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A Study on Buying Behaviour of Customers in Big Bazaar in Jaipur

Submitted to: Xcellon institute-School of Business

Mentor: Prof. Jeetendra Sharma Submitted by: Shilpi Bishnoi Date: July 31, 2012

Project report on A

Study on Buying Behaviour of Customers in Big Bazaar in Jaipur

Name of Student: Shilpi Bishnoi Programm: PGPGBM Name of Company: Big Bazaar Address: Big Bazaar, City Square Mall Near Gopalpura Byepass, Jaipur(Raj.) Name of Company guide: Mr. Neelesh Jain Designation of company Guide: Marketing Manager of Rajasthan Contact detail of company Guide: Phone no. : 09309037432 E-mail: neelesh.jain@futuregroup.in Mentors Name: Prof. Jeetendra Sharma Submitted to: Xcellon institute- School of business

A report submitted In partial fulfillment for the award of the Post Graduate Program in General Business Management (2011-2013) Ahmedabad Date: July 31, 2012


I take this as an opportunity to thank with bottom of my heart all those without whom the journey of doing my project would not have been as pleasant as it has been to me. Working on my project was a constant learning experience with all sweat and tear which was its due but not without being richly stimulating experience of life time. I am very thankful to MR. NEELESH JAIN ( Company guide) for giving me their valuable advice and guidance towards fulfillment of the project For any project to be a success, it is very important to get the right guidance and support which I got from my Faculty Guide PROF. JEETENDRA SHARMA. I express my gratitude to my faculty guide for inspiring me throughout the project. Finally I would like to convey my heartiest thanks to all my well wishers for their blessing and co-operation throughout my study. They boosted me up every day to work with a new and high spirit. SHILPI BISHNOI

Acknowledgment3 Executive summary6 Objective of the study....9


7-10 8 9 9 9 10 11-43 12 14 15 17 18 21 27 31

i) ii) iii) iv) v)

Introduction Objectives of the study Scope of the study Importance of study Research Methodology

CHAPTER-II i) ii) iii) iv) v) vi) Emerging Trend In Organized Retailing Indian Retail Industry Analysis FDI Policy In Indi Growth & Evolution Of Indian Retail Sector Challenges of Retailing In India Challenges & Attractions For Global Retailers

vii) Future Group viii) Big Bazaar

CHAPTER-III i) ii) Data collection Data analysis and interpretations

43-69 43 46 69-74 4


i) ii) iii)

Findings of research Recommendations Task assigned, experience

69 70 70

CHAPTER-V i) Limitations of the study

74-75 61 62 62 67

ANNEXURE(S) i) Questionnaire



The report will help in understanding the concept of Project financing, its methods and needs in the form of different committee recommendations. Further this report is divided into various chapters depicting the study done. Chapter 1 contains the basic introduction of the retail sector and the introduction about the company, scope and also the importance of the study. It also includes the research methodology. It gives the overall view of the report. Chapter 2 contains the theoretical perspective. Theoretical perspective is a wide topic, giving the details of the project. Chapter 3 contains the data which was collected and also the analysis and the interpretations completed. This is the data collected from a sample size of 30 customers Chapter 4 contains the findings of the research, recommendations and the conclusion part of the previous chapter. It also contains the task assigned and the learning part of the internship Chapter 5 contains the limitations of the study. Further the report concludes key learnings from summer Internship project, experiences and conclusion of the report. In this study I will try to find out the present scenario of retail market in India. This project will give focus on the global scene to retail industry and what will drive the growth of industry in the future.


i) ii) iii) vi)

Introduction Objectives of the study Scope of the study Importance of study


As customers tastes and preferences are changing, the market scenario is also changing from time to time. Todays market scenario is very different from that of the market scenario before 1990. There have been many factors responsible for the changing market scenario. It is the changing tastes and preference of customer which has bought in a change in the market. Income level of the people has changed; life styles and social class of people have completely changed now than that of olden days. There has been a shift in the market demand in todays world. Technology is one of the major factors which is responsible for this paradigm shift in the mark. New generation people are no more dependent on haat market and far off departmental stores. Today we can see a new era in market with the opening up of many departmental stores, hyper market, shoppers stop, malls, branded retail outlets and specialty stores. In todays world shopping is not any more tiresome work rather its a pleasant outing phenomenon now. My study is based on a survey done on customers of a hypermarket named big bazaar. Big bazaar is a new type of market which came into existence in India since 1994. It is a type of market where various kinds of products are available under one roof. My study is on determining the customers buying behavior of customers in big bazaar and the satisfaction level of customers in big bazaar. My study will find out the current status of big bazaar and determine where it stands in the current market. This market field survey will help in knowing the present customers tastes and preferences. It will help me in estimating the customers fut ure needs, wants & demands.


1. To find out the buying behavior of the customers coming in to Big Bazaar in Jaipur. 2. To determine the current status of Big Bazaar. 3. To find out the customers response towards Big Bazaar. 4. To study the satisfaction level of customers in different attributes of Big Bazaar. 5. To identify main competitors of Big Bazaar.

The scope of this research is to identify the buying behavior of customers of Big Bazaar in Jaipur. This research is based on primary data and secondary data. Due to time constraint only limited number of persons contacted. This study only focuses on urban buying behavior of customers because the research conducted in Jaipur. The study does not say anything about rural buying behavior of customer because rural norms/status/attitude & acceptance of the rural customers differs with urban customers. The scope of research is limited for Jaipur. It provides help to further the research for organized retail sector in Jaipur. It aims to understand the skill of the company in the area like technological advancement, competition in management.

The study shows customers buying pattern with Big Bazaar in Jaipur. Its provide guideline for further research in Jaipur for organized retail. Research says about customer buying behavior towards Big Bazaar in Jaipur. The study shows rate of customer satisfaction level with Big Bazaar for Jaipur. The research is also important to identify Market size, growth and Market Potential of Big Bazaar in Jaipur. The research shows future Scenario of Big Bazaar in 9

current perspective. The study shows Opportunities and challenges for Big Bazaar respect of internal & external environment. Research says about main competitors in the field of organized retail sectors. The study provide guideline to further extension of Big Bazaar in Jaipur .The study provide help to know the customers satisfaction with Big Bazaar stores.

Technology, customers tastes and preferences play a vital role in todays generation. Research Methodology is a set of various methods to be followed to find out various information regarding market strata of different products. Research Methodology is required in every industry for acquiring knowledge of their products.

The study is exclusively done in the area of marketing. It is a process requiring care, sophistication, experience, business judgment, and imagination for which there can be no mechanical substitutes.

Research Design Exploratory research Sampling Design: Non Probability sampling - Convenience sampling Sample Size: 30 Customers who visited store Data Collection: Data is collected from 30 customers through personal interaction. Specific questionnaire is prepared for collecting data. Data is collected with mere interaction and formal discussion with different respondents. Some other relevant information collected through secondary data

The market survey about the techniques of marketing and nature of expenditure is carried out by personally interacting with the potential customers in Big Bazaar.


Theoretical Perspective


Theoretical Perspective Retailing

The Indian consumer could well be crowned King with all economic indicators in the right place. Queuing up for the coronation ceremony are a multitude of global companies that are looking at India as the next consumer market powerhouse. And it seems to be the retail sector that will give the desi consumer royal status. Retailing is the final step in the distribution of merchandise, the last link in supply chain connecting the bulk procedures of commodities to the final consumers. Retailing in India is thoroughly unorganized. There is no supply chain management perspective. According to a survey b y AT Kearney, an overwhelming proportion of the Rs. 400,000 crore retail market is UNORGANISED. In fact, only a Rs. 20,000 crore segment of the market is organized.

Emerging trends in organized retailing:

Over the last five years, a number of large business groups such as Tatas, RPG, Rahejas and Piramals has set up stores/malls and built businesses within retail. Thesem include the Rs1.9bn Food World - a leading supermarket chain set up by RPG; the Rahejas Rs1.8bn Shoppers Stop - a multi-brand departmental outlet and the Crossroads Mall set up by the Piramals. While many of these initiatives were initially driven by the need to use existing real estate, they are beginning to assume the contours of a serious business today. Fuel retailers, notably BPCL and HPCL are also expanding their presence from fuel retail to grocery and convenience stores. Suitability of location, optimal utilization of real estate, diversifying business to reduce reliance on the commodity nature of fuel retail business and improve margins are the key factors that has lead fuel majors to enter into the retailing. Also, existing family owned businesses are expanding their businesses. The more successful of them are the Nilgiris - a Bangalore base food retailer, Viveks - a 40-year old Chennai based chain selling consumer durables and Narulas - the food chain in North India. Interestingly, manufacturers are also looking for forward integration and are building chains around brands. Brands in apparel, footwear and durables have driven the growth of specialty chains and upgraded existing multi-brand outlet.


Theme for a mall:

Although the retail sector in India highly fragmented and consists predominantly of small, independent, owner-managed shops, it happens to be the country's second largest employer after agriculture. The country is currently witnessing a boom in retailing, thanks mainly on account of an increase in the disposable incomes of middle and upper-middle class households. More and more corporate houses, including large real estate companies, are now entering the retail business directly or indirectly. One sign of the modernization of Indian retailing is the rapid growth in the number of specialty malls and theme malls. The Piramals, Tatas, Rahejas, ITC, S. Kumar's, RPG Enterprises, Aerens, Omaxe and mega retailers like Crosswords, Shopper's Stop and Pantaloon have taken the lead in organized retailing. Though organized retailing is still at a nascent stage - accounting for only around two per cent of the $180 billion retail market in India - it is likely to touch 10 per cent by the end of this decade. Four product categories have led the organized retailing wave: foods, apparel, lifestyle products, consumer durables and electronics. In recent times, several theme malls such as Gold Souk (jewellery malls), Wedding Mall, Electronic Mall, Auto Mall, etc catering to specific needs and occasions have been completed or announced.

Many top developers are now toying with the idea of developing specialty malls. Specialty malls are already a success in the West, whereas the concept is in its infancy in India. One could venture so far as to say specialty and theme based retailing will drive the growth of organized retailing in India. Organized Retailing: Organized retailing got a leg up with the opening of new format stores, rapid growth of existing players, start-up of new-generation shopping malls, the Government's intention of allowing a certain level of foreign direct investment in retail and the formation of a retailers' association. With consumer sentiment positive during most of 2004, it led to substantial spending across a number of categories such as consumer durables, clothing and lifestyle, automobiles and telecom products. At the beginning of this decade, organized retailing accounted for a mere $2.9 billion in India. This is only 1.25 per cent of the estimated total retail market. This share has already grown to 2 per cent. Growth projections for retail business vary widely. Some studies estimate that by 2007, the share of organized retail in the retail pie will jump three times to reach 5-6 per cent.


Retail in India is largest industry accounting for over 10% of the country GDP and around 8% of the employment. Retail industry in India is at the cross road. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. The future is promising the market is growing government policies are becoming more favorable and emerging technology and facilitating operations. Some key facts retail in India largest industry accounting for over 10% of the country GDP and around 8% of the employment. The market size of Indian retail industry is about US $ 312 billion. Indian Retail Industry Analysis India's retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4% of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population). Until 2011, Indian central government denied foreign direct investment (FDI) in multibrand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic process. In November 2011, India's central government announced retail reforms for both multi-brand stores and single-brand stores. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple. The announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it reaches a consensus. In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership, but imposed the requirement that the single brand retailer source 30% of its goods from India. Indian government continues the hold on retail reforms for multi-brand stores. IKEA announced in January that it is putting on hold its plan to open stores in India because of the 30% requirement. Fitch believes that the 30% requirement is likely to significantly delay if not prevent most single brand majors from Europe, USA and Japan from opening stores and creating associated jobs in India. 1. Franchise Agreements It is an easiest track to come in the Indian market. In franchising and commission agentsservices, FDI (unless otherwise prohibited) is allowed with the approval of the Reserve Bank of India (RBI) under the Foreign Exchange Management Act. This is a most usual mode for entrance of quick food bondage opposite a world. Apart from quick food bondage identical to Pizza


Hut, players such as Lacoste, Mango, Nike as good as Marks as good as Spencer, have entered Indian marketplace by this route. 2. Cash And Carry Wholesale Trading 100% FDI is allowed in wholesale trading which involves building of a large distribution infrastructure to assist local manufacturers. The wholesaler deals only with smaller retailers and not Consumers. Metro AG of Germany was the first significant global player to enter India through this route. 3. Strategic Licensing Agreements Some foreign brands give exclusive licenses and distribution rights to Indian companies. Through these rights, Indian companies can either sell it through their own stores, or enter into shop-in-shop arrangements or distribute the brands to franchisees. Mango, the Spanish apparel brand has entered India through this route with an agreement with Piramyd, Mumbai, SPAR entered into a similar agreement with Radhakrishna Foodlands Pvt. Ltd 4. Manufacturing and Wholly Owned Subsidiaries. The foreign brands such as Nike, Reebok, Adidas, etc. that have whollyowned subsidiaries in manufacturing are treated as Indian companies and are, therefore, allowed to do retail. These companies have been authorized to sell products to Indian consumers by franchising, internal distributors, existent Indian retailers, own outlets, etc. For instance, Nike entered through an exclusive licensing agreement with Sierra Enterprises but now has a wholly owned subsidiary, Nike India Private Limited. FDI Policy in India: FDI as defined in Dictionary of Economics (Graham Bannock et.al) is investment in a foreign country through the acquisition of a local company or the establishment there of an operation on a new (Greenfield) site. To put in simple words, FDI refers to capital inflows from abroad that is invested in or to enhance the production capacity of the economy. Foreign Investment in India is governed by the FDI policy announced by the Government of India and the provision of the Foreign Exchange Management Act (FEMA) 1999. The Reserve Bank of India (RBI) in this regard had issued a notification which contains the Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000. This notification has been amended from time to time. The Ministry of Commerce and Industry, Government of India is the nodal agency for motoring and reviewing the FDI policy on continued basis and changes in sectoral policy/ sectoral equity cap. The FDI policy is notified through Press Notes by the Secretariat for Industrial Assistance (SIA), Department of Industrial Policy and Promotion (DIPP). The foreign investors are free to invest in India, except few sectors/activities, where prior approval from the RBI or Foreign Investment Promotion Board (FIPB) would be required. FDI Policy with Regard to Retailing in India: It will be prudent to look into Press Note 4 of 2006 issued by DIPP and consolidated FDI Policy issued in October 2010 which provide the sector specific guidelines for FDI with regard to the conduct of trading activities. 15

a) FDI up to 100% for cash and carry wholesale trading and export trading allowed under the automatic route. b) FDI up to 51 % with prior Government approval (i.e. FIPB) for retail trade of Single Brand products, subject to Press Note 3 (2006 Series) c) FDI is not permitted in Multi Brand Retailing in India. FDI in Multi-Brand Retail: The government has also not defined the term Multi Brand. FDI in Multi Brand retail implies that a retail store with a foreign investment can sell multiple brands under one roof. In July 2010, Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce circulated a discussion paper on allowing FDI in multi-brand retail. The paper doesnt suggest any upper limit on FDI in multi -brand retail. If implemented, it would open the doors for global retail giants to enter and establish their footprints on the retail landscape of India. Opening up FDI in multi-brand retail will mean that global retailers including Wal-Mart, Carrefour and Tesco can open stores offering a range of household items and grocery directly to consumers in the same way as the ubiquitous kirana store. Structure of Indian Retail Sector: Definition of Retail In 2004, The High Court of Delhi defined the term retail as a sale for final consumption in contrast to a sale for further sale or processing (i.e. wholesale) thus, retailing can be said to be the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customers. Retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. A retailer is involved in the act of selling goods to the individual consumer at a margin of profit. Division of Retail Industry Organized and Unorganized Retailing The retail industry is mainly divided into: - 1) Organized and 2) Unorganized Retailing Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. The Indian retail sector is highly fragmented with 97 per cent of its business being run by the unorganized retailers. The organized retail however is at a very nascent stage. The sector is the largest source of employment after agriculture, and has deep penetration into rural India generating more than 10 per cent of Indias GDP. Advantages of conventional and modern organized retail reforms: Conventional Modern Organized 16

Large Bargaining Power Low operating cost and overheads Proximity to consumers Range and variety of goods Long operating hours Strong customer relations Convenience and hygiene Quality assurance (brand related and durability).

Growth and Evolution of Indian Retail Sector: The Indian Retail Industry is the 5th largest retail destination and the second most attractive market for investment in the globe after Vietnam as reported by AT Kearneys seventh annual Globe Retail Development Index (GRDI), in 2008.The growing popularity of Indian Retail sector has resulted in growing awareness of quality products and brands. Indian retail has made life convenient, easy, quick and affordable. Indian retail sector specially organized retail is growing rapidly, with customer spending growing in unprecedented manner. It is undergoing metamorphosis. Till 1980 retail continued in the form of kiranas that is unorganized retailing. Later in 1990s branded retail outlet like Food World, Nilgiris and local retail outlets like Apna Bazaar came into existence. Now big players like Reliance, Tatas, Bharti, ITC and other reputed companies have entered into organized retail business. The multinationals with 51% opening of FDI in single brand retail has led to direct entrance of companies like Nike, Reebok, Metro etc. or through joint ventures like Wal-mart with Bharti, Tata with Tesco etc. Evolution of retail sector can be seen in the share of organized sector in 2007 was 7.5% of the total retail market. Organized retail business in India is very small but has tremendous scope. The total in 2005 stood at $225 billion, accounting for about 11% 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 $23 billion revenue by 2010. The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year2018 at a CAGR of 10%. As the country has got a high growth rate, the consumer spending has also gone up and is also expected to go up further in the future. In the last four years, the consumer spending in India climbed up to 75%. As a result, the Indian retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%. The key factors that drive growth in retail industry are young demographic profile, increasing consumer aspirations, growing middle class incomes and improving demand from rural markets. Also, 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 capita income and the advent of dual income families also help in the growth of retail sector. Moreover, consumer preference for shopping in new environs, availability of quality real estate and mall management practices and a shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc. 17

also contributes to the spiral of growth in this sector. Furthermore, the Internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains. One report estimates the 2011 Indian retail market as generating sales of about $470 billion a year, of which a miniscule $27 billion comes from organized retail such as supermarkets, chain stores with centralized operations and shops in malls. The opening of retail industry to free market competition, some claim will enable rapid growth in retail sector of Indian economy. Others believe the growth of Indian retail industry will take time, with organized retail possibly needing a decade to grow to a 25% share. A 25% market share, given the expected growth of Indian retail industry through 2021, is estimated to be over $250 billion a year: revenue equal to the 2009 revenue share from Japan for the world's 250 largest retailers. The Economist forecasts that Indian retail wills nearly double in economic value, expanding by about $400 billion by 2020.The projected increase alone is equivalent to the current retail market size of France. In 2011, food accounted for 70% of Indian retail, but was under-represented by organized retail. A.T. Kearney estimates India's organized retail had a 31% share in clothing and apparel, while the home supplies retail was growing between 20% - 30% per year. These data correspond to retail prospects prior to November announcement of the retail reform. 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 various hurdles. The first challenge facing the organized retail sector is the competition from unorganized sector. Needless to say, the Indian retail sector is overwhelmingly swarmed by the unorganized retailing with the dominance of small and medium enterprises in contradiction to the presence of few giant corporate retailing outlets. The trading sector is also highly fragmented, with a large number of intermediaries who operate at a strictly local level and there is no barrier to entry, given the structure and scale of these operations. The tax structure in India favors small retail business. Organized retail sector has to pay huge taxes, which is negligible for small retail business. Thus, the cost of business operations is very high in India. Developed supply chain and integrated IT management is absent in retail sector. This lack of adequate infrastructure facilities, lack of trained work force and low skill level for retailing management further makes the sector quite complex. Also, the intrinsic complexity of retailing- rapid price changes, threat of product obsolescence, low margins, high cost of real estate and dissimilarity in consumer groups are the other challenges that the retail sector in India is facing. 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. Even though economy across the globe is slowly emerging from recession, tough times lie ahead for the retail industry as consumer spending 18

still has not seen a consistent increase. In fact, consumer spending could contract further as banks have been overcautious in lending. Thus, retailers are witnessing an uphill task in terms of wooing consumers, despite offering big discounts. Additionally, organized retailers have been facing a difficult time in attracting customers from traditional kirana stores, especially in the food and grocery segment. Indian retail industry: While in some sectors the restrictions imposed by the government are comprehensible; the restrictions imposed in few others, including the retail sector, are utterly baseless and are acting as shackles in the progressive development of that particular sector and eventually the overall development of the Indian Inc. The scenario is kind of depressing and unappealing, since despite the on-going wave of incessant liberalization and globalization, the Indian retail sector is still aloof from progressive and ostentatious development. This dismal situation of the retail sector undoubtedly stems from the absence of an FDI encouraging policy in the Indian retail sector. Also FDI encouraging policy can remove the present limitations in Indian system such as 1. Infrastructure There has been a lack of investment in the logistics of the retail chain, leading to an inefficient market mechanism. Though India is the second largest producer of fruits and vegetables (about 180 million MT), it has a very limited integrated cold-chain infrastructure, with only 5386 stand-alone cold storages, having a total capacity of 23.6 million MT. 80% of this is used only for potatoes. The chain is highly fragmented and hence, perishable horticultural commodities find it difficult to link to distant markets, including overseas markets, round the year. Storage infrastructure is necessary for carrying over the agricultural produce from production periods to the rest of the year and to prevent distress sales. Though FDI is permitted in cold-chain to the extent of 100%, through the automatic route, in the absence of FDI in retailing; FDI flow to the sector has not been significant. 2. Intermediaries dominate the value chain Intermediaries often flout mandi norms and their pricing lacks transparency. Wholesale regulated markets, governed by State APMC Acts, have developed a monopolistic and non-transparent character. According to some reports, Indian farmers realize only 1/3rdof the total price paid by the final consumer, as against 2/3rdby farmers in nations with a higher share of organized retail. 3. Improper Public Distribution System (PDS) There is a big question mark on the efficacy of the public procurement and PDS setup and the bill on food subsidies is rising. In spite of such heavy subsidies, overall food based inflation has been a matter of great concern. The absence of a farm-to fork retail supply system has led to the ultimate customers paying a premium for shortages and a charge for wastages. 4. No Global Reach


The Micro Small & Medium Enterprises (MSME) sector has also suffered due to lack of branding and lack of avenues to reach out to the vast world markets. While India has continued to provide emphasis on the development of MSME sector, the share of unorganized sector in overall manufacturing has declined from 34.5% in1999-2000 to 30.3% in 2007-08. This has largely been due to the inability of this sector to access latest technology and improve its marketing interface. Thus the rationale behind allowing FDI in Indian retail sector comes from the fact, that it will act as a powerful catalyst to spur competition in retail industry, due to current scenario of above listed limitations, low completion and poor productivity. Permitting foreign investment in food-based retailing is likely to ensure adequate flow of capital into the country & its productive use, in a manner likely to promote the welfare of all sections of society, particularly farmers and consumers. It would also help bring about improvements in farmer income & agricultural growth and assist in lowering consumer prices inflation. Apart from this, by allowing FDI in retail trade, India will significantly flourish in terms of quality standards and consumer expectations, since the inflow of FDI in retail sector is bound to pull up the quality standards and costcompetitiveness of Indian producers in all the segments. It is therefore obvious that we should not only permit but encourage FDI in retail trade. Lastly, it is to be noted that the Indian Council of Research in International Economic Relations (ICRIER), a premier economic think tank of the country, which was appointed to look into the impact of BIG capital in the retail sector, has projected the worth of Indian retail sector to reach $496 billion by 2011-12 and ICRIER has also come to conclusion that investment of big money (large corporate and FDI) in the retail sector would in the long run not harm interests of small, traditional, retailers. In light of the above, it can be safely concluded that allowing healthy FDI in the retail sector would not only lead to a substantial surge in the countrys GDP and overall economic development, but would inter alia also help in integrating the Indian retail market with that of the global retail market in addition to providing not just employment but a better paying employment, which the unorganized sector (kirana and other small time retailing shops) have undoubtedly failed to provide to the masses employed in them. Industrial organizations such as CII, FICCI, US-India Business Council (USIBC), the American Chamber of Commerce in India, The Retail Association of India (RAI) and Shopping Centers Association of India (a 44 member association of Indian multiband retailers and shopping malls) favors a phased approach toward liberalizing FDI in multi-brand retailing and most of them agree with considering a cap of per cent to start with the international retail players such as Walmart, Carrefour, Metro, IKEA, and TESCO share the same view and insist on a clear path towards 100 per cent opening up in near future. Large multinational retailers such as US-based Walmart, Germanys Metro AG and Woolworths Ltd, the largest Australian retailer that operates in wholesale cash-and-carry


ventures in India, have been demanding liberalization of FDI rules on multibrand retail for some time. Challenges and Attractions for Global Retailers: Challenges: History has witnessed that the concern of allowing unrestrained FDI flows in the retail sector has never been free from controversies and simultaneously has been an issue for unsuccessful deliberation ever since the advent of FDI in India. Where on one hand there has been a strong outcry for the unrestricted flow of FDI in the retail trading by an overwhelming number of both domestic as well as foreign corporate retail giants; to the contrary, the critics of unrestrained FDI have always fiercely retorted by highlighting the adverse impact, the FDI in the retail trading will have on the unorganized retail trade, which is the source of employment to an enormous amount of the population of India. The antagonists of FDI in retail sector oppose the same on various grounds, like, that the entry of large global retailers such as WalMart would kill local shops and millions of jobs, since the unorganized retail sector employs an enormous percentage of Indian population after the agriculture sector; secondly that the global retailers would conspire and exercise monopolistic power to raise prices and monopolistic (big buying) power to reduce the prices received by the suppliers; thirdly, it would lead to asymmetrical growth in cities, causing discontent and social tension elsewhere. Hence, both the consumers and the suppliers would lose, while the profit margins of such retail chains would go up. Many trading associations, political parties and industrial associations have argued against FDI in retailing due to various reasons. It is generally argued that the Indian retailers have yet to consolidate their position. The existing retailing scenario is characterized by the presence of a large number of fragmented families owned businesses, which would not be able to survive the competition from global players. The examples of south East Asian countries show that after allowing FDI, the domestic retailers were marginalized and this led to unemployment. Another apprehension is that FDI in retailing can upset the import balance, as large international retailers may prefer to source majority of their products globally rather than investing in local products. The global retailers might resort to predatory pricing. Due to their financial clout, they often sell below cost in the new markets. Once the domestic players are wiped out of the market foreign players enjoy a monopoly position which allows them to increase prices and earn profits. Indian retailers have argued that since lending rates are much higher in India, Indian retailers, especially small retailers, are at a disadvantageous position compared to foreign retailers who have access to International funds at lower interest rates. High cost of borrowing forces the domestic players to charge higher prices for the products. Another argument against FDI is that FDI in retail trade would not attract large inflows of foreign investment since very little investment is required to conduct retail business. Goods are bought on credit and sales are made on cash basis.


Hence, the working capital requirement is negligible. On the contrary; after making initial investment on basic infrastructure, the multinational retailers may remit the higher amount of profits earned in India to their own country. Porters Five Force Model: 1. Threat of New Entrants: One trend that started over a decade before has been a decreasing number of independent retailers. While the barriers to start up a new store are not impossible to overcome, the ability to establish favorable supply contracts, leases and be competitive is becoming virtually impossible. There vertical structure and centralized buying gives chain stores a competitive advantage over independent retailers. 95% of the market is made up of small, noncomputerized family run stores. Now there are finally signs that the Indian government dropping its traditional protectionist stance and opening up its retail market to greater overseas investment. It has already allowed 51% ownership in single-brand goods leading to entry of McDonalds, Marks & Spencer, Body Shop with proposal of raising the ownership to 100% will attract more foreign retailers. Also with allowing investment by foreign retailers in multi-brand retailing in a phased manner will lead to more inflow of foreign investors in Indian retail sector. On the whole threat from new entrants in retail industry is high. 2. Power of Suppliers: Historically, retailers have tried to exploit relationships with supplier. A great example was in the 1970s, when Sears sought to dominate the household appliance market. Sears set very high standards for quality; suppliers that did Industry Competitiveness Rivalry among existing competitors (HIGH). Threat of
New Entrants (HIGH) Bargaining Power of Suppliers (LOW) Bargaining Power of Buyers (MODERATE) Threat of Substitutes (HIGH) not meets these standards

were dropped from the Sears line. This could also be seen in case of Walmart that places strict control on its suppliers. A contract with a big retailer like Walmart can make or break a small supplier. In retail industry suppliers tend to have very little power. 3. Power of Buyers: Individually, consumers have very little bargaining power with retail stores. It is very difficult to bargain with the clerk at Big Bazaar for better price on grapes. But as a whole if customers demand high-quality products at bargain prices, it helps keep retailers honest. Taking this from Porters side of the coin we can say customers have comparatively high bargaining power in unorganized sector than in organized sector. As the customer will demand products from organized units he will be more focused towards quality aspect. 4. Availability of Substitutes: The tendency in retail is not to specialize in one good or service, but to deal in wide range of products and services. This means what one store offers is likely to be same as that offered by another store. Thus threat from substitutes is high. 5. Competitive Rivalry:


Retailers always face stiff competition and must fight with each other for market share and also with unorganized sector. More recently, they have tried to reduce cut throat pricing competition by offering frequent flier points, memberships and other special services to try and gain the customers loyalty. Thus retailers give each other stiff but healthy competition which is evident from their aggressive marketing strategies and segment policies. The arguments offered by critics against the retail sector reforms focus on one or more of the following points Independent stores will close, leading to massive job losses. Walmart employs very few people in the United States. If allowed to expand in India as much as Walmart has expanded in the United States, few thousand jobs may be created but millions will be lost. Walmart will lower prices to dump goods, get competition out of the way, become a monopoly, and then raise prices. We have seen this in the case of the soft drinks industry. Pepsi and Coke came in and wiped out all the domestic brand India doesn't need foreign retailers, since home grown companies and traditional markets may be able to do the job. Work will be done by Indians, profits will go to foreigners. Remember East India Company. It entered India as a trader and then took over politically. There will be sterile homogeneity and Indian cities will look like cities anywhere else. The government hasn't built consensus. Supporters claim none of these objections has merit. They claim: Organized retail will need workers. Walmart employs 1.4 million people in United States alone. With United States population of about 300 million, and India's population of about 1200 million, if Walmart-like retail companies were to expand in India as much as their presence in the United States, and the staffing level in Indian stores kept at the same level as in the United States stores, Walmart alone would employ 5.6 million Indian citizens. In addition, millions of additional jobs will be created during the building of and the maintenance of retail stores, roads, cold storage centers, software industry, electronic cash registers and other retail supporting organizations. Instead of job losses, retail reforms are likely to be massive boost to Indian job availability. India needs trillions of dollars to build its infrastructure, hospitals, housing and schools for its growing population. Indian economy is small, with limited surplus capital. Indian government is already operating on budget deficits. It is simply not possible for Indian investors or Indian government to fund this expansion, job creation and growth at the rate India needs. Global investment capital through FDI is necessary. Beyond capital, Indian retail industry needs knowledge and global integration. Global retail leaders, some of which are partly owned by people of Indian origin can bring this knowledge. Global integration can potentially open export markets for Indian farmers and producers. Walmart, for example, expects to source and export some $1 23

billion worth of goods from India every year, since it came into Indian wholesale retail market. Walmart, Carrefour, Tesco, Target, Metro, Coop are some of over 350 global retail companies with annual sales over $1 billion. These retail companies have operated for over 30 years in numerous countries. They have not become monopolies. Competition between Walmartlike retailers has kept food prices in check. Canada credits their very low inflation rates to Walmart effect. Anti-trust laws and state regulations, such as those in Indian legal code, have prevented food monopolies from forming anywhere in the world. Price inflation in these countries has been 5 to 10 times lower than price inflation in India. The current consumer price inflation in Europe and the United States is less than 2%, compared to India's double digit inflation. Comparing 21st century to 18th century is inappropriate. Conditions today are not same as in the 18th century. India wasn't a democracy then, it is today. Global awareness and news media were not the same in 18th century as today. Consider China today. It has over 57 million square feet of retail space owned by foreigners, employing millions of Chinese citizens. Yet, China hasn't become a vassal of imperialists. It enjoys respect from all global powers. Other Asian countries like Malaysia, Taiwan, Thailand and Indonesia see foreign retailers as catalysts of new technology and price reduction; and they have benefitted immensely by welcoming FDI in retail. India too will benefit by integrating with the world, rather than isolating itself. With 51% FDI limit in multi-brand retailers, nearly half of any profits will remain in India. Any profits will be subject to taxes, and such taxes will reduce Indian government budget deficit States have a right to say no to retail FDI within their jurisdiction. States have the right to add restrictions to the retail policy announced before they implement them. Thus, they can place limits on number, market share, style, diversity, homogeneity and other factors to suit their cultural preferences. Finally, in future, states can always introduce regulations and India can change the law to ensure the benefits of retail reforms reach the poorest and weakest segments of Indian society, free and fair retail competition does indeed lead to sharply lower inflation than current levels, small farmers get better prices, jobs created by organized retail pay well, and healthier food becomes available to more households. Inbuilt inefficiencies and wastage in distribution and storage account for why, according to some estimates, as much as 40% of food production doesn't reach consumers. Fifty million children in India are malnourished. Food often rots at farms, in transit, or in antiquated state-run warehouses. Cost conscious organized retail companies will avoid waste and loss, making food available to the weakest and poorest segment of Indian society, while increasing the income of small farmers. Walmart, for example, since its arrival in Indian wholesale retail market, has successfully introduced "Direct Farm Project" at Haider Nagar near Malerkotla in Punjab, where 110 farmers have been connected with Bharti Walmart for sourcing fresh vegetables directly, thereby reducing waste and bringing fresher produce to Indian consumers. 24

Indian small shops employ workers without proper contracts, making them work long hours. Many unorganized small shops depend on child labor. A well-regulated retail sector will help curtail some of these abuses. The claim that there is no consensus is without merit. Retail reforms discussions are not new. Comments from a wide cross-section of Indian society including farmers' associations, industry bodies, consumer forums, academics, traders' associations, investors, economists were analyzed in depth before the matter was discussed by the Committee of Secretaries. By early August 2011, the consensus from various segments of Indian society was overwhelming in favor of retail reforms. The reform outline was presented in India's Rajya Sabha in August 2011. The announced reforms are the result of this consensus process. The current opposition is not helping the consensus process, since consensus is not built by threats and disruption. Those who oppose current retail reforms should help build consensus with ideas and proposals, if they have any. The opposition parties currently disrupting the Indian parliament on retail reforms have not offered even one idea or a single proposal on how India can eliminate food spoilage, reduce inflation, improve food security, feed the poor, improve the incomes of small farmers. Thus from the above contrasting views of critics and supporters; and also with reference to Industry analysis using Porters five force model, it can be inferred that opening of the Indian retail sector will advance the welfare of nation as a whole. SWOT Analysis of Indian Retail Sector: 1. Strengths: Major contribution to GDP: the retail sector in India is hovering around 33 35% of GDP as compared to around 20% in USA. High Growth Rate: the retail sector in India enjoys an extremely high growth rate of approximately 46%. High Potential: since the organized portion of retail sector is only 2-3%, thereby creating lot of potential for future players. High Employment Generator: the retail sector employs 7% of work force in India, which is right now limited to unorganized sector only. Once the reforms get implemented this percentage is likely to increase substantially. 2. Weaknesses (limitation): Lack of Competitors: AT Kearneys study on global retailing trends found that India is least competitive as well as least saturated markets of the world. Highly Unorganized: The unorganized portion of retail sector is only 97% as compared to US, which is only 20%. Low Productivity: Mckinsey study claims retail productivity in India is very low as compared to its international peers. Shortage of Talented Professionals: the retail trade business in India is not considered as reputed profession and is mostly carried out by the family members (self-employment and captive business). Such people are not academically and professionally qualified.


No industrystatus, hence creating financial issues for retailers: the retail sector in India does not enjoy industry status in India, thereby making difficult for retailers to raise funds. 3. Opportunities (benefits): There will be more organization in the sector: Organized retail will need more workers. According to findings of KPMG, in China, the employment in both retail and wholesale trade increased from 4% in 1992 to about 7% in 2001, post reforms and innovative competition in retail sector in that country. Healthy Competition will be boosted and there will be a check on the prices (inflation): Retail giants such as Walmart, Carrefour, Tesco, Target and other global retail companies already have operations in other countries for over 30 years. Until now, they have not at all become monopolies rather they have managed to keep a check on the food inflation through their healthy competitive practices. Create transparency in the system: the intermediaries operating as per mandi norms do not have transparency in their pricing. According to some of the reports, an average Indian farmer realizes only one-third of the price, which the final consumer pays. Intermediaries and mandi system will be evicted, hence directly benefiting the farmers and producers: the prices of commodities will automatically be checked. For example, according to Business Standard, Walmart has introduced Direct Farm Project at Haider Nagar in Punjab, where 110 farmers have been connected with Bharti Walmart for sourcing fresh vegetables directly. Quality Control and Control over Leakage and Wastage: due to organization of the sector, 40% of the production does not reach the ultimate consumer. According to the news in Times of India, 42% of the children below the age group of 5 are malnourished and Prime Minister Dr. Manmohan Singh has termed it as national shame. Food often gets rot in farm, in transit and in state-run warehouses. Cost conscious and highly competitive retailers will try to avoid these wastages and losses and it will be their endeavor to make quality products available at lowest prices, hence making food available to weakest and poorest segment of Indian society. Heavy flow of capital will help in building up the infrastructure for the growing population: India is already operating in budgetary deficit. Neither the government of India nor domestic investors are capable of satisfying the growing needs (school, hospitals, transport etc.) of the ever growing Indian population. Hence foreign capital inflow will enable us to create a heavy capital base. There will be sustainable development and many other economic issues wil l be focused upon: much Indian small shop 27 owners employ workers, who are not under any contract and also under aged workers giving rise to childlabor. It also boosts corruption and black money. 4. Threats: Current Independent Stores will be compelled to close:


This will lead to massive job loss as most of the operations in big stores like Walmart are highly automated requiring less work force. Big players can knock-out competition: they can afford to lower prices in initial stages, become monopoly and then raise prise later. India does not need foreign retailers: as they can satisfy the whole domestic demand. Remember East India Company it entered India as trader and then took over politically. The government hasnt able to build consensus. In view of the above analysis, if we try to balance opportunities and prospects attached to the given economic reforms, it will definitely cause good to Indian economy and consequently to public at large, if once implemented. Thus the period for which we delay these reforms will be loss for government only, since majority of the public is in favors of reforms. All the above mentioned drawbacks are mostly politically created. With the implementation of this policy all stakeholders will benefit whether it is consumer through quality products at low price, farmers through more transparency in trading or Indian corporate with 49% profit share remaining with Indian companies only.

Future group, led its founder & group CEO Mr. Kishore Biyani is one of India leading business house with multiple business spanning across the consumption space. While retail firm the core business activity of future group, group subsidiaries are present in consumer finance, capital, insurance, brand development & entertainment. The first set of Big Bazaar store was opened in 2001 in Kolkata, Hyderabad and Bangalore. The headquartered in Mumbai the company operates over 12 million square feet of retail space as over one thousand stores across 71 cities in India and employees over 35,000 people. The companies leading formats include Pantaloons a chain of fashion outlet, Big bazaar, uniquely Indian hypermarket chain, food Bazaar a supermarket chain blends he look, touch and feel of Indian Bazaars with aspects of modern retail like choice convenience and quality and control a chain of seamless destination malls Future Group is one of the countrys leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. Future Group is present in 61 cities and 65 rural locations. The groups flagship company, Pantaloon Retail (India) Limited operates over 10,000,000 square feet (930,000 m2) of retail space, has over 1,000 stores and employs over 30,000 people. Some of its leading retail formats include Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retail format www.futurebazaar.com.


Future Group companies includes, Future Capital Holdings, Future Generali India, Indus League Clothing and Galaxy Entertainment which manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings, the groups financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The groups joint venture partners include Italian insurance major Generali, French retailer ETAM group, US-based stationary products retailer Staples. Future Groups vision is to, Deliver Everything, Everywhere, Everytime to Every Indian Consumer in the most profitable manner. The group considers Indian-ness as a core value and its corporate credo is - Rewrite rules, Retain values.

BOARD OF DIRECTORS Mr. Kishore Biyani, Managing Director Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief Executive Officer of Future Group. Mr. Gopikishan Biyani, Wholetime Director Gopikishan Biyani, is a commerce graduate and has more than twenty years of experience in the textile business. Mr. Rakesh Biyani, Wholetime Director Rakesh Biyani, is a commerce graduate and has been actively involved in category management; retail stores operations, IT and exports. He has been instrumental in the implementation of the various new retail formats. Mr. Ved Prakash Arya, Director Ved Prakash Arya, is an engineer by training and is a graduate of the Indian Institute of Management, Ahmedabad. Prior to joining Pantaloon Retail, he was the CEO of Globus. Mr. Shailesh Haribhakti, Independent Director Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a Certified Internal Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered Accountants and past president of Indian merchant Chambers. He is on the Board of several Public Limited Companies, including Indian


Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999. Mr. S Doreswamy, Independent Director S. Doreswamy, is a former Chairman and Managing Director of Central Bank of India and serves on the board of DSP Merrill Lynch Trustee Co and Ceat Limited Dr. D O Koshy, Independent Director D. O. Koshy, holds a doctorate from IIT, Delhi and is the Director of National Institute of Design (NID), Ahmedabad. He has over 24 years of rich experience in the textiles and garment industry and was instrumental in the setting up of NIFT centres in Delhi, Chennai and Bangalore. He is a renowned consultant specializing in international marketing and apparel retail management. Ms. Anju Poddar, Independent Director Anju Poddar, holds a Bachelor of Engineering from University of Oklahoma and is a Director, NIFT, Hyderabad chapter. She also serves on the board of Maharishi Commerce Ltd and Samay Books Ltd, Ms. Bala Deshpande, Independent Director Bala Deshpande, is Independent Director, Pantaloon Retail (India) Ltd. and also serves on the boards of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing Ltd, Mr. Anil Harish, Independent Director Anil Harish, is the partner of DM Harish & Co. Associates & Solicitors and an LLM from University of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bank and Hinduja TMT, Major Milestones 1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, Indias first formal trouser brand. 1991 Launch of BARE, the Indian jeans brand. 1992 Initial public offer (IPO) was made in the month of May. 1994 The Pantaloon Shoppe exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation. 1995 John Miller Formal shirt brand launched. 29

1997 Pantaloons Indias family store launched in Kolkata. 2001 Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain launched. 2002 Food Bazaar, the supermarket chain is launched. 2004 Central Shop, Eat, Celebrate in the Heart of Our City - Indias first seamless mall is launched in Bangalore. 2005 Fashion Station - the popular fashion chain is launched 2006 Future Capital Holdings, the companys financial arm launches real estate funds Kshitij and Horizon and private equity fund In division. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and Generali. 2007- future group cross $1 billion mark. 2008- future group holding becomes the second group company to make a successful initial public offering in the Indian capital market.

fashion accessories 5.5% Telephone 1.8% consumer durable 4%

Enterainm ent 7.9%

consumption spending $350 billion

furniture 3.4%

Fashion 9.5%

Health, beauty & pharama 3.8%

food 62%

Book & music 1.1


Big Bazaar

Parent Company

Future Group




Lifestyle and retail

Tagline/ Slogan

Is se sasta aur accha kahi nahi!


Affordable lifestyle STP


Price sensitive group

Target Group

Upper middle class and lower middle class


Family favourite retail store SWOT Analysis

1. Affordability for middle class 2. Quality,choice and convenience 3. Wide range of products and service offerings 4. Strong presence in local market 5. Attractive promotional offers 6. Large no. SKU provided to consumer 7. Good branding and advertising by also roping in celebrity brand Strength ambassadors

1. Not known globally and restricted to the Indian market only 2.No different game plan according to divergent people, their Weakness lifestyles, their tastes and budgets in India

1. To expand globally by tie-ups 2. Entering into high premium segment 3.Opportunity to expand into financial services catering to huge segment Opportunity 4. Increased rural penetration


1.Competitors global presence 2. Future bazaar under debt can cause financial problems 3.Low priced brand perceived to be of low quality in Indian consumer Threats minds Competition

1. Reliance retail 2. Lifestyle Retail 3.Aditya Birla More Competitors 4. Shoppers stops

4 Ps of Big Bazaar:

Product: Big Bazaar offers a wide range of products which range from apparels, food, farm products, furniture, child care, toys, etc of various brands like Levis, Allen Solly, Pepsi, Coca- Cola, HUL, ITC, P&G, LG, Samsung, Nokia, HP etc. Big Bazaar also promotes a number of in house brands like: DJ & C Tasty Treat Clean Mate Sensei Care Mate Koryo and 44 other brands. Pricing: The pricing objective at Big Bazaar is to get Maximum Market Share. Pricing at Big Bazaar is based on the following techniques: Value Pricing (EDLP Every Day Low pricing): Big Bazaar promises consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping. Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is also used to attract customers. Big Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga Pooja). Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak and non-peak hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar. e.g. Wednesday Bazaar Bundling: It refers to selling combo-packs and offering discount to customers. The combo-packs add value to customer and lead to increased sales. Big Bazaar lays a lot of importance on bundling. 32

e.g. 3 Good Day family packs at Rs 60(Price of 1 pack = Rs 22) 5kg oil + 5kg rice + 5kg sugar for Rs 599 Place: The Big Bazaar stores are operational across three formats hypermarkets spread over 40,000-45,000 sq ft, the Express format over 15,000-20,000 sq ft and the Super Centers set up over 1 lakh sq ft. Currently Big Bazaar operates in over 34 cities and towns across India with 116 stores. Apart from the Metros these stores are also doing well in the tier II cities. These stores are normally located in high traffic areas. Big Bazaar aims at starting stores in developing areas to take an early advantage before the real estate value booms. Mr. Biyani is planning to invest around Rs 350 crore over the next one year expansion of Big Bazaar. In order to gain a competitive advantage Big Bazaar has also launched a website www.futurebazaar.com, which helps customers to orders products online which will be delivered to their doorstep. This helps in saving a lot of time of its customers. Promotion: The various promotion schemes used at Big Bazaar include: Saal ke sabse saste 3 din Hafte ka sabse sasta din Wednesday bazaar Exchange Offers Junk swap offer Future card(3% discount) Shakti card Advertisement (print ad, TV ad, radio) Brand endorsement by M.S Dhoni and Asin Big Bazaar has come up with 3 catchy lines written on hoardings taking on biggies like Westside, Shoppers stop and Lifestyle. They are: Keep West- aSide. Make a smart choice! Shoppers! Stop. Make a smart choice! Change your Lifestyle. Make a smart choice! People: Well trained staff at stores to help people with their purchases Employ close to 10,000 people and employ around 500 more per month. Well-dressed staff improves the overall appearance of store. Use scenario planning as a tool for quick decision making multiple counters for payment, staff at store to keep baggage and security guards at every gate, makes for a customer-friendly atmosphere. Process: Big Bazaar places a lot of importance on the process right from the purchase to the delivery of goods. When customers enter the stores they can add the products they which to purchase in their trolley from the racks. There are multiple counters where bill can be generated for purchases made. Big Bazaar also provides delivery of products over purchases of Rs. 1000. Physical Evidence:


Products in Big Bazaar are properly stacked in appropriate racks. There are different departments in the store which display similar kind of products. Throughout the store there are boards/written displays put up which help in identifying the location of a product. Moreover boards are put up above the products which give information about the products, its price and offers. Big Bazaar stores are normally U shaped and well planned & designed MARKETING STRATEGIES OF BIG BAZAAR: Big Bazaars Guerrilla Marketing

[Image Above: "The Keep West-aSide. Make a smart choice: Billboard onHosur Road (Just before Forum Mall), Bangalore] Future Group- Big Bazaar, Pantaloons, Future Bazaar, eZone are all part of this group and they are taking on the biggies like Shoppers Stop, Lifestyle, and Tatas Westside.


In order to do the same, Future Group have come up with 3 catchy/cocky and cheeky ad campaign which surely does catches eyes (whether one changes their loyalty or not, only time will tell) and surely one cant resist appreciating the same.. Keep West-aSide. Make a smart choice Shoppers! Stop. Make a smart choice Change Your Lifestyle. Make a smart choice

Not surprisingly; according to the latest release in ET the campaign has made the competition very uncomfortable because they somehow feel the ads make a subtle reference to them. With retail market in India especially in metros where standard of living and disposable income is at an all time high, competitors will vie for the market share and can stoop to any levels while marketing their products. Guerilla marketing is just one of the strategies and surely one can learn a lot from the ongoing battle, especially people interested in marketing/marketing techniques. Things have already started to boil coz of this ad campaign and both Lifestyle, Shoppers Stop are analyzing the effect of the strategy used by Mr Biyani and Future Group. Lifestyle is even planning to take Future Group and their ad campaign to Advertising Standards Council of India (ASCI). Future Group have done a very creative job and surely time will tell the effect of this strategy. KEY SUCCESS FACTOR OF BIG BAZAAR: 35

We have a store opening virtually every fortnight; I have lost count now of how many I have opened." - Kishore Biyani Big Bazaar: Brands Identity, Personality & Symbolism Big Bazaar is Indian personification of retail. Its like an Indian bazaar or mandi or mela, the environment created by traders to give shoppers a sense of moment. Its personality is of being an entity away from fancy or pretty and being authentically "no-frills". Kishore Biyani never hired any foreign consultant for Big Bazaar which is evident from Indian-specific personality of the brand. The brands personality is self-explanatory by its tag-line only. This statement places Big Bazaar at the top of customers mind. It reflects that entrepreneurship and simplicity are the essence of character of Big Bazaar. To use predatory pricing is not in the personality of Big Bazaar, they never sell goods below the price they have purchased it. Big Bazaar, the "Indian WalMart", is the modern Indian family's favorite store. Big Bazaar symbolizes modern retail, the business which isnt looked up to in our country, is now in the eyes of many multi-national biggies. Big Bazaar has shown a robust growth in recent years. Demerits of Marketing a Commodity Market: Brands evolve from unbranded commodities to references, where the name is used for identification. This is also evident from the Goodyears (1996) chronological brand categorization. There is lack of differentiation if marketing of commodity is done. Commodities and differentiated products are the two ends of the product spectrum. Each unit of a commodity is exactly like every other unit. A product is a commodity when all units of production are identical, regardless of who produces them. Commodities tend to be raw materials like corn, wheat, copper, crude oil, etc. The stone marble is mined and sold by many companies in Rajasthan; its like an unbranded commodity, where each producer is selling identical product. This means that an individual producer has no control over his/her price. On the other hand, people who are owners of brands or differentiated products are "price-makers". Producer of a differentiated product creates a separate market for his/her individual product. Value of Branding: Branding plays a crucial role for all the products and services. A successful brand is an identifiable product or service, and buyers or users perceive values in it which matches their needs. There are certain advantages of branding. They are: Product dies but a good brand never dies: The first car T-model is no more but the brand 'FORD' is still alive. 'Pears' soap that was launched somewhere in the end of 1800 is still alive although they have changed the product. Even they are looking for line extension but basic brand names are the same. Sales or market share: A brand generates familiarity and trust, and hence, leads to greater sales. Branded products have an edge over unbranded products. Premium price: 36

Brands generate trust, a brand manager can charge extra price and people pay for that trust. Differentiation: Creating a brand is nothing but creating a strong association. This association clearly differentiates the branded product from the rest. As the value of brand becomes stronger and more relevant to customers, the brand becomes more involving, and thus, managers need to make their brand values more relevant to increase customers involvement. This is explained by religion model also. Products without any form of added value connected to the generic element. Brand Culture Brand: Brands that are so strong that they - in the eyes of the consumer have become equated with the function they represent. Brand Religion Brand: The ultimate brand position is that of brands that - in the eyes of the consumer - have become a "must", a faith to which they profess. Big Bazaar: Positioning & Establishment Big Bazaar has established itself in the first quadrant of Organization Value and Customer Value Matrix of current strategy of Big Bazaar elaborates the core competencies and areas of improvement. The key features that have shaped in establishing of brand include: Big Bazaar ensures that no other kirana store / departmental store are offering considerable discount compared to its own price. This helped Big Bazaar in being the "value for money" store. Big Bazaar scores high on product mix as compared to kirana store. Cheap and local products are heavily stocked in Big Bazaar which makes it easier to attract lower middle class category of customers. Promotion of kirana is rare event but Big Bazaar used this channel efficiently to establish itself as national brand.

A layout chart of Big bazaar located at Gopalpura Byepass, Jaipur LAYOUT INDEX



HELP DESK As you can see from the layout, the Help Desk is located in a place where everyone has their first sight that is in front of the entrance. This shows that when a person enters in to big bazaar it can get all information about the stores of big bazaar from the person sitting in the help desk. Help Desk uses paging service as a tool for the convenience of its employees and customers. KIDS SECTION The kids section is located just at the left corner of the entrance of big bazaar. In the kids section kids accessories like diapers, trolleys, suckers, water bottles are available in one part. Kids jackets and baba suits are available in another part. Kids casual wear (jeans and shorts) are placed in one part of it and infant shirts & t-shirts are also placed in another part. In this section the pillars are used for displaying information like size chart and section description. The apparels are available at a price of Rs59 onwards. MENS SECTION Next to it is the mens section that is in the center. It is divided in to five parts. At one part men formal shirts are available. In other parts men trousers, suits and blazers, fabrics and ethnics are available respectively. Here the price ranges from a minimum of Rs99 to Rs899. LADIES SECTION Next to it is the ladies section that is in the extreme right side. The ladies section is segregated in to seven parts. Ladies section starts 38

from ladies ethnics, ladies western wear, ladies formals (office wear), ladies accessories lingeries, ladies perfumeries, and ladies cosmetics respectively. Here the price of the apparel ranges from Rs99 to Rs1000 approx.

Promotional scheme With an add on to the above products there are various other products which are available with a promotional scheme. The various products under this scheme includes girl t-shirts, infant winter wear etc. Non-Promotional scheme There are various other products available without any promotional scheme which includes jeans, infant baba suits, infant t-shirts, kids night wear, kids salwar suits etc. Sports Store At the extreme corner there is a sports store where various kinds of sport items are available. Food Bazaar The food bazaar is in the underground of the building. Various kinds of food items, fruits and vegetables are available there. Sitting arrangements are well made so that people can sit and take tea, coffee or snacks or any other food item and can relax. Cash Counter The cash counter is located just near the exit

MAJOR INDIAN RETAILERS: The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans to focus on lifestyle products. The Mahindra group is the fourth large Indian business group to enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group, and Bharti Enterprises Ltd. The other three groups are focusing either on perishables and groceries, or a range of products, or both. RPG Retail-Formats: Music World, Books & Beyond, Spencers Hyper, Spencers Super, Daily & Fresh Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station, Brand Factory, Depot, aLL, E-Zone etc. The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark, and Titan Industries with World of Titans showrooms, Tanishq outlets, Chroma. K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, In orbit Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores. Pyramid Retail-Formats: Pyramid Megastore, TruMart 39

Nilgiris-Formats: Nilgiri's supermarket chain Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain. Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain Vishal Retail Group-Formats: Vishal Mega Mart BPCL-Formats: In & Out Reliance Retail-Formats: Reliance Fresh Reliance ADAG Retail-Format: Reliance World German Metro Cash & Carry Shoprite Holdings-Formats: Shoprite Hyper

LITERATURE REVIEW BY SOUMEN CHATTERJEE Unique customer perception (UCP): According to soumen, Unique Customer Perception is what is required by companies instead of Unique Selling Proposition. It is ultimately that customer look for satisfaction based on the picture of perception derived from various sources. If these perceptions of customer can be analyzed then promotion would be easier for customer centric marketing. This has lead to the concept - Customer Perception is the Rule and not Customer Satisfaction. HUAWEI Satisfy customers perception is the biggest challenge: In meeting customers' requirements and measuring customers' satisfaction indexes, customer perception should be definitely a key consideration. Qualified services in the operation execution layer, technical management layer and business development layer are necessary. It is more important to understand customer expectations and make efforts to exceed their expectations. In customer satisfaction management, the biggest challenge is customer perception management, or customer perception satisfaction. The major characteristics of service is intangible, hence the core value of services is not like a physical product but the spiritual experience and perception of customers. The final aim and ideal effect of service provisioning is to have customers perceive and enjoy the service. Such perception is both at psychological and behavior levels, and it is the contents of high quality life in the modern society. Customers are seeking for material deliverables as well as perceptive enjoyment when purchasing a service product. Since perceptive enjoyment is a vital service objective, one of the key service management objectives shall be meeting customers' perceptive enjoyment.




Big Bazaar: Is se sasta aur acha kahin nahin Big bazaar is the companys foray into the world of hypermarket discount stores, the first of its kind in India. Price and the wide array of products are the USPs in Big Bazaar. Close to two lakh products are available under one roof at prices lower by 2 to 60 per cent over the corresponding market prices. The high quality of service, good ambience, implicit guarantees and continuous discount programmes have helped in changing the face of the Indian retailing industry. A leading foreign broking house compared the rush at Big Bazaar to that of a local suburban train. Food Bazaar Wholesale prices Food Bazaars core concept is to create a blend of a typical Indian Bazaar and International supermarket atmosphere with the objective of giving the customer all the advantages of Quality, Range and Price associated with large format stores and also the comfort to See, Touch and Feel the products. The company has recently launched an aggressive private label programme with its own brands of tea, salt, spices, pulses, jams, ketchups etc. With unbeatable prices and vast variety (there are 42 varieties of rice on sale), Food Bazaar has proved to be a hit with customers all over the country. Is Se Sasta Aur Accha Kahin Nahin !! What's in store for you at Big Bazaar? 70,000 products at 6- 60 % discount. At Big Bazaar, you will get : A wide range of products at 6 60 % lower than the corresponding market price, coupled with an international shopping experience. Products available in Big bazaar

Apparel and Accessories for Men, Women and Children. Baby Accessories. Cosmetics Crockery Toys Home Textiles Home Needs Luggage Linens Sarees Stationery Utensils & Utilities

Dress Materials Suiting & Shirting Household Appliances Electrical Accessories Household Plastics


Electronics Footwear

Hardware Home Decor

Food Bazaars core concept is to create a blend of a typical Indian Bazaar and International supermarket atmosphere with the objective of giving the customer all the advantages of Quality, Range and Price associated with large format stores and also the comfort to See, Touch and Feel the products. 'FOOD BAZAAR' a division of Pantaloon Retail India Ltd is a chain of large supermarkets with a difference. It was flagged off in April'02.With store sizes ranging from 8,000 sq ft to 15,000 sq. ft. in Mumbai (two stores), Kolkata, Bangalore & Hyderabad, it is opening more stores at Gurgaon (Delhi), New Bombay & Nagpur. It currently caters to over 1.2 million customers every day across 4 outlets in India and is soon set to expand and double this figure across 8 outlets all over the country by June 2003. Food Bazaar offers the Indian consumer the best of Western and Indian values. The western values of convenience, cleanliness and hygiene are offered through pre packed commodities and the Indian values of "See- Touch- Feel" are offered through the Mandi atmosphere created by displaying staples out in the open, all at very economical and affordable prices without any compromise on quality. This satisfies the Indian consumer and comforts her before making her final buying decision. At other super markets, the consumer is deprived of this factor. Truly the Indian consumer now agrees with Food Bazaar: "Ab Ghar Chalaana kitna Aasaan. This positioning platform of Food Bazaar is evident from the higher discounts and the wholesale price-points which is below MRP. Food Bazaar represents the companys entry into food retail and is targeted across all classes of population. Food Bazaar replicates a local mandi, to provide the much important touch & feel factor which Indian housewives are used to in the local bazaar. Food Bazaar has over 50,000 stock keeping units which cover grocery, FMCG products, milk products, juices, tea, sugar, pulses, masalas, rice wheat etc, besides fruits and vegetables. All products are sold below MRP and discounts range between 2% to 20%. Fruits and vegetables are sold at prices comparable to wholesale prices.


i) ii) Data collection Data analysis and interpretations


Data Collection Data can be classified under two categories depending upon the sources utilized. These categories are, i) Primary data ii) Secondary data DATA COLLECTION Data is collected by using various methods. For the purpose of fulfilling the objective of study and for completing the Research project Report, both primary and secondary data collected. PRIMARY SOURCES: Questionnaire Keeping in view the objective of study a questionnaire (as given Annexure) was selected there is Twenty in all. All questions are small in size and arranged logically. The language is simple to understand. Interview Information was also obtained by conversation with Customers they were interviewed personally. SECONDARY DATA: The second information is taken from company document available on websites The other related journals information and industry associations sites have also been viewed. S AM P L I N G D E S I G N . SAMPLE SIZE: 150 consumers was sample size and I contacted 30 customers during this research work. The nature of sampling is NON PROBABITITY CONVINANCE SAMPLING helped in keeping the path of research in focus throughout the work. Collection of the questionnaire Sufficient time was given to the respondents to answer the questionnaire. Problem faced while collecting and filling questionnaire Some of the respondents were hesitant to answer the questionnaire. Some respondents did not want to answer the questionnaire, so they left it unanswered. Where the respondents did not find the relevant answer in his choice provided, they added they added their own choice or left it unanswered. Tabulation After all the questionnaires were collected back, the responses were tabulated. Each answer of the respondent was tabulated to its respective category.



I have done a market field survey on big bazaar. I have surveyed around 30 respondents of Jaipur who come to visit big bazaar. A specific questionnaire is prepared for the customers and data is obtained from them by moving around big bazaar and personally interacting with them. The customers gave me valuable information regarding their consumption pattern in big bazaar. I collected all those information and a proper analysis is done. All the analysis and its interpretations are discussed below. Each of the analysis is done as per the information obtained from the customers and a serious interpretation has been done to best of my effort.


Customers monthly income


5% 25% Higher Income Group (> Rs.60000) Middle Income Group (Rs. 40000-60000) 50% 20% Lower Income Group(Rs.10000-40000) No Income Group (< Rs.10000)

Analysis: The above diagram shows the distribution of income level of customers coming in to big bazaar. Among the 350 respondents 50% of customers are of middle income level that is between Rs10000 40000 per month. Least number of customers visiting Big bazaar are the higher income level people (> Rs.60000 pm) that constitute only 5%. The lower income level of people coming to big bazaar constitutes of 20%. 25% of people belong to no income group which mostly consists of students. Interpretation: Big bazaar is the hub of shopping for middle level income group people because of its reasonable price on its each product category. The higher level income group people dont prefer to do shopping in big bazaar as it doesnt deal with branded products. The higher level income group people are very status conscious and their psychology is such type that they dont prefer much to visit big bazaar as it is a discounted store. The lower income group people come in to big bazaar as they get goods at a discounted price. Hence big bazaar should include branded products in its product category which will encourage higher income group people to come in to big bazaar. Probably not much of lower income group people come to big bazaar as they dont like to have any shopping experience rather they just go for nearby store where they can get their necessity goods. Even they purchase goods on a regular basis on a small quantity. So they dont have much interest to come to big bazaar and do shopping.


Customers visit Big Bazaar

29% Weekly 34% 1.2 23% Monthly Quarterly On a unplanned basis

Interpretation: From this I interpret that in big bazaar 34% customers visit monthly, 29% customer visit weekly 23% customers visit quarterly and 14% customers visit on planned basis , it means mostly customers visit weekly and monthly basis for purchase their requirements.


Apart from Big Bazaar visit retail outlet

Yes No 64% 36%

70% 60% 50% 40% 30% 20% 10% 0% yes no 64%


Interpretation: From this I interpret that 64% customers of big bazaar visit other retail stores for their requirements and 36% customers of big bazaar generally do not visit other retail stores. It shows that customers satisfaction level is more in big bazaar.


Purpose behind visiting big bazaar

Shopping Outing Both 60% 10% 30%


30% Shopping Outing 60% 10% Both

Analysis: Out of the 350 respondents 60% of respondents visit big bazaar for shopping, 10% for outing and 30% visit big bazaar for both the purposes. Interpretation: From this I interpret that big bazaar is purely a shopping complex but it also facilitates a certain kind of ambience and decorum to the people that they also visit it for the purpose of outing. The infrastructure and ambience of big bazaar is so that people even like to go there even also they dont have to purchase anything. People enjoy doing shopp ing in big bazaar. This is very nice for it as often customers.


Demand for other retail outlets in a mall

Garment Outlet Footwear Outlet Food Court Entertainment Gift Corner Jewelers and Watches Store

65% 20% 30% 20% 10% 10%

70% 60% 50% 40% 30% 20% 10% 0%


Garment Outlet

Footwear Outlet

Gift Corner

Analysis: The above graph shows that 65% of people visit garment outlet in a mall other than that of big bazaar. 30% of people also prefer to visit food court in a mall other than big bazaar. 20% of the people go to footwear outlet in a mall other than big bazaar. 20% of people also go to mall for entertainment purpose. Some people that are 10% each also visit gift corner store and jewellery & watches store in a mall other than big bazaar.

Interpretation: From this analysis I come to know that most of the people tend to visit garment outlets in a mall other than big bazaar as it has some exclusive branded outlets. People also go for footwear stores as malls have branded footwear stores in it. People go for watching movies to mall for entertainment. Yet a few people visits gift corners and jewellery stores in a mall. This is of course a threat for big bazaar that it is not able to attract customers from other retail outlets and retain them with it. Big bazaar should 51

Jewellery and Watches Store


Food Court

definitely include more of branded products in its product category in order to bring in the customers of mall to it and retain them with it. It can include some of the exclusive branded outlets of cloths and jewellery in it in order to attract the brand choosy customers. Products mostly purchased by customers in big bazaar

Clothes Grocery Food Item Leather Item Electronic Item Gift Item Any other Item

60% 70% 50% 25% 15% 10% 10%

Any other Item Gift Item Electronic Item Leather Item Food Item Grocery Clothes 0% 20% 40% 60% 80% Series1

Analysis: This chart clearly indicates that the demand for grocery that is 70% is highest by the customers followed by clothes rated 60%. The next highest demand is for food items that is 50%. 25% demand is for leather items in big bazaar. Electronic items holds 15% of demand and gift items and other items has a demand of only 10% by the customers of big bazaar. Interpretation: From this analysis I interpret that customers demand are high for grocery and clothes followed by food items in big bazaar. Electronic items have a little demand by the customers. Gift items and other items are not much in demand by the customers. I can interpret that clothes, grocery and 52

food items are the major products which hold maximum number of customers. So big bazaar should maintain its low pricing and product quality to keep hold of the customers and also it should keep more qualitative products of gift and leather items so that people would go for more purchase of these items from it. Big bazaar has many local branded products of grocery and cloths and it is successfully selling it. It should also include branded products so that more sales can take place. Expenditure pattern of customers coming in to big bazaar Below Rs.500 /single visit 500-1000 /single visit 1000-1500 /single visit 1500-2000 /single visit More than 2000 /single visit 11% 16% 22% 22% 29%


11% 29% 16% Below 500 500-1000 1000-1500 1500-2000 More than 2000 22% 22%

Analysis: We can clearly see from this graph that majority of the customers spend a lot in big bazaar that is 29% of people spend more than Rs2000 in a single visit to big bazaar. Equal number of people that is 22% of people each spend Rs 1000-1500 and Rs 1500-2000 respectively in a visit to big bazaar.16% of people spend Rs 500-1000 and only 11% of customers are there who spends less than Rs500 in their visit to big bazaar. Interpretation: From this I interpret that most of the customers purchase goods in bulk which leads them to spend a lot. Volume sales are high in big bazaar. Customers tend to purchase more goods from big bazaar as it provides goods at a discounted rate. Probably those persons who spend more in a visit to big bazaar are purchasing on a monthly basis. Those customers 53

who are spending very less money that is below Rs 500 are mostly coming in just to move around big bazaar and spend time. In the process they used to spend money on food items and also purchase some products while roaming in it. Impulse buying behavior of customers comes in to play to a large extent. More discounts shall be provided to people who does bulk purchase. This will encourage people to purchase more products.

Time spent by customers in shopping in big bazaar Less than half an hour Half an hour to 1 hour 1 hour to 1 1/2 hours 1 1/2 hours to 2 hours More than 2 hours 10% 15% 35% 22% 18%

35% 30% 25% 20% 15% 10% 5% 0% Less than Half an hour 1 hour to 1 half an hour to 1 hour 1/2 hours 1 1/2 hours More than 2 to 2 hours hours 10% 22% 15% 18% 35%

Series 1

Analysis: People spend a lot of time in shopping in big bazaar. Majority of the respondents (35%) said that they spend at least 1 hour to 1 hours in big bazaar. 22% respondents also said that they spend 1 hours to 2 hours in their visit to big bazaar. Only 10% of people said that they spend very little time that is less than half an hour in big bazaar. Interpretation: As per the given data I interpret that customers are very product choosy now a days and thats why they spend a lot of time in shopping in big bazaar. Probably customers might even be spending more time in big bazaar as it provides a very nice ambience and atmosphere for the 54

people to shop in. Hence those persons who spend half an hour or less than half an hour in big bazaar are those persons who just come to purchase limited products and come only because of low pricing of products. People also spend much time in it but purchase very few goods. The sales personnel should focus on the people who take long time in shopping and purchases a lot and provide special kind of service to them as they are the major customers. Comparison of footfalls in weekdays and weekends

Weeks days Weekends

40% 60%


40% Weeks days Weekends 60%

Analysis: The above graph shows that more number of people comes to big bazaar in weekends than that of week days .40% of people visits big bazaar in weekdays where as 60% of people visit big bazaar in weekends. Interpretation: I can clearly interpret from this that most of the people tend to visit big bazaar in weekends rather than that of week days. There are more footfalls in big bazaar in weekends than that of week days. Though there is not much difference as 40% of people visit big bazaar in week days hence in weekends the footfall increases by 10%. As people come more in weekends, so big bazaar should be kept opened for more time in weekends. The infrastructure can be changed a bit in weekends so that customers can see more products clearly and can move around comfortably. In order to bring in more number of customers in week days big bazaar should provide some schemes in week days which will encourage people to come in to it in week days also. Hence the crowd is more in weekends and big bazaar should avail more parking spaces for its customers in weekends. It can make some 55

temporary arrangement for parking every weekend. It should not spend much money in advertising and displaying of products in weekdays rather it should advertise and display products more in weekends as more number of people comes in weekends.

Customers preference of timing to visit big bazaar

10 A.M - 1 P.M 1 P.M 3 P.M 3 P.M 6 P.M 6 P.M 10 P.M

8% 17% 35% 40%


17% 40% 10 A.M - 1 P.M 1 P.M 3 P.M 3 P.M 6 P.M 6 P.M 10 P.M


Analysis: The above pie chart shows that most of the people prefer to visit big bazaar in evening time than that of the day time. Only 25% of people tend to visit big bazaar during day time while 75% of people tend to visit big bazaar during after noon time. Interpretation: From the above analysis I interpret that evening time is the peak time for big bazaar and day time is the off peak time for big bazaar. There is more number of people found in big bazaar during evening time than that of day time. Probably more of products are being sold during evening time in big bazaar than that of day time. Big bazaar shall provide some special 56

offerings during day time so that more people should come in during day time. It could offer some special kind of product in daytime which will be not available during evening time. In this way it will bring in more number of people during day time for getting the special kind of products but along with that it will be able to sale other products as people do a lot of impulse buying at big bazaar. Comparison of customers purchasing with planned list of products and purchasing products on unplanned basis

Yes No Ever

50% 40% 10%


yes 50% 40% no ever

Analysis: As shown in the graph out of my total respondents of 350, 50% of customers come to big bazaar with a planned list of products. 40% of people come in to big bazaar without any planned list of products to be purchased from big bazaar. Interpretation: As per the data obtained from the customers of big bazaar I interpret that most of the customers comes in to big bazaar with a planned list of products. Few customers come to big bazaar without any planned list of products and purchases products depending on their selection. These people basically come to the mall and hence get in to big bazaar. Depending on the product category and brand and quality of products they purchases goods. Some couples come to mall and go to food bazaar to have food together and


to have chit chat among them. The customer who comes with a planned list of products purchases more products than that of the customers who comes without any planned list of products. So big bazaar should provide more variety and essential goods so that more number of people should come in with a planned list of products. Brand preference of customers in big bazaar Yes No Depends on category

10% 50% 40%


10% 40%

Yes No 50% Depends on category

Analysis: As seen in the above chart it is clearly known that only 10% of people come in to big bazaar with a list of brands in advance. 50% of people completely deny that they dont prepare in list of brand in advance. 40% of people told that they prepare a list of brand depending on the product category. Interpretation: From this I interpret that customers dont opt for much brand preference while purchasing products in big bazaar. A few customers search for brands but depending on the product category. Customers probably dont decide for brands on products as there are not much of known branded products available at big bazaar. On product categories like grocery and clothes, big bazaar has many local branded products. Customers purchase a lot of these as its cheap in price even though its quality is not so good. As most of the customers belong to lower class and middle class people, they purchase those local branded products as it gives them value for money. Different products of the same category have different prices. Quality of products varies with the price. This enables customization of products for various types of customers. Customers search for brands mostly in apparel section. Some customers also pre decides the brand on the local manufactured grocery and food products of big bazaar. Big bazaar should include more of the branded products in its each category so that customers


have more options to choose among the brands. This will bring in more number of people to big bazaar which will definitely increase the sales.

Comparison of brand preference on different product category

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%


Analysis: This graph shows that cloths and grocery are the only two items on which customers mostly prefer the brands that is 40% each. 33% brand preference is on gift items and 25% is on electronic items. Brand preference on leather items is 2% and 12% on any other item. Interpretation: From this I interpret that some of the products brand are pre decided in advance and for some of the products customers dont at all pre decide any brand. As per electronic goods are concerned customers pre decide the brand as many branded electronic products are available in big bazaar. The customers pre decides brands on cloths and grocery most as big bazaar produces much of local brands and also have some well known branded products of clothes with it like flying machine jeans. Mode of payment of customers in big bazaar

th Le s at he E rI le te ct m ro ni c Ite m s G ro ce ry G if t Ite A ny m s O th er Ite m

C lo


Cash Payment Credit Card Debit Card

55% 19% 26%

26% Cash Payment Credit Card 55% 19% Debit Card

Analysis: As per my study is concerned, out of the total respondents 55% of people make cash payment in big bazaar. 19% of them uses credit card as their mode of payment and 26% of the people makes payment in big bazaar through their debit card. Interpretation: As per the obtained data I interpret that more number of people makes cash payment in big bazaar. A fraction of people uses their credit card for payment in big bazaar and a very few people uses their debit card for payment. I can interpret that quick exchange of money for goods is done in big bazaar as most of the people mode of payment is cash payment. Hence sometimes big bazaar has to wait for a short time period as some of the customers make their payment through credit and debit card.


Comparison of factors which encourages customers to come in to big Price Service Ambience Product Variety Product Quality Convenience bazaar 60% 40% 50% 65% 20% 35%

70% 60% 50% 40% 30% 20% 10% 0% 60% 50% 40% 20% 35% 65%

Analysis: People are mostly encouraged to come to big bazaar because of its cheap price and availability of variety of products. Around 65% of the total respondent said they are mostly encouraged to come to big bazaar as it has variety options. Even most of the customers said that they get goods there in a discounted price and so they come in to it. Many customers also said that they feel good about the service and ambience provided by big bazaar. Around 35% of customers also said that convenience is also another factor


which leads them to come to big bazaar. Product quality is rated at very low that is only 20% which encourages the customers to come to big bazaar. Interpretation: From this analysis I interpret that big bazaar is a well known for its variety options. People mostly come to big bazaar as they get various kinds of products under one roof. It is also clearly known that big bazaar sales its goods at a discounted price as compared to the market. Even it provides a good service and ambience to its customers which encourages them to visit big bazaar more and more times. I can also interpret from this that big bazaar has located itself in a good place from where it is able to attract customers. As a hypermarket which is to be located far off the city, big bazaar has located itself in a good place from where it is convenient for people to visit big bazaar. Big bazaar should try and produce more qualitative products so that customers can get more satisfaction and would never think of not doing shopping in big bazaar.

Services of the sales personnel in Big Bazaar

Very good Good Ok Poor Very poor 17% 29% 36% 13% 5%

40% 35% 30% 25% 20% 15% 10% 5% 0% Very good Good Ok Poor Very poor 17% 29% 13% 5% 36%

Interpretation: From this I interpret that 36% customers realize service of sale personnel in Big Bazaar is OK, 29% realize good, 17% realize Very Good, 13% realize Poor and 5% customers is very dissatisfied with sales personnels in Big Bazaar. 62

Customers mode of transport to big bazaar Hired Vehicle Two-wheeler Less than adequate 45% 10% 40%

Four-wheeler Any Other

35% 15%



Hired Vehicle 35% 40% Two-wheeler Four-wheeler Any Other

Analysis: Around 40% of the total respondents come to big bazaar with their own two wheelers. The second majority of people consist of people riding four wheeler and coming in to big bazaar. Only 15% of people of the total respondent visits big bazaar on hired vehicles. 10% customers of the total respondent comes in any other mode of transport. Interpretation: From the above data I interpret that there are more number of four wheelers coming found in big bazaar than that of two wheelers. People prefer more to go to big bazaar in four wheelers than that of two wheelers. A few people are found who comes in to big bazaar with a hire vehicle. Probably they might be the tourists. Parking space availability in big bazaar


Adequate More than adequate

45% 10%

Yes No

65% 35%

10% Less than adequate 45% Adequate More than adequate


Analysis: As it is shown in pie chart most of the people say big bazaar does not provide adequate parking space. Equal number of people also says that adequate space is provided for parking big bazaar. Only 10% of people say that more than adequate space is available for parking in big bazaar. Interpretation: Analyzing the above data, I interpret that customers are not satisfied with the parking space availability provided by big bazaar. Hence its a threat for big bazaar as it may loose its customers because of less parking space availability. Even though many customers say adequate space is available for parking in big bazaar but also it is a threat for big bazaar as it is seen more number of people are expected to come in to big bazaar. In holidays probably it will be very difficult for customers to park their vehicle in big bazaar. Customers preference towards Kirana store



yes 65% no

Analysis: Out of my total respondent of 30 customers, 65% of them says they go to their nearby kirana store and 35% said that they dont at all go to any kirana store. This shows that majority of people go to kirana store even though they visit big bazaar. But some customers are there who never goes to any kirana store. Interpretation: As per the given data I analyze that most number of people tend to purchase goods from nearby kirana store even if they come to big bazaar. I can conclude from this that a kirana store is a competitor of big bazaar. Some customers never go for shopping in kirana store as of it does not have much variety option available with it. Probably they are more interested in having a shopping experience rather than to just go and purchase goods from kirana store.

Comparison of Big bazaar with any Kirana store

Shopping Price Big bazaar Kirana store 70% 30% Service 50% 50% Variety 100% 0% Quality 40% 60% Convenience 25% 75% Experience 90% 10% Ambience 95% 5%


120 100 80 60 40 20 0 70 50 30 0 100 75 60 40 25 10 5 90 95 Big bazaar Kirana store

Analysis: The above graph shows the comparison of different factors between big bazaar and a nearby kirana store. 70% of people say big bazaar provides goods at a cheaper price as compared to that of a kirana store. 50% of people say big bazaar provides better service and another 50% of them say kirana store provides better service. Each and every customer that is 100% agrees that there are more variety of products available at big bazaar than that of kirana store. As per quality of goods is concerned 60% of the customer say kirana store provides better qualitative products while 40% of the customers say big bazaar also provides qualitative products. 75% people say it is more convenient for them to go to a kirana store while 25% of them say going to big bazaar is more convenient for them. 90% of respondents said it is a good shopping experience at big bazaar while 105 of them said that they also have a good shopping experience at kirana store. As per ambience is concerned 95% of customers said big bazaar provides much nice ambience than big bazaar while 5% of them said that ambience provided by kirana store is also equivalent to that of big bazaar. Interpretation: I interpreted from this that a kirana store is one of the competitor of big bazaar. It is a threat for big bazaar as some of the attributes of a kirana store provides more satisfaction to customers. Big bazaar should try to improve on each of its attributes and out compete the kirana store so that it can convert the customers of kirana store to be the customers of big bazaar. Comparison of Big bazaar with others Organized retailers based on following points
Price Service Variety Quality Convenience Shopping Ambience

ric S e er vi ce V ar ie ty Q S ho Co ua pp n lit in ve n y g E ien xp c er e ie A nc m e bi en ce


Experience Big bazaar O. Org. Retails 45% 55% 50% 50% 55% 45% 52% 48% 54% 46% 46% 54% 58% 42%

60 55 50 45 40 35 30 Big bazaarO. Org. Retails Series 2

Interpretation: I interpreted from this that other organized stores is another competitors of big bazaar. It is a threat for big bazaar as some of the attributes of other organized stores store provides more satisfaction to customers. Big bazaar should try to improve on each of its attributes and out compete the other organized stores.





1. Most of the customers buy their requirement in Big Bazaar on the basis of Weekly and monthly basis. Customers realized that Big Bazaar stores provide qualitative products/service with reasonable price. 2. At present time Big Bazaar provide different types of product assortments to the customers. 3. Continuously opening of Big Bazaar chains in different major cities, increasing quantities of the customers & profit show that Big Bazaar most accepted name in organized retail chain in India. 4. Big Bazaar mainly deal with middle income group people who want qualitative product with reasonable cost. 5. Big bazaar has a good reputation of itself in the market. 6. Big bazaar has positioned itself in the market as a discounted store. 7. Big bazaar holds a huge customer base. The majority of customers belong to middle class family. 8. Impulse buying behavior of customers comes in to play most of the times in big bazaar. 9. There are more than 50 big bazaars in different cities of India, it seems that there is a vast growth of big bazaar lying as customers demand is increasing for big bazaars. 10. Big bazaar is a hypermarket as it provides various kinds of goods like apparels, grocery, stationary, food items, electronic items, leather items, watches, jewellery, crockery, decorative items, sport items, chocolates and many more. It competes with all the specialty stores of different products which provide goods at a discounted rate all through the year. 11. The major players in retail industries are Big bazaar, The Tata Groups (Croma), Vishal Retail Group, Reliance Retail, Kirana stores & Sabka Bazaar etc.



Big bazaar should include more of branded products its product category so as to attract the brand choosy people to come in to big bazaar. Big bazaar should provide large parking space for its customers so that they can easily park their vehicles. It should make different cash counters for different customers. Cash counter and credit card payment counter should be placed differently in order to reduce the rush and save the customers time. This will be a kind of motivator for the customers of big bazaar. The service of the sales person is needed to be improved. Personal care should be taken by the sales person for the customers so that the customers feel good. During the off peak hours big bazaar should provide some offers to its customers so that people would be encouraged to come to big bazaar during off peak hours. The customers who are present in the mall during the off peak hours of big bazaar will definitely go in to big bazaar if surprise offers are made at that time.

Customer care department is needed to take proper care of customer complaints and queries. The person sitting at the help desk of big bazaar should be able to provide all necessary information to the customers whenever it is required. The infrastructure is needed to be changed a bit during weekends as heavy crowd comes in to big bazaar during those days.

TASK ASSIGNED: Study of catchment area (3 km radius) of Big Bazaar Study of competitors of Big Bazaar Preparing promotional activities in the store Preparing for arrangements for games in store Interacting with customers and knowing their problems Making proper schedule for games in store 70

Doing brainstorming and thinking about how to cut cost in the activities to be done

EXPERIENCE: Following are list of major learning which learn during these two months project Understood basic need of customers Learned that different customers have different type of requirement i.e. according to their income and taste Corporate working Learned the approach of working in corporate, each time chain of procedure were followed while communicating internally. Eventually I observed the delegation of authority and responsibility in the work Team work Learned how to unite work with others, In the later week of SIP work on promotional activities were performed and at that time I always looked forward for guidance from the staff available for the detail about the company according to ministry of corporate affairs. Communication with customers It was a need to communicate with different customers in different ways. It was also needed to speak in Marwari language with them. Actual working environment The project helped me providing good exposure to actual working environment of an organization. I understood working of marketing department in the company Relationship with Classroom Learning Learned to correlate the class room teaching of various marketing topics with actual practical learning

Conclusion Big bazaar is a major shopping complex for todays customers. It is a place where customers find variety of products at a reasonable price. Big bazaar has a good reputation of itself in the market. It has positioned itself in the market as a discounted store. It holds a huge customer base. The majority of customers belong to middle class family. The youth generation also likes shopping and moving around big bazaar. Volume sales always take place in big bazaar. Impulse buying behavior of customers comes in to play most of the times in big bazaar.


Big bazaar is a hypermarket as it provides various kinds of goods like apparels, grocery, stationary, food items, electronic items, leather items, watches, jewellery, crockery, decorative items, sport items, chocolates and many more. It competes with all the specialty stores of different products which provide goods at a discounted rate all through the year. It holds a large customer base and it seemed from the study that the customers are quite satisfied with big bazaar. It seems that there is a vast growth of big bazaar lying as customers demand is increasing for big bazaars. Big bazaar is a hypermarket store where varieties of products are being sold on different product category. It has emerged as a hub of shopping specially for middle class people. Different types of products starting from a baby food to pizzas all are available under one roof. In Jaipur it is the middle class people who mostly do marketing from big bazaar. Even most of the people do their monthly shopping from big bazaar. People not only visit big bazaar to do shopping but also visit for outing purpose as it provides a very nice ambience to its customers. As people go to malls they just tend to move around big bazaar whether it is for shopping purpose or for outing purpose. Grocery, apparels and food items are the products which are demanded most by the customers of Delhi in big bazaar. The major drawback of big bazaar is that it lacks in providing enough parking space for its customers. This may discourage the customers to come to big bazaar and shop as they face difficulty in parking their vehicles. Even though some customers say that they dont feel problem in parking their vehicle, it is because of the parking space available to them by the mall. As it is surveyed it seems that the biggest competitors of big bazaar are the kirana stores, discounted specialty stores like Vishal mega mart, Reliance Retail, & N mart Sabka Bazaar etc.




Limitations of study
Certain limitations do creep in a research study due to constraints of the time, money and human efforts, the present study is also not free from certain limitation, which were unavoidable. Although all efforts were taken to make the result of the work as accurate as possible as survey but the survey have following constraints. I- Some customers were not willing to give appointment due to their busy schedule. II- only a selected sample of customer could be contacted. III- Due to time constraint and other imperative work load during the t period it could not be made possible to explore more area of concern pertaining to study. IV- Also impossible for company to prove information is confidential. V-Due to fast pace of life, some customers were not able to do justification to the questionnaire. VI-Personal biases might have come while answer the questionnaire. VII-As per company rule many information was not disclose as the manager are busy in their daily schedule. It is not possible for us to spend more time in interaction with them.



Questionnaire PART-1
1. Name: 2. Age: 3. Gender: 4. Address: 5. Qualification: 6. Profession: 7. Ph. 8. Whats your monthly income? a) Below 10,000 b) 20,000 40,000 c) 40,000 60,000 d) More than 60,000

PART-2 1.How frequently do you visit Big Bazaar? a) Weekly b) Monthly c) Quarterly d) On unplanned basis 2.Apart from Big Bazaar do you intend to visit any other retail outlet in a Mall? a) Yes b) No

2.(a). If yes then what are the other retail outlets do you intend to visit in a mall? e) Garment Outlet f) Footwear Outlet g) Food Court h) Entertainment i) Gift Corner j) Jewellery and Watches store 75

2. What is the purpose behind visiting Big Bazaar? a) Shopping b) Outing c) Others

3. What type of products do you mostly purchase in Big Bazaar? a) Cloths b) Grocery c) Food Item d) Leather Item e) Electronic Item f) Gift Item g) Any other Item

4. On an average how much amount of money do you spend in a visit to Big Bazaar? a) Below 500 b) 500 1000 c) 1000 1500 d) 1500 2000 e) More than 2000

5. How much time do you spend in a visit to Big Bazaar? a) Less than half an hour b) Half an hour to 1 hour c) 1 hour to 1 hours d) 1 hours to 2 hours e) More than 2 hours

6.Which days of the week do you prefer to visit Big Bazaar? a) Week days b) Weekends 76

7. Which time of the day do you mostly prefer to visit Big Bazaar? a) 10am 1pm b) 1pm - 3pm c) 3pm-6pm d) 6pm 10pm 10. Do you go with a planned list of products to be purchased from Big Bazaar? a) Yes b) No c)some time

11. Do you prepare a list of brands in advance when you visit to Big Bazaar? a) Yes b) No c) Depends on category

12. In which categories of products do you pre-decide the brands? a) Cloths b) Leather Items c) Electronic Items d) Grocery e) Gift Items f) Any other Item

13. What is your mode of payment in Big Bazaar? a) Cash payment b) Credit Card c)Debit Card

14. What encourages you to visit Big Bazaar? a. Price b. Service c Ambience c. Product Variety d. Product Quality 77

e. Convenience

15. How would you rate the services of the sales personnel in Big Bazaar on a 1 5 scale? Very good Good Ok Poor Very poor

16. Which type of your convenience to Big Bazaar? a) Hired vehicle b) Two-wheeler c) Four-wheeler d) Any other 17. How is the parking space availability in Big Bazaar? a) Less than adequate b) Adequate c) More than adequate

18. Do you go to Kirana store? a) Yes b) No

I. 1. 1. 1.

19. Compare your nearest Kirana store with Big Bazaar. a) Price Kirana store II. b) Service Kirana store II. c) Variety Kirana store II. d) Quality Kirana store II. e) Convenience

Big Bazaar Big Bazaar Big Bazaar Big Bazaar


1. 1. 1.

Kirana store f) Shopping Experience Kirana store g) Ambience Kirana store


Big Bazaar Big Bazaar Big Bazaar

20. Compare others organized retail stores with Big Bazaar on the following parameters. a) Price 1.Big Bazaar II. Others Organized Retailer b) Service 1.Big Bazaar II. Others Organized Retailer c) Variety 1.Big Bazaar II. Others Organized Retailer d) Quality 1.Big Bazaar II. Others Organized Retailer e) Convenience 1.Big Bazaar II. Others Organized Retailer f) Shopping Experience 1.Big Bazaar II. Others Organized Retailer g) Ambience 1.Big Bazaar II. Others Organized Retailer



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