FINAL PROJECT

ON

RETAIL INDUSTRY

COMPARATIVE ANALYSIS OF MARKETING STRATEGIES 0F ‘BIG BAZAR’ AND ‘VISHAL

MEGA MART’ RETAIL INDIA LTD.

SUBMITTED TO:HEAD OF PROFFESSIONAL STUDIES DEPARTMENT, DAV COLLEGE SECTOR-10, CHANDIGARHIN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATIONPUNJAB UNIVERSITY

2010-11

SUBMITTED BY:

RASHMI YADAV

BBA III ROLL NO.: 6715

PUPIN:17508000774

DAV COLLEGE , SECTOR-10

CHANDIGARH

PREFACE

This project report forms an important component of education at under the course of BBA. It is an attempt to bridge the gap between the academic institution and the corporate world. It provides us an opportunity to apply the concepts learnt in real life situation.

This project report begins with the detailed introduction of the study in which basis of comparison has been discussed. Then detailed introduction of dematerialization has been given. The basic products and services offered by the major retail outlets to its customers have been included in the project report.

This report contains the information about the impact of various advertisements and other factors like magazines, newspapers, TV ads etc. the main focus of the questions is on the comparative analysis of the different outlets and customers taste.

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ACKNOWLEDGMENT

The successful completion of the project is not just owed to one but it bears the imprint of the efforts of many people actively involved with the project.

I would like to thank all my teachers and friends in carrying out the whole project and enlightening us with immense knowledge.

Our sincere regards to all of them for guiding me in completion of this project work.

We would like to give special thanks to authorities of Big Bazaar and Vishal Mega Mart who gave their valuable time and suggestions to make improvement in our report time to time.

Rashmi yadav

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DECLARATION

I, Rashmi yadav , student of bachelor of business administration 3rd year, DAV college, Punjab university, Chandigarh hereby declares that this project “A COMPARATIVE ANALYSIS OF MARKETING STRATEGIES OF BIG BAZAAR AND VISHAL MEGA MART RETAIL INDIA LIMITED” has been my own work in true sincerity under the vigil check and guidance of all my teachers at DAV college, Chandigarh. I have adopted and included all the major facts about the respective companies and have ensured that the project is flawless and discrepancies have been traced and edited.

Date:

Rashmi yadav

Roll no:6715

Pupin:17508000774

2

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TABLE OF CONTENTS

1. INTRODUCTION 7-17

2. COMPANY PROFILE 18-37

3. OBJECTIVES AND RESEARCH METHODOLOGY 38-40

4. LIMITATIONS 41

5. FINDING AND ANALYSIS 42-54

6. RECOMMENDATIONS 55

7. CONCLUSION 56

8. BIBLIOGRAPHY 57

9. ANNEXURE 58-61

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EXECUTIVE SUMMARY

Advertising and Sales promotion is indispensable part of any Retail

business. They help to entice the customers from local retailer of

unorganized system to the big retail companies of organized system .In

organized retail system sales promotion and advertising is even far more

important because they need a big force to drag them into these giant

retail stores.

Big Bazaar and Vishal Mega Mart have been using these promotional

techniques since its establishment that helps it in maintaining as well as

increasing its sales. It mainly counts on sales promotion techniques and

advertising that have always been unique.

In the project “Comparative study of Big Bazaar and Vishal Mega Mart”

We have tried to study all the big advertising and sales promotion

campaigns of these two. Apart from the study part I have tried to find

whether their Advertising and Sales promotion really influences the theie

sales, taking it as hypothesis of my study We started up with our research.

We began our research with the help of primary source of collecting the

data that is Questionnaire containing questions that could be used to

measure the effect of advertising and Sales promotion on sales of Big

Bazaar and Vishal Mega Mart. The sample size taken by us was 50.

On the basis of analysis of questionnaires and various results based on pie

chart and bar graphs, We came on the conclusion that only sales

promotion has significant effect on the sales of these two, though it has

been trying hard for advertising but it has to put more efforts to make its

effect on the sales of Big bazaar & Vishal Mega Mart and make people

aware. We have tried our best efforts to keep our research fair and

unbiased.

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Retailing consists of all activities involved in selling goods and services

to consumers for their personal, family or household use. It covers sales

of goods ranging from automobiles to apparel and food products and

services ranging from hair cutting to air travel and computer education.

Sales of goods to intermediaries who resell to retailers or sales to

manufacturers are not considered a retail activity. Retailing can be

examined from many perspectives’ manufacturer of white goods like

washing machine and refrigerators has many options to reach out to

consumers. It can sell through dealers, the company showrooms (Sony

World, Videocon Plaza) or hypermarkets (Big Bazaar). The retail sector

in India is highly fragmented with organized retail contributing to only

2% of total retail sales. The retail sector in developed countries was also

highly fragmented at the beginning of the last N century but the

emergence of large chains like Wal Mart, Sears, and Mc Donald’s led to

rapid growth of organized retail and growing consolidation of the retail

industry in the developed countries. Today, in India we see a rise in the

purchasing power and growth of a middle class which follows the

western lifestyle. Hence, conditions are conducive for the rapid growth of

organized retail in India. Organized retail is growing rapidly and we see

the emergence of large organized retail chains like Shoppers’ Stop, Life

Style and Westside. We also find retail malls mushrooming all over the

country. The opportunities in retail industry in India will increase since

Indian retailing is on the threshold of a major change. However, with the

rapid growth in organized retail and increased emphasis of manufacturers

on understanding sales at the retail level, the study of retailing has

become increasingly relevant.

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INTRODUCTION

Every business conducted for the purpose of selling or offering for sale

any goods, wares, or merchandise, other than as a part of a "wholesale

business" to the final consumer can be defined as retail business Retail is

the second-largest industry in the United States both in number of

establishments and number of employees. The U.S. retail industry

generates $3.8 trillion in retail sales annually ($4.2 trillion if food service

sales are included), approximately $11,993 per capita. The retail sector is

also one of the largest worldwide.

Wal-Mart is the world's largest retailer and the world's largest company

with more than $312 billion (USD) in sales annually. Wal-Mart employs

1.3 million associates in the United States and more than 400,000

internationally. The second largest retailer in the world is France's

Carrefour.

WHAT IS RETAILING?

Retailing is all the activities involved in selling goods and services

directly to final consumers for their personal, non-business use.

The word retail is derived from the French word retailer, meaning to cut

a piece off or to break bulk. A retailer buys goods or products in large

quantities from manufacturers or importers, either directly or through a

wholesaler, and then sells individual items or small quantities to the

general public or end user customers, usually in a shop, also called store.

Retailers are at the end of the supply chain. Marketers see retailing as part

of their overall distribution strategy.

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TYPES OF RETAILING

Retailing can be classified under two heads:

Store Retailing

Non-store Retailing

STORE RETAILING

Retail stores come in a variety of shapes and sizes, and new retail types

keep emerging.  They can be classified by one or more of several

characteristics:

Amount of service

Product line

Relative prices

Control of outlets

Type of store cluster

1) AMOUNT OF SERVICE

Different products require different amounts of service, and customer

service preferences vary:

Self-Service Retailers  

Customers are willing to perform their own "locate-compare-select"

process to save money.  Today, self-service is the basis of all discount

operations, and typically is used by sellers of convenience goods (such as

supermarkets) and nationally branded, fast moving shopping goods (such

as catalog showrooms).

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Limited Service Retailers

Retailers such as Sears and J. C. Penney, provide more sales assistance

because they carry more shopping goods about which consumers need

information.  Their increased operating costs result in higher prices.

Full Service Retailers

Like specialty stores and first-class department stores, have salespeople to

assist customers in every phase of the shopping process.  Full service

stores usually carry more specialty goods for which customers like to be

waited on.  They provide more liberal return policies, various credit

plans, free delivery, home servicing, and extras such as lounges and

restaurants.

2) PRODUCT LINE

Retailers can also be classified by the depth and breadth of their product

assortments. The depth of a product assortment refers to the number of

different versions of each product that are offered for sale. The breadth

of the assortment refers to the number of different products that the store

carries.

Specialty stores carry a narrow product line with a deep assortment

within that line.   Examples include stores selling sporting goods, books,

furniture, electronics, flowers, or toys.  Today, specialty stores are

flourishing, due to the increasing use of market segmentation, market

targeting, and product specialization.

A department store carries a wide variety of product lines.  Each line is

operated as a separate department managed by specialist buyers and

merchandisers.

Supermarkets are large, low-cost, low-margin, high-volume, self-service

stores that carry a wide variety of food, laundry, and household products. 

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Convenience stores are small stores that carry a limited line of high-

turnover convenience goods. These stores located near residential areas

and remain open long hours, seven days a week.  Convenience stores

must charge high prices to make up for higher operating costs and lower

sales volume, but they satisfy an important consumer need.

Superstores, combination stores, and hypermarkets are all larger than

the conventional supermarket.  Many leading chains are moving toward

superstores because their wider assortment allows prices to be 5-6%

higher than conventional supermarkets'. Combination stores are

combined food and drug stores.   Examples are A&P's Family Marts and

Wal-Mart's Super centers.  Hypermarkets combine discount, supermarket,

and warehouse retailing, and operate like a warehouse.

3) RELATIVE PRICES

Retailers can also be classified by the prices they charge.  Most retailers

charge regular prices and offer normal quality goods and customer

service.  Some offer higher quality goods and service at higher prices. 

Retailers that feature low prices include:

Discount stores sell standard merchandise at lower prices by accepting

lower margins and selling higher volume.  Occasional discounts or

specials do not make a store a discount store.  A true discount store

regularly sells its merchandise at lower prices, offering mostly national

brands, not inferior goods.

4) CONTROL OF OUTLETS:

About 80% of all retail stores are independents, accounting for 2/3 of

retail sales. Other forms of ownership include the corporate chain, the

voluntary chain and retailer cooperative, the franchise organization, and

the merchandising conglomerate.

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The chain store is one of the most important retail developments of this

century. Corporate chains appear in all types of retailing, but they are

strongest in department, variety, food, drug, shoe, and women's clothing

stores.  The size of corporate chains allows them to buy in large quantities

at lower prices, and chains gain promotional economies because their

advertising costs are spread out over many stores and over a large sales

volume.

The voluntary chain is a wholesaler-sponsored group of independent

retailers that engages in-group buying and common merchandising.

The retailer cooperative is a group of independent retailers that set up a

jointly- owned central wholesale operations and conduct joint

merchandising and promotion efforts.

A franchise is a contractual association between a manufacturer,

wholesaler, or service organization (the franchiser) and independent

businesspeople (the franchisees) who buy the right to own and operate

one or more units in the franchise system. 

Merchandising conglomerates are corporations that combine several

different retailing forms under central ownership and share some

distribution and management functions. Examples include Dayton-

Hudson and J. C. Penney.

5) TYPE OF STORE CLUSTER

Most stores today cluster together to increase their customer pulling

power and to give consumers the convenience of one-stop shopping:

Central business districts A central business district comprises of banks,

department stores, specialty stores, and movie theatres. 

A shopping center is a group of retail businesses planned, developed,

owned, and managed as a unit.  

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NON-STORE RETAILING

Although most goods and services are sold through stores, non-store

retailing has been growing much faster than store retailing.

Traditional store retailers are facing increasing sales competition from

catalogs, direct mail, telephone, home TV shopping shows, on-line

computer shopping services, home and office parties, and other direct

retailing approaches.

Non-store retailing includes direct marketing, direct selling, and

automatic vending.

INDIAN RETAIL INDUSTRY

Retailing in India is one of the significant contributors to the Indian

economy and accounts for 35% of the GDP. However, this sector is in a

fragmented state with over 12 million outlets operating in the country and

only 4% of them being larger than 500 sq ft in size. This is in comparison

to 0.9 million outlets in USA, catering to more than 13 times of the total

retail market size. Thus, India has the highest number of outlets per capita

in the world with a widely spread retail network but with the lowest per

capita retail space (@ 2 sq ft per person as compared to 16 sq ft per

person for USA).

The Indian retailing industry is currently estimated at $205 b (Rs.930,

000 Crores) and is expected to grow at 5% p.a. The current size of the

organized retailing market is $6 b (Rs.28,000 Crores), thereby, a mere 3%

of the total retailing market with a projected growth rate of 25 – 30% p.a.

and is estimated to become $8 b (Rs.35,000 Crores) by 2005 and $24 b

(Rs.100,000 Crores) by 2010, with its contribution to total retailing sales

likely to rise to 9% by decade end.

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EMERGING TRENDS IN INDIAN RETAIL INDUSTRY

‘Tier-II’ Phenomenon

Small towns with a population of 0.5 – 1 million {like Surat, Lucknow,

Dehra Dun, Vijaywada, Bhopal, Indore, Vadodara, Coimbatore, Nasik,

Bhubaneswar, Varanasi ,zirkpur and Ludhiana etc}, are witnessing a

defined increase in disposable income coupled with high aspirational

levels leading to enhanced spending on consumer goods along with lesser

aversion to credit. With consumption in metros already being exploited

{85% of retail sales as of now}, these Tier-II areas are fresh targets and

are expected to contribute 20-25% of organized retailing sales.

Retailers are introducing contemporary retail formats such as

hypermarkets and supermarkets in these new pockets of growth. Mall

development activity in these small towns is also picking up, creating

quality space for retailers to fulfill their aggressive expansion plans.

Keeping in view the relatively smaller size of the market, the average size

of a retail mall in Tier-II cities ranges between 100,000 – 120,000 square

feet in comparison with the larger metros where a number of malls

measure over 500,000 square feet.

Entry of International Players

The fight today is not between Big organized retail stores (3%) and

Unorganized Kirana Shops (97%), but its between global giants like Wal-

Mart, Tesco and Shopper’s Stop, Pantaloons. Entry of these global

players will impact the way India Retailers operate, as much as it will

change the way Indian consumers live and do their shopping. They will

no longer be just dependent on their local Kirana shop for their everyday

needs. They could just shop once a week or once a month at

comparatively cheaper rates and remain hassle free. Indian retailer will

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also need to quickly come to terms with the market realities. On one hand

they will fight size factor and on the other hand great efficiencies

Emergence of New Retail Formats

Currently the retail sector in India is populated with the traditional mom-

and-pop stores and some 1000 odd supermarkets under organized retail

chains. A daring few ventured into the Hypermarket segment with

successful results and this format is being fast replicated by other players.

This experience indicates that the Indian consumer has matured to the

next level of shopping experience. Given the Indian conditions and the

vast diversity a single format may not be possible for the national

presence, but region specific formats may evolve. An interesting

observation is that of lack of presence of organized retail chains in the

rural/semi-urban centers as over 60% of Indian population is still in these

parts. An ideal “no frills” model to start with would be ideal for the rural

markets; this would help to take them to the next level of supermarket

experience.

Specialty Malls

Keeping in mind the astonishing pace with which new supply is expected

to enter the market, many mall developers, in a bid to offer a distinctive

value proposition, are planning to develop ‘specialty malls’. These niche

developments shall emerge as one-stop destinations in their chosen

product categories. The Delhi-based Aerens Group has developed Gold

Souk, an exclusive jewellery mall that is already operational in Gurgaon

and has ambitious plans to replicate the concept across the country.

Further, a number of analogous developments like a ‘Wedding Mall’ by

Omaxe Group, ‘Automobile Mall’ etc are also in the offing. In line with

international trends, ‘Home Malls’ offering the entire range of building

and interior décor solutions are also coming up in various parts of the

country including Pune (‘Ishanya’ promoted by Deepak Fertilizers and

Petrochemicals Corporation Ltd), Gurgaon & Kolkata.

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Price Correction

Fallout of the surge in mall development activity shall be that developers

will be forced to offer retailers prime real estate spaces at costs lower

than those prevailing today, as the space required by retailers to fulfill

their expansion plans is likely to be lesser than offered. This correction

could result in a more structured retail real estate market that would allow

retailers a higher margin on their real estate investments, thereby enabling

them to expand faster. Further, the relatively over-served cities could

witness higher activity, as real estate space becomes more affordable,

thereby, reducing the break-even period for retailers. Moreover, under-

served markets could provide enough margins to retailers to compensate

for loss of margins in some of the over-served markets.

Traditional Retailers in Malls

The abundant supply of retail space has provided retailers with the

leeway to experiment with newer formats and product categories. Even

traditional retailers like Benzer, Study by Janak, Mehrason’s Jewellers etc

are being pushed to modern retailing formats like shopping malls. Mall

developers shall have sufficient incentive to operate on a revenue-sharing

pricing model as many of these traditional retailers can generate higher

sales per square foot as compared to the larger-format department stores,

which shall translate into higher revenue realizations for developers.

Transformation & Innovations of Supply Chain and Transportation

logistics

To counter the unbeatable advantages of convenience of a hop, skip and a

jump access and home delivery, organized retailers seem to have just one

option - offer attractive prices to the consumer. A successful retailer's

winning edge will therefore come from sourcing - how best it can

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leverage its scale to drive merchandise costs down, increase stock turns

and get better credit terms from vendors. Efficient supply chains can

achieve this objective and fuel demand. The supply chain in India is full

of inefficiencies- a result of inadequate infrastructure, too many

middlemen, complicated laws and an indifferent attitude.

More use of Technology

Retailing, as discussed before, is at a nascent stage in India. The

complicated information systems and underlying technologies are in the

process of being established. Most grocery retailers like Food World have

started tracking consumer purchases through CRM. The lifestyle retailers

through their `affinity clubs' and `reward clubs' are establishing their

processes. The traditional retailers will always continue to exist but

organized retailers are working towards revamping their business to

obtain strategic advantages at various levels - market, cost, knowledge

and customer. With differentiating strategies - value for money, shopping

experience, variety, quality, discounts, advanced technologies, change in

the equilibrium with manufacturers and a thorough understanding of the

consumer behavior, the ground is all set for the organized retailers.

Community Involvement

Footfalls in most malls are observed to be significantly higher on

weekends. To ensure regular walk-ins on weekdays, mall developers have

started to focus on involving the local community. They have recognized

that their centers need to be entertaining, and that shoppers want their

malls and town centers to blend with and reflect their own communities.

Their philosophy today is thus to create a center where people would

want to stay well beyond their shopping time to enact the rituals of urban

life. Activities like karate classes and painting competitions for children

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pull their salary-earning parents to visit the mall. For example, South-dale

Mall, USA contains a school, an auditorium, an ice-skating rink and even

a zoo for the same reason. Dandia and Navratre parties at Ansal Plaza and

Festival parties at other malls also have the same objective.

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COMPANY PROFILE

BIG BAZAAR

Pantaloon Retail (India) Limited, is India's leading retail company with

presence across multiple lines of businesses. The company owns and

manages multiple retail formats that cater to a wide cross-section of the

Indian society and is able to capture almost the entire consumption basket

of the Indian consumer. Headquartered in Mumbai(Bombay).

It owns and operates multiple retail formats including Pantaloons, Big

Bazaar, Food Bazaar, Central, E-Zone, Fashion Station, Depot and many

others.

Pantaloon Retail forayed into modern retail in 1997 with the launching of

fashion retail chain, Pantaloons in Kolkata. In 2001, it launched Big

Bazaar, a hypermarket chain that combines the look and feel of Indian

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bazaars, with aspects of modern retail, like choice, convenience and

hygiene. Food Bazaar, food and grocery chain and launch Central, a first

of its kind seamless mall located in the heart of major Indian cities,

followed this. Some of its other formats include, Collection i (home

improvement products), E-Zone (consumer electronics), Depot (books,

music, gifts and stationary), All (fashion apparel for plus-size

individuals), Shoe Factory (footwear) and Blue Sky (fashion accessories).

It has recently launched its retailing venture, futurebazaar.com.

The group's subsidiary companies include, Home Solutions Retail India

Ltd, Pantaloon Industries Ltd, Galaxy Entertainment and Indus League

Clothing. The group also has joint venture companies with a number of

partners including French retailer Etam group, Lee Cooper, Manipal

Healthcare, Jaywalker’s, Gini & Jony and Liberty Shoes. Planet Retail, a

group company owns the franchisee of international brands like Marks &

Spencer, Debenhams, Next and Guess in India.

Mr. Kishore Biyani, Managing Director

Future Group

Pantaloon Retail is the flagship enterprise of the Future Group, which is

positioned to cater to the entire Indian consumption space. The Future

Group operates through six verticals: Future Retail (encompassing all

retail businesses), Future Capital (financial products and services), Future

Brands (management of all brands owned or managed by group

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companies), Future Space (management of retail real estate), Future

Logistics (management of supply chain and distribution) and Future

Media (development and management of retail media).

Future Capital Holdings, the group's financial arm, focuses on asset

management and consumer finance. It manages two real estate investment

funds (Horizon and Kshitij) and consumer-related private equity fund,

Indecision. It also plans to get into insurance, consumer credit and other

consumer-related financial products and services in the near future.

Future Group's vision is to, "Deliver Everything, Everywhere, Every time

to Every Indian Consumer in the most profitable manner." One of the

core values at Future Group is, 'Indian’s' and its corporate credo is -

Rewrite rules, Retain values. 

Future Group Manifesto

“Future” – the word which signifies optimism, growth, achievement,

strength, beauty, rewards and perfection. Future encourages us to explore

areas yet unexplored, write rules yet unwritten; create new opportunities

and new successes. To strive for a glorious future brings to us our

strength, our ability to learn, unlearn and re-learn, our ability to evolve.

We, in Future Group, will not wait for the Future to unfold itself but

create future scenarios in the consumer space and facilitate

consumption because consumption is development. Thereby, we will

effect socio-economic development for our customers, employees,

shareholders, associates and partners. Our customers will not just get

what they need, but also get them where, how and when they need.

We will not just post satisfactory results, we will write success stories.

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We will not just operate efficiently in the Indian economy, we will evolve

it.

We will not just spot trends; we will set trends by marrying our

understanding of the Indian consumer to their needs of tomorrow.

It is this understanding that has helped us succeed. And it is this that will

help us succeed in the Future. We shall keep relearning. And in this

process, do just one thing.

Big Bazaar is both big and a bazaar. It is unlike, say, a Walmart or even

a Food world. Big Bazaar is almost an air-conditioned version of any

Indian bazaar. It is a slightly orderly and organized version of, say

Chickpet for Bangalore guys or Dadar for Mumbaiites. There is a huge

crowd which can move in almost any direction. You can buy anything

(pretty much everything is available at Big Bazaar). It is not a place

where you can browse through at leisure and pick up a few things here

and there. This is a place if you are serious about your shopping. And the

worst part is at the checkout counter, where the line can stretch as much

as a line for a famous Ganpati Pandal or a cricket match. Parking is a pain

too.

But, the place ticks. In both Hyderabad and Bangalore, the outlets don’t

have a place for customers to stand esp. on weekends. Customers wait

outside it some before it opens in the morning. Bombay is slightly better.

Big Bazaar offers good prices-Really good prices. Prices that tempt.

Apart from simple price chopping, there are deals (2 for the price of 1 or

prices reduced on a combination etc). The perception of Big Bazaar is

that it facilitates some serious savings on grocery shopping. And it works.

And make no mistake, it attracts the well heeled as much as it attracts

Raju from across the street. That has worked for Big Bazaar is that it has

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been able to connect with the customers in the right manner. They had

filled a need gap which was there in the market. Apart from that, their

competence in providing products at lowest prices and great quality in an

ambience much better than what the customers were used to, has also

contributed to their success.

The focus is on continuing to provide very high ‘value for money’ to

customers by providing exciting offers throughout the year. It will be

facilitated by constantly working on its buying and supply chain

efficiencies. Having already achieved economies of scale and size, they

intend to better their gains by opening new stores regularly.

One of the key philosophies of Mr Kishor Biyani that is highly followed

is ‘Rewrite rules, retain values.’ In essence, it means they don’t take

anything as fixed. They are constantly on the lookout for finding new

ways and means to improve the current state of affairs. Thus, innovation

is a very important aspect of their working strategy. The other very

important philosophy is that of Indian ness. All their concepts and

formats as well as the way they go about things are very Indian. The way

Big Bazaar is designed and the way the whole concept has developed

reflects a sense of Indian ness. This is a well articulated print

advertisement campaign for Big Bazaar to highlight their unique

marketing strength, ‘extreme low price’. However, even before this idea

has been exercised to highlight a product by placing it in a stark different

environment. Nevertheless, this advertisement campaign is very well

crafted out. Further, the ad is not at all confusing and it straight way

conveys the message without loosing focus.

Like the marketing strength of the company, this campaign is too cost

effective. Further, the ad has the capacity to attract immediate people’s

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attention. The tag line of the ad is ‘Surprisingly Inexpensive’. The ad has

been created by Mudra DDB Communication.

The company recorded around one million foot fall from 26th to 28th

January this year in 2007,which were termed as “SABSE SASTE 3

DIN”,”MAHA SAVING OFFER”, which was 43 crore last year.

This was a special print advertisement of Big Bazaar prepared for

women’s day sales promotion, where through the advertisement it is

shown that forget about the common females even all Hindu goddesses

are busy in shopping at BIG bazaar and celebrating their day.

This was the print advertisement that Big Bazaar came out with which

was regarding its exchange offer sales promotion, where an old man is

hiding himself behind sofa, because now every old thing can be

exchanged with new one at Big Bazaar.

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PRODUCT PROFILE: PRODUCTS

2.1 Different Products available in Big Bazaar.

1. MENS WEAR

Shirts Trousers T-Shirts

Accessories

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2. WOMENS WEAR

Salwar Kameez Saree Ethnic Top

Casuals Others

3. ELECTRONICS

TVS IPODS

MP3 & MP4 Player

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4. Computers & Peripherals

Desktops Laptops

Keyboard &Mouse

5. Home & Kitchen

Kitchen Appliances Kitchenware

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Barware

6. Mobiles & Phones

GSM Mobiles Land Phones

Bluetooth Headsets

7. Memory & Storage

Memory Cards Pen drives

Hard Drive CDs

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8. Health & Fitness

Health equipments

9. Cameras

10.Books

11. Jewellery

Diamond Bangles

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12. Kids Wear

13.Watches

14.Gift Vouchers

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Others

Luggage

Shoes

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Home linen

Food Bazaar

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Furniture

FUTURE PLANS OF BIG BAZAAR

Recently they are interested to expand their retail business in Mysore and

along with that they are interested to establish two retail outlets in

Gulbarga District.

Big Bazaar plans 300 stores by 2010-11

NEW DELHI:

Kishore Biyani-promoted Future Group's retail chain Big Bazaar is

planning to have 300 hypermarkets in the country by 2010-11.

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The company is also mulling to increase its annual turnover to Rs 13,000

crore by 2010-11, up from Rs 3,600 crore last fiscal on the back of its

expansion.

"We started with our first store in October 2001 and have now crossed the

hundred mark with three stores opened today in Pune, Cut tack and Delhi.

Our plan is to increase the number of our stores to 300 by end of the

2010-11 fiscal," Big Bazaar Chief Executive Officer Rajan Malhotra

Said”. .

Organizational Structure (Zonal)

President

Vice President

Marketing HR Category Manager Finance Manager Operation

Manager Manager Head

Marketing HR Category Finance Head Store manager Head Head Head

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Brand Ambassadors of the Big Bazaar

VISSION

“TO EMERGE AS THE BEST AND THE MOST PROFITABLE RETAILER IN INDIA”

MISSION"TO SPEARHED HIS COMPANY TO BE THE FINEST AND THE

MOST PREFERRED CHAIN IN RETAILING”

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VISHAL MEGA MART

Vishal Mega Mart

What started as a humble one store enterprise in 1986 in Kolkata

(erstwhile, Calcutta) is today a conglomerate encompassing 183

showrooms in 24 states / 110 cities .India’s first hyper-market has also

been opened for the Indian consumer by Vishal. Situated in the national

capital Delhi this store boasts of the single largest collection of goods and

commodities sold under one roof in India. The group had a turnover of

Rs. 1463.12 million for fiscal 2005, under the dynamic leadership of

Mr.Ram Chandra Agarwal . The group had a turnover of Rs 2884.43

million for fiscal 2006 and Rs. 6026.53 million for fiscal 2007.

The group’s prime focus is on retailing. The Vishal stores offer

affordable family fashion at prices to suit every pocket. The group’s

37

philosophy is integration and towards this end has initiated backward

integration in the field of high fashion by setting up a state of the art

manufacturing facility to support its retail endeavors. Vishal is one of

fastest growing retailing groups in India. Its outlets cater to almost all

price ranges. The showrooms have over 70,000 products range which

fulfills all your household needs, and can be catered to under one roof. It

is covering about 29, 90, 146 sq. ft. in 24 states across India. Each store

gives you international quality goods and prices hard to match. The cost

benefits that is derived from the large central purchase of goods and

services is passed on to the consumer.

The group’s philosophy is integration and towards this end has initiated

backward integration in the field of high fashion by setting up a state of

the art manufacturing facility to support its retail endeavors.

Vishal is one of fastest growing retailing groups in India. Its outlets cater

to almost all price ranges. The showrooms have over 70,000 products

range which fulfills all your household needs, and can be catered to under

one roof. It is covering about 29, 90, 146 sq. ft. in 24 states across India.

Each store gives you international quality goods and prices hard to match.

The cost benefits that is derived from the large central purchase of goods

and services is passed on to the consumer.

There are three classes of consumers the lower class is restricted only to

unorganized retail, upper class consumers are limited and scattered.

According to the Vishal Retailing Strategy, they are targeting middle

class as it is the largest consumer base in India and can be sold off then in

large volumes because with the increasing purchasing power the middle

class is shifting towards organized retail.

38

The group had a turnover of Rs. 1463.12 million for fiscal 2005, under

the dynamic leadership of Mr.Ram Chandra Agarwal . The group had a

turnover of Rs 2884.43 million for fiscal 2006 and Rs. 6026.53 million

for fiscal 2007.

Product of vishal mega mart:

Garment Department

Overview:

Product lines and the quality of the products in the Garment Section are

basically for the medium and average grade income level people and

price range in this section is averagely lies between Rs.250 to 600.

Gifts Department

Overview:

Product lines and the quality of the products in the Gifts Section are

basically for the high and medium grade income level people and price

range in this section is averagely lies between Rs.500 to 800.

Findings:

In the gifts section we have found that stock of gift items is very low and

also products categories are not focusing to low grade income level

customers and the gifts department is referred to high class products.

Music Department

Overview:

Music section consist of Music CD’s, Game CD & DVD’s and also

Movie DVD’s. Product lines and the quality of the products in the Music

Section are basically for the high and medium grade income level people

and price range in this section is averagely lies between Rs.150 to 500.

39

OBJECTIVES

MAIN OBJECTIVE –

To do comparative study on the influences of Advertising and

Sales promotion on the sales of Big Bazaar and Vishal Mega Mart.

SECONDARY OBJECTIVES-

To find the most effective tool of Sales promotion technique to

entice customers used by Retail businesses.

To study various advertising and sales promotion techniques used

by Big Bazaar and Vishal Mega Mart.

To find out the influence of Advertising and Sales promotion on

the sales of Big Bazaar and Vishal Mega Mart.

40

RESEARCH METHODOLOGY

MEANING OF RESEARCH-

Research is an active, diligent, and systematic process of inquiry aimed at

discovering, interpreting, and revising facts. This intellectual

investigation produces a greater knowledge of events, behaviors, theories,

and laws and makes practical applications possible. The term research is

also used to describe an entire collection of information about a particular

subject, and is usually associated with the output of science and the

scientific method

RESEARCH DESIGN

DESCRIPTIVE RESEARCH-

Descriptive research includes surveys and facts findings enquiries of

different kinds. The major purpose of Descriptive research is the

description of the state of affairs, as it exists at present. It provides the

data about the population or universe being studied. Descriptive research

is used when the objective is to provide a systematic description that is as

factual as accurate possible. In this project we have to find whether

Advertising and sales promotion influences the sales of the Big Bazaar

and Vishal Mega Mart, therefore our research is descriptive.

SAMPLE SIZE- The sample size that we have taken is 50 units, out of

which the number of males and females were as follows-

Male-28 in number

Female- 22 in number

SAMPLE AREA- Since the research is on Retail Industry so the sample

area that is covered is as follows-

PRIMARY AREA – Areas near the malls.

41

SECONDARY AREA- Areas of Zirkpur and Panchkula.

SAMPLE DESIGN- Simple random method

SOURCES OF DATA COLLECTION- Data collected in this project

is both collected both from both primary and secondary sources of data

collection which are as follows-

PRIMARY DATA - Interview, Questionnaire

SECONDARY DATA - Internet, Magazines, Books, News Paper etc

42

LIMITATIONS

Time was the major constraint, which prevented me to put in more

effort.

Some people left few questions unanswered.

Some of the respondents were not ready to fill the questionnaire.

Not all the respondents were cooperative thus it was difficult to

convince them for filling up the questionnaire.

Some of the respondents might have got biased while filling up the

questionnaire.

I made my best efforts in conducting the research but might have

lacked somewhere because of lack of expertise in conducting such survey

based researches.

43

FINDINGS AND ANALYSIS

FREQUENCY TO VISIT MARKET FOR SHOPPING

Frequency Percent

Valid

Daily 5 10.0

Twice a week

20 40.0

Fortnightly 11 23.0

Monthly 14 27.0

Total 50 100.0

Daily Twice a week Fortnightly Monthly05

1015202530354045

Frequency to visit market for shopping

Freq

uenc

y

FINDING -Maximum people that are 40% like to visit market twice a

week, 27% of the people prefer to visit monthly, 23% of people visit

44

fortnightly and very little percentage that is 10% like to visit daily to the

market.

LIKE SHOPPING DURING SALES PROMOTION OFFERS

Frequency Percent

Valid

Highly agree

12 24.0

Agree 28 57.0

Not sure 8 15.0

Disagree 2 4.0

Total 50 100.0

Highly agree Agree Not sure Disagree0

10

20

30

40

50

60

Like shopping during sales promotion offers

Freq

uenc

y

45

FINDING- Sales promotion is very effective tool to entice people for

shopping as great number of people that is more than 50% agree that they

like to shop during various sales promotions

MOST ATTRACTIVE SALES PROMOTION OFFERS

Frequency Percent

Valid

Discount sales 26 53.0

Buy 1 get 1 free 10 19.0

Free gifts 9 17.0

Exchange offers 3 6.0

Loyalty programe

1 2.0

Games and contests

1 3.0

Total 50 100.0

Discount sales

Buy 1 get 1

free

Free

gifts

Exchange of-fers

Loyalty programeGames and contests

Most attractive sales promotion offers

46

FINDING- Among the various sales promotions offered by the Big

Bazaar discount sales is the most preferred sales promotion by the

customers. Around more than 50%of the people like to shop during

discount sales.

VISIT TO BIG BAZAAR

Frequency Percent

Valid

Yes 40 80.0

No 9 19.0

Can’t Say

1 1.0

Total 50 100.0

Yes No Can't Say0

102030405060708090

Visit to Big Bazaar

Freq

uenc

y

47

FINDING- Around 80% of people visit to Big Bazaar out of the 50

people surveyed.

FREQUENCY TO VISIT BIG BAZAAR

Frequency Percent

Valid

Weekly 7 14.0

Fortnightly 5 11.0

Monthly 14 28.0

Sometimes 15 30.0

Total 42 83.0

Missing System 8 17.0

Total 50 100.0

Weekly Fortnightly Monthly Sometimes05

101520253035

Freequency to Visit to Big Bazaar

Freq

uenc

y

48

FINDING-Maximum people visit sometimes to big bazaar, that less than

monthly though the difference between the people who visit monthly and

who visit sometimes is very insignificant.

VISIT TO VISHAL MEGA MART

Frequency Percent

Valid

Yes 35 70.0

No 10 19.0

Other 5 11.0

Total 50 100.0

Yes No Other0

10203040

50607080

Visit to Vishal Mega Mart

Freq

uenc

y

49

FINDING- Around 70% of people visit to Vishal Mega Mart out of the

50 people surveyed.

FREQUENCY TO VISIT VISHAL MEGA MART

Frequency Percent

Valid

Weekly 7 14.0

Fortnightly 8 16.0

Monthly 12 24.0

Sometimes 15 30.0

Total 42 84.0

Missing System 8 16.0

Total 50 100.0

50

Weekly Fortnightly Monthly Sometimes05

101520253035

Freequency to Visit to Vishal Mega Mart

Freq

uenc

y

FINDING-Maximum people visit sometimes to Vishal Mega Mart, that

less than monthly though the difference between the people who visit

monthly and who visit sometimes is very insignificant.

RECALL OF BIGGEST ADVERTISING CAMPAIGN OF

BIG BAZAAR

Frequency Percent

Valid

Yes 14 28.0

No 35 70.0

Can’t Say

1 2.0

Total 100 100.0

51

Yes No Can't Say0

1020304050607080

Recall of biggest advertising campaign of Big Bazaar

Freq

uenc

y

FINDINGS- Among the 50 respondents 70% were not able to recall its

latest largest advertising campaign ,which means that Big Bazaar is very

weak at its advertising ,it has to increase its reach through all kinds of

media not only during its sales promotion campaigns but also through out

the year.

RECALL OF BIGGEST ADVERTISING CAMPAIGN OF

BIG BAZAAR

Frequency Percent

Valid

Yes 26 32.5

No 53 66.3

Can’t Say

1 1.3

52

Total 80 100.0

Yes No Can't Say0

10

20

30

40

50

60

Recall of biggest advertising campaign of Big BazaarFr

eque

ncy

FINDING- Even out of people who visit Big Bazaar they were also not

able to recall its latest advertising campaign so it implies that people

visiting Big Bazaar are due to other reasons but not advertising

RECALL OF BIGGEST ADVERTISING CAMPAIGN OF VISHAL

MEGA MART

Frequency Percent

Valid

Yes 30 60.0

No 19 38.0

Can’t Say

1 2.0

Total 100 100.0

53

Yes No Can't Say0

10

20

30

40

50

60

70

Recall of biggest advertising campaign of Vishal Mega Mart

Freq

uenc

y

FINDINGS- Among the 50 respondents 60% were able to recall its

latest largest advertising campaign, which means that Vishal mega mart is

very Strong at its advertising as compared to Big Bazar.

RECALL OF BIGGEST ADVERTISING CAMPAIGN OF VISHAL

MEGA MART

Frequency Percent

Valid

Yes 20 66.3

No 9 32.5

Can’t Say

1 1.2

54

Total 30 100.0

Yes No Can't Say0

10

20

30

40

50

60

Recall of biggest advertising campaign of Vishal Mega Mart

Freq

uenc

y

FINDING- Out of people who visit Big Bazaar they were also able to

recall its latest advertising campaign so it implies that people visiting

Vishal Mega Mart are due to advertising.

PREFERENCE FOR SHOPPING RANK WISE AT BIG BAZAAR

Frequency Percent

Valid

Very poor 6 12.0

Poor 5 10.0

Average 8 16.0

Good 10 20.0

Very good 20 40.0

55

Total 49 98.0

Missing System 1 2.0

Total 50 100.0

Very poor Poor Average Good Very good05

1015202530354045

Preference for shopping rank wise at big bazaar

Freq

uenc

y

FINDING-Consumers prefer Big Bazaar for shopping; around 41%

people rate it as very good for shopping.

PREFERENCE FOR SHOPPING RANK WISE AT VISHAL

MEGA MART

Frequency Percent

Valid

Very poor 5 10.0

Poor 4 8.0

Average 5 10.0

Good 15 30.0

Very good 20 40.0

56

Total 49 98.0

Missing System 1 2.0

Total 50 100.0

Very poor Poor Average Good Very good05

1015202530354045

Preference for shopping rank wise at Vishal Mega Mart

Freq

uenc

y

FINDING-Consumers prefer Big Bazaar most for shopping; around 51%

people rate it as very good for shopping which is more than that of big

bazaar.

RECOMMENDATIONS

Big Bazaar should increase its aisle area for more convenient

shopping to its customers to compete with Vishal Mega Mart.

It should improve its ambience as its closest competitors are having

edge over it on this parameter.

Big Bazaar should have more of cash counters so that people does

not have to stand in long queue in order to get billing.

57

Vishal Mega Mart should work on its advertising, though it is

known for its creative advertising but the message should reach to

each of the target customer so should use more rigorous use of all

types of media.

It should change its Tagline which gives the same message but is

still easily distinguishable, as most of its competitors are having

almost similar tag lines that creates jargon for customer.

It can convert shopping in to a great experience by playing some

good music.

Big Bazaar has to improve its quality of products especially in

apparels.

CONCLUSION

The conclusion of any matter is very important in my survey report I

compare Big Bazar product and services with Vishal Mega Mart. These

two retail outlets have best plans. Both the retail outlets offer products

and services at reasonable rates at special discounts and schemes from

time to time.

58

Where Big Bazar is known for its quality food products and electronics

Vishal Mega Mart is known for its quality apparels.

But both these outlets all strongly completing against each other by

rigorous campaigning and advertising and providing special discounts

and schemes.

59

BIBLIOGRAPHY

WEB LINKS-

http://www.media4exchange.com/

http://www.wark.com/

http://www.ibef.org/

http://www.economicstimes.com/

http://www.bigbazaar.com/

http://www.etretailbiz.com/

http://www.magportal.com/

http://www.retailindustry.about.com/

http://www.adpunch.com/

http://www.hindubusinessline.com/

BOOKS REFERED-

Belch. E. George and Belch. A. Michael, “Advertising and

Promotion “Sixth Edition, Tata McGraw Hill.

Kotler Philip,” Marketing management “Eleventh Edition, Pearson

Education.

Beri G.C.,”Marketing Research” Third Edition, Tata McGraw Hill.

60

QUESTIONNAIRES

Questionnaire on Marketing Strategies (Advertising and Sales

promotion) of Big bazaar and Vishal Mega Mart.

Date-------------

Q. No. --------------

Centre-------------

Non -Users

Dear Sir /Madam

i are doing a brief survey to find the effect of Advertising and Sales

promotion on sales of Big Bazaar and Vishal Mega Mart. We would be

grateful if you spare few minutes and participate in it. Thank you for your

cooperation.

1. How often do you visit market for shopping?

Daily Twice a week Monthly Fortnightly

2. You like to shopping during various sales promotion offers –?

Highly agree Agree Not sure Disagree Highly Disagree

3. Which type of Sales promotion offers you find most attractive?

Discount sales

Buy 1 get 1 free

Free gifts

Exchange offers

61

Loyalty Program

Games and Contests

Others, Specify__________________________________

4. Do you visit Big Bazaar for shopping?

Yes No

If yes then how often?

Weekly Fortnightly Monthly Sometimes

Do you visit Vishal Mega Mart for shopping?

Yes No

If yes then how often?

Weekly Fortnightly Monthly

5. Can you recall the biggest advertising campaign of Big Bazaar?

Yes No

If yes then specify _______________________________________

6. Can you recall the biggest advertising campaign of Vishal Mega

Mart?

Yes No

If yes then specify _______________________________________

7.Given a choice for shopping, where would you like to go?

Rank according to preference on scale of 1 to 5 (1= Very Poor, 5= Very

Good)

BIG

BAZAAR

SPENCER SUBHIKSHA SALASAR VISHAL MEGA

MART

62

8. What is combination of colors in logo of Big Bazaar?

Red and White

Blue and Green

Orange and Blue

Black and White

9. What is color in logo of Vishal Mega Mart?

Red

Blue

Orange

Black

10. Do you feel the same comfort while shopping in Big

Bazaar/Vishal Mega Mart even during the ‘MAHA SALE OFFERS’

also?

Yes No Not sure

11.What is the Tag line of Big Bazaar?

______________________________________

12. What is the Tag line of Vishal Mega Mart?

______________________________________

13.Can you suggest something that Big Bazaar or Vishal Mega Mart

can do to improve its services?

___________________________________________________________

63

DEMOGRAPHICS

Name ______________________

Gender-

Male Female

Age Group-

16-25 Years 25-35 Years 35-above

Occupation –

Student Business Service Others

Income (per annum) –

Less than 2.5 Lakes 2.5- 4.5 Lakes More than 4.5 Lakes

−§−

64