adept foundation

Adept Foundation

ADEPT INSTITUTE OF MANAGEMENT STUDIES,

MBA DHARWAD.

(Approved by SMU UNIVERSITY MANIPAL)

STUDY ON

“A STUDY ON THE EFFECTIVE PROMOTIONAL STRATEGY

WHICH INFLUENCES CUSTOMER TO PURCHASE A PRODUCT

OF BIG BAZAAR”

A Report Submitted in Partial Fulfillment of

The Requirement for the Award of

MASTER’S DEGREE IN BUSINESS ADMINISTRATION2009-2010

Submitted by

Manjunath Reddy.

Exam No. 520864273

Institute Guide: Company Guide:

Mr. Nityanand. Mr. Arif.Faculty Asst Department Manager AIMS College, BIG BAZAAR,Dharwad. Hubli.

AIMS COLLEGE, Dharwad.1

Adept Foundation

Adept Institute of Management Studies, MBA Dharwad.

(Recognized by ISO, & Affiliated to SMU University, Manipal)

This is to certify that Mr. Manjunath Reddy.

student of Adept Institute of Management Studies, bearing

Registration No. 520864273 of MBA 3rd Semester has successfully

completed his summer in plant training 2009-2010.

Project Guide Dean

Date: ______________

INDEX


CERTIFICATECERTIFICATE

AIMS COLLEGE, Dharwad.

CHAPTER

NO.TOPIC

PAGE NO.

I Summary 5

II Acknowledgement 6

IIIDeclaration

7

IVIndustry Profile

8

V Competition In Retail 15

VI Board of Director

31

VIICompany Profile

32

VIII Store Study 37

IX Future Plans Of Big Bazaar 51

X Organizational Structure 53

XI Store Structure 54

XII Vision & Mission 55

XIII Supply Chain Management 59

XIV My Learning 60

XV Research Methodology 61

XVI Analysis & Interpretation 64

XVII Findings 74

XVIII Recommendations 76

XIX Conclusion 77

XX Limitations 78

XXI Annexure 79

XXII Bibliography 813

EXECUTIVE SUMMARY

Indian retail sector is witnessing one of the most hectic Marketing activities of all

times. The companies are fighting to win the hearts of customer who is God said by the

business tycoons. There is always a ‘first mover advantage’ in an upcoming sector. In

India, that advantage goes to “BIG BAZAAR”. It has brought about many changes in the

buying habits of people. It has created formats, which provide all items under one roof at

low rates, or so it claims. In this project, we will study its marketing strategies and

promotional activities.

The research titled ‘A Study on the effective promotional strategy which influences

customer to purchase a product of Big Bazaar’ helps us to understand the effect of

promotional strategy which is responsible for attracting customer towards big bazaar

This study helpful to top level management to improve the present promotional strategy

of BIG BAZAAR.

The report deals with the impact of promotional activity which attracting customer

towards big bazaar.

The research was carried out as per the steps of Marketing Research. The well supportive

objectives were set for the study. To meet the objectives primary research was

undertaken. The data collection approach adopted was experimental research & survey

research. The instrument used for the data collection was observation & questionnaire.

The target respondents were the visitors of BIG BAZAAR, with the sample size of 100

for the study of sales management of the company. Tables & charts were used to translate

responses into meaningful information to get the most out of the collected data. Based on

those the inferences have been drawn with peer supportive data.


ACKNOWLEDGEMENT

The report what I have presented is not the made outcome of my labor alone. There are

dozens of hands buttressed me all through the programme it doesn’t go without thanking

all of those who constantly keep me on the move.

I would like to give heartily thanks to Adept Institute of Management Studies Dharwad

who have given us an opportunity to learn something practical apart from books by

including the in-plant training in our MBA Programme.

I express my gratitude to our Dean Mr. Mahesh Masal who has supported me to complete

this project. My sincere thanks to Prof. Nityanand K, Internal Guide for guiding me to

work on this project.

I would like to express my most sincere thanks and gratitude to External guide Mr. Arif

ADM (Assistant Department manager) who have given a good support to grab the

external exposure and to complete a project in Big Bazaar.

I give my sincere token of thanks to all my faculties, relatives and friends who have

gathered me the wisdom of knowledge. This work is dedicated to my parents who have

supported me throughout my study.


DECLARATION

I the undersigned have completed the project entitled ‘A Study on the

effective promotional strategy which influences customer to purchase a product of

Big Bazaar Hubli’ submitted in partial fulfill of the requirement for the

award of the Degree in Master of Business Administration to the Sikkim

Manipal University, .

The project work is original & the conclusions drawn are based on the

data & information collected by me.

Place: Hubli

Date: Manjunath.Reddy.


INDUSTRY PROFILE

Introduction

Retail means selling goods and services in small quantities directly to customers.

Retailing consists of all activities involved in marketing of goods and services directly to

consumer for their personnel family and household use.

The Indian retailing industry is becoming intensely competitive, as more and more

payers are Vying for the same set of customers. The major retail players are Pantaloon

Retail, Shoppers Stop, Reliance, etc.,

Retailing is one of the biggest sectors and it is witnessing revolution in India. The new

entrant in retailing in India signifies the beginning of retail revolution. India's retail

market is expected to grow tremendously in next few years. According to AT Kearney,

The Windows of Opportunity shows that Retailing in India was at opening stage in 1995

and now it is in peaking stage in 2006. India's retail market is expected to grow

tremendously in next few years. India shows US$330 billion retail market that is

expected to grow 10% a year, with modern retailing just beginning. India ranks first in

2005. In fact, in 2005 and 2006, India is the most compelling opportunity for retailers,

because now India is in peaking stage.

Sector details1. Introduction to retail industries.

2. Retail word is derived French word retailer means to cut off a piece.

3. Retailing includes all the activities involved in selling goods or services to the

final customer for personnel or non-business use.

4. Supermarket is a retailing of a wide variety of consumer products under one roof,

ample stock, stock of several brands & extended business hours.


History of retailingRetail concept is old in India. World’s first departmental store started in Rome.

Today’s kirana stores are based on Manusmriti & Kautilya’s arthshastra.

Haats, Melas, Mandis & door to door salesmen are traditional Indian retail.

Vishal Mega Mart is a retail sector, which is providing good quality of products in very

reasonable price than its competitors. Retailing and wholeselling consist of many

organizations designed to bring goods and services from the point of production to the

point of use.

Retailing includes all the activities involved in selling goods or services directly to final

consumers for their personal, non-business use. Retailers can be classified in terms of

store retailers, non-store retailing, and retail organizations.

Store retailers include many types, such as specialty stores, department stores,

supermarkets, convenience stores, superstores, combination stores, hypermarkets,

discount stores, warehouse stores, and catalog showrooms. These store forms have had

different longevities and are at different stages of the retail life cycle. Depending on the

wheel-of-retailing, some will go out of existence because they cannot compete on a

quality, service, or price basis.

Non-store retailing is growing more rapidly than store retailing. It includes direct selling

(door-to-door, party selling), direct marketing, automatic vending, and buying services.

Much of retailing is in the hands of large retail organizations such as corporate chains,

voluntary chain and retailer cooperatives, consumer cooperatives, franchise

organizations, and merchandising conglomerates. More retail chains are now sponsoring

diversified retailing lines and forms instead of sticking to one form such as the

department store.

Retailers, like manufacturers, must prepare marketing plans that include decisions on

target markets, product assortment and services, store atmosphere, pricing, promotion,

And place. Retailers are showing strong signs of improving their professional

management and their productivity, in the face of such trends as shortening retail life

cycles, new retail forms, increasing intertype competition, and polarity of retailing, new

retail technologies, and many others.


Wholesaling includes all the activities involved in selling goods or services to those who

are buying for the purpose of resale or for business use. Wholesalers help manufacturers

deliver their products efficiently to the many retailers and industrial users across the

nation. Wholesalers perform many functions, including selling and promoting, buying

and assortment-building, bulk-breaking, warehousing, transporting, financing, risk

bearing, supplying market information, and providing management services and

counseling. Wholesalers fall into four groups. Merchant wholesalers take possession of

the goods and include full-service wholesalers (wholesale merchants, industrial

distributors) and limited-service wholesalers (cash-and- carry wholesalers, truck

wholesalers, drop shippers, rack jobbers, producers' cooperatives, and mail-order

wholesalers). Agents and brokers do not take possession of the goods but are paid a

commission for facilitating buying and selling. Manufacturers' and retailers' branches and

offices are wholesaling operations conducted by non-wholesalers to bypass the

wholesalers. Miscellaneous wholesalers include agricultural assemblers, petroleum bulk

plants and terminals, and auction companies.

Wholesalers, too, must make decisions on their target market, product assortment and

services, pricing, promotion, and place. Wholesalers who fail to carry adequate

assortments and inventory and provide satisfactory service are likely to be bypassed by

manufacturers. Progressive wholesalers, on the other hand, are adapting marketing

concepts and streamlining their costs of doing business.

CURRENT SCENARIO

India rank first in terms of emerging market potential in retail sector. Current retail

market is US $ 215 billion. Growth rate of retail sector in India is 8-10% per annum.

Near about 12 million retail outlets are spread across India.

FDI in retail sector increases from US $ 3.1 billion in 2003 to over US $7.6 billion in

2009.


TYPES OF RETAILERS Retailers are broadly classified into 3 categories

Food Retailers.

General Merchandise Retailers.

Service Retailers.

OTHER SERVICES PROVIDED BY RETAILERS

Retail not only provides products to the customer but also gives different types of

services like:

Airlines & travel agents

Banks

Health clubs

Hotel & Restaurants

Movie theatres

TECHNOLOGIES USED IN RETAILING SECTOR

In-store technologies-

Interactive kiosks

Virtual display case

Radio Frequency identification tags

Self-scanning & self-checkout system

Body scanning

Online technology-


Online display of products

Online shopping

CHALLENGES

Largely urban phenomenon, pace of growth is still slow.

Not being recognized as an industry in India so availability of finance is low to

new market players.

High cost of real estate.

High stamp duties.

Lack of infrastructure.

Multiple & complex taxation system.

Protest against retail sector.

FUTURE STRATEGY

It is projected that up to 2010 retail sector will be worth around US $ 300 billion.

FDI is going to increase rapidly, up to 2010 retail sector will become biggest

industry in India.

Retail sector is expected to create 2 million jobs up to 2010.

According to Indian Retail Report top 10 players in modern retail trade are going

to invest US $ 18-20 billion in next five years.

Sector Details

In India, the most of the retail sector is unorganized. In India, the retail business

contributes around 10 percent of GDP. Of this, the organized retail sector accounts only


for about 5 percent share, and the expected annual growth rate is 5% per annum and

remaining share is contributed by the unorganized sector. The main challenge facing the

organized sector is the competition from unorganized sector. Unorganized retailing has

been there in India for centuries, theses are named as mom-pop stores. The main

advantage in unorganized retailing is consumer familiarity that runs from generation to

generation. It is a low cost structure, they are mostly operated by owners, has very low

real estate and labor costs and has low taxes to pay. And it also gives 8% Employment

to the country annually.

In late 1990's the retail sector has witnessed a level of transformation. Retailing is being

perceived as a beginner and as an attractive commercial business for organized business

i.e. the pure retailer is starting to emerge now. Organized retail business in India is very

small but has tremendous scope. The total in 2005 stood at $225 billion, accounting for

about 10% of GDP. In this total market, the organized retail accounts for only $8 billion

of total revenue. According to A T Kearney, the organized retailing is expected to be

more than $23 billion revenue by 2010.

In organized retailing will grow faster than unorganized sector and the growth speed will

be responsible for its high market share, which is expected to be $ 17 billion by 2010-11.

The organized sector is expected to grow faster than GDP growth in next few years

driven by favorable demographic patterns, changing lifestyles, and strong income growth.

This organized retail sector mix includes supermarkets, hypermarkets discounted stores

and specialty stores, departmental stores. For example, Spencer network has 69 stores,

which includes seven Spencer hypermarkets, three Spencer super markets and 49 Spencer

Daily’s. Now the company is planning to open 20 stores in 10 cities in six months. The

top 10 retailers account only for 2% of total market, today modern retailing is expected to

enter a boom phase, which has major players and these players might capture 10% of

total market, within next five years. The retail sales in India for future are shown below

(data from 2005-2008 is based on estimates)

The trend in the Industry


1. Low share of organized retailing 2. Falling real estate prices 3. Increase in disposable income and customer aspiration

Increase in expenditure for luxury items (CHART)

Another credible factor in the prospects of the retail sector in India is the increase in the

young working population. In India, hefty pay packets, nuclear families in urban areas,

along with increasing working-women population and emerging opportunities in the

services sector. These key factors have been the growth drivers of the organized retail

sector in India which now boast of retailing almost all the preferences of life - Apparel &

Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products,

Travel and Leisure and many more. With this the retail sector in India is witnessing

rejuvenation as traditional markets make way for new formats such as departmental

stores, hypermarkets, supermarkets and specialty stores.

Existing competition

Reliance fresh.

Aditya Birla group.


Shopper’s Shoppe.

Subhiksha.

Big bazaar.

Mark and Spencer’s.

The untapped scope of retailing has attracted superstores like Wal-Mart into India,

leaving behind the kiranas that served us for years. Such companies are basically IT

based. The other important participants in the Indian Retail sector are Bata, Big Bazaar,

Pantaloons, Archies, Cafe Coffee Day, landmark, Khadims, Crossword, to name a few.

Evolution of Indian Retail Industry

Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take

place. The inception of the retail industry dates back to times where retail stores were

found in the village fairs, Mela’s or in the weekly markets. These stores were highly

unorganized. The maturity of the retail sector took place with the establishment of retail

stores in the locality for convenience. With the government intervention the retail

industry in India took a new shape. Outlets for Public Distribution System, Cooperative

stores and Khadi stores were set up. These retail Stores demanded low investments for its

establishment. International Brand Outlets, Hyper or Super markets, shopping malls and

departmental stores

Retailing in India: a forecast

Future of organized retail in India looks bright. According to recent researches it is

projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will

capture a share of 10% of the total retailing by the end of 2010.

INDIA: A Hot Spot


India retail industry is the largest industry in India, with an employment of around 8%

and contributing to over 10% of the country's GDP. Retail industry in India is expected to

rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable

demographic patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200

billion. India retail industry is one of the fastest growing industries with revenue expected

in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further

increase of 7-8% is expected in the industry of retail in India by growth in consumerism

in urban areas, rising incomes, and a steep rise in rural consumption. It has further been

predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010

from the current size of US$ 7.5 billion.

Shopping in India has witnessed a revolution with the change in the consumer buying

behavior and the whole format of shopping also altering. Industry of retail in India which

have become modern can be seen from the fact that there are multi- stored malls, huge

shopping centers, and sprawling complexes which offer food, shopping, and

entertainment all under the same roof.

India retail industry is expanding itself most aggressively; as a result a great demand for

real estate is being created. Indian retailers preferred means of expansion is to expand to

other regions and to increase the number of their outlets in a city. It is expected that by

2010, India may have 600 new shopping centers.

In the Indian retailing industry, food is the most dominating sector and is growing at a

rate of 9% annually. The branded food industry is trying to enter the India retail industry

and convert Indian consumers to branded food. Since at present 60% of the Indian

grocery basket consists of non- branded items.

As the contemporary retail sector in India is reflected in sprawling shopping centers,

multiplex- malls and huge complexes offer shopping, entertainment and food all under


one roof, the concept of shopping has altered in terms of format and consumer buying

behavior, ushering in a revolution in shopping in India. This has also contributed to large-

scale investments in the real estate sector with major national and global players

investing in developing the infrastructure and construction of the retailing business.

Growth Drivers

Growth drivers in India for retail sector

Rising incomes and improvements in infrastructure are enlarging consumer markets

and accelerating the convergence of consumer tastes.

Liberalization of the Indian economy

Increase in spending Per capital Income.

Advent of dual income families also helps in the growth of retail sector.

Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.

Consumer preference for shopping in new environs

The Internet revolution is making the Indian consumer more accessible to the growing

influences of domestic and foreign retail chains. Reach of satellite T.V.

Channels are helping in creating awareness about global products for local markets.

About 47% of India's population is under the age of 20; and this will increase to

55% by 2015. This young population, which is technology-savvy, watch more than

50 TV satellite channels, and display the highest propensity to spend, will

immensely contribute to the growth of the retail sector in the country.

Availability of quality real estate and mall management practices

Foreign companies' attraction to India is the billion-plus population.

Employment opportunities in retail sector in India


India's retail industry is the second largest sector, after agriculture, which provides

employment. According to Associated Chambers of Commerce and Industry of India

(ASSOCHAM), the retail sector will create 50,000 jobs in next few years.

Retail companies are starting retail management courses in partnership with management

institutes, roping in talent from other sectors and developing comprehensive career

growth and loyalty plans for existing employees.

Top players like Pantaloon Retail India Limited, Trent, Shopper's Stop, RPG Group and

ebony are virtually on their toes.

Consider the plans of largest player, The Pantaloon Retail India Ltd, the company has

developed a comprehensive strategy, where in it expects that in 2years, it will not recruit

any new managers from outside.

"The estimated need is 1 lakh of employees till 2011", said Mr. Sanjoy Jog, HR Head at

Pantaloon Retail India Ltd. Pantaloon has the concept of partnership with educational

Institute to run retail courses across the entire chain. Trent has also started in-house

learning programmers and now goes to under graduate colleges to recruit students.

Since, the job market is hugely receptive to this with more and more business schools

focusing on the sector and large retailers setting up retail academics.

Challenges of Retailing in India

In India the Retailing industry has a long way to go, and to become a truly flourishing

industry, retailing needs to cross the following hurdles:

* The first challenge facing the organized retail sector is the competition from

unorganized sector.

* In retail sector, Automatic approval is not allowed for foreign investment.

* Taxation, which favors small retail businesses.

* Developed supply chain and integrated IT management is absent in retail sector.

* Lack of trained work force.


Low skill level for retailing management.

Intrinsic complexity of retailing- rapid price changes, threat of product

obsolescence and low margins.

* Organized retail sector has to pay huge taxes, which is negligible for small retail

business.

Many agencies have estimated differently about the size of organized retail market in

2010. The one thing that is common amongst these estimates is that Indian organized

retail market will be very big in 2010. The status of the retail industry will depend

mostly on external factors like Government regulations and policies and real estate

prices, besides the activities of retailers and demands of the customers also show

impact on retail industry.

Competition in retail

India RetailBiz attempts to capture excitement of Retail Business in India by aggregating

the best in news, views, research, analysis, trends, technology, and competition dents

retail sector growth.

The performance of the retail sector in the last quarter of financial year 2008-09 has been

a gloomy one. Not only has the quarter-on-quarter growth declined by 700 basis point, on

year-on-year (YoY) basis, sales growth fell drastically from 67.8% to 49.1%. Including

the recently listed Koutons and Vishal Retail, all big retailers continue to be on an

aggressive expansion mode. This kind of competition is having a negative impact on

margins of retailers, as the target audience for all of them, more or less, remains the same.

The slowdown has triggered a volume game in the industry. Strategies like promotional

campaigns, freebies, promoting private labels and online discounts are just some of the

avenues that retailers are looking at to lure customers. According to analysts, this is a

knee-jerk reaction by the industry to fight the inflation-induced dent in the purchasing

power of customers. As they say, retail is a number game, so, big retailers are trying to

push volumes. For some, it comes at the cost of profit. Meanwhile, in contrast to YoY

sales growth of 49% for the sector, the interest cost has registered a whopping 96%


growth. Though growing at a lesser 39%, depreciation cost has also been impacting

margins.

The cost factor too is adding to the woes. For instance, during the quarter, Shoppers Stop

opened its new stores in various formats. Provogue and Pantaloon followed soon. The

companies are increasing their geographical presence in the wake of increasing

competition. Launch of new formats continues to catch the attention of these retailers. In

fact, a couple of these new formats are already generating profit at the operating level,

thus showing a positive sign towards growth.

Like for Shoppers Stop, the average transaction size increased by about 7% for the

current quarter over the same quarter in the previous year. Players like Provogue and

Pantaloons too have witnessed a similar upward movement. Also, though growth in total

expenses as a whole has almost been equivalent to the growth in sales at about 47%,

some individual cost items like staff costs, selling and administration costs are under

control. On a YoY basis, staff cost has grown at 26% against 44% in the corresponding

quarter of the previous year.

Nonetheless, raw material cost continues to remain high - it grew by 66% in the last

quarter and now is equivalent to 74% of the industry's aggregate net sales. This is the

reason why operating margins have reduced to 4.8% of the revenue sale compared with

5.7% during the corresponding quarter of the previous year.

Among individual retailers, Pantaloon Retail continues to outgrow the industry - it

recorded 57% a YoY growth in net sales during March 2008 quarter. Although it is lower

compared with the 63% growth recorded during the December quarter, momentum

continues to favour the company. New stores drove the growth in value-for-money

format - strategies such as KB's Fair Price and online shopping are picking up. Their

home store division has also been doing well. Next on growth charts is Provogue, which

grew 40% in the last quarter, similar to the previous quarter.

In short, setting up of new stores has resulted in higher working capital funding, which

has raised the industry's interest outgo. For Pantaloon, interest cost has almost doubled


during the current quarter - as a proportion of sales, it has increased from 2.7% to 3.2%

on a YoY basis. Provogue seems to be an exception in this as it recorded the highest

increase of 100 basis points in interest cost for March 2008. Overall, the profitability

margin has seen a sharp decline.

Only Shoppers Stop has registered some profit compared with its performance in the

corresponding quarter of the previous year. The company's net profit margin now stands

at 0.7% of net sales as compared to -1% in March 2007 quarter. It can be concluded that

margins of retail companies seem to have been hit by costs related to their ambitious

expansion programmer. Expansion plans for some of them are running behind schedule.

It has led to higher interest cost, yet retail companies are trying hard to cut costs by

keeping inventory and carrying costs under control.

July 8, 2008

Source: Economic Times

Big retailers at loggerheads with MNCs over brands

A serious conflict is brewing between Indian retailers and multinationals over imports of

global brands. To stay afloat in the dog-eat-dog world of retail, local retailers have

reached arrangements with overseas players to bring in some international brands, rattling

many MNCs who manufacture or market these products locally. In some cases, these

brands have not yet been introduced in India.

Several major MNCs with a long presence in India are invoking the Intellectual Property

Rights (imported goods) Enforcement Rules 2007 to stop retailers from importing foreign

brands. Hindustan Unilever, L’Oreal, Lancome Perfumes, Oakley Inc, Nivea and Mico

have already registered several brands with the Customs department. Sources said other

MNCs are expected to follow suit.

Market circles perceive this as a move to prevent Indian retailers from getting first access

to these brands. Some of the retailers are debating plans to legally contest the move, since

they possess a free sale certificate from the source of import. Retailers like Big Bazaar &


Food Bazaar, Reliance Retail, Spencer’s and Sankalp Retail (MyDollarStore), among

others, have begun importing sizeable consignments of leading consumer brands and

their variants for better fill rates, product variety and higher margins.

However, the multinationals are not amused, and claim that it leads to loss of business

opportunity, unfair competition and product cannibalization. The fundamental issue here,

according to analysts, is that the Indian arms of the leading FMCG companies would like

to control the way their brands are marketed and sold. They would also like to determine

when new products and variants of existing products should be introduced in India.

A key reason for retailers to step up imports is bottom lines. Profit margins on imported

products are around 20% more than local brands, where producers and retailers are at

loggerheads over sharing margins.

“We are concerned over issues like protecting the properties of our brands, including

quality and consumer perception. Such unplanned imports create brand confusion in the

minds of consumers, since the properties of an imported brand are completely different

from the domestic ones, which are localized to suit the specific region’s requirements. An

unpleasant experience may work against our brand,” said a high-ranking official in a

leading multinational, which makes personal care products.

Retailers claim they are creating ‘demand in advance’ for the multinationals, which

would otherwise have to invest heavily in marketing and ad spends to promote the

brands. Analysts say the developments are the natural effects of a globalised market that

India is moving towards, which upsets the conventional distribution and trade practices.

July 7, 2008

Source: Economic Times

Big players - plans and investments


State of Competition in the Wholesale and Retail Sector

The study assesses the state of competition in the Philippine wholesale and retail sector,

focusing on the distribution of specialized goods and pharmaceutical products. It uses the

traditional tools of analysis like concentration ratios and price-cost margins in

determining the competitive state of the sector. The study also analyzes the other

dimensions in retail competition like price, geographical location, and retail product and

retail service. Industry data from the National Statistics Office were used in the analysis,

aided by a small-scale survey conducted in the Metro Manila area.

The department store and grocery sub sector appears to operate in a competitive

environment despite the presence of two big dominating firms in the market. No price or

quantity leader-follower behavior was observed, as validated by the tools used in the

analysis. On the other hand, one firm, whose strategic advantages include economies of

scope and space, retail image and consumer loyalty, dominates the distribution of

pharmaceutical products. Potential market entrants face these forms of challenges--

factors that are not regarded as anti-competitive and are welfare enhancing to the general

public.

The need for competition policy is recommended to guard against possible merger of the

giant firms in the department store and grocery sub sector. Any possible collusion

between the big firms could result to a monopolistic outcome.

The study observes that the apparent high price of pharmaceutical products is mainly

attributed to the manufacturing process, and not at the distribution of these goods. Hence,

it is recommended that a study analyzing the state of competitiveness of manufacturing

pharmaceutical products be conducted. Thing else that is timely, authentic Electronics

retail sector could get new competition


Types of Retailing

There are several types we can see in Retailing. They are like:

Specialty Store:

Narrow product line with deep assortment, viz apparel stores, book stores etc. A clothing store would be a single line store, men's clothing store would be limited line store &men's custom-shirt store would be a super specialty store. Example: The limited, The Body Shop.

Departmental Store:

Several products lines-typically clothing, household goods, home furnishings- with each

line operated as a separate department managed by specialist buyers or merchandisers.

Example: Sears, Bloomingdale's.

Supermarkets:

Relatively large, low-cost, low-margin, high volume, self-service operation designed to

serve total needs for food, laundry & household maintenance products.

Example: Kroger, Safeway.

Convenience Stores:

Relatively small store located near residential area, open long hours, seven days a week

and carrying a limited line of high-turnover convenience products at slightly higher

prices.

Example: 7-Eleven, Circle K.

Discount Store:

Standard merchandise sold at lower prices with lower margins and higher volumes. True

discount stores regularly sell merchandise at lower prices and offer mostly national

brands.

Example: Wal-Mart, Kmart.


Off-price retailer:

Merchandise bought at less than regular wholesale prices & sold at less than retail; often-

leftover goods, overruns and irregulars obtained at reduced prices from manufacturers or

other retailers.

Factory outlets are owned and operated by manufacturers and normally carry the

manufacturer's surplus, discontinued or irregular goods.

Example: Mikasa (dinnerware), Dexter (shoes)

Independent off-price retailers are owned & run by entrepreneurs or by divisions of larger

retail corporations.

Example: T.J.Maxx, Filene's Basement.

Superstore:

Averages 35,000 square feet of selling space traditionally aimed at meeting consumers'

total needs for routinely purchased food and non-food items. Usually offer services such

as laundry, dry cleaning, shoe repair, check cashing & bill paying.

A new group called "category killers" carries a deep assortment in a particular category &

a knowledgeable staff.

Example: Borders books & Music, IKEA.

Combination stores are a diversification of the supermarket store into the growing drug-

and-prescription field. Combination food & drug stores average 55,000 square feet of

selling space.

Example: Jewel & Osco stores.

Hypermarkets range between 80,000 and 220,000 square feet and combine supermarket,

discount & warehouse retailing principles. Product assortment goes beyond routinely

purchased goods & includes furniture, large & small appliances, clothing items and many

other items. Bulk display & minimum handling by store personnel with discounts offered

to customers who are willing to carry heavy appliances and furniture out of the store.


Hypermarkets originated in France.

Example: Carrefour and Casino (France), Pyrca, Continente and Alcampo (Spain).

Emerging trends in Indian organized retail sector

BPO industry in India

BPO (Business Process outsourcing) is one of the fastest growing segments of the

Information Technology Enabled Services (ITES) industry in India. Business Process

Outsourcing refers to the delegation of one or more IT-intensive business process to an

external provider that in turn owns administers and manages the selected process based

on defined and measurable performance criteria. The Indian BPO industry is constantly

growing and a lot of fortune 500 companies are outsourcing services to India. There are

several reasons for India’s emergence as one of leading outsourcing destinations. India is

very rich in educated and talented human resource. India is one of the pioneers in

software development. India has an excellent technical facilities and infrastructure for

setting up call centers. Time zone difference between India and America has also worked

to the advantage of Indian BPO industry. India has an 8-12 hour time zone difference

with respect to the US and other developed markets. Most of the Indian cell centers

servicing American customers have timings between 5:30 pm to 9:30 am this time zone

difference allows Indian companies BPO’s to service American clients by working in the

nights. last but not the least India has huge pool of English speaking workforce that

provides excellent voice based services at extremely competitive costs resulting in huge

savings for companies. Some of the leading BPO companies in India are

GE capital.

Converges

Wipro Spectra mind.

Dell

ICICI One Source

MphasiS.


Inflation in India

Inflation in India is at an acceptable level and remains much lower than in many other

developing countries. But off late prices of essential commodities such as food grain,

edible oil, vegetables etc have risen sharply and in the process driving up the inflation

rate.

Inflation is defined as a sustained increase in the general level of prices for goods and

services. It is measured as an annual percentage increase. As inflation rises the value of

currency goes down. The current rise in inflation has its roots in supply-side factors.

There was shortfall in domestic production vis-à-vis domestic demand and hardening of

international pieces, prices of primary commodities, mainly food items. Wheat, pulses,

edible oils, fruits and vegetables, and condiments and spices have been the major

contributors to the higher inflation rate of primary articles. The inflation was also

accompanied by buoyant growth of money and credit. While GDP growth zoomed to 9.0

per cent per annum, the board money (M3) grew by more than 20 per cent.

Inflation is calculated on the bases of Wholesale Price Index (WPI) while in other

countries it is calculated on Consumer Price Index (CPI).

The emerging trends in the Indian organized retail sector would help the economic

growth in India.

There is a fantastic rise in the Indian organized retail sector in a very short period of time

between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector,

India has a chance of tremendous economic growth, both in India and abroad.

The emerging trends in the Indian organized retail sector are also adding up to the

development of the Indian organized retail sector. The relaxation by the government on

regulatory controls on foreign direct investments has added to the process of the growth

of the Indian organized retail sector.


The infrastructure of the retail sector will evolve radically in the recent future. The

emergences of shopping malls are increasing at a steady pace in the metros and there are

further plans of expansion which would lead to 150 new ones coming up in India by

2008. As the count of super markets is going up much faster than rate of growth in retail

sector, it is taking the lion’s share in food trade.

The growth of the Indian organized retail sector is anticipated to be heavier than the

growth of the gross domestic product. Alterations in people's lifestyle, growth in income

levels, and encouraging conventions of demography are proving favorable for the new

emerging trends in the Indian organized retail sector.

The success of this retail sector would also lie in the degree of penetration into the lower

income strata to tap the possible customers in the lowest levels of society. The demands

of the buyers would also be enhanced by more access to credit facilities.

With the arrival of the Transnational Companies (TNC), the Indian retail sector will

undergo a transformation. At present the Foreign Direct Investments (FDI) is not

encouraged in the Indian organized retail sector but once the TNC'S get in they inevitably

try to oust their Indian counterparts. This would be challenging to the retail sector in

India.

The trends to follow in the future:

The Indian Organized retail sector will grow up to 10% of total retailing by 2010.

No one single format can be assumed, as there is a huge difference in cultures regionally.

The most encouraging format now would be the hyper marts.

The hyper mart format would be further encouraged with the entry of the TNCs


Current Scenario

A glimpse of the International Retail

One of the world's largest industries exceeding US$ 9 trillion

47 global fortune companies & 25 of Asia's top 200 companies are retailers

Dominated by developed countries

US, EU & Japan constitute 80% of world retail sales.

Biggest player in India is Pantaloon Retail India Limited.

Percentage of Organized Retail

USA - 85%

Taiwan - 81%

Malaysia - 55%

Thailand - 40%

Brazil - 36%

Indonesia - 30%

Poland - 20%

China - 20%

India - 3%

Key players

The existing players like Big Bazaar, More Retail outlay, Vishal Mega Mart,

Shoppers' Stop, Piramyd are expanding to smaller towns and cities. Many other

business houses are planning to enter the retail sector either on their own or through

partnerships. New entrants like Reliance Retail Ltd and Wal-Mart are going to enter

the market soon. Even rural areas will provide a huge opportunity to be explored.


BOARD OF DIRECTOR

Mr. Kishore Biyani, Managing Director

Mr. Gopikishan Biyani, Whole time Director

Mr. Rakesh Biyani, Whole time Director

Mrs. Veda Prakash Arya, Director

Mr. Shailesh Haribhakti, Independent Director

Mr. S Doreswamy, Independent Director

Dr. D O Koshy, Independent Director

Mrs. Anju Poddar, Independent Director

Mrs. Bala Deshpande, Independent Director

Mr. Anil Harish, Independent Director


Company Profile

Pantaloon Retail (India) Limited, is India's leading retail company with presence across

multiple lines of businesses. The company owns and manages multiple retail formats that

cater to a wide cross-section of the Indian society and is able to capture almost the entire

consumption basket of the Indian consumer. Headquartered in Mumbai (Bombay), the

company operates through 5 million square feet of retail space, has over 331 stores across

40 cities in India and employs over 17,000 people. The company registered a turnover of

Rest 2,019 crore for FY 2007-08

It owns and operates multiple retail formats including Pantaloons, Big Bazaar, Food

Bazaar, Central, E-Zone, Fashion Station, Depot and many others.

Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail

chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain that

combines the look and feel of Indian bazaars, with aspects of modern retail, like choice,

convenience and hygiene. Food Bazaar, food and grocery chain and launch Central, a

first of its kind seamless mall located in the heart of major Indian cities, followed this.

Some of its other formats include, Collection i (home improvement products), E-Zone

(consumer electronics), Depot (books, music, gifts and stationary), All (fashion apparel

for plus-size individuals), Shoe Factory (footwear) and Blue Sky (fashion accessories). It

has recently launched its retailing venture, futurebazaar.com.

The group's subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon

Industries Ltd, Galaxy Entertainment and Indus League Clothing. The group also has

joint venture companies with a number of partners including French retailer Etam group,

Lee Cooper, Manipal Healthcare, Jaywalker’s, Gini & Jony and Liberty Shoes. Planet

Retail, a group company owns the franchisee of international brands like Marks &

Spencer, Debenhams, Next and Guess in India.

Pantaloon Retail is listed on BSE and NSE with a turnover of Rs 2,018 crores for

financial year ended 2007-08. Pantaloon Retail was selected as the Best of Best Retailers

in Asia by Retail Asia-Pacific Top 500 magazine in 2006.


http://futurebazaar.com/

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).

Future Capital Holdings, the group's financial arm, focuses on asset management and

consumer finance. It manages two real estate investment funds (Horizon and Kshitij) and

consumer-related private equity fund, Indecision. It also plans to get into insurance,

consumer credit and other consumer-related financial products and services in the near

future.

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

Consumer in the most profitable manner." One of the core values at Future Group is,

'Indian’s' and its corporate credo is - Rewrite rules, Retain values.

Future Group Manifesto

“Future” – the word which signifies optimism, growth, achievement, strength, beauty,

rewards and perfection. Future encourages us to explore areas yet unexplored, write rules

yet unwritten; create new opportunities and new successes. To strive for a glorious future

brings to us our strength, our ability to learn, unlearn and re-learn, our ability to evolve.

We, in Future Group, will not wait for the Future to unfold itself but create future

scenarios in the consumer space and facilitate consumption because consumption is

development. Thereby, we will effect socio-economic development for our customers,

employees, shareholders, associates and partners.

Our customers will not just get what they need, but also get them where, how and when

they need.


We will not just post satisfactory results, we will write success stories.

We will not just operate efficiently in the Indian economy, we will evolve it.

We will not just spot trends; we will set trends by marrying our understanding of the

Indian consumer to their needs of tomorrow.

It is this understanding that has helped us succeed. And it is this that will help us succeed

in the Future. We shall keep relearning. And in this process, do just one thing.

Big Bazaar is a chain of shopping malls in India currently with 29 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.

Big Bazaar stores in Metros have a gaming area and kids play area for entertainment.

Cities where stores are located are,

Agra, Ahmadabad, Allahabad, Ambala, Asansol, Bangalore, Bhubaneswar, Chennai,

Coimbatore,Palakkad, Kolkata, Delhi, Durgapur, Ghaziabad, Gurgaon,Hyderabad,

Indore, Lucknow,Kanpur, Mangalore, Mumbai, Nagpur, Nasik, Panipat, Pune, Rajkot,

Surat, Thane, Thiruvananthapuram, Vishakhapatnam.

Big Bazaar is not just another hypermarket. It caters to every need of customer’s family.

Where Big Bazaar scores over other stores is its value for money proposition for the

Indian customers.

At Big Bazaar, customer will definitely get the best products at the best prices -- that’s

what Big Bazaar 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

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

customers shopping experience.


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

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

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

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

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

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

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

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

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

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

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

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

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

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

http://en.wikipedia.org/wiki/Hyderabad_(India)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

http://en.wikipedia.org/w/index.php?title=Kishore_Biyani&action=edit

http://en.wikipedia.org/wiki/Wal-Mart

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

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

Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by the

Pantaloon Group. It works on it 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.

Big Bazaar stores in Metros have a gaming area and kids play area for entertainment.

Cities where stores are located

Agra

Ahmedabad

Allahabad

Ambala

Asansol

Bangalore

Bhubaneswar

Chennai

Coimbatore

Palakkad

Kolkata

Delhi

Durgapur

Ghaziabad

Gurgaon

Hyderabad

Indore


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

http://en.wikipedia.org/wiki/Hyderabad_(India)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

http://en.wikipedia.org/w/index.php?title=Kishore_Biyani&action=edit

http://en.wikipedia.org/wiki/Wal-Mart

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

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

Lucknow

Kanpur

Mangalore

Mumbai

Nagpur

Nasik

Panipat

Pune

Rajkot

Surat

Thane

Thiruvananthapuram

Vishakhapatnam

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

need of customer’s family. Where Big Bazaar scores over

other stores is its value for money proposition for the Indian

customers.

At Big Bazaar, customer will definitely get the best products

at the best prices -- that’s what Big Bazaar 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 customer.


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

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

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

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

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

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

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

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

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

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

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

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

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

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

more to complete customers shopping experience.

Store study

Big Bazaar

Akshay centre, Akshay Park

GOKUL ROAD, HUBLI-580030

Phone No: 0836-4266555

This store is of 2 flour and divided into 2 levels based on the

nature of products. There are 21 departments in this store and

120 Human Resource employed.

As this store is big enough with 2 levels and 21 departments

has long product range and product depth. Ones a customer

get inside the store he will find all kinds of products available

that may be Food item, Cosmetic, Electronic, Garments,

Furniture etc.

Because of these features it has a very good reputation in that

area and customers who are residing far away and in other

areas they also visit the store.


Level 1

Departments with their Products

1) Depot :

General books

Office stationary

Children stationary

Film VCD’s & DVD

Major Brands in this department

For VCD’s & DVD’s:

Moser bear

T-Series

Yesh Raj Films

Anand Audio

Jhankar

Sarvotham

For Office stationary

Stick

Apsara

Kores

Fiber Castle


Depo exposes

Park

Cello

3 M

Kangaroo

Built

Matrix

For Books

Penguin

Roopa

Bentam

Classic

2) NBD (New Business Development)

This is the department, which is introduced because the space

is available in the store after making arrangement for other

department and this department consists of the products,

which are not introduced and are not regular goods.

Wrist Watches

Fashion Jewelry

Sunglasses

Auto accessories


For Wrist Watches

Escort

Lumax

3) Gold Bazaar

Navaras Gold Jewelry


This is the separate unit not related to Big Bazaar they share

profits on percentage basis

4) Mobile Bazaar

All kinds of Handsets ranging from Rs 1000 to 25000 of

different companies

Mobile accessories

Coddles phones & land line phones


Nokia

Sony Ericson

Motorola

Samsung

Beetal

Pacetel

5) Star Sitara

Cosmetics

Fragrances

Herbals

Pharmaceuticals



For Fragrances

MKD distributors

G R fragrances

BCPL

Nabed

Intercraft

Indo French

For Herbals

Lotus

VLCC

Shehnaaz Hussain

Biotech

For Cosmetics

Color Bar

Lakme

May Billine

Revlon

Streets wear

Vega and roof

6) Shringar

Bangles

Jewelry sets

Bracelets

Hair Accessories

Bindies

Chains

7) Ladies Department

Sarees

Dress materials

Under garments

Nightwears

Western wears

Major brands in this

department

Shila

Shristhi

Kalakruthi


MSIL

Jeans

Bretni

DJ & C

Ruff & Tuff

Gelluse

Accessories

Johnson and Johnson

Paris beauty

VIP

8) Men’s Department

Formals (Shirts & Pants)

Casuals (Shirts & pants)

Party wears

Jeans T-Shirts

Others Accessories (Lungi Dhoti etc)

Fabrics (Cut pieces)

Suits & Blazers

Levi’s Signature garments

Major brands in this department

DJ & C

Ruff & Tuff

Levis

Night hood

Peter England

Raymond’s

9) Furniture Department

Dining Table


Bedroom Accessories

Hall accessories (Sofa sets, Chairs, Computer table etc)

Mattresses

10) Footwear Bazaar

Sports Shoes

Formal Shoes

Casual Shoes

Men’s Sandals

Ladies Sandals

Ladies Casuals

Ladies Chapple

Ladies fancy Sleepers

Ladies Sports shoes


Reebok

Nike

Puma

Loto

Van hussain

Hallen solly

New balance

11) Home Décor

Flower vase

Artificial Flowers

Religious gifts

Candle stand

Umbrellas

Photo Frames

Assorted color Stones

Frame Paintings


Water falls (artificial) Birthday items

12) Home line

bed sheets, Pillows , bed spreads

Towels, Yellow dust

Razai , Carpets, Cushion covers

Chair bags


Riviera

Oriental

Orchid

Home collection

Home expression

Sameera

Home style

Sweet dreams

Modern

13) Toys Dept

Soft toys

Educational toys

Board games, Action figures

Dolls



Fun school

Venus

Mitashi

Creatives

United

Shadilal & Sons

Flamingo

14) Kids department

Boy’s section

T-Shirts, Trousers, jeans

Cotton shirts, Cargo, Cod raw

Ethic wears

Co ordinates

Rain cotes

Girls Section

Ethic wears

Co- ordinates

Cotton frocks

Western wears


Tara Rum Pum collection


Disney

Pink And Blue

Power ranges

Promo

Infants

Jhablas

Vests

Bibs feedings

Bed items

Baba suits

Frocks

15) Electronic Bazaar

Televisions

Sound System

Refrigerators

Washing machines

Microwave

Rice cookers

Juicers

Irons, Mixers & Grinders


Sony

Vidiocon

LG

HCL

IBM

Creative


Philips

Samsung

Onida

Whirlpool

16) Luggage

Travel bags

Trolleys

Bags: Schools, Collage

Ladies purse

Suitcase

VIP

American Tourist

Aristocrat

Safari

Milestone

Level 2

Food Bazaar

1) Beverages

Soft drinks

Mineral water

Juices

Health drinks

2) Confectionaries

All kinds of Chocolates & Confectionaries

3) Fruits & Vegetables

4) Staples

Dal, Rice, Atta, Rava items

Oil’s, Masala items


Dry fruits

Spicy items

Ready meals

Breakfast cereals

5) Process Dept

Health drinks

Ready to eat

Corn flaks, Chips

Instant mixes

Soups, Bread items, pickle

Spreads


For Beverages

Maaza

Slice

Bisleri

Cocacola

Pepsi

Thumps up

Apply

For confectionaries

Dairy Milk

Nestle


Parle

For Staples

Ashirwad

Pillsbury

Dhara

Sunflower

Non-food Dept6) Home care

Phenyl, Detergents

Dish wash, Tissue papers, Scratch

Shoe cases, Fresh wrap,

7) Personal care

Soaps, toothpaste, Shampoo

Deodorants, Body spry

Baby food, Talcum powder

Men’s apparel


For Home care

Lysole

HLL

Nirma


For Personal care:

Colgate

Pepsodent

Parachute

Lux International

8) Plastics, Utensils, Crockery (PUC)

a) Plastics

Buckets

Casseroles

Containers

Boxes

Flasks

Bowls

Jugs & sippers

Bottles & Mugs


Milton

Dream Line

Cello

Poly set


Chetan

b) Utensils

Plates, Bowls, Glasses

Non-stick Cookware’s

Kitchen tools

Tiffin Boxes

c) Crockery

Crockery cutlery

Table Materials / Napkins

Casseroles

Dinner sets

Wine, Juice Glasses

Future Plans of BIG BAZAAR

Recently they are interested to expand their retail business in

Mysore and along with that they are interested to establish

two retail outlets in Gulbarga District.

Big Bazaar plans 300 stores by 2010-11

20 May, 2009, 1722 hrs IST, PTI


NEW DELHI:

Kishore Biyani-promoted Future Group's retail chain Big

Bazaar is planning to have 300 hypermarkets in the country

by 2010-11.

The company is also mulling to increase its annual turnover to

Rs 13,000 crore by 2010-11, up from Rs 3,600 crore last

fiscal on the back of its expansion.

"We started with our first store in October 2001 and have now

crossed the hundred mark with three stores opened today in

Pune, Cut tack and Delhi. Our plan is to increase the number

of our stores to 300 by end of the 2010-11 fiscal," Big Bazaar

Chief Executive Officer Rajan Malhotra said.

He said the company would have another 35 odd stores by

end of its fiscal in June 2009 to take the total number to 135.

"We are targeting a turnover of Rs 5,000 crore this year and

have plans for reaching a figure of Rs 13,000 crore by 2010-

11 fiscal," Malhotra said.

He added that the company would be looking at both the


http://economictimes.indiatimes.com/Retailing/Big_Bazaar_plans_300_stores_by_2010-11/articleshow/3545336.cms

http://economictimes.indiatimes.com/Retailing/Big_Bazaar_plans_300_stores_by_2010-11/articleshow/quickiearticleshow/msid-3488371.cms

metros and Tier I cities, besides Tier II and smaller cities, for

the expansion.

The Big Bazaar hypermarkets had a footfall of 11 crore last

fiscal and the company is aiming for an increase in the

numbers up to 14 crore this year. The size of its hypermarkets

on average is 30,000 sq ft to one lakh sq ft.

The company is also launching a special festive season 'One

in a Lifetime' offer across all its stores on October 1-5. The

offer would run in all Big Bazaar format stores on apparels,

footwear, accessories and general merchandise, he added.

Organizational Structure (Zonal)

President

Vice President

Marketing HR Category Manager Finance Manager Operation


Manager Manager Head

Marketing HR Category Finance Head Store manager Head Head Head

Store Structure

Store Manager

Assist Store Manager


Dept Manager Human Resource Administration Info Tech

Visual Merchandise

Marketing

Assist DM Cashing Dept

MaitananceTeam Leader Assistant HR

Security

Team Members Cashier House keeping

CSD

(Customer Service desk)

VISSION

“TO EMERGE AS THE BEST AND THE MOST

PROFITABLE RETAILER IN INDIA”


MISSION

"TO SPEARHED HIS COMPANY TO BE THE

FINEST AND THE MOST PREFERRED

CHAIN IN RETAILING”

Big Bazaar on an expansion spree

Countries leading retail chain Future Group is going for a

major expansion of its Big Bazaar chain of outlets, with the

company planning to take the total number of stores to 150

by June 2009.

Big Bazaar presently has 92 outlets across the country and has

plans to add over 45 stores by the end of June 2009, Future

Group Director Rakesh Biyani said. Besides, the company is

also exploring for a 50:50 joint venture with International

Group for its kidsWear segment.


"We are exploring various proposals and options to maximize

our efficiency and operations," he said on the sidelines of the

Pure & Play Retail Summit here. When asked

About the media reports regarding Future Group plans' to split

the company into two specialized segment consisting of front

- end and back - end retail, Biyani refused to

Comment on the issue.

"The company cannot comment on speculated stories run by

sources. There is no official

Announcement or decision in this regards," Biyani said. He

added that the company’s expansion would be fully funded,

with its own capital.

"The funding plans are being done by preferential allotment

and we have already decided about the amount, " he said.

Future Group is also starting its own ethnic women's

wear stores and the first one will start by August this year.

"A total ethnic in the women' wear category will come up in

various cities and the stores will be on 15,000-16,000 sq

feet," Biyani added that the company is planning to grow by

15-20 per cent in apparel wear and double its sales of ethnic

women wear in the next few years. The company is also

looking for an increase of 50-55 per cent in its total sales over

the next five years.

SECURITY MEASURES

Pantaloon Apparel, food, etc. POS: Home-grown solution

SAP Retail

BI and Data warehouse: Congo’s (process of evaluation)

handheld scanners at Food Bazaar

VPN: Company-wide network linking all the branches


http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Big_Bazaar_on_an_expansion_spree/rssarticleshow/3180371.cms

They have loss prevention cell (LPC) that will be looking

after the safety measures in the organizations. There are 5

members in each store.

They have 3 types of tags

4. Hard tag

5. Soft tag

6. String tag

These tags will be attached to the materials. If any person will

take that without paying bill some process will be taken by

the LPC.

Process: In case any theft is done in big bazaar they will catch

the person & they will fine him and they will fill one form

that he had done the mistake & they will take all 10 fingers

thumb impression.

Departmental Managers

There are 24 departments in this store like Electronic dept,

Depot dept, NBD dept, Mobile Bazaar Dept, Star sitar Dept,

PUC Dept, Ladies Dept, Men’s Dept, Furniture Dept,

Footwear Dept, and Home Décor Dept. Each department will

be assigned with targets, which have to be achieved within the

assigned period that may be of Daily, Weekly, monthly and

yearly.

Each department has a department Manager & Assist DM.

Their job is concerned mainly with sales. They look after


customer’s orders delivery post sale service if any etc. All

Dept managers ADM, Team members work under

coordination & cooperation.

They are also responsible for the placing orders of the goods

incase of shortage here they have to send indent specifying

the amount of products needed at the store. They have to

report periodically the performance of the department to the

store manager.

Administration

Store administration comes under Store Manager its functions

are store maintenance, House Keeping, Security etc. Store

manager has to control all the activities within the store. He

has to communicate all the departmental managers and

assistance departmental managers regarding any new offers,

regarding their targets etc. Sore manager has to see the

operation at the store is being performed in coordination and

cooperation he has to communicate with the corporate office

regarding any changes being applied at the store.


Information Technology

This department is responsible for the maintenance of the

systems of the stores. All billing machines their functioning

networking with the master machine etc. If there is any

problem with the machine then this department comes into

function.

Cashing Dept

This department is responsible for the collection of sales

amount i.e. cash sales, Credit sales, etc under this department

all billing machines of the stores comes. The sales amount

collected throughout the day by the cashier’s has to be

submitted to this department.

Marketing

This dept is responsible for the marketing of the store in

different media like Television, Newspaper, and Holdings etc.

the authorized person has to visit different companies and has

to look after for tie-ups etc. The executives arranges rally’s

Visual Merchandise

This department is responsible for the product arrangement at

the store with respect to their nature. The basic function of

this dept is it divides the store into several departments based

on the nature of the product and within the department it


decides how the products should be arranged by keeping in

mind the customer should not suffer.

Human Resource

Human Resource basically works for the welfare of the

employees. It acts to organize the manpower and work to

increase productivity of the employees. Basically Human

Resource performs the functions of Recruitment, Hiring,

Induction, Training and development, Performance appraisal

of the employees. Human Resource studies and involves in

inter life cycle of the employee from his joining the

organization to till his end from the organization.

CSD (Customer Service Desk)

This is the separate unit, which is mainly focuses on customer

service like if the customer find difficulty in finding any

product, Customer complaints any replacement, Customer

assistance etc.

Supply chain management:

Company’s supply chain was split into the broad categories of

fashion, food and general merchandise, leading to a more

focused approach to businesses, improved service levels,

better customization of logistic and supply chain related

needs, and finally deliverables. Further, with new concepts

and lines of business being included during the year, as well

as strategic alliances with other companies, the process of


gradually integrating them have either been completed or

close to completion.

The existing supply chain design consists of a Master

Distribution Centre (MDC) and city warehouses upgraded to

Regional Distribution Centers (RDCs) and additional

Distribution Centers (DCs). The company had one MDC and

16 RDCs and DCs

The company has also appointed leading international and

domestic players in the warehouse infrastructure and

technology front.

The company also introduced the concept of reverse logistics

that looks at setting up a process to transfer finished goods

from the consumption point to the point of origin.

This reduces wastage and can lead to significant cost savings.

On the technology front, all the existing MDCs, RDCs and

DCs are live on SAP, thereby facilitating standardization,

real time data management and reporting, as well as optimum

operational efficiencies.

My Learning Experience in the company

I am very happy to express my practical experience at Big

Bazaar. Before going to share my practical feelings regarding

project work. I would like to say heartily thanks to Adept

Institute of Management studies. Who have given one of the


good opportunity to learn a knowledge in practical

environment and along with that I would like to say heartily

thanks to company guide Mr.Arif ADM (Assistant

Department Manager) of big Bazaar.

I had under gone a glorious 30 days project at Big Bazaar.

And along with that I had learn a lot of practical things from

the corporate world. From this project i came to know that

customer buying behavior and taste and priority preferences

of customer towards retail sector and competition level in the

sector and along with that i had learn how management is

responsible for increasing sales and revenue of the company

And also i learned what management make to attract the

customer there are several promotional strategy which

influencing purchase decision of buyers and also I learned

functional department like HR, Finance and Marketing.

From this project now I came to know that how to carried out

business process in a systematic manner in the competition

level.

This practical knowledge of project made me to perfect in

future to stand in a any corporate world. And Finally I thanks

to AIMS College Dharwad and company guide

Mr.Arif


Research Methodology

Since the study is on retail sector first the detail study of the

store is been conducted about its Management team its

structure the number of departments which all brands does the

store has, who are its suppliers about its warehouses.

Based on the topic objectives were set and to arrive at the

opinion on objectives a set of 100 questionnaires were

designed of 10 questions and response is collected from the

customers who are visiting the store. For data collection

Random Convenient sampling method was adopted

For this project the area of research is Hubli.

Objective of the project

To know the effective promotional strategy which

influence customer to purchase a product of Big

Bazaar.

Sub-objectives

1) To know the promotional strategy of big bazaar


2) To know the relationship between promotional

strategy and buying decision

Data Collections Methods

Market research requires two types of data i.e. secondary data

and primary data. Primary data has been used abundantly for

the study. Well-structured questionnaires were prepared &

the survey was undertaken. Feedback for the display has been

taken by asking questions & observation has also done to

gather primary information.

There is also a use of secondary data, collected from the

various journals, books, and websites & from company

managers.

Primary data Field Survey

Secondary data Big Bazaar records

Text Books and journals

Company Websites

Area of research: Hubli

Research approach: Survey method


Sampling Method

Since the study is restricted to Retail sector, all the functional

Departments of Big Bazaar and the respondents are found at

the store only so according to the convenience randomly they

are being picked so sampling method is used in this study is

Random Convenient Sampling.

Sampling

Sample size : 100 respondents

Sampling Method : Random Convenience sampling

Sample Unit : Customer of Big bazaar

Measuring Tool : Questionnaire


ANALYSIS AND

INTERPRETATION


Q No 1: Which store first comes to your mind when you

think of purchasing a product?

RESPONSE NO OF RESPONDENTS PERCENTAGE

Big bazaar 77 77%

Vishal mega mart 15 15%

Others retailer 8 8%

Total 100 100%

ANALYSIS:

From the survey, from 100 respondents, 77% of them gave 1st

preference to Big Bazaar 15% of them gave preference to

Vishal Mega Mart and 8% were gave to other retailer .


INTERPRETATION

Most of the customers are given 1st preference to Big

Bazaar compare to other retailers

2) From which source did you come to know about Big Bazaar outlet.

RESPONSE NO OF RESPONDENT PERCENTAGE

T .V Advertisement 23 23%

Hoardings 34 34%

News paper 31 31%

Buspaintings 12 12%

Total 100 100%

ANALYSIS:


From the above graph i can come to know that, among 100

respondents, 23% of them come to know about Big Bazaar

through TV advt., 34% of the respondents told that through

Hoardings, 31% of them through news paper , and 12% came

to know through bus painting

INTERPRETATION. Hoarding is the most influencing

factor which is responsible for awareness of Big Bazaar.

3) Are you aware of promotional offers conducted by big

bazaar?

Response No of respondents Percentage

Yes 87 87%

No 13 13%

Total 100 100%


ANALYSIS: Among the 100 respondents, 87% of them

they are aware of promotional offers, 13% told they have told

that they are not aware.

INTERPRETATION:


87% of customers are aware of promotional activity in the big

bazaar.

4) Please choose below the factor which attracted you

most at the Big Bazaar.

RatesNo of

respondents percen

tage

Offer 51 51%

Service 9 9%

Quality 23 23%

Availability of products 17

17%

Total 100 100%

Analysis

Among 100 respondent 51% of customer they have told that

they are attracted by the offers and 9% of them told that they

are attracted by service and 23% of them told that they are


attracted by quality and only 17% of them told that only for

availability of products

Interpretation:

Most of the people attracted towards big bazaar only for the

promotional offers. So offer is the most influencing factor

among those.

5) Which of the following factors influence in your purchase decision?

RatesNo of

respondents percen

tage

Offer 43 43%

Service 11 11%

Quality 21 21%

Effective advertisement 25

25%

Total 100 100%


ANALYSIS:

Among 100 respondent 43 of them told that offer is

responsible for their purchase decision and 9 of them told that

service and 23 of them told that quality an only 25 of them

told that effective advertisement

INTERPRETATION:

Among those factor offer is the emerging factor which is

responsible for purchase decision of buyers

6) Do you think the promotional activity of Big Bazaar

gives you clear message?


Yes 77 77%

No 23 23%

Total 100 100%


ANALYSIS:

Among 100 respondent 77 of them told that the promotional activities of big bazaar gives clear message and 23 of them told that they do not understood.

INTEPRETATION:Most of the people highly agree that promotional activity of big bazaar gives clear message

7) Will you advise anybody to visit Big Bazaar in your

future shopping


Yes 98 98%

No 2 2%

Total 100 100%

ANALYSIS:


Among 100 respondents 98 of them told that they will advise

others to visit big bazaar in future shopping and only 2 of

them told that they do not advise.

INTEPRETATION:

Most of the respondent they would like to advise others in future shopping


8) Looking at the promotions of Big Bazaar does your

purchase pattern changes


Yes 83 83%

No 17 17%

Total 100 100%

ANALYSIS:

Among 100 respondent 83 of them told that these

promotional offers changes their purchase pattern and

only 17 of them told do not change.

INTERPRETATION:

Most of the customer believed that promotions is

responsible for their purchase decision


9). would you like to make your purchase under unexpected offers?


Yes 94 94%

No 6 6%

Total 100 100%

ANALYSIS:

Among 100 respondents 94 of them they are interested to

buy products under unexpected offers and only 6 of them

told that they do not buy.

INTERPRETATION:

Most of the customer interested to buy under unexpected

offers only.


FINDINGS

SURVEY FINDINGS

INFORMATION SEARCH AND EVALUATION PROCESS

From the sample size of 100 samples it is found that

the Brand is well positioned in the minds of customers

because 77% of the respondent’s preference is Big

Bazaar for their shopping.

Among 100 respondents, 23% of people told that 1st

they came to know through T V advertisement and

34% of people told that through hoardings 31% of

them told that through news paper and finally 12% of

them highly agree that through bus painting.

Among the 100 respondents, 87% of them told that

they are aware of promotional activities of big

bazaar .only 13% of them told that they are not aware

of promotional activity of big bazaar .


Among the 100 respondent 51% of them told that they

are attracted towards big bazaar only for the offers 9%

of them told that service and 23% of them told that

quality and only 17% of them told that due to

availability of products

Among 100 respondent 43% of them agree that offers

is the most emerging factor influencing purchase

decision and only 11% of them told that service 21%

of told that quality and finally 25% of them told that

effective advertisement is responsible for the

purchase decision.

Among 100 respondent 77% of them told that

promotional activities of big bazaar gives clear

message and 23% of them told that they did not

understood.

Among 100 respondent 98% of people interest to

advise others in future shopping and only 2% of them

not interest to advice.

Among 100 respondent 83% them told that

promotions of big bazaar changes their purchase

pattern and only 17% told that does not changes.


Among 100 respondent 94% of them told that they are

interested to buy products under unexpected offers and

6% of told that they do not buy.

Recommendations

Big bazaar should keep offers in regular intervals so

that there should not be a long term gap, because offer


is the most influencing factor which is responsible for

customer purchase decision.

And they also concentrate on T V advertisement they

should show ads and promotional offers in a regular

interval in three languages like Kannada Hindi

English.

Hoarding should be placed uncovered area.

CONCLUSION


Indian retail sector is witnessing one of the most hectic

Marketing activities of all times. The companies are fighting

to win the hearts of customer who is God said by the business

tycoons. There is always a ‘first mover advantage’ in an

upcoming sector. In India, that advantage goes to “BIG

BAZAAR”. It has brought about many changes in the buying

habits of people. It has created formats, which provide all

items less than one roof at low rates.

The consumer’s preferences are changing & they are moving

from Traditional Kirana stores to Modern Retail outlet. It’s

the main challenge to the Modern retail outlets to attract the

customers towards them from that of competitors. To attract

more customers companies have to carry out the promotional

activities in unique way. BIG BAZAAR has maintained that

uniqueness & has succeeded in attracting customers.

The promotional activity of the company, which famous as

Less Price than others as it says ‘Nobody Sells Cheaper and

Better!’ is made its place in minds of customer. As the

competition is becoming stiff in the market the activities

conducted by the company are unique, that have brought

fruitful result to the company. Among them sales Promotions

is one of the leading activity or unique among all other

activities & has high influence on the customer walk-in.


LIMITATIONS

The study was restricted to only the customers of BIG BAZAAR, Hubli.

The time constant was a limiting factor, as more time required carrying out study on other aspects of the topic.

The result and analysis based on the customer survey method and small sample size has taken only 100

Findings are related to particular areas.


ANNEXTURE

“A STUDY ON THE EFFECTIVE

PROMOTIONAL STRATEGY

WHICH INFLUENCES CUSTOMER

TO PURCHASE

A PRODUCT OF BIG BAZAAR”

Questionnaire

Name: ___________________ Contact No:

___________________

Address: _____________________

1) Which store first comes to your mind when you think

of purchase a product.?

a: Big Bazaar b:Vishal mart c:

other retailer

2) From which source did you come to know about Big Bazaar outlet?

a; T. V. advertisement b;. Hoardings.

c; bus paintings d. news paper


3) Are you aware of promotional activities conducted by

Big Bazaar in Hubli.?

a. Yes b. No.

4) Please choose from below the factor which attracted

you most at Big Bazaar?

a. Offer b. service c. quality

d.availability of products

5) Which of the following factors influence in your purchase decision.?

a. Offers c. Quality of products

b. Effective services d. Effective advertisement

6) Do you think the promotional activity of Big Bazaar

gives you the clear message? ?

a. Yes b. No

7) Will you advise anybody to visit Big Bazaar in future

shopping?

a. Yes b. No

8. Looking at the promotions of Big Bazaar does your

purchase pattern changes?

a. Yes b. No


9. Would you like to make your purchase under

unexpected offers?

a. Yes b. No

10) Any valuable suggestion

…………………………………………………………………

…………………………

…

Signature of Customer

Bibliography

Reference Books

o Marketing Management: Philip Kotlero Advertising and Sales: Promotion Belch and

Belch

o Retail Management: Bajaj and Srivastav

o Research Methodology: Cooper and Schindler

JOURNALS AND MAGAZINES

Business World

Business Today


Websites

www.google.com

www.pantaloon.com

www.wikipedia.com

www.timesofindia.com


http://www.timesofindia.com/

http://www.wikipedia.com/

http://www.pantaloon.com/

http://www.google.com/

adept foundation

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