Spencer’s retail ltd.

project report (summer internship project) - Document Transcript

1. A Project Report On The Study at Dr. A.S. Rao Nagar with reference to Spencer’s Retail Ltd on Market
Potential and Customer Preferences. A Project Report Submitted in partial fulfillment for the award of POST
GRADUATE DIPLOMA IN MANAGEMENT Submitted By: Ajay Kumar Gupta (Registration No.: 08/06) ICBM-
SCHOOL OF BUSINESS EXCELLENCE Rajendra Nagar, Hyderabad-500 048 Approved by AICTE (2008-2010)
[ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

2. 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 Principal, Prof. S. Zarar of “ICBM-School
of Business Excellence”, Hyderabad, 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
Marketing lecturer Prof. Jitender Govindani for his valuable guidance and intellectual suggestions during this
project. Also, I also express my sincere thankfulness to my mentor Dr. P Sai Rani, Mr. Khaja Qutubuddin and Mrs.
Annie Kavitha 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. Sudhakar Balivada, Regional Marketing Manager of Spencer’s
Retail Ltd (A RPG Group enterprise) and Mr. Rajneesh Jha, who were kind enough to give an opportunity to work
under their immense expertise. I sincerely thank to both of them for their valuable suggestions, motivation and
encouragement. I express my thanks to the Spencer’s Supporting Team, for their support and encouragement in
bringing out this project report. I would be failing in my duty if I don’t express my profound gratitude to the entire
respondent who has spent their valuable time to answer the questionnaire. [ICBM-SBE] Prepared by Ajay Kumar
Gupta Project Report

3. Last but not the least; I would also like to expand my thanks to all faculty members of ICBM-School of
Business Excellence, Hyderabad, who have helped a lot during the course of my project. Finally, I sincerely express
my thanks to all my friends and the Staff members of ICBM-School of Business Excellence, Hyderabad for their
support. Ajay Kumar Gupta (Registration No.: - 08/06) [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

4. DECLARATION I, Ajay Kumar Gupta student of ICBM-School of Business Excellence, Hyderabad,

hereby declare that this project report entitled “The Study on Market Potential and Customer Preferences with
reference to Spencer’s Retail Ltd at Dr. A.S. Rao Nagar” for Spencer Retail Limited (A RPG Enterprise),
Hyderabad, is a bonafide record of work done by me during the course of summer internship project work of PGDM
program and all contents and facts are prepared and presented by me without any bias. I also declare that it has not
previously formed the basis for the award to me for any degree/diploma associate ship, fellowship or other similar
title, of any Institute/Society. Place: Ajay Kumar Gupta Date: [ICBM-SBE] Prepared by Ajay Kumar Gupta Project
Report
5. PREFACE I want to express my gratitude for the experience and practical knowledge that I gained during
the summer internship project at Spencer’s Retail Ltd (An enterprise of RPG’s 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 Market Potential and Customer
Preferences at Dr. A.S Rao Nagar, Hyderabad with reference to Spencer’s Retail Ltd. The basic need of this survey
is to interact with customers. On first day I was nervous, but because of the good image of the SPENCER’s 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 Spencer’s and have learnt lots of new things,
which [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

6. will be helpful to me during my work in any organization. I thank Spencer’s for giving this opportunity at
their office and being good to me all the time. I am please to work in this esteemed organization. I have tried my
best to make this report a reader friendly & also did my level best to fulfill the objective of the summer training.
Lastly I am giving thanks to ICBM-School of Business Excellence family who gave me their precious time to make
project successful. CERTIFICATE FROM GUIDE This is to certify that the project entitled “The Study on Market
Potential and Customer Preferences with reference to Spencer’s Retail Ltd at Dr. A.S. Rao Nagar” is a bona fide
work of Ajay Kumar Gupta, a student of ICBM-School of Business Excellence bearing Roll No. PGDM/08-10/06,
and was successfully conducted at Spencer’s Retail Ltd. Hyderabad, from 1stMay to 15th June ’09, for the partial
fulfillment for the award of Post Graduate Diploma in Management (PGDM). To the best of my knowledge this is
an original piece of work. I wish him all the very best in his career endeavors. Dr. P. SAI RANI [ICBM-SBE]
Prepared by Ajay Kumar Gupta Project Report

7. (…………………………………….) (PROJCET GUIDE) TABEL OF CONTENTS S.No. CONTENTS 1.

Executive Summary 2. Introduction to Retailing 3. Objective of the Study 4. Research Methodology and Scope of
the Study 5. Assumption of Study 6. Retail Sector and its scope in India 7. Company Profile RPG Group Spencer’s
Retail Ltd. 8. Introduction to Market Potential and Catchment Analysis 9. Data Analysis and Interpretation 10.
Findings of the Study 11. Challenges and Opportunities 12. Suggestions and Recommendation [ICBM-SBE]
Prepared by Ajay Kumar Gupta Project Report

8. 13. Limitations of Study 14. Conclusion Annexure Bibliography Retailing – Customer is King “A
Customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is
not an interruption on our work. He is the purpose of it. He is not an outside of our business. He is a part of it and we
are not doing him a favor by servicing him. He is doing us a favor by giving us an opportunity to do so.” Mahatma
Gandhi Some Published issue of Retail Industry • The retail industry is expected to grow into a USD 427 billion
industry by 2010- FICCI. • India’s retail industry, which is in the middle of rapid growth, has already scripted
success stories fit to be the subject of a Bollywood film-Business Standard. • The impact of organized retailers that
have seen swarming of malls lately, on the “mom-n- pop stores” in 20 Indian cities- Indian Council of Research in
International Economic Relations (ICRIER). • Modern Retailing Comprehensive policy vital- The Hindu • Retail
 boom triggers ancillary industry growth- The Times of India [ICBM-SBE] Prepared by Ajay Kumar Gupta Project
Report

9. The Indian Macro Economy • Tops AT Kearney list of emerging markets for global Retailers to enter. •
2nd Fastest growing economy in the World and 50% of the total GDP led by services such as IT,
telecommunications, healthcare and retailing. • GDP growth rate for the year 2007-08 ended at 9.4% (in 1 st quarter)
and current GDP (6 %) is better than China and other developed country. • Reserves crossed the $150 billion mark,
showcasing India as one of the top ten holders of Foreign exchange reserves. • Population – 1000+ Million – 50
Million Rich and 300 Million Middle class • 65% of population below 35 years and 54% below age 25 years •
Working population in India is growing like most other developed countries. • China has issues of median age 30-34
years at the early stage of development and psychology issues after implementation of “one child policy” • Housing
Boom – due to nuclear family, low interest rates, tax benefits from government and lastly strong Indian values
driven by savings and “owning home” • Economy - 4h largest economy in the world on PPP basis (next only to
USA, China and Japan) -One of the fastest growing economy with 6.5% average growth in GDP for last 10 years
and is expected to rank 3rd by 2010, just behind the US and China • Fragmented retailing with 5 million retailers
and 95% less than 500 sq ft – nation of shop-keepers -brilliant trading and entrepreneur community • Over 3.9
million tourists visited India this year, up from 3.0 million last year. • India is on the track to be the servicing capital
of the world (As China is manufacturing capital) and Organized retail growing at 25-30%+ p.a. compound growth. •
IPL has again drastically changed the outlook of the whole world towards India. It has the highest paid players
across the Globe / Sports. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

10. • Real Estate & Retailers in India are the most aggressive in Asia in expanding their businesses, thus
creating a huge demand for real estate. Their preferred means of expansion is to increase the number of outlets in a
city and also expand to other regions. • Driven by changing lifestyles, strong income growth and favorable
demographic patterns, Indian retail is expanding at a rapid pace. • Besides the 6 metros, India has 61 other cities
with populations greater than 0.5 million and contributes about 14% to the country’s GDP. India Vs World • Indian
retail is fragmented with over 12 million outlets operating in the country which is 13 times more the all retail outlets
operating in USA (0.9 million outlets). • India has the highest number of outlets per capita in the world - widely
spread retail network but with the lowest per capita retail space (@ 2 sq. ft. per person) • Annual turnover of Wal-
Mart (Sales in 2001 were $219 billion) is higher than the size of Indian retail industry. Almost 100 times more than
the turnover of HLL (India's largest FMCG Company). • Wal-Mart - over 4,800 stores (over 47 million square
meters) where as none of India's large format store (Spencer’s, Big Bazaar, Shoppers' Stop, Westside, Lifestyle) can
compare. • The Wal-Mart sales per hour of $22 million are incomparable to any retailer in the world. Numbers of
employees in Wal-Mart are about 1.3 million where as the entire Indian retail industry employs about three million
people. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

11. • One-day sales record at Wal-Mart (11/23/01) $1.25 billion - roughly two third of HLL's annual turnover. •
Developed economies like the U.S. employ between 10 and 11 percent of their workforce in retailing (against 7
percent employed in India today). • 60% of retailers in India feel that the multiple format approach will be
successful here whereas in US 34 of the fastest-growing 50 retailers have just one format • Inventory turns ratio:
measures efficiency of operations. The U.S. retail sector has an average inventory turns ratio of about 18. Many
Indian retailers have inventory turns levels between 4 and 10 - KPMG surveyed. • Global best-practice retailers can
achieve more than 95 percent availability of all SKUs on the retail shelves (translating into a stock-out level of less
 than 5 %).The stock-out levels among Indian retailers surveyed ranged from 5 to 15 percent. [ICBM-SBE] Prepared
by Ajay Kumar Gupta Project Report

12. 1. ExECuTivE SummAry [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

13. Executive Summary Retailing is emerging as a sunrise industry in India and is presently largest employer
after agriculture. Some economists say that Retailing is one of the pillars of the economy in India, and some say it is
gold mine of Indian economy. Retailing in its present form started in the latter half of 20th century in USA and
Europe. Retail industry is divided into organized and unorganized sectors. Over 12 million outlets operate in the
country and only 5% of them being larger than 500 sq ft (46 m²) in size. Organized retailing in India is projected to
grow at the rate of 25-30% p.a., is estimated to grow from the US $ 330 billion in 2007 to US $ 427 billion by 2010
and US $ 637 billion by 2015. Indian Retail Sector is growing very fast with so many new players are coming in this
growing organized sector and trying to attract customers by giving attractive offers and offering competitive prices
etc. Spencer’s Retail Ltd is India’s leading retailer that operates in multiple formats. The company operates over 6
million square feet of retail space, has over 350 square feet of retail stores across 60 cities in India and employs over
4500 people. The motive of the study is to know the market potential at Dr. A.S. Rao Nagar, Hyderabad with
reference to Supermarkets & find out the customer’s perception about Supermarkets & what are the customers’
expectations from Spencer’s Retail. The main purpose of the study is to find out the target customers, preferences of
the customers and sales potential with reference to Spencer’s. The study is done with the help of primary data given
by respondents during survey and secondary data to know the market potential and customer preferences at Dr. A.S
Rao Nagar, Hyderabad market with reference to Spencer’s Retail Ltd, and also to understand the current market
position of Spencer’s Daily at that area and know the potential customers. This study is done with the help of area
mapping and catchment analysis technique. Primary data is collected through personal interview using structured
questionnaire and secondary data is collected from management of the Spencer’s Retail Ltd, various book, journals
and from Spencer’s website. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

14. Dr. A.S. Rao Nagar is a developing area of Hyderabad and it consists of all classes of families. Most of the
families belong to Socio Economy Class (SEC) A & B. Most of the residents fall in to age group 18-45. Most of the
families have 4 to 5 members in their families. Residents are well educated and holding jobs. Their monthly incomes
are ranging from 10,000-20,000 and above. Approximately 86.5% people visit Supermarket for shopping and
50.75% people visit to Spencer’s Daily Supermarket. From the above data it can be observed that there is a potential
for good market opportunities for retail Supermarket. The reason for visiting super markets as mentioned by the
respondents varied from better services to pricing to variety of products available with the super markets. 44.75%
respondents visit super markets for the prices offered by the super markets and 46.75% mentioned that the quality of
product provided by the super markets is the reason for their visit to super markets. The other factors which attract
the respondents to various super markets are variety of products offered, fresh products like fruits and vegetables,
availability of dairy products, home delivery, parking facilities, accepting debit/ credit cards, fast billing, booking
counters, customer service, courteous and friendly behavior and ambience. Most of the customers complained
regarding customer service, variety of product with deep assortment, store image, arrangement of products, pricing,
product knowledge of employee, quality of products, parking space, product updation, closing time at Dr. A.S. Rao
Nagar with reference to Spencer’s Daily. Company can enhance its business or increase its sales by doing these
things; provide better customer service than its competitors, increase the variety of merchandise with deep
assortment, arrangement of product should be in proper way that creates good store image, provide club Spencer’s
 membership card to the customers. Company should also include apparels segment in the store, should advertise
through pamphlets about various offers, provide parking space and employ knowledgeable sales staff. [ICBM-SBE]
Prepared by Ajay Kumar Gupta Project Report

15. This study helped me a lot for analyzing the market, understanding retail business and how to respond in
critical situations. Findings and suggestions/recommendation of this report might be helpful for the company to
improve its performance and business. 2. iNTrOduCTiON TO rETAiLiNg [ICBM-SBE] Prepared by Ajay Kumar
Gupta Project Report

16. Introduction The word retail has its origin in French word retaillier and means “to cut a piece off’’ or “to
break bulk”. The term Retailing is defined as “All activities involved in selling goods and services directly to final
consumers for their personal and non-business use”. In simple terms, it implies a first-hand transaction with
customer. Retailing involves a direct interface with the customer and the coordination of business activities from end
to end right, from the concept or design stage of a product or offering, to its delivery and post delivery service to the
customer. The industry has contributed to the fastest changing and dynamic industries in the world today. Retailing,
it is an emerging trend in the India and Hyderabad is not far behind which is also witnessing the stupendous growth
and opportunities presented by this sector. Many institutions- Manufacturing, Wholesalers and retailers – do
retailing, but most retailing is done by Retailers. A business wholesales come from primarily from retailing. It is a
proven fact that in India the retail industry has become the 2nd largest employer after agriculture. Indian retail sector
is in boom period and many reasons are contributing to it. The retail scenario in India is unique. Much of it is in the
unorganized sector, with over 12 million retail outlets of various sizes and formats. Almost 95% of these retail
outlets are less than 500 sq. ft. In size, the per capita retail space in India being 2 sq. ft. compared to the US figure of
16 sq. ft. Thus India’s per capita retailing space is the lowest in the world. With more than 9 outlets per 1000 people,
India has the largest number of outlets in the world. Most of them are independent and contribute as much as 95% to
the total retail sales. Because of the increasing number of nuclear family, working women, greater work pressure
and increased commuting time, convenience has become a priority for the Indian consumers. [ICBM-SBE] Prepared
by Ajay Kumar Gupta Project Report

17. The growth and development of organized retailing in India is driven by two main factors – lower price and
benefits the consumers can’t resist. According to experts, economies of scale drive down the cost of supply chain,
allowing retailers to offers more benefits offered to the customers. Globally, retailing is customer-centric with an
emphasis on innovation in products, process and services. In short, the customer is the king. The Indian retail market
is the 5th largest retail destination globally. It is estimated to grow from the US $ 330 billion in 2007 to US $ 427
billion by 2010 and US $ 637 billion by 2015. In Hyderabad, Spencer’s Retail came up as the organized retail outlet
in the form of a Hypermarket in the year 2001, with its inception in Hyderabad, shopping got an altogether new
meaning in Hyderabad. Some of the striking features of Spencer’s Retail – a big and different formats having nice
store image, along with soothing music and luring visual display of the products with self-selection facility
magnetizing customers to choose from a wide assortment and variety of the products priced with entrancing
discounts and fabulous offers. The emergence of organized retailing has led to competition which has resulted to the
demographics & psychographic changes in the life of urban consumers. The life style and purchasing power of the
middle class & upper class segment have fuelled the growth of organized retailing to intense competition among the
big players. Spencer’s Retail is facing big intense competition from organized retail outlets like Big Bazaar, More,
Vijetha, Hyderabad Central, Spar, Shopper’s Stop, Pantaloon’s, Heritage fresh @, Food World, Reliance fresh,
 Vishal Mega Mart etc, to name a few, and from unorganized retailers like Kirana shops, Garment shops etc.
Competition in retail sector has become extremely keen. Many new players coming in the retail market has
increased the degree of competition by adopting 5 P’s (i.e. place, product, price, promotion and people) for
successful retailing. While some of the exiting retailers survived, others failed to do so. [ICBM-SBE] Prepared by
Ajay Kumar Gupta Project Report

18. 3. OBjECTivE OF ThE STudy [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

19. Objectives of the study • To study Dr. A.S. Rao Nagar area demographic wise. • To study about the
perception of customers with reference to availability of products and services in supermarket/Spencer’s. • To study
about customer preferences and frequency of shopping. • To know the target customer’s of Spencer’s
Retail/Supermarket at Dr. A.S. Rao Nagar. • To understand the customer’s expectation from retail service provider.
[ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

20. 4. rESEArCh mEThOdOLOgy ANd SCOpE OF ThE STudy [ICBM-SBE] Prepared by Ajay Kumar Gupta
Project Report

21. Research Methodology The study is relied on primary as well as secondary data. The primary data is
collected through personal interviews using structured Questionnaire. The Secondary is collected from management
of the Spencer’s Retail Ltd, various books, journals and Internet. Sampling Methods: Probability sampling method
or simple random sampling Universe: - The research work was accomplished in Dr. A.S. Rao Nagar, Hyderabad, so
Dr. A.S. Rao Nagar, Hyderabad is my Universe. Sample Size: - Sample size was 400. Research Instrument: - For
this study, for the collection of various data requirement, structured questionnaire is used. This questionnaire
contains qualitative and quantitative information of the customers. The questionnaire contains of both open-ended
and close ended questions, which would help to know the situation prevailing in the market. Statistical Tools Used
For the purpose of data analysis, Percentage Method is used for calculation and result was interpreted. No. of
Respondents Percentage = ---------------------------×100 Total Respondents [ICBM-SBE] Prepared by Ajay Kumar
Gupta Project Report

22. Scope of the Study With the help of primary data given by the respondent during survey and secondary
data, study is done to help the Spencer’s Retail Ltd to understand the market potential at Dr. A. S. Rao Nagar,
Hyderabad market, also to understand the customer preferences and, potential customers and current market position
of Spencer’s Daily at that area. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

23. 5. Assumptions of the Study The assumptions of the study are---- • Questionnaires which were filled by
both husband and wife and other members of family have been considered by me as filled by male (earner) only. •
Those questionnaires which are more than 80% filled, I have taken them in to consideration as a full filled
questionnaire. • Customers who visit occasionally to Spencer’s in a month or with 15 days, I consider that once in a
week. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

24. 6. rETAiL SECTOr ANd iTS SCOpE iN iNdiA [ICBM-SBE] Prepared by Ajay Kumar Gupta Project
Report

25. Retail Sector and its scope in India Structure of Indian Retail Sector The retail industry continued in India
in the form of Kirana stores till 1980. Soon, following the modernization of the retail sector in India, many
companies started pouring in the retail industry in India like Bombay Dyeing, Grasim etc. From that time the retail
 sector in India can be widely split into the organized and the unorganized sector. Organized Retail Sector After 50
years of unorganized retailing and fragmented Kirana stores, the Indian retail industry has finally begun to move
towards modernization, Systematization and consolidation. Today, modernization is the catch phrase and the key to
understanding retail in the next decade. There has been a boom in retail trade in India owing to a gradual increase in
the disposable incomes of the middle class households, as a result of good performance of IT, Service and
Infrastructure sectors. More and more players are entering the retail business in India to introduce new formats like
malls, supermarkets, discount stores, department stores and even changing the traditional looks of bookstores,
chemist shops, and furnishing stores. Organized retail formats prevalent globally • Malls • Supermarkets •
Hypermarkets • Discount Stores • Department Stores • Specialty Stores • Internet Retailing • Convenience Stores •
MBO [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

26. Unorganized Retail Sector The unorganized retail sector basically includes the local Kirana stores, hand
cart, the vendors on the pavement (sidewalk) etc. This sector constitutes about 95% of the total retail trade. As 70%
of the employment is generated in Agriculture sector, hence this form of retailing is widely seen in those areas and
of course to some parts of the urban. There is a lot of hue and cry in the sector for opening of sector for direct
investment from the foreign players, but government cannot neglect the interests of small players. One of main
reason of not opening this sector to FDI is it may shrink the employment in the unorganized sector and expand that
in the organized. The Evolution of retail in India Traditional Established Emerging Formats Formats Formats
Itinerant Salesman Kirana shops Exclusive retail outlets Haats Convenience/Department stores Hypermarket Melas
PDS Malls/Multiplexes Kiosks Pan/Beedi shops Specialty Malls Post Office Fast food outlets etc. India's Largest
retail Chains: 1. PDS (Public Distribution System): 463,000 2. Post offices: 160,000 3. KVIC (Khadi & Village
industries): 7,000 4. CSD (Canteen Stores Department) Stores:3,400 (Source business world marketing White book
2005) [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

27. Current Scenario of Indian Retail Sector The Indian retail market, which is the fifth largest retail
destination globally, has been ranked the 2nd most attractive emerging market for investment after Vietnam in the
retail sector by AT Kearney’s seventh annual Global Retail Development Index (GDRI), in 2008. The share of retail
trade in the country’s gross domestic product (GDP) was between 8-10% in 2007. It is currently 12%, and is likely
to reach 22% by 2010. A McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian consumer
market is likely to grow four times by 2025. Commercial real estate services company, CB Richard Ellis' findings
state that India's retail market is currently valued at US$ 511 billion Indian retail on the fast-track • The Indian retail
market is the fifth-largest retail destination globally. It is estimated to grow from the US$ 330 billion in 2007 to US$
427 billion by 2010 and further US$ 637 billion by 2015. Indian retail showed a growth rate of 49.73% with a
turnover of US$ 25.44 billion in 2007-08 as against US$ 16.99 billion in 2006-2007. • Retail contributes to 10 per
cent of India’s Gross Domestic Product and provides employment to 8 per cent of India’s working population. •
Higher disposable incomes, easy availability of credit and high exposure to media and brands has considerably
increased the average propensity to consume over the years. GRDI India ranked first for the third consecutive year
on the Global Retail Development Index – 2007, conducted by AT Kearney across 30 emerging economies. India is
ranked as the most preferred retail destination for international investors. GCCI India ranked first for the fifth time
on the Global Consumer Confidence Index – June 2007, conducted by The Nielsen Company. Indians were judged
as the world’s most optimistic consumers, with high financial confidence about their income for the next 12 months.
[ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report
28. The contribution of retail sector to GDP has been manifested below: Country Retail Sector's share in GDP
(in %) India 10 USA 20 China 8 Brazil 6 The analysts foresee bright future of the retail sector. A huge number of
shopping malls, nearly 100, have come up in the recent past, generating 20mn sq ft. retail space, extending more
space of about 12mn sq ft to it. Nearly 60 malls are on the verge of completion and may be operational by the end of
current financial year. A forecasted number of nearly 200 malls, in a move to make additional 50mn sq ft of retail
space, will be completed within the next two-years. India retail industry is expanding itself most aggressively; as a
result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to
other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600
new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of
9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to
branded food. Since at present 60% of the Indian grocery basket consists of non- branded items. The global retail
giants like Wal-Mart, Spar International, Tesco, K-Mart/SEARS, Carrefour, ZARA, FCUK, Carrefour Group and
The Home Depot, NEXT, Mother Care, lKEA, Trussardi, DKNY and many more have made plans to march in the
Indian market. Companies like Spencer’s, Shoppers Stop, Trent, Reliance, Lifestyle, Pantaloons Tanishq,
Crossroads, Vishal and More already have planned to invest over Rs 5,000cr. Trent is on the edge to take both its
brands 'Star India Bazaar' and 'Westside' to new cities, meanwhile Shoppers' Stop has recently geared up for
expansion of present ones and to add 11 new stores including two hypermarkets. Pantaloon has planned to add eight
'Big Bazaar' malls within the next 6 to 8 months and also Spencer has geared up for opening 15 hypermarkets in
near future. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

29. After partition, Reliance Industries Ltd (RIL) is substantially getting ready to enter in field of retailing. RIL
is poised to emerge as the single largest player in this sector. On the other hand, Tosco’s, Wal-Marts or Safeway
does ultimately enter in the country. So finally, Shoppers' Stops, Westside, Pantaloons and West sides in coming
years have will face stiff competition. Major Indian Retailers:- • RPG Retail-Formats: Music World, Books &
Beyond, Spencer’s Hyper, Spencer’s Super, Daily, Express & Fresh • Pantaloon Retail-Formats: Big Bazaar, Food
Bazaar, Pantaloons, Central, Fashion Station, Brand Factory, Depot, aLL, E-Zone etc. • The Tata Group-Formats:
Westside, Star India Bazaar, Steel junction, Landmark, and Titan Industries with World of Titans showrooms,
Tanishq outlets, Chroma. • K Raheja Corp Group Formats: Shoppers’ Stop, Crossword, Hyper City, Inorbit •
Lifestyle International- Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores. • Pyramid
Retail-Formats: Pyramid Megastore, True-Mart • Nilgiri’s-Formats: Nilgiri's’ supermarket chain • Subhiksha-
Formats: Subhiksha supermarket pharmacy and telecom discount chain. • More-Formats: Supermarket chain and
hypermarket chain • Vishal Retail Group-Formats: Vishal Mega Mart • BPCL-Formats: In & Out • Reliance Retail-
Formats: Reliance Fresh • Reliance ADAG Retail-Format: Reliance World • German Metro Cash & Carry:-
Wholesale • Shoprite Holdings-Formats: Shoprite Hypermarket [ICBM-SBE] Prepared by Ajay Kumar Gupta
Project Report

30. International Retailers:- The world's largest retailer, Wal-Mart, has tied-up with Sunil Mittal's Bharti
Enterprises to enter Indian retail market. • Microsoft's first shop-in-shop pilot has been launched with the Tata
Group subsidiary Infiniti Retail's multi-brand consumer durables retail format, Croma. • The Walt Disney Company,
consumer product retailing arm of global animation giant, will soon add 135 new stores to its existing 15 stores. •
World's leading coffee chain, Starbucks' enters India through a tie-up with the country's leading multiplex operator
PVR Limited. • Apple Inc has entered into an exclusive marketing and distribution deal with Reliance Retail through
"iStore by Reliance Digital". • Some of the international players that have already entered India include McDonald's,
 Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton, Swarovski, Sony, Sharp, Kodak, Medicine Shoppe
among others. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

31. 7. COmpANy prOFiLE [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

32. Company Profile RPG Enterprise Type: - Private Conglomerate Founded: - Mumbai, India (1979)
Founder(s):- RP Goenka Headquarters: - Mumbai, India Key People: - RP Goenka (Chairman Emeritus) Harsh
Goenka (Chairman) Sanjeev Goenka (Vice Chairman) Industry: - Power, Retail, Tyres/Tires, Transmission,
Technology, Entertainment and other Revenue: - US$3.25 billion Employees: - 58000 Website: -
www.rpggroup.com [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

1. RPG Enterprises:- RPG Enterprises, established in 1979 by RP Goenka, is one of India’s fastest growing
business groups with a turnover touching Turnover of Rs. 13,500 cr. and initially encompassed Phillips
CarbonBlack, Asian Cables, Agarpara Jute and Murphy India. Currently, RP Goenka retains the title of Chairman
Emeritus, while the chairmanship and vice-chairman ship have been assumed by his sons Harish and Sanjeev
Goenka respectively. The group has more than twenty companies managing diverse business interests in the areas of
Power, Tyre, Transmission, IT, Retail, Entertainment, Carbon Black, and Specialty. The conglomerate’s major
companies, subsidiaries and affiliates are….. • Power • CESC • Noida Power Company Limited • Tyres / Tires •
CEAT • CEAT Srilanka • Phillips Carbon Black • Harrisons Malayalam • Transmission • KEC International • RPG
Transmission • Nitel • Technology • Zensar Technologies • RPG Cables • RPG Life Sciences [ICBM-SBE] Prepared
by Ajay Kumar Gupta Project Report

2. • Raychem RPG • Retail • Spencer's Retail • Music World • Books and Beyond • RPG Cellucom •
Entertainment • Saregama • Other • Spencer's Travel Services • Spencer International Hotels Wide-ranging
businesses, growing returns and a reputation to reckon, makes working with RPG an enriching experience. Where
entrepreneurial skills are valued, excellence is the by-word, and performance is a pre-requisite. • Management The
RPG Management Board is the backbone of the conglomerate. Its members are highly qualified professionals, well
experienced in their respective fields. • Values RPG’s business ethics promote higher levels of excellence. The
group’s values of Customer Sovereignty, People Orientation, Innovation & Entrepreneurship, Transparency &
Integrity and Passion for Superior Performance, Anticipation, Speed and Flexibility propel it to perform and excel in
all spheres of the business. • Quality For RPG quality determines success. Continuous process improvements are
carried out to ensure complete satisfaction of customer and market requirements. [ICBM-SBE] Prepared by Ajay
Kumar Gupta Project Report

3. • Beyond Business RPG is a socially responsible organization; believing in giving back to the community
what it has gained from it. The group regularly contributes toward the welfare of various social groups and is
involved in promoting social activities in the field of sports and arts. History of RPG Group The history of RPG
began in 1820 when Ramdutt Goenka, from a small town in Rajasthan, came to Calcutta to do business with the
British East India Company. The following milestones speak of his enterprising efforts, and the subsequent growth
of the RPG group. • By the 1900s the Goenka’s establish themselves in diverse business sectors like banking,
textiles, jute and tea. • Sir Hariram Goenka and Sir Badridas Goenka are conferred knighthood by the British for
outstanding contribution to business and the community. • In 1933, Sir Badridas Goenka becomes the first Indian to
be appointed Chairman of the Imperial Bank of India (now the State Bank of India). • He is elected President of the
Federation of Indian Chambers of Commerce and Industry (FICCI) in 1945. • Keshav Prasad Goenka (son of Sir
 Badridas Goenka) continues the successful trait of entrepreneurship. • In 1950 Goenka’s acquire two British trading
houses - Duncan Brothers and Octavius Steel. • After successful acquisitions in the areas of tea, automobile, tyre,
jute, cotton textile and electric cables, Keshav Prasad Goenka retires in the 70s. His business is taken over by his
three sons. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

4. • One of the sons, Rama Prasad Goenka (better known as RP Goenka), starts RPG Enterprises in 1979 with
Phillips Carbon Black, Asian Cables, Agarpara Jute and Murphy India. • The 80s see further acquisitions by the
RPG group, the first being CEAT Tyres of India in 1981. The group then went on to acquire KEC (1982); Searle
India, now RPG Life Sciences (1983); Dunlop (1984); HMV (1988); and finally CESC, Harrisons Malayalam,
Spencer & Co. and ICIM in 1989. • RP Goenka’s sons Harsh (Chairman) and Sanjeev (Vice-Chairman) spearhead
the group’s management from 1990. • RP Goenka currently oversees the group’s affairs as “Chairman Emeritus”.
Today, RPG has more than twenty companies across eight business sectors, with a Turnover of Rs. 13,500 cr. • The
group recorded a turnover of Rs 11,500 crore (equivalent to Rs. 115 billion) for fiscal year 2007. Management
Board [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

5. Spencer's Retail Ltd. (A RPG Enterprise) RPG Enterprises is not only one of the biggest, but also of the
most respected names in the industry. A US $ 3.25 billion dollars business conglomerate, RPG is one of the
powerhouses that drive Indian industry. With more than twenty companies, it spans six business sectors - Power,
Tyres, Transmission, Technology, Retail and Entertainment. With such a diverse portfolio, RPG Enterprises has had
unrivalled success which speaks very highly of the efficiency and vision with which the group is run. Over the years,
RPG Enterprises has built a huge reservoir of trust and goodwill among the people of India. We at Spencer’s are
truly proud to be a part of the RPG family. About Spencer’s Retail Ltd. Spencer’s Retail Limited, part of the Rs
13,500 crores RPG group, is one of India’s largest and fastest growing multi-format retailer with 350 stores,
including 35 large format stores across 60 cities in India. Spencer’s focuses on verticals like food and grocery, fruit
and vegetables, electrical and electronics, home and office essentials, garments and fashion accessories, toys, food
and personal care, music and books. Established in 1996, Spencer’s has become a popular destination for shoppers
in India with hypermarkets and convenient stores catering to various shopping needs of its large consumer base. We
are proud today of our 350 stores across 60 cities covering a retail trading area of 1.3 million square feet and an
astonishing 4.5 million customers a month. Spencer’s is one of the earliest entrants into the retail space and literally
introduced the Indian consumer to the concept of organized retailing. In fact, the first ever hyper store in India
[ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

6. was launched by Spencer’s at Hyderabad in the year 2001. The journey onwards has been one of the most
aggressive of all the retail players in India. The company started its operations way back in the early 90’s in the
south and over the last one year-and-a-half, it has ramped up operations to about 350 stores across 60 cities in India.
Spencer’s is on a high growth path. Operations Spencer’s has retail footage of over 6 million square feet and over
350 Spencer’s stores in 60 cities. The company operates through the following formats: • The Spencer's hyper stores
are destination stores, of more than 15,000 sq. ft in size. They offer everything under one roof. The merchandise
ranges from fruits & vegetables, processed foods (Ready to Eat, Ready to Cook, FMCG products),specialty foods
including international, sugar free, organic foods, etc…..groceries, meat, chicken, fish, bakery, chilled and frozen
foods, garments, consumer electronics & electrical products, home care, home décor & home needs, office
stationeries, soft toys. Besides, the stores also comprise book & music retailing, electronic gadgets and IT
accessories. On an average, a Spencer’s hyper stocks 70,000 SKUs across 35,000 items. • The Spencer's stores are
 neighborhood stores ranging from 1500 less than 15000 sq. ft. These stores stock the necessary range and assortment
in fruit and vegetables, FMCG food and non-food, staples and frozen foods and cater to the daily and weekly top-up
shopping needs of the consumer. Some of these stores which have floor area of more than 10,000 sq ft sometimes
offer home care products; personal care products, bakery, chilled and frozen food; baby care, basics in garments and
limited range of electronics and electrical. Important Point:- [ICBM-SBE] Prepared by Ajay Kumar Gupta Project
Report

7. • Fastest growing retail stores with multiple formats and retailing food, apparel, fashion, electronics,
lifestyle products, music and books. • Established in 1996 and headquarter is in Chennai. • Retail footage of over 6
million square feet and over 350 Spencer’s stores in 60 cities. • Spencer’s Retail has a loyalty program. They offer a
co-branded credit card with HSBC bank (HSBC Spencer's Retail Credit Card). • Spencer's Retail Limited, one of
India's largest food first multi-format retailer, has been awarded the Coca Cola Golden Spoon "Most Admired Food
& Grocery Retailer for Convenience and Express formats" Award at the Food Forum of India, 2009 held in Mumbai
and this is the third award that the organization has received, three years in a row. Spencer’s was awarded the
Turnaround Retailer of the year 2006 at the India Retailers Forum, 2007 in Mumbai. And Most Evolved Retailer of
the year 2007 at the India Retail Forum, 2008. • With an immense amount of expertise and credibility, Spencer’s
Retail has become the highest benchmark for the Indian retail Industry. In fact, the company’s continuing expansion
plans aim to help Spencer’s Retail meet the challenges of the retail industry in an even better manner than it does
today. New Ventures • Spencer’s retail has announced a tie-up with British retailer Woolworths Plc for exclusively
selling its famous toy brand Chad Valley through its outlets. • Besides the Chad Valley range of toys (available at
prices Rs. 49 upwards), Woolworths is also planning to introduce the Ladybird range of kids wear. Vision To “build
Spencer’s as the most professionally managed retail business in the country through:- • Excellence in all operating
processes; • Nurturing and facilitating a learning and growth culture; • Building a unique retail experience for the
customers; Mission Strives to exceed the aspirations of its customers for a healthy and fulfilling lifestyle by
providing:- [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

8. • The most innovative consumer goods and delectable taste experience. • The ultimate shopping experience.
• Unsurpassed customer service. • Unbeatable value • The ‘next’ place away from home or office to relax and
indulge themselves. Major Future Plan • It will be going in for public issue within the next 12 months to raise capital
for expansion. • The company plans to focus on the larger format stores in the identified growth clusters with higher
market potential value and stronger brand equity for Spencer's. These clusters are Bangalore, Hyderabad, Coastal
Andhra Pradesh, Chennai, Delhi NCR, East UP, Pune, Mumbai, South Kerala, Aurangabad, Punjab and Kolkata. •
The company will be investing Rs. 10 billion over the next 3 years using both internal source and an IPO. • The
company has already reserved 1 million square feet of space all over the country and will be creating close to 10,000
jobs in its different formats. • Spencer’s Retail currently employee’s 4,500 people and has 6 million square feet of
space. • In every financial year, Spencer’s is increasing its stores from 150 to 250 with a target of expanding by 400
more in the next two years. • The company had last year announced a Rs 1,500 investment plan to expand its
business across the country. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

9. • Spencer’s was the first to introduce the concept of music retailing with "Music World" chain of stores,
followed by "Books and Beyond"[Retail chain of Book Stores] and "RPG Cellucom"[Retail Chain of Mobile
Stores]. They are planning to setup 1,500 cellcoms and 400 Music Stores by 2010. • Spencer’s has announced that it
will very soon launch CRT TVs under the brand name Yashika. • Spencer’s is all set to enter the standalone
 Lifestyle Retailing segment by opening American Lifestyle Brand stores in India - Beverly Hills Polo Club [BHPC].
The company plans to setup five BHPC stores all in the Delhi NCR region and then move to other metros. Formats
of Spencer’s Outlets • Spencer’s has retail footage of over 2 million square feet and over 350 Spencer’s stores in 60
cities. • The company operates through the following formats:- Spencer’s Hyper:- A fast growing retail network of
hypermarkets with large format stores in Hyderabad, Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Vizag,
Vijayawada, Aurangabad, Durgapur, Kolkata, Gorakhpur and Warangal. Spencer’s super: - One of the largest
supermarket chains in the food and grocery segment in India. Spencer’s Daily: - Small format stores conveniently
located with a range of products to meet daily household needs. [ICBM-SBE] Prepared by Ajay Kumar Gupta
Project Report

10. Spencer’s Express: - Food and grocery store next door. Spencer’s Fresh: - Spencer’s Fresh stores provide
with an enjoyable convenient shopping environment in very own neighborhood. Spencer’s Hyper:- • The Spencer’s
Hypermarkets are huge destination stores, more than 25,000 square feet in trading area. Shoppers come here looking
for fantastic deals across all categories. • Hypermarkets ensure a comfortable, clean, bright and functional ambience
to shop along with the convenience of finding everything under one roof at the best value for money. Spencer’s
Super:- • One of the largest supermarket chains in the food and grocery segment in India. • The Spencer’s Super is
the place to go for weekly and monthly shopping. • About 8000-15,000 square feet in size, the Spencer’s Super not
only caters to the daily needs but also stocks Home care products, Personal care products, Bakery, Chilled and
frozen food, Baby care besides groceries and staples, Fresh fruits and vegetables and many more............ Spencer’s
Express:- • Spencer’s express positioned as the food and grocery store next door. • These stores are around 1000
square feet in size. They are open from 7 am to 9 pm and also provide with home delivery. • The Express store stock
dairy products, fruits and vegetable, bread and bread products, cut vegetables/ready to cook, fruit juices, fresh butter,
fresh coffee/tea, fresh masalas, fresh pickles, fresh ghee, fresh fish and meat. [ICBM-SBE] Prepared by Ajay Kumar
Gupta Project Report

11. Spencer’s Daily:- • Small format stores conveniently located with a range of product to meet daily
household needs. • The Spencer’s daily store is a friendly neighborhood store, which caters to the entire daily
shopping need –from regular groceries to fresh food and also weekly top-up shopping. • About 4000-7000 sq ft in
size and with a bright and friendly atmosphere, Spencer’s Daily saves the hassle of bargaining with the local Kirana
shop owners because it offers the lowest possible prices. Spencer’s Fresh:- Spencer’s Fresh stores provide with an
enjoyable convenient shopping environment in very own neighborhood. These 2000 square feet air-conditioned
stores are well stocked with fresh food of the very best quality, such as fresh farm produce, vegetables, fruits, milk,
eggs, breads and much more. With an impressive range and a clean, bright and hygienic ambience, Spencer’s Fresh
is far better than the regular sabzi mandi’s or local vegetable markets and at Spencer’s Fresh consumers not only do
get fresh, clean and tasty farm produce but also lowest possible prices in the locality, yes even lower than sabziwala!
Snapshot:- Different formats of Spencer’s Retail Format Stocks Min. Trading Area (sq.ft.) Spencer’s Express Dairy
products, fruits, 1000 vegetables, bread and bread products, fruit juices, fresh butter, coffee/tea, masalas, pickles,
ghee, fresh fish and meats. Spencer’s Fresh Vegetables, fruits, milk, eggs, 2000 breads and daily use items. [ICBM-
SBE] Prepared by Ajay Kumar Gupta Project Report

12. Spencer’s Daily Regular groceries and daily 4000-7000 use products. Spencer’s Super Home care products,
personal 8000-10,000 care products, bakery, chilled and fresh food, baby care products and daily use items.
 Spencer’s Hyper Miscellaneous and many more More than 25,000 8. iNTrOduCTiON TO mArkET pOTENTiAL
ANd CATChmENT ANALySiS [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

13. Market Potential Market Potential:- Market Potential is the total amount of a product/service that customers
will purchase within a specified period of time at a specific level of industry wide marketing activity or estimated
maximum total sales revenue of all suppliers of a product in a market during certain period of time. This is an
important aspect of marketing since one has to do market research related to his industry product which can be
business to consumer or business to business. Market potential is basically carried out to know the strength in the
industry also to allocate the target to the sales force based on optimum market research which normally includes the
customer’s requirement and their expansion plans, investment etc. With optimum information a company can know
amount of investment for a product, also for a particular area. Total Market Demand:- The total market demand for a
product or service is the total volume that would be bought by a defined consumer group in a defined geographic
area in a defined time period in a defined marketing environment under a defined level and mix of industry
marketing effort. Total market demand is not a fixed number but a function of the stated conditions. [ICBM-SBE]
Prepared by Ajay Kumar Gupta Project Report

14. Market demand in the specific period Market potential Market forecast Market minimum Planned
expenditure Industry marketing expenditures Market demand as a function of Industry marketing expenditures Fig
(1): Market Demand Figure (1) shows the relationship between total market demand and various market conditions.
In this figure, upper limit of market demand is called Market Potential. Companies have developed various practical
methods for estimating total market demand. A common method to estimate total market demand is as follows:-
Q=n×q×p Where Q = total market demand n = number of possible buyers in the market q = quantity purchased by
an average buyer per year p = price of an avg. unit Benefits of Market Potential Analysis:- • Understand market
potential for a single store, network of stores or a new market. • Deploy resources effectively by ranking markets in
priority order. • Forecast total opportunity in terms of number of customers and revenue potential. • Estimate your
market share. A market potential analysis may include: • A customer profile to understand where to find more like
them [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

15. • Market penetration and market share reports showing performance in existing markets and expected
performance in new markets • Market ranking reports allowing you to prioritize resource deployment into new
markets • A geographic view of market opportunity on detailed maps Market potential can be expressed as a
function of: • The number of customers purchasing • Amount purchased • Frequency of purchase In other words,
market potential = (how many * how much* how often) Bottom Up or Top Down Market Analysis:- • A Bottom Up
approach to market sizing starts with a company customers. How much and often do they buy? What is their profile?
How many potential customers do you have in the market based on your customer profiles? How can you reach
them? • A Top Down approach starts with market and industry data. It takes a close look at a geographic market area
and profiles the consumers and/or businesses to let you know their propensity to buy your products and services.
Estimating the market or market potential for a new business or business expansion is critical in determining the
economic feasibility of a venture. But market potential is very essential for the company and by knowing market
potential a company can make its position in the market by finding how many players are there in that sector.
[ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

16. CATCHMENT ANALYSIS Introduction about Dr. A.S. Rao Nagar, Hyderabad:- Dr. A.S. Rao Nagar is
developing area of Hyderabad and it consists of all class of family. In his area 5.4% families belong to Socio
 Economy Class (SEC) A+, 38.6% families belong to SEC A, 52% families belong to SEC B and 4% families belong
to SEC C. All this result has been found with the help of Area Mapping technique and catchment analysis, all these
data are approximate. By all these data we can find that this area is having good market opportunities retail
Supermarket. • If a company doesn’t know who its shoppers are, how can company give them what they want? If
company doesn’t know where they come from, how can company communicate with them? Finding answers to
these questions is vital but catchment analysis is very helpful in that. • A company or retail store will be able to
optimize its activities if and only if company knows its market in depth. Its market penetration, its success and its
potential depend on [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

17. geographical factors, hard to grasp, hard to fully understand, but catchment analysis is very helpful. • In the
catchment analysis, first part is the area mapping of that local market and through that finds the locations of the
competitors, customers and traffic between them. Through that we quantify the sizes and potentials of that local
catchment areas and market of that area as whole. • With the help of catchment analysis, company knows the best
location for business, target and potential customers Type of catchment area There are four type of catchment that is
following Unitary Catchment It is hub of the catchment area around the outlet, from where maximum number of
people comes to the retail stores for shopping. Secondary Catchment This area is called secondary catchment area
which is around 2 km far away retail stores from where some people come to the shop for shopping. Tertiary
Catchment The area from where only some selected or loyal customers come to the retail stores that is more than 2
km far from outlet. Outer Catchment Outer catchment area is totally outer area from where only less no. of person
sometimes comes to the outlet, [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

18. 9. dATA ANALySiS ANd iNTErprETATiON [ICBM-SBE] Prepared by Ajay Kumar Gupta Project
Report

19. Data Analysis and Interpretation Research in retail is very essential, as customer preferences and choices
are dynamic and change frequently, the retail company needs to understand these before redesigning its processes
for enhancing business and many more. Since customer interaction takes place at the store and near store, there is a
big opportunity to gather first hand information and feedback from customers through research and survey. Research
is carried out at the retail level for concept testing, business feasibility analysis, identification of the right product
mix, target customer and market potential. The major objectives of analysis of data are:- • To evaluate and enhance
data quality • Describe the study population and its relationship • Examine effects of other relevant factors • Seek
further insight into the relationship observed or not observed • Evaluate impact and importance [ICBM-SBE]
Prepared by Ajay Kumar Gupta Project Report

20. Target Customers- Age Wise:- This Table reveals about age group of customers at Dr. A.S. Rao Nagar,
Hyderabad. Table-1 Age Group of Respondents Age Group No. of Respondents % of Respondents 18-25 134 33.5
26-35 152 38 36-45 56 14 46-55 27 6.75 56+ 31 7.75 [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

21. Pie Chart: 1 Source: Primary Data Inference: From the Table-1 and Pie chart-1 depicted above, Out of 400
respondents who answerd the questionnaire, 33.5% people fall in the age group 18-25 years, 38% people fall in the
age group 26-35 years,14% people fall in the age group 36-45 years, 6.75% people fall in the age group 46-55 years
and 7.75% people fall in the age group 56+ years. From the above analysis, it is observed that majority of the
residents fall in the age group 18-25 and 26-35 No. of family member’s of the Respondents This table explains
about No. of family member’s in a family of Dr. A.S. Rao Nagar, Hyderabad. Table-2 No. of Family and Family
 Member's of Respondent Member's of family No. of Family % of Family 1 2 0.5 2 20 5 3 42 10.5 4 123 30.75 5 138
34.5 6 54 13.5 7 15 3.75 [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

22. 8 4 1 9 1 0.25 11 1 0.25 Column Chart-2 Source: Primary Data Inference: From the Table-2, Column chart-
2 depicted above, Out of 400 respondents who answerd the questionnaire, 34.5 people belong to 5 member’s family,
33.75% people belong to 4 member’s family, 13.5% people belong to 6 member’s family, 10.5% people belong to 3
member’s family, 5% people belong to 2 member’s family, 1% people belong to 8 member’s family. [ICBM-SBE]
Prepared by Ajay Kumar Gupta Project Report

23. Target Customer- Education Wise This table explains about education level of customers of Dr. A.S. Rao
Nagar. Table-3 Education Level of Respondents Education Level No. of Respondents % of Respondents S.S.C. 7
1.75 Inter 28 7 Graduate 215 53.75 Post Graduate 138 34.5 Others 12 3 [ICBM-SBE] Prepared by Ajay Kumar
Gupta Project Report

24. Pie Chart-3 Source: Primary Data Inference: From the table, pie chart depicted above, Out of 400
respondents who answered the questionnaire, 1.75% people belong to S.S.C. category education level, 7% people
belong to Inter category education level, 53.75% people to Graduate category education level, 34.5% people belong
to Post Graduate category education level and 3% people belong to others category education level. Occupation of
Respondents This table describes the occupation of respondents who gave the answer of questionnaire and explain
class of customers of Dr. A.S. Rao Nagar, Hyderabad. Table-4 Occupation of Respondents Occupations No. of
Respondents % of Respondents Student 73 18.25 House Wife 27 6.75 Service 172 43 Business 87 21.75 Others 41
10.25 [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report

25. Pie Chart-4 Source: Primary Data Inference: From the table, pie chart depicted above, On this basis of 400
respondents who answered the questionnaire, 43% people belong to Service category, 21.75% people belong to
Business category, 1

33.