management thesis mba

COMPARATIVE STUDY OF MARKETING STRATEGY REFERENCE TO 4PS OF BIG BAZAR & OTHER RETAIL COMPANY

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CERTIFICATE

It is certified that the work contained in the thesis entitled “A COMPARATIVE

STUDY OF MARKETING STRATEGY REFERENCE TO 4PS OF BIG BAZAR AND

OTHER RETAIL COMPANY"

By Rajesh Kumar has been carried out under my supervision and that this

work has not been submitted elsewhere for a degree.

Dr. Kausik Dutta

(Department of Marketing)

ICFAI University, Jharkhand.


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ABSTRACT

Retail is India’s largest industry, accounting for over 10 per cent of the country’s

GDP and around eight per cent of the employment. Retail industry in India is at the

crossroads. It has emerged as one of the most dynamic and fast paced industries

with several players entering the market. But because of the heavy initial

investments required, break even is difficult to achieve and many of these players

have not tasted success so far. However, the future is promising; the market is

growing, government policies are becoming more favorable and emerging

technologies are facilitating operations. Retailing in India is gradually inching its

way toward becoming the next boom industry. The whole concept of shopping has

altered in terms of format and consumer buying behavior, ushering in a revolution

in shopping in India. Modern retail has entered India as seen in sprawling shopping

centers, multi-storied malls and huge complexes offer shopping, entertainment and

food all under one roof. The Indian retailing sector is at an inflexion point where the

growth of organized retailing and growth in the consumption by the Indian

population is going to take a higher growth trajectory. The Indian population is

witnessing a significant change in its demographics. A large young working

population with median age of 24 years, nuclear families in urban areas, along with

increasing working-women population and emerging opportunities in the services

sector are going to be the key growth drivers of the organized retail sector in India.


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ACKNOWLEDGEMENT

The thesis 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 ICFAI University, Jharkhand 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 Faculty Guide Dr. Kausik Dutta who has supported me to complete this thesis.

I would like to express my most sincere thanks and gratitude to External guide Mr. Somen Banerjee (HR Manager, BIG BAZAAR) who have given a good support to grab the external exposure and to complete a thesis 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.


TABLE OF CO

1. BASIC OF MARKETING

2. INTRODUCTION TO RETAIL

3. RETAILING INDUSTRY IN INDIA

4. SHOPPER INTELLIGENCE

5. CURRENT TRENDS AND CHALLENGES

6. COMPANY PROFILE

7. BIG BAZAAR : Positioning & Establishment

8. BIG BAZAAR : 7 P’s Analysis

9. STUDY STORE

10. STUDY STORE : Organisational Structure

11. RESEARCH METHODOLOGY

12. OBJECTIVE OF THE THESIS

13. DATA COLLECTION METHOD

14. SAMPLING METHOD

15. ANALYSIS & INTERPRETATION

16. SURVEY FINDINGS

17. CONCLUSION

18. BIBLIOGRAPHY

TABLE OF CONTENTS


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MARKETING ……………..

ION TO RETAIL ……………..

RETAILING INDUSTRY IN INDIA ……………..

SHOPPER INTELLIGENCE ……………..

CURRENT TRENDS AND CHALLENGES ……………..

……………..

BIG BAZAAR : Positioning & Establishment…………….

s Analysis …………….

…………….

STUDY STORE : Organisational Structure …………….

RESEARCH METHODOLOGY …………….

OBJECTIVE OF THE THESIS …………….

DATA COLLECTION METHOD …………….

…………….

NALYSIS & INTERPRETATION …………….

…………….

…………….

…………….

TABLE OF CONTENTS


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TABLE OF CONTENTS

HISTORY

The practice of marketing is almost as old as humanity itself. A Market was

originally simply a gathering place where people with a supply of items or capacity

to perform a service could meet with those who might desire the items

perhaps at a pre-arranged time.

Such meetings embodied many aspects of today's marketing methods, although

sometimes in an informal way. Sellers and buyers sought to understand each other's

needs, capacities, and psychology, all with the goal

or services to take place. Today's New York Stock Exchange had its humble

beginnings as an open air market located at Wall Street in New York City.

The rise of Agriculture undoubtedly influenced markets as the earliest mea

'mass production' of an item, namely foodstuffs. As agriculture allowed one to grow

more food than could be eaten by the grower alone, and most food is perishable,

there was likely motivation to seek out others who could use the excess food, before

it spoiled, in exchange for other items.

In 1960 Theodore Levitt wrote a journal article called Marketing Myopia. This is

said to have really begun the marketing craze. In it he discussed that the big

manufacturing industries at the time were misinterpretin

part of. He stated that until you fully understood the industry you were part of you

were likely to fail. For example the rail industry was not in the business of rail

transport but in the industry of transport in general they wer

the likes of cars and public transport.

Levitt is said to be one of the founders of the marketing discipline, and contributed

to the making of the 4Ps framework that transactional marketing is based around.

A little bit of marketing theory... All it takes is a little theory practiced and applied,

and soon you will find that marketing comes naturally.

Marketing is more than sales. Marketing is the set of activities used to

1. Get your potential custome

2. Motivate them to buy

3. Get them to actually buy

BASIC OF MARKETING


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to perform a service could meet with those who might desire the items

arranged time.



needs, capacities, and psychology, all with the goal of getting the exchange of items



The rise of Agriculture undoubtedly influenced markets as the earliest mea




t spoiled, in exchange for other items.



manufacturing industries at the time were misinterpreting what industry they were



transport but in the industry of transport in general they were still competing with

the likes of cars and public transport.




and soon you will find that marketing comes naturally.


1. Get your potential customer's attention

3. Get them to actually buy

BASIC OF MARKETING


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to perform a service could meet with those who might desire the items or services,



of getting the exchange of items



The rise of Agriculture undoubtedly influenced markets as the earliest means of






g what industry they were



e still competing with






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4. Get them to buy again (and again…)

Marketing is how you define your product, promote your product, distribute your

product, and to maintain a relationship with your customers.

Marketing theory is made up of the 5 P’s. Product, Positioning, Place, Price and

Promotion. Each "P" contributes to your marketing

Product

Product is, of course, the thing (or service) that you have to offer to the customers.

There are a number of thing about the product you should evaluate. It is important

to understand your product from the customer’s point of view.

Product Description

It is critical to be able to say in one clear sentence why your product is perfect for a

specific buyer and what it does best.” To (target audience), (product name) is the

type of (product) that (performs this task)."

Product Name

It is more important to be descriptive than creative. There are some exceptions to

this - such as music band names. One of the best ways to determine a name for a

product is to have a brainstorming session. The rules of brainstorming are:

1. No ideas are rejected or criticized

2. It is a free form "brain dump"

3. Someone is in charge of writing the ideas on a board where everyone can see

them.

4. After the ideas a generated, they are ranked by preference.

5. The pros and cons of the top ideas are discussed.

Functionality, Features & Benefits

In order to begin to understand the product from a customer’s point of view, list the

functionality, the features, and the benefits that product has. List functionality and

features that could be added.

Prioritize each for the target market or market segments to determine the

development of the product going forward.

This list will be used in positioning the product.


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Product Adaptability

By understanding how adaptable your software is, you can incorporate the

necessary elements into your marketing. There are five factors for measuring how

"adaptable" a new product is:

• Relative advantage of the product: How superior is the innovation to the

product or other problem-solving methods it was designed to compete

against?

• Compatibility: Does it fit with current product usage and customer activity?

• Complexity: Will difficulty or confusion arise in understanding the

innovation’s basic idea?

• Divisibility: How easily can trial portions of the product be purchased?

• Communicability: How likely is the product to appear in public places where

it is easily seen and studied by potential users?

Example - Product Music CD

What is it that you are selling?

You could say you are selling music, or an experience, or a feeling, or yourself. But

the bottom line is that you want people to buy your CD.

Note: Producing CDs has many advantages over producing tapes. CDs can be

produced for about $2 - $3 each, and you can charge $10 - $20 for them. CDs give a

professional, polished impression, and it is the media of choice for music listeners.

Ah. But what about tickets you sell to a show? Or T-shirts you sell? Aren't these

your product? Not really. They are ways to promote your CD. Everything you do

should be done with the end result of selling CDs.

Positioning

Simply, positioning is how your target market defines you in relation to your

competitors. A good position is:

1. what makes you unique

2. This is considered a benefit by your target market

Both of these conditions are necessary for a good positioning. So what if you are the

only red-haired singer who only knows how to play a G minor chord? Does your

target market consider this a good thing?

Positioning is important because you are competing with all the noise out there

competing for your potential fans attention. If you can stand out with a unique

benefit, you have a chance at getting their attention.


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It is important to understand your product from the customer’s point of view

relative to the competition.

Environment

In order to begin positioning a product, two questions need to be answered:

1. What is our marketing environment?

2. What is our competitive advantage?

The marketing environment is the external environment. Some things to consider:

• How is the market now satisfying the need your software satisfies?

• What are the switching costs for potential users for your market?

• What are the positions of the competition?

The competitive advantage is an internal question. What do you have that gives you

advantage over your competitors. Some things to consider:

• Is your company small and flexibility?

• Do you offer low cost and high quality?

• Does your product offer unique benefits?

• Are you the first on the market with this product (First mover advantage)?

Positioning Strategies

There are seven positioning strategies that can be pursued:

• Product Attributes: What are the specific products attributes?

• Benefits: What are the benefits to the customers?

• Usage Occasions: When / how can the product are used?

• Users: Identify a class of users.

• Against a Competitor: Positioned directly against a competitor.

• Away from a Competitor: Positioned away from competitor.

• Product Classes: Compared to different classes of products.

Segmentation

There are three types of segmentation:

1. Mass Marketing or Undifferentiated Marketing: Go after the whole market

with one offer and focus on common needs rather than differences

2. Product-variety Marketing or Differentiated Marketing: target several market

segments and design separate offers for each


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3. Target Marketing or Concentrated Marketing: Large share of one or a few

sub-markets. Good when company’s resources are limited.

To identify a niche market, a series of 2 by 2 matrixes can be used to identify an area

that is being overlooked by larger competitors. The competitors are mapped on this

matrix and you can see where there may be some opportunities.

Positioning Differences

The differences that are promoted for a product must be:

• Important: The difference delivers a highly valued benefit to the target

buyers.

• Distinctive: Competitors do not offer the difference, or the company can offer

it in a more distinctive way.

• Superior: The difference is superior to other ways that the customer might

obtain the same benefit.

• Communicable: The difference can be explained and communicated to the

target buyers.

• Preemptive: Competitors cannot easily copy the difference.

• Affordable: Buyers can afford to pay the difference.

• Profitable: Company can introduce the difference profitably.

Place

Place, or distribution channel, is the method for making your product available to

the consumer.

Functions

There are eight main functions for distribution channels:

1. Information: gathering and distributing marketing research

2. Promotion: developing and communicating offers

3. Contact: communicating with prospective buyers

4. Matching: fitting the offer to the buyer's needs

5. Negotiation: reaching agreement on price and terms

6. Physical distribution: transporting and storing the goods

7. Financing: getting and using funds to cover the costs of channel work

8. Risk taking: assuming the risks the channel work.

Example - Selling a CD

Place is simply where your fans buy your CD. You can also call it distribution.


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There are many ways to distribute your CD.

Retail

Probably the most difficult is retail (selling your CD in music stores). This is difficult

for independent musicians or bands because you usually need to have a relationship

with a distributor.

Online

Isn't the Web wonderful? You can easily and cheaply set up a web page with your

information, sample audio files, show dates, and how to order your CD.

In Person

Whenever you perform, you should sell your CDs. You can mention that you are

selling CDs and where to buy them while you are performing. It is easier if you have

a friend to help you. This person can collect the money, hand out the CDs, etc. so you

don't have to worry about it during a show.

In Home

There is nothing wrong with telephone orders!

Price

Price is the amount of money charged for a product or service or the value

exchanged for the benefits of the product or service.

For a new product, you must understand your positioning before you set a price.

Make sure it is not too low, or the product will not be taken seriously. If it is too

high, the potential customer will not take the risk.

Pricing Strategies

There are five general pricing strategies:

1. Product Line: Setting price steps between product line items

2. Optional Product: Pricing optional or accessory products

3. Captive Product: Pricing products that must be used with the main product

4. By-Product: Pricing low value by product to get rid of them

5. Product Bundle: Pricing bundles of products sold together

New Product Pricing

There are two new product pricing strategies:


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• Market-Skimming: Initially set high prices to "skim" revenue layer by layer

from the market. Works when:

Quality and image support the higher price

Enough buyers want the product at that price

Cost of producing a small volume cannot be high

Competitors should not be able to enter the market easily

• Market Penetration: Set a low initial price in order to penetrate the market

quickly and deeply to win a large market share. Works when:

Market is highly price sensitive

• Production and distribution costs fall as sales volume increases

• Low price must help keep out the competition

Price Adjustment

The following are price adjustments based on changing situations:

• Discount & Allowance: reduced prices to reward customer responses such as

paying early or promoting the product

• Discriminatory: adjusting prices to allow for differences in customers,

products, and locations

• Psychological: adjusting prices for psychological effects. Ex: $299 vs. $300

• Value: adjusting prices to offer the right combination of quality and service at

a fair price

• Promotional: temporarily reducing prices to increase short-run sales

• Geographical: adjusting prices to account for geographic location of customer.

• International: adjusting prices in international markets

Promotion

Promotion is the specific mix of advertising, personal selling, sales promotion, and

public relations a company uses to pursue its advertising and marketing objectives.

If you are an entrepreneur, you most likely have limited resources and you are still

learning about the market. Information gather is extremely important at this stage

of the game. The trick is the start the revenue stream without spending too much

money.


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Objectives

The objectives that are met by promoting are to move the target market through the

following phases:

“It is believed that consumers cannot skip over a phase, but they need to move

through them. Promotion is used to move the target market from one phase to

another to finally purchase.”

The Offer

The offer needs to be identified before you begin any promoting. What are you

offering the target customer? What do you want the target market to do?

One mistake that can be made is to create a promotional advertisement and not tell

the customer what to do. You should prompt the customer and tell them to "call this

number to place an order" or "download this software from our web site".

Measuring Response

Testing different offers, advertisements, direct mail letters, lists, and promotion

techniques can tell you what method is most effective. There is a trade-off. Testing is

expensive. You need different versions of promotions, which raises production

expense. You need to track the results, which takes time. But the information you

gather could help you reduce wasteful, ineffective spending in the future.

If you decide to test, make sure you have a method for measuring response. You can

do this by first asking the customer where they heard about you when taking the

order, if it is a telephone order. If it is an order form that they mail back to you, you

can code the order form with a tracking number that lets you know exactly what

promotion the customer is responding to. This information can then be entered into

the customer database for future analysis.

World Wide Web

The Web allows for a cheap way of promoting your product. It is a great tool

because it allows the target customers to educate themselves about your product by

reading about it, seeing a demo, and download a copy (and therefore serve as your

distribution channel).


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Remember, you are trying to reduce the perceive risk of purchasing your product.

By providing a Web page, you are moving the target market through the

communication cycle from unawareness to purchase.

Also, you are trying to reach innovators and early adopters. These people are

actively searching for better ways to meet their needs. The Web is a natural place

for them to go to look for you.

The difficulty with the Web is all of the noise out there. It is very crowded and

difficult to be noticed. Register with the entire search engines, such as Yahoo and

Alta Vista. Make sure that there are keywords in your web site that will attract your

target audience.

Direct Mail

An average response rate for direct mail is about 1%. This depends on the offer, the

mailing list, the target audience, the creative (how the direct mail piece looks), and

the timing of the mailing. There is a whole industry built around direct mailing.

This promotional activity involves many steps.

Direct mail is a way of promoting your software product by sending prospects mail.

It is a way of directly communicating to a list of people.

List Selection

A list is the names and addresses that you use to send your direct mail piece. This

list is very important to the success of a mailing. Some experts place 40% - 60% of

importance to the list and 40% - 60% to other combined factors, such as offer, sales

letter, and timing.

You rent a list from a company - as opposed to buying a list. You can rent a list for

one-time use, n-time use, or unlimited use. However, until you test the list, it would

be best to rent it for one-time use. Once you determine which list works for you,

then you can start negotiating multi-use lists.

Be aware that list rental companies track the use of your list. They include "seed"

names that you will not be able to identify. These seed names show if you use the list

more times than you rented it for.

Once a name on the list contacts you, whether to buy or simply inquire, you can then

use that name any way you want. They are considered your customer now.

You rent lists from a variety of sources:


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• Compiled List: Names and addresses from a common source - such as a phone

book. These lists are the least expensive, but have the lowest response rate.

• Mail Order Buyer Lists: Names and addresses of people who have responded

to direct mail in the past. Lists can be selected by lifestyle or special interests.

These lists respond better than compiled lists.

• Publication Lists: Names and addresses of people who subscribe to a

particular magazine. General interest magazines tend to have a lower

response rate than special interest magazines. Special interest newsletters

have a small circulation, but if this group is your target market, it can have a

better response rate than other lists.

• Donor Lists: Names and addresses of people that are of interest to non-profit

organizations.

• House Lists: Names and addresses owned by a specific company of customers

and inquires of their product.

You can narrow lists down by demographic information, such as gender, geographic

location, income, homeowners, frequency of purchase, regency of purchase, and

monetary (amount) of purchase. Regency of purchase tends to be a good indicator of

response rate. The older the names, the less likely the response - although you must

test your lists to determine how old is old.

Make sure that the company renting you the list has merged/purged it for duplicate

names, has updated the names and addresses using NCOA (National Change of

Address), and cleaned the file (removed all non-deliverables from the list). You

should have in your contract you get credit for names that are returned for non-

delivery.

You should merge/purge the file against any customer list you already have, or any

other rented lists you have.

Prices are usually given in cost per thousand. There is usually a minimum order -

such as 5,000 names. There is usually a cost to select based on certain criteria. Price

ranges can be from $50/M to $300/M for a base price. Each source varies. However,

the cheapest list may not be the most cost effective. You need to look at cost per

acquisition once the mailing is complete.


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Common Measurements

• Cost per acquisition = Total Cost of Mailing / Number of Responders (people

who ordered).

• Cost per piece = Total Cost of Mailing / Number of People Mailed.

• Response rate = Number of Responders / Number of People Mailed.

Response rates to prospects (non-customers) average around 1%.

Response Mechanism

One of the most important parts of your direct mail piece is the response

mechanism. This is the device that the prospect will use to place the order (or

request information).

In designing your response mechanism or order form you need use all you have

thought about so far - your offer, your product, the benefit it gives your customers,

the price, and the risk reducer (such as a money back guarantee or a free trial

period).

Make it easy for the prospect to place the order. Give them many ways to do it -

telephone, e-mail, fax, mail back order form.

Tell them exactly how to pay for the order.

The response card should be easy to fill out, offer as few choices as possible, be

short, and be easy to read and understand.

Although using a postcard may be cheaper, people will not put confidential

information on a postcard. They will not put credit card number or even name and

phone number on something everyone can read. Use a business reply envelope,

even if it is a little more expensive. You will get a higher response rate. And make

sure the response card fits in the envelope without folding it.

Involvement devices work. Give the prospect something to do, such as check a box

to order or place a sticker or stamp on the order form.

Give the order form a look of intrinsic value. Use the bond-like borders, seals,

stamps, and other money look a-likes.

Product Brochure

This piece of the direct mail can be made a little more "slick" than the sales letter

will be. The brochure will describe your product, the technical specifications, and


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the benefits to the customer, and testimonials from other customers, any free trial

period, and money back guarantee.

Include the company's name, address, phone number, fax number, and web address.

Sales Letter

The first line of a sales letter is a headline. It should give the reader immediately the

benefits of the offer being made. This is the first thing a reader will read. The P.S. at

the bottom of the letter is the second thing a read will read. Be sure to add a P.S. to

your letter, giving the offer, the benefits, the free trial period, and the deadline.

The average length of the sales letter is 4 pages long. Two pages long are considered

a short length letter and six or more is considered a long length letter. Printing on

both sides of a page test as well as one sided print.

The use of push dates test better than no push dates. A push date is a deadline for

the prospect to order - "PLEASE RESPOND BY MONDAY". If you are going to use a

specific date, allow for at least three weeks for delivery for third class mail.

Envelope

The first thing the prospect sees is the envelope. Some people use this to print a

"teaser" copy on the front of the envelope. This could be used to hint at what great

offer lies inside if they just would open the letter.

The risk is that the teaser copy immediately tells the prospect that this is another

advertisement junk mail piece, and it may not get opened as a result.

If you do use teaser copy, make sure that whatever is promised on the outside is

fulfilled on the insider. Otherwise the person will be angry, and therefore, no sale.

Testing and Tracking Response

On your response card, you can assign a code so you can keep track of what the

customer is responding do. What list did you use, what offer, what sales letter, what

brochure, what price, etc. There is no limit to the things you can test via direct mail.

For example AA-123-MA-1 could translate to the first mailing of list source AA, sales

letter 1, brochure letter 2, and price 3, in Massachusetts.

If you are testing price, make sure that everything else is constant. Use the same list

and the same direct mail piece, with just the price changed.


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Some Tricks That Work

Remember that direct mail is a personal medium. The more personal you can make

your mail look, the better response you will get.

Stamps work better than metered mail. Stamps look more like a personal letter.

First-class stamps provide a fast delivery, but don't necessarily improve response

rate version third-class stamps.

Flamboyant color just for the sake of color does not pay off. If you decide to use

some color for conservative enhancement, browns and greens do not work as well

as aquamarine blues, cold and warm grays, warm reds. Some other successful colors

have been bright orange, yellow ochre light and/or a metallic gold.

Soft white book and antique-finish papers work better than slick super white paper.

Cheap thin paper makes the product look cheap.

Address labels perform worse than computer printed addresses directly on the

envelope.

Make a dummy sample to determine folding of paper, size, and most importantly

weight. Postage is very expensive, and if you go over the designated weight set by

the post office, you will be paying for it. See the post office for the weight and size

limits for first-class and third-class mail. People like to do things. Checking a box,

using stickers and stamps and work to improve response.

Classified Advertisements

Although it may nice to be able to take out a full color, full page advertisement in an

industry magazine, it is very expensive and will not reach your target market of the

innovators and early adopters. This target market will read the classified ads in the

magazines looking for and willing to try new things.

The key for classified advertisements is frequency. Running an ad once will create

awareness, but not necessarily action.

Request a media kit from the magazine you are considering. This should contain

circulation information, subscriber profiles, and prices. This will help you determine

if your target market reads this magazine.


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Press Releases

A press release is an announcement of a new product release. Editors may take this

information and publish it as news in their magazine or newspaper. This is a great

way to get free publicity.

To send a press release, you should prepare a press kit that includes:

• Cover letter to the editor

Press release product announcement

Product features sheet

• Corporate background sheet

Evaluation product

Technical specifications sheet (if any)

Reprint of any past articles

Names of end user contacts and comments

Picture of your product

The editor may take your product announcement, make some modifications to it by

hand, and send the original to be printed. In general, editors like to have the press

releases double spaced with plenty of margin room.

There can be a 3-4 month lead time before your press release is published.

If possible, tie your press release into current events or human interest. It has a

better chance of being published.

Don't write your press release like an advertisement. Any claims you make be sure

to back them up with user testimonials.

Tailor your press release to each publication, or at least each type of publication.

Mass mailing press releases don't usually get published. Also, send your press

release to one person at each magazine. If you are unsure of the person, contact the

magazine for a contact name.

Include in your press release the product name, the price, a company contact name,

the company name, address, phone number, fax number, and e-mail address. Be

prepared to take questions.

Your opening sentence should be clear and concise. "The first (product) capable of

(doing this benefit) is now available from (your company) for people who need to

(this need)".


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Product Reviews

Magazines have product review editors that review it in an article or column. This

can provide great exposure. However, it can also be risky. What damage will it do if

you get a bad review? Before pursuing this promotional activity, it may be safest to

fully complete testing, and have contacted many new customers to get their

feedback on the product. Make sure there are no surprises.

Choose a magazine your target market is reading. You can always use quotes from

the review in your promotional material for other promotions. With more people

accepting the product, the faster you will move past the early adopters and

innovators.

Call the magazine for the name of the correct person to send the product to. Ensure

that this person gets a full product.

Be available for questions. If a reviewer has problems, there will usually be a phone

call to the company first.

Example - Promotion Your Music


TABLE OF

What is retailing?

Retailing involves selling products and services to consumers for their personal or

family use. Department stores, like Burdines and Macy's, discount stores like Wal

Mart and K-Mart, and specialty stores like The Gap, Zales Jewelers and Toys 'R' us,

are all examples of retail stores. Service providers, like dentists, hotels and hair

salons, and on-line stores, like Amazon.com, is also retailers.

Many businesses, like Home Depot, are both wholesalers and retailers because they

sell to consumers and building contractors. Other businesses, like The Limited, are

both manufactures and retailers. Regardless of other functions these businesses

perform, they are still retailers when they interact with the final user of the product

or service.

Retailing consists of the sale of goods or merchandise, from a fixed location such as a

department store or kiosk, in small or individual lots for direct consumption by the

purchaser. Retailing may include subordinated services such as delivery. Purchasers

may be individuals or businesses. In commerce, a retailer buys goods or products in

large quantities from manufacturers or importers, either directly or through a

wholesaler, and then sells smaller quantities to the end

are often called shops or stores. Retailers are at the end of the supply chain.

Manufacturing marketers see the process of retailing as a necessary part of their

overall distribution strategies.

Shops may be on residential streets, or in shopping streets with few or no house

in a shopping center or mall. Shopping streets may or may not be for pedestrians

only. Sometimes a shopping street has a partial or full roof to protect customers

from precipitation. Retailers often provided boardwalks in front of their stores to

protect customers from the mud. Online retailing, also known as e

latest form of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to

obtain necessities such as food and clothing; sometimes it

activity. Recreational shopping often involves window shopping (just looking, not

buying) and browsing and does not always result in a purchase.

INTRODUCTION TO RETAIL


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family use. Department stores, like Burdines and Macy's, discount stores like Wal

Mart, and specialty stores like The Gap, Zales Jewelers and Toys 'R' us,

ll examples of retail stores. Service providers, like dentists, hotels and hair

line stores, like Amazon.com, is also retailers.


building contractors. Other businesses, like The Limited, are



nsists of the sale of goods or merchandise, from a fixed location such as a


may include subordinated services such as delivery. Purchasers

viduals or businesses. In commerce, a retailer buys goods or products in


wholesaler, and then sells smaller quantities to the end-user. Retail establishments

ops or stores. Retailers are at the end of the supply chain.


overall distribution strategies.

Shops may be on residential streets, or in shopping streets with few or no house




tect customers from the mud. Online retailing, also known as e-commerce is the

shop retailing.


obtain necessities such as food and clothing; sometimes it is done as a recreational


buying) and browsing and does not always result in a purchase.

INTRODUCTION TO RETAIL


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family use. Department stores, like Burdines and Macy's, discount stores like Wal-

Mart, and specialty stores like The Gap, Zales Jewelers and Toys 'R' us,

ll examples of retail stores. Service providers, like dentists, hotels and hair


building contractors. Other businesses, like The Limited, are



nsists of the sale of goods or merchandise, from a fixed location such as a


may include subordinated services such as delivery. Purchasers

viduals or businesses. In commerce, a retailer buys goods or products in


user. Retail establishments

ops or stores. Retailers are at the end of the supply chain.


Shops may be on residential streets, or in shopping streets with few or no houses, or




commerce is the


is done as a recreational



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Most retailers have employees learn facing; a hyperreal tool used to create the look

of a perfectly-stocked store (even when it's not).

Retail pricing

The pricing technique used by most retailers is cost-plus pricing. This involves

adding a markup amount (or percentage) to the retailers cost. Another common

technique is suggested retail pricing. This simply involves charging the amount

suggested by the manufacturer and usually printed on the product by the

manufacturer.

In Western countries, retail prices are often so-called psychological prices or odd

prices: a little less than a round number, e.g. $6.95. In Chinese societies, prices are

generally either a round number or sometimes a lucky number. This creates price

points.

Often prices are fixed and displayed on signs or labels. Alternatively, there can be

price discrimination for a variety of reasons. The retailer charges higher prices to

some customers and lower prices to others. For example, a customer may have to

pay more if the seller determines that he or she is willing to. The retailer may

conclude this due to the customer's wealth, carelessness, lack of knowledge, or

eagerness to buy. Price discrimination can lead to a bargaining situation often called

haggling — a negotiation about the price. Economists see this as determining how

the transaction's total surplus will be divided into consumer and producer surplus.

Neither party has a clear advantage, because the threat of no sale exists, whence the

surplus vanishes for both.

Retailers who are overstocked, or need to raise cash to renew stocks may resort to

"Sales", where prices are "marked down", often by advertised percentages - "50%

off" for example."Sales" are often held at fixed times of the year, for example January

sales, or end-of-season sales, or Blue Cross Sale.

Etymology

Retail comes from the French word retaillier which refers to "cutting off, clip and

divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning

of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to

"cut off, shred, paring". Like the French, the word retail in both Dutch and German

(detailhandel and Einzelhandel respectively) also refer to sale of small quantities or

items.


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Retail types

There are three major types of retailing. The first is the market, a physical location

where buyers and sellers converge. Usually this is done on town squares, sidewalks

or designated streets and may involve the construction of temporary structures

(market stalls). The second form is shop or store trading. Some shops use counter-

service, where goods are out of reach of buyers, and must be obtained from the

seller. This type of retail is common for small expensive items (e.g. jewelry) and

controlled items like medicine and liquor. Self-service, where goods may be handled

and examined prior to purchase, has become more common since the Twentieth

Century. A third form of retail is virtual retail, where products are ordered via mail,

telephone or online without having been examined physically but instead in a

catalog, on television or on a website. Sometimes this kind of retailing replicates

existing retail types such as online shops or virtual marketplaces such as eBay.

Buildings for retail have changed considerably over time. Market halls were

constructed in the Middle Ages, which were essentially just covered marketplaces.

The first shops in the modern sense used to deal with just one type of article, and

usually adjoined the producer (baker, tailor, cobbler). In the nineteenth century, in

France, arcades were invented, which were a street of several different shops,

roofed over. From this there soon developed, still in France, the notion of a large

store of one ownership with many counters, each dealing with a different kind of

article was invented; it was called a department store. One of the novelties of the

department store was the introduction of fixed prices, making haggling unnecessary

and browsing more enjoyable. This is commonly considered the birth of

consumerism. In cities, these were multi-story buildings which pioneered the

escalator.

In the 1920's the first supermarket opened in the United States, heralding in a new

era of retail: self-service. Around the same time the first shopping mall was

constructed which incorporated elements from both the arcade and the department

store. A mall consists of several department stores linked by arcades (many of

whose shops are owned by the same firm under different names). The design was

perfected by the Austrian architect Victor Gruen. All the stores rent their space from

the mall owner. By mid-century, most of these were being developed as single

enclosed, climate-controlled, projects in suburban areas. The mall has had a

considerable impact on the retail structure and urban development in the United

States.


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In addition to the enclosed malls, there are also strip malls which are 'outside' malls

(in Britain they are called retail parks. These are often connected to supermarkets

or big box stores. Also, in high traffic areas, other businesses may lease space from

the supermarket or big box store to sell their goods or services from. A recent

development is a very large shop called a superstore. These are sometimes located

as stand-alone outlets, but more commonly are part of a strip mall or retail park.

Local shops can be known as brick and mortar stores in the United States. Many

shops are part of a chain: a number of similar shops with the same name selling the

same products in different locations. The shops may be owned by one company, or

there may be a franchising company that has franchising agreements with the shop

owners (see also restaurant chain).

Some shops sell second-hand goods. Often the public can also sell goods to such

shops, sometimes called 'pawn' shops. In other cases, especially in the case of a

nonprofit shop, the public donates goods to the shop to be sold (see also thrift

store). In give-away shops goods can be taken for free.

There are also 'consignment' shops, which is where a person can place an item in a

store, and if it sells the person gives the shop owner a percentage of the sale price.

The advantage of selling an item this way is that the established shop give the item

exposure to more potential buyers.

The term retailer is also applied where a service provider services the needs of a

large number of individuals, such as with telephone or electric power.

Why is Retailing Important?

As the final link between consumers and manufacturers, retailers are a vital part of

the business world. Retailers add value to products by making it easier for

manufactures to sell and consumers to buy. It would be very costly and time

consuming for you to locate, contact and make a purchase from the manufacturer

every time you wanted to buy a candy bar, a sweater or a bar of soap. Similarly, it

would be very costly for the manufactures of these products to locate and distribute

them to consumers individually. By bringing multitudes of manufacturers and

consumers together at a single point, retailers make it possible for products to be

sold, and, consequently, business to be done.

Retailers also provide services that make it less risky and more fun to buy products.

They have salespeople on hand who can answer questions, may offer credit, and

display products so that consumers know what is available and can see it before


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buying. In addition, retailers may provide many extra services, from personal

shopping to gift wrapping to delivery, that increase the value of products and

services to consumers.

The Future of Retailing

Advances in technology, like the Internet, have helped make retailing an even more

challenging and exciting field in recent years. The nature of the business and the

way retailing is done are currently undergoing fundamental changes. However,

retailing in some form will always be necessary. For example, even though the

Internet is beginning to make it possible for manufacturers to sell directly to

consumers, the very vastness of cyberspace will still make it very difficult for a

consumer to purchase every product he or she uses directly. On-line retailers, like

Amazon.com, bring together assortments of products for consumers to buy in the

same way that bricks-and-mortar retailers do.

In addition, traditional retailers with physical stores will continue to be necessary.

Of course, retailers who offer personal services, like hair styling, will need to have

face-to-face interaction with the consumer. But even with products, consumers

often want to see, touch and try them before they buy. Or, they may want products

immediately and won't want to wait for them to be shipped. Also, and perhaps most

importantly, in many cases the experience of visiting the retailer is an important

part of the purchase. Everything that the retailer can do to make the shopping

experience pleasurable and fun can help ensure that customers come back.

Retail Strategy Planning

Why Strategy?

To define the business idea and validate the same through:

• Market entry strategy

• Market positioning strategy

• New concept development

• Business feasibility analysis

For Whom?

Strategy planning service caters to the needs of:

• Entrepreneurial retail venture

• Organizations planning to foray into the retail arena

• Manufacturing companies with retail business ideas

• Existing traditional retail businesses trying to reinvent themselves


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How?

A series of activities are required to frame a strategy. These include:

• Management interviews

• Organization assessment

• Segment analysis

• Competitive performance analysis

• Customer research

• Capturing target segments ‘Share of Mind’

• Analysis of different format options

• Analysis of merchandise mix

• Analysis of various price points

• Rollout plan

• Business feasibility plan

Why Integrated Retail?

Integrated Retail carries out Strategy Planning based on the following strengths:

• Large team with over 200 man-years of retail operations and business

experience

• Successful implementation track record of similar projects

• Constantly updated repository of best business practices in retail from across

the world


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• Data bank of benchmark retail performance data

• Access to macro-economic data impacting overall retail and consumer

businesses.

Retail Summary Chart

Below us summarizes each retail format by using the seven categorization

characteristics. The characteristics identified for each format should be viewed as

the “most likely” case for that format and are not necessarily representative of all

retailers that fall into this format. For example, under distribution, clearly most

retailers today have an online presence, however, for many the predominant

distribution methods is still selling through retail stores. Format Target

Market

Products

Carried

Pricing

Strategy

Promotion

Emphasis

Distribution Service

Level

Ownership

Structure

Mom-and-Pop mass

specialty

general

specialty

competitive advertising

direct mail

stand-alone

strip center

shopping area

assorted individually o/o

Mass Discounter mass General discount advertising stand-alone

strip-center

self corp. chain

Warehouse Store mass General discount advertising stand-alone self corp. chain

Category Killer mass Specialty discount

competitive

advertising stand-alone

strip center

assorted corp. chain

Department Store specialty General competitive advertising shopping area

shopping mail

assorted corp. chain

Boutique speciatly

exclusive

Specialty full Selling stand-alone

strip center

shopping area

full individuallly o/o

chain

Catalog mass

specialty

general

specialty

discount

competitive

direct mail direct marketer assorted corp. structure

e-Retailer mass

specialty

general

specialty

discount

competitive

full

advertising online seller self corp. structure

Franchise mass Specialty competitive advertising stand-along

strip center

assorted contractual

Convenience mass General full advertising stand-alone self individually o/o

corp. chain

Vending mass Specialty full None vending self corp. structure


TABLE OF

It was only in late the 1980’s that organized retailing started

organized retailing industry was dominated by

Raymonds, Grasim, S kumars and Bombay Dyeing. With liberalization of Indian

economy in 1990 multi-national players like Nanz entered in Indian retailing

industry. Encouraged by the response to branded retail stores, Ind

set up retail chains like Viveks, Nilgiris and Cotton World. Now the retailing industry

is flooded with large stores, shopping malls and multiplexes. Shopper’s Stop,

Lifestyle, West Side, Pantaloons, Giant, Food World, Croosword and Big B

some of the big names in the organized retailing industry.

The retail customer of India in 21

Retail strategies need to be continuously assessed in view of changing

demographics and new buying p

households with working couples. Their children including

purchasing power. With emergence of call centers which employ young graduates,

many of them stay in cities away from parents

young has increased considerably. The increasing number of Indians working in

multinational companies, frequent trips abroad, and to a certain extent the media

have all played their part in increasing brand consciousness

equate brand with quality, prestige and status. Hence, retailers should strive to

maintain superior quality products and enhance their brand image and store image

to retain customer’s confidence and win their loyalty.

In India, the retailing industry is still in the growth phase, with lot of untapped

potential. Existing players are expanding their operation while new players are

entering the industry to tap the potential.

RETAILING INDUSTRY IN INDIA


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It was only in late the 1980’s that organized retailing started in India. Till 1990’s the

organized retailing industry was dominated by manufacturer-owned retail store like


national players like Nanz entered in Indian retailing

industry. Encouraged by the response to branded retail stores, Indian entrepreneurs



Lifestyle, West Side, Pantaloons, Giant, Food World, Croosword and Big B

some of the big names in the organized retailing industry.

The retail customer of India in 21st century is different from those in 1980’s & 90’s.

strategies need to be continuously assessed in view of changing

demographics and new buying patterns. There is an increase in the number of small

households with working couples. Their children including teenagers


many of them stay in cities away from parents. Thus, the purchasing power of the



have all played their part in increasing brand consciousness among customers.



to retain customer’s confidence and win their loyalty.

etailing industry is still in the growth phase, with lot of untapped


entering the industry to tap the potential.

RETAILING INDUSTRY IN INDIA


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in India. Till 1990’s the

owned retail store like


national players like Nanz entered in Indian retailing

ian entrepreneurs



Lifestyle, West Side, Pantaloons, Giant, Food World, Croosword and Big Bazaar are

century is different from those in 1980’s & 90’s.

strategies need to be continuously assessed in view of changing

atterns. There is an increase in the number of small

teenagers have high


, the purchasing power of the



among customers. They



etailing industry is still in the growth phase, with lot of untapped



TABLE OF

Specialist shopper research must be

environment, and to gain an understanding

behaviours and decisions in the store. “Global research spend allocated to

including the shopper, is between 15 and 20 per cent. In

cent of spend goes to retail, but it’s

Scamell-Katz, founder, TNS Magasin, and global director of TNS Retail and

The shopper retail/marketing industry is said to be

the FMCG categories), according to Michael Broughton, acting CEO of the

Goods Council of SA (CGCSA).The good news is that there is a lot of research

innovation taking place. “There are a greater number of store pilots and

shopper research going on. Retailers are waking up

insights. They are thinking about

brand director, Added Value.

owners are encouraged to start small and be very particular

research methodology used. “When

actually recommend that they begin by studying existing in

get their basics right, including supply chain and merchandising.

Once this has been achieved, they can start asking the more complex

around shopper insights,” says Stephen Mawby, managing

Management Consultants. He points to technology

which allows the marketer to

SHOPPER INTELLIGENCE


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Specialist shopper research must be carried out to make sense of the retail

environment, and to gain an understanding of what motivates the shopper’s

and decisions in the store. “Global research spend allocated to

including the shopper, is between 15 and 20 per cent. In South Africa only five per

cent of spend goes to retail, but it’s what everybody is talking about,” says Siemon

founder, TNS Magasin, and global director of TNS Retail and

The shopper retail/marketing industry is said to be worth R130 bn (and that’s just

according to Michael Broughton, acting CEO of the


taking place. “There are a greater number of store pilots and

shopper research going on. Retailers are waking up to it and they want category

insights. They are thinking about their competitors,” says Andrea Ellens, associate

director, Added Value. Shopper research can be a costly investment, so brand

ers are encouraged to start small and be very particular about the type of

research methodology used. “When companies don’t know what research to buy, we

recommend that they begin by studying existing in-store data and use it

ight, including supply chain and merchandising.

Once this has been achieved, they can start asking the more complex

around shopper insights,” says Stephen Mawby, managing director of Glendinning

Management Consultants. He points to technology and software available in the UK,

which allows the marketer to input sales data obtained from the retailer, and then

SHOPPER INTELLIGENCE


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sense of the retail

of what motivates the shopper’s

and decisions in the store. “Global research spend allocated to retail,

South Africa only five per

what everybody is talking about,” says Siemon

founder, TNS Magasin, and global director of TNS Retail and Shopper.

0 bn (and that’s just

according to Michael Broughton, acting CEO of the Consumer


taking place. “There are a greater number of store pilots and targeted

to it and they want category

their competitors,” says Andrea Ellens, associate

Shopper research can be a costly investment, so brand

about the type of

companies don’t know what research to buy, we

store data and use it to

Once this has been achieved, they can start asking the more complex questions

director of Glendinning

software available in the UK,

input sales data obtained from the retailer, and then


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slice it up and analyse it in many different ways to get a holistic understanding of

the performance of its brands. Locally, sales data is available, but there is a shortage

of standardised software or tech systems. Very important is that the research itself

be integrated into marketing strategy to address the business goals and problems of

a brand or store, and should be accompanied by both pre- and post-testing to

determine its effectiveness. Yet fewer than five per cent of brands globally are

confident that shopper research has been integrated into their strategies, according

to Peter Wilson, business manager: TNS Research Surveys Client Services. “I have

seen very little evidence of shopper research finding its way into retail trade by way

of a coherent shopper strategy,” says Marne Dirks, MD, Executrac. A lot of rich

shopper and activation insights never make it into the store, due to a lack of

execution capabilities.

“Research firms tend to complicate research feedback in this area and I have seen as

many as 18 shopper demographic profiles for one FMCG company in the same

channel, making it near impossible for a sales rep to execute a strategy,” says Dirks.

Classifications should be kept to a simple two to three shopper types per channel,

based on in-store observation.

It should also be kept in mind that a store owner is the best source of free

information about the shopper, category routes and pricing levers, so working more

closely with them will provide simpler, more cost-effective insights. Shopper

research: step by step Shopper research begins by understanding what happens

before the shopper enters the store. At this stage, the researcher is investigating the

brand equity pre-disposition (whether the shopper has a positive perception of the

brand, as created by previous consumption and advertising), as well the different

shopping missions that the shopper plans and their impact on in-store behaviour.

The next stage of shopper research investigates how the shopping mission has

motivated the choice of store, the behaviour in the store and the impact of different

marketing media and messages. As says Kristina Couzyn, director: Shopper

Marketing, Ogilvy, it’s overly simplistic to say that 70 per cent of decisions are made

at the point of sale without understanding what kinds of decisions are made.

The experience of the shopper both before and during the shopping process as well

as during consumption post-shopping will feed back into the pre-shop motivations,

and will inform future shopping missions and decisions.


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New technology

The use of technologies like infrared and radio frequency identification (RFID) have

not seen extensive rollout locally. “SA is essentially a follower in terms of

international technology developments. We do not anticipate much before 2011,”

says Broughton.

Coca-Cola SA, however, is reportedly using GPS trackers in trolleys to get maximum

exposure in-store by tailoring its execution standards by channel, geography and

shopper type. This allows Coca-Cola to ensure that the correct brand and pack mix is

available at the correct price and is communicated effectively in every outlet. “This

means moving away from a one-size fits all approach into a segmented approach

where the picture of success is altered for every outlet based on the variables. The

caveat, as always, is the capability of the sales and trade marketing folk to execute

against multiple pictures of success in various outlets,” says Dirks. The ultimate goal

will be for South African companies to manage day part marketing on this level.

Radio Frequency Identification

RFID tracking sees the trolley being fitted with a device which tracks its path

through the store, as well as registering where the shopper lingers and for how long.

This is helpful in identifying the store hot spots from the shopper’s perspective.

Infrared-assisted research

Infrared technology was used by Nielsen’s US offices in the PRISM project to provide

traffic counts for different parts of a store; this allows the store to be rated a

medium for marketing. However, the project has been shelved due to lack of funding

(Wal-Mart pulled out of the project in late 2008, according to reports on

www.adadge.com).

Video mining

In the US, technology that was developed by homeland security is being used to

‘watch’ video recordings of the shopper in action and anonymously record their

demographics, while also analysing which store elements the shopper engages with

(www.videomining.com). However, shopper privacy is an issue.


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Eye-tracking

Eye-tracking could be useful for understanding what the shopper sees in the store.

But researchers say that there is a disconnect between what the shopper looks at

and what that actually does for decision-making in the store. This form of

observation must be layered with other methodologies for better insights.

Marketing at Retail Initiative (MARI ) research

MARI research is endorsed by the Point of Purchase Association (POPAI), which has

been established locally (www.popai.co.za). The MARI research aims to measure

engagement with in-store media and marketing messages. A sample of shoppers is

fitted with a clipcam (surgical camera, attached to their glasses, or a dummy pair of

glasses). This camera records what the shopper sees, and which brands and

marketing messages they interact with, to determine what sort of marketing works

and where it is best situated in the store.

There are concerns, however, that the cameras will impact shopper behaviour and

will compromise the research.


brand sales. “If we review what is happening in the US and

pend within the retail marketing environment

ear,” says Elton Scheepers, commercial business

udgets shrinking, the trend is

campaigns, though not necessarily at the expense of

ver 60 per cent of shopper decisions being made in the outlet, this

tay. As always, when volume and

economic conditions, more knee

marketplace,” says Scheepers.

Marne Dirks, MD, Executrac, finds that to keep margins

focusing on making business processes more efficient and cutting costs, although it

seems to have only a limited impact. The only bright light on the horizon is

in fuel prices. Retailers are also under severe pressure to cut costs while

profit targets and retaining shopper loyalty. Reports

indicate that retailers had better than

off to a slow start. The bottom line is that this year will be tough. To maintain

profits, stores are going to have to work hard at creating the right shopping

environment; service delivery is key, and a simpler, more pleasant shopping

experience must be created.

CURRENT TRENDS AND CHALLENGES


P a g e | 33

The current economic recession is changing the

retail marketing environment in terms of an

increase in retail marketing spend even as

consumers tighten their purse strings and overall

marketing budgets shrink. This dichotomy has

about as the realisation of the ‘moment of truth’

drives more focus into the retail environment.

However, in light of the current economic climate,

there will need to be much more retail marketing

and shopper insight research carried out to push

“If we review what is happening in the US and use this as the base case,

marketing environment will continue to increase year

ear,” says Elton Scheepers, commercial business director, Todwil. With marketing

udgets shrinking, the trend is moving towards more tactical below

campaigns, though not necessarily at the expense of above-the-line branding. “With

shopper decisions being made in the outlet, this trend is here to

tay. As always, when volume and profitability come under threat from weak

conditions, more knee-jerk-type activities find their

marketplace,” says Scheepers. Manufacturers too, are trying to cut their costs.

Marne Dirks, MD, Executrac, finds that to keep margins intact, manufacturers are

business processes more efficient and cutting costs, although it

ve only a limited impact. The only bright light on the horizon is

Retailers are also under severe pressure to cut costs while

profit targets and retaining shopper loyalty. Reports (www.tradeintelligence.co.za)

retailers had better than expected December trade, but that January is

bottom line is that this year will be tough. To maintain

going to have to work hard at creating the right shopping

ivery is key, and a simpler, more pleasant shopping

CURRENT TRENDS AND CHALLENGES


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The current economic recession is changing the

retail marketing environment in terms of an

tail marketing spend even as

consumers tighten their purse strings and overall

marketing budgets shrink. This dichotomy has ome

about as the realisation of the ‘moment of truth’

drives more focus into the retail environment.

current economic climate,

there will need to be much more retail marketing

and shopper insight research carried out to push

use this as the base case,

will continue to increase year on

With marketing

moving towards more tactical below-the-line

ne branding. “With

trend is here to

profitability come under threat from weak

way into the

Manufacturers too, are trying to cut their costs.

intact, manufacturers are

business processes more efficient and cutting costs, although it

ve only a limited impact. The only bright light on the horizon is the drop

Retailers are also under severe pressure to cut costs while meeting

(www.tradeintelligence.co.za)

expected December trade, but that January is

bottom line is that this year will be tough. To maintain

going to have to work hard at creating the right shopping

ivery is key, and a simpler, more pleasant shopping


P a g e | 34

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Brands and retailers are going to have to work more closely together as a key

component in maintaining profits for both parties is to keep the shelves stocked

with the right brands, at the right price. All too often, shoppers are faced with empty

shelves and products missing for inordinate amounts of time, eroding loyalty and

confidence in product, brand and retailer. Stephen Mawby, managing director of

Glendinning Management Consultants, compares SA’s retail market to those of more

developed countries, where the average store product range is very complex, and all

aspects of the service and supply chain have been refined. Locally, he says, there are

still issues around supply, store range, store layout and so on; retailers need to drive

the research that exposes the weak spots and highlight new opportunities. As stores

try to achieve this, we may see continued focus on ready to eat, prepared meals, and

also on healthy or organic foods; however, pricing needs to be carefully considered

(even premium shoppers will be cutting back and looking for value).

Another result of the tightening of purse strings will see the loyalty of high-end

retail shoppers being eroded as they switch to mid-range.


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

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

The company registered a turnover of Rest 2,019 crore for FY 2007

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

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 hy

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 elect

and stationary), All (fashion apparel for plus

(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

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

Retailers in Asia by Retail Asia

COMPANY PROFILE


P a g e | 35



formats that cater to a wide cross-section of the Indian society and is able to capture



space, has over 331 stores across 40 cities in India and employs over 17,000

The company registered a turnover of Rest 2,019 crore for FY 2007-08


Zone, Fashion Station, Depot and many others.

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



retail, like choice, convenience and hygiene. Food Bazaar, food and grocery chain



Zone (consumer electronics), Depot (books, music, gifts

and stationary), All (fashion apparel for plus-size individuals), Shoe Factory


venture, futurebazaar.com.




Lee Cooper, Manipal Healthcare, Jaywalker’s, Gini & Jony and


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

08. Pantaloon Retail was selected as the Best of Best

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

COMPANY PROFILE


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and is able to capture



space, has over 331 stores across 40 cities in India and employs over 17,000 people.

08


modern retail in 1997 with the launching of fashion



giene. Food Bazaar, food and grocery chain



ronics), Depot (books, music, gifts

size individuals), Shoe Factory





Lee Cooper, Manipal Healthcare, Jaywalker’s, Gini & Jony and


a turnover of Rs 2,018 crores for

08. Pantaloon Retail was selected as the Best of Best


P a g e | 36

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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.


P a g e | 37

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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.

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.


P a g e | 38

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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 Lucknow Kanpur Mangalore Mumbai Nagpur Nasik Panipat

Pune Rajkot Ranchi 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.

Big Bazaar is Indian personification of retail. It’s like an Indian bazaar or mandi or

mela, the environment created by traders to give shoppers a sense of moment. Its

personality is of being an entity away from fancy or pretty and being authentically

"no-frills". Kishore Biyani never hired any foreign consultant for Big Bazaar which is

evident from Indian-specific personality of the brand. The brand’s personality is

self-explanatory by its tag-line only. This statement places Big Bazaar at the top of

customer’s mind. It reflects that entrepreneurship and simplicity are the essence of

character of Big Bazaar. To use predatory pricing is not in the personality of Big

Bazaar, they never sell goods below the price they have purchased it. Big Bazaar, the

"Indian Wal-Mart", is the modern Indian family's favorite store. Big Bazaar

symbolizes modern retail, the business which isn’t looked up to in our country, is

now in the eyes of many multi-national biggies. Big Bazaar has shown a robust

growth in recent years.

We have a store opening virtually every fortnight; I have lost count now of how many I have opened."

- Kishore Biyani


TABLE OF

Big Bazaar has established itself in the first quadrant of Organization

Customer Value Matrix. The SWOT Analysis

elaborates the core competencies and areas of improvement. The key features that

have shaped in establishing of brand includes:

• Big Bazaar ensures that no other kirana store / departmental store are offering

considerable discount compared to its own price. This helped Big Bazaar in being

the "value for money" store.

• Big Bazaar scores high on product mix as compared to kirana store.

• Cheap and local products are heavily stocked in Big Bazaar which make it easier

attract lower middle class category of customers.

• Promotion of kirana is rare event but Big Bazaar used this channel efficiently to

establish itself as national brand.

• Customer loyalty resulting in high up sell, i.e., selling to existing custom

• Big Bazaar refrains from high

budget and provides competitive advantage over competitors. Kishore Biyani has

taken "early movers advantage" in many retail spaces.

BIG BAZAAR : Positioning & Establishment


P a g e | 39

Big Bazaar has established itself in the first quadrant of Organization

Customer Value Matrix. The SWOT Analysis of current strategy of Big Bazaar


have shaped in establishing of brand includes: -


able discount compared to its own price. This helped Big Bazaar in being

the "value for money" store.


• Cheap and local products are heavily stocked in Big Bazaar which make it easier

attract lower middle class category of customers.


establish itself as national brand.

• Customer loyalty resulting in high up sell, i.e., selling to existing custom

• Big Bazaar refrains from high-end locations for business which reduces its rental


taken "early movers advantage" in many retail spaces.

BIG BAZAAR : Positioning & Establishment


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Big Bazaar has established itself in the first quadrant of Organization Value and

of current strategy of Big Bazaar



able discount compared to its own price. This helped Big Bazaar in being


• Cheap and local products are heavily stocked in Big Bazaar which make it easier to


• Customer loyalty resulting in high up sell, i.e., selling to existing customers.

end locations for business which reduces its rental



TABLE OF

7P Analysis of Big Bazaar

7P Marketing Mix is more useful for services industries and knowledge intensive

industries. Successful marketing depends on number of key issues. The seven keys

issues are explained as: -

Product

Big Bazaar offers a wide range of products which

products, furniture, child care, toys, etc.

available at Big Bazaar. Also, there are many in house brands promoted by Big

Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD

microwave-ovens. In all, the fashion, electronics and travel segments made up about

70% of sales. Last year, these categories made up only about 60%.

Price

The tag-line is "Is se sasta aur accha aur kahin nahi". They work on the model of

economics of scale. There pricing objective is to get "Maximum Market Share". The

various techniques used at Big Bazaar are:

• Value Pricing (EDLP - Every Day Low Pricing): Big Bazaar promises consumers

the lowest available price without coupon clipping

or comparison shopping.

• Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept

of psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big

Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga

Pooja).

• Differentiated Pricing: Time pricing, i.e., difference in rate based on peak and non

peak hours or days of shopping is also a pricing technique used in Indian retail,

which is aggressively used by Big Bazaar.

BIG BAZAAR : 7 P's Analysis


P a g e | 40



Big Bazaar offers a wide range of products which range from apparels, food, farm

ld care, toys, etc. Products of all the major brands are

. Also, there are many in house brands promoted by Big

Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD-players and 25,000

ovens. In all, the fashion, electronics and travel segments made up about

70% of sales. Last year, these categories made up only about 60%.

line is "Is se sasta aur accha aur kahin nahi". They work on the model of


various techniques used at Big Bazaar are: -

Every Day Low Pricing): Big Bazaar promises consumers

the lowest available price without coupon clipping, waiting for discount promotions,



cial Event Pricing (Close to Diwali, Gudi Padva, and Durga

• Differentiated Pricing: Time pricing, i.e., difference in rate based on peak and non


which is aggressively used by Big Bazaar.

BIG BAZAAR : 7 P's Analysis


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range from apparels, food, farm

Products of all the major brands are

. Also, there are many in house brands promoted by Big

layers and 25,000

ovens. In all, the fashion, electronics and travel segments made up about

line is "Is se sasta aur accha aur kahin nahi". They work on the model of


Every Day Low Pricing): Big Bazaar promises consumers

, waiting for discount promotions,



cial Event Pricing (Close to Diwali, Gudi Padva, and Durga

• Differentiated Pricing: Time pricing, i.e., difference in rate based on peak and non-



P a g e | 41

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• Bundling: Selling combo-packs and offering discount to customers. The combo-

packs add value to customer.

Place

• Big Bazaar stores are located in 50 cities with 75 outlets. Big Bazaar has presence

in almost all the major Indian cities. They are aggressive on their expansion plans.

Promotion

Big Bazaar started many new and innovative cross-sell and up-sell strategies in

Indian retail market. The various promotion techniques used at Big Bazaar include

"saal ke sabse saste teen din", Future Card (the card offers 3% discount), Shakti

Card,

Brand Endorsement by M. S. Dhoni, Exchange Offer - ‘Junk Swap Offer’, Point-of-

Purchase Promotions.

Advertising has played a crucial role in building of the brand. Big Bazaar

advertisements are seen in print media, TV, Radio (FM) and road-side bill-boards.

People

They are one of the key assets for any organization. The salient features of staff of

Big Bazaar are: -

• Well-trained staff, the staff employed by Big-Bazaar are well-suited for modern

retail.

• Well-dressed staff improves the overall appearance of store.

• Employees are motivated to think out-of-the-box. Retail sector is in growth stage,

so staff is empowered to take innovative steps.

• Employs close to 10,000 people and recruits nearly 500 people every month.

• Use of technology like scenario planning for decision making.

• Multiple counters for payment, staff at store to keep baggage and security guards

at every gate, makes for a customer-friendly atmosphere.


Process

The goods' dispatch and purchasing area has certain salient features which

-

• Multiple counters with trolleys to carry the items purchased.

• Proper display / posters of the place like (DAL, SOAP, etc.).

• Home delivery counters also started at many places.

Physical Evidence

It deals with the final deliverable or

current system and available facilities

TABLE OF

M.G. ROAD RANCHI

This store is of 5 floor and divided into 5

There are 47 departments in this store and 534

As this store is big enough with 5 levels and 47

and product depth. Ones a customer get inside the store he will find all kinds of

products available that may be

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.


P a g e | 42

The goods' dispatch and purchasing area has certain salient features which

• Multiple counters with trolleys to carry the items purchased.

• Proper display / posters of the place like (DAL, SOAP, etc.).

• Home delivery counters also started at many places.

It deals with the final deliverable or the display of written facts. This includes the

current system and available facilities.

BIG BAZAAR

NEAR RANCHI CLUB

M.G. ROAD RANCHI - 834001

5 floor and divided into 5 levels based on the nature of products.

epartments in this store and 534 Human Resource employed.

this store is big enough with 5 levels and 47 departments has long product range


products available that may be Food item, Cosmetic, Electronic, Garments, Furniture


who are residing far away and in other areas they also visit the store.

STUDY STORE


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The goods' dispatch and purchasing area has certain salient features which include:

the display of written facts. This includes the

nature of products.

Human Resource employed.

departments has long product range


Food item, Cosmetic, Electronic, Garments, Furniture



TABLE OF

STUDY STORE : Organisational Structure

Marketing

Manager

Marketing Head

HR Manager

HR Head


P a g e | 43

STUDY STORE : Organisational Structure

President

HR Manager Finance Manager

Finance Head

Category

Manager

Category Head Store Manager

Asst Store

Manager

Dept Manager

Human Resource

manger

Asst. HR

Administration

Cashing

Customer

Service Desk

Vice - President


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Operation Head

Store Manager

Department

Manager

Visual

Merchandise

Information

Technology

Marketing


TABLE OF

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 ado

For this project the area of research is M.G Road.

TABLE OF

To know the effective Marketing S

product of Big Bazaar in comparison to other retail company.

TABLE OF

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

Primary data has been used abundantly for the study. Well

questionnaires were prepared & the survey was undertaken. Feedback for the

display has been taken by aski

primary information.

There is also a use of secondary data, collected from the various journals, books, and

websites & from company managers.

RESEARCH METHODOLOGY

OBJECTIVE OF THE THESIS

DATA COLLECTION METHOD


P a g e | 44




objectives were set and to arrive at the opinion on objectives a



Convenient sampling method was adopted

t the area of research is M.G Road.

o know the effective Marketing Strategy which influence customer to p

product of Big Bazaar in comparison to other retail company.


Primary data has been used abundantly for the study. Well


display has been taken by asking questions & observation has also done to gather


websites & from company managers.

RESEARCH METHODOLOGY

OBJECTIVE OF THE THESIS

DATA COLLECTION METHOD


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objectives were set and to arrive at the opinion on objectives a



trategy which influence customer to purchase a


Primary data has been used abundantly for the study. Well-structured


ng questions & observation has also done to gather



• Primary data

• Secondary data

• Area of research

• Research approach

TABLE OF

Since the study is restricted to Retail sector, all the functional Departments of Big

Bazaar and the respondents

convenience randomly they are being picked so sampling method is used in this

study is Random Convenient Sampling.

Sample size : 100 respondents

Sampling Method : Random Convenience sampling

Sample Unit : Customer of Big bazaar

Measuring Tool : Questionnaire

SAMPLING METHOD


P a g e | 45

: Field Survey

: Big Bazaar records

Text Books and journals

Company Websites

: M.G. ROAD

: Survey method


Bazaar and the respondents are found at the store only so according to the


study is Random Convenient Sampling.

100 respondents

Random Convenience sampling

Customer of Big bazaar

Questionnaire

SAMPLING METHOD


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Text Books and journals


are found at the store only so according to the



TABLE OF

Q No 1: Which store first comes to your mind when you think of purchasing a

product?

RESPONSE NO OF RESPONDENTS

Big bazaar 77

Vishal Mega Mart 15

Others retailer 8

Total 100

ANALYSIS & INTERPRETATION

77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Big bazaar Vishal mega mart


P a g e | 46


NO OF RESPONDENTS PERCENTAGE

77 77%

15 15%

8%

100 100%

ANALYSIS & INTERPRETATION

15%8%

Vishal mega mart Others retailer

Series1


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0%

5%

10%

15%

20%

25%

30%

35%

23%

34%

ANALYSIS:

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

Bazaar 15% of them gave

other retailer .

INTERPRETATION

Most of the customers are given 1st preference to Big Bazaar compare to other

retailers

Q No 2: From which source did you come to know about Big Bazaar outlet.

RESPONSE NO O

T .V Advertisement 23

Hoardings 34

News paper 31

Buspaintings 12

Total 100


P a g e | 47

34%31%

12%

Series1


Bazaar 15% of them gave preference to Vishal Mega Mart and 8% were gave to



NO OF RESPONDENT PERCENTAGE

23 23%

34 34%

31 31%

12 12%

100 100%


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Series1


preference to Vishal Mega Mart and 8% were gave to




P a g e | 48

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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.

Q No 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%

87%

13%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes No

Series1


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.

Q No 4: Please choose below the factor which attracted you most at the Big Bazaar.

Rates

Offer

Service

Quality

Availability of products

Total

0%

10%

20%

30%

40%

50%

60%

Offer

51%


P a g e | 49


13% told they have told that they are not aware.


Please choose below the factor which attracted you most at the Big Bazaar.

No of respondents percentage

51 51%

9 9%

23 23%

Availability of products 17 17%

100 100%

Service Quality Availability

of products

9%

23%

17%Series1


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Please choose below the factor which attracted you most at the Big Bazaar.

percentage

Series1


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 of

offer is the most influencing factor among those.

Q No 5: Which of the following factors influence in your purchase decision?

Rates

Offer

Service

Quality

Effective advertisement

Total

0%5%

10%15%20%25%30%35%40%45%

43%


P a g e | 50


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


Most of the people attracted towards big bazaar only for the promotional of

offer is the most influencing factor among those.

Which of the following factors influence in your purchase decision?

No of respondents percentage

43 43%

11 11%

21 21%

Effective advertisement 25 25%

100 100%

11%

21%25%

Series1


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


Most of the people attracted towards big bazaar only for the promotional offers. So

Which of the following factors influence in your purchase decision?

percentage

Series1


ANALYSIS:

Among 100 respondent 43 of them told that offer is responsible for their purchase

decision and 9 of them told that serv

of them told that effective advertisement

INTERPRETATION:

Among those factor offer is the emerging factor which is responsible for purchase

decision of buyers

Q No 6: Do you think the promotional activity of Big Baza

message?

Response

Yes

No

Total

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.

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes

77%


P a g e | 51


decision and 9 of them told that service and 23 of them told that quality

of them told that effective advertisement


Do you think the promotional activity of Big Bazaar gives you clear

No of respondents Percentage

77 77%

23 23%

100 100%


gives clear message and 23 of them told that they do not understood.

No

77%

23%

Series1


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ice and 23 of them told that quality and only 25


ar gives you clear

Percentage


Series1


INTEPRETATION:

Most of the people highly agree that promotional a

message

Q No: Will you advise anybody to visit Big Bazaar in your future shopping

Response

Yes

No

Total

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

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes

98%


P a g e | 52

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

Will you advise anybody to visit Big Bazaar in your future shopping


98 98%

2 2%

100 100%



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

No

2%

Series1


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ctivity of big bazaar gives clear

Will you advise anybody to visit Big Bazaar in your future shopping?

Percentage



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


Q No: Looking at the promotions of Big Bazaar does your purchase pattern

changes?

Response

Yes

No

Total

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.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1

83%


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the promotions of Big Bazaar does your purchase pattern


83 83%

17 17%

100 100%


purchase pattern and only 17 of them told do not change.

ed that promotions is responsible for their purchase

2

17%

Series1


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the promotions of Big Bazaar does your purchase pattern

Percentage


ed that promotions is responsible for their purchase


Q No 9: Would you like to make your purchase under unexpected offers?

Response

Yes

No

Total

ANALYSIS:

Among 100 respondents 94 of

unexpected offers and only 6 of them told tha

INTERPRETATION:

Most of the customer interested to buy under unexpected offers only.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes

94%


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ould you like to make your purchase under unexpected offers?


94 94%

6 6%

100 100%

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.

Most of the customer interested to buy under unexpected offers only.

No

6%

Series1


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ould you like to make your purchase under unexpected offers?

Percentage

are interested to buy products under


TABLE OF

• From the sample size of 100 samples it is found thapositioned in the minds of customers because 77preference is Big Bazaar for their shopping.

• Among 100 respondents, through T V advertisement and 3431% of them told that tagree that through bus

• Among the 100 respondents, promotional activities of big bazaar .only 13aware of promotional activity of big bazaar

• Among the 100 respondent 51big bazaar only for the offetold that quality and only 17products

• Among 100 respondent 43factor influencing purchase decision and only 1121% of told that quality and finally 25advertisement is responsible for the purchase decision.

• Among 100 respondent 77bazaar gives clear messageunderstood.

• Among 100 respondent 98% of people shopping and only 2% of them not

• Among 100 respondent 83their purchase pattern and only 17

• Among 100 respondent 94% of them told thatproducts under unexpected offers and 6% of told that they do not buy.

SURVEY FINDINGS


P a g e | 55

From the sample size of 100 samples it is found that the Brand is well he 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 V advertisement and 34% of people told that through hoardings

% of them told that through news paper and finally 12% of theagree that through bus painting.

Among the 100 respondents, 87% of them told that they are ctivities of big bazaar .only 13% of them told that they are

aware of promotional activity of big bazaar .

Among the 100 respondent 51% of them told that they are attracted towards ig bazaar only for the offers 9% of them told that service and 23

told that quality and only 17% of them told that due to availability of

Among 100 respondent 43% of them agree that offers is the most emerging ing purchase decision and only 11% of them told

told that quality and finally 25% of them told that effective advertisement is responsible for the purchase decision.

100 respondent 77% of them told that promotional activities of big message and 23% of them told that they did not

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 eir 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.

SURVEY FINDINGS


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t the Brand is well % of the respondent’s

they came to know through hoardings % of them highly

they are aware of hat they are not

% of them told that they are attracted towards and 23% of them

that due to availability of

% of them agree that offers is the most emerging % of them told that service

% of them told that effective

% of them told that promotional activities of big % of them told that they did not

advise others in future

promotions of big bazaar changes % told that does not changes.

they are interested to buy products under unexpected offers and 6% of told that they do not buy.


TABLE OF

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’

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 changin

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 promo

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 pl

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 al

has high influence on the customer walk


P a g e | 56



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



items less than one roof at low rates.

The consumer’s preferences are changing & they are moving from Traditional



more customers companies have to carry out the promotional activities in unique



it says ‘Nobody Sells Cheaper and Better!’ is made its place in minds of customer. As



sales Promotions is one of the leading activity or unique among all other activities &

has high influence on the customer walk-in.

CONCLUSION


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in an upcoming



g & they are moving from Traditional



tional activities in unique



ace in minds of customer. As



l other activities &


TABLE OF

• Buyer Behavior: http://buyerbehaviour.blogspot.com/2008/01/big

freedom-sale-change-

• Indian Retail Scenario:

retail-2008-big-bazaar

• Wikipedia: www.wikipedia.org

• "IT Happened in India" by Kishore Biyani

• "From Brand Vision to Brand Evaluation: The Strategic Process of Grow

and Strengthening Brands" by Leslie de Chernatony

• Kunde Model: http://www.kunde

• Economic Times: www.economicstimes.com

• Marketing Management: Philip Kotler

• Advertising and Sales: Promotion Belch and Belch

• Retail Management: Bajaj and Srivastav

• Research Methodology: Cooper and Schindler


P a g e | 57

http://buyerbehaviour.blogspot.com/2008/01/big

-in.html

Indian Retail Scenario: http://www.slideshare.net/theRedIndian/india

bazaar-scenario/

Wikipedia: www.wikipedia.org

"IT Happened in India" by Kishore Biyani

"From Brand Vision to Brand Evaluation: The Strategic Process of Grow

and Strengthening Brands" by Leslie de Chernatony

Kunde Model: http://www.kunde-co.com/Default.aspx?ID=325

www.economicstimes.com

Marketing Management: Philip Kotler

Advertising and Sales: Promotion Belch and Belch

Retail Management: Bajaj and Srivastav

Research Methodology: Cooper and Schindler

BIBLIOGRAPHY


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http://buyerbehaviour.blogspot.com/2008/01/big-bazaar-

http://www.slideshare.net/theRedIndian/india-

"From Brand Vision to Brand Evaluation: The Strategic Process of Growing

co.com/Default.aspx?ID=325

management thesis mba

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