Project on

Private label product in Food Bazaar

Mentor Submitted by

Abhishek Singh Sumit jha

Store manager future Innoversity

BB, Deoghar Kolkata, West Bengal

ACKNLOWEDGEMENTThe project of this magnitude would not have been completed by me alone. Firstly, there are many other people without whom the completion of this project would not have been possible. Some have contributed towards this directly while other has provided their indirect guidance and support. It gives me immense pleasure to thank Mr.Abhishek singh. (Store Manager) and Mr. Manash ray (HR) for providing me training in his reputed organization and giving me a chance to have the experience of actual retail operations. I am indebted to Mr.Islam Mubarak (Asst.Department Manager) of FOOD BAZAAR for his guidance and cooperation in completing this project. Last but not the least I would like to convey my heartiest gratitude to all team members and team leaders of BIG BAZAAR Deoghar who helped me a lot for successful completion of this project report.

DECLARATION

I hereby declare that the information presented here is true to the best of my knowledge. Also, the report has not been published anywhere else.

Sumit kumar jha Place Mba retail services DeogharFuture innoversity

INDEX

IntroductionPrivate label product in food bazaarPrivate labels in food bazaar  

Benefits of private label productsDepth of private label by retailersConsumer surveyPattern of shoppingBrand purchaseA look on internet pollFindings and suggestions

INTRODUCTION

Food Bazaar comes with a slogan

“Ab Ghar Chalaana Kitna Aasaan”

Food Bazaar invites you for a shopping experience, unique by its ambience. At Food Bazaar you will find a hitherto unseen blend of a typical Indian Bazaar and International supermarket atmosphere.

Food Bazaar is a chain of large supermarkets with a difference, where the best of Western and Indian values have been put together to ensure your satisfaction and comfort while shopping.

The western values of convenience, cleanliness and hygiene are offered through pre packed commodities and the Indian values of "See-Touch-Feel" are offered through the “bazaar-like” atmosphere created by displaying staples out in the

Open, all at very economical and affordable prices without any compromise on quality.

The best of everything offered with a seal of freshness and purity will definitely make your final buying decision a lot easier.

Food Bazaar is divided into four sections in Big Bazaar Deoghar

1.Food (FMCG)2.Non food (FMCG)3.Staples section4.Farm fresh

Food (FMCG) includes different sub departments such as:-

Fit and healthy

Chef zoneHungry kyaChill station

Non food (FMCG) includes different sub departments such as:-

Speak and spineMen’s groomingHead to toe

Staples section is also known as GOLDEN HARVEST in Big Bazaar. Staples section contains of cereals, dry fruits, pulses, flour, spices, sugar &salt, cooking medium.

Farm fresh is also important part of food bazaar which contains of fruits and vegetables

PRIVATE LABEL PRODUCT IN FOOD BAZAARRetailer’s own brands are making rapid gain across consumer product segments in the booming modern retail industry, weakening several established brand’s power to negotiate lower trade margins. Leading the charge is the country's largest retailer Future Group, whose private brands have been outselling some of the country's best-known brands in select categories across 200-plus Big Bazaar and Food Bazaar outlets. In Big Bazaar stores, private labels such as Clean Mate and Tasty Treat outsell national brands such as Domex, Pril and Bambino, and own brands lead the sales in at least four product segments. Future Group had boycotted chocolate maker Cadbury in 2008, and the following year it boycotted cereal maker Kellogg's brands across its Food Bazaar for higher margins.

PRIVATE LABELS IN FOOD BAZAAR

Tasty treatClean mateFresh an pureSachCare mateEktaaGolden harvestChuckles Prarthana

BENIFITS OF PRIVATE LABEL PRODUCTS

Private levels provide an opportunity to differentiate from existing retail store’s brand and offer variety in the product category. They help in gaining customer

loyalty in the situation where one can avoid comparisons. Private label products act as agent of goodwill generation. It also gives store an opportunity to gain positive control over inventory and better bargaining option in the economy. Private label products also help the store to make high profit margins which boost store’s bottom line performance. It also gives freedom for designing and creating own marketing plan for private label so that we can beat competitors in the market.

In a retail store we use to see more and more private labels products because selling in house brands in a retail store gives more margins and help to generate more profit which also helps in increasing loyalty among the customers. Future group’s Food bazaar is

Planning to increase the basket of private label products sold at Big Bazaar, the hypermarket format from the retail major. Private labels currently contribute 12- 14% of business. The goal is to increase it to 25% over the next few years.

In Big Bazaar Deoghar I have analyzed that the sale of private label product is less if compared to other brands. It’s because people did not have an idea about ours private label brand products. In a survey conducted by me during my internship at Deoghar Big Bazaar I found that many of the customers did not have private label brand knowledge and also after making them aware about our private label brand I found customers neglecting these products.

CONSUMER SURVEY

Sample size: - 50

Sex ratio: - 50:50

Location: - Deoghar big bazaar

The survey was based on a set of questionnaire which I asked to the customers on the day when we had the sampling of private label products in our store. The data which I collected after questioning the customers helped me to generate this report from it.

YES20%

NO80%

PRIVATE LABEL BRAND KNOWLEDGE

After having a round of questionnaire with customers I get to know that more than majority of people don’t even know about our private label brand products.

PATTERN OF SHOPPING In the second round of questioner, I hunted for pattern of shopping customers follow in their daily life. The fact was unbelievable that less than more than 70% of consumers buy general items they don’t even have any consideration about any of the brands available in the store.

GENERAL SHOPPING

70%

SPECIFIC BRAND

30%

SHOPPING PATTERN OF CUSTOMERS

BRAND PURCHASEIn brand purchase I have written about different customers interests in different private label products. This data i have collected from the set of people having the private label brand knowledge with them. These customers were interested in private label products because they find its price is lower and in a lower price they are getting some branded product.

CARE MATE CLEAN MATE FRESH AN PURE SACH TASTY TREAT0

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A LOOK ON INTERNET POLL ORGANISED BY plug.In.com

FINDINGS AND SUGGESTIONS

Customers are generally wary of straying away from their usually followed manufacturer’s brand.

Apart from this most of the shoppers are not aware of better choice, quality

and price offered by retailer’s private brand products.

The customers still consider private label as poor cousins of manufacturer’s brand, compromising upon quality.

The manufacturers should work on the negatives of their brand so that customers can be loyal to the private label brand products.