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Adept Foundation

ADEPT INSTITUTE OF MANAGEMENT STUDIES,


MBA DHARWAD.
(A ppr oved by SMU UNIVE RSI TY MANIP AL )

STUDY ON
“A STUDY ON THE EFFECTIVE PROMOTIONAL STRATEGY
WHICH INFLUENCES CUSTOMER TO PURCHASE A PRODUCT
OF BIG BAZAAR”

A Report Submitted in Partial Fulfillment of


The Requirement for the Award of

MASTER’S DEGREE IN BUSINESS ADMINISTRATION


2009-2010

Submitted by
Manjunath Reddy.
Exam No. 520864273

Institute Guide: Compan y Gui de:


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

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AIMS COLLEGE, Dharwad.
Adept Foundation
Adept Institute of Management Studies, MBA Dharwad.
(Rec og nize d by ISO, & Af fili at ed t o SMU Univ ersi ty, Ma nip al )

CERTIFICATE

This is to certify that Mr. Manjunath Reddy.


student of Adept Institute of Management Studies, bearing

Registration No. 520864273 of MBA 3rd Semester has successfully

completed his summer in plant training 2009-2010.

Project Guide Dean

Date: ______________

INDEX

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AIMS COLLEGE, Dharwad.
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AIMS COLLEGE, Dharwad.
CHAPTER PAGE NO.
TOPIC
NO.
I Summary 5
II Acknowledgement 6
III 7
Declaration
IV 8
Industry Profile
V Competition In Retail 15
VI 31
Board of Director
VII 32
Company Profile
VIII Store Study 37
IX Future Plans Of Big Bazaar 51
X Organizational Structure 53
XI Store Structure 54
XII Vision & Mission 55
XIII Supply Chain Management 59
XIV My Learning 60
XV Research Methodology 61
XVI Analysis & Interpretation 64
XVII Findings 74
XVIII Recommendations 76
XIX Conclusion 77
XX Limitations 78
XXI Annexure 79
XXII Bibliography 81

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AIMS COLLEGE, Dharwad.
EXECUTIVE SUMMARY

Indian retail sector is witnessing one of the most hectic Marketing activities of all
times. The companies are fighting to win the hearts of customer who is God said by the
business tycoons. There is always a ‘first mover advantage’ in an upcoming sector. In
India, that advantage goes to “BIG BAZAAR”. It has brought about many changes in the
buying habits of people. It has created formats, which provide all items under one roof at
low rates, or so it claims. In this project, we will study its marketing strategies and
promotional activities.

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AIMS COLLEGE, Dharwad.
The research titled ‘A Study on the effective promotional strategy which influences
customer to purchase a product of Big Bazaar’ helps us to understand the effect of
promotional strategy which is responsible for attracting customer towards big bazaar
This study helpful to top level management to improve the present promotional strategy
of BIG BAZAAR.

The report deals with the impact of promotional activity which attracting customer
towards big bazaar.

The research was carried out as per the steps of Marketing Research. The well
supportive objectives were set for the study. To meet the objectives primary research was
undertaken. The data collection approach adopted was experimental research & survey
research. The instrument used for the data collection was observation & questionnaire.
The target respondents were the visitors of BIG BAZAAR, with the sample size of 100
for the study of sales management of the company. Tables & charts were used to translate
responses into meaningful information to get the most out of the collected data. Based on
those the inferences have been drawn with peer supportive data.

ACKNOWLEDGEMENT

The report what I have presented is not the made outcome of my labor alone. There are
dozens of hands buttressed me all through the programme it doesn’t go without thanking
all of those who constantly keep me on the move.

I would like to give heartily thanks to Adept Institute of Management Studies Dharwad
who have given us an opportunity to learn something practical apart from books by
including the in-plant training in our MBA Programme.

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AIMS COLLEGE, Dharwad.
I express my gratitude to our Dean Mr. Mahesh Masal who has supported me to complete
this project. My sincere thanks to Prof. Nityanand K, Internal Guide for guiding me to
work on this project.

I would like to express my most sincere thanks and gratitude to External guide Mr. Arif
ADM (Assistant Department manager) who have given a good support to grab the
external exposure and to complete a project in Big Bazaar.

I give my sincere token of thanks to all my faculties, relatives and friends who have
gathered me the wisdom of knowledge. This work is dedicated to my parents who have
supported me throughout my study.

DECLARATION

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AIMS COLLEGE, Dharwad.
I the undersigned have completed the project entitled ‘A Study on the

effective promotional strategy which influences customer to purchase a product of

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

award of the Degree in Master of Business Administration to the

Sikkim Manipal University, .

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

data & information collected by me.

Place: Hubli

Date: Manjunath.Reddy.

INDUSTRY PROFILE
Introduction

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AIMS COLLEGE, Dharwad.
Retail means selling goods and services in small quantities directly to customers.
Retailing consists of all activities involved in marketing of goods and services directly to
consumer for their personnel family and household use.

The Indian retailing industry is becoming intensely competitive, as more and more
payers are Vying for the same set of customers. The major retail players are Pantaloon
Retail, Shoppers Stop, Reliance, etc.,

Retailing is one of the biggest sectors and it is witnessing revolution in India. The new
entrant in retailing in India signifies the beginning of retail revolution. India's retail
market is expected to grow tremendously in next few years. According to AT Kearney,
The Windows of Opportunity shows that Retailing in India was at opening stage in 1995
and now it is in peaking stage in 2006. India's retail market is expected to grow
tremendously in next few years. India shows US$330 billion retail market that is
expected to grow 10% a year, with modern retailing just beginning. India ranks first in
2005. In fact, in 2005 and 2006, India is the most compelling opportunity for retailers,
because now India is in peaking stage.

Sector details
1. Introduction to retail industries.
2. Retail word is derived French word retailer means to cut off a piece.
3. Retailing includes all the activities involved in selling goods or services to the
final customer for personnel or non-business use.
4. Supermarket is a retailing of a wide variety of consumer products under one roof,
ample stock, stock of several brands & extended business hours.

History of retailing

Retail concept is old in India. World’s first departmental store started in Rome.

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Today’s kirana stores are based on Manusmriti & Kautilya’s arthshastra.
Haats, Melas, Mandis & door to door salesmen are traditional Indian retail.
Vishal Mega Mart is a retail sector, which is providing good quality of products in very
reasonable price than its competitors. Retailing and wholeselling consist of many
organizations designed to bring goods and services from the point of production to the
point of use.
Retailing includes all the activities involved in selling goods or services directly to final
consumers for their personal, non-business use. Retailers can be classified in terms of
store retailers, non-store retailing, and retail organizations.
Store retailers include many types, such as specialty stores, department stores,
supermarkets, convenience stores, superstores, combination stores, hypermarkets,
discount stores, warehouse stores, and catalog showrooms. These store forms have had
different longevities and are at different stages of the retail life cycle. Depending on the
wheel-of-retailing, some will go out of existence because they cannot compete on a
quality, service, or price basis.
Non-store retailing is growing more rapidly than store retailing. It includes direct selling
(door-to-door, party selling), direct marketing, automatic vending, and buying services.
Much of retailing is in the hands of large retail organizations such as corporate chains,
voluntary chain and retailer cooperatives, consumer cooperatives, franchise
organizations, and merchandising conglomerates. More retail chains are now sponsoring
diversified retailing lines and forms instead of sticking to one form such as the
department store.
Retailers, like manufacturers, must prepare marketing plans that include decisions on
target markets, product assortment and services, store atmosphere, pricing, promotion,
And place. Retailers are showing strong signs of improving their professional
management and their productivity, in the face of such trends as shortening retail life
cycles, new retail forms, increasing intertype competition, and polarity of retailing, new
retail technologies, and many others.
Wholesaling includes all the activities involved in selling goods or services to those who
are buying for the purpose of resale or for business use. Wholesalers help manufacturers
deliver their products efficiently to the many retailers and industrial users across the

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nation. Wholesalers perform many functions, including selling and promoting, buying
and assortment-building, bulk-breaking, warehousing, transporting, financing, risk
bearing, supplying market information, and providing management services and
counseling. Wholesalers fall into four groups. Merchant wholesalers take possession of
the goods and include full-service wholesalers (wholesale merchants, industrial
distributors) and limited-service wholesalers (cash-and- carry wholesalers, truck
wholesalers, drop shippers, rack jobbers, producers' cooperatives, and mail-order
wholesalers). Agents and brokers do not take possession of the goods but are paid a
commission for facilitating buying and selling. Manufacturers' and retailers' branches and
offices are wholesaling operations conducted by non-wholesalers to bypass the
wholesalers. Miscellaneous wholesalers include agricultural assemblers, petroleum bulk
plants and terminals, and auction companies.
Wholesalers, too, must make decisions on their target market, product assortment and
services, pricing, promotion, and place. Wholesalers who fail to carry adequate
assortments and inventory and provide satisfactory service are likely to be bypassed by
manufacturers. Progressive wholesalers, on the other hand, are adapting marketing
concepts and streamlining their costs of doing business.

CURRENT SCENARIO

India rank first in terms of emerging market potential in retail sector. Current retail
market is US $ 215 billion. Growth rate of retail sector in India is 8-10% per annum.
Near about 12 million retail outlets are spread across India.
FDI in retail sector increases from US $ 3.1 billion in 2003 to over US $7.6 billion in
2009.

TYPES OF RETAILERS
Retailers are broadly classified into 3 categories
• Food Retailers.
• General Merchandise Retailers.

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• Service Retailers.

OTHER SERVICES PROVIDED BY RETAILERS

Retail not only provides products to the customer but also gives different types of
services like:
 Airlines & travel agents
 Banks
 Health clubs
 Hotel & Restaurants
 Movie theatres

TECHNOLOGIES USED IN RETAILING SECTOR

 In-store technologies-
 Interactive kiosks
 Virtual display case
 Radio Frequency identification tags
 Self-scanning & self-checkout system
 Body scanning

 Online technology-
 Online display of products
 Online shopping

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AIMS COLLEGE, Dharwad.
CHALLENGES

 Largely urban phenomenon, pace of growth is still slow.


 Not being recognized as an industry in India so availability of finance is low to
new market players.
 High cost of real estate.
 High stamp duties.
 Lack of infrastructure.
 Multiple & complex taxation system.
 Protest against retail sector.

FUTURE STRATEGY
 It is projected that up to 2010 retail sector will be worth around US $ 300 billion.
 FDI is going to increase rapidly, up to 2010 retail sector will become biggest
industry in India.
 Retail sector is expected to create 2 million jobs up to 2010.
 According to Indian Retail Report top 10 players in modern retail trade are going
to invest US $ 18-20 billion in next five years.

Sector Details

In India, the most of the retail sector is unorganized. In India, the retail business
contributes around 10 percent of GDP. Of this, the organized retail sector accounts only
for about 5 percent share, and the expected annual growth rate is 5% per annum and
remaining share is contributed by the unorganized sector. The main challenge facing the

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organized sector is the competition from unorganized sector. Unorganized retailing has
been there in India for centuries, theses are named as mom-pop stores. The main
advantage in unorganized retailing is consumer familiarity that runs from generation to
generation. It is a low cost structure, they are mostly operated by owners, has very low
real estate and labor costs and has low taxes to pay. And it also gives 8% Employment
to the country annually.

In late 1990's the retail sector has witnessed a level of transformation. Retailing is being
perceived as a beginner and as an attractive commercial business for organized business
i.e. the pure retailer is starting to emerge now. Organized retail business in India is very
small but has tremendous scope. The total in 2005 stood at $225 billion, accounting for
about 10% of GDP. In this total market, the organized retail accounts for only $8 billion
of total revenue. According to A T Kearney, the organized retailing is expected to be
more than $23 billion revenue by 2010.

In organized retailing will grow faster than unorganized sector and the growth speed will
be responsible for its high market share, which is expected to be $ 17 billion by 2010-11.

The organized sector is expected to grow faster than GDP growth in next few years
driven by favorable demographic patterns, changing lifestyles, and strong income
growth. This organized retail sector mix includes supermarkets, hypermarkets discounted
stores and specialty stores, departmental stores. For example, Spencer network has 69
stores, which includes seven Spencer hypermarkets, three Spencer super markets and 49
Spencer Daily’s. Now the company is planning to open 20 stores in 10 cities in six
months. The top 10 retailers account only for 2% of total market, today modern retailing
is expected to enter a boom phase, which has major players and these players might
capture 10% of total market, within next five years. The retail sales in India for future are
shown below (data from 2005-2008 is based on estimates)

The trend in the Industry

1. Low share of organized retailing

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AIMS COLLEGE, Dharwad.
2. Falling real estate prices
3. Increase in disposable income and customer aspiration

Increase in expenditure for luxury items (CHART)

Another credible factor in the prospects of the retail sector in India is the increase in the
young working population. In India, hefty pay packets, nuclear families in urban areas,
along with increasing working-women population and emerging opportunities in the
services sector. These key factors have been the growth drivers of the organized retail
sector in India which now boast of retailing almost all the preferences of life - Apparel &
Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products,
Travel and Leisure and many more. With this the retail sector in India is witnessing
rejuvenation as traditional markets make way for new formats such as departmental
stores, hypermarkets, supermarkets and specialty stores.

Existing competition

 Reliance fresh.
 Aditya Birla group.
 Shopper’s Shoppe.

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AIMS COLLEGE, Dharwad.
 Subhiksha.
 Big bazaar.
 Mark and Spencer’s.

The untapped scope of retailing has attracted superstores like Wal-Mart into India,
leaving behind the kiranas that served us for years. Such companies are basically IT
based. The other important participants in the Indian Retail sector are Bata, Big Bazaar,
Pantaloons, Archies, Cafe Coffee Day, landmark, Khadims, Crossword, to name a few.

Evolution of Indian Retail Industry


Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take
place. The inception of the retail industry dates back to times where retail stores were
found in the village fairs, Mela’s or in the weekly markets. These stores were highly
unorganized. The maturity of the retail sector took place with the establishment of retail
stores in the locality for convenience. With the government intervention the retail
industry in India took a new shape. Outlets for Public Distribution System, Cooperative
stores and Khadi stores were set up. These retail Stores demanded low investments for its
establishment. International Brand Outlets, Hyper or Super markets, shopping malls and
departmental stores

Retailing in India: a forecast


Future of organized retail in India looks bright. According to recent researches it is
projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will
capture a share of 10% of the total retailing by the end of 2010.

INDIA: A Hot Spot

India retail industry is the largest industry in India, with an employment of around 8%
and contributing to over 10% of the country's GDP. Retail industry in India is expected to

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

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200
billion. India retail industry is one of the fastest growing industries with revenue
expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A
further increase of 7-8% is expected in the industry of retail in India by growth in
consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has
further been predicted that the retailing industry in India will amount to US$ 21.5 billion
by 2010 from the current size of US$ 7.5 billion.

Shopping in India has witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering. Industry of retail in India which
have become modern can be seen from the fact that there are multi- stored malls, huge
shopping centers, and sprawling complexes which offer food, shopping, and
entertainment all under the same roof.

India retail industry is expanding itself most aggressively; as a result a great demand for
real estate is being created. Indian retailers preferred means of expansion is to expand
to other regions and to increase the number of their outlets in a city. It is expected that by
2010, India may have 600 new shopping centers.

In the Indian retailing industry, food is the most dominating sector and is growing at a
rate of 9% annually. The branded food industry is trying to enter the India retail industry
and convert Indian consumers to branded food. Since at present 60% of the Indian
grocery basket consists of non- branded items.

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


multiplex- malls and huge complexes offer shopping, entertainment and food all under
one roof, the concept of shopping has altered in terms of format and consumer buying
behavior, ushering in a revolution in shopping in India. This has also contributed to large-

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scale investments in the real estate sector with major national and global players
investing in developing the infrastructure and construction of the retailing business.

Growth Drivers
Growth drivers in India for retail sector

• Rising incomes and improvements in infrastructure are enlarging consumer markets


and accelerating the convergence of consumer tastes.
• Liberalization of the Indian economy
• Increase in spending Per capital Income.
• Advent of dual income families also helps in the growth of retail sector.
• Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.
• Consumer preference for shopping in new environs

The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains. Reach of satellite T.V.

• Channels are helping in creating awareness about global products for local markets.
• About 47% of India's population is under the age of 20; and this will increase to
55% by 2015. This young population, which is technology-savvy, watch more than
50 TV satellite channels, and display the highest propensity to spend, will
immensely contribute to the growth of the retail sector in the country.
• Availability of quality real estate and mall management practices
• Foreign companies' attraction to India is the billion-plus population.

Employment opportunities in retail sector in India

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India's retail industry is the second largest sector, after agriculture, which provides
employment. According to Associated Chambers of Commerce and Industry of India
(ASSOCHAM), the retail sector will create 50,000 jobs in next few years.

Retail companies are starting retail management courses in partnership with management
institutes, roping in talent from other sectors and developing comprehensive career
growth and loyalty plans for existing employees.

Top players like Pantaloon Retail India Limited, Trent, Shopper's Stop, RPG Group and
ebony are virtually on their toes.

Consider the plans of largest player, The Pantaloon Retail India Ltd, the company has
developed a comprehensive strategy, where in it expects that in 2years, it will not recruit
any new managers from outside.

"The estimated need is 1 lakh of employees till 2011", said Mr. Sanjoy Jog, HR Head at
Pantaloon Retail India Ltd. Pantaloon has the concept of partnership with educational
Institute to run retail courses across the entire chain. Trent has also started in-house
learning programmers and now goes to under graduate colleges to recruit students.

Since, the job market is hugely receptive to this with more and more business schools
focusing on the sector and large retailers setting up retail academics.

Challenges of Retailing in India


In India the Retailing industry has a long way to go, and to become a truly flourishing
industry, retailing needs to cross the following hurdles:

* The first challenge facing the organized retail sector is the competition from
unorganized sector.
* In retail sector, Automatic approval is not allowed for foreign investment.
* Taxation, which favors small retail businesses.
* Developed supply chain and integrated IT management is absent in retail sector.
* Lack of trained work force.

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• Low skill level for retailing management.
• Intrinsic complexity of retailing- rapid price changes, threat of product
obsolescence and low margins.
* Organized retail sector has to pay huge taxes, which is negligible for small retail
business.
Many agencies have estimated differently about the size of organized retail market in
2010. The one thing that is common amongst these estimates is that Indian organized
retail market will be very big in 2010. The status of the retail industry will depend
mostly on external factors like Government regulations and policies and real estate
prices, besides the activities of retailers and demands of the customers also show
impact on retail industry.

Competition in retail

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


the best in news, views, research, analysis, trends, technology, and competition dents
retail sector growth.

The performance of the retail sector in the last quarter of financial year 2008-09 has been
a gloomy one. Not only has the quarter-on-quarter growth declined by 700 basis point, on
year-on-year (YoY) basis, sales growth fell drastically from 67.8% to 49.1%. Including
the recently listed Koutons and Vishal Retail, all big retailers continue to be on an
aggressive expansion mode. This kind of competition is having a negative impact on
margins of retailers, as the target audience for all of them, more or less, remains the
same.

The slowdown has triggered a volume game in the industry. Strategies like promotional
campaigns, freebies, promoting private labels and online discounts are just some of the
avenues that retailers are looking at to lure customers. According to analysts, this is a
knee-jerk reaction by the industry to fight the inflation-induced dent in the purchasing
power of customers. As they say, retail is a number game, so, big retailers are trying to
push volumes. For some, it comes at the cost of profit. Meanwhile, in contrast to YoY

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AIMS COLLEGE, Dharwad.
sales growth of 49% for the sector, the interest cost has registered a whopping 96%
growth. Though growing at a lesser 39%, depreciation cost has also been impacting
margins.

The cost factor too is adding to the woes. For instance, during the quarter, Shoppers Stop
opened its new stores in various formats. Provogue and Pantaloon followed soon. The
companies are increasing their geographical presence in the wake of increasing
competition. Launch of new formats continues to catch the attention of these retailers. In
fact, a couple of these new formats are already generating profit at the operating level,
thus showing a positive sign towards growth.

Like for Shoppers Stop, the average transaction size increased by about 7% for the
current quarter over the same quarter in the previous year. Players like Provogue and
Pantaloons too have witnessed a similar upward movement. Also, though growth in total
expenses as a whole has almost been equivalent to the growth in sales at about 47%,
some individual cost items like staff costs, selling and administration costs are under
control. On a YoY basis, staff cost has grown at 26% against 44% in the corresponding
quarter of the previous year.

Nonetheless, raw material cost continues to remain high - it grew by 66% in the last
quarter and now is equivalent to 74% of the industry's aggregate net sales. This is the
reason why operating margins have reduced to 4.8% of the revenue sale compared with
5.7% during the corresponding quarter of the previous year.

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


recorded 57% a YoY growth in net sales during March 2008 quarter. Although it is lower
compared with the 63% growth recorded during the December quarter, momentum
continues to favour the company. New stores drove the growth in value-for-money
format - strategies such as KB's Fair Price and online shopping are picking up. Their
home store division has also been doing well. Next on growth charts is Provogue, which
grew 40% in the last quarter, similar to the previous quarter.

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In short, setting up of new stores has resulted in higher working capital funding, which
has raised the industry's interest outgo. For Pantaloon, interest cost has almost doubled
during the current quarter - as a proportion of sales, it has increased from 2.7% to 3.2%
on a YoY basis. Provogue seems to be an exception in this as it recorded the highest
increase of 100 basis points in interest cost for March 2008. Overall, the profitability
margin has seen a sharp decline.

Only Shoppers Stop has registered some profit compared with its performance in the
corresponding quarter of the previous year. The company's net profit margin now stands
at 0.7% of net sales as compared to -1% in March 2007 quarter. It can be concluded that
margins of retail companies seem to have been hit by costs related to their ambitious
expansion programmer. Expansion plans for some of them are running behind schedule.
It has led to higher interest cost, yet retail companies are trying hard to cut costs by
keeping inventory and carrying costs under control.

July 8, 2008
Source: Economic Times

Big retailers at loggerheads with MNCs over brands

A serious conflict is brewing between Indian retailers and multinationals over imports of
global brands. To stay afloat in the dog-eat-dog world of retail, local retailers have
reached arrangements with overseas players to bring in some international brands,
rattling many MNCs who manufacture or market these products locally. In some cases,
these brands have not yet been introduced in India.

Several major MNCs with a long presence in India are invoking the Intellectual Property
Rights (imported goods) Enforcement Rules 2007 to stop retailers from importing
foreign brands. Hindustan Unilever, L’Oreal, Lancome Perfumes, Oakley Inc, Nivea and
Mico have already registered several brands with the Customs department. Sources said
other MNCs are expected to follow suit.

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AIMS COLLEGE, Dharwad.
Market circles perceive this as a move to prevent Indian retailers from getting first access
to these brands. Some of the retailers are debating plans to legally contest the move,
since they possess a free sale certificate from the source of import. Retailers like Big
Bazaar & Food Bazaar, Reliance Retail, Spencer’s and Sankalp Retail (MyDollarStore),
among others, have begun importing sizeable consignments of leading consumer brands
and their variants for better fill rates, product variety and higher margins.

However, the multinationals are not amused, and claim that it leads to loss of business
opportunity, unfair competition and product cannibalization. The fundamental issue here,
according to analysts, is that the Indian arms of the leading FMCG companies would like
to control the way their brands are marketed and sold. They would also like to determine
when new products and variants of existing products should be introduced in India.

A key reason for retailers to step up imports is bottom lines. Profit margins on imported
products are around 20% more than local brands, where producers and retailers are at
loggerheads over sharing margins.

“We are concerned over issues like protecting the properties of our brands, including
quality and consumer perception. Such unplanned imports create brand confusion in the
minds of consumers, since the properties of an imported brand are completely different
from the domestic ones, which are localized to suit the specific region’s requirements. An
unpleasant experience may work against our brand,” said a high-ranking official in a
leading multinational, which makes personal care products.

Retailers claim they are creating ‘demand in advance’ for the multinationals, which
would otherwise have to invest heavily in marketing and ad spends to promote the
brands. Analysts say the developments are the natural effects of a globalised market that
India is moving towards, which upsets the conventional distribution and trade practices.

July 7, 2008
Source: Economic Times

Big players - plans and investments

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State of Competition in the Wholesale and Retail Sector

The study assesses the state of competition in the Philippine wholesale and retail sector,
focusing on the distribution of specialized goods and pharmaceutical products. It uses the
traditional tools of analysis like concentration ratios and price-cost margins in
determining the competitive state of the sector. The study also analyzes the other
dimensions in retail competition like price, geographical location, and retail product and
retail service. Industry data from the National Statistics Office were used in the analysis,
aided by a small-scale survey conducted in the Metro Manila area.

The department store and grocery sub sector appears to operate in a competitive
environment despite the presence of two big dominating firms in the market. No price or
quantity leader-follower behavior was observed, as validated by the tools used in the
analysis. On the other hand, one firm, whose strategic advantages include economies of
scope and space, retail image and consumer loyalty, dominates the distribution of
pharmaceutical products. Potential market entrants face these forms of challenges--
factors that are not regarded as anti-competitive and are welfare enhancing to the general
public.
The need for competition policy is recommended to guard against possible merger of the
giant firms in the department store and grocery sub sector. Any possible collusion
between the big firms could result to a monopolistic outcome.
The study observes that the apparent high price of pharmaceutical products is mainly
attributed to the manufacturing process, and not at the distribution of these goods. Hence,
it is recommended that a study analyzing the state of competitiveness of manufacturing
pharmaceutical products be conducted. Thing else that is timely, authentic Electronics
retail sector could get new competition

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Types of Retailing

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

Specialty Store:

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

Departmental Store:

Several products lines-typically clothing, household goods, home furnishings- with each
line operated as a separate department managed by specialist buyers or merchandisers.
Example: Sears, Bloomingdale's.

Supermarkets:

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


serve total needs for food, laundry & household maintenance products.
Example: Kroger, Safeway.

Convenience Stores:

Relatively small store located near residential area, open long hours, seven days a week
and carrying a limited line of high-turnover convenience products at slightly higher
prices.
Example: 7-Eleven, Circle K.

Discount Store:

Standard merchandise sold at lower prices with lower margins and higher volumes. True
discount stores regularly sell merchandise at lower prices and offer mostly national
brands.
Example: Wal-Mart, Kmart.

25
AIMS COLLEGE, Dharwad.
Off-price retailer:

Merchandise bought at less than regular wholesale prices & sold at less than retail; often-
leftover goods, overruns and irregulars obtained at reduced prices from manufacturers or
other retailers.

Factory outlets are owned and operated by manufacturers and normally carry the
manufacturer's surplus, discontinued or irregular goods.
Example: Mikasa (dinnerware), Dexter (shoes)

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


larger retail corporations.
Example: T.J.Maxx, Filene's Basement.

Superstore:

Averages 35,000 square feet of selling space traditionally aimed at meeting consumers'
total needs for routinely purchased food and non-food items. Usually offer services such
as laundry, dry cleaning, shoe repair, check cashing & bill paying.

A new group called "category killers" carries a deep assortment in a particular category
& a knowledgeable staff.
Example: Borders books & Music, IKEA.

Combination stores are a diversification of the supermarket store into the growing drug-
and-prescription field. Combination food & drug stores average 55,000 square feet of
selling space.
Example: Jewel & Osco stores.

Hypermarkets range between 80,000 and 220,000 square feet and combine supermarket,
discount & warehouse retailing principles. Product assortment goes beyond routinely
purchased goods & includes furniture, large & small appliances, clothing items and many
other items. Bulk display & minimum handling by store personnel with discounts offered
to customers who are willing to carry heavy appliances and furniture out of the store.

26
AIMS COLLEGE, Dharwad.
Hypermarkets originated in France.
Example: Carrefour and Casino (France), Pyrca, Continente and Alcampo (Spain).

Emerging trends in Indian organized retail sector


BPO industry in India
BPO (Business Process outsourcing) is one of the fastest growing segments of the
Information Technology Enabled Services (ITES) industry in India. Business Process
Outsourcing refers to the delegation of one or more IT-intensive business process to an
external provider that in turn owns administers and manages the selected process based
on defined and measurable performance criteria. The Indian BPO industry is constantly
growing and a lot of fortune 500 companies are outsourcing services to India. There are
several reasons for India’s emergence as one of leading outsourcing destinations. India is
very rich in educated and talented human resource. India is one of the pioneers in
software development. India has an excellent technical facilities and infrastructure for
setting up call centers. Time zone difference between India and America has also worked
to the advantage of Indian BPO industry. India has an 8-12 hour time zone difference
with respect to the US and other developed markets. Most of the Indian cell centers
servicing American customers have timings between 5:30 pm to 9:30 am this time zone
difference allows Indian companies BPO’s to service American clients by working in the
nights. last but not the least India has huge pool of English speaking workforce that
provides excellent voice based services at extremely competitive costs resulting in huge
savings for companies. Some of the leading BPO companies in India are

 GE capital.
 Converges
 Wipro Spectra mind.
 Dell
 ICICI One Source
 MphasiS.

27
AIMS COLLEGE, Dharwad.
Inflation in India
Inflation in India is at an acceptable level and remains much lower than in many other
developing countries. But off late prices of essential commodities such as food grain,
edible oil, vegetables etc have risen sharply and in the process driving up the inflation
rate.

Inflation is defined as a sustained increase in the general level of prices for goods and
services. It is measured as an annual percentage increase. As inflation rises the value of
currency goes down. The current rise in inflation has its roots in supply-side factors.
There was shortfall in domestic production vis-à-vis domestic demand and hardening of
international pieces, prices of primary commodities, mainly food items. Wheat, pulses,
edible oils, fruits and vegetables, and condiments and spices have been the major
contributors to the higher inflation rate of primary articles. The inflation was also
accompanied by buoyant growth of money and credit. While GDP growth zoomed to 9.0
per cent per annum, the board money (M3) grew by more than 20 per cent.

Inflation is calculated on the bases of Wholesale Price Index (WPI) while in other
countries it is calculated on Consumer Price Index (CPI).

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

There is a fantastic rise in the Indian organized retail sector in a very short period of time
between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector,
India has a chance of tremendous economic growth, both in India and abroad.

The emerging trends in the Indian organized retail sector are also adding up to the
development of the Indian organized retail sector. The relaxation by the government on
regulatory controls on foreign direct investments has added to the process of the growth
of the Indian organized retail sector.

28
AIMS COLLEGE, Dharwad.
The infrastructure of the retail sector will evolve radically in the recent future. The
emergences of shopping malls are increasing at a steady pace in the metros and there are
further plans of expansion which would lead to 150 new ones coming up in India by
2008. As the count of super markets is going up much faster than rate of growth in retail
sector, it is taking the lion’s share in food trade.

The growth of the Indian organized retail sector is anticipated to be heavier than the
growth of the gross domestic product. Alterations in people's lifestyle, growth in income
levels, and encouraging conventions of demography are proving favorable for the new
emerging trends in the Indian organized retail sector.

The success of this retail sector would also lie in the degree of penetration into the lower
income strata to tap the possible customers in the lowest levels of society. The demands
of the buyers would also be enhanced by more access to credit facilities.
With the arrival of the Transnational Companies (TNC), the Indian retail sector will
undergo a transformation. At present the Foreign Direct Investments (FDI) is not
encouraged in the Indian organized retail sector but once the TNC'S get in they inevitably
try to oust their Indian counterparts. This would be challenging to the retail sector in
India.

The trends to follow in the future:

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

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


regionally.

• The most encouraging format now would be the hyper marts.

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

29
AIMS COLLEGE, Dharwad.
Current Scenario
• A glimpse of the International Retail
• One of the world's largest industries exceeding US$ 9 trillion
• 47 global fortune companies & 25 of Asia's top 200 companies are retailers
• Dominated by developed countries
• US, EU & Japan constitute 80% of world retail sales.
• Biggest player in India is Pantaloon Retail India Limited.

Percentage of Organized Retail

USA - 85%

Taiwan - 81%

Malaysia - 55%

Thailand - 40%

Brazil - 36%

Indonesia - 30%

Poland - 20%

China - 20%

India - 3%

Key players

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

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

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

30
AIMS COLLEGE, Dharwad.
partnerships. New entrants like Reliance Retail Ltd and Wal-Mart are going to enter

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

BOARD OF DIRECTOR

Mr. Kishore Biyani, Managing Director

Mr. Gopikishan Biyani, Whole time Director

Mr. Rakesh Biyani, Whole time Director

Mrs. Veda Prakash Arya, Director

Mr. Shailesh Haribhakti, Independent Director

Mr. S Doreswamy, Independent Director

Dr. D O Koshy, Independent Director

Mrs. Anju Poddar, Independent Director

Mrs. Bala Deshpande, Independent Director

Mr. Anil Harish, Independent Director

31
AIMS COLLEGE, Dharwad.
Company Profile

Pantaloon Retail (India) Limited, is India's leading retail company with presence across
multiple lines of businesses. The company owns and manages multiple retail formats that
cater to a wide cross-section of the Indian society and is able to capture almost the entire
consumption basket of the Indian consumer. Headquartered in Mumbai (Bombay), the
company operates through 5 million square feet of retail space, has over 331 stores
across 40 cities in India and employs over 17,000 people. The company registered a
turnover of Rest 2,019 crore for FY 2007-08

It owns and operates multiple retail formats including Pantaloons, Big Bazaar, Food
Bazaar, Central, E-Zone, Fashion Station, Depot and many others.

Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail
chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain that
combines the look and feel of Indian bazaars, with aspects of modern retail, like choice,
convenience and hygiene. Food Bazaar, food and grocery chain and launch Central, a
first of its kind seamless mall located in the heart of major Indian cities, followed this.
Some of its other formats include, Collection i (home improvement products), E-Zone
(consumer electronics), Depot (books, music, gifts and stationary), All (fashion apparel
for plus-size individuals), Shoe Factory (footwear) and Blue Sky (fashion accessories). It
has recently launched its retailing venture, futurebazaar.com.
The group's subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon
Industries Ltd, Galaxy Entertainment and Indus League Clothing. The group also has
joint venture companies with a number of partners including French retailer Etam group,
Lee Cooper, Manipal Healthcare, Jaywalker’s, Gini & Jony and Liberty Shoes. Planet
Retail, a group company owns the franchisee of international brands like Marks &
Spencer, Debenhams, Next and Guess in India.

32
AIMS COLLEGE, Dharwad.
Pantaloon Retail is listed on BSE and NSE with a turnover of Rs 2,018 crores for
financial year ended 2007-08. Pantaloon Retail was selected as the Best of Best Retailers
in Asia by Retail Asia-Pacific Top 500 magazine in 2006.

Future Group

Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned to
cater to the entire Indian consumption space. The Future Group operates through six
verticals: Future Retail (encompassing all retail businesses), Future Capital (financial
products and services), Future Brands (management of all brands owned or managed by
group companies), Future Space (management of retail real estate), Future Logistics
(management of supply chain and distribution) and Future Media (development and
management of retail media).

Future Capital Holdings, the group's financial arm, focuses on asset management and
consumer finance. It manages two real estate investment funds (Horizon and Kshitij) and
consumer-related private equity fund, Indecision. It also plans to get into insurance,
consumer credit and other consumer-related financial products and services in the near
future.

Future Group's vision is to, "Deliver Everything, Everywhere, Every time to Every
Indian Consumer in the most profitable manner." One of the core values at Future Group
is, 'Indian’s' and its corporate credo is - Rewrite rules, Retain values.

Future Group Manifesto

“Future” – the word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. Future encourages us to explore areas yet unexplored, write rules
yet unwritten; create new opportunities and new successes. To strive for a glorious future
brings to us our strength, our ability to learn, unlearn and re-learn, our ability to evolve.

We, in Future Group, will not wait for the Future to unfold itself but create future
scenarios in the consumer space and facilitate consumption because consumption is

33
AIMS COLLEGE, Dharwad.
development. Thereby, we will effect socio-economic development for our customers,
employees, shareholders, associates and partners.

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

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

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

We will not just spot trends; we will set trends by marrying our understanding of the
Indian consumer to their needs of tomorrow.

It is this understanding that has helped us succeed. And it is this that will help us succeed
in the Future. We shall keep relearning. And in this process, do just one thing.

Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by the
Pantaloon Group. It works on same the economy model as Wal-Mart and has had
considerable success in many Indian cities and small towns. The idea was pioneered by
entrepreneur Kishore Biyani, the head of Pantaloon Retail India Ltd.

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

Cities where stores are located are,

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


Coimbatore,Palakkad, Kolkata, Delhi, Durgapur, Ghaziabad, Gurgaon,Hyderabad,
Indore, Lucknow,Kanpur, Mangalore, Mumbai, Nagpur, Nasik, Panipat, Pune, Rajkot,
Surat, Thane, Thiruvananthapuram, Vishakhapatnam.
Big Bazaar is not just another hypermarket. It caters to every need of customer’s family.
Where Big Bazaar scores over other stores is its value for money proposition for the
Indian customers.

34
AIMS COLLEGE, Dharwad.
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.

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

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AIMS COLLEGE, Dharwad.
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.

36
AIMS COLLEGE, Dharwad.
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.

Store study
Big Bazaar

Akshay centre, Akshay Park

GOKUL ROAD, HUBLI-580030

Phone No: 0836-4266555

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

nature of products. There are 21 departments in this store

and 120 Human Resource employed.

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

has long product range and product depth. Ones a customer

get inside the store he will find all kinds of products

37
AIMS COLLEGE, Dharwad.
available that may be Food item, Cosmetic, Electronic,

Garments, Furniture etc.

Because of these features it has a very good reputation in

that area and customers who are residing far away and in

other areas they also visit the store.

Level 1
Departments with their Products

1) Depot:

General books

Office stationary

Children stationary

Film VCD’s & DVD

Major Brands in this department

For VCD’s & DVD’s:

38
AIMS COLLEGE, Dharwad.
Moser bear Anand Audio

T-Series Jhankar

Yesh Raj Films Sarvotham

For Office stationary

Stick Kangaroo

Apsara Built

Kores Matrix

Fiber Castle For Books

Depo exposes Penguin

Park Roopa

Cello Bentam

3M Classic

2) NBD (New Business Development)

This is the department, which is introduced because the

space is available in the store after making arrangement for

other department and this department consists of the

products, which are not introduced and are not regular

goods.

Wrist Watches

Fashion Jewelry

Sunglasses

39
AIMS COLLEGE, Dharwad.
Auto accessories

Major Brands in this department

For Wrist Watches

Escort

Lumax

3) Gold Bazaar

Navaras Gold Jewelry

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

profits on percentage basis

4) Mobile Bazaar

All kinds of Handsets ranging from Rs 1000 to 25000 of

different companies

Mobile accessories

Coddles phones & land line phones

Major Brands in this department

Nokia

Sony Ericson

Motorola

Samsung

40
AIMS COLLEGE, Dharwad.
Beetal

Pacetel

5) Star Sitara

Cosmetics

Fragrances

Herbals

Pharmaceuticals

Major Brands in this department

For Fragrances Shehnaaz Hussain

MKD distributors Biotech

G R fragrances For Cosmetics

BCPL Color Bar

Nabed Lakme

Intercraft May Billine

Indo French Revlon

For Herbals Streets wear

Lotus Vega and roof

VLCC

6) Shringar

Bangles

Jewelry sets

Bracelets

Hair Accessories

41
AIMS COLLEGE, Dharwad.
Bindies

Chains

7) Ladies Department

Sarees MSIL

Dress materials Jeans


Under garments Bretni
Nightwears DJ & C
Western wears Ruff & Tuff
Major brands in this Gelluse
department
Accessories
Shila
Johnson and Johnson
Shristhi
Paris beauty
Kalakruthi
VIP

8) Men’s Department

Formals (Shirts & Pants)

Casuals (Shirts & pants)

Party wears

Jeans T-Shirts

Others Accessories (Lungi Dhoti etc)

Fabrics (Cut pieces)

Suits & Blazers

Levi’s Signature garments

Major brands in this department

42
AIMS COLLEGE, Dharwad.
DJ & C

Ruff & Tuff

Levis

Night hood

Peter England

Raymond’s

9) Furniture Department

Dining Table

Bedroom Accessories

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

Mattresses

10) Footwear Bazaar

Sports Shoes Ladies Casuals

Formal Shoes Ladies Chapple

Casual Shoes Ladies fancy Sleepers

Men’s Sandals Ladies Sports shoes

Ladies Sandals

Major brands in this department

Reebok

Nike

Puma

Loto

43
AIMS COLLEGE, Dharwad.
Van hussain

Hallen solly

New balance

11) Home Décor

Flower vase Photo Frames

Artificial Flowers Assorted color Stones

Religious gifts Frame Paintings

Candle stand Water falls (artificial)

Umbrellas Birthday items

12) Home line

bed sheets, Pillows , bed spreads

Towels, Yellow dust

Razai , Carpets, Cushion covers

Chair bags

Major brands in this department

Riviera

Oriental

Orchid

Home collection

Home expression

Sameera

Home style

44
AIMS COLLEGE, Dharwad.
Sweet dreams

Modern

13) Toys Dept

Soft toys

Educational toys

Board games, Action figures

Dolls

Major brands in this department

Fun school

Venus

Mitashi

Creatives

United

Shadilal & Sons

Flamingo

14) Kids department

Boy’s section

T-Shirts, Trousers, jeans

Cotton shirts, Cargo, Cod raw

Ethic wears

Co ordinates

45
AIMS COLLEGE, Dharwad.
Rain cotes

Girls Section

Ethic wears

Co- ordinates

Cotton frocks

Western wears

Major brands in this department

Tara Rum Pum collection

Disney

Pink And Blue

Power ranges

Promo

Infants

Jhablas Bed items

Vests Baba suits

Bibs feedings Frocks

15) Electronic Bazaar

Televisions

Sound System

Refrigerators

Washing machines

Microwave

46
AIMS COLLEGE, Dharwad.
Rice cookers

Juicers

Irons, Mixers & Grinders

Major Brands in this department

Sony Creative

Vidiocon Philips

LG Samsung

HCL Onida

IBM Whirlpool

16) Luggage

Travel bags VIP

Trolleys American Tourist

Bags: Schools, Collage Aristocrat

Ladies purse Safari

Suitcase Milestone

Level 2

Food Bazaar

1) Beverages

Soft drinks

Mineral water

Juices

47
AIMS COLLEGE, Dharwad.
Health drinks

2) Confectionaries

All kinds of Chocolates & Confectionaries

3) Fruits & Vegetables

4) Staples

Dal, Rice, Atta, Rava items

Oil’s, Masala items

Dry fruits

Spicy items

Ready meals

Breakfast cereals

5) Process Dept

Health drinks

Ready to eat

Corn flaks, Chips

Instant mixes

Soups, Bread items, pickle

Spreads

Major brands in this department

For Beverages

Maaza

Slice

Bisleri

48
AIMS COLLEGE, Dharwad.
Cocacola

Pepsi

Thumps up

Apply

For confectionaries

Dairy Milk

Nestle

Parle

For Staples

Ashirwad

Pillsbury

Dhara

Sunflower

Non-food Dept
6) Home care

Phenyl, Detergents

Dish wash, Tissue papers, Scratch

Shoe cases, Fresh wrap,

7) Personal care

Soaps, toothpaste, Shampoo

Deodorants, Body spry

49
AIMS COLLEGE, Dharwad.
Baby food, Talcum powder

Men’s apparel

Major Brands in this department

For Home care

Lysole

HLL

Nirma

For Personal care:

Colgate

Pepsodent

Parachute

Lux International

8) Plastics, Utensils, Crockery (PUC)

a) Plastics

Buckets

Casseroles

Containers

Boxes

Flasks

Bowls

50
AIMS COLLEGE, Dharwad.
Jugs & sippers

Bottles & Mugs

Major brands in this department

Milton

Dream Line

Cello

Poly set

Chetan

b) Utensils

Plates, Bowls, Glasses

Non-stick Cookware’s

Kitchen tools

Tiffin Boxes

c) Crockery

Crockery cutlery

Table Materials / Napkins

Casseroles

Dinner sets

Wine, Juice Glasses

Future Plans of BIG BAZAAR

51
AIMS COLLEGE, Dharwad.
Recently they are interested to expand their retail business

in Mysore and along with that they are interested to

establish two retail outlets in Gulbarga District.

Big Bazaar plans 300 stores by 2010-11


20 May, 2009, 1722 hrs IST, PTI

NEW DELHI:

Kishore Biyani-promoted Future Group's retail chain Big Bazaar is planning to have 300
hypermarkets in the country by 2010-11.

The company is also mulling to increase its annual turnover to Rs 13,000 crore by 2010-
11, up from Rs 3,600 crore last fiscal on the back of its expansion.

"We started with our first store in October 2001 and have now crossed the hundred mark
with three stores opened today in Pune, Cut tack and Delhi. Our plan is to increase the
number of our stores to 300 by end of the 2010-11 fiscal," Big Bazaar Chief Executive
Officer Rajan Malhotra said.

He said the company would have another 35 odd stores by end of its fiscal in June 2009
to take the total number to 135.

52
AIMS COLLEGE, Dharwad.
"We are targeting a turnover of Rs 5,000 crore this year and have plans for reaching a
figure of Rs 13,000 crore by 2010-11 fiscal," Malhotra said.

He added that the company would be looking at both the metros and Tier I cities, besides
Tier II and smaller cities, for the expansion.

The Big Bazaar hypermarkets had a footfall of 11 crore last fiscal and the company is
aiming for an increase in the numbers up to 14 crore this year. The size of its
hypermarkets on average is 30,000 sq ft to one lakh sq ft.

The company is also launching a special festive season 'One in a Lifetime' offer across all
its stores on October 1-5. The offer would run in all Big Bazaar format stores on apparels,
footwear, accessories and general merchandise, he added.

Organizational Structure (Zonal)

President

Vice President

53
AIMS COLLEGE, Dharwad.
Marketing HR Category Manager Finance
Manager Operation

Manager Manager
Head

Marketing HR Category Finance


Head Store manager
Head Head Head

Store Structure

Store Manager

Assist Store Manager

54
AIMS COLLEGE, Dharwad.
Dept Manager Human Resource
Administration Info Tech

Visual Merchandise
Marketing

Assist DM
Cashing Dept

Maitanance
Team Leader Assistant HR

Security

Team Members

Cashier
House
keeping

CSD
(Customer Service desk)

VISSION

55
AIMS COLLEGE, Dharwad.
“TO EMERGE AS THE BEST AND THE

MOST PROFITABLE RETAILER IN INDIA”

MISSION

"TO SPEARHED HIS COMPANY TO BE THE

FINEST AND THE MOST PREFERRED

CHAIN IN RETAILING”

Big Bazaar on an expansion spree


Countries leading retail chain Future Group is going for a
major expansion of its Big Bazaar chain of outlets, with the
company planning to take the total number of stores to
150 by June 2009.
Big Bazaar presently has 92 outlets across the country and
has plans to add over 45 stores by the end of June 2009,
Future Group Director Rakesh Biyani said. Besides, the
company is also exploring for a 50:50 joint venture with
International Group for its kidsWear segment.

56
AIMS COLLEGE, Dharwad.
"We are exploring various proposals and options to
maximize our efficiency and operations," he said on the
sidelines of the Pure & Play Retail Summit here. When
asked
About the media reports regarding Future Group plans' to
split the company into two specialized segment consisting
of front - end and back - end retail, Biyani refused to
Comment on the issue.
"The company cannot comment on speculated stories run by
sources. There is no official
Announcement or decision in this regards," Biyani said.
He added that the company’s expansion would be fully
funded, with its own capital.

"The funding plans are being done by preferential allotment


and we have already decided about the amount, " he said.
Future Group is also starting its own ethnic women's
wear stores and the first one will start by August this year.

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


various cities and the stores will be on 15,000-16,000 sq
feet," Biyani added that the company is planning to grow
by 15-20 per cent in apparel wear and double its sales of
ethnic women wear in the next few years. The company is
also looking for an increase of 50-55 per cent in its total
sales over the next five years.

SECURITY MEASURES
Pantaloon Apparel, food, etc. POS: Home-grown solution
SAP Retail
BI and Data warehouse: Congo’s (process of evaluation)

57
AIMS COLLEGE, Dharwad.
handheld scanners at Food Bazaar
VPN: Company-wide network linking all the branches
They have loss prevention cell (LPC) that will be looking
after the safety measures in the organizations. There are 5
members in each store.

They have 3 types of tags


4. Hard tag
5. Soft tag
6. String tag
These tags will be attached to the materials. If any person
will take that without paying bill some process will be taken
by the LPC.
Process: In case any theft is done in big bazaar they will
catch the person & they will fine him and they will fill one
form that he had done the mistake & they will take all 10
fingers thumb impression.

Departmental Managers
There are 24 departments in this store like Electronic dept,

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

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

Footwear Dept, and Home Décor Dept. Each department

will be assigned with targets, which have to be achieved

within the assigned period that may be of Daily, Weekly,

monthly and yearly.

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AIMS COLLEGE, Dharwad.
Each department has a department Manager & Assist DM.

Their job is concerned mainly with sales. They look after

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

Dept managers ADM, Team members work under

coordination & cooperation.

They are also responsible for the placing orders of the goods

incase of shortage here they have to send indent specifying

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

report periodically the performance of the department to the

store manager.

Administration

Store administration comes under Store Manager its

functions are store maintenance, House Keeping, Security

etc. Store manager has to control all the activities within the

store. He has to communicate all the departmental managers

and assistance departmental managers regarding any new

offers, regarding their targets etc. Sore manager has to see

the operation at the store is being performed in coordination

and cooperation he has to communicate with the corporate

office regarding any changes being applied at the store.

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AIMS COLLEGE, Dharwad.
Information Technology

This department is responsible for the maintenance of the

systems of the stores. All billing machines their functioning

networking with the master machine etc. If there is any

problem with the machine then this department comes into

function.

Cashing Dept

This department is responsible for the collection of sales

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

department all billing machines of the stores comes. The

sales amount collected throughout the day by the cashier’s

has to be submitted to this department.

Marketing

This dept is responsible for the marketing of the store in

different media like Television, Newspaper, and Holdings

etc. the authorized person has to visit different companies

and has to look after for tie-ups etc. The executives arranges

rally’s

Visual Merchandise

This department is responsible for the product arrangement

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

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AIMS COLLEGE, Dharwad.
of this dept is it divides the store into several departments

based on the nature of the product and within the

department it decides how the products should be arranged

by keeping in mind the customer should not suffer.

Human Resource

Human Resource basically works for the welfare of the

employees. It acts to organize the manpower and work to

increase productivity of the employees. Basically Human

Resource performs the functions of Recruitment, Hiring,

Induction, Training and development, Performance

appraisal of the employees. Human Resource studies and

involves in inter life cycle of the employee from his joining

the organization to till his end from the organization.

CSD (Customer Service Desk)

This is the separate unit, which is mainly focuses on

customer service like if the customer find difficulty in

finding any product, Customer complaints any

replacement, Customer assistance etc.

Supply chain management:

Company’s supply chain was split into the broad categories


of fashion, food and general merchandise, leading to a more
focused approach to businesses, improved service levels,
better customization of logistic and supply chain related
needs, and finally deliverables. Further, with new concepts

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AIMS COLLEGE, Dharwad.
and lines of business being included during the year, as well
as strategic alliances with other companies, the process of
gradually integrating them have either been completed or
close to completion.
The existing supply chain design consists of a Master
Distribution Centre (MDC) and city warehouses upgraded
to Regional Distribution Centers (RDCs) and additional
Distribution Centers (DCs). The company had one MDC
and 16 RDCs and DCs
The company has also appointed leading international and
domestic players in the warehouse infrastructure and
technology front.
The company also introduced the concept of reverse
logistics that looks at setting up a process to transfer
finished goods from the consumption point to the point of
origin.
This reduces wastage and can lead to significant cost
savings. On the technology front, all the existing MDCs,
RDCs and DCs are live on SAP, thereby facilitating
standardization, real time data management and reporting,
as well as optimum operational efficiencies.

My Learning Experience in the company

I am very happy to express my practical experience at Big

Bazaar. Before going to share my practical feelings

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AIMS COLLEGE, Dharwad.
regarding project work. I would like to say heartily thanks

to Adept Institute of Management studies. Who have given

one of the good opportunity to learn a knowledge in

practical environment and along with that I would like to

say heartily thanks to company guide Mr.Arif ADM

(Assistant Department Manager) of big Bazaar.

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

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

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

customer buying behavior and taste and priority preferences

of customer towards retail sector and competition level in

the sector and along with that i had learn how management

is responsible for increasing sales and revenue of the

company And also i learned what management make to

attract the customer there are several promotional strategy

which influencing purchase decision of buyers and also I

learned functional department like HR, Finance and

Marketing.

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

out business process in a systematic manner in the

competition level.

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AIMS COLLEGE, Dharwad.
This practical knowledge of project made me to perfect in

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

thanks to AIMS College Dharwad and company guide

Mr.Arif

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

store is been conducted about its Management team its

structure the number of departments which all brands does

the store has, who are its suppliers about its warehouses.

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

opinion on objectives a set of 100 questionnaires were

designed of 10 questions and response is collected from the

customers who are visiting the store. For data collection

Random Convenient sampling method was adopted

For this project the area of research is Hubli.

Objective of the project

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AIMS COLLEGE, Dharwad.
To know the effective promotional strategy
which influence customer to purchase a product
of Big Bazaar.

Sub-objectives
1) To know the promotional strategy of big bazaar
2) To know the relationship between promotional

strategy and buying decision

Data Collections Methods

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


data and primary data. Primary data has been used
abundantly for the study. Well-structured questionnaires
were prepared & the survey was undertaken. Feedback for
the display has been taken by asking questions &
observation has also done to gather primary information.

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


various journals, books, and websites & from company
managers.

Primary data Field Survey

Secondary data Big Bazaar records

Text Books and journals

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AIMS COLLEGE, Dharwad.
Company Websites

Area of research: Hubli

Research approach: Survey method

Sampling Method
Since the study is restricted to Retail sector, all the

functional Departments of Big Bazaar and the respondents

are found at the store only so according to the convenience

randomly they are being picked so sampling method is used

in this study is Random Convenient Sampling.

Sampling

Sample size : 100 respondents


Sampling Method : Random Convenience sampling
Sample Unit : Customer of Big bazaar

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AIMS COLLEGE, Dharwad.
Measuring Tool : Questionnaire

67
AIMS COLLEGE, Dharwad.
ANALYSIS AND

INTERPRETATION

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AIMS COLLEGE, Dharwad.
Q No 1: Which store first comes to your mind when you

think of purchasing a product?

RESPONSE NO OF RESPONDENTS PERCENTAGE


Big bazaar 77 77%
Vishal mega mart 15 15%
Others retailer 8 8%
Total 100 100%

ANALYSIS:

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

1st preference to Big Bazaar 15% of them gave preference

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

INTERPRETATION

Most of the customers are given 1st preference to Big

Bazaar compare to other retailers

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AIMS COLLEGE, Dharwad.
2) From which source did you come to know about Big
Bazaar outlet.
RESPONSE NO OF RESPONDENT PERCENTAGE
T .V Advertisement 23 23%
Hoardings 34 34%
News paper 31 31%
Buspaintings 12 12%
Total 100 100%

ANALYSIS:

From the above graph i can come to know that, among 100
respondents, 23% of them come to know about Big Bazaar
through TV advt., 34% of the respondents told that through
Hoardings, 31% of them through news paper , and 12%
came to know through bus painting

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AIMS COLLEGE, Dharwad.
INTERPRETATION. Hoarding is the most influencing
factor which is responsible for awareness of Big Bazaar.

3) Are you aware of promotional offers conducted by


big bazaar?

Response No of respondents Percentage


Yes 87 87%
No 13 13%
Total 100 100%

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AIMS COLLEGE, Dharwad.
ANALYSIS: Among the 100 respondents, 87% of them
they are aware of promotional offers, 13% told they have
told that they are not aware.

INTERPRETATION:

87% of customers are aware of promotional activity in the


big bazaar.

4) Please choose below the factor which attracted you

most at the Big Bazaar.

Rates No of respondents percentage


Offer 51 51%
Service 9 9%
Quality 23 23%
Availability of products 17 17%
Total 100 100%

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AIMS COLLEGE, Dharwad.
Analysis

Among 100 respondent 51% of customer they have told

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

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

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

for availability of products

Interpretation:

Most of the people attracted towards big bazaar only for the

promotional offers. So offer is the most influencing factor

among those.

5) Which of the following factors influence in your


purchase decision?

Rates No of respondents percentage


Offer 43 43%
Service 11 11%
Quality 21 21%
Effective advertisement 25 25%
Total 100 100%

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AIMS COLLEGE, Dharwad.
ANALYSIS:

Among 100 respondent 43 of them told that offer is


responsible for their purchase decision and 9 of them told
that service and 23 of them told that quality an only 25 of
them told that effective advertisement

INTERPRETATION:

Among those factor offer is the emerging factor which is


responsible for purchase decision of buyers

6) Do you think the promotional activity of Big Bazaar

gives you clear message?

Response No of respondents Percentage


Yes 77 77%
No 23 23%
Total 100 100%

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AIMS COLLEGE, Dharwad.
ANALYSIS:

Among 100 respondent 77 of them told that the promotional


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

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

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


future shopping

Response No of respondents Percentage


Yes 98 98%
No 2 2%
Total 100 100%

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AIMS COLLEGE, Dharwad.
ANALYSIS:

Among 100 respondents 98 of them told that they will


advise others to visit big bazaar in future shopping and only
2 of them told that they do not advise.

INTEPRETATION:

Most of the respondent they would like to advise others in


future shopping

8) Looking at the promotions of Big Bazaar does your


purchase pattern changes

Response No of respondents Percentage


Yes 83 83%
No 17 17%
Total 100 100%

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AIMS COLLEGE, Dharwad.
ANALYSIS:

Among 100 respondent 83 of them told that these


promotional offers changes their purchase pattern and
only 17 of them told do not change.

INTERPRETATION:

Most of the customer believed that promotions is


responsible for their purchase decision

9). would you like to make your purchase under


unexpected offers?

Response No of respondents Percentage


Yes 94 94%
No 6 6%
Total 100 100%

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AIMS COLLEGE, Dharwad.
ANALYSIS:

Among 100 respondents 94 of them they are interested


to buy products under unexpected offers and only 6 of
them told that they do not buy.

INTERPRETATION:

Most of the customer interested to buy under


unexpected offers only.

FINDINGS

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AIMS COLLEGE, Dharwad.
SURVEY FINDINGS
INFORMATION SEARCH AND EVALUATION
PROCESS

• From the sample size of 100 samples it is found that

the Brand is well positioned in the minds of

customers because 77% of the respondent’s

preference is Big Bazaar for their shopping.

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

they came to know through T V advertisement and

34% of people told that through hoardings 31% of

them told that through news paper and finally 12%

of them highly agree that through bus painting.

• Among the 100 respondents, 87% of them told that

they are aware of promotional activities of big

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

aware of promotional activity of big bazaar .

• Among the 100 respondent 51% of them told that

they are attracted towards big bazaar only for the

offers 9% of them told that service and 23% of them

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

to availability of products

• Among 100 respondent 43% of them agree that

offers is the most emerging factor influencing

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AIMS COLLEGE, Dharwad.
purchase decision and only 11% of them told that

service 21% of told that quality and finally 25% of

them told that effective advertisement is responsible

for the purchase decision.

• Among 100 respondent 77% of them told that

promotional activities of big bazaar gives clear

message and 23% of them told that they did not

understood.

• Among 100 respondent 98% of people interest to

advise others in future shopping and only 2% of

them not interest to advice.

• Among 100 respondent 83% them told that

promotions of big bazaar changes their purchase

pattern and only 17% told that does not changes.

• Among 100 respondent 94% of them told that they

are interested to buy products under unexpected

offers and 6% of told that they do not buy.

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AIMS COLLEGE, Dharwad.
Recommendations

• Big bazaar should keep offers in regular intervals so

that there should not be a long term gap, because

offer is the most influencing factor which is

responsible for customer purchase decision.

• And they also concentrate on T V advertisement

they should show ads and promotional offers in a

regular interval in three languages like Kannada

Hindi English.

• Hoarding should be placed uncovered area.

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AIMS COLLEGE, Dharwad.
CONCLUSION

Indian retail sector is witnessing one of the most hectic


Marketing activities of all times. The companies are
fighting to win the hearts of customer who is God said by
the business tycoons. There is always a ‘first mover
advantage’ in an upcoming sector. In India, that advantage
goes to “BIG BAZAAR”. It has brought about many
changes in the buying habits of people. It has created
formats, which provide all items less than one roof at low
rates.

The consumer’s preferences are changing & they are


moving from Traditional Kirana stores to Modern Retail
outlet. It’s the main challenge to the Modern retail outlets to

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AIMS COLLEGE, Dharwad.
attract the customers towards them from that of competitors.
To attract more customers companies have to carry out the
promotional activities in unique way. BIG BAZAAR has
maintained that uniqueness & has succeeded in attracting
customers.

The promotional activity of the company, which famous as


Less Price than others as it says ‘Nobody Sells Cheaper
and Better!’ is made its place in minds of customer. As the
competition is becoming stiff in the market the activities
conducted by the company are unique, that have brought
fruitful result to the company. Among them sales
Promotions is one of the leading activity or unique among
all other activities & has high influence on the customer
walk-in.

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

• The time constant was a limiting factor, as more


time required carrying out study on other aspects of
the topic.

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AIMS COLLEGE, Dharwad.
• The result and analysis based on the customer
survey method and small sample size has taken
only 100

• Findings are related to particular areas.

ANNEXTURE
“A STUDY ON THE EFFECTIVE
PROMOTIONAL STRATEGY
WHICH INFLUENCES
CUSTOMER TO PURCHASE
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AIMS COLLEGE, Dharwad.
A PRODUCT OF BIG BAZAAR”

Questionnaire

Name: ___________________ Contact No:


___________________

Address: _____________________

1) Which store first comes to your mind when you


think of purchase a product.?
a: Big Bazaar b:Vishal mart
c: other retailer

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


Bazaar outlet?

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


c; bus paintings d. news paper

3) Are you aware of promotional activities conducted


by Big Bazaar in Hubli.?
a. Yes b. No.

4) Please choose from below the factor which


attracted you most at Big Bazaar?

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AIMS COLLEGE, Dharwad.
a. Offer b. service c. quality
d.availability of products

5) Which of the following factors influence in your


purchase decision.?

a. Offers c. Quality of
products
b. Effective services d. Effective
advertisement

6) Do you think the promotional activity of Big Bazaar


gives you the clear message? ?
a. Yes b. No

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


shopping?

a. Yes b. No

8. Looking at the promotions of Big Bazaar does your


purchase pattern changes?

a. Yes b. No

9. Would you like to make your purchase under


unexpected offers?

a. Yes b. No

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AIMS COLLEGE, Dharwad.
10) Any valuable suggestion

………………………………………………………………

……………………………

Signature of Customer

Bibliography

Reference Books
o Marketing Management: Philip Kotler
o Advertising and Sales: Promotion Belch and
Belch
o Retail Management: Bajaj and Srivastav
o Research Methodology: Cooper and Schindler

JOURNALS AND MAGAZINES

Business World

Business Today

Websites
www.google.com

www.pantaloon.com

www.wikipedia.com

www.timesofindia.com

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AIMS COLLEGE, Dharwad.
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AIMS COLLEGE, Dharwad.