CHAPTER- 1

1.1 INDUSTRY PROFILE

RETAIL INDUSTRY IN INDIA
The Indian retail industry has emerged as one of the most dynamic and fast-growing
industries due to the entry of several new players in the recent times along with rising
income levels, growing aspirations, favourable demographics and easy credit availability. It
constitutes over 10% of the country’s Gross Domestic Product (GDP) and around 8% of
the employment and is valued at USD 672 billion. Globally, India is fifth-largest global
destination in the retail space and is growing at a rate of 12% per annum. Over the last two
decades, the size, scope and complexity of retailing has undergone considerable change.
The retail industry can broadly be classified into two categories: Organized and
Unorganized.
Thought the market has been dominated by unorganized players, the entry of domestic and
international organized players is set to change the scenario.

Organised Retail: Oranised retail is characterised by high investment requirements, large

premises, trained staff where retailers are licensed and are registered to pay taxes to the
government.

Unorganized Retail: Unoranized retail refers to the traditional form of retail often situated
near residential areas. It is generally characterized by low rentals, low tax payouts with a
majority of it being ownermanaged and employing personal capital. It includes formidable
mix of conventional Kirana shops, general stores, mom-&-pop stores, paan-beedi shops
and other small retail outlets. Currently, organised retail market is valued at about USD 60
billion, only about 9% of the sector, where as unorganized retail market holds the rest.
India's organised retail penetration is much lower compared with other countries, such as
the United States which has organised retail sector penetration of 85%.

1
 Fig : 1 (Indian retail industry)

 Indian retail one of the fastest growing markets in the world due to economic
growth.
 India is the world’s fifth largest global destination in the retail space.
 Retail market in India is projected to grow from an estimated US$ 795 billion in
2017 to US$ 1,200 billion in 2021F.
 India’s retail sector investments doubled to reach Rs 1,300 crore (US$ 180.18
million) in 2018.
 The Indian retail industry is one of the fastest growing in the world. Retail industry
in India is expected to grow to US$ 1,200 billion by 2021 from US$ 672 billion in
2017
 ndia’s population is taking to online retail in a big way. Online retail sale is
forecasted to grow at the rate of 31 per cent to reach US$ 32.70 billion in 2018@.
 Revenue generated from online retail is projected to grow to US$ 60 billion by
2020.
 Organised retail penetration is expected to increase to 18 per cent in 2021 from an
estimated nine per cent in 2017.
 India is expected to become the world's third-largest consumer economy, reaching
US$ 400 billion in consumption by 2025.

2
TRENDS IN INDIAN RETAIL SECTOR:
Department stores : Department stores are general merchandisers. They offer to the
customers mid- to high-quality products. Though they sell general goods, some department
stores sell only a select line of products. Examples in India would include stores like
"Westside" and "Lifestyle"--popular department stores.

Malls : One of the most popular and most visited retail formats in India is the mall. These
are the largest retail format in India. Malls provide everything that a person wants to buy,
all under one roof. From clothes and accessories to food or cinemas, malls provide all of
this, and more. Examples include Spencers Plaza in Chennai, India, or the Forum Mall in
Bangalore.Mallsare the largest retail format in India

Supermarkets : One of the other popular retail formats in India is the supermarkets. A
supermarket is a grocery store that sells food and household goods. They are large, most
often self-service and offer a huge variety of products. People head to supermarkets when
they need to stock up on groceries and other items. They provide products for reasonable
prices, and of mid to high quality.

Street vendors : Street vendors, or hawkers who sell goods on the streets, are quite popular
in India. Through shouting out their wares, they draw the attention of customers. Street
vendors are found in almost every city in India, and the business capital of Mumbai has a
number of shopping areas comprised solely of street vendors. These hawkers sell not just
clothes and accessories, but also local food.

Hypermarkets : Similar to supermarkets, hypermarkets in India are a combination of

supermarket and department store. These are large retailers that provide all kinds of
groceries and general goods. Saravana Stores in Chennai, Big Bazaar and Reliance Fresh
are hypermarkets that draw enormous crowds.

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Information Technology in Retail
I.T. in Retail Over the years as the consumer demand increased and the retailers geared up
to meet this increase, technology evolved rapidly to support this growth. The hardware and
software tools that have now become almost essential for retailing can be divided into 3
broad categories

I.T. IN RETAIL

Customer Operation Strategic

Interfacing Support Decision Support
Systems Systems Systems
Fig : 2( Information Technology in Retail)

Customer Interfacing Systems

Bar Coding and Scanners : Point of sale systems use scanners and bar coding to identify
an item, use pre-stored data to calculate the cost and generate the total bill for a client.
Tunnel Scanning is a new concept where the consumer pushes the full shopping cart
through an electronic gate to the point of sale. In a matter of seconds, the items in the cart
are hit with laser beams and scanned. All that the consumer has to do is to pay for the
goods.

Payments : Payment through credit cards has become quite widespread and this enables a
fast and easy payment process. Electronic cheque conversion, a recent development in this
area, processes a cheque electronically by transmitting transaction information to the
retailer and consumer's bank. Rather than manually process a cheque, the retailer voids it
and hands it back to the consumer along with a receipt, having digitally captured and stored
and image of the cheque, which makes the process very fast.

Internet : Internet is also rapidly evolving as a customer interface, removing the need of a
consumer physically visiting the store.

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Operation Support Systems
ERP System : Various ERP vendors have developed retail-specific systems which help in
integrating all the functions from warehousing to distribution, front and back office store
systems and merchandising. An integrated supply chain helps the retailer in maintaining his
stocks, getting his supplies on time, preventing stock-outs and thus reducing his costs,
while servicing the customer better.

CRM Systems : The rise of loyalty programs, mail order and the Internet has provided
retailers with real access to consumer data. Data warehousing & mining technologies offers
retailers the tools they need to make sense of their consumer data and apply it to business.
This, along with the various available CRM (Customer Relationship Management)
Systems, allows the retailers to study the purchase behavior of consumers in detail and
grow the value of individual consumers to their businesses.

Advanced Planning and Scheduling Systems : APS systems can provide improved
control across the supply chain, all the way from raw material suppliers right through to the
retail shelf. These APS packages complement existing (but often limited) ERP packages.
They enable consolidation of activities such as long term budgeting, monthly forecasting,
weekly factory scheduling and daily distribution scheduling into one overall planning
process using a single set of data. Leading manufactures, distributors and retailers and
considering APS packages such as those from i2, Manugistics, Bann, Mercial incs and
Sterling-Douglas.
Strategic Decision Support Systems
Store Site Location : Demographics and buying patterns of residents of an area can be
used to compare various possible sites for opening new stores. Today, software packages
are helping retailers not only in their locational decisions but in decisions regarding store
sizing and floor-spaces as well.

Visual Merchandising : The decision on how to place & stack items in a store is no more
taken on the gut feel of the store manager. A larger number of visual merchandising tools
are available to him to evaluate the impact of his stacking options.

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EXECUTIVE SUMMARY OF INDIAN RETAIL MARKET
 Robust consumption, rural markets to augment FMCG market.
 FMCG market expected to increase to US$ 103.7 billion by 2020 from Rs 3.4 lakh
crore (US$ 52.75 billion) in FY2018.

Table 1 : (FMCG Market in india)

 Increasing participation from foreign and private players to boost retail

infrastructure.
 India's online retail sector grows 23 per cent to US$ 17.8 billion in
2017.
 Online retail sales is forecasted to grow at the rate of 31 per cent year-
on-year to reach US$ 32.70 billion in 2018.
 Revenue generated from online retail is projected to grow to US$ 60
billion by 2020

Table 2 : (Revenue from online retail in india)

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1.2 COMPANY PROFILE
Introduction:
Retailing consists of those business activities involved in the sale of goods and
services to consumers for their personal, family, or household use. Retailing comprises of
four elements customer orientation, coordinated effort, value-driven, and goal orientation.
The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or
sheds a small piece from something. Retailing is the set of activities that markets products
or services to final consumers for their own personal or household use. It does this by
organizing their availability on a relatively large scale and supplying them to customers on
a relatively small scale. Retailer is a Person or Agent or Agency or Company or
Organization who is instrumental in reaching the Goods or Merchandise or Services to the
End User or Ultimate Consumer.
SPAR HYPERMARKET INDIA PRIVATE LIMITED

Fig :3 (spar hypermarket logo)

SPAR is the world’s largest independent food retail chain which operates on the
principle of a ‘Co - operative of Independent Retailers and Wholesalers’ and is present
in 48 countries with 13,112 stores and meets the needs of over 13.5 million consumers
every day.

SPAR Hypermarkets in India is the result of a license agreement between Dubai based
Landmark Group’s Max Hypermarket India Pvt. Ltd. and SPAR International. Max
Hypermarket has a total of 25 stores pan India and has stores currently in Bangalore,

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Chennai, Coimbatore, Hyderabad, Ghaziabad, Gurgaon, Hyderabad, Mangalore and
New Delhi

Shoppers have the option to choose from a wide variety of quality products in every
category. SPAR offers the freshest quality, widest choice, great value for money and
personalized, friendly service all packaged to create a truly enjoyable shopping
experience.

SPAR Hypermarkets - Live Better. Spend Less.(Tag line)

SPAR is the world's largest food store chain with over 12000 stores in 38 countries across
4 continents and meets the needs of over 10 million consumers every day. SPAR
Hypermarkets and supermarkets in India is the result of a license agreement between the
Dubai based Landmark Group's Max Hypermarkets India Pvt. Ltd. and SPAR
International. SPAR is the world's largest independent food retail chain which operates on
the principle of a 'Co - operative of Independent Retailers and Wholesalers.'

Customers have the option to choose from a wide variety of quality products in every
category ranging from grocery, fruits and vegetables, bakery, dairy, meat, poultry and fish,
wine, beer and spirits, home textiles, personal care, crockery utensils, plastics and kitchen
appliances, electronics and IT accessories and much more. SPAR promises to elevate
shopping from a daily chore to a world class shopping experience that also offers value for
money. SPAR's retail philosophy is to provide freshness, choice, value and service to its
customers

SPAR promises to elevate shopping from a daily chore to a world class shopping
experience that also offers value for money. SPAR offers the freshest quality, widest
choice, great value for money and personalized, friendly service all packaged to create a
truly enjoyable shopping experience. SPAR's tag line "Live Better. Spend Less" epitomizes
this philosophy.

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SPAR assures excellent value for money throughout the year. The stores have a
"Everything Below MRP" concept. This simply means that SPAR offers the customer
prices which are a minimum of 4% and more below the actual MRP of the products. The
customer therefore is able to save a substantial amount on his groceries and regular
monthly shopping. SPAR also has Best Deals that run every fortnight and offer the
customer the best bargains. In conjunction with the Landmark Group's corporate loyalty
programme, SPAR launched The Inner Circle, a loyalty program for its customers in
March 2009 which offers shopping and saving benefits in all stores across the group.

In addition to freshness, choice and value, SPAR also assures world class service. Wide
aisles for easy and seamless trolley movement, from entrance to the parking area, fast
billing process at the numerous billing tills and even small details like the token system at
the fish counter where consumers get freshly cut and cleaned fish, packaged in ice.

Max Hypermarket India Pvt. Ltd. currently operates 25 stores in 9 locations. These cities
are Bangalore, Mangalore, Coimbatore, Hyderabad, Delhi, Ghaziabad, Gurgaon, Chennai
and Pune. The average hypermarket size is 50,000 sft. The company will be opening on an
average 5 stores a year over the next few years.

Landmark Group – Key Facts

 An International , diversified, retail conglomerate

 Founded in 1973 in Bahrain

 The Group operates over 2400 stores

 Retail presence of over 30 million sq. ft. across Middle East, India, Egypt, Turkey,
Yemen, Jordan, Sudan, Lebanon, Libya, Kenya and Pakistan

 More than 55,000 employees Globally

 One of the group companies, Max Hypermarket India Pvt Ltd operates Spar
Hypermarkets in India

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 The Group has a presence across the retail categories of:

1. Fashion, clothing and garments

2. Kids wear ,toys and baby needs

3. Home furniture and furnishings

4. Electronics

5. Cosmetics

6. Accessories and footwear

7. Hospitality & Health

8. Food & Grocery.

1.3 VISION, MISSION

Vision
To be the most exciting, innovative and sought-after retail brand worldwide.

Mission
Our mission is to ensure that SPAR remains the world’s leading food voluntary retail
chain. We continue to grow our brand, our presence and our partners by enhancing the
competitiveness, productivity and profitability of our retail and wholesale partners
worldwide.

Core Values

 Passion for excellence

 Integrity in everything we do
 Empowering people to strive and deliver
 Adapting to changing market and consumer needs

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1.4 OBJECTIVES OF THE ORGANIZATION:
 The central objective business for earlier businesses of Spar hypermarket was to
bring in stability and consolidation.
 The dominant theme for business of Spar hypermarket is speed and imagination.
 Design management is helping to position the customer at the center of every
decision.

1.5 OBJECTIVES OF STUDYING THE ORGANIZATION:

 To identify the people who are the customers of Spar hypermarket .
 To identify the customer satisfaction level among the customers related to the
product supplied by the Spar hypermarket .
 To know about the expectations of the customers regarding any improvements in a
particular area in Spar hypermarket .
 To study, access and analyze the overall behavioral pattern of the customers of Spar
hypermarket .
 To identify the consumers buying behavior at Spar hypermarket

1.6 BUSINESS VOLUME

AREA OF OPERATION
Max Hypermarket India Pvt. Ltd. currently operates 25 stores in 9 locations. These cities
are Bangalore, Mangalore, Coimbator d.The average hypermarket size is 50,000 sft. The
company will be opening on an average 5 stores a year over the next few years.

ABOUT THE SPAR HYPERMARKET:

 Total Number of Outlets – 12000
 Number of countries covered – 40
 Retail space under use 50,000 square feet
 Employee Strength – 3,50,000

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1.6 PRODUCT PROFILE
 Food court
 Fruits & Vegetables
 Bakery Items
 Stainless Steel Utensils
 Plastics
 Crockery
 Cosmetics
 Herbal
 Confectionery
 Non-Food Dept

DEPARTMENT
 General Books
 Children Stationary
 Office Stationary
 Games

NBD (NEW BUSINESS DEVELOPMENT)

 Gift items
 Car & Motor Cycle Covers
 Helmets
 Scents & Perfumes
 Home Decor
 Auto accessories

TOYS AND SPORTS DEPT

 Soft Toys
 Hard Toys

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HOME LINE
 Bed Sheets, Pillows, Bed Spreads
 Towels, Yellow dust
 Carpets, Cushion Covers
 Chair Bags

CLOTHES DEPT
 Ladies saris
 Girls Dress Materials
 Kids Wear
 Men’s Formals & Casuals Wears
 Men’s Accessories
 Luggage
 Home Appliances

1.7 COMPETITOR IN INDIA

Reliance Fresh is the convenience store format which forms

a part of Reliance Retail Ltd (RRL) of its parent company, Reliance Industries Ltd (RIL).
RRL was set up in the year 2006 to lead Reliance Group's foray into organized retail.
Presently, it has grown into an organization that caters to millions of customers, thousands
of farmers and vend...

13
 Spencer’s Retail has been part of the Indian retail landscape
since 1863 and was originally set up by Mr John William Spencer. It acquired Indian
ownership in the 1960s, and became part of the RPG Group in 1989. Since inception,
Spencer’s has been a consumer-centric brand, constantly innovating, pioneering formats,
evolving over time.

Fabindia is India's largest private platform for products that are made from
traditional techniques, skills and hand-based processes. It started as a wholesale export
company and has since successfully established itself as a major retail player in the Indian
market. Fabindia's first retail store opened in New Delhi in 1976. Today, Fabindia has 17.

The company’s leading formats include Pantaloons, a chain of fashion

outlets, Spar hypermarket , a uniquely Indian hypermarket chain, Food Bazaar, a
supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of
modern retail like choice, convenience and quality and Central, a chain of seamless
destination mall

14
 CHAPTER – 2
STRUCTURE OF THE ORGANIZATION
2.1 ORGANIZATION STRUCTURE

Following is organizational hierarchy of SPAR HYPERMARKET

15
2.2 DUTIES AND RESPONSIBILITIES
DUTIES OF DEPARTMENT HEAD:
Department Heads are in charge of an academic department. They oversee the
implementation of strategic polices and work towards the advancement of that unit. They
continually assess the performance of the department and its members and contribute to the
modification of educational plans. They also manage the department budgets and
expenditures. They work towards effective dispersion of funds and prioritization of
projects.
Some Department Heads may even continue their teaching duties, working with students
and preparing lessons. They receive good remuneration and work normal office hours.
A Department Head usually performs many of the following tasks:
 Setting budgets
 Translating strategic goals
 Proposing departmental changes
 Managing staff
 Conducting research
 Adhering to statutory compliance
 Managing resources
 Attending and hosting meetings

RESPONSIBILITIES OF DEPARTMENT HEAD:

 Provide direction to Managers in planning and executing assigned projects.
 Work with Managers to support new business development opportunities.
 Develop best practices to achieve department goals.
 Ensure that all staffs follow department policies and procedures.
 Analyze any department related issues and provide immediate resolutions.
 Organize trainings to improve technical skills of department staffs.
 Assist in employee recruitment, performance evaluation, promotion, retention and
termination activities.
 Schedule regular client and department meetings.

16
  Build productive and long term relationships with customers.
 Maintain existing customer base and identify and develop new customers
 Ensure service levels meet or exceed customer expectations.
 Address employee grievances and build positive working environment for
employees.
 Develop department budgets and establish cost-reduction initiatives.

DIRECTOR’S RESPONSIBILITY STATEMENT

Pursuant to the requirements of Section 134(5) of the Act, the Board of Directors of the
Company hereby confirms that:
 In the preparation of the annual accounts for the financial year ended March 31,
2018, the applicable accounting standards have been followed along with proper
explanation relating to material departures.
 The Directors have selected such accounting policies and applied them consistently
and made judgments and estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company at the end of the financial
year and of the profit of the Company for the year ended March 31, 2018.
 The Directors have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other
irregularities.
 The Directors have prepared the annual accounts for the financial year ended March
31, 2018 on a going concern basis.
 The Directors further state that they have laid down internal financial controls to be
followed by the Company and that such internal financial controls are adequate and
were operating effectively.

The Directors have devised proper systems to ensure compliance with the provisions of all
applica

17
 CHAPTER-3
FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION
3.1 FINANCE DEPARTMENT
Finance plays a very important role in the day-to-day lives of each individual or
corporation. The importance of finance management is such that no one can ignore it and
so, here is an attempt to make you aware about the importance of finance in an economy,
and how good is financial health of the economy important for your well-being.

The finance department in this company is of utmost importance as they are responsible for
financial planning ensuring that adequate funds are available for achieving the objectives of
the organization. Moreover, it is the finance department which makes sure that the prices
are controlled, besides looking after the cash flow and controlling profitability levels. One
of the most important jobs of the finance department of this company is to identify the
necessary financial information which should be revealed to managers so that they can
make informed decisions and judgments. The department is also responsible for making
financial documents and preparing the final accounts so that they can be presented in the
annual general meetings of this company.

Here all the activities will be done under the control of the finance manager. Mostly in
every organization the expenses will somewhat in an equal ratio. But in this Company 90%
expenses is for purchasing and the remaining 10% is for the other administrative expenses.
These accounts will be maintained by the finance department. Nearly five to seven
employees are working in this department to maintain the accounts.

The following are some of the activities taken place in the finance department.

 Accounting policies Adopted & Management Accounting Information system in

place.
 Business plan and its preparation techniques.
 Costing – Applications – Records maintained – Ascertaining the Cost of product or
service

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  Investment Decisions, capital structure & cost of capital.

SPAR Group Financial Results for the First Quarter Ended March 31, 2019

 Revenue for the first quarter of 2019 increased $2.6 million, or 5 percent, to $57.2
million. International operations contributed $2.3 million of the increase.
Domestic operations contributed $300,000 of the year-over-year revenue growth.
 Operating income for the first quarter increased $1 million to $1.7 million,
compared to $730,000 for the same period last year. The increase in operating
income was primarily driven by domestic operations.
 Net income attributable to SPAR Group for the first quarter of 2019 was $619,000,
or $0.03 per diluted share, compared to a net income of $124,000, or $0.01 per
diluted share, during the first quarter of 2018.
 As highlighted in the GAAP reconciliation table below, Adjusted-EBITDA for the
first quarter of 2019 increased 71.5% to $2.3 million, compared to EBITDA of $1.3
million during the same period last year. Domestic operations delivered $900,000
of the increase.

Financial Results by Geography (in 000's)

Three Months Ended March 31, %

Revenue: 2019 2018 Change

International $ 38,503 $ 36,210 6.3%

Domestic 18,657 18,369 1.6%

Total $ 57,160 $ 54,579 4.7%

Operating Income: 2019 2018 Change

International $ 976 $ 1,050 (7.0%)

Domestic 757 (320) Nmf

Total $ 1,733 $ 730 137.4%

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 Three Months Ended March 31, %

Net Income (loss): 2019 2018 Change

International $ 219 $ 387 (43.4%)

Domestic 400 (263) nmf

Total $ 619 $ 124 399.2%

Earnings Per Basic and Diluted share:

$ 0.03 $ 0.01

Three Months Ended March 31, %

Adjusted EBITDA: 2019 2018 Change

International $ 1,115 $ 1,210 (7.9%)

Domestic 1,191 134 nmf

Total $ 2,306 $ 1,344 71.5%

Table:3 (Financial statement)

“As expected, we delivered significant improvements in first quarter financial results with
solid growth on the top line and more than a two-fold improvement in profitability.
Strategic changes to reposition SPAR, which include overhauling our labor platform,
realigning our sales and marketing efforts and improving our technologies, were
responsible for the improvement in our domestic financial results and are becoming the
foundation for continued profitable growth. First quarter international revenue increased
7%, driven by continued growth in Brazil and Japan. While profitability was down slightly
versus last year, we expect efficiency initiatives combined with a revenue mix shift to drive
improvements in international profitability,” said Chief Executive Officer, Christiaan
Olivier. “Positive momentum exiting the first quarter has carried over into the first half of
the second quarter. Our pipeline of business opportunities is strong, and we expect
continued revenue growth during 2019. As we gain further benefit from strategic changes,
we expect even stronger growth in profitability.”

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Gross Margin:

Three Months Ended March 31, Basis Point

2019 2018 Change

International 15.4% 15.0% 36

Domestic 25.2% 23.3% 191

Total 18.6% 17.8% 78

Table: 4 (Gross Margin)

Operating Income as a % of Sales:

Three Months Ended March 31, Basis Point

2019 2018 Change

International 2.5% 2.9% (40)

Domestic 4.1% (1.7)% 590

Total 3.0% 1.3% 169

Table :5 (Operating Income)

All international subsidiaries, with the exception of India, Australia, and Canada,
experienced gross profit margin improvement in the first three months of 2019 compared to
the same period last year.

The increase in domestic gross profit margin compared to the same period last year was
due to a shift in our labor platform in the later part of 2018 and a more favorable mix of
margin project work year over year.

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Balance Sheet as of March 31, 2019
At March 31, 2019, cash and cash equivalents totaled $7.1 million. Working capital was
$12.2 million and current ratio was 1.3 to 1. Total current assets and total assets were $57.4
million and $77.0 million, respectively. Total liabilities were $51.1 million and total equity
was $26.0 million at March 31, 2019

3.2 MARKETING DEPARTMENT

Marketing is “the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large”.

The marketing department must act as a guide and lead the company's other departments in
developing, producing, fulfilling, and servicing products or services for their customers.
Communication is vital. The marketing department typically has a better understanding of
the market and customer needs, but should not act independently of product development
or customer service. Marketing should be involved, and there should be a meeting of the
minds, whenever discussions are held regarding new product development or any
customer-related function of the company.

In this company the marketing activities will look after by the marketing manager and the
entire control will be with the Managing Director of the Company. The vehicles of the
company will be sent to various districts to collect the sea materials. There they will
purchase them by bargaining. A fixed rate of amount will be fixed by the MD of the
company and the marketing manager should not exceed the fixed rate. Then after the
completion of entire production and storage activities, the products are exported to various
countries in different brand names.
The products are exported to Japan by using the sea route. First it reaches Srilanka and then
from there it will be sent to Japan. For that they will get a letter of credit. Totally it will
take 40 days to move the products from Tuticorin to Japan.
In case of unexpected incidents, the company can claim the amount.

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 MARKETING MIX

Fig 4( Marketing mix)

PRODUCT

Fig 5 (product mix)

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PRICE

o The price is a key element of marketing mix

o Because it represents on a unit basic what the company receives for the product or
services which is being marketed
o In other words,price represents revenue while the other element are cost
o Price will be kept lowest in order to attract huge customers
o Reasonable
o Sales term
o Credit term

PLACE
o Convinient – Easy for the customer to acess
o Strategic location
o Approachable destination
o Generally located at high street/family entertaiment centers

PROMOTION
o ADVERTISING
o Newspaper
o Television advt
o Radio ads
o Pamphlets

SALES PROMOTION SCHEMES

 Discount (10%-50%)

 Offers( buy 2 get 1 free, weekends offers, Special days/Season offers)

 Free samples ( for food iteams )

 Guarantee-Warranty

 Bundling

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  Gifts @ Purchase of more than 10000

 Birthday bonus points

3.3 HUMAN RESOURCE DEPARTMENT

Human resource management (HRM or simply HR) is the management of
an organization’s workforce, or human resources. It is responsible for
the attraction, selection, training, assessment, and rewarding of employees, while also
overseeing organizational leadership and culture, and ensuring compliance
with employment and labor laws. In circumstances where employees desire and are legally
authorized to hold a collective bargaining agreement, HR will typically also serve as the
company's primary liaison with the employees' representatives

RECRUITMENT AND SELECTION

“Recruitment is the process of searching the candidates for employment and
stimulating them to apply for jobs in the organization WHEREAS selection involves the
series of steps by which the candidates are screened for choosing the most suitable persons
for vacant posts”.

The recruitment process is one of the critical processes since the success of any
organization lies on the hands of the employees. While recruiting the employees, the
Managing Director, the HR Manager, the manager of the field in which the candidate
belongs to will be present there.

The lower level labors will be recruited through advertising, canvassing, issuing notice and
giving pamphlets. The existing employees of the company will be sent to do this kind of
canvassing work. Van will be arranged by the company itself.

They concentrate the rural areas to gather more labors to the company. They will be
selected according to their educational qualification and physical evaluation. Mostly they
will be appointed for the pre-processing work, settling and grading.

25
The middle level and the top level employees will be recruited through advertising in
television, newspaper, references etc. The applications from various applicants will be
received and filtered. While selecting them, experienced persons will be given first priority.
At the time of selecting the employees, they will evaluate on the basis of experience,
package and whether they will work for long term.

EMPLOYEE BENEFITS AND WELFARE

Welfare includes various services, benefits and facilities that is done for the comfort and
improvement of employees and is provided over and above the wages. Welfare helps in
keeping the morale and motivation of employees high so as to retain the employees for
longer duration. Welfare is not only in monetary terms like monitoring of working
condition, creation of industrial harmony through infrastructure of health, industrial
relations and insurance against disease, accident and unemployment for the workers and
their families.
 They provide better physical and mental health to workers and thus promote a
healthy work environment.
 Facilities like housing scheme, medical benefits and education and recreation
facilities of workers families help in raising their standard of living, so that workers
pay more attention towards work and thus increase their productivity.
 Employers get stable labour force by providing welfare facilities by increasing the
involve participation and productivity of employees. It promotes healthy industrial
relations and maintain industrial peace.

3.4 SALES DEPARTMENT

This department is responsible for the collection of sales amount i.e., cash sales. There are
in all 12 cash counters in the Store. There is a Head Cashier to whom all the cahiers report
and submit the total sales amount collected throughout the by the cashiers. In addition to
cash all leading credit and debit cards are accepted at no extra charge.

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3.5 ADMINISTRATION
Safety is always a concern for any business specially safety of the customers and staff.
Also, it is very essential that a store is well maintained, clean and tidy. The administration
department is in charge of the security, housekeeping, packers and loaders. They handle the
police interaction whenever required.
The housekeeping staffs have to maintain cleanliness of the stores and the departments.
They must make sure that cleaning of the floors is done from time to time during a day.
The security manages the entry and exit of the customers, protection against theft at the
stores, etc. Strict checking is done before a customer or employee enters the store and at the
time they are leaving.
Every product has a security tag that will prevent the customers from smuggling the
product out of the stores without paying for it. There are 3 kinds of tags: hard tag, soft tag
and string tag. These tags help to keep a track of the product and prevent theft.
The Administration department also has a separate section section known as ‘Information
Technology’. This department is responsible for the maintenance of all the systems of the
store, all billing machines their functioning networking with the master machine etc. If
there is any problem in any department in the store, then this department comes into
function. This department integrates all the system in the store and properly maintain all of
them.

PUBLIC RELATIONS

 Volunteering for community projects or providing sponsorship for local sports or

community events

 Employee Communication (Keeping Employees informed about new products,

customer wins, important appointments of new business opportunities builds
positive attitudes and commitment)

 Media Information (Newspapers, magazines, radio and television are important

channels for communicating with customers, investors and the community. If you
launch a new product, for example, you can raise awareness and stimulate interest

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 by issuing press release to newspapers and magazines that reach your target
market)

 Social Media

3.6 CHANNEL MANAGEMENT

SPAR is one of the leading hypermarkets in India with a presence of 20 stores spread
across nine cities in India. To tap into new consumer groups and reach out to as many
customers in a convenient way, the brand is working to sharpen its Omnichannel strategy.
It has launched several initiatives such as setting up its e-commerce shop ‘Spar Site’
encompassing product categories that include foods and vegetables, staples, household
essentials and personal care products. To off er a ‘wow’ experience to its customers, the
hypermarket has come up with yet another way to reach out to more number of customers
through its initiative ‘Spar on wheels’. SPAR has collaborated with push-cart vendors of
various localities in cities to make a success of its ‘click and collect’ business model, which
helps SPAR customers get fresh fruits and vegetables right at one’s door step.

SPAR’s Omnichannel play offers the proposition of convenience in tandem with its unique
value proposition along with the assurance of products’ freshness, superior services and
various other customer-friendly options. All of these features have been designed to bring a
delightful array of assortments and a virtual hypermarket near to the doorstep of the
customer. According to Saravana C, Deputy General Manager, Business Applications,
SPAR India, “Our Omnichannel play is all about reaching out seamlessly to our existing
and potential customers with our rich assortment and about expanding our customer base
further. Th rough our Omnichannel initiative, we are offering our customers a better
service and delivery apart from taking our freshness proposition to a new level. Our
innovative Omnichannel model is live and kicking and is getting a great response from the
customers.”

Apart from launching its Spar Site, the hypermarket has also tied up with online retail giant
Amazon. Its product assortment is already available on Amazon and this initiative too has
played out well and drawn good customer response. To rev up its Omnichannel play a few
notches more, SPAR has also launched its mobile applications thereby offering its

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customers not just another touch-point on its digital platform but one that customers can
avail of to get an in-store experience and feel and also for interacting with the staff as well.

What are the Omnichannel ways that we are we using and how we are using these channels
to reach out to the customers? One is the SPAR India website and the other is the ‘SPAR
on wheels’ initiative followed by the launch of our digital kiosk. The digital kiosk can work
offline anywhere and everywhere outside the store; this is one of the mode where
customers can place their orders and can get timely deliveries. We have also tied up with
Amazon as our reach is only in nine cities,”

3.7 INVENTORY MANAGEMENT

Inventory - Goods and Materials that are available in stock by a business

Inventory Management-The process to maintain optimum inventory to be able to meet

business requirements and avoid over or under inventory that can impact the financial
figures

PURPOSE OF INVENTORY MANAGEMENT SPAR

 How many units to be order

 When to order
 Keeping a sufficient amount of units so that company don't suffer from loss of
business
 To provide better customer service by providing them what they want at the time of
demand
 Reducing operational cost by keeping optimal quantity of stocks

MAIN TASKS OF INVENTORY MANAGEMENT TEAM SPAR

 Daily Dump Report preparation - It is the report which shows the daily waste
happened in F&V Nonveg, Concept and Bakery department
 DDR includes Ideal dump percent for each sub category, Target for every day and
target achieved percent on each day

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  Internal transfer report preparation and Internal transfer checking - This is a report
that includes transfer of products between one department to another within the store
 Daily Price change report preparation
 A,B,C count Checking of the stock
 Checking the FIFO compliances
 Checking the PI(Point of Inventory)
 Stock Voucher creation. This contains the actual stock quantity present in the
physical form
 90 days stock correction
 Moving and non-moving stock check

INVENTORY PROCESS

• To get the desired amount of quantity from vendors

RECEIVING

• To safekeeping the stock and product it from any wear and tear
HANDLING

• To putting the stock on to the shelf in most customer friendly wa

PLACING

• Providing best customer service in terms of instant avalibility of products

SELLING

Chat : 3 (Inventory Process)

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 CHAPTER-4
APPLICATION OF MANAGEMENT CONCEPT

4.1 SWOT ANALYSIS:

Fig 6 (swot analysis)

STRENGTHS
 High brand-Equity in evolving retail markets.
 More store space.
 Point of purchase promotions to increase the purchase.
 Variety of stuff under single roof increasing customer time and available
`choices.
 Low price & Advertisement.
 Customer service desk.

WEAKNESSES
 Unable to meet store opening targets.
 Falling of revenue per square feet.
 Weak R&D.
 Unavailability of branded items.

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OPPORTUNITY
 International expansion
 Evolving consumer preference in recent years.
 Huge complexes offer shopping.

THREATS
 Competitors, Global big players planning to foray into the markets.
 Government policies are not well-defined in emerging markets like India.
 Unorganized retail market of India.

4.2 MICHAEL PORTER’S FIVE FORCES FRAMEWORK

Five Forces that Shape Strategy", Michael Porter observed five forces that have significant
impact on a firm's profitability in its industry. These five forces analysis today in business
world is also known as -Porter Five Forces Analysis. The Porter Five (5) Forces are -

Fig 7 (Michael porter’s five forces framework)

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Porter Five Forces is a holistic strategy framework that took strategic decision away from
just analyzing the present competition. Porter Five Forces focuses on - how SPAR Group,
Inc. can build a sustainable competitive advantage in Business Services industry. Managers
at SPAR Group, Inc. can not only use Porter Five Forces to develop a strategic position
with in Business Services industry but also can explore profitable opportunities in whole
Services sector.

SPAR Group, Inc. Porter Five (5) Forces Analysis for Services Industry

Threats of New Entrants

New entrants in Business Services brings innovation, new ways of doing things and put
pressure on SPAR Group, Inc. through lower pricing strategy, reducing costs, and
providing new value propositions to the customers. SPAR Group, Inc. has to manage all
these challenges and build effective barriers to safeguard its competitive edge.

How SPAR Group, Inc. can tackle the Threats of New Entrants

 By innovating new products and services. New products not only brings new
customers to the fold but also give old customer a reason to buy SPAR Group, Inc.
‘s products.
 By building economies of scale so that it can lower the fixed cost per unit.
 Building capacities and spending money on research and development. New
entrants are less likely to enter a dynamic industry where the established players
such as SPAR Group, Inc. keep defining the standards regularly. It significantly
reduces the window of extraordinary profits for the new firms thus discourage new
players in the industry.

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Bargaining Power of Suppliers

All most all the companies in the Business Services industry buy their raw material from
numerous suppliers. Suppliers in dominant position can decrease the margins SPAR Group,
Inc. can earn in the market. Powerful suppliers in Services sector use their negotiating
power to extract higher prices from the firms in Business Services field. The overall impact
of higher supplier bargaining power is that it lowers the overall profitability of Business
Services.

How SPAR Group, Inc. can tackle Bargaining Power of the Suppliers

 By building efficient supply chain with multiple suppliers.

 By experimenting with product designs using different materials so that if the
prices go up of one raw material then company can shift to another.
 Developing dedicated suppliers whose business depends upon the firm. One of the
lessons SPAR Group, Inc. can learn from Wal-Mart and Nike is how these
companies developed third party manufacturers whose business solely depends on
them thus creating a scenario where these third party manufacturers have
significantly less bargaining power compare to Wal-Mart and Nike.

Bargaining Power of Buyers

Buyers are often a demanding lot. They want to buy the best offerings available by paying
the minimum price as possible. This put pressure on SPAR Group, Inc. profitability in the
long run. The smaller and more powerful the customer base is of SPAR Group, Inc. the
higher the bargaining power of the customers and higher their ability to seek increasing
discounts and offers.

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How SPAR Group, Inc. can tackle the Bargaining Power of Buyers

 By building a large base of customers. This will be helpful in two ways. It will
reduce the bargaining power of the buyers plus it will provide an opportunity to the
firm to streamline its sales and production process.
 By rapidly innovating new products. Customers often seek discounts and offerings
on established products so if SPAR Group, Inc. keep on coming up with new
products then it can limit the bargaining power of buyers.
 New products will also reduce the defection of existing customers of SPAR Group,
Inc. to its competitors.

Threats of Substitute Products or Services

When a new product or service meets a similar customer needs in different ways, industry
profitability suffers. For example services like Dropbox and Google Drive are substitute to
storage hardware drives. The threat of a substitute product or service is high if it offers a
value proposition that is uniquely different from present offerings of the industry.

How SPAR Group, Inc. can tackle the Treat of Substitute Products / Services

 By being service oriented rather than just product oriented.

 By understanding the core need of the customer rather than what the customer is
buying.
 By increasing the switching cost for the customers.

Rivalry among the Existing Competitors

If the rivalry among the existing players in an industry is intense then it will drive down
prices and decrease the overall profitability of the industry. SPAR Group, Inc. operates in a
very competitive Business Services industry. This competition does take toll on the overall
long term profitability of the organization.

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How SPAR Group, Inc. can tackle Intense Rivalry among the Existing Competitors in
Business Services industry

 By building a sustainable differentiation

 By building scale so that it can compete better
 Collaborating with competitors to increase the market size rather than just
competing for small market.

Implications of Porter Five Forces on SPAR Group, Inc.

By analyzing all the five competitive forces SPAR Group, Inc. strategists can gain a
complete picture of what impacts the profitability of the organization in Business Services
industry. They can identify game changing trends early on and can swiftly respond to
exploit the emerging opportunity. By understanding the Porter Five Forces in great detail
SPAR Group, Inc. 's managers can shape those forces in their favor.

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 CHAPTER 5
FINDINGS
SUGGESTIONS AND CONCLUSION
5.1 FINDINGS:
 According to my study, Spar offers more discounts and schemes inorder to attract
the customers.
 Most of the customers buy their requirement in Spar on the basis of Weekly and
monthly basis. Customers realized that Spar stores provide qualitative
products/service with reasonable price.
 At present time Spar provide different types of product assortments to the
customers.
 Continuously opening of Spar chains in different major cities, increasing quantities
of the customers & profit show that Spar most accepted name in organized retail
chain in India.
 Spar mainly deal with middle income group people who want qualitative product
with reasonable cost.
 Spar has a good reputation of itself in the market.
 Spar has positioned itself in the market as a discounted store.
 Impulse buying behavior of customers comes in to play most of the times in spar.
 Spar is a hypermarket as it provides various kinds of goods like apparels, grocery,
stationary, food items, electronic items, leather items, watches, jewellery, crockery,
decorative items, sport items, chocolates and many more. It competes with all the
specialty stores of different products which provide goods at a discounted rate all
through the year.

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5.2 SUGGESTIONS
 Spar may start emphasizing more on internet shopping along with the formal retail
shopping because a large population of the country likes to shop online in order to
save time.
 Along with the different discounts and offers it may pay attention towards the
students and provide some offers for them also because half of the Indian
population is of youths and students.
 It may work on its billing counters and customer service in order to solve the
problem of long queues and waiting customers
 Try to retain the staff, as it’s seen that the new staff does not know about the details
of the product he/she is standing near.
 During the tenure at Spar many complaints of offer mismatch and price
mismatch were observed which irritates customers, so it may be taken into
consideration and immediate solution may be found out.
 Hygiene conditions may be maintained at the live kitchen section so as to avoid any
complaints related to hygiene.
 Inventory management may be quick enough to refill the empty stocks in the store.
 Communication may be properly made from higher authorities to staff of store.
 Potential customers may be identified and some free gifts can be given to them to
purchase the BBPC card.
 Regular training to staff may be given and proper communication to all may take
place, miscommunication may be avoided as far as possible.
 More work and responsibilities may be given to summer interns so that they can
learn and get the benefit out of it which will help them in the future.
 Spar Hypermarket should keep offers in regular intervals so that there Should not
be a long term gap, because offer is the most influencing factor which is responsible
for customer purchase decision.
 And they also concentrate on T V advertisement they should show ads and
promotional offers in a regular interval in languages
 Hoarding should be placed uncovered area.

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5.3 CONCLUSION:
Indian retail sector is witnessing one of the most hectic Marketing activities of all times.
The companies are fighting to win the hearts of customer who is God said by the business
tycoons. There is always a ‘first mover advantage’ in an upcoming sector. In India, that
``advantage goes to “SPAR HYPERMARKET”. It has brought about many changes in the
buying habits of people. It has created formats, which provide all items less than one roof
at low rates.
The promotional activity of the company, which famous as Less Price than others as it
says ‘Nobody Sells Cheaper and Better!’is made its place in minds of customer. As the
competition is becoming stiff in the market the activities conducted by the company are
unique, that have brought fruitful result to the company. Among them sales Promotions is
one of the leading activity or unique among all other activities & has high influence on the
customer walk-in.

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