AOC Presentation
AOC Presentation
MOHIT AGARWAL
109229
Batch:09-11
1
SUMMER TRAINING PROJECT REPORT
ON
MARKET SURVEY AND
FRANCHISE & BUSINESS DEVELOPMENT
2
PREFACE
The PGDM programme is well structured and integrated
course of business studies. The main objective of practical
training at PGDM level is to develop skill in student by
supplement to the theoretical study of business management in
general. Industrial training helps to gain real life knowledge
about the industrial environment and business practices. The
PGDM programme provides student with a fundamental
knowledge of business and organizational functions.
Exposure to strategic thinking of management. In every
professional course, training is an important factor. Professors
give us theoretical knowledge of various subjects in the college
but we are practically exposed of such subjects when we get the
training in the organization. It is only the training through which I
come to know that what an industry is and how it works. I can
learn about various departmental operations being performed in
3
the industry, which would, in return, help me in the future when I
will enter the practical field.
TABLE OF CONTENTS
S NO. TOPIC PAGE NO.
1. Executive Summary 2
2. Acknowledgement 3
3. Introduction 5-10
4. Literature Review 11-40
5. Research Objective 41
6. Research Methodology 42
7. Data Analysis 43-64
8. Findings 65
9. Recommendations & Limitations 66
10. Learning & Conclusion 67
4
11. Bibliography 68
ACKNOWLEDGEMENT
The experience at the summer training in “BIG BAZAAR”
Was homogeneous mixture of learning interest attaining
knowledge and having an outlook of the market. A large
number of individuals have directly as well as indirectly
contributed to the fulfillment of the project.
First and foremost I would like to thank Mr .Vikas Srivastava
for giving the opportunity to do the training in there
organization.
Finally. i would say, "to err is humane” and that the people
stumble not a mountain but on small stone .Above all ,I owe
everything to the almighty for giving me strenght to attain this
position.
Prashant kr. Mishra
5
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.
6
RETAIL INDUSTRY IN INDIA
Retail is India’s largest industry, accounting for over 10 per cent
of the country’s GDP and around eight per cent of the
employment. Retail industry in India is at the crossroads. It has
emerged as one of the most dynamic and fast paced industries
with several player.
Retailing in India is gradually inching its way toward becoming
the next boom industry. The whole concept of shopping has
altered in terms of format and consumer buying behavior,
ushering in a revolution in shopping in India is entering the
market.
The key players currently operating in the Indian retail industry
including pantaloons, Future Group, Trent Ltd, RPG
Enterprise, Vishal Retail Ltd, Shoppers Stop Ltd, Bata India
Ltd, Provogue India Ltd and Videocon Appliances Ltd. This
section analyses these players on the basis of current strategy
7
they are pursuing and their possible future strategic direction.
BIG BAZAAR
Big Bazaar is a chain of shopping malls in India currently with 75
outlets, owned by the Pantaloon Group. It works on same the economy
model as Wal-Mart and has had considerable success in many Indian
cities and small towns. The idea was pioneered by entrepreneur
Kishore Biyani, the head of Pantaloon Retail India Ltd.
Isse sasta aur accha kahin nahi
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LITERATURE REVIEW
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
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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
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1) Amount of service
Different products require different amount of
service, and customer service.
Self service retailers.
Limited service retailers .
Full service retailers
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.
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TYPES OF STORE
Specialty stores carry a narrow product line with a deep
assortment within that line. Examples include stores
selling sporting goods, books, furniture, electronics,
flowers, or toys. Today, specialty stores are flourishing,
due to the increasing use of market segmentation, market
targeting, and product specialization.
A Department store carries a wide variety of product
lines. Each line is operated as a separate department
managed by specialist buyers and merchandisers.
Supermarkets are large, low-cost, low-margin, high-
volume, self-service stores that carry a wide variety of
food, laundry, and household products.
Convenience stores are small stores that carry a limited
12 line of high-turnover convenience goods.
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
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.
5) Types Of Store Cluster
Most stores today cluster together to increase their customer pulling
power and to give consumers the convenience of one-stop shopping:
Central business districts A central business district comprises of
banks, department stores, specialty stores, and movie theatres.
A shopping center is a group of retail businesses planned,
developed, owned, and managed as a unit.
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None store retailing
Although most goods and services are sold
through stores, non-store retailing has been
growing much faster than store retailing.
Traditional store retailers are facing
increasing sales competition from catalogs,
direct mail, telephone, home TV shopping
shows, on-line computer shopping services,
home and office parties, and other direct
retailing approaches.
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Retail Formats
1) Department Store
Definition: Several product lines – typically clothing,
home furnishings and household goods – with each line
operated as a separate department managed by specialist
buyers or merchandisers. They carry a broad variety and
deep assortment, offer customer services and are organized
into separate departments for displaying merchandise.
Characteristics:
Customers : Upper Class
Land Holdin
16
Rental
3) Discount stores
Definition: A discount store is a retail store
offering a wide range of merchandise, limited
service, most of them private labels, at discounted
prices.
Characteristics:
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4) Hypermarts or Supercenter
Definition: A very large retail store that stocks highly
diversified merchandise, such as groceries, toys, and
camera equipment, or a wide variety of merchandise in a
specific product line, such as computers or sporting goods.
Characteristics:
19
6) Specialty Stores
Definition: Narrow product line with a deep assortment. A
clothing store would be a single-line store, a men’s
clothing store would be a limited-line store, and a men’s
custom-shirt store would be a super speciality store.
Characteristics:
Customers : For all
Stock Management : 1 month for locally
stocked goods and up to months for
imported goods
Strategy of Price Setting : Quite high prices
Size : 50,000 – 1,20,000 sq ft
Land Holding : Rental
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RETAIL INDUSTRY: AN
OVERVIEW
The Global Retail Industry
The global retail industry has traveled a long way
from a small beginning to an industry where the world
wide retail sales alone are today valued at $ 7 trillion .
The top 200 retailers alone account for 30% of
worldwide demand. Retail sales being generally driven
by people’s ability (disposable income) and
willingness (consumer confidence) to buy,
compliments the fact that the money spent on
household consumption worldwide increased 68%
between 1980 and 2005.
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GLOBAL 200 HIGHLIGHTS
The leader has in-disputably been the USA where some two-
thirds or $ 6.6 trillions out of the $ 10 trillions American
economy is consumer spending. About 40% of that ($ 3
trillions) is spending on discretionary products and services.
Retail turnover in the EU is approximately Euros 2000 billion
and the sector average growth looks to be following an upward
22 pattern.
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).
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GRAPHCAL PRESENTATION
250 25
200 20
150 15
100 10
50 5
0 0
2004 2005 2006 2007 2008 2009 2010
Total Retailing Market Figures in USD Mn
Organized Retailing
24
GOVERNMENT POLICY FOR RETAIL
SECTOR IN INDIA
There has been vigorous opposition to FDI in
retailing from small traders who fear that foreign
retailing companies would take away their business,
leading to the closure of many small trading
businesses and result in considerable unemploymet.
As a big move to liberalize FDI regime, on January
24 the cabinet approved new FDI norms for
retailing. It has allowed up to 51% FDI in single
brand retailing, as there is a strong view that FDI in
this segment would not displace jobs or impact the
local industry but help create employment.
25
TRADITIONAL RETAIL
FORMAT
Traditionally retail has always been a no-frill-
direct- selling layout. The retailers were merely
shop owners (usually), who would ideally sit at a
selling place full of products and follow customer’s
instructions as and when they come, and bill them.
Nothing less, nothing more.
Though, they are not completely non-existent
today, neither are they totally out-of-sync with
today’s consumer needs, but a lot of them are being
driven out of business (especially in the Developed
World) owing to the better alternatives of modern,
more efficient formats which are more convenient,
cost efficient and have an associated feel-good
factor owing to the battery of services offered.
26
Street market is an outdoor market such as traditionally held
in a market square in a market town, and are often held only
on particular days of the week. Very similar markets or
bazaars can also be found in large enclosed spaces, instead of
on a street.
The only way this format differs from the above is in its way
of pricing which is done on the basis of perceived benefit and
is subject to differ with different customers. Also, in this
format, unlike all others, there is a lot of room for bargaining.
27
LIFE CYCLE OF RETAIL FORMAT
FORMATS ADOTED BY KEY PLAYERS
RPG RETAIL Super Market(Food HyperMarket(Spence)
World) Specialty Store
(Music World)
Pantaloon Branded Outlets Hypermarket(Big
(Pantaloon Shoppe) Bazaar)
Piramal’s Departmental Store Discount Store( Tru
mart)
K Raheja Group Departmental Store Supermarket(TBA)
(Shoppers Stop) Hypermarket
SpecialtyStore(Crossw
ord)
Tata/Trent Departmental Store Hypermarket
28 (Westside) ( Star India Bazaar)
In the above graph, we can see the stage of the life cycle of
different retail formats in the western countries. In India it is
difficult to predict if the same trend will be evident as organized
retailing and modern retailing have a long way to go in terms of
market coverage.
Therefore it is important to strike with a format at the right
29time and reap maximum benefits.
EMERGING TRENDS IN INDIAN
RETAIL INDUSTRY
Tier-II’ Phenomenon
Small towns like {Surat, Lucknow, Dehra Dun}
witnessing
a defined increase in disposable income.
Leading to enhanced spending on consumer
goods
These Tier-II areas are fresh targets and are
expected to contribute 20-25% of
organized retailing sales.
•30
ENTRY OF INTERNATIONAL
PLAYERS
The fight today is not between Big organized retail
stores (3%) and Unorganized Kirana Shops (97%).
Its between global giants like Wal-Mart, Tesco and
Shopper’s Stop, Pantaloons.
Indian consumers will no longer be just dependent
on their local Kirana shop for their everyday needs.
Just shop once a week or once a month at
comparatively cheaper rates and remain hassle free.
31
EMERGENGE OF NEW
RETAIL FORMAT
Specialty Malls
•In order to offer a distinctive value proposition, mall
developers are planning to develop specialty malls.
•The Delhi-based Aerens Group has developed Gold
Souk, an exclusive jewellery mall that is already
operational in Gurgaon.
•‘Wedding Mall’ by Omaxe Group, ‘Automobile Mall’
etc.
•Home Malls’ offering the entire range of building and
interior décor.
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SUPPLIER & RETAILER
RELATIONSHIP
Organized retail increasing its presence, the traditional national
distributor-regional wholesaler-end retailer relationships are
gradually getting streamlined. However this new model has been
affecting the relationships that the manufacturer enjoys with the
traditional system which is still the most dominant in the entire
retail sector.
The issue of differential pricing is being taken up at several
forums and the growing dissatisfaction among the traditional
retailers is being addressed by the manufacturers. However we see
that in the long term, the role of a national distributor would
slowly fade away or get restricted to the rural/ upcountry regions.
The supplier-retailer relationship would come under severe
33pressure as each would try to squeeze maximum margins out of
other.
MORE USE OF TECNOLOGY
Retailing is at a nascent stage in India.
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.
Organized retailers are working towards revamping
their business to obtain strategic advantages at various
levels - market, cost, knowledge and customer.
34
MAJOR PLAYERS ENTER THE
RETAIL SECTOR
Some of India’ s biggest players have realized the potential that retail
holds and are making huge investments in this sector.
Reliance Retail
Reliance is set to revolutionize the retailing industry in India
A world class shopping environment
State of art technology,
A seamless supply chain infrastructure .
Planned investment in this sector is expected at Rs. 40,000 crores.
A seamless supply chain infrastructure .
Ensuring better returns to Indian farmers and manufacturers.
Greater value for the Indian consumer, both in quality and quantity,
will be an integral feature of this project.
The group plans to employ 5,00,000 employees in its retail venture.
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BHARTI’s ENTRY IN
RETAIL SECTOR
Bharti Enterprises owned by Sunil Mittal is finalizing a
massive retail foray.
The group will be entering into multi format retailing as
they believe that a diverse country like India cannot have a
single retailing format.
The company has joined hands with Wal- Mart, world’s
largest retailer to enter into a joint venture.
There would be a profit-sharing agreement between
WAL-Mart and Bharti and clauses to enable Wal-Mart to
pick up a stake in the retail venture as and when FDI rules
are changed
36
REASEARCH OBJECTIVE
MAIN OBJECTIVE-
To find out the influence of Advertising and Sales promotion on
the sales of the Big Bazaar.
SECONDARY OBJECTIVES-
To find the most effective tool of Sales promotion technique to
entice customers used by Retail businesses.
To study various advertising and sales promotion techniques used
by Big Bazaar.
To find out the influence of Advertising and Sales promotion on
the sales of Big Bazaar.
To find the effectiveness of the Brand recall and Recognition of
Big Bazaar.
To find out the ranking of Big Bazaar with its relative competitors
as per the customers.
To find certain new techniques that Big Bazaar can adopt to
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improve its services
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.
HYPOTHESIS- Sales promotion of the Big Bazaar influences
the sales of the Big Bazaaras compared to other attributes.
DESCRIPTIVE RESEARCH- Descriptive research includes
surveys and facts findings enquiries of different kinds .The
major pupose of Descriptive research is the description of the
state of affairs ,as it exists at present.Descriptive research is
used when the objective is to provide a systematic description
that is as factual as accurate possible .
Contd.
SAMPLE SIZE- The sample size that I have taken is 100
units ,out of which the number of male and female were as
follows-
Male- 43 in number
Female- 57 in number
SAMPLE AREA- Since the research is on Big Bazaar at
SAHARA MALL situated Gurgaon ,so the sample area that is
covered is as folows-
PRIMARY AREA – Areas near the mall or situated in gurgaon
SECONDARY AREA- Areas of Dwarka .
SAMPLE DESIGN- Simple random method
SOURCES OF DATA COLLECTION- Data collected in this
project is both collected both from both primary and secondry
sources of data collection which are as follows-
PRIMARY DATA - Franchisee forms, Interview, Questinnaire
SECONDARY DATA - Internet, Magzines, Books, News Paper
39etc
BIG BAZAAR
RETAIL MARKET SURVEY
Zone--------------
Date --------------- Form No.-------------------
Name:------------------------------------------------------------------------------------------------------
Address:---------------------------------------------------------------------------------------------------
City--------------------------Contact--------------------------------Shop Size------------------
Education---------------------------------------------------------------------------------------------------
Yrs in Trade---------------------Dependents-------------------Average sale P.M--------------------
Current sale margin on sale----------------------------- -----Average Purchase P.M-------------
Business Type:
1. Men’s Fashion
2. Kids’s wear
3. Toys and games
4. Home and general
5. Lifestyle
6. Mobile Shop
7. Book Shop
8. Office supplies
9. Ladies wear
10. Footwear
11. jewelery
Contd..
Interested in
Fanchisee
Rent
Business Affected From Big Brands
Yes
No
Computer knowledge
Proficient
Beginner
How much you can invest to start your business in modern retail format?
20 lacs onward(only for business)
Your Banking details
---------------------------------- Branch -------------------------------
----------------------------------A/c No---------------------------------
Current
Saving
Customer Sign-------------------- Date--------------------------------
Auth Signatory-------------------- Date--------------------------------
BIG BAZAR
FRANCHISE APPLICATION FORM
GENERAL INFORMATION
Name
------------------------------------------------------------------------------------------------
Address for
Communication--------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
State:------------------------------------ City:----------------------Pin Code----------------
Telephone ----------------------------- Fax------------------------Email-Id-----------------
Education
Detail:-----------------------------------------------------------------------------------
Details of current occupation/Business-------------------------------------------------------
Name of the Firm/ Company M/s-------------------------------------------------------------
Sole Partnership
Public ltd
Private ltd
o If employed , company and designation----------------------------------------------
o If owing a business , nature of business----------------------------------------------
o Monthly sales-------------------------------------------------------------------------------
DATA ANALYSIS
Frequency to visit market
for shopping
Frequency Persent Valid Cumulative
Persent Percent
45
40
35
30
Frequency
25
20
15
10
5
0
Daily Twice a week Fortnightly Monthly
FINDING-
Maximum people that is 40% like to visit market twice a week, 27
% of the people prefer to visit monthly, 23% of people visit fortnightly
and very little percentage that is 10% like to visit daily to the market.
Like shopping during sales promotion offers
60
50
Frequency
40
30
20
10
0
Highly agree Agree Not sure Disagree
FINDING-
Sales promotion is very effective tool to entice people for
shopping as great number of people that is more than 50%
agree that they like to shop during various sales
promotions.
Most attractive sales promotion offers
Buy 1 get 1
free Discount sales
FINDING-
Among the various sales promotions offered by the Big
Bazaar discount sales is the most preferred sales
promotion by the customers. Around more than 50%of
the people like to shop during discount sales.
FINDINGS
Sales promotion is very effective tool to entice people for
shopping as great number of people that is more than 50% agree that
they like to shop during various sales promotions
Among the various sales promotions offered by the Big Bazaar
discount sales is the most preferred sales promotion by the
customers. Around more than 50%of the people like to shop during
discount sales.
Around 80% of people visit to Big Bazaar out of the 100 people
surveyed.
Maximum people visit sometimes to big bazaar, that less than
monthly though the difference between the people who visit
monthly and who visit sometimes is very insignificant.
Maximum people that is 40% like to visit market twice a week, 27
% of the people prefer to visit monthly, 23% of people visit
fortnightly and very little percentage that is 10% like to visit daily to
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the market.
Contd…
Even out of people who visit Big Bazaar they were
also not able to recall its latest advertising campaign so it
implies that people visiting Big Bazaar are due to other
reasons but not advertising
About three-fourth people know the colour of its logo,
so its brand recognition is high
44% of people do not feel any discomfort while
shopping during maha saving offers, while 26 %feel
discomfort and 30%are not sure about it.
The picture is as clear as crystal ,maximum people are
able to recognize the tag line of Big Bazaar ,so its brand
recognition is high.
Big Bazaar is the most preferred destination as
50compared to its competitor
RECOMMENDATIONS &
LIMITATIONS
Recommendations
Big Bazaar should increase its aisle area for more convenient
shopping to its customers
It should improve its ambience as its closest competitors are
having edge over it on this parameter.
Big Bazaar should have more of cash counters so that people does
not have to stand in long queue in order to get billing.
Big Bazaar should work on its advertising ,though it is known for
its creative advertising but the message should reach to each of the
target customer so should use more rigorous use of all types of
media.
It should change its Tagline which gives the same message but is
still easily distinguishable ,as most of its competitors are having
almost similar tag lines that creates jargon for customer.
•51
LIMITATION
Time was the major constraint ,which prevented me to put
in more effort.
Some people left few questions unanswered.
Some of the respondents were not ready to fill the
questionnaire.
Not all the respondents were cooperative thus it was
difficult to convince them for filling up the questionnaire.
Some of the respondents might have got biased while filling
up the questionnaire.
I made my best efforts in conducting the research but might
•52
have lacked somewhere because of lack of expertise in
conducting such survey based researches.
LEARNINGS AND CONCLUSIONS
LEARNINGS
1) PROFESSIONAL LEARNINGS-
Learnt to operate statistical tool SPSS.
Learnt the process of research with the help of questionnaire practically.
Learnt how to interact at the corporate level
2) PERSONAL LEARNINGS-
Improved at my communication skills after interacting with different sets
of people.
Helped me to develop and maintain cordial relationships.
Infused me with more confidence.
Learnt how to remain patient during work.
53
CONCLUSIONS
Big Bazaar is the most preferred place for shopping by
all the customers, its recall and recognition level is
high .Sales promotion is the only factor that is
influencing its sales ,it has to really work hard at its
advertising campaigns ,there should be consistency in
advertising and should not be only during its sales
promotion campaigns. It stands far ahead from its
competitors but to remain in competition it has to really
improve in its services .As we know that now the
international retail giants like Wal-mart and Carrefour
are coming to India and will be a great threat to it, so it
has to really work hard.
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BIBLIOGRAPHY
WEB LINKS-
http://www.media4exchange.com/
http://www.wark.com/
http://www.ibef.org/
http://www.economicstimes.com/
http://www.bigbazaar.com/
http://www.magportal.com/
http://www.retailindustry.about.com/
http://www.adpunch.com/
BOOKS REFERED-
Belch. E. George and Belch. A. Michael, “Advertising and Promotion “Sixth
Edition, Tata Mcgraw Hill.
Kotler Philip,” Marketing management “Eleventh Edition, Pearson Education.
Beri G.C., ”Marketing Research” Third Edition, Tata Mcgraw Hill.
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QUESTIONS AND SUGESSTIONS...