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CHAPTER 1 INTRODUCTION

INTRODUCTION

1.1 AN OVERVIEW OF THE STUDY Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals. In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses. It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective. Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable and representative measures of satisfaction. In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget moteleven though its facilities and service would be deemed superior in absolute terms. The importance of customer satisfaction diminishes when a firm has increased bargaining power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry that is an oligopoly, where only a few suppliers of a certain product or service exist. As such,

many cell phone plan contracts have a lot of fine print with provisions that they would never get away if there were, say, a hundred cell phone plan providers, because customer satisfaction would be way too low, and customers would easily have the option of leaving for a better contract offer. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. Customer satisfaction is measured at the individual level, but it is almost always reported at an aggregate level. It can be, and often is, measured along various dimensions. A hotel, for example, might ask customers to rate their experience with its front desk and check-in service, with the room, with the amenities in the room, with the restaurants, and so on. Additionally, in a holistic sense, the hotel might ask about overall satisfaction with your stay. As research on consumption experiences grows, evidence suggests that consumers purchase goods and services for a combination of two types of benefits: hedonic and utilitarian. Hedonic benefits are associated with the sensory and experiential attributes of the product. Utilitarian benefits of a product are associated with the more instrumental and functional attributes of the product (Batra and Athola 1990). Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products. Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation.

1.2 OBJECTIVE OF THE STUDY

Primary objective:

1) To study the satisfaction level of the customer on fruits and vegetables in SPENCERS DAILY. Secondary objective:

2) To identify the perception of satisfaction level among the customer. 3) To examine the factors influencing the fruits and vegetables in Spencers daily.

4) To measure customer satisfaction level on quality of fruits & vegetables.

5) To measure customer satisfaction level on offers. 6) To measure customer satisfaction level on assortment of fruits & vegetables.

7) To suggest better marketing strategies to improve customer relations.

1.3 SCOPE OF THE STUDY

1) It will help the Spencers to understand the level of customer happiness. 2) It will help the Spencers strength and weakness. 3) In this survey, the emphasis is on the customer satisfaction towards fruits & vegetables. 4) This research study would help the supermarkets to improve the service.

1.4 STATEMENT OF PROBLEM

To assess the customer satisfaction level towards fruits &vegetables marketing strategies for enhancement of customer happiness.

and design

This study will help the Spencers to ascertain their customer satisfaction level. Thus a research titled Study on customer satisfaction towards fruits & vegetables was carried.

1.5 RESEARCH METHODOLOGY

Research methodology is a systematic approach to solve the research problem. It can be considered as a science as new research is done scientifically. Research methodology has many dimensions and research methods are a part of it. For conducting research both primary and secondary data are required. Primary data is that which is collected for the first time and thus are original in character. Secondary data is that which is collected by some and which already have been passed through to the statistical process.

1.5.1 Research design:

A research design is an arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Fundamental to the success of any research project is the sound research design. The research design took for the study was descriptive research design.

1.5.2 SAMPLE DESIGN

Population: Population for this research is set of customers and consumers of Spencers Daily in Chennai.

Sample size: The number of samples collected by the researcher is 250 customers/consumers.

Sampling method: The sampling method used for this study is probability sampling, which is selected according to the easy and convenience of the researcher.

1.5.3 METHODS OF DATA COLLECTION Primary data: It has been collected using the structured questionnaire with personal Interviews with the customers at the stores and through personal observations.

Secondary data: It has been collected from various magazines, papers, Text books and related Websites.

1.5.4 REASERCH INSTRUMENTS The research instrument used by the researcher are questionnaire and interview schedule.

Questionnaire: Questionnaire is prepared in a well-structured so that it is easily understandable and answerable by everyone. The type of questions included in the questionnaire are close ended and likert questions.

1.Closed ended Questions: A closed ended questions, would ask the respondents to make a choices among a set of alternative questions by the researcher. 2.Likert Questions: The likert scale is designed to examine how strongly subjects agree or disagree with statements on a 5-point scale. Interview schedule: The interview method of collecting data involves presentation of oral stimuli and reply in terms of oral-verbal responses. Then the responses are filled up the questionnaire for further analysis.

STATISTICAL TEST USED The role of statistics is to function as a tool in designing research, analysis its data and drawing conclusions there from. The important statistical tools used in this analysis are; Percentage analysis and T-test.

CHAPTER 2 PROFILES

2.1 INDUSTRY PROFILE

The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the country GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry.

The total concept and idea of shopping has undergone an attention drawing change in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retailing has entered into the Retail market in India as is observed in the form of bustling shopping centers, multi-storied malls and the huge complexes that offer shopping, entertainment and food all under one roof.

A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. The growth pattern in organized retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the India Retail Industry.

In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent annually. Modern retail in India could be worth US$ 175-200 billion by 2016. The Food Retail Industry in India dominates the shopping basket. The Mobile phone Retail Industry in India is already a US$ 16.7 billion business, growing at over 20 per cent per year. The future of the India Retail Industry looks promising with the growing of the market, with the government policies becoming more favorable and the emerging technologies facilitating operations.

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STRATEGIES TRENDS AND OPPORTUNITIES 2007

Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centres, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India. .

GROWTH OF RETAIL SECTOR IN INDIA

Retail and real estate are the two booming sectors of India in the present times. And if industry experts are to be believed, the prospects of both the sectors are mutually dependent on each other. Retail, one of India largest industries, has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. Accounting for over 10 per cent of the country GDP and around eight per cent of the employment retailing in India is gradually inching its way toward becoming the next boom industry. As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large-scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India are

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Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items (CHART)

Another credible factor in the prospects of the retail sector in India is the increase in the young working population. In India, hefty pay packets, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector. These key factors have been the growth drivers of the organized retail sector in India which now boast of retailing almost all the preferences of life - Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many more. With this the retail sector in India is witnessing rejuvenation as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores.

The retailing configuration in India is fast developing as shopping malls are increasingly becoming familiar in large cities. When it comes to development of retail space specially the malls, the Tier II cities are no longer behind in the race. If development plans till 2007 is studied it shows the projection of 220 shopping malls, with 139 malls in metros and the remaining 81 in the Tier II cities. The government of states like Delhi and National Capital Region (NCR) are very upbeat about permitting the use of land for commercial development thus increasing the availability of land for retail space; thus making NCR render to 50% of the malls in India.

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India is being seen as a potential goldmine for retail investors from over the world and latest research has rated India as the top destination for retailers for an attractive emerging retail market. India vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. Even though India has well over 5 million retail outlets, the country sorely lacks anything that can resemble a retailing industry in the modern sense of the term. This presents international retailing specialists with a great opportunity. The organized retail sector is expected to grow stronger than GDP growth in the next five years driven by changing lifestyles, burgeoning income and favorable demographic outline.

INDUSTRY EVOLUTION

The emergence of the neighborhood Kirana stores catering to the convenience of the consumers

Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission

1980s experienced slow change as India began to open up economy. Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains

Later Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches

The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers.

For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books.

Post 1995 onwards saw an emergence of shopping centers Mainly in urban areas, with facilities like car parking Targeted to provide a complete destination experience for all segments of society Emergence of hyper and super markets trying to provide customer with 3 - Value, Variety and Volume

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Expanding target consumer segment: The Sachet revolution - example of reaching to the bottom of the pyramid.

At year end of 2000 the size of the Indian organized retail industry is estimated at Rs. 13,000 crore

Major Retailers in India

Pantaloon

Pantaloon is one of the biggest retailers in India with more than 450 stores across the country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the country. It's growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloon launched country's first hypermarket Big Bazaar. It has the following retail segments:

Food & Grocery: Big Bazaar, Food Bazaar Home Solutions: Hometown, Furniture Bazaar, Collection-i Consumer Electronics: e-zone Shoes: Shoe Factory Books, Music & Gifts: Depot Health & Beauty Care: Star, Sitara E-tailing: Futurebazaar.com Entertainment: Bowling Co.

TATA GROUP

Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India Landmark in 2005. Trent owns over 4 lakh sq. ft retail space across the country.

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RPG GROUP

RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy and beauty care outlets Health & Glow.

RELIANCE

Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to reach ` 90,000 crores by 2010.

AV BIRLA GROUP

AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other segments of retail. It will invest `8000-9000 crores by 2010.

RETAILING FORMAT IN INDIA Malls: The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Piramyd, and Pantaloon.

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Specialty Stores: Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.

Discount Stores: As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non-perishable goods.

Department Stores:

Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop.

Hyper marts/Supermarkets:

Large self-service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.

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Convenience Stores:

These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium. RECENT TRENDS

Retailing in India is witnessing a huge revamping exercise as can be seen in the graph India is rated the fifth most attractive emerging retail market: a potential goldmine. Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion

As per a report by KPMG the annual growth of department stores is estimated at 24% Ranked second in a Global Retail Development Index of 30 developing countries drawn up by AT Kearney.

Multiple drivers leading to a consumption boom:

o o o o

Favorable demographics Growth in income Increasing population of women Raising aspirations: Value added goods sales

Food and apparel retailing key drivers of growth Organized retailing in India has been largely an urban Phenomenon with affluent classes and growing number of double-income households. More successful in cities in the south and west of India. Reasons range from differences in consumer buying behavior to cost of real estate and taxation laws.

Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most categories of consumption
o

ITC is experimenting with retailing through its e-Choupal and Choupal Sagar rural hypermarkets.

HLL is using its Project Shakti initiative leveraging women self-help groups to explore the rural market.

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Mahamaza is leveraging technology and network marketing concepts to act as an aggregator and serve the rural markets.

IT is a tool that has been used by retailers ranging from Amazon.com to eBay to radically change buying behavior across the globe.

CHALLENGES & OPPORTUNITIES Retailing has seen such a transformation over the past decade that its very definition has undergone a sea change. No longer can a manufacturer rely on sales to take place by ensuring mere availability of his product. Today, retailing is about so much more than mere merchandising. It about casting customers in a story, reflecting their desires and aspirations, and forging long-lasting relationships. As the Indian consumer evolves they expects more and more at each and every time when they steps into a store. Retail today has changed from selling a product or a service to selling a hope, an aspiration and above all an experience that a consumer would like to repeat.

For manufacturers and service providers the emerging opportunities in urban markets seem to lie in capturing and delivering better value to the customers through retail. For instance, in Chennai CavinKare LimeLite, Marico Kaya Skin Clinic and Apollo Hospital Apollo Pharmacies are examples, to name a few, where manufacturers/service providers combine their own manufactured products and services with those of others to generate value hitherto unknown. The last mile connect seems to be increasingly lively and experiential. Also, manufacturers and service providers face an exploding rural market yet only marginally tapped due to difficulties in rural retailing. Only innovative concepts and models may survive the test of time and investments.

However, manufacturers and service providers will also increasingly face a host of specialist retailers, who are characterized by use of modern management techniques, backed with seemingly unlimited financial resources. Organized retail appears inevitable.

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Retailing in India is currently estimated to be a US$ 200 billion industry, of which organized retailing makes up a paltry 3 percent or US$ 6.4 billion. By 2010, organized retail is projected to reach US$ 23 billion. For retail industry in India, things have never looked better and brighter. Challenges to the manufacturers and service providers would abound when market power shifts to organized retail.

THE FEATURES

The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%. CONCLUSION

The retail sector has played a phenomenal role throughout the world in increasing productivity of consumer goods and services. It is also the second largest industry in US in terms of numbers of employees and establishments. There is no denying the fact that most of the developed economies are very much relying on their retail sector as a locomotive of growth. The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the country GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them.

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2.2 COMPANY 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 consumers to the concept of organized retailing, becoming the countrys first grocery chain back in 1920, and offering the joys of hypermarket shopping in 2001. A food first retailer offer both fresh and packaged foods as well as groceries. And also have a wide selection of electronics and electrical equipment, home and office essentials, garments and fashion accessories, toys, and personal care. Our awards stand testimony to our unique position. Formats As the pioneer in organized food retailing in India, the modern-day Spencers started operations back in the early 90s in South India. Spencers run more than 200 stores across35citiesinIndia. 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 consumers. 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 Consumer Goods, staples and frozen foods.

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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 least15,000 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. 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. Fruits and Vegetables. 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, we have choices, both contemporary and classic. Sporty or stylish, as you prefer. Office or occasion-specific formals, casuals for lounging or leisure, and accessories like leather

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items, junk jewelry 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. All our 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 SAVOURIES Home Essentials

Home cleaning products

Range of stationery range

Ethnic wear for women

Casual wear for both men and women

Formal wear and footwear for men

Sportwear for men and women

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Kidswear

Footwear for all

Fashion Accessories

AWARDS REID & TAYLOR, BOND WITH THE BEST,

Retail Excellence Award, Retail Icon of the Year, 2010 to Vineet Kapila

IMAGES EXCELLENCE AWARD

For Pioneering Retail in East at the East India Retail Summit Awards, 2011

RANKED 3 RD
Among the Most Trusted Brands in Retail. 2010 in the Brand Equity AC Nielson Brand Survey, 2010

RANKED 47 TH
Among Top 50 service Brands in India, 2010 in the Brand Equity AC Nielson Brand Survey, 2010

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SAP ACE AWARD

For Customer Excellence, 2010

VMRD AWARD SPENCERS WAS AWARDED THE FIRST RUNNERS-UP IN THE VISUAL MERCHANDIZING CATEGORY AT THE IN-STORE ASIA, 2009

FOOD FORUM OF INDIA

Coca Cola Golden Spoon Most Admired Food & Grocery Retailer, Convenience and Express Formats, 2008

INDIA RETAIL FORUM

Most Evolved Retailer of the Year, India Retail Forum, 2007

INDIA RETAIL FORUM

TURNAROUND RETAILER OF THE YEAR, 2006DIFFERENTIATORS

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

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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 consumers

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 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 consumers

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

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CHAPTER 3

REVIEW OF LITERATURE

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3. REVIEW OF LITERATURE

The project involves studying customers behavior with in the store and interaction with them to understand their needs and satisfaction level with the package (Product and service) offered by the company. It also deals with comparative analysis of different big retail players out in city Kolkata and finding key buying factors from customer perspective. It is very important to understand customers needs to serve them better and to understand needs management should understand key buying factors so that management could prepare themselves accordingly. Satisfying our customers is an essential element to staying in business in this modern world of global competition. We must satisfy and even delight our customers with the value of our products and services to gain their loyalty and repeat business. Customer satisfaction is therefore a primary goal of process improvement programs. So how satisfied are our customers? One of the best ways to find out is to ask them using Customer Satisfaction Surveys. These surveys can provide management with the information they need to determine their customer's level of satisfaction with their products and with the services associated with those products. Employees and the management of the store can use the survey information to identify opportunities for ongoing process improvements and to monitor the impact of those improvements. The most important construct (by mean score) was customer satisfaction, followed by corporate image and switching barriers. These results lead to suggestions for retailers to consider as to how they might improve customer retention in todays competitive retailing environment Since the results of this study are based on consumers perceptions only, future research should investigate the congruence between consumers and service providers perceptions. This will help the industry to better understand whether both consumers and retail have the same perceptions regarding issues relevant to retention.

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CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

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TABLE 4.1.1: AGE WISE CLASSIFICATION OF THE RESPONDENTS S.NO 1 2 3 4 5 6 AGE 15-25 25-35 35-45 45-55 55-65 >65 NO OF RESPONDENTS 4 85 112 44 5 NIL PERCENTAGE 1.6 34 44.8 17.6 2 -

FIGURE4.1.1: AGE WISE CLASSIFICATION OF THE RESPONDENTS

AGE LEVEL OF RESPONDENTS

% OF RESPONDENTS 50 40 30 20 10 0 15-25 25-35 35-45 45-55 55-65 >65 AGE LEVEL 1.6 2 0 44.8 34 17.6

INFERENCE From the above table its inferred that,44.8% of the respondents age of 35-45,34% of the respondents age of 25-35,17.6% of the respondents age of 55-65,and 1.6% of the respondents age of 15-25.

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TABLE 4.1.2: GENDER WISE CLASSIFICATION OF THE RESPONDENTS S.NO 1 2 GENDER MALE FEMALE NO OF RESPONDENTS 149 101 Percentage 59.6 40.4

FIGURE4.1.2: GENDER WISE CLASSIFICATION OF THE RESPONDENTS

% of the gender

40.4 59.6

MALE FEMALE

INFERENCE

From the above table its inferred that, 59.6% of the respondents are male and rest of them is female.

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TABLE4.1.3: INCOME WISE CLASSIFICATION OF THE RESPONDENTS S.NO INCOME NO.OF RESPONDENTS 5 36 63 25 35 43 PERCENTAGE

1 2 3 4 5 6

5000-10000 10000-15000 15000-20000 20000-25000 25000-30000 >30000

2 14.4 25.2 10 14 17.2

FIGURE4.1.3: INCOME WISE CLASSIFICATION OF THE RESPONDENTS

INCOME LEVEL OF RESPONDENTS

% OF RESPONDENTS
30 25 20 15 10 5 0 25.2 14.4 10 2 14 17.2

INCOME LEVEL

INFERENCE From the above table its inferred that, 25.2% of the respondents have their income from 15000-20000, 17.2% of the respondents have their income is above 30000, 14.4% of the respondents have their income from 10000-15000, 14% of the respondents have their income from 25000-30000 and 10% of the respondents have their income from 20000-25000 respectively.

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TABLE 4.1.4: ANALYSIS OF RESPONDENTS BASED ON FREQUENCY OF PURCHASE

S.NO 1 2 3 4

TIME PERIOD DAILY TWICE A WEEK WEEKLY MONTHLY

NO.OF RESPONDENTS 23 34 128 65

PERCENTAGE 10 13 51 26

FIGURE 4.1.4 : ANALYSIS OF RESPONDENTS BASED ON FREQUENCY OF PURCHASE

FREQUENCY OF PURCHASING
10 26 13 DAILY TWICE A WEEK WEEKLY MONTHLY 51

INFERENCE From the above table its inferred that,51% of the respondents are visit Spencers store weekly,26% of the respondents visit monthly,13% of the respondents visit twice a week, and 10% of the respondents visit daily.

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TABLE4.1.5: ANALYSIS OF RESPONDENTS BASED ON AVERAGE EXPENSE

S.NO 1 2 3 4

AMOUNT 500-1000 1000-5000 5000-10000 >10000

NO.OF RESPONDENTS 62 155 33 NIL

PERCENTAGE 24.8 62 13.2 -

FIGURE4.1.5: ANALYSIS OF RESPONDENTS BASED ON AVERAGE EXPENSE

AVERAGE EXPENSE OF RESPONDENTS

70 60 50 40 30 20 10 0 62

% OF RESPONDENTS

24.8 13.2 0 500-1000 1000-5000 5000-10000 >10000

AMOUNT

INFERENCE

From the above table its inferred that,62% of the respondents monthly spend average amount from 1000-5000,24.8% of the respondents spend monthly spend average amount from 500-1000 and 13.2% of the respondents spend monthly spend average amount from 5000-10000 respectively.

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TABLE4.1.6: ANALYSIS OF RESPONDENTS BASED ON AWARENESS OF WEEKEND OFFER

S.NO 1 2

RESPONDENTS YES NO

NO.OF RESPONDENTS 186 64

PERCENTAGE 74.4 25.6

FIGURE4.1.6 : ANALYSIS OF RESPONDENTS BASED ON AWARENESS OF WEEKEND OFFER

AWARENESS LEVEL

25.6 YES NO 74.4

INFERENCE

From the above table its inferred that,74.4% of the respondents says yes and rest of the respondents are says No.

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TABLE 4.1.7: ANALYSIS OF RESPONDENTS BASED ON SOURCE OF AWARENESS S.NO 1 2 3 4 5 PARTICULARS OFFER LEAFLETS NEIGHBORS NEWSPAPERS SMS OTHERS NO OF RESPONDENTS 110 60 35 20 25 PERCENTAGE 44 24 14 8 10

FIGURE4.1.7: ANALYSIS OF RESPONDENTS BASED ON SOURCE OF AWARENESS

10 8 44 14 OFFER LEAFLETS NEIGHBORS NEWSPAPERS SMS OTHERS 24

INFERENCE

From the above table its inferred that,44% of the respondents come to know this offer by offerleaflets,24% of the respondents come to know through neighbors,14% of the respondents come to know through newspapers and 8% of the respondents come to know by sms.

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TABLE 4.1.8: ANALYSIS OF RESPONDENTS BASED ON STORE LOCATION

S.NO 1 2

PARTICULARS Yes No

NO OF RESPONDENTS 195 55

Percentage 78 22

FIGURE4.1.8: ANALYSIS OF RESPONDENTS BASED ON STORE LOCATION

Store Conveniently located

22

Yes No

78

INFERENCE

Out of the 250 survey its inferred that, 78% of the respondents are says that store located conveniently place and 22% of the respondents are says that they are not comfortable with store location.

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TABLE 4.1.9: ANALYSIS OF RESPONDENTS BASED ON LEVEL OF SATISFACTION ON COST

S.NO 1 2

Respondents Yes No

No of respondents 200 50

Percentage 80 20

FIGURE4.1.9: ANALYSIS OF RESPONDENTS BASED ON LEVEL OF SATISFACTION ON COST

SATISFACTION LEVEL ON COST

80 % OF RESPONDENTS 80 60 40 20 0 Yes SATISFACTION LEVEL No 20

INFERENCE Out of the 250 survey its inferred that, 80% of the respondents are satisfied with the cost of the food and accommodation and remaining 20% of the respondents are dissatisfied with the cost of the food and accommodation. It is because of the less quantity and take more time.

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TABLE 4.1.10: ANALYSIS OF RESPONDENTS BASED ON LEVEL OF SATISFACTION ON ASSORTMENT

S.NO 1 2

Respondents Yes No

No of respondents 190 60

Percentage 76 24

FIGURE 4.1.10 ANALYSIS OF RESPONDENTS BASED ON LEVEL OF SATISFACTION ON ASSORTMENT

SATISFACTION LEVEL ON ASSORTMENT

24 Yes 76 No

INFERENCE From the above table its inferred that, 76% of the respondents say that they are satisfied with the assortment and 24% of the respondents say that they are dissatisfied with assortment.

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TABLE 4.2.1: One sample T-test for analyzing Satisfaction Level of customers based on Quality

H 0 : The satisfaction level of customers is at average level. H 1 : The satisfaction level of customers is not at average level.

TABLE 4.2 Satisfaction Level customers based on quality

Level of satisfaction

Sample size

Mean

Standard deviation

T value

P Value

Quality

250

1.98

0.999

0.316

0.752

INFERENCE

Since P value is greater than 0.05 , the null hypothesis is accepted at 5 % level of significance. Hence we can conclude that the satisfaction level of customers is at average level.

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TABLE 4.2.2: One sample T-test for analyzing Satisfaction Level of customers based on Offers

H 0 : The satisfaction level of customers is at average level. H 1 : The satisfaction level of customers is not at average level.

TABLE 4.2.2: Satisfaction Level of customers based on Offers

Level of satisfaction

Sample size

Mean

Standard deviation

T value

P Value

Offers

250

1.94

0.860

1.103

0.271

INFERENCE Since P value is greater than 0.05 , the null hypothesis is accepted at 5 % level of significance. Hence we can conclude that the satisfaction level of customers is at average level.

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CHAPTER 5 FINAL DISCUSSION

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5.1 FINDINGS

1) In the study it was found that nearly 59.6% of the respondents were male and rest o the respondents were female.

2) In the study it was found that nearly 44.8% of the respondents were age group between 35- 45 and 34 % of the respondents were age group between 25-35.

3) In the study it was found that nearly 25.2% of the respondents were income between from 15000-20000, 17.2% of the respondents were above 30000. . 4) In the study it was found that nearly 51% of the respondents have visited in SPENCERS weekly and 26% of the respondents have visited in monthly.

5) In the study it was found that nearly 62% of the respondents were spend between from 10005000 and 24.8% of the respondents were spend between from 500-1000.

6) In the study it was found that nearly 74.4% of the respondents were aware of weekend offer and rest of the respondents were not aware about weekend offer.

7) In the study it was found that nearly 78% of the respondents were conveniently located and 22% of the respondents were inconveniently located.

8) In the study it was found that nearly 58% of the respondents were satisfied with the quality of fruits & vegetables and 32% of the respondents were highly satisfied with the quality.

9) In the study it was found that nearly 80% of the respondents were satisfied with the cost of fruits & vegetables and rest of the respondents were dissatisfied with the cost.

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10) In the study it was found that nearly 41.2% of the respondents were satisfied with the quality of fruits & vegetables .

11) In the study it was found that nearly 76% of the respondents were satisfied with variety of fruits & vegetables rest of the respondents were dissatisfied with variety of fruits & vegetables.

12) In the study it was found that nearly 54% of the respondents were agree with special offers 30% of the respondents were highly agree with special offers.

5.2 Limitations of the Study:

The study is carried out in few Spencers store. The collection of the data through questionnaire also limits the study, as the respondents are allowed to answer the questions in an objective way i.e., to answer close ended questions only.

Quality of information is dependent on the knowledge of the respondent. The study has been carried out in a limited period of 30 days, so there is time constraint.

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5.3 CONCLUSION

1) My project title is customer satisfaction towards fruits & vegetables, and its procedures thus to increase the expectation of the customer to get it. The project is more useful for SPENCERS DAILY as the analysis has brought out the customer relationship.

2) Here descriptive research was undertaken for the study and survey method was adopted to collect the primary data. A structured questionnaire was used as a research tools to collect the primary data. The data were analyzed with help of tables, chart and statistical tools. 3) Still many customers visit Spencers and they expect variety of good (f & v) and quality . So we need to concentrate on these two major areas. It can increase profit and gain, goodwill and reputation.

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5.4 SUGGESTIONS

1) The few respondents are not aware about weekend offers. It is because of lack of advertisement.

2) Some of the respondents are dissatisfied with the cost of the fruits & vegetables. It is because of less quantity. 3) The advertisement is very important to increase profit and gain, goodwill and reputation. 4) Since most of the respondents are dissatisfied with variety of goods. It is because of inadequate variety of goods. 5) The festival time to introduce variety of goods and service to the customer in low price. It is more beneficial to the company.

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APPENDICES AND BIBLIOGRAPHY

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BIBLIOGRAPHY:

Kothari, C.R. Research Methodology Methods & Techniques, New Delhi, New Age International (P) Ltd., Publishers, Second Edition, 2004. Philip Kotler and Levin Lane Keller, Marketing Management, 13th edition PHI Learning Private limited. Uma sekaran,Research Methods for Business,Wiley and sons Inc,fourth edition 2007.

REFERENCES:

www.spencersRetail.com www.rpggroup.com www.wikipedia.org www.scribd.com

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CUSTOMER SATISFACTION SURVEY

1. Name: ph.no.

2. Gender:

Male

Female

3. Age (in years) a) 15 24 e) 55 64 b) 25 34 f) >64 c) 35 44 d) 45 54

4. Income Level ( Rs./month ) a) 5000 10000 d) 20000 25000 b) 10000- 15000 e) 25000 30000 c) 15000 20000 f) > 30000

5. How often you visit Spencers Daily ? a) Daily b) Twice a week... c) Weekly. d) Monthly

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6. How much do you spend monthly on an average at Spencers Daily? a) 500 1000 b) 1000- 5000 c) 5000 10000 d) >10000

7. Are you aware of buthan santhai & weekend Offers at spencers store?

a) Yes

b) No

8. IF YES, how did you come to know about these offers?

a) Offer leaflets

b) Neighbors

c) Newspapers

d) SMS

e) Others

9. Is the Spencers store location conveniently? a) Yes b) No

10. Are you satisfied with the cost of the fruits and vegetables? a) Yes b) No

11.Are you satisfied with quality of fruits and vegetables? a) Highly satisfied d) Dissatisfied b) Satisfied e) highly dissatisfied c) Neutral

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12.Are you satisfied with variety of fruits and vegetables? a)Yes b)No

13. Is Spencers store provide special offers? a) Strongly agree d) Disagree b) Agree c) Neutral

e) strongly disagree