A PROJECT REPORT ON THE STUDY OF BTL ACTIVITIES AT VARIOUS HYPER AND RECOMMEND BEST BTL MIX FOR SPENCERS

HYPER.

SUBMITTED TO UNIVERSITY OF PUNE PARTIAL FULFILLMENT OF REWARD FOR THE DEGREE OF MASTERS IN MARKETING MANAGEMENT

SUBMITTED BY: ROHIT P. MAHESHWARI

INDIRA INSTITUTE OF MANAGEMENT, PUNE (2010-2012)

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CERTIFICATE FROM GUIDE

Collage certificate

ACKNOWLEDGEMENT

Interdependence is a higher value than independence

Some Says Managers are born and some says managers are made. I was also in some dilemma before commencing my Summer Internship Project. But after the successful completion of my summer internship project, I came to know that managers are made if they are guided properly and are motivated to work willingly towards fulfillment of specific goal. It is with a sage sense of gratitude, I acknowledge the efforts of whole hosts of well wishers who have in some way or other contributed in their own special ways to the success and completion of this summer internship project. First of all, I express my sage sense of gratitude and indebtedness to my mentor, MR. RAJESH SETHURAMAN of Spencers Retail Kolkata, from the bottom of my heart, for his unprecedented support and faith that I do the best and his valuable recommendation and for accepting this project. I sincerely express my thanks to our director Dr. Pandit Mali for their valuable guidance and intellectual suggestions during this project. I sincerely express my thanks to my internal project guide Prof. Ajay Varade for their valuable guidance and intellectual suggestions during this project. Also, I also express my sincere thankfulness to Pankaj Mishra sir(research head, Spencers), Abishek sir(Marketing head, lucknow), Saurabh sir(Marketing head,

pune), Swaruph sir (Marketing head, pune), & Shovik sir, for their kind advice, suggestions and constant help in a lot of various ways during project course. Further I express my sage sense of gratitude to Mr. Deepesh Grover, Talent Acquisition Manager of Spencers Retail Ltd (A RPG Group enterprise), who were kind enough to give an opportunity to work under their immense expertise. I express my thanks to the Spencers Supporting Team, for their support and encouragement in bringing out this project report. I would be failing in my duty if I dont express my profound gratitude to the entire Respondents who has spent their valuable time to answer the questionnaire. Rohit P. Maheshwari

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EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
TITLE: The Study of BTL activities at various hyper and recommend best BTL mix for Spencers hyper. OBJECTIVES To study BTL activity done at various hyper stores .To study effectiveness of IN-STORE communication of hyper store. To study effectiveness of OUT-STORE communication of hyper store. To know consumer loyalty towards hyper store. To study buying pattern of consumer. : Descriptive

Type of research

Data collection techniques: Primary data : Secondary Data: Sample Plan: Direct interview of the costumer, Internet & Books.

Universe:

Consumers of Spencers Retail & competitors in and around four cities viz. KOLKATA, LACKNOW, PUNE AND BANGALORE. Customers 460 Respondents not probability, quota sampling Tables, charts & graphs

Sample unit: Sample Size: Sampling methods: Data analysis techniques: Key findings:

In all aspects of the of the marketing communication big bazaar is far ahed. In in- store communication most liked marketing communication POPs. In out store communication most liked marketing communication is mobile van. Most of the customers are not loyal to any one of the store. Researcher has founded that most of the customers prefer to buy weekly from retail store. In both type of marketing communication (BTL & ATL) big bazaar is spending more money. In Kolkata city Spencers is in very good position. Key suggestions: To improve mind share of shoppers Spencers need to do both ATL & BTL marketing communication activity. In pune region Spencers need to open more stores. By giving more advertisement in TV Spencers can attract more costumers towards it. As pre the researchers observation and analysis it has found that most of the costumers are happy with offers & discounts provided by spencers if we can give more discount and good offers then we can go ahed in the market. Conclusion: Out store communication is most effective than in store communication Consumer expect comparatively cheap price from organized retail store Retailer focus on marketing communication activity than cheap price

Limitations: The sample size chosen is limited to 460 only because of time and financial constraint. This study was based purely in four different cities in India. Data collected may not be a representation of the entire population. The time duration for this project was only for a period of 60 days. Researcher also took the view of respondents who dont shop from Supermarkets. This study was limited to the capabilities and willingness of the respondents in appropriately answering the questions and information given by respondents may be correct and may not be correct

CONTENTS

Sr.No Chapter No. 1 1 2 2

Title
INTRODUCTION AND PREAMBLE OF THE STUDY

4 5

4 5

7 8 9 10 11 12 13

7 8 9 10 11 12 13

Industry Profile 2.1 Retail Industry . 2.2 Indian scenario . 2.3 Growth Trends 2.4 Govt. support and policies 2.5 Major players in India Company Profile 3.1 Spencers Group 3.2 Heritage Literature Review And Survey 4.1 Literature Review Objectives And Scope 5.1 Objectives 5.2 Scope of the Study Research Methodology 6.1 Research Design 6.2 Sample Design 6.3 Data collection 6.4 Data 6.5 Limitation Data Analysis & Data Interpretation Observations And Findings Conclusion Suggestions References Annexure Glossary

Page No. 12-13 16-31

34-43

45-51 53

55-57

59-71 73 75 77 79 81-86 88

List of Graphs
Graph No 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 Loyalty card owner ship Vehicle ownership/user ship Shopping frequency Lacknow hyper Shopping frequency Pune hyper Shopping frequency Bangalore hyper Shopping frequency Kolkata hyper Communication awareness Communication liked most Communication likes most Spencers Discount schemes Rice, Dal , Sugar , Oil (All India) Discount schemes Biscuits, chips, jam, noodles, chocolates (All India) Discount schemes personal care.(All India) Discount schemes house hold items(All India)

Title

Page No 59 60 61 62 63 64 65 66 67 68 69 70 71

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LEAST OF TABLES
Table No 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 Loyalty card owner ship Vehicle ownership/user ship Shopping frequency Lacknow hyper Shopping frequency Pune hyper Shopping frequency Bangalore hyper Shopping frequency Kolkata hyper Communication awareness Communication liked most Communication likes most Spencers Discount schemes Rice, Dal , Sugar , Oil (All India) Discount schemes Biscuits, chips, jam, noodles, chocolates (All India) Discount schemes personal care.(All India) Discount schemes house hold items(All India)

Title

Page No 59 60 61 62 63 64 65 66 67 68 69 70 71

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CHAPTER 1
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INTRODUCTION AND PREAMBLE OF THE STUDY

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INTRODUCTION AND PREAMBLE OF THE STUDY

PROMOTION
Basically promotion is an attempt to influence. More specifically, PROMOTION is the element in an organizations marketing mix that serves to inform, persuade and remind the market of a product and/or the organization selling it, in hopes of influencing the recipients feelings, beliefs, or behavior. Out of 4 Ps of marketing i.e. product, price, place, and promotion, the most important role is of 4th P i.e. promotion. Sales promotion is an important component of a company's marketing communication strategy along with advertising, public relations, and personal selling. At its core, sales promotion is a marketing activity that adds to the basic value proposition behind a product (i.e., getting more for less) for a limited time in order to stimulate consumer purchasing, selling effectiveness, or the effort of the sales force. As this definition indicates, sales promotion may be directed either at end consumers or at selling intermediaries such as retailers or sales crews. Sales promotion stems from the premise that any brand or service has an established perceived price or value, the "regular" price or some other reference value. Sales promotion is believed to change this accepted price-value relationship by increasing the value and/or lowering the price. Familiar examples of consumer sales promotion tools include contests and sweepstakes, branded give-away merchandise, bonus-size packaging, limited-time discounts, rebates, coupons, free trials, demonstrations, and pointaccumulation systems. Three issues clarify sales promotion. First, sales promotion ranks in importance with advertising and requires similar care in planning and strategy development. Second, three

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audiences can be targeted by sales promotion: consumers, resellers, and the sales force. And third, sales promotion as a competitive weapon provides an extra incentive for the target audience to purchase or support one brand over another. This last factor distinguishes sales promotion from other promotional mix tactics. For example, unplanned purchases may be directly related to one or more sales promotion offers. In order to understand the basic role and function of sales promotion, one must differentiate between sales promotion and other components of the marketing mix. Sales promotion usually operates on a short timeline, uses a more rational appeal, returns a tangible or real value, fosters an immediate sale, and contributes highly to profitability. The idea of contribution to profitability may be confusing. It is simply the ratio between what is spent on a promotional mix compared to the direct profitability generated by that expenditure. A few exceptions to the above characteristics do exist. For example, a sweepstakes might use a very emotional appeal, while a business-to-business ad may be very rational.

Role of Promotion in Marketing

1 Promotions help marketers to communicate information to potential customers. This information could be about the products Existence (Awareness), value and benefits offered by products A well designed promotion mix is extremely crucial for brand building and positioning. In fact communication or promotional mix is at the centre stage in brand positioning and Brand building activities. The promotional mix or marketing communication helps marketers to attract, persuade, urge and remind customers of the companys brand. Effective promotions prove helpful in product differentiation and also help to counter competition. Researcher Want to express my gratitude for the experience and practical knowledge that I gained during the summer internship project at Spencers Retail Ltd (An enterprise of RPGs group).It was my first experience when I went to the market not to buy anything but to do the survey and to study of BTL activities done at various hyper at different Spencers out lets and catchments as well like (Kolkata, Lucknow, Pune and Bangalore), Kolkata with reference to Spencers Retail Ltd. The basic need of this survey is to interact

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with customers. On first day I was nervous, but because of the good image of the Spencers in the market the people reacted positively. For accomplishment of the project report I think about the conditions and views and then I used to compose the whole thing on computer. In making the project report theoretical knowledge was needed more than the practical which was given to us by my professors in my institutes. In the market the experience relating to the practical knowledge was very good which realized me about the real conditions of the marketing. The project flows logically consisting of market research, data collection method and questionnaire. It hoped that the findings and the suggestions will help the company, confidently to formulate its strategy in comparison to its competitors. I have enjoyed my summer internship at Spencers and have learnt lots of new things, which will be helpful to me during my work in any organization. I thank Spencers for giving this opportunity at their office and being good to me all the time.

CHAPTER 2
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INDUSTRY PROFILE

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2 Industry profile
2.1 Evolution of Indian retail Industry: Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take place. The inception of the retail industry dates back to times where retail stores were found in the village fairs, Melas or in the weekly markets. These stores were highly unorganized. The maturity of the retail sector took place with the establishment of retail stores in the locality for convenience. With the government intervention the retail industry in India took a new shape. Outlets for Public Distribution System, Cooperative stores and Khadi stores were set up. These retail Stores demanded low investments for its establishment.

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2.2 Retail: Brief Overview The Indian retail sector is highly fragmented with more than 90 per cent of its business being carried out by traditional family run small stores. This provides immense opportunity for large scale retailers to set-up their operations a slew of organized retail formats like departmental stores, hypermarkets, supermarkets and specialty stores are swiftly replacing the traditional formats dramatically altering the retailing landscape in India. India is the third-most attractive retail market for global retailers among the 30 largest emerging markets, according to US consulting group AT Kearneys report published in June 2010. 2.3 Retail Market Size The total retail sales in India will grow from US$ 395.96 billion in 2011 to US$ 785.12 billion by 2015, according to the BMI India Retail report for the third quarter of 2011. Robust economic growth, high disposable income with the end-consumer and the rapid construction of organized retail infrastructure are key factors behind the forecast growth. Along with the expansion in middle and upper class consumer base, the report identifies potential in Indias tier-II and tier-III cities as well. The greater availability of personal credit and a growing vehicle population providing improved mobility also contribute to a trend towards annual retail sales growth of 12.2 per cent. Indian retail sector accounts for 22 per cent of the country's gross domestic product (GDP) and contributes to 8 per cent of the total employment. Size of Indian Retail Industry and Present Scenario The size of retail industry in an economy depends on many factors and the level of consumer spending is the most important among these factors. The retail sector in India has grown by leaps and bounds in the last five years. The reason behind this growth has been the synergy of many propellants. However the growth is not always genuine as there are exaggerations as well. But these exaggerations also have benefits since they given a

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feel of growing competition all around. Secondly the present situation is just a depiction of nascent stage. The future of the trajectory may not be as steep as it is now or may be even slope downward. 'What will be the future size of the retail industry' is the mind boggling question. Another moot point that will gain importance in due time concerns the future of the unorganized retail market which constitute a significant proportion of the whole industry. The retail stores have proved to be a vantage point for the customers. This implies that the small farmers who used to sell their product in the sabji-mandis and on roadsides are going to lose a significant market share as they can't employ the two profit maximizers-economies of scale and economies of scope. Retailing in India: the present scenario The present value of the Indian retail market is estimated by the India Retail Report to be around Rs. 12, 00,000 crores ($270 billion) and the annual growth rate is 5.7 percent. Retail market for food and grocery with a worth of Rs. 7, 43,900 crore is the largest of the different types of retail industries present in India. Furthermore around 15 million retail outlets help India win the crown of having the highest retail outlet density in the world. The contribution of retail sector to GDP has been manifested below: Growth trends Rural Retailing on a High Rural retailing enjoys an intense focus from big brands. Future Group and Godrej Agrovet's joint venture (JV) in rural retailing, 'Aadhar', is all set for a revamp. The group promoter Kishore Biyani has revealed that the JV is planning to come up with wholesale distribution centers across different districts and franchisees would be rolled out to local entrepreneurs who would have a better understanding of the concerned area. They would be able to source the products from these wholesale centers and then sell it in their villages. The alliance operates stores in Gujarat, Maharashtra, Haryana and Punjab and mainly sells wheat and paddy apart from daily need products. The company also provides farmers with solutions to problems regarding their agricultural

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output, which includes what kind of crop can they plant and when, along with technocommercial suggestions to help them give a better output. Meanwhile, Rajkot based Champion Agro Ltd is planning to come up with single window shopping facility for farmers. The company already has 35 agri-retailing outlets in the Saurashtra region, and is expected to open around 400 outlets at a taluka level across Gujarat by 2016. It will open 50 new outlets by the end of 2011with an investment of US$ 3.3 million. The overall investment planned is between US$ 66.7 US$ 88.94 million. On similar lines, Vadodara based ACIL Cotton Industries is all set to come up with around 40 outlets of 'ACIL Krishi Store' in Gujarat. Of these, four outlets got operational in April - May 2011. As for 2011, ACIL has decided to focus on the Gujarat market. ACIL stores will sell all types of seeds, fungicides, fertilizers, micronutrients. Also, FMCG and retail giants are making good use of technology to reach out to rural India. From low-cost handsets to tablet PCs, the Indian FMCG and retail sector is latching on to technology and applications to reach out to rural India. For instance, Marico is using mobile technology innovatively to arm its field representatives in their procurement process. The IT team at Marico developed a mobilebased application for Nokia 5235 series handsets. The company gave these GPS-enabled phones to 120 of its field representatives, with mapped routes. This helped the agrirepresentative to get the exact route and also saved on time. The mobile application can also get real-time data from farmers. Pictures of crop and soil taken from the camera are used for monitoring progress of contract farming, seed information and weather condition. Since the data is available online, this also helps the company analyze and take decisions quickly. Meanwhile Hindustan Unilever Ltd (HUL) is experimenting with tablet PCs in its attempt to increase its rural reach. It has been able to reach to 500,000 outlets in a years time. According to Nitin Paranjape, managing director, HUL, We put all the villages on an IT map. The name of the village, its total strength, nearest distributors available, whether it has a school, a hospital, a primary health centre, all of this was mapped. We used this information to determine the opportunity the village presented to us.

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2.4 Retail Industry, Retail Sector, Retail Trade The retail industry is responsible for the distribution of finished products to the public. The retail sector comprises of general retailers (managed by individuals/families), departmental stores, specialty stores and discount stores. The activities of the retail industry can be broadly classified into: Personal goods store retailing Hard goods: This covers deals in goods such as electronics, electrical appliances, furniture and sporting goods. Soft goods: This includes apparel retailing. 2.5 Growth of the Retail Sector in India In this section we may deal with the growth of the organized as well as the unorganized retail sector of India. Due to the untapped potential that exists in the Indian retailing market, it is a very fast growing sector. One reason that can be attributed to this rapid entry of the foreign retail giants ,is that the Western Countries have reached a point of saturation in their retail sector. Another reason as already mentioned earlier is the change in the tastes and preferences or the psychographic of the consumers that is bent in their favour. Although the retail sector in India contributes to about 10% in the GDP, it is the most underdeveloped sector in terms of investments that are made in this sector. The unorganized retail sector has recorded a growth of 5% per annum while the organized sector is growing at 25-30 % per annum. One should not be impressed by the figures of the organized retail markets since developed market in US, Taiwan, Malaysia is still a dream to the Indian retail market. They have registered a growth of 50% per annum. The retail stores have mushroomed in the Tier II and Tier III cities. The participants in the retail market hold the presence of market in the cities as a signal to their growth. It has been seen that the retail companies have invested in the IT sector for their growth and development. The IT sector has contributed greatly to the growth of the retail sector in India. The retail firms have made lumpy investments in Enterprise Resource Planning

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System as a strategy for their growth and development. SAP has also assumed a significant role in the growth and development of the organized retail industry. The sudden growth of the organized retail sector can be attributed to the ushering of the domestic retail giants like Reliance, Pantaloons, ITC, RPG, Rahejas and the Bharti Group. The foreign companies continue to wait in the sidelines. These prominent retail chains have adversely affected the farmers in some states. Another viewpoint is that the farmers have rather benefited since they were eager on the market intervention of the buig retailers for the purpose of marketing and processing of their output. Since the big retailers reap the benefits of buying directly from the farmers , the consumers can purchase the products at minimal price rates. In places like Uttarakhand, the big retail chains are welcomed for the same purpose by the farmers. They have helped in putting finances in the right channels of processing and packaging. Non-store retailing This includes infomercials, catalogue sales, vending machines and ecommerce. Food retailing (restaurants) Automotive services and retailing Retail Industry: History The retail industry emerged in the US in the eighteenth century, restricted to general stores. Specialty stores were developed only in those areas that had a population of above 5,000. Supermarkets flourished in the US and Canada with the growth of suburbs after World War II. The modern retail industry is booming across the world. Revenues from retail sales in the US alone stood at $4.48 trillion in 2007, according to a report by the US Census Bureau. Retail Industry: Demand and Supply Drivers

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The major demand drivers of the retail industry are:

Interest rates Population Employment Personal disposable income Individual debt The supply drivers include: Competitors in the industry Size of the market Cost of the factors of production

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2.6 Retail Industry: Major Players

Of the worlds top ten retail companies in terms of total sales, six are American. Combined sales of the top ten companies, computed by Delloite, were $978.5 billion in 2007. Major retail giants include Wal-Mart, Target, Home Depot and Tesco. BIG BAZAAR:

Future Group, is one of India's leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.

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Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections.

A typical Big Bazaar is spread across around 50,000 square feet of retail space. While the larger metropolises have Big Bazaar Family centers measuring between 75,000 square feet and 1,60,000 square feet, Big Bazaar Express stores in smaller towns measure around 30,000 square feet. Most of the Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers as well as within shopping malls. These stores offer over 200,000 SKUs in a wide range of categories led primarily by fashion and food products. RELIANCE RETAIL LTD. (RRL) :

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RRL operates several value & specialty formats. The value formats that RRL operates are: Reliance Fresh, a neighborhood concept, is the convenience store format which forms part of the retail business of Reliance Industries of India . These stores sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products. A typical Reliance Fresh store is approximately 3000-4000 square feet. Reliance Mart, an all under one roof supermarket concept & Reliance Super, a minimart concept. The value formats offer a wide range and assortment of products required for daily household needs The specialty formats are: Reliance Digital, a consumer durables & information technology concept,Reliance Trends, an apparel & accessories concept, Reliance Wellness, a health, wellness & beauty concept, iStore by Reliance Digital, an exclusive Apple products concept, Reliance Footprint, a footwear concept, Reliance Jewels, a jewellery concept, Reliance TimeOut, a books, music & entertainment concept,Reliance

AutoZone, an automotive products & services concept and Reliance Living, a homeware, furniture, modular kitchens, furnishings concept. ADITYA BIRLA RETAIL LTD. (more):

Aditya Birla Retail Limited is the retail arm of Aditya Birla Group. The Company ventured into food and grocery retail sector in 2007 with the acquisition of a south based

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supermarket chain. Subsequently Aditya Birla Retail Ltd. expanded its presence across the country under the brand "more." with 2 formats Supermarket & Hypermarket. Supermarket more. for you - Conveniently located in neighbourhoods, more. supermarkets cater to the daily, weekly and monthly shopping needs of consumers. The product offerings include a wide range of fresh fruits & vegetables, groceries, personal care, home care, general merchandise & a basic range of apparels. Currently, there are over 600 more. supermarkets across the country. Hypermarket more.MEGASTORE - is a one-stop shopping destination for the entire family. Besides a large range of products across fruits & vegetables, groceries, FMCG products, more.MEGASTORE also has a strong emphasis on general merchandise, apparels & CDIT. Currently, nine hypermarkets operate under the brand more.MEGASTORE in Mysore, Vadodara, Aurangabad, Indore, Bengaluru, Mumbai, New Delhi, Hyderabad and Vashi.

Comparison

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S No.

Parameter

Spencers

Big Bazaar Clean presentation along with a tagline of the offer. For e.g. monthly bachat bazaar. Advertising has played a crucial role in building of the brand. Big Bazaar advertisements are seen in print media, TV, Radio (FM) and road-side billboards. Product visuals, MRP, offer price, store address detail, smart card (loyalty card), seasons greetings as per the region. Facebook

Reliance Retail

Presentation in the Newspaper Ad.

Neat presentation, with color theme.

Presentation as per the theme of the store for e.g reliance fresh focuses on yellow color theme whereas reliance digital focus on red color. Product visuals, MRP, offer price, store address detail, smart card (loyalty card), Double points on paying by master/ maestro credit card. NA

Details

Product visuals, Market price, offer price, store address detail, smart card(loyalty card) NA

Digital Marketing

2.7 Retail Industry: Statistics The total sales from store retailers stood at 108,449.8 million in 2007 and the sales value of non-store retailers was 469.9 million. The percent composition of store and non-store retailers in 2007 was:

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Store Retailers Non-Store Retailers Supermarkets 32.83 Vending 26.60 Small grocery retailers 24.46 Internet retailing 25.93 Hypermarkets 19.09 Home shopping 24.04 Food/beverage/tobacco specialists 15.68 Direct selling 23.43 Discounters 7.57 0.36 Total 100 Total 100 Source: World Retail Data and Statistics 2008/2009 The retail sector is vital to the world economy, as it provides large scale employment to skilled and unskilled labor, minors and casual and part-time workers. Employment in the retail sector in the US and Europe surpassed 32 million in 2007. Contribution of Indian Retail Industry to Indian Economy Contribution of Retail: What, How and for whom the presence of retail sector in India has been in limelight for the last few years. Its significance has been undoubted. Policymakers are quite optimistic that the evolution and steady maturation of organized retailing will take the economy to new highs. Besides, it will also help strengthen the linkages between the different sectors so as to break the vicious circle of poverty and ensure a bright future for the next generation. The benefit of retailing to general public includes growing awareness and brand consciousness. Indian Retail: Past Vs Present It is widely accepted that the retail industry has undergone a drastic change in last five years and there is yet more to come. Contribution of FDI in Retailing Permitting Foreign Direct Investment in the retailing sector can have immense benefits. It can generate huge employment for the semi-skilled as well as illiterate population which otherwise can't be employed in the already confined rural and organized sector. The retail sector is highly dependent on the rural sector. Thus it can facilitate the improvement of the Others

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standard of living of farmers by purchasing commodities at a reasonable cost. It also stems out an indirect employment generation channel by training and employing people in the transportation and distribution sectors such as drivers, mechanics etc. It is also evident that real estate is a genuine challenge for organized retailing. Traditional retailers can use this situation in their favor by taking franchisees of the mega players of this industry. On the other hand, the consumer gains from the wide variety of choices and a more diversified basket of prices available under one roof. Secondly the indirect benefits like better roads, online marketing, expansion of telecom sector etc. will give a 'big push' to other sectors including the rural one itself. Last but not the least the huge tax revenue generated from these retail biggies and collected in government coffers will gradually wipe out the ugly looking fiscal and revenue deficits. Besides the transaction in foreign currencies by these MNCs will create a balance in exchange rate and will bring in stable funds in the economy as opposed to FII's hot money. This will in turn act as a boost to the developing (or 'transforming', as suggested by the USAID) economy of India. The phobias relating to FDI in the retail sector are unfounded as neither the retailing sector in India is an infant industry, nor it can outweigh the paramount local tastes and preferences. Let's pray that the retail sector like the IT and manufacturing sector brings happiness in the eyes of the people and help remove the regional and class-based disparities.

Different Segments in the Indian Retail Industry The retailing sector of India can be split into two segments. They are the informal and the formal retailing sector. The informal retailing sector is comprised of small retailers. For this sector, it is very difficult to implement the tax laws. There is widespread tax evasion. It is also cumbersome to regulate the labour laws in this sector. As far as the formal retailing sector is concerned, it is comprised of large retailers. Stringent tax and labour laws are implemented in this sector. If the retail industry is divided on the basis of retail formats then it can be split into the modern format retailers and the traditional format retailers. The modern format retailers

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comprise of the supermarkets, Hypermarkets, Departmental Stores, Specialty Chains and company owned and operated retail stores. The traditional format retailers comprise of Kiranas, Kiosks, Street Markets and the multiple brand outlets. The retail industry can also be subdivided into the organized and the unorganized sector. The organized retail sector occupies about 3% of the aggregate retail industry in India. Size and contribution of the retail industry in India In terms of value, the Indian Retail industry is worth $300 billion. Its contribution to the Gross Domestic Product is about 10% , the highest compared to all other Indian Industries. The retail sector has also contributed to 8% of the employment of the country. The organized retail sector is expected to triple its size by 2010. The food and grocery retail sector is expected to multiply five times in the same time frame. The major reason behind the low participation in the Indian retail sector is the need for lumpy investments that cannot match up their break even points. The government policies are being revised from time to time to attract investments in this sector. The Indian Retail IndustrySky is the limit In terms of the retail development index India ranks fifth. In Asia it occupies the second position , next to China. Among all the global markets, the Indian retail market is the most expanding. This is owing to absence in restriction at the entry level. So the large foreign companies can reap the benefits of economies scale by entering the green retail fields of India. There are many reasons why the retail industry in India can reach the zenith. Firstly the organized retail sector in India has a very low contribution to the entire retail sector in the country. Hence there is ample scope for the new players to achieve success in the backdrop of soaring disposable income of the upcoming generation. Secondly, not only have the incomes increased but there has been a sea change in the preferences of the consumers . These factors have acted as a stimulus for the ushering of foreign players retailing in apparels, accessories, electronic appliances etc. Large shopping malls have already mushroomed in the metropolitan cities. There still lies untapped potential in the Indian Retail Market.

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2.8 Government policies and regulations for the retail industry in India. India's government seems to be on a gradual but definite path toward allowing foreign retailers into the country.... suggests the A.T. Kearney's Retail Development Index 2006. It is a common knowledge that the Union government has to face a number of hurdles both from its opponents as well as it's allies before it could announce the final verdict. There have been demands from all corners regarding framing of rules to safeguard interests of the so-called small traders. Simultaneously economists have the consensus that industrialization is imperative for the growth of the economy and foreign investment has to play an inevitable role in it. With Lok Sabha elections to come in 2009, the Union government too seems a bit confused regarding decision in who's favor can provide it a political edge. So in this study let us compare the views for and against liberalization as is held by Indian Bureaucrats. Entry of large players: stiff opposition from Left Parties The recent outburst of fury among the Kerala's LDF (Left Democratic Front) Government has been noticeable. They have exacted for a three-pronged approach to prevent the retail giants from serving the Keralians. At the first stage, not only MNCs but also the local retail giants like Reliance will be shown the red signal. In fact a magnified CPI protest has compelled a Reliance Fresh outlet in Kochi to take police protection. The draft of a bill has been finalized to amend the Kerala Essential Commodities Act so that the state government can intervene in the retail market. As a second step, local councils (70% of which is controlled by the Left) will deny licenses, that are mandatory to start a retail chain in the state. Kochi and Tiruvananthapuram corporations will be in fact commanded to reconsider the licenses of outlets that are already operating in the regions. This strategy grants more power to the state. However a ban on shopping in these outlets is still not clear. The third and the most revolutionary judgment is actually an outcome of the whole game. Government-controlled supermarkets and hypermarkets will be established in some of the key cities in the state. This rigid legal wall not only in Kerala but across the country has been born out of a traditional mindset. Kerala claims to have a literacy rate of 90.92% and a sex ratio of 1058

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females per 1000 males. The data speaks for the government's prudent commitment in the case of Kerala. So it is high time that the government opens up avenues for its people to let them grow and become self dependent. But the government is still holding good, the conventional 'infant industry' outlook. The main worry is the negative impact on the already gloomy condition of employment. Let's make an attempt to understand the vicious circle of unorganized retailing and present employment scenario. Unorganized retailing has a share of about 96% in the Indian retail sector. But why should people work in such miserable situations if the manufacturing and services sector are booming is the overwhelming question. There has been a trend to migrate to cities in search of alluring bright city lights. But the consequences has been even worse- earning lower than expected wages(Harris Todaro model of migration). The illiterate and unskilled people ultimately set up a grocery shop to earn a living. This gives birth to another unorganized retail shop in India and thus enlarges its share. So the unorganized retail market in India has born out of fate rather than selection. The Actual Scene Those opposing the expansion of organized retail in India must understand that the share of primary sector shrinks and that of the secondary and then the tertiary sector expands as an economy grows. This is the basic structural adjustment in case of any transforming economy. India is at a take off stage. A retardation in the agricultural sector is not permissible but inhibiting the growth of services on grounds of protection to agriculture is more irrational. A proof of this has been seen in a small town of North Bengal. The opening of a Big Bazaar (brand name for stores under Pantaloon) departmental store has seen a human deluge of about 7,000 people in the 35,000 sq.ft. shopping mall by 3pm. This clearly indicates that people (even in remote places) have become fed up of monotonous marketing practices and demand nowadays is purely governed by choice. The Ruling UPA government's outlook The UPA government is rather clear in its aim of taking India to new highs. The commerce minister has repeatedly asserted that FDI will kill two birds with the same stone. It will generate substantial direct as well as indirect employment and at the same

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time will not tamper with the present scope of the unorganized retail market. The indirect employment includes jobs in transport, packaging and other logistic services. It will enhance competition in the country thus giving a virtual chance to face global challenges while operating at home. Mr. Nath is clearly focused on the utilization of FDI in acquiring benefits. It is true that such investments will bring in huge imports but this may also help in the Indian products reaching the foreign consumers. Foreign majors such as Wal-Mart, Tesco and Carrefour are ready to enter India. The UPA government has already permitted 51 percent FDI in Single-brand products without consulting its allies and it is expected that slowly but steadily the government will achieve its goal.

SALE OF GOODS ACT, 1930

This section of retail law is established under the Sale of Goods Act, 1930- this decree covers subjects such as the sale of goods, selling at the valuation price, description of goods and the rights of a seller who hasn't received the entirety of an agreed payment.

GOVERNMENTS ROLE IN PREVENTING PRIVATE MONOPOLIES

A single large format retailer should not be allowed to capture a large market share. For this it is important to restrict the number of retail outlets that a single private entity can open in a city, state as well as region. Under no circumstances should a national level monopoly be allowed to develop in the retail sector. There should be guidelines to prevent predatory pricing and below-cost sales by organized retailers. A mechanism should be set up where complaints against predatory pricing can be registered by small retailers.
In order to prevent the development of big private monopolies in retail trade, it is also

important for the Government to ensure its presence in the market. Several Government marketing agencies exist, both at the Central as well as State levels. These marketing

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agencies should be revived and encouraged to grow and compete with private large format retailers.
To create a few big public sector retail chains should be seriously considered, which

can also invest in developing modern supply chain infrastructure. Panchayati Raj Institutions (PRIs) should be involved in the administration of cold storages and procurement centers. Encouragement should be provided to the existing retail chains in the cooperative sector. New retail cooperatives should also be promoted. Partnerships between existing Government marketing agencies and cooperatives can also be considered, especially in food retail where synergies exit

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CHAPTER 3
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COMPANY & PRODUCT PROFILE

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3 .COMPANY AND PRODUCT PROFILE

Spencers Retail Limited is a multi-format food-first retailer providing a wide range of quality products to discerning young customers - well-travelled citizens of the world, looking out for authentic flavors and experiences in a fun-filled shopping environment. Our brand positioning Makes Fine Living Affordable embodies this approach, delighting shoppers with the best products and services that enable a fine living at reasonable prices while providing them with a warm, friendly and knowledgeable retail environment. Part of the Rs 15,500 crore RPG Group, we run about 200 stores (including about 30 large format stores) across 35 cities in India, employing more than 7,000 people. As one of the earliest entrants in the retail space in India, we have been instrumental in introducing Indian customers to the concept of organized retailing, becoming the countrys first grocery chain back in 1920, and offering the joys of hypermarket shopping in 2001.

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A food first retailer we offer both fresh and packaged foods as well as groceries. We also have a wide selection of electronics and electrical equipment, home and office essentials, garments and fashion accessories, toys, and personal care.

HERITAGE
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 Food world as a joint venture with Hong-Kong based Dairy Farm International. The joint venture, which operated supermarkets under the name Food world 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 the retailing India. Since inception Spencers has been a customer-centric brand, constantly innovating, pioneering formats, evolving over time but always keeping customer 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 almost 150 years is the trust the Spencers brand evokes. To the customer, it carries the promise of innovation, quality, and service; the confidence

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that they will always be able to find a Spencers at a convenient location; that it will have a pleasant ambience; and that it will offer a wide range of products at affordable prices.

DIFFERENTIATORS

In the Indian milieu, there are only two routes to survival discounting and differentiation. Most retailers choose to play the price game. We, however, preferred to focus instead on establishing ourselves as the preferred shopping destination for discerning young customers looking for a range of quality products that let them participate in a global lifestyle. Our brand positioning Makes Fine Living Affordable embodies this approach, delighting shoppers with the best products and services that enable a fine living at reasonable prices while providing them with a warm, friendly and knowledgeable retail environment. The following characteristics distinguish the Spencers brand and create memorable 360 shopping experiences for customers:

Products we offer the widest range of food and lifestyle (fashion, home, entertainment) brands, with a special expertise in food

Quality we lay a huge emphasis on all-round quality: in products, stores, service standards, and customer engagement programs and that too since our inception at 1863

Heritage we are Indias oldest retailer, with many firsts to our credit

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Multiple Formats from daily to weekly and specialty shopping, we fulfill every need and provide maximum convenience Promotions we seek to offer the right products at the right time at the right price, with promotions carefully designed to suit the buying cycle and shopping basket of the customers

Brand Imagery our stores and staff seek to make our customers feel right at home, being international, contemporary, accessible, empathetic and trusted

INNOVATIONS

Throughout its long history (the first ever Spencers store opened in 1895), Spencers has been a recognized and respected player in the Indian grocery business, synonymous with quality goods and services, trusted by Indias exploding population of the upwardly mobile middle class. Spencers has continually helped reshape the retail landscape in India, introducing a host of innovations to make shopping even more convenient and enjoyable for the customer. These include:

RETAIL DESIGN INITIATIVES

The Retail Design team helps Spencers deliver its brand promise in a way that is sophisticated, but not snobbish. These results in differentiation without alienation of loyal customers or loss of the brand equity acquired over the years. Central to the retail design strategy is a unique brand position - Taste the World, derived from the customers own transition from a price-conscious purchaser to a global-minded, well-travelled citizen of the world, looking out for authentic international flavors and

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experiences. Spencers has consequently evolved from being a preferred grocery retailer to being a passport to a stimulating world. This is evident in: Storefront Design the store entrance resembles that of an entrance arch, leading in the shopper to a world that is welcoming and exciting Interior Design to ensure that shoppers enjoy a warm and friendly ambience, an upscale look and feel, the joy of exploring and the convenience of locating what they want Shop fit Design from chefs tables to signage aids, the emphasis is on attractive, space-efficient, and low-maintenance presentation of modern, international goods alongside local flavors and product experiences Innovative Use of Materials, Finishes, and Lighting - from color-corrected lighting warming up the foods and vegetables area, to carefully selected veneers and textures that complement the attractive, color palette of bright orange, white, and Swiss coffee, our store interiors have a fresh, cheerful, and expansive feel Graphics & Signage - shopping at Spencers is a visual treat, enhanced by bright orange Heritage boards that tell the Spencers story, curved signage featuring the signature Taste the World tagline, and category-specific color arches suspended over zones and departments to provide visual relief and act as navigational aids Originally rolled out at the Spencers hypermarket at South City Mall, Kolkata, the new retail design program is being implemented at all stores

VISUAL MERCHANDISING INITIATIVES

The Visual Merchandising program uses a mix of theatre and edutainment to depict Spencers as a Food First retailer with a Taste the World mindset. This is evident in: Feature Displays - Hotspots and focal points around the store carry thematic product displays to welcome shoppers and give them the opportunity to pause and absorb the ambience that constitutes a Taste the World experience, before continuing their journey of exploration.

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Presentation

of

Merchandise -

Category-specific colour coding (fresh green for food, sophisticated violet for fashion, blue for electronics and multimedia, and red for furniture and home goods) make for easy navigation, while visual metaphors of farm-fresh and Taste the World drive home our brand promise. An Eiffel Tower and Big Ben here, a Chinese pagoda and Thai hut there - frame highly stylized displays at focal points. Fiberglas models of aquatic food, breads, and cheese denote the fish counter and delicatessen.

PRODUCT INITIATIVES
All supermarkets and hypermarkets sell the same things, right? Wrong. While we do stock popular ranges, we go to a great deal of effort to ensure you a unique range of products Gourmet Centre - Run by an expert Food Scientist cum Cordon Bleu Chef, our food innovation wing researches world cuisines and develops recipes for a wide range of popular and trendsetting dishes. These form the basis for developing our own range of products, which include delicious cookies and sauces, pickles and jams. Ingredients for these dishes are also retailed through our stores, for those whod like to prepare the dishes at home. Spencer's Patisserie - The Fresh Baked Daily -Spencers Patisserie is Spencers LIVE Bakery offering simple, specialty and exotic range of freshly made bakery and confectionery items. The recipes are authentic, gathered from the best ones from all across the world, including Indian favorites. The products are an ideal mix of simple, specialty and exotic varieties from all across the world, including Indian favorites. Be it Focaccia-the Italian flat bread, Baguette-the French classic, Spicy Salsa Picante Bread-the Mexican twist, Masala Bread-pure Indian, White Breadthe simple one, Multigrain & Whole Wheat Bread-for the health conscious are

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some of the breads. Hot Puffs, the dry fruit cakes, Exotic cookies, mouth-watering cakes and pastries like Blueberry Cheese Cake, Trio of Chocolate and Black Forest cater to all. Gourmet store - Kolkatas first Gourmet store is spread over an area of 1500 sq. ft. It is has more than 4000 products to choose from and offers the finest ingredients of gourmet cuisine and recipes to guide in the making of lip smacking delicacies from across the world. The store offers a wide range and assortment of gourmet breads, biscuits, 500 different types of beverages, chocolates, 100 variants chilled & frozen food items, 200 variants of 300 types of cheese, cold-cuts, 60 variants in vegetarian and nonvegetarian convenience foods, exotic and organic fresh fruits and vegetables, 300 types of pastas and noodles, oils and vinegars. The products serve as ingredients to cuisines of Thailand, China, Indonesia, America, Chile, Argentina, Italy, France, Spain, Sri Lanka and UK to name a few.

Wine & Spirits - Wine ignoramuses or aficionados we cater to both, with a wide range of wines expertly selected from as many as 181 countries. Spencers was, in fact, the first Indian retailer to offer a selection of Wine & Spirits in its stores, and the first to present an in-store wine and cheese tasting experience to shoppers

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Meat, Chicken, Fish - our counters for fresh non-vegetarian items truly represent the finest fresh cuts a shopper can get. Seafood lovers, be sure to take your pick from the live fish-tanks on display.

Edutainment Booklets Want to serve wine but not sure how? Want a recipe for preparing cheese fondue? Curious to know why organic food is supposed to be better for you? Pick up a booklet and find out. From the story of olive oil to the origins of cocktails, these tell you a little more about the products on offer and how to use them.

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STORE EVENT INITIATIVES

In-store event initiatives ensure that a visit to Spencers is always a memorable experience. Live Kitchen - Live Counters with Master Chefs preparing gourmet delights are always popular at buffets we brought the concept to our stores in the form of the Spencers Chef Corner, a first-of-its-kind in-store experience that involves customers even as it showcases the ingredients displayed in our Specialty Bays. From Salads to Sushi, from Pastas to Stays and from Cheese Fondue to Cool mock tails Spencers Chef Corner gives customers an opportunity to learn more about their favourite world cuisines. Modern Menu Footsore and still not done with your shopping? Stop by at our food court and treat yourself to a shake, swirl or savory.

MILESTONES

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1983- John William Spencer and Charles Durrant open the first ever Spencer store in Chennai 1920- Spencers becomes the first grocery store in India 1980- Spencers becomes the first supermarket chain under Food World in India 1989- RPG Enterprises buys a majority stake in Spencers 1995- Spencers enters into a Technology Assistance Agreement with Dairy Farm International Holdings Ltd., Hong Kong, to set up the Food world chain of supermarkets in India

1996- First Food world store inaugurated in R A Puram, Chennai, by M. S. Subbulakshmi, renowned Karnatic musician 2001- First hypermarket inaugurated in Musheerabad, Hyderabad, by Krishna Yadav, Labor Minister of Andhra Pradesh. o 100th Foodworld store inaugurated in Pondicherry

2006- Joint venture with Dairy Farm International Holdings terminated, o First new store under the Spencers brand name inaugurated in West Mambalam, Chennai

2008- 75,000 sq ft flagship store inaugurated at South City Mall, Kolkata,First standalone store inaugurated at Vadodara, Exclusive tie-up with 3 billion Woolworths plc, UK, for retailing their internationally acclaimed toy brand, Chad Valley, and their Ladybird brand of kids wear; the latter is Woolworths first international tie-up in the childrens apparel segment,

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Tie-up with Au Bon Pain, the Boston-based fast casual dining and bakery caf chain having more than 200 outlets in America, South Korea, Taiwan and Thailand,

Alliance with Beverly Hills Polo Club its first international tie-up in fashion 2009- Launch of the first exclusive brand outlet of Beverley Hills Polo Club in Delhi. Launch of the first hyper store (35000 sq. ft) of Bangalore in Sarjapur Launch of the first caf and bakery outlet under the Au Bon Pain brand in Bangalore 2010- Foray into Punjab with the launch of three Beverley Hills Polo club outlets in Amritsar and Jalandhar, Announcement of a change in brand positioning from Taste-the-World to Makes Fine Living Affordable, Announcement of the exclusive tie-up with Marc Ecko Enterprises of USA for Ecko Ultd and Ecko Red apparel brands. The first store launched in upmarket DLF Promenade Mall in Vasant Kunj, New Delhi,

Announcement of exclusive tie-up with Ladybird brand of kidswear from the house of UK-based Shop direct Group. The first store was launched in MGF Metropolitan, Gurgaon.

FORMATS

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As the pioneer in organized food retailing in India, the modern-day Spencers started operations back in the early 90s, in South India. We run more than 200 stores across 35 cities in India. Currently, we offer customers two retail store formats:

Convenience stores, called Spencers Hypermarkets, called Spencers hyper

Spencer's are neighborhood stores that cater to the daily and weekly top-up shopping needs of customers. Ranging from 1,500 to 15,000 sq. ft. in size, they stock, at minimum, an assortment of fruits and vegetables, food and non-food Fast Moving Customer Goods, staples and frozen foods. The larger of these stores, having a floor area of more than 10,000 sq ft sometimes offer a selected range of baked, chilled and frozen foods; personal and home care products; baby care; basic apparels and electronics and electrical. Spencer's hyper are megastores, which combine a supermarket with a department store. At least 15,000 sq. ft in size, they stock, on average, 70,000 items, giving shoppers fantastic deals across food, fashion, home and entertainment all under one roof. Spencers hyper are destinations for more than just shopping. Country and theme festivals, the Spencers Chef Corner with master chefs showing you how to prepare exotic dishes, Modern Menu our in-store food court, wine or cheese tasting sessions theres always something extra happening at a Spencers hyper.

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OWN BRANDS

Private Brands in Spencers offer a wide range of products from food, personal care, and fashion to home utility items. Spencers Smart Choice, Tasty Wonders, Clean Home and Maroon are some of our brands which host a varied choice that fulfils almost all needs of a modern household. Rice, pulses, whole spices, dry fruits and nuts, sauces, instant noodles, breakfast cereals, honey, breads, beverage, wafers, pickles, jams and cookies- to name a few in our food range. While our personal care range covers face wipes, tissues, baby needs, hand wash etc. Detergents, dish wash, toilet cleaners, floor cleaners support the home needs. Whats more- our pickles are customized to regional flavors as well. Our South Indian range of pickles has a wide assortment catering to regional tastes. Maroon is a brand for premium home care solutions. From cooking to serving- Maroon is your complete kitchen partner. From a range of premium storage and kitchen utensils, to beautifully designed melamine ware and foil wraps, you will also find smart backpacks and convenient travel accessories. Another category where our Private Brand Spencers Natures best offers you freshly packed greens which include some select exotic herbs and aromatic ingredients. In fashion, people have choices, both contemporary and classic. Sporty or stylish, as customers prefer. Office or occasion-specific formals, casuals for lounging or leisure, and accessories like leather items, junk jewellery and footwear to complete the look. Trendy designs in comfortable fits and cheerful colours, to express personal style. Some of our popular labels are Island Monks and Mark Nicolas (both for men and women), Asankhya (womens ethnic wear), Scorez (sportswear), La Bonita (footwear). Your quest for fashion ends right here.

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All the private brand products are conveniently priced and come with a promise of great quality. All these brands and products are available in all stores.

FMCG food and non-food FMCG food only currently in breakfast cereals, snacks and savories

Home Essentials Home cleaning products Ethnic wear for women

Casual wear for both men and women Formal wear and footwear for men

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CHAPTER 4
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LITERATURE REVIEW

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4 .LITERATURE REVIEW
Marketing is the process of developing and communicating value to your prospects and customers. Most small to medium-sized businesses struggle with marketing. The marketing function is often treated as a cost center--ad hoc activities that dont provide measurable results that can be tracked to the bottom line. Good marketing is essential for every company. It can make a company with a mediocre product successful, but poor marketing can send a good company out of business.

COMPETITIVE POSITIONING: Competitive positioning is about defining how youll differentiate your offering and create value for your market. Its about carving out a spot in the competitive landscape and focusing your company to deliver on that strategy. A good strategy includes: Market profile: size, competitors, stage of growth Customer segments: groups of prospects with similar wants & needs Competitive analysis: strengths, weaknesses, opportunities and threats in the landscape Positioning strategy: how youll position your offering to focus on opportunities in the market Value proposition: the type of value youll deliver to the market.

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One of the key elements of positioning strategy is value proposition. There are three essential types of value: operational excellence, product leadership and customer intimacy.

PROFILING OF THE MARKET: Document the size of your market, major competitors and how theyre positioned. Determine whether your market is in the introductory, growth, mature, or declining stage of its life. This lifecycle stage affects your entire marketing strategy. SEGMENTING THE MARKET: Understand the problems that your market faces. Talk with prospects and customers, or conduct research if you have the time, budget and opportunity. Uncover their true wants and needs youll learn a great deal about what you can deliver to solve their problems and beat your competitors. Group your prospects into segments that have similar problems and can use your product in similar ways. By grouping them into segments, you can efficiently market to seach group. EVALUATING COMPETITION: List your competitors. Include any competitors that can solve your customers problems, even if their solutions are much different than yours theyre still your competition. Rate your own company and your direct competitors on operational efficiency (price), product leadership and customer intimacy. DEFINING VALUE PROPOSITION:

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There are three core types of value that a company can deliver: operational efficiency (the lowest price), product leadership (the best product), or customer intimacy (the best solution & service). Determine which one youre best equipped to deliver; your decision is your value proposition.

MARKETING CAMPAIGN: A marketing campaign is a series of touches with your market to communicate a key message. The key word is series since it usually takes multiple touches for your audience to recognize your message and respond. Marketing campaigns can include many different media: Door knocking (leaflets through the door) Poster in notice board Auto announcement Mobile Van Paper insertion Society activation(kiosk inside your society) Cloth banner Hoarding Hoarding Partnership(communication using retailer like Gym/ Hotels/spas/parlors etc )

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 Promotional SMS Direct mail E mail

Advertisement
Branding plays a crucial role for all the products and services. A successful brand is an identifiable product or service, and buyers or users perceive values in it which matches their needs. There are certain advantages of branding. They are: Product dies but a good brand never dies: The first car T-model is no more but the brand 'FORD' is still alive. 'Pears' soap that was launched somewhere in the end of 1800 is still alive although they have changed the product. Even they are looking for line extension but basic brand names are the same.

Sales or market share: A brand generates familiarity and trust, and hence, leads to greater sales. Branded products have an edge over unbranded products. Premium price: Brands generate trust, a brand manager can charge extra price and people pay for that trust.

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Differentiation: Creating a brand is nothing but creating a strong association. This association clearly differentiates the branded product from the rest.

According to brand evolution model developed by Kunde (2000) as the value of brand becomes stronger and more relevant to customers, the brand becomes more involving, and thus, managers need to make their brand values more relevant to increase customer's involvement. This is explained by religion model also. The model distinguishes 5 types of brands:

Product Brand: Products without any form of added value connected to the generic element. Concept Brand: Brands that are driven by emotional values - as opposed to product characteristics. Corporate Concept Brand: Brands that merge with the company and present themselves in a sustained and consistent way. Brand Culture Brand: Brands that are so strong that they - in the eyes of the consumer - have become equated with the function they represent. Brand Religion Brand: The ultimate brand position is that of brands that - in the eyes of the consumer - have become a "must", a faith to which they profess.

ABOVE- AND BELOW-THE-LINE PROMOTION In terms of the general perception of all of the marketing mix elements that a firm may employ, it is perhaps promotion that is the most prominent P in the 4 Ps. In fact to many people promotion is marketing. Promotion is a part of a firms overall effort to communicate with consumers and others about its product or service offering. Both the company and the consumer have needs which they aim to fulfill; Profit making company wishes to improve or maintain profits and market share, and gain a better reputation than its competitors, and the consumer aims to reach his or her personal goals. The total product offering allows each party to move towards these goals, offering a bundle of satisfactions which fulfill needs in an instrumental and a psychological sense. The phrase

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Marketing Communications is generally preferred to the term promotion, this term being reserved for a branch of communications called below-the-line sales promotion. Promotion describes the communications activities of advertising, personal selling, sales promotion and publicity/public relations. Advertising is a non-personal form of mass communication, paid for by an identified sponsor. Personal selling involves a seller attempting to persuade a potential buyer to make a purchase. Sales promotion encompasses short-term activities such as giving coupons, free samples, etc. that encourage quick action by buyers. The company has control over these three variables, but has little control over the fourth variable, publicity/public relations. This is another non-personal communication method that reaches a large number of people, but it is not paid for by the company and is usually in the form of news or editorial comment regarding a companys product or service. Companies can gain some control over the publicity it receives by the release of news items. Put together, these promotional activities make up the promotional or communications mix with varying emphasis on each element according to the type of product or service, characteristics of consumers and company resources. Company size, competitive strengths and weaknesses and style of management all influence the promotional mix. Other communications elements with which promotion must be coordinated are the product itself, price and distribution channels used. Product communication, including brand name, design of packaging and trade-marks are all product cues which convey a message about the total product offering. Price can communicate different things under varying circumstances, for instance conveying prestige appeal for those buyers who perceive that a high price is equal to quality and prestige. The place in which the products are to be found also has notable communications value. Retail stores have personalities that consumers associate with the products they sell. Products receive a halo effect from the outlets in which they can be found and two stores selling similar products can project entirely different product images. For example, a perfume sold

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through an upmarket store will have a much higher quality image than one sold through supermarkets. Effective communication means effective marketing. Buyers perceptions of market offerings are influenced by the amount and type of information they receive as well as their reaction to that information. There must be a good flow of information between seller and buyer to assist decision-making that precedes a purchase. An effective marketing communications system also allows feedback from the consumer to the seller.

Marketing related messages Marketing communications can be defined as the process of:
1.

Presenting an integrated set of stimuli to a market target with the aim of raising a desired set of responses within that market target;

2. Setting up channels to receive, interpret and act on messages from the market to modify present company messages and identify new communications opportunities. As both a sender and a receiver of market-related messages, a company can influence customers to buy its brands in order to make profit. At the same time it can stay in touch with its market so that it can adjust to changing market conditions and take advantage of new communications opportunities.

Some BTL activities photo graphs. POLE KIOSK KIOSK

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HOARDING

MOBILE VAN

,.

BRANDING ON CITY BUSES

MOBILE VAN

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CHAPTER 5
_____________________________________________________________

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OBJECTIVES AND SCOPE OF STUDY

Objective
To study the BTL (Below The Line Activity) of various hyper stores and suggest best BTL mix for Spencer's hyper. To study BTL activity done at various hyper stores. To study effectiveness of IN-STORE communication of hyper store. To study effectiveness of OUT-STORE communication of hyper store. To know consumer loyalty towards hyper store. To study buying pattern of consumer.

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Scope of the Study Which competitor is doing what kind of advertisement and how much benefit he is getting from the same? Which is the best media which knocks on to the consumer mind? Which media and advertisement plan remain attached to the consumer while making the decision to buy? While going through the advertisement what they look for? Product/Offer/Value etc. In the era of digital marketing how successful can it be for Spencers?

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CHAPTER 6
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RESEARCH METHODOLOGY

6. RESEARCH METHODOLOGY 6.1 Definition of research:

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Research is an original addition to the available knowledge, which contributes to its further advancement. It is an attempt to pursue truth through the methods of study, observation, comparison and experiment. In sum, research is the search for knowledge, using objective and systematic methods to find solution to a problem. Research methodology has many dimensions and research methods do constitute a part of research methodology. Why research study has been undertaken, how the research problem has been identified, in what way & why the hypothesis has been formulated, what data has been collected and what particular method has been adopted, why particular method of analyzing the data has been used and the host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. 6.2 Type of research Exploratory, Descriptive, Causal Exploratory Research Study means to gain familiarity with a phenomenon or to achieve new insights into it, whereas Descriptive Research Study means to portray accurately the characteristics of a particular individual, situation, or a group. Causal Research: a study conducted to test a hypothesis of a causal relatationship between variable ( such study is also known as hypothesis testing research study )

In this Project Researcher have used descriptive type of research.

6.3 Sampling Design: A definite plan for obtaining a sample from a given population is called sample design. It is a technique of selecting items for the sample. Sampling design refers to the technique or the procedure the researcher would adopt in selecting the sample. It is nothing but a definite plan for obtaining a sample from given population.

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6.3.1 Universe: Total no of consumers in and around four cities. 6.3.2 Sample unit: A decision has to be taken concerning a sampling unit before selecting a sample. Sapling units are usually of the following type 1 Geographical unit such as state, district, town etc. 2 Construction unit such as house, flat etc 3 Social unit such as family, club, school etc. Unit: Consumers of Spencers Retail & competitors in and around four cities viz. KOLKATA, LACKNOW, PUNE AND BANGALORE. 6.3.3 Sample Size: By size of the sample we mean the number of item that need to be selected from the universe to constitute a sample. The size of the sample should not be excessively big nor to small should it be optimum. Size: 460 6.3.4 Technique of sampling Mainly there are two techniques, random sampling and purposive sampling. 1) Probability or Random sampleRandom means that every element in the total population has an equal chance or probability of being chosen for the sample and that each of these elements is independent of the other. 2) Non probability or purposive sampleMeans those samples which are based on the choice of researcher In this project researcher has used non probability. 6.4 Data collection method: Primary data : Primary data is to be collected by the direct interview of the costumer, Secondary data: secondary data is collected through internet & books.

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6.5 Data analysis technique: Graphs, Charts & Tables.

6.6 limitations of the study

Following are the few limitation of the particulars research study.

The sample size chosen is limited to 200 only because of time and financial constraint. This study was based purely in four different locations in Kolkata.. Data collected may not be a representation of the entire population. The time duration for this project was only for a period of 60 days. I also took the view of respondents who dont shop from Supermarkets. This study was limited to the capabilities and willingness of the respondents in appropriately answering the questions and information given by respondents may be correct and may not be correct

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CHAPTER 7
_____________________________________________________________

DATA ANALYSIS & INTERPRETATION

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Table-7.1 Do you own any of these loyalty cards?

Loyalty card ownership.

Response Big bazaar
esay day Shoppers vishal mega mart Spencers More Reliance

Percentage
47% 1% 10% 3% 29% 4% 7%

Pie Chart -7.1

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Source: Primary Data Inference: 52% Shoppers are having loyalty card of Big bazaar, 32% shoppers are having loyalty card of Spencers, 7% of shoppers are having loyalty card of reliance, 4% of the shoppers are having loyalty card of More,

Table -7.2, Do you own any vehicle? Vehicle ownership/user ship. Response Two wheeler four wheeler Bar Chart -7.2 Percentage 62% 38%

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Source: Primary Data Inference: 62% of the customers are using 2 wheeler and 32% of the shoppers are using 4 wheeler.

Table-7.3, For how many times do you shop from particular store? Shopping Frequency for lucknow hyper. Response Daily
Weekly

Percentage
6% 47%

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Ones in 2 week Ones in month Ones in 2 month Rearly First time to day

5% 9% 6% 0% 0%

Pie chart-7.3

Source: Primary Data Inference: 47% of the Shoppers who answers has give preference in Lacknow is to go in hyper market weekly, 9% says they go in hyper market ones in month & 5% says ones in 2 week .

Table-7.4, For how many times do you shop from particular store? Shopping Frequency for pune hyper.

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Response Daily
Weekly Ones in 2 week Ones in month Ones in 2 month Rearly First time to day

Percentage
30% 22% 10% 20% 10% 3% 5%

Pie chart-7.4

Source: Primary Data Inference: 30% of the Shoppers who answers has give preference in Lacknow is to go in hyper market weekly, 9% says they go in hyper market ones in month & 5% says ones in 2 week

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Table -7.5, For how many times do you shop from particular store? Shopping Frequency for Bangalore hyper. Response Daily
Weekly Ones in 2 week Ones in month Ones in 2 month Rearly First time to day

Percentage
8% 50% 40% 30% 5% 2% 8%

Pie chart-7.5

Source: Primary Data Inference: 35% of the Shoppers who answers has give preference in Bangalore is to go in hyper market weekly, 30% says they go in hyper market dealy, 8% shoppers say they go in hyper market oones in 2 months.

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Table-7.6, For how many times do you shop from particular store? Shopping Frequency for Kolkata hyper. Response Daily
Weekly Ones in 2 week Ones in month Ones in 2 month Rearly First time to day

Percentage
20% 24% 20% 14% 10% 10% 2%

Pie Chart- 6

Source: Primary Data Inference: Details are mentioned in the below from the data collected most of the customers visited the store once in a week (24%) and daily (20%), 20% says they visit store ones in 2 week 10% says they visit rearly & 10% says they visit ones in 2 months.

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Table -7.6,Which companys marketing communication, do you like the most? Communication awareness Response Big bazaar
esay day Shoppers vishal mega mart spencer's More Reliance Star

Percentage
31% 10% 2% 20% 8% 10% 10% 10%

Pie Chart-7.7

Source: Primary Data Inference: It is depicted that 31%of the respondents were aware of the big bazaar communication, 20% wear aware of vishal maga mart and 8% are aware of Spencers.

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Table-7.8, Communication liked most out store.

Communication liked most

Response
Door knocking (leaflets through the door) Poster in notice board Auto announcement Mobile Van Paper insertion Society activation(kiosk inside your society) Cloth banner Hoarding Pole kiosk (Branding on lamp pole) Partnership(communication using retailer like Gym/ Hotels/spas/parlors etc ) Promotional SMS Direct mail E mail

Percentage
4% 4% 7% 17% 15% 5% 12% 22% 10% 1% 1% 1% 1%

Pie Chart -7.8

Source: Primary Data Inference: 22% people says they like poster in notice board,

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17% people says they like mobile van, 15% people says they like paper insertion, 12% people says they like door knocking.

Table-7.9, Media Source Communication liked most Spencers. Response

Door knocking (leaflets through the door) Poster in notice board Auto announcement Mobile Van Paper insertion Society activation(kiosk inside your society) Cloth banner Hoarding Pole kiosk (Branding on lamp pole) Partnership(communication using retailer like Gym/ Hotels/spas/parlors etc ) Promotional SMS Direct mail E mail

Percentage
1% 1% 1% 1% 3% 1% 2% 5% 1% 1% 0% 1% 1%

Pie Chart -7.9

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Source: Primary Data Inference: most of the customers who came to know a that for Spencers communication 5%of respondents saysthat like poster in notice board.the above analysis it is observed that media source for this catchments area are posterin notice board and Newspaper.

Table-7.10, Discouts scmes, rice, dal, suger, oil(All india) Response

Price offs Buy 2 get 1 free % Discount Gift voucher/Coupon Combination of 2/3 products Free Products Price offs Buy 2 get 1 free

Percentage
25% 12% 38% 5% 10% 10% 25% 12%

Pie chart-7.10

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Source: Primary Data Inference: 38% of the customers who has told that they like % discount, 25% of the respondents says that likeprice offs, 12% says they like buy 2 get 1 free.

Table-7.11 Discouts scmes, biscuits, chips, noodles, jam, chocolets.(All india) Response
Price offs Buy 2 get 1 free % Discount Gift voucher/Coupon Combination of 2/3 products Free Products Price offs Buy 2 get 1 free

Percentage
26% 27% 16% 10% 10% 11% 26% 27%

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Pie chart-7.11

Source: Primary Data Inference: 27% of the customers who has told that they like buy 2 get 1 free, 26% of the respondents says that like price offs, 16% says they like %discount, 10% says they like gift vouchers.

Table -7.12, Discouts scmes.personal care(all india) Response

Price offs Buy 2 get 1 free % Discount Gift voucher/Coupon Combination of 2/3 products

Percentage
22% 22% 16% 15% 15%

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Free Products Price offs Buy 2 get 1 free

10% 22% 22%

pie Chart-7.12

Source: Primary Data Inference: 22% of the customers who has told that they like buy 2 get 1 free, 22% of the respondents says that like price offs, 16% says they like %discount, 15% says they like gift vouchers & 15% says they like combinaction of 2/3 producets.

Table-7.13, Discouts scmes, house hold(all india) Response

Price offs Buy 2 get 1 free

Percentage
33% 14%

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% Discount Gift voucher/Coupon Combination of 2/3 products Free Products Price offs Buy 2 get 1 free

15% 15% 10% 13% 33% 14%

Pie Chart-7.13

Source: Primary Data Inference: 33% of the customers who has told that they like price offs, 15% of the respondents says that like % discount, 14% says they buy 2 get 1 free, 13% says they like free producets & 10% says they like combinaction of 2/3 producet.

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CHAPTER 8
_____________________________________________________________

OBSERVATIONS & FINDINGS

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Observations and findings

In all aspects of the marketing communication big bazaar is far ahead. In in- store communication most liked marketing communication is POPs (Point of purchases). In out store communication most liked marketing communication is Mobile van. Most of the customers are not loyal to any one of the store. .Researcher has founded that most of the customers prefer to buy weekly from retail store. In both type of marketing communication (BTL & ATL) big bazaar is spending more money as compared to competitors. In Kolkata city Spencers is in very good position.

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CHAPTER 9
_____________________________________________________________

CONCLUSIONS

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CONCLUSION
Based on the rigorous research study conducted by the researcher, the following conclusions can be drawn forth, The various BTL and ATL activities conducted by retail chain stores are its own way effective in serving the various customers, classes and masses alike.

The BTL (Below The Line) activity conducted by various hyper stores including Spencers are commendable and excellent.

The most effective IN-STORE communication of hyper stores is performed by means of POPs (Point Of Purchases).

The most effective OUT-STORE communication of hyper stores is performed by means of Mobile Vans in various cities.

The consumers are very loyal towards their preferred retail stores and continue purchasing from these retail chain stores.

From the research study, it was concluded that the customers mostly prefers purchasing products on weekly basis.

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CHAPTER 10
_____________________________________________________________

SUGGESTIONS AND RECOMMENDATIONS

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SUGGESTIONS AND RECOMMENDATIONS

1) To improve mind share of shoppers Spencers need to do both ATL & BTL marketing communication activity. 2) In pune region Spencers need to open more stores. 3) By giving more advertisement in TV Spencers can attract more costumers towards it. 4) As pre the researchers observation and analysis it has found that most of the costumers are happy with offers & discounts provided by Spencers if we can give more discount and good offers then we can go ahed in the market. 5)Digital marketing can be done to penetrate the potential market In the Website of Spencers free home delivery options could be included ( As in the case of Big Bazaar)

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6)As per the survey through different ads by different competitors, Spencers could promote by emphasizing on the offers. 7) Customers are very eager to know about offers, discount schemes provided by Supermarkets/Spencers then Spencers should do better marketing for creating awareness about offers and discount schemes.

__________________________________________________________

REFERENCES
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References Books: Marketing Management (13th Edition) - By Philip Kotler, Keller, Koshy and Jha Principles of Marketing (11th Edition) By Philip Kotler and Gary Armstrong Research methodology ( 2nd Edition)- C.R. Kothari

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Web sites: www.google.com www.rpggroup.com www.indiaretailing.com www.spencersretail.com www.ibef.org www.proquest.umi.com

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________________________________________________________

ANNEXURE

ANNEXURE
Questionnaire

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RETAIL

Interview for retail MARKETING COMMUNICATION

BTL ACTIVITY

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Respondent Serial No._______ PROJECT: - Study the MARKETING COMMUNICATION Activity of Various Hyper Stores. Store Name Code

Name of person interviewed: Address locality:

Age: Date: Area: Education:

Sex:

Marital Status:

Time Interview: _______________ EXIT INTERVIEWS OUT OF THE SHOP Namaskar, I am from Indira Institutes of Management (IIM-P), a student of retail management, we conduct surveys on marketing communication by retail outlets from time to time. I would like to speak to you in this regard. Could you spare some time for me? Thank you.
SHOW CARD 1a

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Q1a. Please look at the CARD and tell me, who in your household does most of the shopping for household items? Self Spouse Other family member Servant Q1a 1 2 3 4

CONTINUE

TERMINATE AND KEEP A COUNT OF THOSE

ASK FOR THE PERSON CODED IN Q1a. IF THIS PERSON IS NOT AVAILABLE, ASK IF HE/SHE CAN BE CONTACTED FOR THE INTERVIEW LATER. GET TIME & DATE. ELSE, TERMINATE. ADMINISTER REST OF THE QUESTIONNAIRE TO THE PERSON SELECTED IN Q1a i.e. MAIN SHOPPER

SHOW CARD Q1a Do you own any of these loyalty cards? Yes 1 No 2 IF YES, CIRCLE THE CARDS OWNED. ASK Q1A2 FOR CARDS OWNED Q1a2, which one of these do you like the most. LOYALTY Own CARD BIG BAZAAR 1 RELIENCE 2 FRESH MORE 3 VISHAL 4 MEGA MART SPENCER'S 5 OTHER(please _____________________________________ specify) Like most 1 2 3 4 5 _______________________ ______________

Q1b Do you own any vehicle? Yes 1 No 2

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If yes, then which one of the following 2 wheeler 1 4 wheeler 2

Q1c Do you own Personal Computers /Laptop(s)? Yes 1 No 2

Q1d Do you use mobile(s)? Yes 1 No 2 If yes, please tell me the name of your service provider(s) PLEASE SPECIFY________________________________________________________________ __________________

SHOW CARD Q1e could you please tell me which type of house do you live/stay in nowadays? Individual house 1 Multi storey apartment 2

If multi storey apartment, then how many house are occupied in the complex 10 to 100 1 100 to 200 201 to 300 301 to 400 More than 400 2 3 4 5

Q2 For how many times do you shop from particular store? Retail outlets DAILY WEEKLY ONES ONES ONES IN REARLY FIRST IN 2 IN 2 TIME WEEK MONTH MONTHS TODAY BIG BAZAAR

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RELIANCE FRESH MORE VISHAL MEGA MART SPENCER'S OTHER(please specify)_____________ Q3 Have you seen or heard any marketing / promotion/ advertisement related communication done by any retail company like Big Bazaar, Reliance, More, Spencers etc? Yes 1 No 2 If Yes, Please specify the name of retailer and related communication that you remember ________________________________________________________________________ ________________________________________________________________________ ____________________________________________________ Q4. Which companys marketing communication, do you like the most? Retail outlets BIG BAZAAR 1 RELIENCE FRESH 2 MORE 3 VISHAL MEGA MART 5 SPENCER'S 6 OTHER(please specify) _____________________________________ Please specify the reason why do you like marketing communication of ___________________________________ (SAY NAME OF RETAIL STORE CODED IN ________________________________________________________________________ ________________________________________________________________________ ____________________________________________________ SHOW CARD Q5a. Please have a look at this card and for each of these retailers please tell me which of these marketing communication activities you like INTERVIEWER TO CIRCLE THE MARK WHICH RESPONDENT SHOW PREFRENCE Marketing BIG RELIENCE MORE VISHAL Communication BAZAAR FRESH MEGA

SPENCER'S

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MART Door knocking (leaflets through the door) Poster in notice board Auto announcement Mobile Van Paper insertion Society activation(kiosk inside your society) Cloth banner Hoarding Pole kiosk (Branding on lamp pole) Partnership(communication using retailer like Gym/ Hotels/spas/parlors etc ) Promotional SMS Direct mail E mail Q5b. if communication is coded for more than one retailer, You said you like ________________________of ________________________ which these do you like most______________________________ Q6 Of all the above communications, which one do you like the most, and way (please specify) ________________________________________________________________________ ________________________________________________________________________ ____________________________________________________ Q7 Are you interested get information through. SMS 1 Email 2 Show Card & Pictures of each communication Q8a Please have a look at this card and for each of these retailers please tell me which of these in store marketing communication activities you like INTERVIEWER TO CIRCLE THE MARK WHICH RESPONDENT SHOW PREFRENCE In store BIG RELIENCE MORE VISHAL SPENCER'S communication BAZAAR FRESH MEGA MART

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POPs Posters (A4/A5) Tent card Wobblers Dropdowns Price walls Pillars with offers F & V price Standees OTHER(please specify) Q8b if communication is coded for more than one retailer, You said you like ________________________of ________________________ of these do you like most______________________________ Show card Q9 You might like different kind of offers for different product categories. Please have a look and tell me, for each of these categories, the promotion you like most? PROMOCTION RICE, BISCUITS,CHIPS,JAM,NOODLES PERSONA HOUSE DAL,SUGER,OIL AND CHOCOLATES L CARE HOLD ITEMS Price offs Buy 2 get 1 free % Discount Gift voucher/Coupon Combination of 2/3 products Free Products Q10 Do you want to give any suggestion so that we can serve you in better manner in near future?

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___________________________________________________________

Glossary

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Glossary: BTL: ATL: Below the line. Above the line.

Show Card: Card showing information. Society Activation :Kiosk inside the society.

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