1. 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 Spencers are truly proud to be a part of the RPG family. About Spencers Retail Ltd. Spencers Retail Limited, part of the Rs 13,500 crores RPG group, is one of Indias largest and fastest growing multi-format retailer with 350 stores, including 35 large format stores across 60 cities in India. Spencers 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, Spencers 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. Spencers 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 [ICBMSBE] Prepared by Ajay Kumar Gupta Project Report 2. was launched by Spencers 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 90s 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. Spencers is on a high growth path. Operations Spencers has retail footage of over 6 million square feet and over 350 Spencers 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 dcor & home needs, office stationeries, soft toys. Besides, the stores also comprise book & music retailing, electronic gadgets and IT accessories. On an average, a Spencers 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 3. 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 Spencers stores in 60 cities. Spencers 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. Spencers 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, Spencers Retail has become the highest benchmark for the Indian retail Industry. In fact, the companys continuing expansion plans aim to help Spencers Retail meet the challenges of the retail industry in an even better manner than it does today. New Ventures Spencers 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 Spencers 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 4. 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. Spencers Retail currently employees 4,500 people and has 6 million square feet of space. In every financial year, Spencers 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 5. Spencers 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. Spencers has announced that it will very soon launch CRT TVs under the brand name Yashika. Spencers 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 Spencers Outlets Spencers has retail footage of over 2 million square feet and over 350 Spencers stores in 60 cities. The company operates through the following formats:- Spencers 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. Spencers super: - One of the largest supermarket chains in the food and grocery segment in India. Spencers Daily: - Small format

stores conveniently located with a range of products to meet daily household needs. [ICBMSBE] Prepared by Ajay Kumar Gupta Project Report 6. Spencers Express: - Food and grocery store next door. Spencers Fresh: - Spencers Fresh stores provide with an enjoyable convenient shopping environment in very own neighborhood. Spencers Hyper:- The Spencers 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. Spencers Super:- One of the largest supermarket chains in the food and grocery segment in India. The Spencers Super is the place to go for weekly and monthly shopping. About 8000-15,000 square feet in size, the Spencers 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............ Spencers Express:- Spencers 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 7. Spencers Daily:- Small format stores conveniently located with a range of product to meet daily household needs. The Spencers 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, Spencers Daily saves the hassle of bargaining with the local Kirana shop owners because it offers the lowest possible prices. Spencers Fresh:- Spencers Fresh stores provide with an enjoyable convenient shopping environment in very own neighborhood. These 2000 square feet airconditioned 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, Spencers Fresh is far better than the regular sabzi mandis or local vegetable markets and at Spencers 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 Spencers Retail Format Stocks Min. Trading Area (sq.ft.) Spencers Express Dairy products, fruits, 1000 vegetables, bread and bread products, fruit juices, fresh butter, coffee/tea, masalas, pickles, ghee, fresh fish and meats. Spencers Fresh Vegetables, fruits, milk, eggs, 2000 breads and daily use items. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report 8. Spencers Daily Regular groceries and daily 4000-7000 use products. Spencers Super Home care products, personal 8000-10,000 care products, bakery, chilled and fresh food, baby care products and daily use items. Spencers 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 9. 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 customers 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 10. 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=nqp 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 11. 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

1. Challenges and Opportunities At Dr. A.S. Rao Nagar, 5 retail companies are doing their business. These are- 1. Spencers Daily 2. Ushodya Supermarket 3. Food World 4. More 5. Heritage Fresh@ Out of these 5 Supermarkets, on the basis of customer preferences, market survey Ushodya Supermarket is holding 1st position, Spencers Daily 2nd, Food World 3rd, More 4th and Heritage fresh@ 5th. Challenges at Dr. A.S. Rao Nagar Market:- Customers are flexible towards discount and offers with respect to Supermarkets. Despite high footfalls, the conversion ratio has been not good in the Spencer's Daily. More is creating intense competition before Spencers with the help of MORE @ YOUR DOOR. Promotional activities of More Supermarket are continuously going on in the market with the help of Templates, Kiosks Show and Club More Membership Card. On the basis of customers preferences, Ushodya Supermarket is having several varieties of products with deep assortment and Ushodya has covered more market. Personalized service offered by Mom-&-Pop stores. Brand awareness of Spencers is not quite good only 50.75% people shop at Spencers. 29% people shop at Kirana Stores. Knowledgeable sales person inside store for motivating to the customers. Competitors follow competitive and discount pricing strategy. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report 2. Opportunities at Dr. A.S. Rao Nagar Market:- Dr. A.S. Rao Nagar is developing area of Hyderabad and it consists of all class of family, 38.6% families belong to Socio Economy Class (SEC) A, 52% families belong to SEC B. this shows that Supermarkets going people are available. Urbanization is increasing of Dr. A. S. Rao Nagar in broad form, also disposable income of people. People of Dr. A.S. Rao Nagar are changing the Pattern of consumption along with shopping trends. 71% people shop regularly at Supermarkets, 16.5% people shop at Supermarkets and Kirana Stores both and 11.25% people shop at only Kirana Stores. This shows maximum no. of people shop at Supermarkets and if Spencers will provide better customer service in comparison to its competitors with help of attractive offers, promotions and marketing activities then Spencers can enhance its sales. Most of Dr. A.S. Rao Nagar people are educated and job holder, Spencers can do better promotion through pamphlets about facilities and services of Spencers. Most of the people of Dr. A.S. Rao Nagar earn 10,00020,000 and more than 20,000. Customers are very eager to know about offers, discount schemes provided by Supermarkets/Spencers then Spencers should do better promotion for creating awareness about all offers. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report 3. 12. SuggESTiONS ANd rECOmmENdATiONS [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report 4. Suggestions and Recommendations Fast moving consumer goods (FMCG) or daily used items should be available in more number of varieties because customers of Dr. A.S. Rao Nagar complain regarding this and FMCG product should be placed near exit door as customers can purchase the daily use items at the time of exit, which can directly increase the sales of Spencers as done in other retail outlets. Most of the customers believe that stock is not updated and no offer schemes are provided by Spencers on the old stock. Same price is charged for both the fresh stock and old stock. Respondents feel offers should be provided on the old stock, as is done in other retail stores. As the majority of population at Dr. A. S. Rao Nagar area are falling into the age group of 26-35 and 18-25.Company should concentrate on the need of people falling into that category. People of Dr. A.S. Rao Nagar, say that Spencers should employ experienced

sales staff so that they can better explain the quality and features of the products. Some of the people find in-store environment of Spencers very dull, so try to maintain nice store image which attracts the customers and it works in word of mouth marketing for attracting more customers. Variety of products should be increased for better selection by the customers so that customers can choose from a huge lot of items of different companies having different features as the customers of Dr. A.S. Rao Nagar complained more regarding variety of products. Store layout should be redesigned that a customer can have easy access to the product. Spencers should provide club Spencers membership card (apart from HSBC Loyalty card), on that card one unique no. should be there and offer some point system on every purchase that will attract the customers, through that Spencers can increase its sales. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report 5. People generally search for the product on offer so the high margin product should be up fronted that mean those item should be in the eye height so that it easily catches the customers attention and generates impulse purchase. Company should try to include mens, ladies, and kids apparels segment in the Spencers daily for attracting the customers. At Dr. A.S Rao Nagar area, the percentage of family member group 5 and 4 is more. Therefore company should try to attract that family by providing family pack apparels. offer at discount rate To improve Product visualization the Company should do visual merchandising in better way. Spencers should do intensive advertisement through pamphlets, local newspaper, banners, FM Radio, Kiosks for creating more awareness. Variety of products should be increased with deep assortment for better selection by the customers so that customers can choose from huge lot of items of different companies having different features. 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. Complained and feedback should be taken care in well manner to create the loyalty and goodwill. Merchandise should be arranged properly. Company should offer competitive price with good quality of products because most of the customers visit to Supermarket for better price and quality of products. Company should give information to the customers through the marketing gimmick (sms) using database of customers. Keep high quality fruits and vegetables in the stores, employees must be courteous and friendly as most of the customer gave their preferences regarding these. Billing should be fast because customers dont want to stay in the store after purchasing the products. [ICBM-SBE] Prepared by Ajay Kumar Gupta Project Report