“a study of consumer buying behavior in retail sector like big bazaar”

7/30/2019 “A study of consumer Buying Behavior in retail sector Like BIG BAZAAR”

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A Research Report on

“A study of consumer Buying Behavior in retail sector Like

BIG BAZAAR”

Submitted for partial fulfillment of award of

[MASTER OF BUSINESS ADMINISTRATION]

Submitted By

MANISH KUMARMBA (2011-13)

Roll No:-1122270025

Faculty Guide

Mrs.ANUJA SHUKLA

ITS ENGINEERING COLLEGEGreater NOIDA

(2011-2013)



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ACKNOWLEDGEMENT

With limitless humility, I would like to praise and thank ―GOD‖, the

Almighty, the merciful and compassionate creator of universe

whose blessing enabled me to go through this crucial endeavor.

I consider it great privilege to work under the guidance of

my mentor, Mrs ANUJA SHUKLA. It gives me extreme pleasure

to owe my profound sense of gratitude and indebtedness for her

sagacious and benevolent guidance, constant encouragement,

valuable suggestion, perceptive criticism, keen interest and

everlasting affection during the entire course of project.

MANISH KUMAR



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DECLARATION BY STUDENT

I hereby declare that the mentioned information in this report iscorrect up to my knowledge and I bear the responsibility for thecorrectness of the mentioned particulars.

MANISH KUMAR



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TABLE OF CONTENTS

Contents Pages

1. Introduction ………………………………….6

2. Objective of Research Study ……………..82.1. Market analysis …………………………...8

3. Research Methodology ……………………9

3.1. Source of data …………………………….9

3.1. a. Survey method …………………………93.1. b. Cross sectional survey………………..9

3.2. Sample size ………………………………...93.3. Time taken …………………………………..93.4. Tools and Techniques of analysis…......10-11

4. Literature Studies ………………………........12

4.1. Company profile ……………………………124.2. Diagram ………………………………………134.3. About us ……………………………………...14

4.3. a. Group vision ………………………………144.3. b. Group mission ……………………………144.3. c. Core values ………………………………..14

4.4. Introduction to big bazaar............................154.5. Big bazaar promises ………………………..164.6. Portfolio management …………………........174.7. Product line ……………………………………184.8. Marketing strategy ……………………………19

4.8. a. Segmentation ……………………………….194.8. b. Targeting ……………………………………..204.8. c. Positioning …………………..........................20-214.8. d. Marketing mix ………………………………..22-254.8. e. Retail mix …………………………………......26-27

4.8. f. Promotion mix ……………………………….28-33



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4.9. Distribution of revenue earner …….................344.10. Competitors …………………………………34-364.11. Major problems …………………………….......37

4.12. Future prospects …………………………...38-40

5. Work assigned by the company ………………..415.1. Business objective …………………………...415.2. Operating the scheme ………………………..415.3. Working …………………………………………42

5.3. 1. To know consumer Behavior ……………………………....42

5.3. 2. To get the right positioningDone…………………………………...455.3. 3. To maintain stock on floor.. ……455.3. 4. Update the prices …………. . …….465.3. 5. Discount criterion …………. . ……..465.3. 6. Inventory control ………… ……..465.3. 7. Work on barcode tender ……….....47

6. Survey………………………………………………..486.1. Survey analysis…………………….……..48-52

6.2. Trend analysis…………………….……….53-636.3. Conjoint analysis……………….………………64

7. General survey and consumer behavior analysis for packof two ……………………… ………… 65-69

8. Conclusion …………………………… …………70-78

9. Bibliography ………………………….……………….79

10. Annexure ………………………….……. ………..80-81



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1. INTRODUCTION

. RETAIL INDUSTRY In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. India retail industry is

progressing well and for this to continue retailers as well as theIndian government will have to make a combined effort. Thebranded food industry is trying to enter the India retail industry andconvert Indian consumers to branded food. Since at present 60%of the Indian grocery basket consists of non- branded items.India retail industry is expanding itself most aggressively; as aresult a great demand for real estate is being created. Indianretailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city.

The Indian retail market, which is the fifth largest retail destinationglobally, according to industry estimates is estimated to grow fromthe US$ 330 billion in 2007 to US$ 427 billion by 2010 and US$637 billion by 2015. Simultaneously, modern retail is likely toincrease its share in the total retail market to 22 per cent by 2011.

Continuing the robust growth of the organized retail in India,according to the Credit Rating and Information Services of India,the industry raked in US$ 25.44 billion turnover in 2007-08 as

against US$ 16.99 billion in 2006-07, a whopping growth rate of 49.73 per cent.

India retail industry is the largest industry in India, with anemployment of around 8% and contributing to over 10% of thecountry's GDP. Retail industry in India is expected to rise 25%yearly being driven by strong income growth, changing lifestyles,and favorable demographic patterns.



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"The story is not about us, but this story is about the people whovisit our stores. This is a proud moment for India."

One of the biggest retail here in India we know is Kishore Biyani‘sbig bazaar. The company ended 2007-08 with Rs5048crore inrevenue. Biyani's and Big Bazaar's, march comes at a time whenseveral new retailers are slowing expansion, reducing the number of outlets, effecting layoffs, even exiting the business.

By 2011, he claims, there will be 300 Big Bazaars, and PantaloonRetail (India) Ltd, his flagship, will have revenue of Rs13000crore.

Thus here we will know about the company profile, operations andalso about the consumer behavior towards the schemes, discount,etc which are offered by the store to facilitate customers.



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2. OBJECTIVE OF RESEARCH STUDY

2.1. MARKET ANALYSIS

The research objectives of this project are:-

a. Marketing activities and operational activities are always driven withan aim of getting sale increased with innovate ideas. Offers are designedin such a manner that customers are made to go and experience theshopping.Marketing also gives some offer to increase the bill size, taking in

consideration the on going fashion in vogue.

b. Marketing Strategies targeting the customer: Advertising Strategy –Understanding the media consumption habits of the customer.



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3. RESEARCH METHODOLOGY

3.1. SOURCE OF DATA

a. SURVEY METHOD

Data are usually collected through the use of questionnaires. Thedata is collected by mean of simple survey done in the retail storeof the customers.

b. CROSS-SECTIONAL SURVEYS

Cross-sectional surveys are used to gather information on a populationat a single point in time.

The customers were surveyed to find out their consumption behavior for the products in various schemes.

A different cross-sectional survey questionnaire might try to determinethe relationship between two factors, like religiousness of parents andviews on Internet filtering.

3.2. SAMPLE SIZE

A sample size of 90 was considered in this project. That is, a totalnumber of respondents were 90 for survey.

3.3. TIME TAKEN

The time of research was 1 month and surveys of some peoplewere done daily. The research was based on the change inconsumption of customers for the products in scheme.



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3.4. TOOLS AND TECHNIQUES OF ANALYSIS

a. PERSONAL INTERVIEW

Personal interviews are highly susceptible to inadvertent―signaling‖ to the respondent. The cumulative effect of severalfacial expressions is likely to be felt. By the use of this method thefacial expressions tell about how a customer feels about theproduct, and his knowledge about the product in the scheme.

This will let us know following:-

1. The reason could be known that why a product isnot liked and what are shortcomings in theproduct?

2. The preference for the product of the customer?3. Who are the frequent customers?

b. PROJECTIVE TECHNIQUES

Projective techniques are used when a consumer may feelembarrassed to admit to certain opinions, feelings, or preferences.It has been found that in such cases, people will tend to respondmore openly about ―someone else.‖

c. OBSERVATION OF CONSUMER

Observation of customers is often a powerful tool. Looking at howconsumers select products may yield insights into how they makedecisions and what they look for. Observing consumers, tellsabout:-

1. What is he looking in the product?2. Is he brand loyal?3. Is he more or less price sensitive?

4. Is he more interested in packaging,manufacturing, etc.



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5. Whether his taste has shifted?

Observation may help us determine how much time consumersspend comparing prices, or whether nutritional labels are being

consulted.

d. SCANNER DATA

Many consumers are members of supermarket ―clubs.‖ They areprovided with customer card which they have to present this whenthey make purchases; consumers are often eligible for

considerable discounts on selected products.

Nearly all retailers in the area usually cooperate. It is now possibleto track what the consumer bought in all stores and to have ahistorical record.

The consumer‘s shopping record is usually combined with:-1. Demographic information (e.g., income, educational level of

adults in the household, occupations of adults, ages of children, and whether the family owns and rents).

2. The consumption quantity could be know about theproduct which is used in good quantity?

e. PHYSIOLOGICAL MEASURES

Physiological measures are occasionally used to examineconsumer response. It helps to know:-

1. Advertisers may want to measure a consumer‘s level of arousal during various parts of an advertisement?

2. In retail stores paging is done at a interval of time of schemes and discounts so that people are made aware andthey can be provoked to buy.



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4. LITERATURE STUDIES

4.1. COMPANY PROFILE

Pantaloon Retail (India) Limited, is India‘s leading retailer that operates multipleretail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 10million square feet of retail space, has over 1000 stores across 61 cities in Indiaand employs over 30,000 people.

The company‘s leading formats include Pantaloons, a chain of fashion outlets,Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket

chain, blends the look, touch and feel of Indian bazaars with aspects of modernretail like choice

A subsidiary company, Home Solutions Retail (India) Limited, operates HomeTown, a large-format home solutions store, Collection i, selling home furnitureproducts and E-Zone focused on catering to the consumer electronics segment.

Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the EmergingMarket Retailer of the Year 2007 at the World Retail Congress held inBarcelona.

Pantaloon Retail is the flagship company of Future Group, a business groupcatering to the entire Indian consumption space.

Future Group is one of the country‘s leading business groups present in retail,asset management, consumer finance, insurance, retail media, retail spaces andlogistics. The group‘s flagship company, Pantaloon Retail (India) Limitedoperates over 10 million square feet of retail space, has over 1,000 stores and

employs over 30,000 people.

Future Group companies includes, Future Capital Holdings, Future GenerallyIndia Indus League Clothing and Galaxy Entertainment that manages SportsBar, Brew Bar and Bowling Co. Future Capital Holdings, the group‘s financialarm, focuses on asset management and consumer credit. It manages assetsworth over $1 billion that are being invested in developing retail real estate andconsumer-related brands and hotels.



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4.2. PANTALOON RETAIL INDIA LTD.

CENTRAL

BIG

BAZAAR

FOOD

BAZAAR

FASHION

STATION

PANTALOON



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4.3. ABOUT US

4.3. a. GROUP VISION:

Future Group shall deliver Everything, Everywhere, Every timefor Every Indian Consumer in the most profitable manner.

4.3. b. GROUP MISSION:

We share the vision and belief that our customers andstakeholders shall be served only by creating and executingfuture scenarios in the consumption space leading to economicdevelopment.

We will be the trendsetters in evolving delivery formats, creatingretail realty, making consumption affordable for all customer segments – for classes and for masses.

4.3. c. CORE VALUES:

Indianness: confidence in ourselves.

Leadership: to be a leader, both in thought and business.

Respect & Humility: to respect every individual and be humble inour conduct.

Introspection: leading to purposeful thinking.

Openness: to be open and receptive to new ideas, knowledge andinformation.

Valuing and Nurturing Relationships: to build long termrelationships.

Simplicity & Positivity: Simplicity and positivity in our thought,business and action.

Adaptability: to be flexible and adaptable, to meet challenges.

Flow: to respect and understand the universal laws of nature.



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4.4. INTRODUCTION TO BIG BAZAAR

a. It is a chain of shopping malls in India currently with 31 outlet ownedby Kishore Biyani‘s Pantaloon Group.

b. Big bazaar is not just another hypermarket, but also provides the bestproducts at the best price.

c. It Reflect the look and feel of Indian bazaars at their modern outlets. All over India, Big Bazaar attracts a few thousand customers on anyregular day.

d. Big Bazaar is a chain of department stores in India, currently with 92stores. It is owned by the Pantaloon Retail India Ltd, Future Group. Ithas considerable success in many Indian cities and small towns.

e. A department store is a retail establishment which specializes inselling a wide range of products without a single predominantmerchandise line. Department stores usually sells products includingapparel, furniture, appliances, electronics, and additionally select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewelery, toys, and sporting goods.

The idea was pioneered by entrepreneur Kishore Biyani, the CEO of Future Group. Currently Big Bazaar stores are located only in India. It isthe biggest and the fastest growing chain of department store and aimsto have 150 outlets by June 2009 and 350 stores by the end of year 2010.

http://en.wikipedia.org/wiki/Department_store

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Pantaloon_Group

http://en.wikipedia.org/wiki/Retail

http://en.wikipedia.org/wiki/Merchandise#Product_line

http://en.wikipedia.org/wiki/Apparel

http://en.wikipedia.org/wiki/Furniture

http://en.wikipedia.org/wiki/Appliance

http://en.wikipedia.org/wiki/Electronics

http://en.wikipedia.org/wiki/Paint

http://en.wikipedia.org/wiki/Hardware

http://en.wikipedia.org/wiki/Cosmetics

http://en.wikipedia.org/wiki/Jewelery

http://en.wikipedia.org/wiki/Toy

http://en.wikipedia.org/wiki/Sporting_goods

http://en.wikipedia.org/wiki/Sporting_goods

http://en.wikipedia.org/wiki/Toy

http://en.wikipedia.org/wiki/Jewelery

http://en.wikipedia.org/wiki/Cosmetics

http://en.wikipedia.org/wiki/Hardware

http://en.wikipedia.org/wiki/Paint

http://en.wikipedia.org/wiki/Electronics

http://en.wikipedia.org/wiki/Appliance

http://en.wikipedia.org/wiki/Furniture

http://en.wikipedia.org/wiki/Apparel

http://en.wikipedia.org/wiki/Merchandise#Product_line

http://en.wikipedia.org/wiki/Retail

http://en.wikipedia.org/wiki/Pantaloon_Group

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Department_store



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4.5. The Big Bazaar promise

a. MANUFACTURER’S WARRANTIES ON ALL PRODUCTS:

Big Bazaar promises to sell only the original products from theauthorized dealers; so that all applicable products carry theoriginal manufacturer‘s warranty. To service any productpurchased at Big Bazaar, customer can visit the authorized servicecentre of the manufacturer. The invoice accompanying theproduct is the warranty document.

b. GUARANTEED DELIVERY:

Big Bazaar guarantees to deliver the exact product that has selected,

without defects. In case of receiving a different product, or if the productis damaged in transit, the customer should contact it within the stipulatedtime period and Big Bazaar will ensure that it is replaced or refunded.

c. SECURE PAYMENT:

It commits to ensure that no payment misuse happens, so we workwith banks and payment gateways to ensure that your informationis protected. Payments are protected both by it and by the policies

of customer‘s bank, and the chances of fraud in these channelsare actually very low



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4.7. PRODUCT LINE

Here, one finds over 170,000 products under one roof that cater toevery need of a family, making Big Bazaar India‘s favoriteshopping destination. Where Big Bazaar scores over other storesis its value for money proposition for the Indian customers. BigBazaar, one finds a huge variety of products to select from with agood price and quality.In recent years, Big Bazaar has adopted value pricing in whichthey win loyal customers by charging a fairly low price for a high – quality offering. However, consistent low price for the products is

not only the universally desired characteristic.

S.M

ADDITIONAL

STORE

MANAGER

DEPARTMENT

MANAGER

SUB- DEPARTMENT

MANAGER

TEAM LEADER

TEAM MEMBER



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4.8. MARKETING STRATEGY

PROCESS FOLLOWED

Segmentation, targeting, and positioning together comprise a threestage process. We

a. Determine which kinds of customers exist,

b. Select which ones we are best off trying to serve,

c. Implement our segmentation by optimizing our products/servicesfor that segment and communicating that we have made thechoice to distinguish ourselves that way.

4.8. a. SEGMENTATION:

Segmentation involves finding out what kinds of consumers withdifferent needs exist. In the auto market, for example, someconsumers demand speed and performance, while others aremuch more concerned about roominess and safety.

Several different kinds of variables can be used for segmentation:-

1. Demographic variables essentially refer to personal statistics such asincome, gender, education, location (rural vs. urban, East vs. West),ethnicity, and family size. Campbell‘s soup, for instance, has found thatWestern U.S. consumers on the average prefer spicier soups—thus, youget a different product in the same cans at the East and West coasts.Facing flat sales of guns in the traditional male dominated market, amanufacturer came out with the Lady Remmington, a more compact,handier gun more attractive to women. Taking this a step farther, it isalso possible to segment on lifestyle and values.‖

2. Some consumers want to be seen as similar to others, while adifferent segment wants to stand apart from the crowd.

3. One can also segment on benefits sought, essentially bypassingdemographic explanatory variables. Some consumers, for example, likescented soap (a segment likely to be attracted to brands such as IrishSpring), while others prefer the ―clean‖ feeling of unscented soap (the―Ivory‖ segment). Some consumers use toothpaste primarily to promoteoral health, while another segment is more interested in breathe

freshening.



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4.8. b. TARGETING:

1. In the next step, we decide to target one or more segments. Our choice should generally depend on several factors:-

First

How well are existing segments served by other manufacturers? It willbe more difficult to appeal to a segment that is already well served thanto one whose needs are not currently being served well.

Secondly

How large is the segment, and how can we expect it to grow?

Thirdly

Do we have strengths as a company that will help us appeal particularlyto one group of consumers?

2. Big Bazaar targets higher and upper middle class customers.

3. The large and growing young working population is a preferredcustomer segment.

4. Big Bazaar specifically targets working women and homemakers who are the primary decision makers.It is part of Big Bazaar‘s new Guerrilla Marketing Strategy.

4.8.c. POSITIONING:

Positioning involves implementing our targeting. For example, Apple

Computer has chosen to position itself as a maker of user-friendlycomputers.



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4.8. d. MARKETING MIX

Main Aspects of Marketing MiX

The easiest way to understand the main aspects of marketing isthrough its more famous synonym of "4Ps of Marketing". Theclassification of four Ps of marketing includes marketing strategiesof product, price, placement and promotion. The following diagram

is helpful in determining the main ingredients of the four Ps in amarketing mix.



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PRODUCT:

In simpler terms, product includes all features and combination of goods and related services that a company offers to its customers.

Product is the most important aspect of marketing mix for two mainreasons. First, for manufacturers, products are the marketexpression of the company's productive capabilities and determineits ability to link with consumers. So product policy and strategyare of prime importance to an enterprise, and product decisionsdictate the scope and direction of company activity. Moreover, themarket indicators such as profits, sales, image, market share,

reputation and stature are also dependent on them. Secondly, it isimperative to realize that the product of any organization is both acomponent and a determinant of the marketing mix as it has agreat influence on the other elements of the mix: advertising,personal selling, channels of distribution, physical distribution andpricing. So without proper product policy, a company can notpursue for further elements of marketing mix.



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PRICING:

Pricing is basically setting a specific price for a product or serviceoffered. In a simplistic to the concept of price as the amount of

money that customers have to pay to obtain the product. Setting aprice is not something simple. Normally it has been taken as ageneral law that a low price will attract more customers.



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4.8. e. RETAIL MIX:

1. Merchandise assortment

The company was looking for a solution that would bring all of itsbusinesses and processes together. After a comprehensiveevaluation of different options and software companies, themanagement at Pantaloon decided to go in for SAP.

Some of the qualities of SAP retail solutions are that it supportsproduct development, which includes ideation, trend analysis, andcollaboration with partners in the supply chain; sourcing andprocurement, which involves working with manufacturers to fulfilorders according to strategic.

2. Place

In the channels of distribution, the physical facilities point of

location.

3. Price

4. Visual merchandising

Visual merchandising supports:-

a. sales

b. retail strategies

c. communicates with customers

d. communicates image

e. supports retailing trends.

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Visual merchandising includes:-

1. Interior merchandising

Sufficient visual merchandizing within the store that includeddanglers, signage, standees, distribution of pamphlets, whichgave details of the offer.

Display, point of purchase, fixture, equipment and furnishingsstore layout.

Product packaging and labels.

2. Exterior merchandising

TVC on popular entertainment channels like Star Plus, Sony,Set Max, and Star One.

Road shows carried out by the Big Bazaar staff withannouncements about the offer to make people aware.

Newspaper ads in almost all the local dailies like Sakal, TheTimes of India, on different days during the period of the offer.

Store atmosphere.



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4.8. f. RETAIL PROMOTION MIX

1. ADVERTISING:

Advertising is recognized as an indispensable tool of promotion. Ithas acquired a lot of significance in the national and internationalmarkets. With the advent of globalization and liberalization itsimperativeness in the Indian retail sector has increased as a resultof competitions, latest technologies, and the rapidly changingconsumer lifestyles.

a. Objectives of Advertising:

The fundamental objective of advertising is to sell something –aproduct, service, or an idea.

The Major Objectives of advertising are:1. To promote a new product.2. To warn the public against imitation of the retailer‘s product. 3. To manage competition in the market.

b. Benefits of Advertisements:

1. Advertisement helps in creating awareness among the customer about the existence, price, and availability of product.2. Increases the utility of existing products.3. It educates customer about new product and their diverse uses.

c. Types of advertising:

1. Informative Advertising:

Purchases of durable products are generally erratic and often tooexpensive to buy, so the retailer spends a huge amount oninformative advertising.

2. Corporate Advertising:

Its main motive is to build a corporate image. Corporate

Advertising builds up retailer image. It increases goodwill towardsthe retail organization.



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3. Financial Advertising:

It refers to advertisements by various financial institutions. Big

Bazaar has also tied up with ICICI bank, which provide informationabout the investment opportunities and the risks and benefits.

4. Classified Advertising:

It refers to messages, which are placed under specific headingsand columns in various magazines and newspapers.

2. PROMOTION:

Promotion can be loosely classified as "above the line" and "belowthe line" promotion. The promotional activities carried out throughmass media like television, radio, newspaper etc. is above the linepromotion. The terms 'below-the-line' promotion or communications refers to forms of non-media communication,even non-media advertising. Below-the-line promotions are

becoming increasingly important within the communications mix of many companies, not only those involved in fmcg products, butalso for industrial goods.

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1. BELOW THE LINE SALES PROMOTION

Some of the examples of BTL (below the line) promotions are byexhibitions, sponsorship activities, public relations and salespromotions like giving freebies with goods, trade discounts given todealers and customers, reduced price offers on product.

Methods of below the line sales promotion:-

a. Price promotions

Price promotions are also commonly known as" price discounting".These can be done in two ways:-

1. A discount to the normal selling price of a product, or more of the product at the normal price.

2. Price promotions however can also have a negative effect byspoiling the brand reputation or just a temporary sales boost(during the discounts).

b. CouponsCoupons are very versatile, way of offering a discount. Following

are the examples of the use of coupons:--On a pack to encourage repeat purchase-In coupon books sent out in newspapers allowing customers toredeem the coupon at a retailer.-A cut-out coupon as part of an advert.-On the back of till. down.

c. Gift with purchase

The "gift with purchase" is a very common promotional technique.In this the customer gets something extra along with the normalgood purchased.

d. Competitions and prizes

This is an important tool to increase brand awareness amongst thetarget consumer. It can be used to boost up sales for temporaryperiod and ensure usage amongst first time users.



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e. Money refunds

Here, a customer receives a money refund after submitting a proof of purchase to the manufacturer. Customers often view these

schemes with some suspicion – particularly if the method of obtaining a refund looks unusual or onerous.

f. Frequent user / loyalty incentives

Repeat purchases may be stimulated by frequent user incentives.

g. Point-of-sale displays A data collection system that electronically receives and stores bar

code information derived from a sales transaction. This could thezip codes for library users, facilitating the library in determininggeographic market are that users reside in.

• Low prices on Wednesday Low prices on Wednesday• Concept of Big Day Concept of Big Day• Promotional offers

1. School Jao Khushi Khushi

2. Khushi Ki Barsaat3. Happy Father‘s Day

E.g.Big Bazaar's `junk' swap offer Big Bazaar is launching a promotional offer from Saturday, with theslogan, "Bring anything old and take something new".

The prices fixed by Big Bazaar are: clothes (Rs 200 per kg),

newspaper (Rs 25 per kg), plastics/utensils/leather goods (Rs. 75per kg), footwear/luggage (Rs. 100 per kg), Pet/beer bottles (Rs 15per kg), tyres (Rs 50 per kg), furniture (Rs 75 per kg) and others(Rs 20 per kg)."This offer will help the housewife clean out the junk while getting agood value for it.



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3. PERSONAL SELLING:

Persuasive communication between a representative of thecompany and one or more prospective customers, designed toinfluence the person's or group's purchase decision.

4. PUBLICITY OF PRODUCT:

Publicity non-personal communication in news story form about anorganization, its products or both, that is transmitted through amass medium at no charge.

5. PUBLIC RELATION:

Public relations the planned and sustained effort to establish andmaintain goodwill and mutual understanding between anorganization and its target publics.

6. INTERNAL ATTRIBUTES:

a. Envelope

Something that envelops; a wrapping. A products wrappingaffects a lot on its sale. More customers are attracted if envelopeis very attractive.

b. Internal layoutMethodsof display•Visual merchandising

7. LOGISTICS:

Logistics is the art and science of managing and controlling theflow of goods , energy, information and other resources likeproducts.



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8. SUPPLY CHAIN:

Supply chain, is a coordinated system of organizations, people,

activities, information and resources involved in moving a productor service in physical or virtual manner from supplier to customer.Supply chain activities transform raw materials and componentsinto a finished product that is delivered to the end customer .

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4.9. DISTRIBUTION OF REVENUE EARNER

a. Big Bazaar is working to make fashion its largest revenue

earner.

b. Big Bazaar, the value retailing chain of the Rs 4,500crorePantaloon Retail, is strategieng to focus specially on ‗fashionretailing‘ or its apparel business to boost overall revenues.

c. It has created ‗Fashion @ Big Bazaar‘, a sub-brand, to positionthe format as much more than food or general merchandise.

d. Big Bazaar is looking at making apparel business its largest

revenue generator, as much as 40 per cent in two years and 50per cent of its overall business, in five years.

e. Currently sales of apparel make up almost 30 per cent of BigBazaar‘s revenues, which is next only to its food retailing businessthat makes up almost 40 per .

f. Future Group recently clocked over Rs 350crore of sales in five‗Mahabachat‘ days, with sales exceeding Rs 105crore on the last

day.g. During this time, the largest selling category was apparel. Asmany as 1lakh jeans were sold and onelakh sarees as well assome 2 lakh t-shirts.

h. Some of Big Bazaar‘s private labels, like DJ&C and Knighthood,are already big revenue generators, with DJ&C projecting Rs1,000crore in the next three years, from 600crore right now.

4.10. COMPETITORSBig bazaar operates in a competitive environment. For each line of business, they face competition from established national and regionalcompanies. In the fashion segment, they probably face competition fromShoppers Stop, Trent and Lifestyle. The hypermarket business isrelatively new, being just about three to four years old in the country. Bigbazaar faces competition from the likes of RPG (Spencer‘s), Trent (Star India Bazaar) and with Shoppers Stop too indicating their entry into thehypermarket segment. In the Food business, Big Bazaar faces

competition from Subhiksha, Food World to name a few.



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a. RPG GROUP: Spencer & CompanyLimited is another retail group in the cowithsupermarkets,music stores, and

beauty and health chain—Health & GloFood world, operated by FoodSupermarkets Limited, while Health &by the RPG Group. It is also Planningwill have 450-plus Music World, 50Spencer's Hyper covering 4 mn sq.2010.

b.KRAHEJA’SDEPARTMENTSTORE CHAI

K Raheja‘s Shoppers Stop, is the selargest retailer in the country and becaretailing operation an Indian successIt also acquired the Crossword chaibookstores.

It Operates Shoppers Stop, Crosswor orbit Mall, and 'Home Stop' formats.operate 55 hyper city hypermarkets

US$100 million sales across India by 2

c.SUBHIKSHA SUPERMARK Subhiksha was immensely popular iSouth, particularly in Chennai, where itgroceries and pharmaceutical probelow the MRP. It expected to earn aturnover of Rs 1,200 crore in 2008-09planned to expand outside Tamil NaduPondicherry. It planned for 550 stores i

next five years.

d. RELIANCE RETAIL: Investing Rs.30000 crore ($6.67billion) in setting up multiple retailformats with expected sales of Rs.90,000 crore-plus ($20 billion) by2009-10.



36

e. LIFESTYLE: Investing Rs.400 crore-plus ($90 mn)in next five years on MaxHypermarkets & value retail stores,

home and lifestyle centers.

f. PIRAMYD RETAIL: Aiming to occupy 1.75 million sq.ftretail space through 150 stores in nextfive years.

g. TATA GROUP:

Tata Group has two retailingcompanies; Trent Limited, headed by

Noel Tata, which owns Westside, Star Bazaar and Landmark retail brandsand Tata Infiniti, headed by KrishnaKumar, which owns Croma brand.

Trent Ltd, he retail arm of the TataGroup, has drawn up a Rs 2,000 croreinvestment plan for setting up 50hypermarkets — Star Bazaar — over the next five years.

Tata Ceramics Limited,which manufactures a wide range of ceramic products likeflatware ceramics (Dinner plate,Dessert plate, Saucer) and hollowwareceramics (Vegetable Dish, Oatmeal,Sugar Pot, Creamer, Coffee/Tea Cupsand Pots, Salad Bowl etc.) in plain as

well as fluted shapes, under the brandname of CERA, launched its firstexclusive branded store in Pune . Tata Ceramics, which achieved salesof Rs 35crore last year, is looking atadding another Rs 12 crore fromdomestic sales in the next two years.



37

4.11. MAJOR PROBLEMS

a. Retailing is in a rapid state of change due to speedytechnological developments, changing competitive positions,varying consumer behaviors as well as their expectations andliberalized regulatory environment. In such a scenario, informationis crucial to plan and control profitable retail businesses and it canbe an important source of competitive advantage so long as it isaffordable and readily available.

b. Most retailers collect and have access to huge amount of data,collected from day to day operations e.g. customer loyalty data,retail store sales and merchandise data, demographic projectiondata etc. Currently retailers are data rich but information poor.There is a great potential to develop systems that enable analystsand decision makers to manage, explore, analyze, synthesize andpresent data in a meaningful manner for decisions.



38

4.12. FUTURE PROSPECTS

a. Big bazaars have two AMC‘s. One that specializes in Propertyand the other is a ‗Consumer India Fund‘. The property fund aims

at sourcing high quality property at the lowest possible rates, whilethe consumer fund will look at providing our retail pipeline andexpertise to national and regional brands, thereby enabling themwith a wider coverage.

b. Though they have secured 30% of modern retail space comingup in the next three years, our endeavour is to keep evolving withthe young Indian consumer. As regards mind share, we want allour store formats to capture the imagination of the target customer.

c. The future will also see the pantaloon of several new contargeted at the Indian consumer. Further, retail development will nooccur in Tier 1 cities, but will have far more significance in Tier cities as well. The consumption drive would be fueled in smaller tand cities.

d. There would be definite customer responsiveness towards Added products and services in the next few years. Since value rettouches the mass of the population, and with organized retailing atUS $ 300 billion at present, value retailing has the scope to aldouble.

e. Retail chain Big Bazaar (Mumbai) plans to open 15 more storesby November end, some of them in new markets, at an investment

of Rs 1,500-1,600 crore.

f. Big Bazaar is targeting a network of 145 stores by June2009.They have zeroed in on several new and existing markets for the 15 stores that they plan to open by end-November. Theinvestment will be in the range of Rs 1,500-1,600 crore.

g. The stores would be set up in places such as Mysore, Pune,Cuttack, Kolkata, Chandigarh, Agra, Faridabad, Surat, Nashik,

Mumbai, Delhi and Solapur, adding that in some locations twostores would be opened.



39

h. The retail chain would be extending its footprint into newmarkets such as Mysore, Cuttack, Chandigarh, Faridabad andSolapur.

i. Big bazaar will focus on-

Shoppertainment : It will be a convergence of shopping,entertainment and eating. Shopping and entertainment together called Shoppertainment is targeted at the family. It‘s more than justshopping.

• E-tailing : Is the selling of retail goods on the Internet. Short for ―electronic retailing‖. The term seems to be almost inevitable

addition to e-mail, e-business, and e-commerce. It is synonymouswith business-to-consumer (B2C) transaction.

j. News related big bazaar, which is expected to generate revenueof $1 billion in the fiscal 2007-08. Big Bazaar is a hypermarketformat of the Pantaloon Retail (India) Ltd.The Group expects to increase its revenues to $7-8 billion by2011, of which Big Bazaar is expected to contribute a large chunk

of around $4 billion. It has emerged as the largest retail format of Future Group's retail division. ―Currently they have more than 80Big Bazaars and we are planning to scale it up to 160 by the year that the company was going to go very aggressive in rolling out theBig Bazaar formats, the total floor area by 2011 would scale up to30 million square feet from the present figure of 10 million squarefeet.

k. ―The consumer electronics segment is doing extremely well,‖ he

said, elaborating that the group was expecting the segment togenerate revenue of Rs 2,000 crore by next year.

l. Future Group plans to have 300 stores and has projectedrevenues of Rs 13,000 crore by 2011.

m. Total income has increased to Rs 1,381.44 crore for the quarter ended June 2008 from Rs 1,037.42 crore for the quarter endedJune 2007, posting a 33.16 jump.



40

n. The company said in a statement that it has posted a net profitof Rs 125.97 crore for the year ended June 2008 against Rs119.99 crore for the year ended June 2007.

o. Its total income has increased to Rs 5,052.67 crore for the year ended June 2008 from Rs 3,328.77 crore during the last fiscal. TheGroup posted a consolidated net profit of Rs 21.93 crore for theyear ended June 2008 as compared to Rs 35.54 crore for the year ended June 2007.

p. However, its total income has increased from Rs 3,565.48 crorefor the year ended June 2007 to Rs 5,866.50 crore for the year ended June 2008.



41

5. WORK ASSIGNED BY THE COMPANY

5.1 BUSINESS OBJECTIVE:

To increase footfalls and enhance sales by:

a. Attracting customers by giving them various offers.b. Inculcating in their minds the value for money through theseoffers.c. Increasing the average consumption of existing customers.

5.2 OPERATING THE SCHEME:

a. All Category provided offers well in advance.b. I.T uploaded the offers one day in advance and recheckedthem.

c. V.M also did splendid job by putting the required offer signage‘sand also decorated the store as per the SS3D theme.d. HR managed the shift time of employee; Snaks were arrangedfor the staff.

e. SM, ASM, DM, ADM-Planned and managed micro analysis of targets and staff was done by taking department wise meeting.



42

5.3 WORKING……..

5.3.1. TO KNOW CONSUMER BEHAVIOR TOWARDS SCHEME:

Ready to eat Housewives,families,individuals.

Chef zone Housewives, families

Chill station Housewives, individuals

Staples Families, housewives

Vegetables Families, housewives

Non food items Families, housewives

On the basis of demographic factors

AGE INCOME PREFERENCES/HABBITS

Adolescent

(New age teens)

Do not earn Fond of spending on eatingout, etc

Youth Mostly Brand conscious, productconscious.

Age (35-45) Good incomerate

Good spenders, they likeupgrading their householdsgadgets.

Age (45-60) People at thepeek of their careers

Spend less

Above 60 Steady income Spend only on households.



43

BUYING PROCESS

a. NEED RECOGNITION:

The customer first points out the things which he need. His goodpart of income is spend on things of his daily requirement.

b. INFORMATION SEARCH:

Before purchasing of a product, customer research internally andexternally. Internally-retrieving information about similar purchasemade earlier, decision about choice criteria, brand included, or advertisement related to the product. Externally- source such asfamily, friends, commercial sources, etc.

c. EVALUATION OF ALTERNATIVES:

Before, purchasing customer looks for the alternatives of thatproduct. Customer goes for good quality in cheapest rate.

d. PURCHASES:

Purchaser many times faces cognitive dissonance which arisesdue to uncertainty of making right decision. This is becausechoice of one product often means rejection of attractive features

of the alternatives.

e. AFTER PURCHASE EVALUATION:

Customer by using the product comes to know about the real valueof product.



44

CONCLUSION:

It should be considered that big bazaar targets every class. Thus weknow that different people have different thinking style.

Most of their buying decisions or his behavior depends on his:-

a. PERCEPTION:

Perception is the process by which a customer makes sense of information that he receives. Therefore, it is to be tried that customer receives the right information about every product and about its scheme,because a single error in communication to customer can create

confusion to him and he may not buy the product.

b. LEARNING:

It is the change in the content or organization of long time memory and isa result of information processing. Thus company should try to hit thecustomer‘s memory. I.e. Company should have good impression on thememory of the customer. As this memory acts as a internal informationsource in the decision making process.

c. MOTIVATION:

Motivation helps a lot to maintain loyal customers. A customer isloyal only when he sees any extra benefits. Thus discounts, freegifts, free coupons, etc such schemes motivate them a lot. Manytimes, good quality of the product, reasonable prices, packaging,etc also works as motivational tool.

d. PERSONALITY:

Personality can be of many types as introvert-extrovert, sociable-loner, and competitive-cooperative. Brand personality is thecharacterization of brands as perceived by customers. Brand maybe as ‗for young‘ like branded jeans of Levi‘s, Lee, Woodland, etc.Big bazaar also target same concept.



45

e. CUSTOMER LOYALITY AND PROFITABILITY:

Relationship between loyalty and profitability should be decided onthe basis of loyal customers that are really profitable for company.

The loyal customers are believed to be cost less to serve, they arewilling to pay more than other customers and act as a word- of-mouth promoters for the company. It is believed that one sure wayto earn greater profits is to win loyalty of customers.

5.3.2. TO GET THE RIGHT POSITIONING DONE OF THE PRODUCTUNDER SCHEME:

It is the customer‘s beliefs about the company‘s product being of,say, high quality, or low price, or durable, etc. Thus it is verynecessary that product should be according to the customersneed. It should not be damaged, in store product should be givenopen facing. For pack of two the products were given alternate 4facing. I.e., one row of single and other row of double.

5.3.3. TO MAINTAIN STOCK ON THE FLOOR:

In retail stores less stock is maintained. This stock on other handis sufficient enough to fulfill the demand of that vary product instore.

To know the exact amount to be maintained on floor it is verynecessary to know:-

a. Product facing

b. Capability to maintain stock in warehousec. Demand of the product.

d. Profit margin on the product.



46

5.3.4. TO UPDATE THE PRICES:

Pack of two was the new scheme, so its prices to be get changedon rem for those products whose prices have changed by the

producing company. The work was to report DM or team leader about the increase in prices and get it updated on rem so thatdiscount could be given accordingly.

5.3.5. DISCOUNT CRITERION:

a. The discount was given on the scheme of pack of two.b. The discount was 1/4th on the profit of the retail company.c. I. e if the company is getting profit of rs10 on a product, whose

mrp is 100.d. Then after discount it is sold at rs97.5 in the store.

5.3.6. INVENTORY CONTROL:

Since inventory represents cost, managers seek stockminimization. To always have in stock every conceivable item thata customer might order would normally be prohibitively expensivefor companies marketing many items.

At the store (Lucknow) I saw this problem many times with many of the products. The stock order placed should be more in thestarting of the month as at that time customer‘s purchasing power is more. But I usually saw that order placed was somewhat samethroughout the month due to which there was stock out in some of the items in food.



47

HOW TO WORK ON BARCODE TENDER:

Barcodes are the labels which shows price of product after giving thediscount on that product.

Bar tender is the software by which we use to take out the bar codes.

Process:-

a. To select items according to their EAN numbers Include for export exit enter.

b. No. of quantity done.

c. now go to next program of print select the items;

ok



48

6. SURVEY

6.1 SURVEY ANALYSIS

1. Total people surveyed-90

2. Total people who responded well-72

a. Surveyed :-

1. Men: 22

2. Women: 30

3. Youngsters: 18

4. Children: 8

5. Old aged: 12

Men

Women

Youngs

Childern

Old age



49

b. Marital status:-

1. Married: 74 2. Unmarried: 16

c. Occupation:-

1. Student: 20

2. Business: 38

3. Service: 27

Married

Unmarried

0

10

20

30

40

Student Bussiness Service Any other

No. of

Person

Student

Bussiness

Service

Any other



50

d. Income group: -

1. 0-10000: 20

2. 10000-20000: 24

3. 20000-30000: 28

4. More than 30000: 18

e. Is your home: -

1. A single family house: 55

2. Two family house: 25

3. Single: 10

0

5

10

15

20

2530

No.of Person

0-10000

10000-20000

20000-30000

more than 30000

Single family house

Two family house

single



51

f. Indicate activities/interests which you and/or householdmembers enjoy on a regular basis:

1. Bicycling/running: 1

2. Dieting: 25

3. Crafts: 5

4. Foreign travel: 15

5. Gourmet/fine food: 45

6. Fashion clothing: 40

7. Bible/devotional reading: 12

8. Physical fitness/exercise: 69

9. Stereo/records and tapes: 14

bicycling dieting craft foreign travel

fine food fashion clothing devotional reading physical fitness

tapes/records art outdoor gardening wildlife

health foods money making book reading self improvement

watching sports charities others



52

CONCLUSION FROM SURVEY ANALYSIS

a. Men and women both are responsive this shows that they have

interest in the products either they buy or not. They have goodknowledge about the product they buy.

b. Women are very careful about what they buy but sometimesmen tend to ignore some of the features of product.

c. Women are more attracted and keen to know about theschemes, discounts, gifts, etc on product



53

6.2 TREND ANALYSIS

a. how often you used this product before the scheme?

1. Everyday: 49

2. More than once a week: 21

3. Once a week: 20

b. How often do you use products from this [SERVICECATEGORY]

1. Every day: 55

2. More than once a week: 29

3. Once a week: 6

everyday

more than once a week

once a week

Every day

Once a week

More than once a week



54

CONCLUSION FROM TREND ANALYSIS

Trend analysis shows that consumption rate of the products was

good, as the products were mainly daily used products. Earlier therate of using of product was less in comparision, after the scheme.

6.3 CONJOINT ANALYSIS

a. Stores are conveniently located:-

1. Very Strongly Agree: 20

2. Strongly Agree: 28

3. Agree: 27

4. Disagree: 15

0

5

10

15

20

25

30

very stronglyagree

stronglyagree

agree disagree

very strongly agree

strongly agree

agree

disagree



55

b. Store atmosphere and decor are appealing:-


2. Agree: 40

3. Disagree: 21

strongly agree

agree

disagree



56

c. A good selection of products was present.


2. Agree: 55

3. Disagree: 11

strongly agree

agree

disagree



57

d. (Store) has the lowest prices in the area:-


2. Agree: 45

3. Disagree: 15

e. Merchandise sold is of the highest quality:-


2. Agree: 52

3. Disagree: 12

0

10

20

30

40

50

Stronglyagree

Agree Disagree

No of Person

Strongly agree

Agree

Disagree

Strongly agree

Agree

disagree



58

f. Merchandise displays are attractive:-


2. Agree: 69

3. Disagree: 12

g. Advertised merchandise was in stock:-


2. Agree: 67

3. Disagree: 9

0

20

40

60

80

Stronglyagree

Agree Disagree

No.of person

Stronglyagree

Agree

Disagree

Strongly agree

Agree

Disagree



59

h. Overall, I am very satisfied with the store:-


2. Agree: 30

3. Disagree: 5

i. I am very satisfied with the price I paid for what I bought:-


2. Agree: 53

3. Disagree: 3

0

10

20

30

40

50

60

Stronglyagree

agree disagree

No.of Person

Strongly agree

agree

disagree

strongly agree

agree

disagree



60

j. I am very satisfied with the merchandise I bought:-


2. Agree: 70

3. Disagree: 8

Select the rating that best describes how you feel about [PACK OFTWO SCHEMES].

k. Quality:-


2. Agree: 28

3. Disagree: 15

4. Disagree Strongly: 15

5. Very Strongly Disagree: 2

strongly agree

agree

disagree



62

m. How interested would you be in using the product in thisscheme:-1. Not at all interested: 0

2. Not very interested: 3

3. Neutral: 2

4. Somewhat interested: 25

5. Extremely interested: 50

6. Not sure: 10

0

10

20

30

40

50

Not at allNot very interestedNeturalSomewhat interestedExtremely intrestedNot sure

No.of Person

Not at all

Not veryinterested

Netural

Somewhatinterested

Extremelyintrested

Not sure



64

People are satisfied with the store locations. There is good ratingin favour of atmosphere, décor and quality of product offered tocustomer in exchange of the reasonable prices.

People have shown their keen interest towards the products inscheme. They say that for them any discount is good if the productis of their utility.

Customers are interested to buy the products again and again of the scheme.



65

7. GENERAL SURVEY AND CONSUMER BEHAVIORANALYSIS FOR THE NEW SCHEME OF PACK OF TWO

a. Do you find the choices in biscuits according to your preference:-

1. Very Strongly Agree: 20


3. Agree: 23

4. Disagree: 15

very stronglyagree

strongly agree

agree

disagree



66

b. Biscuits most preferred-

Britannia:-

1. Britannia gday butter: 32

2. Britannia gday pista: 16

3. Britannia gday cashew: 20

4. Britannia jim jam: 55

5.Britannia crm treat bourbon 32

c. Parle:-

1. Parle hide n seek choco chips (200g): 24

2. Parle hide n seek choco (100g): 61

3. Parle bourbon cream (200g): 45

4. Parle digestive (176g): 34

5. Parle krack-jack (240g): 21

6. Parle glucose (220g): 50

0

10

20

30

40

50

60

gdaybutter

gdaypista

gdaycashew

jim jam bourbon

gday butter

gday pista

gday cashew

jim jam

bourbon



67

d. Maggi preffered most:-

1. Maggi noodle masala (380g): 35

2. Maggi noodle masala (570gm): 30

3. Maggi noodle masala (760g): 32

4. Maggi noodle vegetable atta (360g): 24

5.Maggi noodle rice chilli chow (332g): 8

hide&seek(200g)

2nd Qtr

bourbon(200g)

digestive(176g)

krack-jack(240g)

glucose(200g)

maggi noodle msla(380g)

570g

760g

veg atta noodle(360g)

rice chilli chow



68

e. Mtr products:-

1. MTR dessertmix badam drink (220g): 11

2. MTR dessertmix gulab jamun mix (200g):10

3. MTR payasam kheer (220g): 60

4. MTR readymeal suji upma: 16

5. MTR snackmix dosa mix (500g): 12

6. MTR snackmix rava dosa (500g): 19

7. MTR snackmix rava idli (500g): 6

8. MTR snackmix uttappam (500g): 15



69

CONCLUSION

Maggi showed a good response day by day but those like Chili

Chow, Lemon masala, Rice shahi pulao was not up to satisfactorydemand.

Mtr Badam drink, Gulab jamun, Rava idli, Dosa mix were less indemand may be due to season.

Mtr Payasam kheer showed outstanding demand.

Parle hide n seek (100g), Digestive, Bourbon, krack jack were in

good demand in families. These were like combination of chocolate, lite, salty biscuits.

Britannia Jim jam and Bourbon were preferred by children, andpista, butter; cashew also provided a great choice in ready to eatsection.

Nestle chocolates Kit Kat of 34g, 99g were in good demand.

Red label tea nature care ct 2*250g, Tata tea gold and premium2*500gm should continue because their demand was increasingslowly.

Bikano Alu Bhujia and Bikaneri bhujia should be continued asaffordable prices for all customers. It is competing Haldiram andmany local made, so it will take some time for it to raise aremarkable demand.

Some of the products which can be considered for sale set.

Britannia nutri digestive (small pack)-focuses all health consciousand old age which are in good percentage. So it can beconsidered or scheme.

Mohan‘s corn flakes (liked by all class people and in budget).



70

SUGGESTIONS

MARKETING OBJECTIVE

Target is placement of all merchandising units across the

market in a months time

Create Identity in a Short Span

Offering a wide range

Reach every nook & corner

Distinct Approach ( Innovative & Differentiated products)

Constant connection through technology

High level of transparancy

Pricepressure from webshops

Changed orientation and purchase behaviour

Providing social tools and platforms around products andservices to create better informed and better organised buying

behaviour.Giving away designGiving away assortmentGive away marketing

Augmented Reality



71

ORGANIZED RETAILING

(i) promote quality employment;(ii) improve business process practices;(iii) spur investments in support

industries; and(iv) enable the modernization of the fragmented

traditional retail industry.

Modern retail business focuses on maximizing customer footfalls and capturing rising volume and share of the customer

wallet.While the competition strategy is largely price focused, themodel works by:

(i) improving sourcing efficiencies;(ii) expanding product assortment;(iii) differentiating service; and(iv) enhancing the store ambience. Thus, there are four

drivers of modern retail‘s ―one-stop shoppingmodel‖:price, product, service, and ambience

The main objective of these studies is to understand how thesefirms are:

(i) penetrating markets;(ii) introducing formats and product categories;(iii) operating the end-to-end value chain; (iv) pricing

different products; and

(v) capturing customer footfalls.

It helps to:

(i) attain critical mass;(ii) economies of scope in sourcing by accruing costs

across stores; and(iii) reach out to consumers in the local neighbourhood

locations



72

BENEFITS OF ORGANIZED RETAILING

PRODUCT MARGIN

Modern retail penetration and consumer adoption in the appareland clothing category is the highest.

An organized retailer gets an average of 30 per cent gross marginor above on MRP across women‘s wear, gents‘ wear, and kids‘wear on branded labels. In the case of private labels of storebrands, clothing margins are higher than 60 per cent typically.

In the food and grocery section across hypermarket, supermarket,and discount store formats, grocery covers around 45 per cent of store space in FMCG and staple food productsNevertheless, fruit and seasonal vegetables are higher profit-margin produce: fruit sell at 40 per cent margin on the cost price,and seasonal and exotic vegetables around 30 per cent above thecost price. Across the fruit and vegetable section, the net profitgain is between 8 per cent and 10 per cent on an average. As aresult, organized retail firms are strategizing convenience formatstores up to 2,000 sq. ft. area in order to penetrate the local

neighborhood markets.



74

EMPLOYMENT GENERATION:

Finally, but most importantly, the employment generated by

organized retail is building a quality labour class that is gaining

vocational training in skilled and unskilled jobs at the graduate and

tenth class level Foreseeing the demand for trained staff, leading

organized retailers are creating their captive human resources pool

through internal training and programmes and tie-ups with retail

management schools.

COMPETITORS STRATEGY:

Subhiksha Value

Low-price high-volume strategy: by keeping no fancy frills front-

end and by becoming an intermediary at the back end, Subhiksha

leverages on discounted prices on bulk purchases and cash

payments.



76

Dairy Value

Operates on a co-operative model with the objective of increasing

farmers‘ welfare. Has a strong presence in Delhi‘s NCR region.

Strategically located in residential areas and follows a low-price

strategy for fruit and vegetables.



77

8. CONCLUSION

If this project proves to be of any usefulness to the reader then I will be

very proud of it, that all the hard work done by my faculty and me has

been fruitfull.

Above all, I hope to have shown my reader that the answer of their

questions on the working of the company and its maketing

stategies which made it a retail giant and capture the big part of

the market. how ever it is difficult to know about a company but

training provided to me helped me a lot to know the retail store and

consumers behavior to a great extent. i came to know how a

consumer reacts to every action made by retail to pursue them

with their promotional and marketing strategies.

This project helped me to clear my else doubts and step over the

boundaries of confusion and querries with reference to retail store

and helped to be more focused and helped me a lot to understand

the concepts in my studies.



78

9. BIBLOGRAPHY

BOOKS:

KOTLER PHILLIP,KELLER KELVIN

Marketing Management, Pataparganj, Delhi, Dorling

Kindersley(India)Pvt.Ltd , 2007,

―74 to 80‖, ―164 to 170‖, 208‖,‖231 to 236‖, .

KUMAR ARUN AND MEENAKSHI N

Marketing Management, Naraina, New Delhi, Excel Books Pvt.

Ltd.,2008, ―11 to 14‖,‖29 to 31‖, ―70 to 75‖, 233‖.

INTERNET:

www.yorku.ca/rkenedy/critical_skills/student/nick_ashby_ppt_prest

ns/h

http://www.yorku.ca/rkenedy/critical_skills/student/nick_ashby_ppt_prestns/h





“a study of consumer buying behavior in retail sector like big bazaar”

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