Merchandising at big bazaar SUBMITTED BY

Sachin Gautam MBA(int)BBA (int)BBA Enrolment no.: 2007RBA017 FOR THE PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF

MASTER OF BUISINESS ADMINISTRATION

UNDER THE GUIDANCE OF Ms. Jagrati Singh UNDER THE SUPERVISION OF Mr. Sameer Vajpayee

INSTITUTE OF BUISENESS MANAGEMENT MANGALAYATAN UNIVERSITY, rd 33 KM STONE,ALIGARH-MATHURA HIGHWAY, BESWAN,ALIGARH

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

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

Name & Signature of Faculty

K.V.S.M. Krishna
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. Jagrati Singh, 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

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 to grow 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.

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

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. WalMart 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.

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. several characteristics: Amount of service Product line Relative prices Control of outlets Type of store cluster 1) AMOUNT
OF SERVICE

They can be classified by one or more of

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 sales assistance because they carry more shopping goods about which 9

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, selfservice 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'. Examples Combination stores are combined food and drug stores.

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.

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 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.

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 14

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 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 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 breakeven 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, 16

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 17

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. 18

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 RESEARCHResearch 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 19

about a particular subject, and is usually associated with the output of science and the scientific method

RESEARCH DESIGN DESCRIPTIVE RESEARCHDescriptive 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 SIZEMale-

The sample size that we have taken is 50 units,

out of which the number of males and females were as follows28 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 SECONDARY AREA- Areas of Rohini.

SAMPLE DESIGN- Simple random method

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SOURCES OF DATA COLLECTIONsources of data collection which are as followsPRIMARY DATA -

Data collected in this

project is both collected both from both primary and secondary

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 the Selfridges model -- by displaying high-profile readymade brands and collecting a commission on their sales.

2.5)

SWOT Analysis

Strengths:
1) Good supply chain management 2) 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 as the 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 The big retailers tend to be impersonal, there is no help around, be easily replaced. 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 28

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:29

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 goods and 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 Indian population is witnessing a significant change in its demographics. A 31

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 32

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 traditional outlets 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 33

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 SECTOR

INDIAN RETAIL

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.

RETAIL : 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, Pantaloon Retail 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-

38

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. 2. Future Retail (encompassing all retail businesses) Future Capital (financial products and services) 39

3.

Future Brands (management of all brands owned or Future Space (management of retail real estate) Future Logistics (management of supply chain and Future Media (development and management of retail

managed by group companies) 4. 5.

distribution) 6. 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 40

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 41

Ved Prakash Arya Director- Operations & Chief Operating Officer Gopikishan Biyani Executive Director Rakesh Biyani Executive Director Shiraj Dej Company Secretary, Chief- Corporate Finance

Type Founded Headquarters Industry Products Owner Parent Slogan Website

Subsidiary of Pantaloon Group 2001 Jogeshwari, Mumbai, India Retail Department store, Grocery store Kishore Biyani Pantaloon Group Is se sasta aur accha kahin nahin http://www.pantaloon.com/bigbazaar.htm

42

Shop front of a Big Bazaar at the Bharth Mall in Mangalore. Big Bazaar is a chain of department stores in India, currently with 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 guard employed 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

43

There are seven departments in pantaloons which are as follows1. 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 them to 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

44

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 4. for their promotion, bonus, incentives, training, punishment and other appraisal. VM (VISUAL MERCHANDISING) a) A tool to achieve sales. b) A tool to increase productivity. c) A mechanism to ease customer buying behavior. VM Aspects - Clarity The Offer The 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 Visual Merchandising is...

45

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.

46

PRESENT STATUS OF THE ORGANIZATION IN INDIA

47

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.

48

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 its value 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.

49

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. From apparel 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 valuefor-money which proposition for its customers. food, This highlights and the uniqueness of Big Bazaar as compared to traditional hypermarkets, principally revolve around groceries 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 50

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 it conveys 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 indeed lead to a stampede. However, he adds that the discount war is a 51

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 with partners 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 52

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."

53

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 Club brings 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 Club will 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 Club is 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 a member of the Big Bazaar Wholesale Club. 54

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 social networking, 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.

55

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 Sitting

Big 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 of groceries 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
59

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 Artifacts Utensils & Plastic items Appliances Grocery

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SOME

OF

THE

PRODUCT

CATEGORIES

AT

BIG

BAZAAR

Mens and Womens Apparels

Food Bazaar Fruits Section

61

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 62

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, the store 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
66

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 example Monday 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.

67

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

69

SAMPLE SIZEMale-

The sample size that we have taken is 50 units,

out of which the number of males and females were as follows28 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. SECONDARY AREA- Areas of Rohini.

SAMPLE DESIGN- Simple random method

SOURCES OF DATA COLLECTIONsources of data collection which are as followsPRIMARY DATA -

Data collected in this

project is both collected both from both primary and secondary

Interview, Questionnaire

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

70

71

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.

72

DATA ANALYSIS & INTERPRETATION Total browser & Purchaser in a weak

Total Browsers in a week Total Purchasers in a week Conversion

4,911 901 16%

73

CONTRIBUTIONS OF SALE ACOORDING TO THE CASH TILL

74

SALES FLOW IN THE WEEK

Total Sale 48,789 Avg. Sale per day 6,969.86

Rs.

Rs.

75

TOTALSALE OF BIN, STAND & OTHERS IN A WEEK

Total Sale Bin 18,278 Stand Others

Rs. 48,789 Rs.

Rs. 17,153 Rs. 13,358

TOP 3 MARCHANDISE OF THE BINS

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Top 3 Merchandise of the Bins % in toal % in Total Rank Cash till Merchandise Candico 1 2 3 14 Chocolate 10 7 Soaps TOP 3 MARCHANDISE OF THE OTHERS Parle Milano Orchard 1,500 8.21 3.07 1,511 8.27 3.1 2,440 13.35 5 Value Bins Sales

Top 3 Merchandise of others % in Cash Rank till Other 1 2 Surf Excel Garnier 2 3 11 Shampoo 400ml 9 Santoor Talc 1,411 10.56 2.89 1,990 14.9 4.08 2,073 15.52 4.25 Merchandise Value total Sales % in Total

TOP 3 MARCHANDISE OF THE STAND

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Top 3 Merchandise of the Stand Ran Cash till Merchandise Value k 1 2 3 5 Namkeen 3 3 Bingo Chips 1,496 Wipro CFL Bikano 3,225 3,540

% in toal % in Total Sales Stand 20.54 18.8 7.26 6.61

8.72

3.07

DISTREBUTION OF BINS, STAAND AND OTHERS IN BIG BAZAAR & FOOD BAZAAR

Big Bazaar Bin 19 Stackable 0 Others 2 Total 21

Food Bazaar Bin 15 Stackable 14 Others 8 Total 37

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CONTRIBUTION OF BIN STAND & OTHERS IN BIG BAZAAR & FOOD BAZAAR SALE WHEN CASH TII IS OPEN

79

When Cash tills are open Cash till no. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Total No. of days 0 1 1 3 5 7 7 7 7 6 5 1 0 0 Total Sale 0 345 2240 2272 1642 6439 3399 2470 2019 1235 1232 830 0 0 24123 Average Sale 0 345 2240 757.33 328.4 919.86 485.57 352.87 288.43 205.43 246.4 830 0 0

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. of days Total Sale no. 1 7 4417 2 6 4945 3 6 4891 4 4 636 5 2 647
80

Average Sale 631 824.17 815.17 159 323.5

6 7 8 9 10 11 12 13 14 Total

0 0 0 0 1 2 6 7 7

0 0 0 0 0 1613 1222 3444 2852 24667

0 0 0 0 0 806.5 203.67 492 407.43

SALES GRAPF WHEN CASH TILL OPEN/NOT OPEN

Sale when Cash till is open Sale when Cash till is not open

Rs.24, 123 Rs.24, 667

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82

CONCLUSION

Store Operation:1. It was very good experience in Big Bazaar. I observed, knew and learnt many new things regarding customers and retailing. 2. There are various types of customers, some customers just come to visit and to know about the offers but they are not interested in purchasing. 3. Some customers are pre-planned and they dont take much time and they interested in purchasing.

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4.

Some customers go for impulse purchasing but they are not pre-planned.

5.

Some

customers

create

disturbances

and

that

time

salesperson must have patience. 6. When a large numbers of customers come to store then also a sales person must have patience and he has to manage himself. 7. 8. A salesperson should have politeness and convincing power. When we work in retail store, we are for providing services to customers. That time we have to be ready to do every type of work as per requirement and we have to leave ego. 9. The offers introduced on different items attract and pull the customers towards retail store. 10. Visual merchandising plays a vital role to pay attention of the customers. 11. 12. We can learn from anyone and we should respect to everyone. We should work as a team and then we can easily achieve the target. Marketing:13. There must be three things in malls- Fun, Food & Fashion then only a mall is complete. 14. A mall must try to maximize footfalls and for this malls take initiatives and often organise some cultural or events inside the mall. 15. Mall location also matters. The mall should be at the place where ease of conveyance, good locality and all necessary facilities should be there.

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Finding
1. Big bazzar has following good merchandising mix. 2. People usually visit the store once in a week in weekends. 3. They have different variety of product in food bazzar. 4. But in apparels and in electronics section there are no variety of brand,which means people expect more branded item in the store. 5. Most of the people who visit to the store are of age group b/w 22-45 age. 6. The store environment in big bazzar is neutrally satisfied to the customers. 7. The main dissatisfaction for the customaries in the billing section,which makes them to wail long. 8. The most of the consumer who visit to the store are of lower middle class family.

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CHAPTER 7
RECOMMENDATION
86

RECOMMENDATIONS
Initiative should be taken to interact with the customers while they are browsing. There should be a separate Gift counter for free items or they should be given from the sections itself. Cashiers need more training in terms of being polite, patient and alert while billing. There should be competitions organized for the cashiers, for example, fastest cashier, accurate cashier, etc. This would increase speed and accuracy in bills. The problems/suggestions recorded in the SHARE WITH US! should be redressed and the best query should be awarded which the management thinks could effect the sales. There should be drinking water facility inside the store.

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There should be an area where people can sit and relax, especially for old age people. There could be one more system at the CSD as during rush hours customers have to wait for long.

There should be workshops on wastage reduction, which will result in cost reduction. Expiry dates of the various products should be tracked regularly. There are n numbers of queries regarding the ICICI credits cards. At least one member from ICICI must be available at CSD at all times.

BIBLIOGRAPHY Internet
1. 2.

www.google.com www.rediff.com www.bigbazaar.com

3. Books

1. Kotler Philip:

Principles of Marketing
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2. Boyd :

Marketing Research

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