Jagdeep Report 2

7/31/2019 Jagdeep Report 2

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Merchandising at big bazaarMerchandising at big bazaar

SUBMITTED BYSUBMITTED BY

Sachin GautamSachin GautamMBA(int)BBA(int)BBA

Enrolment no.: 2007RBA017Enrolment no.: 2007RBA017

FOR THE PARTIAL FULFILMENT OF THE REQUIREMENTFOR THE PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE AWARD OFFOR THE AWARD OF

MASTER OF BUISINESS ADMINISTRATIONMASTER OF BUISINESS ADMINISTRATION

UNDER THE GUIDANCE OFUNDER THE GUIDANCE OF UNDER THE SUPERVISION OFSUPERVISION OFMs. Jagrati SinghMs. Jagrati Singh Mr. Sameer VajpayeeMr. Sameer Vajpayee

INSTITUTE OF BUISENESS MANAGEMENTINSTITUTE OF BUISENESS MANAGEMENT

MANGALAYATAN UNIVERSITY,MANGALAYATAN UNIVERSITY,3333rd KM STONE,ALIGARH-MATHURA HIGHWAY,KM STONE,ALIGARH-MATHURA HIGHWAY,

BESWAN,ALIGARHBESWAN,ALIGARH

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STUDENT DECLARATION

I, SACHIN GAUTAM student of MBA(int)BBA 7th Semester Enrol.

No. 2007RBA017, Mangalayatan University, Beswan Aligarh hereby

declare that the Summer training Project titled MERCHANDISING AT

BIG BAZAAR is the outcome of my own work and the same has not

been submitted to any other University/ Institution for the award of any

degree or professional diploma.

SACHIN GAUTAM

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INSTITUTE OF BUSINESS MANAGEMENT

Certificate

This is to certify that the project training work done on

MERCHANDISING AT BIG BAZAAR is a bonafide work carried

out by Mr. SACHIN GAUTAM a student of MBA(int)BBA 7th

Semester Enrol. No. 2007RBA017 under my supervision and guidance.The project is submitted towards the partial fulfillment of 4 years full time

Master of Business Administration.

The work done by him is original and has been submitted anywhere

for any purpose.

We wish him all the best for all the future endeavors.

Ms. Jagrati Singh K.V.S.M. KrishnaName & Signature of Faculty Dean IBM

ACKNOWLEDGEMENT

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It is inevitable that thoughts and ideas of other people tend to drift into the

subconscious when one feels to acknowledge to helped drive from others.

I take this opportunity to express my gratitude to my guide Ms. JagratiSingh, for the encouragement and thorough support. His inputs and

suggestions were a source of enlightenment. I would always look up to his

for further reference and guidance. I am indebted to him for all kinds of

support. Insights, and valuable inputs and above all his precious time from

time to time which helped me throughout.

I would like to express my sincere thanks to all the respondents and

corporate people and employees who took their time off and helped me in

filling my questionnaire and were very forthcoming in their views and

provided authentic information.

Last but not the least I would like to acknowledge my family and all my

friends who were of great support and in successful compilation of the

project report.

I sincerely hope that the hard work I have put in the project report will be

appreciated.

SACHIN GAUTAM

Executive Summary

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Retailing is emerging as a sunrise industry in India and is presently

the largest employer after agriculture. In the year 2004, the size of

Indian organized retail industry was Rs 28,000 Crores, which was only

3% of the total retailing market. Retailing in its present form started

in the latter half of 20th Century in USA and Europe and today

constitutes 20% of US GDP. It is the 3rd largest employer segment in

USA. Organized retailing in India is projected to grow at the rate of

25%-30% p.a. and is estimated to reach an astounding Rs 1,00,000

Crores by 2010. The contribution of organized retail is expected to

rise from 3% to 9% by the end of the decade. The projection for the

current year ie 2005 is Rs 35,000 Crores. In India, it has been found

out that the top 6 cities contribute for 66% of total organized

retailing. With the metros already been exploited, the focus has now

been shifted towards the tier-II cities**. The 'retail boom', 85% of

which has so far been concentrated in the metros is beginning to

percolate down to these smaller cities and towns. The contribution of

these tier-II cities to total organized retailing sales is expected togrow to 20-25%. In the year 2004, Rs 28,000 Crores organized retail

industry had Clothing, Textiles & fashion accessories as the highest

contributor (39%), where as health & beauty had a contribution of

2%. Food & Grocery contributed to 18% whereas Pharma Retail had a

contribution of 2%. Pantaloon Retail (India) Limited, is Indias leading

retailer that operates multiple retail formats, the company operates

over 5 million square feet of retail space, has over 450 stores across

40 cities in India and employs over 18,000 people.

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CONTENTS

Introduction

Literature Review

Objective of the study

Research Methodology

Overview of Indian Retail industry

Profile of the organization

Discussion on training

Study of selected research problem

Limitation and Recommendation

Summary and conclusion

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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 retailis 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) AMOUNTOFSERVICE

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).

Limited service retailers

Retailers such as Sears and J. C. Penney, provide more salesassistance because they carry more shopping goods about which

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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) PRODUCTLINE:

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 differentproductsthat the store carries.

Specialty storescarry a narrowproduct 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 notmake a store a discount store. A true

discount store regularlysells its merchandise at lower prices, offering

mostly national brands, not inferior goods.

4)CONTROLOF 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,

andthemerchandising 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 voluntarychain is a wholesaler-sponsored group of independent

retailers that engages in-group buying and common merchandising.

The retailercooperative 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 pullingpower 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.

Non-Store Retailing

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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 fromcatalogs, 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.

Emerging Trends In Indian Retail Industry

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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, 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 Shoppers 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 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

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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 underorganized 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 oforganized 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 ofanalogous 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

dcor 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 atcosts 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, Mehrasons

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 leverage its scale to drive merchandise costs down,

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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.

Review of Literature

When countries grow, more people buy more things. More products

become available. They need more shelf space. The result: a retail

revolution. Thats whats happening in India today. A new generation

of retail outlets is emerging, which will change the landscape of the

countrys cities.

Merchandising mix represents in anyany retail store greatly

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Influences and the customer satisfaction level and the customer

perception towards that store.merchandising is one of the hot issue in

today retail comptetitor world which is very imp.for all the retail store

to follow that.this study was done to know that ,to consumers are

really satisfted with the merchandising mix present in the big bazzar

also find out how the store environment influences the shopping

behavior of the customer and to know which section in big bazzar how

good merchandising mix and how the store environment be

important.

OBJECTIVE OF THE STUDY

1. To find out the contribution of Bin Sale in total sale of Big

Bazaar & food Bazaar.

2. To determine the customer satisfaction level towards the store

environment.

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3. To analyses how the merchandising mix influences the customer

level.

4. To determine the Big Bazaar has satisfied merchandising mix.

5. To analyses how the store environment can be important.

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

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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- 28in 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

SECONDARY AREA-Areas of Rohini.

SAMPLE DESIGN- Simple random method

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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

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LIMITATIONS

1. The lack of detailed understanding of a relationship between

urban farm & travel behavior remains an obstacle to a more

refined impact analysis.

2. The challenge arises is a part from a mismatch b/w the data

gathering focus of regional transportation planning and

requirement of smaller scale analysis of land transportation

relationship and their effect on travel behavior.

3. A second limitation, made worse by the lack of data is the

problem of multi colincarity.

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Marketing Strategy

The company is forking out over Rs 100 crore (Rs 1 billion) for

this massive expansion of the 'Big Bazaar' brand across Mumbai,Kolkata, Nagpur, Bhubaneswar and Ahmedabad. Biyani is also

offering innovations that retailers abroad don't offer. He has recently

launched a new section in his hypermarket called Gold Bazaar where

jewellery is bought and sold.

And he is also setting up Victoria Memorial, a 150,000 sq ft shopping

mall in Bangalore. Victoria Memorial will experiment -- following theSelfridges model -- by displaying high-profile readymade brands and

collecting a commission on their sales.

2.5) SWOT Analysis

Strengths:

1) Good supply chain management2) Variety of products available under one roof

3) Higher PROFIT margins on sold products

4) Good brands available at affordable prices

5) Cheap goods available to the consumers due to the absence of

middlemen

Weakness:

1) High attrition rate

2) Employees are not well trained in handling esteemed customers

3) Sub standard Quality of goods

4) There is no proper channel of advertising for promoting their

products

Opportunities:

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1) Huge potential rural market to be tapped

2) Opportunities available in the cosmetics industry

Threats:

1) Many major players are foraying in the retail sector like

walmart,reliance which may hamper their margins

2) Customers may lose their trust on the company due to the

supply of substandard products and may even switch to some

other company

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Michael Porters Model

Threat of New Entrants:

Economies of scale (minimum size requirements for profitable

operations)

- The new entrants that are entering the retail scenario

today are those which have with them a lot of backing from the

financial institutions who are willing to finance their ventures.

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- Taking for example the case of Reliance Fresh which is

entering the industry with a corpus of Rs. 25,000 crore.

- E.g. Reliance Retail, which made its debut on 3rd

November, 2006, in Hyderabad with the opening of a cluster of

11 stores and which now has 22 stores in operation in

Hyderabad, Secunderabad and Jaipur is gearing up to enter its

home state Gujarat with a big bang.

High initial investments and fixed costs

- The cost of initial investments is very high as the prices of

real estates have started going very high.

- The recovering the initial costs would take a long time as

the initial phase will be involved in attracting the customers and

it will take time until customers will become the regular.

- Companies coming in are not wary of the high initial costs

involved as they are putting their money in for the long term asthe retail industry in India is only in its nascent stage.

Cost advantages of existing players due to experience

curve effects of operation with fully depreciated assets

- Existing players have the first movers advantage in the

market.

- They already have their brand value set and the

customers are aware of the brand.

Scarcity of important resources, e.g. qualified expert

staff

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- As the there is rapid expansion in this industry and there

are more and more new players coming in.

- The availability of skilled labor is very scarce in the

current scenario.

- The existing staff is already employed by existing players.

- Due to a lot of poaching in the industry, the pay packets

keep getting higher to avoid incurring training costs.

Threat of Substitutes

Results of an AC Nielsen study for the period 1993-99,

published in 2000 showed `independent retailers' declined by 21

per cent while `multiple retailers' increased by 18.5 per cent.

Indians love to chat with the shopkeeper and the purchase

decision is heavily influenced by the `expert' comments of the

shopkeeper.

The friendly greeting and affection of your regular grocer cannot

be easily replaced.

The big retailers tend to be impersonal, there is no help around,

and the sheer range of choice can be confusing.

Competitive Rivalry between Existing Players

There are many players of about the same size

The Shoppers Stop headed by the Raheja Group, Vishal Mart in

North India, Spencer Hypermarket Formats are the existing players

who are about the same size as the Big Bazaar and similar

expansion policies.

There is not much differentiation between players and

their products

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The existing players dont have much difference in terms of the

product range they are offering to the customers. This thus results

in price competition.

Low market growth rates

The growth of a particular company is possible only at the expense

of a competitor and capitalizing on the mistakes committed by

them.

Barriers for exit are high

High investments by the players makes it very difficult for them to

exit the current scenario in the industry.

MARKETING

According to Phillip Kotler, Marketing is the process of planning

and executing the conception pricing, promotion and distribution of

goods, ideas and services to create exchanges that satisfy individual

and organizational goals.

The key achieving organizational goals consist of being more

effective then competitions in integrating next activities towards

determining and satisfying the needs and wants of market. It is

therefore important to determine market potential for the various

goods so that they can be provided to the target customer effectively

and efficiently.

Marketing is a comprehensive term and it includes all resources

for a set of activities necessary to direct and facilitate the flow of

goods and services from producer to consumer in the process of

distribution. Human efforts, finance and management constitute the

primary resources of marketing. There are twine objective most

significant to marketing viz:-

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1. Matching the product or services with demand.

2. The transfer of ownership and possession at every stage in

the flow of goods from the producer to the consumer.

3. Marketing comprises all activities involved in the

determination and satisfaction of consumer needs at a profit.

RETAILING

Retailing consists of business activities involved in selling goodsand services to consumers for there personal, family or household

use. It includes every sale of products to the final consumer. It is the

last stage in the distribution process. A retailer or retail store is any

business enterprise whose sales volume comes primarily from

retailing. Any organization selling to the final consumer whether

manufacturer, wholesaler or retailer is doing retailing. It does not

matter where how the goods are sold or where they are sold.

There is a tendency to think of retailing as primarily including

the sale of tangible goods, but it is essential to recognize that retailing

also includes the sale of services. The word retailing is derived from

the French word retailer which means to cut up.

INDIAN RETAIL SECTOR

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SS

Organized retailing has finally emerged from the shadows of

unorganized retailing and is contributing significantly to the growth of

Indian retail sector.

Some facts about the Indian retail sector:

Retail is Indias largest industry, accounting for over 10% of the

countrys GDP and around 8% of the employment.

The sector is expected to increase three fold from the present Rs 5

billion.

Organized retail will form 10% of total retailing by the end of this

decade (2010).

From 2006 to 2010, the organized sector will grow at the CAGR

(Cumulative Annual Growth Rate) of around 49.53% per annum.

Hypermarket is emerging as the most favorable format for the time

being in India.

The Indian retailing sector is at an inflexion point where the growth

of organized retailing and growth in the consumption by the Indian

population is going to take a higher growth trajectory. The Indianpopulation is witnessing a significant change in its demographics. A

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large young working population with median age of 24 years, nuclear

families in urban areas, along with increasing working-women

population and emerging opportunities in the services sector are

going to be the key growth drivers of the organized retail sector in

India.

THE INDIAN RETAIL SECTOR

India is the country having the most unorganized retail market.

Traditionally it was a family's livelihood, with their shop in the front

and house at the back, while they run the retail business.More than

99% retailer's function in less than 500 square feet of shopping

space. Global retail consultants KSA Technopak have estimated that

organized retailing in India is expected to touch Rs 35,000 crore in

the year 2005-06. The Indian retail sector is estimated at around Rs

900,000 crore, of which the organized sector accounts for a mere 2

per cent indicating a huge potential market opportunity that is lying in

the waiting for the consumer-savvy organized retailer. Purchasing

power of Indian urban consumer is growing and branded merchandise

in categories like Apparels, Cosmetics, Shoes, Watches, Beverages,

Food and even Jewellery, are slowly becoming lifestyle products that

are widely accepted by the urban Indian consumer. Indian retailers

need to advantage of this growth and aiming to grow, diversify and

introduce new formats have to pay more attention to the brand

building process. The emphasis here is on retail as a brand rather

than retailers selling brands. The focus should be on branding the

retail business itself.There is no doubt that the Indian retail scene is

booming. A number of large corporate houses Tata's, Raheja's,

Piramals's, Goenka's have already made their foray into this arena,

with beauty and health stores, supermarkets, self-service music

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stores, new age book stores, every-day-low-price stores, computers

and peripherals stores, office equipment stores and home/building

construction stores. Today the organized players have attacked every

retail category.

The Indian retail scene has witnessed too many players in too

short a time, crowding several categories without looking at their core

competencies or having a well thought out branding strategy. The

growth rate of super market sales has been significant in recent years

because greater numbers of higher income Indians prefer to shop at

super markets due to higher standards of hygiene and attractive

ambience. With growth in income levels, Indians have started

spending more on health and beauty products. Here also small,

single-outlet retailers dominate the market. In recent years, a few

retail chains specialised products have come into the market.

Although these retail chains account for only a small share of the total

market, their business is expected to grow significantly in the future

due to the growing quality consciousness of buyers for these products

.Numerous clothing and footwear shops in shopping centres and

markets operate all over India. Traditional outlets stock a limited

range of cheap and popular items; in contrast, modern clothing and

footwear stores have modern products and attractive displays to lure

customers. With rapid urbanization, and changing patterns of

consumer tastes and preferences, it is unlikely that the traditionaloutlets will survive the test of time. Despite the large size of this

market, very few large and modern retailers have established

specialized stores for products.

There seems to be a considerable potential for the entry or

expansion of specialized retail chains in the country. The Indian

durable goods sector has seen the entry of a large number of foreign

companies during the post liberalization period. A greater variety of

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consumer electronic items and household appliances became available

to the Indian customer. Intense competition among companies to sell

their brands provided a strong impetus to the growth for retailers

doing business in this sector. Increasing household incomes due to

better economic opportunities have encouraged consumer

expenditure on leisure and personal goods in the country. There are

specialized retailers for each category of products (books, music

products, etc.) in this sector. Another prominent feature of this sector

is popularity of franchising agreements between established

manufacturers and retailers. A strong impetus to the growth of retail

industry is witnessed by economic boom and driver of key trends in

urban as well as rural India.

OPPORTUNITIES IN VARIOUS SEGMENTS:

These are different segments cercerned with food, beverage, grocery,

fashion & life style etc.

EMPLOYMENT OPPORTUNITIES IN INDIAN RETAIL

SECTOR

URBAN EMPLOYMENT :- Employment opportunities for

youth, According to PricewaterhouseCoopers (PwC) it is said that

retailing will create additional eight million jobs though retailing In

India and will benefit population by employing local (Urban) youth

and others directly or indirectly. But it is feared that our friendly

neighborhood kirana shops where, one can make purchases in small

quantities and return the goods if not found good and many more

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friendly services, will be on the verge of disappearance there by

creating a vacuum which cannot be filled by the big organized one.

RURAL EMPLOYMENT: - Contract Farming is the new mantra

of organized retailing in India. There is no doubt that the farmers are

in some way benefited by contract faming where in, the latest

technology and equipment and scientific farming is done by farmers

with the help of retailers there by increasing the productivity in

agriculture, and uniform payment for their produce through out the

crop irrespective of fluctuations in market price. But one should also

focus on the freedom of farmers to sell their produce at will. It is

evident in India that rich farmers who possess vast lands are the

beneficiary but farmers who have little land and dependent on other

trades are marginally benefited by this kind of business.

R ETAIL : A STRONG PILLAR OF INDIAN ECONOMY

Retailing is the last mile infrastructure to access and deliver goods to

consumers. Retail forms the backbone of the nation's delivery system

and its importance can be exemplified by the network of 15,000 KVIC

outlets which support 4 lakh plus small and medium handicraft

manufacturers across the country.

It also serves as the last mile infrastructure to the manufacturers as

well as the government for tax collection. For instance, the success of

the VAT proposal depends on its being able to be implemented at the

retailer level, but nobody has consulted with them as a body yet on

this issue. Furthermore, retailing is also an important and large

contributor to the GDP and a major employment generator. In India,

for the last four years its contribution to the GDP was around 13%.

The sector gainfully employs 6-7% of the total workforce in India.

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COMPANY PROFILE

Pantaloon Retail India Ltd, is Indias leading retail company

with presence across food, fashion, home solutions and consumer

electronics, books and music, health, wellness and beauty, general

merchandise, communication products, E-tailing and leisure and

entertainment.

Headquartered in Mumbai (Bombay), has over 450 stores

across 30 cities in India and employs over 18,000 people. The

company owns and manages multiple retail formats catering to a wide

cross-section of the Indian society and its width and depth of

merchandise helps it capture almost the entire consumption basket of

the Indian consumer.

Founded in 1987, as a garment manufacturing company,

PantaloonRetail forayed into modern retail in 1997 with the opening

up of a chain of department stores, Pantaloons. In 2001, it launched

Big Bazaar, a hypermarket chain, followed by Food Bazaar, a

supermarket chain. It went on to launch Central, a first of its kind,

seamless mall located in the heart of major Indian cities. Some of its

other formats include, Collection I (home improvement products), E-

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Zone (consumer electronics), Depot (books, music, gifts and

stationaries), aLL (fashion apparel for plus-size individuals), Shoe

Factory (footwear) and Blue Sky (fashion accessories). It has recently

launched its etailing venture, futurebazaar.com.

Some of the groups subsidiaries include Home Solutions Retail

India Ltd, Future Bazaar India Ltd and ConvergeM Retail India Ltd,

which leads the groups foray into home improvement, etailing and

communication products, respectively. Other group companies include

Pantaloon Industries Ltd, Galaxy Entertainment and Indus League

Clothing. It has also entered joint venture agreements with a number

of companies including ETAM group, Gini & Jony, Liberty Shoes and

Planet Sports, a company that owns the franchisee of international

brands like Marks & Spencer, Debenhams and Guess in India.

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:

1. Future Retail (encompassing all retail businesses)

2. Future Capital (financial products and services)

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3. Future Brands (management of all brands owned or

managed by group companies)

4. Future Space (management of retail real estate)

5. Future Logistics (management of supply chain and

distribution)

6. Future Media (development and management of retail

media)

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

Everytime to Every Indian consumer in the most profitable

manner." One of the core values at Future Group is, 'Indianess'

and its corporate credo is - Rewrite rules, Retain values.

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 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 spaces).

The company operates their chain of super markets under the

brand names of

Big Bazaar Discount stores

E-Care Customer Service Support

E-ZONE Consumer Durables

Food Bazaar Exclusive food market

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Central - Hypermarket

Pantaloons Fashion apparels

Three special zones in E Zone The Liberation Zone offers

personal products like computers, laptops, handy cams, MP 3 players

and mobile phones. While entertainment products such as Plasma /

LCD, Flat TVs, Home Theatre systems, DVD players, and Stereo

systems are displayed in the Experience Zone. And in the Home Zone

segment, one gets to pick electronic goods of his or her choice

including Refrigerators, Air Conditioners, washing machines and

Microwave ovens among other kitchen related appliances.

E-Care the special post-purchase customer service support

The service and support at EZone will be unparalleled with the special

E-Care customer support centre. E-Care is a special, dedicated

support system designed to offer the best customer service after

purchase of any product at EZone.

STATISTICS

Listed on: Bombay Stock Exchange

Stock Code: BOM:523574

Fiscal Year Ending: June

Major Industry: Retailing and Dept. Store Chains

Employees :3,500 (Sept, 2006)

Market Capitalization: INR 39,609,150,020 (Sept, 2006)

Total Shares Outstanding: 22,405,900 (Sept, 2006)

Closely Held Shares: 11,365,943

Sales (2005): INR 10,512,963,000

MANAGEMENT

Kishore Biyani Managing Director

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Ved Prakash Arya Director- Operations & Chief Operating

Officer

Gopikishan Biyani Executive Director

Rakesh Biyani Executive Director

Shiraj Dej Company Secretary, Chief- Corporate Finance

Type Subsidiary ofPantaloon Group

Founded 2001

Headquarters Jogeshwari, Mumbai, India

Industry Retail

Products Department store, Grocery storeOwner Kishore Biyani

Parent Pantaloon Group

Slogan Is se sasta aur accha kahin nahin

Website http://www.pantaloon.com/bigbazaar.htm

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Shop front of a Big Bazaar at the Bharth Mall in Mangalore.

Big Bazaar is a chain ofdepartment stores in India, currentlywith 75 outlets. It is owned by the Pantaloon Retail India Ltd, Future

Group. It works on the same economy model as Wal-Mart and has

considerable success in many Indian cities and small towns. The idea

was pioneered by entrepreneur Kishore Biyani, the CEO of Future

Group. Currently Big Bazaar stores are located only in India. It is the

biggest and the fastest growing chain of department store and aims

at being 350 stores by the end of year 2010.

Big Bazaar was struck by a controversy in 2003. Eleven people

were arrested after alleged Shiv Sainiks barged into Big Bazaar and

went on a rampage spree at Mulund in North Mumbai on Dec 21,

2003.The mob of around 200 people entered the store and broke the

window-panes of the Big Bazaar shopping mall according to the

police. The Sainiks were protesting against the security guardemployed at the shopping mall who had beaten up a 22-year-old man

on "charges of shoplifting", leading to his death subsequently.

OVERVIEW OF ALL DEPARTMENTS OF BIG BAZAAR

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There are seven departments in pantaloons which are as follows-

1. Store Operations

2. Supply Chain

3. HR

4. VM

5. IT

6. Commercial

7. Marketing

1. STORE OPERATION

This department is most important and it directly interacts with

customers. This dept. manages and focuses the selling of

merchandise to the customers with the help of team members and

team leaders.

Store consists of several depts. such as Mens (Mens formal,

Mens causal, Mens occasion wear), Womens (Womens formal,

Womens casuals, Womens sports wear, Womens young fashion,

Womens ethnic wear, Lingerie), kids and Blue sky. A store is leaded

by Store Manager (SM) and every dept. is leaded and guided by Dept.

Manager (DM). DM guides the team leaders and team members how

to sale to the customers and is responsible to achieved the sales

target. DM provides proper guidelines to team leaders and tea m

members regarding how to handle the customers, how to build

customer relationship, how to maximize ticket size and motivate themto increase sales and to achieve the sales target. DM/ADM watch and

decides about the requirement of merchandise of the store and as per

the requirement receives from warehouse. DM is responsible for his

respective dept.

2. SUPPLY CHAIN

Supply chain involves all the activities which start from supply

of raw materials to manufacturer and end with sale of final goods to

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the final consumer. It includes suppliers, manufacturer, distributor,

retailer and final consumer.

3. HR

This dept. keeps eyes on the activities of every employee of the

store. This dept. remains in contact with every employees and

prepares report about their performance, sanctions leave and

recommend for their promotion, bonus, incentives, training,

punishment and other appraisal.

4. VM (VISUAL MERCHANDISING)

Visual Merchandising is...

a) A tool to achieve sales.

b) A tool to increase productivity.

c) A mechanism to ease customer buying behavior.

VM Aspects

- Clarity

The OfferThe Company's Images

The Structure of Store

Within Department

Merchandise

- Authority

- Discipline

-Diversity

- Flexibility

VM involves color blocking, merchandise presentation, in-store

displays, window displays, mannequin handling etc. VM manage

interior and exterior look of the store and maximize product appeal

opportunities.

5. IT

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This dept. has main work of server handling. IT dept. uptate

new scheme on system and handle all the information system of the

store. This dept. protects the misuse of computers and responsible so

that all the systems work properly. IT dept. regulates networking of

computers inside the store.

6. COMMERCIAL

This dept. mainly involves cashiers who maintain book-keeping,

banking, accounting and also do floor management (manage

customers at cash counter). Cashiers of the store maintain petty cash

book and they pass the staff bill and small spending like xerox,

conveyance, etc. Payment upto maximum of Rs.20,000 is allowed by

the cashiers of the store.

7. MARKETING

This dept. has vital role in any industry. Here, marketing

involves sales promotion and all promotional activities,

advertisement, event management, survey, mall launching, store

opening and footfalls watching. The main motive of marketing is to

increase footfalls in the stores.

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PRESENT STATUS OF THE ORGANIZATION IN INDIA

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FUTURE PLANS OF THE ORGANISATION

India discover Fresh Fashion

The company wills open15 more pantaloons store

over 0.5 million square feet in India.

ISse sasta aur accha kahin nahi!

The company will open 120 Big Bazaar at the end of

June 2008 in India.

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THE MARKETING PLAN OF BIG BAZAAR

3.1) Target:

The target audience for big bazaar includes people based on the

economic status. They mainly cater to urban middle class and price

sensitive customers. As a marketing strategy they offer huge festive

discounts to lure the customers as the festive season is a time when

many have plans to buy and try out new products .they also have

various schemes such as 50 % discount on the tagged price for a day.

Whatever you buy is 50% less than the original price. They basically

promote their product as being the cheapest anywhere in India.

Biyani in one of his interviews says that Ahmedabad was a very

difficult market. People were so conscious. We realized that people

traveled in groups of 8-10. The whole society came to shop together.

They shared the rickshaw fair. They knew the price of every product

in the wholesale as well as in the retail market. So when we launched

our Ahmedabad store, it was our most challenging market. We

thought 'what more can we do for these customers'.

3.2) Positioning of Big Bazaar:

Big Bazaar is not just another hypermarket. It caters to every

need of your family. Where Big Bazaar scores over other stores is itsvalue for money proposition for the Indian customers.

At Big Bazaar, you will definitely get the best products at the best

prices -- thats what we guarantee. With the ever increasing array of

private labels, it has opened the doors into the world of fashion and

general merchandise including home furnishings, utensils, crockery,

cutlery, sports goods and much more at prices that will surprise you.

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And this is just the beginning. Big Bazaar plans to add much more to

complete your shopping experience.

Isse sasta aur accha kahin nahi This can be used for the

POSITIONING strategy. Shop till you drop!

Big Bazaar has democratized shopping in India and is so much more

than a hypermarket. Here, you will find over 170,000 products under

one roof that cater to every need of a family, making Big Bazaar

Indias favourite shopping destination. At Big Bazaar, you will get the

best products at the best prices -- this is our guarantee. Fromapparel to general merchandise like plastics, home furnishings,

utensils, crockery, cutlery, sports goods, car accessories, books and

music, computer accessories and many, many more. Big Bazaar is

the destination where you get products available at prices lower than

the MRP, setting a new level of standard in price, convenience and

quality.

If you are a fashion conscious buyer who wants great clothes at great

prices, Big Bazaar is the place to be. Leveraging on the companys

inherent strength of fashion, Big Bazaar has created a strong value-

for-money proposition for its customers. This highlights the

uniqueness of Big Bazaar as compared to traditional hypermarkets,

which principally revolve around food, groceries and general

merchandise. Boasting of an impressive array of private labels, Big

Bazaar is continually striving to provide customers with a complete

look. So be it mens wear, womens wear, kids wear, sportswear or

party wear, Big Bazaar fashions has it all!

3.3) Pricing of Product:

As it were, Biyani's new strategy for Big Bazaar also centres on

fashion, but with a volumes orientation. It will retail what Biyani calls

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commoditized fashion - blue jeans, white shirts. Biyani is planning to

buy these in very large numbers, drive prices down, and sell. Take

denim. Recalls Singh: "Pantaloons has jeans from Bare at Rs 695 and

above. Newport, priced at Rs 599, was the cheapest pair of jeans in

the market. So, we contacted Arvind Mills and asked if they could

give us jeans at Rs 299 if we were willing to take 100,000 units a

month." That is where Ruf-n-Tuf came in. The brand had been

discontinued when Pantaloon first contacted Arvind. From now on, it

will be available only through Big Bazaar. There is a similar deal for

T-shirts.

3.4) Pricing strategy

The recent stampedes at Big Bazaar stores have triggered a

debate around the much desired discount game and varying

strategies adopted by organized retailers to show their mettle. Well, a

mad rush at Kishore Biyanis Pantaloon stores may be a compliment

for his success, but for Technopak Advisors COO Harminder Sahni itconveys nothing.

In India, one sees a stampede everywhere, which is a result of huge

demand and less supply. Big Bazaars stampede exemplifies the

same. In a city of 12 million people, there is one store that is trying to

position itself as a discount destination. Even if only 1% of the city

dwellers visit the store, it adds up to 1, 20,000 people. Such a huge

lot in a store that can handle not more than 15,000 people will indeedlead to a stampede. However, he adds that the discount war is a

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rediscovering exercise undertaken by the first generation retailers

who, perhaps inspired by international retailers, are trying to

understand the requirements of customers and thus fill the gaps at

their end. So, if Wal-Mart has the discount principle, why not our own

Big Bazaar?

Discount and several other developments in and around the organized

retail trade (the 3% of the total retail trade) indicate the changing

dynamics of the sector and the way the business will take shape in

the years to come.

BIG BAZAAR is concentrating on buying in volumes through cash

purchase which give us an edge. Ultimately, the convenience, value

and variety given to customers will make a difference. Be it managing

a supply chain, grappling with hundreds of suppliers or handling store

inventory the modern retail industry is a big affair. Then follow

other aspects like positioning of the brand with apt pricing, packaging

and retail experience, understanding the customers, dealing withpartners such as suppliers, mall developers and franchisees. However,

the biggest challenge is saving bucks either through margins or

rentals, so that there is profit even after the discounts. Though it

reads as a complete win-win situation, it is surely a tough target to be

achieved.

3.5) Advantage

Huge marketing space at their disposal a good brand image to

compliment that and a trained and efficient sales force all adds to

their advantage to serve customers better. They also have the

advantage of having their outlets in selected prime locations in the

city (phoenix mills Mumbai).An exhaustive research is conducted

before finalizing location for the shop. A loyal customer base following

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also adds to the advantage as its help in positioning their product

accordingly.

3.6) Distribution

Since big bazaar is mainly targeted towards middle class

consumers as a distribution strategy they manufacture few products

themselves which enables them to earn better margin profits and stay

ahead of competition. For fruits and vegetables they have a ware

house in vashi from which they order their supplies. The suppliers

have to fill in a tender, from which the firm quoting the lowest price is

selected for the supplies. In the same way for clothing and

accessories they have their own designers (Rocky S Pantaloons) who

design their line of products and later big bazaar sells them in the

open market. For branded electronic items like mobile phone and

cameras they order them directly from the company. Their

distribution strategy is simply, purchasing in bulk from the suppliers

and then sell it to the end user at a cheaper price.

Even the warehousing strategy has been fine-tuned so that costs are

kept to a minimum. In Mumbai, for instance, the three stores will be

served by a single warehouse. It hopes to put together a similar

strategy in Delhi where it wants to open a second store. Keeping costs

down is clearly the cornerstone of policy at both chains. Pantaloon

chief Biyani ensures cheaper prices by keeping watch at every step.

Says Biyani: "We do three things -- buy directly from the

manufacturers so that the middle man is eliminated. We buy in cash

and get a cash discount, and manage our stocks turns so that we

don't have money stuck up. The benefits are passed on to the

customers."

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So, for instance, as many as 60 per cent of Big Bazaar's products are

bought directly from the manufacturers and the saving could be

anywhere between 6 per cent and 40 per cent. Cash discounts (for

buying goods upfront in cash) on the other hand could range from 2

per cent to 10 per cent. And the company pushes for a stock turn of

40-50 times a year for its food items, and once a month for ready to

wear.

Big Bazaar Wholesale Club

The Big Bazaar Wholesale Clubbrings to you an opportunity to

save in bulk as you buy in bulk. In line with the Big Bazaar tradition of

providing best deals at best prices, the Big Bazaar Wholesale Club

provides you bulk deals at wholesale prices. An extension of Big

Bazaar, the Big Bazaar Wholesale Club offers multi-packs and bulk

packs of a select range of merchandise at wholesale prices. The

merchandise categories range from Food & FMCG to Home Linen and

many more. You will not find any merchandise being sold loose/single

unit (except fresh) at a Big Bazaar Wholesale Club.

The Big Bazaar Wholesale Club is located adjacent to a Big Bazaar

in the form of a separate section. Taking care of your savings, the Big

Bazaar Wholesale Clubwill ensure that the more you buy, the more

you save. If you enjoy shopping at wholesale markets for your entire

family or you have a huge circle of friends who would like to get

together for their monthly shopping needs or if you are a retailer

looking for wholesale offers then the Big Bazaar Wholesale Clubis the

place to shop at.

To shop at the Big Bazaar Wholesale Club, you just need to enroll

yourself as a member of the club. If you possess an Anmol card or an

ICICI-Big Bazaar card then you are automatically enrolled as amember of the Big Bazaar Wholesale Club.

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Marketing Strategies

- Discount Slots

Offering Discounts in first week of every month or allowing customers

to pay credit in first week as that is when the salary comes in for the

salaried class which is the target audience for the BB

- Creating Strategies targeted at Teens and Tweens

Children between the ages of 8 and 14 Tweens and young teens

are a powerful demographic group. They control billions in purchasing

power and make up 60% of Internet users under age 18, and as

Tweens become teens, their online activities change dramatically.

They may be small in stature, but they have a huge influence.Teens

ages 12 to 14 go online more frequently than children who are 8 to

11, spend more time online and engage in a variety of online social

and communication activities, such as instant messaging and socialnetworking, that kids slightly younger have yet to grasp.

No marketer should make the mistake of thinking that there is no

difference between tweens and teens. The transition from childhood

to adolescence is a big turning point socially, mentally, physically

and emotionally. Just ask any parent with children between the ages

of 8 and 14.

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It also marks a turning point in online behavior, says Debra Aho

Williamson, eMarketer senior analyst and the author of the new

report, Tweens and Teens Online: From Mario to MySpace.

- Travel Bookings

The retail stores can diversify even further by providing facilties for

booking of train and airplane reservations in a manner which is similar

to what they are doing in apparel n others.

- Opticians Outlet

An opticians outlet can be opened which provides services at lower

rates than the branded ones like Gangar. Also free eye checking can

be introduced.

Fun Zone and Baby SittingBig Bazaar can also provide the adults a carefree and tension free

shopping experience to the shoppers today as most of the family

believes in shopping together which is the case observed in Gujarat.

The parents can enjoy a carefree shopping experience while their kids

are looked after by the caring baby sitters.

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- Seating Arrangement while waiting in queues

There is lack of seating arrangement as brought out in the customer

reviews of Big Bazaar. Hence we recommend something like below for

the same.

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- Maternity care category

This can be introduced as a new section catering to new mothers or

pregnant women.

Here apparels and products catering to this specific audience can be

made.

- Increase the number of Cash counters

To counter the rush at BB during peak hours, the number of counters

can be increased so as to reduce queue time.

- Increase no of sales attendants

To counter shop lifting and the rush of customers and also with the

view to increase customer satisfaction, the number of sales

attendants can be increased.

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BIG BAZAAR, MULUND AN ANALYSIS

SIZE OF THE STORE

The store at Mulund is a huge outlet with approximately 60000 sq ft

of retail space divided between two floors Ground and First.

TYPE OF RETAIL FORMAT

Big Bazaar is a hypermarket - a superstore which combines a

supermarket and a department store. The result is a gigantic retail

facility which carries an enormous range of products under one roof,

including full lines ofgroceries and general merchandise. A consumer

can ideally satisfy all of his or her routine weekly shopping needs in

one trip to the Big Bazaar. The stores business models focuses on

high-volume, low-margin sales.

LOCATION

Big Bazaar is strategically located on one of the busiest streets of

Mulund having heavy vehicular as well as pedestrian traffic. It is

situated on the ground and the first floor of the R-Mall which is at a 5

minute distance from the Mulund station and a throw away distance

from checknaka.

TRADING AREA

Trading Area is a geographical area containing the customers of a

particular firm for specific goods and services. For Big Bazaar, the

primary trading area initially was the residents of Mulund as well as

Thane. However, after a store was opened even in Thane, only

thaneites near the checknaka prefer the Mulund Big Bazaar.

THE LAYOUT

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The store is divided into two floors; ground and the first. The ground

floor houses all categories of products like apparels, bed and linen,

furniture, gifts & artifacts, etc. The first floor is the food bazaar where

one can find grocery, fruits, vegetables, ready to eat packs, etc.

AVERAGE FOOTFALLS

On weekdays, the store receives average footfalls of approximately

3000. On weekends and during festive periods the average footfalls

often shoot up to approximately 8000-10000.

TARGET CONSUMERS

Big Bazaar is a value store. It offers products at the lowest possible

price and has rightly targeted the middle class consumers who is

highly price conscious and seeks value in the purchase made.

PRODUCT CATEGORIES

The store houses a long list of product categories. An indicative list is

given below:

Mens & Womens Apparels

Kids Wear

Footwear

Bed and Bath

Gifts and ArtifactsUtensils & Plastic items

Appliances

Grocery

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SOME OF THE PRODUCT CATEGORIES AT BIG

BAZAAR

Mens and Womens Apparels

Food Bazaar Fruits Section

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Furniture Section Bed and Linen Section

PRODUCT VARIETY

As seen from the product categories, the product width at Big Bazaar

is quite large. The store also has a good product depth i.e. the variety

available in each of the product categories. This variety is a

combination of manufacturers brands and private labels majority

being private labels.

NUMBER OF EMPLOYEES

The total employee strength at Big Bazaar is 220 inclusive of the

category managers and the sales staff. The average educational

qualification of the sales staff is 12th standard.

SOURCING POLICY

Big Bazaar sources its products either directly from the manufacturers

or they outsource the production. The proportion of products

outsourced to that sourced from manufacturers is 85:15. Hence we

can see large number of in-house labels at the store.

The private labels under the mens apparels

category include:

Knighthood

Shatranj

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Denim Jeans & Cool Casuals (DJ&C)

Ruf & Tuf

Private labels under the Females category include:

Denim Jeans & Cool Casuals (DJ&C)

Shaila

Shristi

For the kids, their private label is known as Pink-n-Blue.

In case of appliances like CTV, refrigerators, Cell Phones, etc, thestore directly purchases them from the respective manufacturers.

Thus, eliminating the intermediaries and thus their hefty

commissions.

SOME OF THE PROMOTIONS AT BIG BAZAAR

The Great Exchange Offer by Big Bazaar drew more than

200,000 customers to avail of the scheme. The store offered a way

to dispose of old household items and receive a price 4-8 times

higher than what the local kabari-wala can give. The months of

February and March are usually dull for consumer buying and the

scheme was a means to boost sales during the slack period.

Big Bazaar has recently announced a customer relationship

building initiative to reach out to middle-class women customers. A

brand new woman's English magazine, `My World' will be

circulated on a complementary basis amongst all the 210,000 Big

Bazaar-ICICI Bank co-branded credit card holders. My World will

provide fashion and shopping-related information.

Big Bazaar also had a four-day `Freedom Weekend' offer

valid at all the Big Bazaar outlets, functional from August 12-15.

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Freedom Weekend ensured never before offers and rock bottom

prices on all household and consumer goods

The store also plans to set up beauty parlours for men as

well as women with services being offered at a `discount'

compared to the existing market rates, in line with the Big

Bazaar's concept of a discount store.

ADVERTISING

Big Bazaar has been using several medias to reach its consumers.

The media used includes:

Television

Print

Radio

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THE PRINT CAMPAIGNS

This ad communicates the fact that Big Bazaar offers you products at

rates which you can afford and that fashion is not just confined to a

few but within everyones reach. The other ad tried to communicate

the special offers the store had on Womens Day.

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EXISTING MARKETING STRATEGIES

Hullabol team

In the two tier cities like Nagpur, Nasik etc, they have a Hullabol

team which makes announcements of the discounts in Big Bazaar

through Nautankis. This is their strategy to get more footfall in the

outlet.

Visual Merchandise

The format used by Big Bazaar for in-store marketing is usage of

signages and navigators which is basically visual merchandise. The

Layout of Big Bazaar is such that the first floor is for the food bazaar

which provides the basic necessity to customers. Thus they lure the

customers to enter the outlet and then with the help of

announcements of discounts to the first and second floor that is the

apparel and consumer durables section.

Advertising

Advertising is done through full page newspaper ads and radio. In the

full page newspaper ads, models used are middleclass average

looking men and women and kids to portray a middleclass family.

Ambience

The entire ambience of Big Bazaar like the tiles and ceilings are

specially designed to portray a economical outlook so that the

customers can relate it to the positioning tagline Is se sasta aur

accha kahin nahi

Market Research

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They study consumer behaviour and do market research to supply

products to the population of that region. For example in Gujrat

people prefer cotton more than any other material and hence they

have more of cotton apparels in Gujrat Big bazaar.

Mahasaving Day

Big Bazaar has the Wednesday bazaar wherein a straight 40%

discount is given on the price of products. In addition to this,

weekends are the peak periods for shopping. In Gujrat for exampleMonday is a holiday. So as a marketing strategy discounts are

introduced on that day specifically.

Marketing Gimmick

They have offers like buy one and get one free. However they do

have their margins like 40% in apparels and consumer durables and

20% in food. Their revenue is from apparels and consumer durables

from their local brands.

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They have a tieup with ICICI for credit card for women only for

shopping. They also have loyalty cards for regular customers.

They arrange magic shows and mehendi and tattoo counters for

customers who have purchased above a certain level. These

customers get coupons which can be redeemed by using these

counter facilitites.

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CHAPTER 4

DATA COLLECTION

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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- 28in 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.

SECONDARY AREA-Areas of Rohini.

SAMPLE DESIGN- Simple random method

SOURCES OF DATA COLLECTION- Data collected in thisproject 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

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RESEARCH METHODLOGY

The methodology adopted for collection of data

through the questionnaires

SOURCES OF DATA

1. Primary data was collected through questionnaires,

which were filled by me

2. Secondary data sources comprised of :-

a. Cash till Centers

TARGET AUDIENCE: -

The survey was conducted on the customers of the

BIG BAZAAR.

RESERCH INSTRUMENTS USE: -

Questionnaire.

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DATA ANALYSIS & INTERPRETATION

Total browser & Purchaser in a weak

Total Browsers in a week 4,911

Total Purchasers in a week 901

Conversion 16%

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CONTRIBUTIONS OF SALE ACOORDING TO THE CASH

TILL

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SALES FLOW IN THE WEEK

Total Sale Rs.

48,789

Avg. Sale per day Rs.

6,969.86

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TOTALSALE OF BIN, STAND & OTHERS IN A WEEK

Total Sale Rs. 48,789

Bin Rs.

18,278

Stand Rs. 17,153

Others Rs. 13,358

TOP 3 MARCHANDISE OF THE BINS

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Top 3 Merchandise of the

Bins

Rank Cash till Merchandise Value% in toal

Bins

% in Total

Sales

1 14Candico

Chocolate2,440 13.35 5

2 10 Parle Milano 1,511 8.27 3.1

3 7

Orchard

Soaps1,500 8.21 3.07

TOP 3 MARCHANDISE OF THE OTHERS

Top 3 Merchandise of others

RankCash

tillMerchandise Value

% in

total

Other

% in Total

Sales

1 2 Surf Excel 2,073 15.52 4.25

2 11Garnier

Shampoo 400ml1,990 14.9 4.08

3 9 Santoor Talc 1,411 10.56 2.89

TOP 3 MARCHANDISE OF THE STAND

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Top 3 Merchandise of the Stand

Ran

k

Cash till Merchandise Value% in toal

Stand

% in Total Sales

1 3 Wipro CFL 3,540 20.54 7.26

2 5Bikano

Namkeen3,225 18.8 6.61

3 3 Bingo Chips 1,496 8.72 3.07

DISTREBUTION OF BINS, STAAND AND OTHERS IN BIG

BAZAAR & FOOD BAZAAR

Big Bazaar Food Bazaar

Bin 19 Bin 15

Stackable0 Stackable 14

Others 2 Others 8

Total 21 Total 37

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CONTRIBUTION OF BIN STAND & OTHERS IN BIG

BAZAAR & FOOD BAZAAR SALE WHEN CASH TII IS

OPEN

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CONTRIBUTION OF BIN STAND & OTHERS IN BIG

BAZAAR & FOOD BAZAAR SALE WHEN CASH TII IS

NOT OPEN

When Cash tills are not open

Cash till

no.No. of days Total Sale

Average

Sale

1 7 4417 631

2 6 4945 824.17

3 6 4891 815.17

4 4 636 159

5 2 647 323.5

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When Cash tills are open

Cash till no. No. of days Total Sale Average Sale

1 0 0 0

2 1 345 345

3 1 2240 2240

4 3 2272 757.33

5 5 1642 328.4

6 7 6439 919.86

7 7 3399 485.57

8 7 2470 352.87

9 7 2019 288.43

10 6 1235 205.43

11 5 1232 246.4

12 1 830 830

13 0 0 0

14 0 0 0

Total 24123


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6 0 0 0

7 0 0 0

8 0 0 0

9 0 0 010 1 0 0

11 2 1613 806.5

12 6 1222 203.67

13 7 3444 492

14 7 2852 407.43

Total 24667

SALES GRAPF WHEN CASH TILL OPEN/NOT OPEN

Sale when Cash till is open Rs.24, 123

Sale when Cash till is not open Rs.24, 667

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Documents

Jagdeep Report 2