Spencer’s Retail Limited: Store Format and Private Label Decisions
(8 pages of text)
Spencer’s Retail, a fast-moving consumer goods retail chain in India, had been perceived as an expensive retailer exclusively for high-end consumers. A new sector head took over in 2013 and shifted the store from a positioning statement of “Taste the World” to “Make Fine Living Affordable.” Within five years, Spencer’s was making a profit. However, traditional grocery stores continued to dominate the Indian retail scene and were more heavily frequented by Indian shoppers. To maintain a sustainable profit, Spencer’s had to expand the business by opening more retail outlets and increasing same-store sales growth by increasing footfalls and basket size. What store format and combination of private label and national label products would help Spencer’s reach this goal?
This case is suitable for use in undergraduate- and graduate-level courses on marketing strategy, marketing management, or business leadership to illustrate competition from a marketing point of view, including competitive advantage and brand protection. After working through the case and assignment questions students will be able to
- design strategies in a highly competitive environment to create a favourable store perception for a retail brand with its merchandise mix and in-store experience;
- explore the impact of change in positioning from premium and expensive to an affordable brand for the masses;
- understand the role of store format as a strategy in expansion; andidentify and evaluate strategic alternatives for a retail store brand to exploit the evolving shopping behaviour of customers in an era with a strong movement from small, local shops to retail giants.
India, Large, 2019
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