my big bazaar on customer retention1 (autosaved)_1453039520139_1453183299001

7/25/2019 My Big Bazaar on Customer Retention1 (Autosaved)_1453039520139_1453183299001

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Acknowledgement

An undertaking of work life - this is never an outcome of a single person; rather it bears

the imprints of a number of people who directly or indirectly helped me in completing the

present study. I would be failing in my duties if I don't say a word of thanks to all those who

made my training period educative and pleasurable one. I am thankful to Big Bazaar,

Vishakhapatnam for giving me an opportunity to do the internship in the company.

First of all, I am etremely grateful to Mr. Tarun Saha !"tore #artha$ for his guidance,

encouragement and tutelage during the course of the internship despite his etremely busy

schedule. %y very special thanks to him for giving me the opportunity to do this pro&ect and

for his support throughout as a mentor.

I must also thank my faculty guide Lect. Popitha Moharana!Faculty, Aditya degree

(.) *ollege$ for his continuous support, mellow criticism and able directional guidance

during the pro&ect.

I would also like to thank all the respondents for giving their precious time and relevant

information and eperience, I re+uired, without which the (ro&ect would have been

incomplete.

Finally I would like to thank all lecturers, friends and my family for their kind support

and to all who have directly or indirectly helped me in preparing this pro&ect report. And at

last I am thankful to all divine light and my parents, who kept my motivation and est for

knowledge always high through the tides of time.

M. Shyam Sundar Gana Sai


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1.1 IT!"#$%TI"

Future )roup understands the soul of Indian consumers. As one of Indias retail pioneers

with multiple retail formats, Future )roup connects a diverse and passionate community of

Indian buyers, sellers and businesses. he collective impact on business is staggering. Around

/00 million customers walk into the stores each year and choose products and services

supplied by Future )roup's /0,000 small, medium and large entrepreneurs and manufacturers

from across India. And this number is set to grow.

Future )roup employs /0,000 people directly from every section of our society. hey

source their supplies from enterprises across the country, creating fresh employment,

impacting livelihoods, empowering local communities and fostering mutual growth.Future )roup believes in the 1Indian dream and has aligned our business practices to

their larger ob&ective of being a premier catalyst in Indias consumption-led growth story.

2orking towards this end, Future )roup are ushering positive socio-economic changes in

communities to help the Indian dream fly high and the 1"one #i *hidiya soar once again.

his approach remains embedded in Future )roup's ethos even as they rapidly epand their

footprints deeper into India.

Future )roup makes every effort to delight its customers, tailoring store formats to

changing Indian lifestyles and adapting products and services to their desires. Future )roup

operates some of Indias most popular retail formats. Across value and lifestyle segments,

Future )roup's multi-format retail strategy caters to the complete consumption needs of a

wide cross-section of Indian consumers.

As modern retail drives fresh demand and consumption in new categories, Future

)roup's strategy is based on a deep understanding of Indian consumers, the products they

want, and making these products available in every city, in every store format.


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Various !etai& 'ormat

Future group offers innovative offerings at affordable prices tailored to the needs of every

Indian 3ouse hold.

#IGIT(L

%onnecting the )outh o* India

LI'+ST)L+

Sty&e *or +ery "ccasion

-"M+

Bui&ding #reams in a e India

V(L$+

-e&ping India Sae


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(ioneers in the Indias retail space, Future )roup's formats are household names in

more than 4/ cities and 50 rural locations across the country

Future )roup's stores cover around 67 million s+uare feet of retail space and attract

around /00 million customers each year

(antaloons 8etail !India$ 9imited focuses on the lifestyle retail segment led by the

(antaloons and *entral formats

Future :alue 8etail focuses on the value retail segment through the ig aaar, Food

aaar and #s Fair price formats.

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Type Priate

Industry !etai&

'ounder3s4 Mr. /ishore Biyani3M# 2 %+"4

-ead5uarters Mum6ai, Maharashtra, India

Products #iscount, groceryand conenience stores, cash and

carry, hypermarkets, *inancia& serices

+mp&oyees 78,999

#iisions Panta&oon !etai&, 'uture Va&ue !etai& Limited

0e6sites .*uturegroup.in

.*uture6azaar.com

'uture Group in Brie*

'ounder Board

/ishore Biyani

Group %+", 'uture Group
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Kishore_Biyanihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Discount_storehttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/Cash_and_carry_(wholesale)http://en.wikipedia.org/wiki/Cash_and_carry_(wholesale)http://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Division_(business)http://www.futuregroup.in/http://www.futurebazaar.com/http://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Kishore_Biyanihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Discount_storehttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/Cash_and_carry_(wholesale)http://en.wikipedia.org/wiki/Cash_and_carry_(wholesale)http://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Division_(business)http://www.futuregroup.in/http://www.futurebazaar.com/http://en.wikipedia.org/wiki/Types_of_business_entity


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!akesh Biyani

#irector, 'uture Group

Vi:ay Biyani


(ni& Biyani


Suni& Biyani


'uture Group


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FUTUREGROUP

3 B MODELMANAGEMENT

VALUES/FUTURE GROUP

GENE

LEARNINGMETHOLOGY

STANDARDOPERATINGPROCESS

(SOP)

VISHWASBELIEF VYAVHARBEHAVIO

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OURBELIEF

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7B Mode& o* Management


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Mission and ision

VISI" ;


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shopping channels, and an increasingly well-informed and mobile consumer base are altering

the means, modes, and manner in which consumers shop.

-IST"!I+S (# +V"L$TI" "' !+T(IL I#$ST!);

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

and contributing to over 60B of the country's )C(. 8etail industry in India is epected to rise

DEB yearly being driven by strong income growth, changing lifestyles, and favourable

demographic patterns.

It is epected that by D065 modern retail industry in India will be worth "G 67E- D00

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

D007 to amount "G /D0 billion and is increasing at a rate of EB yearly. A further increase of7-B is epected in the industry of retail in India by growth in consumerism in urban areas,

rising incomes, and a steep rise in rural consumption. It has further been predicted that the

retailing industry in India will amount to "G DD.E billion by D06E from the current sie of

"G 6.E billion. "hopping in India has witnessed a revolution with the change in the

consumer buying behaviour and the whole format of shopping also altering. Industry of retail

in India which has become modern can be seen from the fact that there are multi- stored

malls, huge shopping centres, and sprawling complees which offer food, shopping, and

entertainment all under the same roof.

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

real estate is being created. Indian retailers preferred means of epansion is to epand to other

regions and to increase the number of their outlets in a city. It is epected that by D06E, India

may have 500 new shopping centres.

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

rate of 4B annually. he branded food industry is trying to enter the India retail industry and

convert Indian consumers to branded food. "ince at present 50B of the Indian grocery basket

consists of non- branded items.

India retail industry is progressing well and for this to continue retailers as well as the

Indian government will have to make a combined effort.

!+T(IL I I#I(; -IST"!I%(L P+!SP+%TIV+

8etailing provides a crucial link between producers and consumers in a modern market

economy. he performance of this sector has a strong influence on consumer welfare.


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8etailers not only provide consumers with a wide variety of products, but also a wide range

of complementary services !such as assurance of product delivery$, which can lead to more

informed choice and greater convenience in shopping. hey also provide producers with

much needed information on consumers demand pattern. (roductivity and efficiency in retail

operations lowers price level and reduce distortions in the price structure. hrough backward

and forward linkage, performance of retailing services affects the performance of interlinked

sectors such as tourism, recreational and cultural services, manufacturing of consumers goods

agro-good producing industries etc.

he present paper is an attempt to eplore retailing in India in 3istorical perspective.

8etailing is the largest private industry in India and second largest employer after agriculture.

he sector contributes to around 60 per cent of )C( and 5-7 per cent of employment. 2ith

over 6E million retail outlets, India has the highest retail outlet density in the world. his

sector witnessed significant development in the past 6E years ? from small-unorganied

family-owned retail formats to organied retailing. 9iberaliation of the economy, rise in per

capita income and growing consumerism has encourage larger business houses and

manufactures to set up retail formats; real estate companies and venture capitalist are

investing in retail infrastructure. %any foreign retailers have also entered the market through

different routes such as wholesale cash-and-carry, local manufacturing, franchising, testmarketing, etc. 2ith the growth in organied retailing, unorganied retailers are fast changing

their business models and implementing new technologies and modern accounting practices

to face competition. he retailing sector in India has undergone significant transformation in

the past 60 years. raditionally, Indian retail sector has been characteried by the presence of

a large number of small-unorganied retailers. 3owever, in the past decade there has been

development of organied retailing, which has encouraged large private sector player to

invest in this sector. %any foreign players have also entered India through different routessuch as test marketing, franchising, and wholesale cash-and-carry operation. 2ith high )C(

growth, increased consumerism and liberaliation of the manufacturing sector, India is being

portrayed as an attractive destination for foreign direct investment !FCI$ in retailing. At

present this is one of the few sectors, which has E6B FCI in multi-brand retail sector 600B

FCI in single brand. =n one hand farmers will benefit from it but on the other hand small

traders feel they will not be able to withstand the competition.

In India, the retail sector is the

D

nd

largest employers after agriculture. In fact due to wide network of retailing in India it is

known as nation of shopkeepers. here are about 6D millions retail outlet spread across India


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and the country has the highest density of shops in the world i.e. one shop for every D0 to DE

families or 66 retail shop for every 6000 persons. 2hile, it is only four shops per 6000 in

"A. 8etailing in India provides employment to about 7B of total work force in the country

and contributes about 6HB to )C( of India. 3owever the retailing sector in India is highly

fragmented and consists predominantly of small, independent and owner managed shop.

he )lobal 8etail Cevelopment Inde developed by A. #earney has ranked India first

among the top /0 emerging markets in the world. A look at the landscape of most of the cities

in India shows the rapid phase of change. his changes in reflection of the changes in the

Indian consumers his lifestyle and his habits. )oldman "achs has estimated that the Indian

economic growth could actually eceed that of *hina by year D06E. It is believed that the

country has the potential to deliver the fast growth over the net E0 years. It took 60 years for

the first DE00 organied retail stores to emerge in India; the net DE00 could easily get added

in the net E years. Formats new to the India market place have emerged rapidly over the past

ten years. here is little doubt that retail in India is revelling up for an eciting phase ahead.

+V"L$TI" "' !+T(IL I I#I(;

he origins of retail are old as trade itself. arter was the oldest form of trade. For centuries,

most merchandise was sold in market place or by peddlers. %edieval markets were dependent

on local sources for supplies of perishable food because ourney was far too slow to allow for

long distance transportation. 3owever, customer did travel considerable distance for specialty

items. he peddler, who provided people with the basic goods and necessities that they could

not be self sufficient in, followed one of the earliest forms of retail trade. @ven in prehistoric

time, the peddler travelled long distances to bring products to locations, which were in short

supply. hey could be termed as early entrepreneurs who saw the opportunity in serving the

needs of the consumers at a profit.

9ater retailers opened small shops, stocking them with

such produce. As towns and cities grew, these retail stores began stocking a mi of

convenience merchandise, enabling the formation of high-street baaars that become the hub

retail activity in every city.

T!(#ITI"(L !+T(IL '"!M(T I I#I(;

It is important that for centuries now, India has been operating within her uni+ue concept

of retailing. 8etailing in its initial period was witnessed at the weekly 3aats or )athering in a


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market place where vendors put on displays their produce. =ff course this practice is still

prevalent in many towns and cities in India> then the market saw the emergence of the 9ocal

banias and his neighbourhood #irana shop. In fact these were the common local mummy-

daddy or multipurpose departmental store located in the residential areas such shops stocked

goods and multipurpose utility and were with the vision of providing convenience at the

doorstep of the consumer.

2hile barter would be considered to be the oldest form of retail trade, since

Independence, retail in India has evolved to support the uni+ue needs of our country, given its

sie and compleity. 3aats, mandis and melas have been a part of India landscape. hey will

continue to be present in most part of the country and form an essential part of life and trade

in various areas.

+M+!G+%+ "' "!G(IS+# !+T(IL I I#I(;

he emergence of first phase of organied retailing in India can be traced back when a

shopping centre into eistence in the year 654 with %umbai *rawford %arket. After that, in

the year 67H 3ogg market, popularly and better known as new market came into eistence

in #olkata. his shopping centre was designed by an @ast Indian 8ailways *o. Architect 8.8.

anya and was named after the then municipal commissioner of #olkata, "ir "tuart 3ogg.

@arlier the 3ogg market even had a garden with a beautiful fountain adding to its ambience

and benches too for tired shoppers.

oday, the Jew %arket continues to be a premier shopping area in #olkata despite a part

of it being incinerated in late 64E. Its redbrick )othic clock tower today bears testimony to

the past )randeur of this first shopping centre in India. oday from linen to cakes and fruits

to fishes everything is available at the Jew %arket Atta reasonable price and this has made

the Jew %arket sustain its popularity among the metro customers of #olkata. he tenant mi

of this first shopping centre is uni+ue as it has a large number of D000 stalls, which are

organied in an order of merchandie. here are rows of stalls dealing with one particular line

of )oods.

A retail researcher by name *hristine Furedy in 70s has observed in her article in the

capital on DHth

Cec. 6474 tracing the emergence of the Jew %arket, thus Khe most comple

retail business of late nineteenth century #olkata, establishment which were to dominate the


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modern retail sector, were the departmental stores. Although everyone has closed its doors,

many *alcuttians still remember the name or recognie their converted, subdivided building>

Francis, 3arrison and 3athaway; 3all and Anderson; the Army and Javy stores; white a way;

laid low and *o. In their scope and outreach these shops rivalled those to be found in cities of

the same sie in ritain, @urope or the nited "tates


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EMERGING

MORDERNKIOSKS

CONVINIENCESTORES

DEPARTMENTA

L STORES

CHAIN

STORES

FRANCHISE

SPECIALITYSTORES

SHOPPINGMALL/PLAZA

ESTABLISHED

KIOSK

KIRANASHOPS

INDEPENDENTSTORES

CO-

OPERATIVE

TRADITIONAL

ITENEREANT

SALESMAN

HATS

*rossroad, "aga and "hoppers stop are concentrating on the upper segment and selling

products at higher prices, some like A.: irla 8etails More, 8()s Spencer=s, Food 2orld

and ig aaars are tapping the huge middle class population. Curing the past two years,

there has been tremendous amount of Interest in the Indian retail trade from global ma&ors as

well as over the years, International brands like %cConalds, "warovski, 9acoste, Cominos,

(epsi, enetton among a host of others have come in and thrived in India.

!+T(IL '"!M(TS I I#I(;

In India, at present, retailing activities are being carried through wide varieties of formats

ranging from 1pheri wala in streets to %odernied %alls in %etro cities. 3owever from study

point of view these formats can easily classified into following three )roups.

'ormats o* !etai&ing

(4 T!(#ITI"(L '"!M(TS ;


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1. ITI+!(T S(L+SM(;It is a type of direct selling, which stated centuries

ago. It is an eample of door-to-door office-to-office delivery or marketing. %orning milk

man and sab&i wala are the most famous eamples of this category. his type of format

has been very popular throughout India in coping with daily needs. In rural areas thissales man use cycles, for carrying their stock for display of )oods.

>. -((TS ;3aats are the uni+ue eamples of traditional malls in India. ust like

%alls, different sellers sells different types of items along with the sale of vegetables,

fruits, sweets, chart etc. "ome entertainment arrangements are also made in available in

these haats. here was tendency in rural as well as semi-urban area in India for visiting

these haats with family members as a part of picnic cum purchasing programs. In fact

3aats are periodic markets !generally organied once in week or fortnight at a particular

place time$ that form a ma&or part of the rural market system in India. In other words

the term 3aats refers to locations, which witness a public gathering of buyers and sellers

at fied time, and fied locations. =n account of organiation of these haats these are

called with the name of a particular day also such as %angal aaar, udh aaar etc.

According to one estimate about HD,000 haats are organied in our country.

7. M+L(S ;%elas are fairs they can range from commodities fairs to religious

fairs. :irtually every state in India has meals for which it is known. It is estimated that

more than DE00 melas are held annually in the country. It is also estimated that the

average outlets in every %ela would be more than 00 the average sale per mela would

be 8s. 6H/ lakhs. Jauchandi is an eample of important annual mela in %eerut, at many

places such as )walior, Aligarh, ulendshahr annual ehibitions are organied. At

government level, a number of fairs such as book fair, trade fair and specific commodity

fair are organied by rade Fair Authority of India.

?. M(#IS ;%andis are markets set up regulated by state government for the

sale of agricultural produce directly from farmers. At present the number of such markets

stand at 7ED6. hese mandis are playing significant role in providing better prices to

farmers.

B4 +ST(BLIS-+# '"!M(TS ;


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1. /I"S/S ;A kiosk is a small freestanding pavilion or stall often open on one or more

sides and used for information sales and promotion. )enerally a kiosks is placed in a

shopping centre, a bus stand or near by the prospective customers.

>. /I!(( S-"P 2 I#+P+#+T ST"!+S ; his is one of the

important popular established formats of retailing in India. hese shops are usually shops

with a very small area, stocking a limited range of products, varying from region to region

according to the need of the clientele or the whims of the owners.

hese are low cost structures mostly owner operated, have reliable real estate labours

cost. *onsumer familiarity that runs from generation to generation is one big advantage

en&oyed by such #irana "hops.

It is worth mentioning that India retail sector has traditionally been structured around /

small retail entities ? the grocer, the general store and the chemist. he grocer stocks non-

packaged, unbrandedL)eneric commodities such as rice, floor, pulses, spices, salt etc. for

sale. he )rocery "tores or #irana shops located in neighbour-hood centres also sale branded

packaged fast moving consumer goods.

he )eneral store stocks only branded packaged F%*)s. hese are generally locatedprominently in the neighbourhood centre residential areas. *hemists are a part of

dispensing pharmaceutical. (roducts, sales branded F%*)s such as personal *arrier

(roducts health food. Alongside the three retail outfit, eist a large segment of smaller,

unorganied players - paan, beedi stores which stock products in sachets, batteries,

confectionary soaps, bakery confectioners, fruit &uiceLtea salts, ice-cream parlour,

electrical, furniture hardware stores.

#irana shops independent small stores provide a wide variety of facilities to their

customers, such as telephone order credit facilities, home delivery, customiation on account

of offerings packaging specific products produced on order in case of stock out. %ore

importantly theyre available net door to offer personalied service. In this way their able to

develop a strong relationship with their customer, who over a period of time, become

etremely loyal.

7. S$P+! M(!/+TS@-)P+! M(!/+TS ; hese are large !40,000 s+uare

feet plus$ self-service stores selling a variety of products at discounted price. he best


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practice chains in this format are *arrefour !France$ 2al-%art !"$. "upermarkets tend to be

located in key residential markets and malls and offer competitive prices due to economics of

scale in logistics and purchasing. he format is new to India and some important players in

this field are Food 2orld, ig aaar. Indian "uper %arket are smaller than others countries.

?. #+P(!TM+T(L ST"!+S ; hese large stores primarily sell non-food items

such as apparel, footwear household products. hey stock multiple brands across product

categories, though some of them focus as their own store labels. Cepartmental stores are

found on high streets and as anchor shops of shopping malls. "ome department stores chains

are opened in India e.g. "hoppers stop, 2estside and @bony.

8. SP+%I(LT) %-(IS ; hese outlets focus on a particular brand as productcategory, usually non-food items and are located on high streets and in shopping malls. he

most famous specialty chains include )ap, 9evis and enetton.

A. #IS%"$T ST"!+ ; It is a general merchandise retailer that offers a wide

variety of merchandises limited service and low prices. "ubhiksha and %argin free markets

are operating in this format in India.

. 0-"L+S(L+ %(S- (# %(!!) ; he wholesale cash and carry

operation is defined as any trading outlets where goods are sold at the wholesale rate for

retailers and business to buy. he transactions are only for the business purpose and not for

personal consumption. %etro, cash and carry, )mbh of )ermany entered the India in this

format.

C. %"V+I+%+ ST"!+ ; It is a retail business of less than E,000 s+uare feet

with primary emphasis on providing the public a convenient location to +uickly purchase an

assortment of food, gasoline and other consumable products. hey are usually open seven

days a week for etended hours

%4 %""P+!(TIV+ S-"PS@G"VT. "!G(IS(TI" ;

*ooperative stores in India are the result of the cooperative movement that can be traced


18/51

to the (re-independence period. hey emerged as a reaction to the feudal system attempted

to place the fruit of labour in the hands of the producer himself to make him relevant. he

*ooperative movement was strengthened after independent in 2estern IndiaM

A consumer cooperative is a retail institution owned by member customers. A consumer

cooperative is generally formed either because of dissatisfied consumers who's needs are not

fulfilled by the eisting retailers or on account of initiative by enlightened consumer.

#4 P#S@'(I! P!I%+ S-"P ;

he (C" or (ublic Cistribution "ystem would easily emerge as the single largest retailchain eisting in the country. he evolution of (C" of )rains in India has its origin in the

rationing system introduce by the ritish during 2orld 2ar II. he system was started in

64/4 in ombay "ubse+uently etended to other cities and towns. y the year 64H5, as

many as 776 citiesLtowns were covered. he system was abolished post war, however, on at

attaining Independence India was forced to reintroduce it in 64E0 in the face of renewed

inflationary pressures in the economy.

he system, however, continued to remain an essentially urban oriented activity. In fact,

towards the end of the First E-year plan !64E5$ the system was closing its relevance due to

comfortable food grains availability. At this point in time, (C" was reintroduced and other

essential commodities like sugar, cooking coal kerosene oil were added to the commodity

basket of (C". here was also a rapid increase in the 8ation shop and their number went up

from 6000 in 64E7 to E6000 in 6456. hus, by the end of the second E year (lan, (C" had

changed from the typical rationing system to a social safety system, making available food

grains at a 'fair-price' so that access of household to food grain could be improved such

distribution could keep a check on the speculative tendencies in the market. he (C" has

been functioning for more than H decades now and its greatest achievement lies in preventing

famines in India.

+4 %"V+I+%+ S-"PS ;


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hese shops are relatively small shops that are located near residential areas, are open for

long house 7 days a week and offer a limited line of convenience products like beverages,

ready to eat snack !(astry, "andwiches$ bread, eggs, milk, confectionary etc. hese shops

have been +uite common throughout the country.

'4 SP+%I(LT) S-"PS ;

A "pecialty shop is a retail shop displaying merchandise, which has narrow product line,

specialiing in a particular type of merchandise offering, specialied service to customers.

)enerally these shops concentrate on a specific item such as Appeal, ewellery, Fabric,

"porting )oods, and Furniture etc. "pecialty shop can be sub classified by the degree of

narrowness in their product line. @.g. a clothing stock would be a single line shop, a mensclothing shop would be limited time shop a mens shirt store would be a super specialty

shop. "uch shop have always played significant role in relating of consumer durables

throughout the country but particularly in urban sub-urban areas.

!$!(L M(LLS -(V+ M(#+ ( B+GIIG;

8ural retailing is an important segment of the retail industry and it is only lately that

companies are making investments in this area. I* launched *haupal "agar, the first rural

mall, with a variety of products and offering farmers tools to adapt to new technologies and

methods of farming and selling their produce. he C*% "riram )roup has opened a 3ariyali

aaar, offering farm-related services and plans to increase their product line to a full-fledged

grocery store. )odre& )roup has opened Adhaar, a one-stop shop for farmers, focusing on

farm related products. @scorts and ata *hemicals are also in the process of setting up agri-

stores targeting the rural market

-)P+!M(!/+TS;

In commerce, a hypermarket is a superstorecombining a supermarketand a department

store. he result is an epansive retailfacility carrying a wide range of products under one

roof, including full groceries lines and general merchandise. In theory, hypermarkets allow

customers to satisfy all their routine shopping needs in one trip.

It is often a very large establishment; hypermarkets offer a large variety of products such

as appliances, clothing and groceries.
http://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Big-box_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Big-box_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Product_(business)


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he hypermarket appeared first in France at the beginning of the sities as a synthesis of

the main features of modern retailing. ut in France, the decline of this retail format seems to

have begun and "pain could follow +uickly. In the same time, the )erman hard-discounters

continue their invasion. According to the retail life cycle theory, this paper displays curves to

demonstrate the evolution of this retail concept in France, "pain and Italy and tries to evoke

some managerial and strategic issues. he retail wheel seems to go on turningN

-IST"!) "' -)P+!M(!/+T;

At the end of the 64E0's and at the beginning of the 6450's, many French retailers came to

nited "tates to listen to ernardo ru&illo, director of the Internationa& Management

Systems Seminars. =ne of his arguments during his seminars on modern retailing was> Noparking, no business. %ost of these French retailers came back to France very enthusiastic.

A new concept then was launched in the French market> the hypermarket.

he hypermarket was defined as a retail concept with a floor space over D,E00 mD. @very

kind of products was supposed to be sold through self-service techni+ues even though there

are today eceptions. Cespite several bank support refusals, the families Fournier, adin, and

Cefforey, native from "witerland, decided to open the first hypermarket. It was in the

"outhern (aris in 645/ under the name *arrefour. Its sie was eactly D,E00 m D. his first

hypermarket was immediately a big success.

en years after, there were more than DE0 hypermarkets in France. oday, there are more than

6,/00 hypermarkets in this country. And the group *arrefour, composed of several chains, is

now the second world largest retailer after 2al-%art. his public company has more than

60,000 stores in the world today located in more than /0 countries. *arrefourbegan its

internationaliation process very early in the 6470's. he group is present of course in @urope

but also in "outh and *entral America, and in Jorth Africa. In Asia, *arrefour is very

successful in *hina and hailand but not in apan where they located only four hypermarkets

at this time

BIG B(D((!

Type Pu6&ic
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_company


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Industry !etai&ing

'ounded >991

-ead5uarters Mum6ai,Maharashtra,India

Products -ypermarket

!eenue 11899crores3$SE1.C 6i&&ion4 crores 3in >91?4 3Big Bazaar

and 'ood Bazaar com6ined4

+mp&oyees 7A999 peop&e

Parent 'uture Group

#iisions >1?

0e6site http;@@.panta&oonretai&.in@[email protected]&

1.7 %"MP() P!"'IL+

%ompany Pro*i&e o* Big Bazaar

ig aaar is the largest hypermarket chain in India. As of une D, D06H there are D6H

stores across 40 cities and towns in India covering around 65 million mDof retail space. ig

aaar is designed as an agglomeration of baaars or Indian markets with clusters offering a

wide range of merchandise including fashion and apparels, food products, general

merchandise, furniture, electronics, books, fast food and leisure and entertainment sections.
http://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Division_(business)http://www.pantaloonretail.in/businesses/big-bazaar.htmlhttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Division_(business)http://www.pantaloonretail.in/businesses/big-bazaar.html


22/51

ig aaar stores are aimed at providing a local marketplace feel to the shoppers. hey

offer a wide variety of household items including retail apparels, food products, general

merchandise, furniture, electronics, books, fast food, etc. "everal stores also have leisure and

entertainment sections. he hypermarket chain crossed the 600 store mark in D00.

Future aaar is an online business venture of Future )roup, which sells an assortment of

products such as fashion, which includes merchandise for men and women, mobile

accessories, mobile handsets and electronics like home theatres, video cameras, digital

camera, 9*C :s, kitchen appliances and many more.

#iscounts> K3afte ka sabse sasta din was introduced by the ig aaar, wherein etra and

special discounts were offered on 2ednesday every week, to attract the potential buyers into

their store.

Security check> At each eit of ig aaar, they use alarm systems or @lectronic Article

"urveillance system, which detects the products that has attached tags or not.

'$T$!+ G!"$P (LS" "0S

*entral 3ypermarket

rand Factory

(antaloons


23/51

e - O=J@

3ometown

futurebaaar.com

#'s Fair (rice

.

-IST"!);

>991 to >919

ig aaar was introduced by the Future )roup in "eptember D006 with the opening of its

first four stores in #olkata, Indore, angalore and 3yderabad within a period of DD days.

"tarted by /ishore Biyani, ig aaar was launched mainly as a fashion format selling

apparel, cosmetics, accessories and general merchandise. =ver the years, the retail chain has

included in its portfolio a wide range of products and services, ranging from grocery to

electronics.

he current retail formats of the Future )roup include Big Bazaar, 'ood Bazaar,

+&ectronicBazaar and 'urniture Bazaar. According to #ishore iyani, the inspiration

behind this entire retail format was from "aravana "tores, a local store in . Jagar, *hennai.

ig aaar is popularly known as the FIndian0a&Mart=today.

In the second year of operations, ig aaar tied up with Indian banking giant I*I*I

ank and launched the ig aaar I*I*I ank *ard. In the same year, the first Food aaar
http://en.wikipedia.org/wiki/Kishore_Biyanihttp://en.wikipedia.org/wiki/Kishore_Biyani


24/51

store was also launched at 3igh "treet (hoeni mall in %umbai, marking the retailers entry

into dedicated food retail.

In D00/, ig aaar made its foray into small towns and cities. he first store in this

category was launched that year in Jagpur. he franchise also welcomed its 60 millionth

customer at its new store in )urgaon in the same year.

=ver the net two years, ig aaar consolidated its position in the Indian retail

landscape. his phase of growth included the setting up of the %umbai store in 9ower (arel,

which registered a record 8s 60 million turnover in a single day on Ciwali-eve in D00H. In

D00E, the first ig aaar @change =ffer was launched, which has +uickly gained popularity

among customers.

In D005, further changes in loyalty marketing took place with the launch of the

housewife-centric credit card, "hakti. ewellery store 1Javaras was also launched that year

within ig aaar stores which became the first store-in-store concept to be launched by the

brand. Another dedicated retail format launched in D005 is Furniture aaar.

In D007, ig aaar partnered with a shopping portal Futurebaaar.com and epanded its

retail footprint to E0 stores.

he following year, D00, witnessed by far the fastest growth in terms of retail epansion

for ig aaar, with the launch of the 606st store. oining the league of Indias "uper brands

and voted among the top ten service brands in the country by the (itch-I%8 international

survey, ig aaar became much more than a household name.

he year also saw the launch of the %onthly Bachat Bazaar 3Month&y Budget Market4

campaign, which provided significantly low prices and gave discounts on bulk purchases in

the first week of the month.

=ver the net two years, ig aaar carved its own niche in modern retail and became

the largest brand in the hypermarket format. *apturing one-third of the food and grocery

market in modern retail, celebrity endorsements and tie-ups with other brands allowed it to


25/51

enhance its retail footprint. In D004, ig aaar won the *J* Awaa *onsumer Awards for

the third consecutive year. It was ad&udged the %ost (referred %ulti rand Food everage

*hain, %ost (referred %ulti rand 8etail =utlet and %ost (referred %ulti rand =ne "top

"hop.

>919 to present

=n successful completion of 60 years in the Indian retail industry, in D066, ig aaar

came up a new logo with a new tag line> "NayeIndiaKaBazaar.

In D06D, ig aaar signed a multi-million dollar deal with *ogniant echnology

"olutions for the development of an I infrastructure, encompassing Future )roups entire

network of stores, warehousing and data centers.

8ecently, ig aaar announced its plans to add more retail services to its portfolio such

as grinding, de-seeding and cutting of fruits and vegetables.

"P+!(TI"S

Various *ormats and store concept

%ost ig aaar outlets are multi-leveled stores and are located in stand-alone buildings

in city centers as well as within shopping malls. hese stores have more than D,00,000 "tock

#eeping nits !"#$ in a wide range of categories, led primarily by fashion and food

products. he retail space of these stores in the metros range between E0,000 and 6,50,000 s+.

ft. "ince its launch in D006 in metro cities like #olkata, angalore and 3yderabad, ig

aaar is the largest 3ypermarket chain with presence in 40 cities and towns across the

country

%S! (%TIVITI+S

As a part of Future )roup, ig aaar is involved in various social activities that include

green initiatives for the community, blood donation camps, Ciwali celebrations with


26/51

orphanages, visits to orphanages and other J)=s helping underprivileged children. hese

activities usually involve all members of the management as well as staff of ig aaar.

P In "eptember D066, Future )roup signed a strategic partnership with the 3imachal

(radesh )overnment to directly source, market and promote the states products and services

through its ig aaar stores under the brand 13imachal. he aim of this partnership is to

aid the development of various 1source-to-market initiatives to enhance livelihoods for more

than DE,000 families in the state.

P ig aaar created a platform called Qatra to provide women of self-help groups across

various towns and regions of %aharashtra and )u&arat the opportunity to market their wide

assortment of indigenous food and non-food products. As part of the programme, women

from over /0 regional self-help groups were invited, encouraged and helped to set up stalls to

ehibit their products at ig aaar stores.

P ig aaar %ysore started offering a free wholesome meal to all its customers, who in

return contribute 1"hraddha Anussar for a community cause. In other words, the customers

donate any amount for the meal which would be used for a local, regional or topical cause.

S%-+M+S 2 I"V(TI"S

he introduction of 1"abse "asta Cin !*heapest Cay$ in the year D00E was a turning

point for the ig aaar franchise. As part of this effort, the 8epublic Cay holiday was used

to ensure that consumers visited ig aaar outlets across the country in large numbers to get

re+uired household items at cheaper rates.

aking cue from this highly successful concept, another initiative was introduced, named

the FPuranadoaurnaay&o=3gie o&d and get ne4 scheme. In this scheme, consumers

were asked to bring and sell old clothes, utensils and other household items in echange of

discount coupons.

he concept proved to be a success yet again as people from across the country responded

spontaneously, in spite of the different preconditions associated with it.

he franchise further inaugurated the concept of F-a*te ka sa6se sasta din=!*heapest

Cay of the 2eek$, wherein 2ednesday was designated to be the day when special discounts

were offered to consumers during a week.


27/51

0ednesday Bazaar

he concept of 2ednesday aaar was promoted as F-a*te /a Sa6se Sasta #in=

!*heapest Cay of the 2eek$. Initiated in anuary D007, the idea behind this scheme was to

draw customers to stores on 2ednesdays, the day when consumer presence is usually less.

According to the chain, the aim of the concept was 1to give homemakers the power to save

the most.

Sa6se Sasta #in

ig aaar introduced FSa6se Sasta #in=3%heapest #ay4with the intention of attaining

a sales figure of 8s D5 crores in a single day. he concept became such a hit that the time

period for the offer had to be increased from one day to three days in D004 !anuary DH to D5$

and to five days in D066 !anuary DD to D5$.


28/51

Maha Bachat

he concept of FMaha Bachat= 3Mega Saing4was introduced in the year D005 as a

single day campaign with attractive promotional offers across the company outlets. =ver the

years, the concept has grown to become a si-day biannual campaign. Curing this campaign,

attractive offers are given in all the value formats including ig aaar, Food aaar,

@lectronic aaar and Furniture aaar.

he )reat @change =ffer


29/51

Introduced on February 6D, D004, 1he )reat @change =ffer allows customers to

echange their old goods for ig aaar coupons. he coupons can be redeemed later for

buying brand new goods from ig aaar outlets across the nation.

1.7 %(MP(IGS 2 M(!/+TIG IITI(TIV+S.8 (#V+!TISIG

In view of the increasing competition in the retail market, ig aaar has introduced

certain steps to keep itself updated and continue promoting the band.

(dertising initiaties

ig aaar has recently launched a /50-degree promotion drive covering the three prime

media, television, print and social media, to mark the launch of the new logo. he entire

media campaign was developed by %udra *ommunicationsas ig aaar celebrating April

tsav on D06/. hey =ffering 8s. E0 off on 8s. E00 or 8s. 600 off on 8s. E00 or 8s. D00 off

on 8s. E00 coupon through missed call.

ST!(T+G) $S+# I BIG B(D((!

7% Theory

According to /ishore Biyani's /-* theory, *hange and *onfidence among the entire

population is leading to rise in *onsumption, through better employment and income which

in turn is creating value to the agricultural products across the country.

ig aaar has divided India into three segments>

India one;*onsuming class which includes upper middle and lower middle class !6HB

of India's population$.

India to;"erving class which includes people like drivers, household helps, office

peons, liftmen, washer men, etc. !EEB of India's population$ and

India three;"truggling class !remaining /6B of India's population$.
http://en.wikipedia.org/wiki/DDB_Mudrahttp://en.wikipedia.org/wiki/Kishore_Biyanihttp://en.wikipedia.org/wiki/Kishore_Biyanihttp://en.wikipedia.org/wiki/DDB_Mudrahttp://en.wikipedia.org/wiki/Kishore_Biyani


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INDIA TWO (55%)INDIA THREE (3%)INDIA ONE (14%)

Strategies $sed in Big Bazaar

2hile ig aaar is targeted at the population across India one and India two segments,

Aadhaar 2holesale is aimed at reaching the population in India three segment. 2ith

this, )roup emerged as a retail destination for consumers across all classes in the Indian

society.

'"$! P=S "' BIG B(D((!

P!"#$%T MI


31/51

(PP(!+LS

! D"#$%&' S($)*&

! F+,)$-&! F.)%+/

W"+)! C+&0+/

W"+)

-"M+

%(!+

! S(+%1..&

! D"*")2"#*&

! S.+1&! L$30$4

W+&(

%-ILL

ST(TI"

! S.5*D)$#6

! P+-6+2"470$-"&

! M$/6I*"%&

! F).8"#F..4&

'(!M

P!"#$%+

! F)0$*&! I%1.)*"4

F)0$*&! V"2"*+,/

"&! D+$)9

P).40-*&

Product Mix

P!I%+ MI

:alue (ricing !@C9($

(romotional (ricing

9ow Interest Financing

(sychological Ciscounting

"pecial @vent (ricing

Cifferentiated (ricing

ime (ricing

undling

PL(%+ MI

Initially Identifies FutureL(otential development areas.

Ac+uire such areas at an early phase before the real estate value booms.

9ocated at high traffic areas.


32/51

Cesign to look crowded.

P!"M"TI" MI

K"aal #e "abse "asta / Cin. L+(#+!S-IP; o be leader both in business thought.

7. !+SP+%T 2 -$MILIT); o respect every individual be humble in our conduct.

?. IT!"SP+%TIV+; 9eading to purposeful thinking.

8. "P++SS; o be open to receptive to new ideas, knowledge information.


45/51

PRICE!UARANTEE

#UALITY!UARAN

TEE

E$CHAN!E!UARANTEE

A. V(L$IG 2 (T$!IG !+L(TI"S-IP; o build long term relationship.

. SIMPLI%IT) 2 P"SITIVIT); "implicity positivity in our thought, business

action.

C. (#(PT(BILIT); o be fleible adaptable to meet challenges.

H. 'L"0; o respect understand the universal laws of nature.

$(LIT) P"LI%);

ua&ity Po&icy

3(4 P!I%+ G$(!(T++;In within D days of purchase if a customer finds a product

of same brand or +uality available at lesser price, the customer can bring it back within 60

days with the cash memo we will show the price difference.


46/51

ST!+GT-S

0+(/+SS+S

"PP"!T$ITI+S

T-!+(TS

3B4 $(LIT) G$(!(T++;All products sold at ig aaar are guaranteed to be at a

good price of good +uality.

3%4 +%-(G+ G$(!(T++; he echange of any product that have been bought

from ig aaar are not satisfied by the customer can be return back with the cash memo

within 6E days from purchase.

S0"T ((L)SIS

'ig. 1> ; S0"T (na&ysis

ST!+GT-S;

3igh brand e+uity.

etter understanding of customers helping the company to serve them better.

:ast range of products under one roof helping in aerating customer their family. Civersified business operating all over India in various retail formats.


47/51

Ability to get products from customers at the rate of discounted price due to the scale

of business.

(rofessional management.

)ood employee employer relationship.

"trong cultural ethics values are followed. (rovides loans for purchase of furniture electronic products.

(rovides home delivery facilities to customers

0+(/+SS+S;

3igh cost of operation due to large fied cost.

"pecific items are not consistently available.

(oor supply chain management weak support infrastructure

nable to meet store opening targets. navailability of popular brand items with regard to clothing.

2eak in technology.

"PP"!T$ITI+S;

(opulation of the country is growing where the scope of the market is kept on

increasing for the retail sector.

*an enter into the production of various products due to its in depth understanding of

customers taste preference.

)rowth in the income of the customers.

@pand their business at global level.

(rovide +uality services to the customers.

T-!+(TS;

9ot of competitors coming up to tap the market potential.

"hrinkage

3igh business risk involved.

Advancement of technology day by day.


48/51

%-(PT+!8


49/51

T%&or&tic'( )'c* +rou,d

According to Armstrong and #otler !D00$, it is important for firms to implement the

right marketing strategies in order to succeed. raditionally, firms have focused their

marketing strategies around attracting new customers and increasing their market share.

3owever, due to globaliation, most industries and markets are becoming more and

more competitive forcing significant changes in the way firms do business . In

order to retain customers in industries characteried by high competition, firms need to

meet each individual customers needs and epectations !ibid$. )umesson !D00D$ argues

that it is the value of the customers eperiences with the productLservice that is

important, therefore, customers needs are important to consider when developing

products and services.

he academic literature available today recognies the eistence of a shift in firms

orientation to their customers, from a transactional to a more relational approach

!@riksson :aghult, D000; %organ 3unt, 644H$. %organ and 3unt !644H$, argue

that this change has led to an increase in studies focusing on the factors and mechanism

determining the establishment, development and maintenance of successful relational

echanges. oday relational echanges are tone of the core aspect of marketing. he

American marketing associations !A%A$ description of marketing states, K%arketing is

an organiational function and a set of processes for creating, communicating and

delivering value to customers and for managing customer relationships in ways that

benefit the organiation and its stakeholders< ! A%A on %agnosticism$manage

fluctuations in demand and as services cannot be patented legally, meaning that new

service concepts can be copied by competitors. Furthermore, as services cannot be

readily displayed and communicated to customers, +uality may be difficult to assess by

customers.

Inseparability is referred to as production and consumption occurring simultaneously

!)ordon et al., 644/$. Oeithalm and itner !6445$ argue that as production and


50/51

consumption occur simultaneously, it becomes difficult to apply a mass production

strategy. he +uality of service and customer satisfaction will be highly dependent on

what occurs in ,real life which includes the actions of the employees and the interactions

between employees and customers.

Further, as the customers are involved in the production of the service, they are able to

affect the outcome of the service transaction !ibid$. 3eterogeneity means that as services

are performances, they may vary on a day-to-day basis !)ordon et al., 644/$. Oeithalm

and itner !6445$ argue that no two services will be eactly the same and therefore it is

difficult to ensure consistency in service +uality across time, organiations, and people.

Cue to such complications it becomes hard for the service manager to know for sure if

the service is being delivered in a way that is consistent with what was originally

planned !ibid$. Finally, (erish ability is referred to as services which cannot be saved,

stored, resold or returned !)ordon et al. , 644/$. Oeithalm and itner !6445$ argue that

one primary issue faced by marketers concerning the perish ability of services, is the fact

that services cannot be inventoried which implies that there is a need for strong recovery

strategies when things go wrong.


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