a non-executive director.

As managing director, Krishnan will guide and direct the strategy and execution of the
Hypermarket & Supermarket business of the SPAR brand in India, and will report to the board
of; Max.

Krishnan has over 29 years of global experience with retail and consumer background at Target,
Wal-Mart & Mckinsey & Company. Before Bharti Retail, he was the group VP at Target
Corporation in US market and spent 18 years with them

The SPAR brand is operated by Max Hypermarkets in India and operates 17 Hypermarkets
across the country.

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 PESTEL ANALYSIS

PESTEL analysis provides great detail about operating challenges SPAR Group, Inc. will face in
prevalent macro environment other than competitive forces. For example an Industry may be
highly profitable with a strong growth trajectory but it won't be any good for SPAR Group, Inc.
if it is situated in unstable environment.

Spanish oil giant Repsol had to face a similar instance. It started an above average profitability
operations in Argentina and made strong returns in 5-7 years. But the business was later
expropriated by the Left Wing government. So the decade long profits didn’t materialize in the
end.

Political Factors
Political factors play a significant role in determining the factors that can impact SPAR Group, Inc.'s
long term profitability in a certain country or market. SPAR Group, Inc. is operating in Business
Services in more than dozen countries and expose itself to different types of political environment
and political system risks. The achieve success in such a dynamic Business Services industry across
various countries is to diversify the systematic risks of political environment. SPAR Group, Inc. can
closely analyze the following factors before entering or investing in a certain market-

 Political stability and importance of Business Services sector in the country's economy.
 Risk of military invasion
 Level of corruption - especially levels of regulation in Services sector.
 Bureaucracy and interference in Business Services industry by government.
 Legal framework for contract enforcement
 Intellectual property protection
 Trade regulations & tariffs related to Services
 Favored trading partners
 Anti-trust laws related to Business Services
 Pricing regulations – Are there any pricing regulatory mechanism for Services
 Taxation - tax rates and incentives
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  Wage legislation - minimum wage and overtime
 Work week regulations in Business Services
 Mandatory employee benefits
 Industrial safety regulations in the Services sector.
 Product labeling and other requirements in Business Services

Economic Factors
The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign exchange
rate and economic cycle determine the aggregate demand and aggregate investment in an economy.
While micro environment factors such as competition norms impact the competitive advantage of the
firm. SPAR Group, Inc. can use country’s economic factor such as growth rate, inflation & industry’s
economic indicators such as Business Services industry growth rate, consumer spending etc to
forecast the growth trajectory of not only --sectoryname-- sector but also that of the organization.
Economic factors that SPAR Group, Inc. should consider while conducting PESTEL analysis are -

 Type of economic system in countries of operation – what type of economic system there is
and how stable it is.
 Government intervention in the free market and related Services
 Exchange rates & stability of host country currency.
 Efficiency of financial markets – Does SPAR Group, Inc. needs to raise capital in local
market?
 Infrastructure quality in Business Services industry
 Comparative advantages of host country and Services sector in the particular country.
 Skill level of workforce in Business Services industry.
 Education level in the economy
 Labor costs and productivity in the economy
 Business cycle stage (e.g. prosperity, recession, recovery)
 Economic growth rate
 Discretionary income
 Unemployment rate
 Inflation rate
 Interest rates

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Social Factors
Society’s culture and way of doing things impact the culture of an organization in an environment.
Shared beliefs and attitudes of the population play a great role in how marketers at SPAR Group, Inc.
will understand the customers of a given market and how they design the marketing message for
Business Services industry consumers. Social factors that leadership of SPAR Group, Inc. should
analyze for PESTEL analysis are -

 Demographics and skill level of the population

 Class structure, hierarchy and power structure in the society.
 Education level as well as education standard in the SPAR Group, Inc. ’s industry
 Culture (gender roles, social conventions etc.)
 Entrepreneurial spirit and broader nature of the society. Some societies encourage
entrepreneurship while some don’t.
 Attitudes (health, environmental consciousness, etc.)
 Leisure interests

Technological Factors
Technology is fast disrupting various industries across the board. Transportation industry is a good
case to illustrate this point. Over the last 5 years the industry has been transforming really fast, not
even giving chance to the established players to cope with the changes. Taxi industry is now
dominated by players like Uber and Lyft. Car industry is fast moving toward automation led by
technology firm such as Google & manufacturing is disrupted by Tesla, which has stated an
electronic car revolution

A firm should not only do technological analysis of the industry but also the speed at which
technology disrupts that industry. Slow speed will give more time while fast speed of technological
disruption may give a firm little time to cope and be profitable. Technology analysis involves
understanding the following impacts -

 Recent technological developments by SPAR Group, Inc. competitors

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  Technology's impact on product offering
 Impact on cost structure in Business Services industry
 Impact on value chain structure in Services sector
 Rate of technological diffusion

Environmental Factors
Different markets have different norms or environmental standards which can impact the profitability
of an organization in those markets. Even within a country often states can have different
environmental laws and liability laws. For example in United States – Texas and Florida have
different liability clauses in case of mishaps or environmental disaster. Similarly a lot of European
countries give healthy tax breaks to companies that operate in the renewable sector.

Before entering new markets or starting a new business in existing market the firm should carefully
evaluate the environmental standards that are required to operate in those markets. Some of the
environmental factors that a firm should consider beforehand are -

 Weather
 Climate change
 Laws regulating environment pollution
 Air and water pollution regulations in Business Services industry
 Recycling
 Waste management in Services sector
 Attitudes toward “green” or ecological products
 Endangered species
 Attitudes toward and support for renewable energy

Legal Factors
In number of countries, the legal framework and institutions are not robust enough to protect the
intellectual property rights of an organization. A firm should carefully evaluate before entering such
markets as it can lead to theft of organization’s secret sauce thus the overall competitive edge. Some

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of the legal factors that SPAR Group, Inc. leadership should consider while entering a new market
are -

 Anti-trust law in Business Services industry and overall in the country.

 Discrimination law
 Copyright, patents / Intellectual property law
 Consumer protection and e-commerce
 Employment law
 Health and safety law
 Data Protection

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 Retail Industry

The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the
entry of several new players. Total consumption expenditure is expected to reach nearly US$ 3,600
billion by 2020 from US$ 1,824 billion in 2017. It accounts for over 10 per cent of the country’s Gross
Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest
global destination in the retail space.

Market Size
India's retail market is expected to increase by 60 per cent to reach US$ 1.1 trillion by 2020, on the back
of factors like rising incomes and lifestyle changes by middle class and increased digital connectivity.
Online retail sales are forecasted to grow at the rate of 31 per cent year-on-year to reach US$ 32.70
billion in 2018.
India is expected to become the world’s fastest growing e-commerce market, driven by robust investment
in the sector and rapid increase in the number of internet users. Various agencies have high expectations
about growth of Indian e-commerce markets.
Luxury market of India is expected to grow to US$ 30 billion by the end of 2018 from US$ 23.8 billion
2017 supported by growing exposure of international brands amongst Indian youth and higher purchasing
power of the upper class in tier 2 and 3 cities, according to Assocham.

Investment Scenario
The Indian retail trading has received Foreign Direct Investment (FDI) equity inflows totalling US$ 1.59
billion during April 2000–December 2018, according to the Department for Promotion of Industry and
Internal Trade (DPIIT).
With the rising need for consumer goods in different sectors including consumer electronics and home
appliances, many companies have invested in the Indian retail space in the past few months.
Beccos, a South Korean designer brand is set to enter the Indian market with an investment of about Rs
1.00 billion (US$ 14.25 million) and open 50 stores by June 2019.
Walmart Investments Cooperative U.A has invested Rs 2.75 billion (US$ 37.68 million) in Wal-Mart
India Pvt Ltd.

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 PORTER’S FIVE FORCE MODEL
Porter's five forces analysis is a framework that attempts to analyze the level of competition within an
industry and business strategy development. It draws upon industrial organization economics to derive
five forces that determine the competitive intensity and therefore attractiveness of an Industry.
Attractiveness in this context refers to the overall industry profitability.

Porter five force models is simple yet a powerful tool which helps in understanding where the power lies
in the business. The tool helps to identify whether new products, services or businesses have the potential
to be profitable.

BARGAINING
POWER OF
CUSTOMER
(HIGH)
COMPETITION IS
MORE

THREAT OF THREAT OF
RIVALRY
SUBSTITUTION NEW ENTRY
(MODERATE)
(HIGH) (HIGH)

BARGAINING
POWER OF
SUPPLIERS
(HIGH)

Bargaining power of customer:

As Spar India do not belong to the Monopoly market. So, there are many more companies which offer
similar services. There are more chances where the customer might switch to other companies as in this
industry brand loyalty is low. Also they have numerous ways of making the reservation such as they can

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book directly by walking in hotel or through other online agency’s application to get the lowest room rent
per night. Hence the bargaining power of customer is more.

Bargaining power of suppliers :

As the service is similar, the supplies across the companies are similar. So, the supplier wants to be with
the best firm. There are number of players in the market with overlapping requirements. Hence suppliers
have high bargaining power. They bargain on the commission rate.

Competitive rivalry:

. The force indicates free entry into this sector the resources (Technical manpower as they are paid well)
required are also available in abundance. Rivalry is very intense due to very low product differentiation.
Hence the competitor rivalry is very high.

Threat of substitute:

Here technology plays a vital role as the change in technology can change the current business scenario.
There are several similar platforms are available in the market like bigbazer, Max, best price etc. So due
to the change in the technology and large number of companies in the industry, the threat of substitute is
high.

Threat of new entrants:

As the percentage of online booking is on a regular hike, so there can be any entrepreneur who can think
of this idea. Also in today’s world the mobile application are dominating in the market so anyone can
come up with this idea of opening an OTA.

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 SWOT ANALYSIS

Strengths:

• Secure and trusted channel for facilitating payments

• product available

• Easy and simple to use.

• Tied up with the corporate.

• Guaranteed payment within 24 hours from the time of booking.

• Introduces “Paper Less” transaction.

• The invoice generated will be there for 1 year on your account.

• Free delivery.

Weaknesses:

 Not very well-known in the market.

 Not partner with the channel managers.

Opportunities:

• Offering better price for the customer in line with the customer exceptions.

• Income level is at constant increase.

• Growing Demand for online booking.

Threats:

• Present competitors having substantial market share

• Newly emerging online booking portals

• Possible lack of co-ordination with the customer.

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MAIN TEXT

Spar India limited has introduced an online application, like amazon, Flipkart, Spar India application. The
SIP is in the field of marketing and store marketing where our work is to download the application by the
customer. And explain the application features twitch different categories of the application.

In the SIP, our work is to get maximum downloads the application and explain the features of the
application. Then take the feedback of the customer with different ways of the application. And the SPAR
INDIA has providing a voucher of 499 per one downloading that spar India application. .

Further we have been given an opportunity to develop marketing strategies to promote the mobile
application for the awareness of the general public as well as customers and corporate bodies which will
help us to get maximum promotions.

As the report unfolds, the first part gives a brief idea about the company and as the project wholly based
on the product it gives the clear picture about the various features of the product and my understanding of
the product from the user prospective. Which then moves to the other part where showcased the various
other tasks and objectives performed by me in the in the organization. And it is also depict the amount of
learning and takeaways throughout the project.

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Objective of the Project
The main objective of the SIP is to get insights about the mobile application and the related field
associated with it.
Marketing strategies in product placement of the SPAR
Downloading the application.
To suggest marketing strategy for promotion of mobile application.
Also, it would help us to get insight about online application and how its back-end works.
Further, we will know about how different portals differentiate their application and website to
attract customers in this competitive industry.

Methodology
Data collection: Secondary Data: Internet, Company database.
Cold Calling: We call the customer and try to download the application.
Meeting customer and selling benefits: In all cases I am not able to meet customer directly As I
was covering all the major cities in Hyderabad I looked for alternatives and give them the
detailed explanation of the whole process and the benefits for tying-up with Spar India application
and how we are better than the rivals in the industry.
Tie-up mail: Once they are convinced, an agreement is filled with them detailing therein the
scope of work, the details regarding payment and various terms and conditions. Further, they need
to fill up application registration form consisting of general details and their bank account details
for payment purposes.

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 PROJECT WORK

CULTURE

Goal:
To attract, develop and retain the most talented, confident, committed, risk taking, brave and value
driven employees!

To make Spar India limited the place for the Ambitious, Innovative, Result Oriented and Cohesive people
to realize full potentials and help Spar India limited achieve exponential growth!

Key Pointers:

1. Freedom

2. Responsibility

3. Creativity

4. Peak Performance

5. Alignment

6. High Pay

7. Personal & Professional Development

Values:
Integrity, Transparency, Excellence, Respect.
We only reward the above mentioned values shown through the behavior and skills by the employees &
promoters

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Key Skills:

1. Judgment: - Make Wise Decisions (not clouded by biases, emotions or any other incalculable
aspects). Identify the cause and not just focus on effect. Thinking strategically (THE BIG
PICTURE) and not with a myopic view of things. Ability to prioritize dispassionately.

2. Communication - Listen to understand & not to respond! Concise, articulate and respectful in
speech and writing. Agree to disagree. Never raise the volume, only raise the standard.

3. Impact/Reliable/Accomplished - Constancy and Consistency in action. Exhibit bias-to-action and

avoid analysis-paralysis & intellectual masturbation.

4. Curiosity - Always willing to learn and upgrade. Get the holistic picture. Gain knowledge of the
business, technology and customers. Willing to contribute outside specialization.

5. Creativity/Innovation - Ability to not just think outside the box, but an understanding that there's
no box! Challenge the status quo. Create new and useful ideas. Asking questions, and keeping
things simple.

6. Courage - Not shying away from controversial topics. Ability to take tough decisions and
accepting the consequences. Question everything that's inconsistent with our values.

7. Passion - Inspirational through Actions! Care intensely about Spar India success. Tenacious and
Open to Happiness & Celebration on every success.

8. Honesty - Fully transparent, Direct & non-political! Won't talk behind others back. Quick to admit
mistakes and pledge to improve.

9. Selflessness - Fully committed to Spar India success. Think beyond your ego when looking for
solutions. Make time to help our colleagues. Share relevant information openly and proactively.

"We will keep trying to improve our culture as we grow and gain more experience. However, the goal
will always remain the same!"
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To attract, develop and retain the most talented, confident, committed, risk taking, brave and value
driven employees!

To make Spar India THE place for the Ambitious, Innovative, Result Oriented and Cohesive people to
realize full potentials and help Spar India achieve exponential growth!

Marketing Strategies

4 P’s of Marketing:

Product:
o Selected items
Price:
o Best price offer
o No middlemen involved
o Customer can choose as per their budget.
Place (Distribution Channel):
o Mobile application

Promotional
o Experiential Marketing: Experiential marketing is a form of advertising that
focuses primarily on helping consumers experience a brand.
While traditional advertising (radio, print, television) verbally and visually
communicates the brand and product benefits, experiential marketing tries to
immerse the consumers within the product by engaging as many other human senses
as possible. In this way, experiential marketing can encompass a variety of other
marketing strategies from individual sampling to large-scale guerrilla marketing.
In the end, the goal of experiential marketing is to form a memorable and emotional
connection between the consumer and the brand so that it may generate customer
loyalty and influence purchase decision.

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 o Content Marketing: Content marketing is a strategic marketing approach focused
on creating and distributing valuable, relevant, and consistent content to attract and
retain a clearly-defined audience — and, ultimately, to drive profitable customer
action.
o Blog writing.
o Promoting through video.
o Through social media.

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 Limitations
The major limitation is procrastination by customers. They tend to delay by not downloading the
application immediately, asking us to visit another time, requiring repeated follow-ups, etc. This delays
the whole process of tie-up and leads to greater time investment.

 Another is, it’s very tedious process for a customer to fill the application, and the reason for not
enrolling into the program is not communicated to the company by the decision maker. Difficulty
in getting appointments with the decision makers. Rejections during random walk in are into the
stores.

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 REFERENCES

http://fernfortuniversity.com/term-papers/pestel/nyse4/3142-spar-group--inc-.php
https://www.ibef.org/industry/retail-india.aspx
http://info.shine.com/article/retail-industry-overview/1476.html
https://www.sparindia.com/en/Fruits-%26-
Vegetables/c/10001?utm_source=google&utm_medium=CPC&gclid=Cj0KCQjwwODlBRDuARIsAMy
_28WwQjICD7FdNFRr6bAbcljMSCQ4XR4GoasvW-8jPSothYFoYnG0RK8aAubNEALw_wcB

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