Graphic Era Hill University Dehradun Uttarakhand .

STUDY ON

A STUDY ON THE EFFECTIVE PROMOTIONAL STRATEGY FOR CUSTOMER TO PURCHASE A PRODUCT OF BIG BAZAAR

A Report Submitted in Partial Fulfillment of The Requirement for the Award of

MASTERSDEGREEIN BUSINESSADMINISTRATION
2011-2013

Submitted by Deepak
Institute Guide:
Mr. Himanshu Kargeti Faculty Graphic Era Hill University

ehl

IND !

CHAPTER NO. I II III I* * *I *II *III I! ! !I !II !III !I* !* !*I !*II !*III !I! !! !!I !!II

TOPIC Summar# A%&nowled'ement De%laration Indu+tr# Profile -ompetition In Retail /oard of Dire%tor -ompan# Profile Store Stud# Future Plan+ Of /i' /a2aar Or'ani2ational Stru%ture Store Stru%ture *i+ion 4 5i++ion Suppl# -hain 5ana'ement 5# 7earnin' Re+ear%h 5ethodolo'# Anal#+i+ 4 Interpretation Findin'+ Re%ommendation+ -on%lu+ion 7imitation+ Anne9ure /iblio'raph#

PA" NO. $ ( ) , .$ 0. 01 0) $. $0 $3 $$ $6 (8 (. (3 )3 )( )) ), )6 ,.

! -UTI* SU55ARY

Indian retail sector is witnessing one of the most hectic Marketing activities of all times. he companies are fighting to win the hearts of customer who is God said !y the !usiness tycoons. here is always a "first mover advantage# in an upcoming sector. In India$ that advantage goes to %&IG &'('')*. It has !rought a!out many changes in the !uying ha!its of people. It has created formats$ which provide all items under one roof at low rates$ or so it claims. In this pro+ect$ we will study its marketing strategies and promotional activities. he research titled :A Stud# on the effe%ti;e promotional +trate'# whi%h influen%e+ %u+tomer to pur%ha+e a produ%t of /i' /a2aar< helps us to understand the effect of promotional strategy which is responsi!le for attracting customer towards !ig !a,aar his study helpful to top level management to improve the present promotional strategy of &IG &'(''). he report deals with the impact of promotional activity which attracting customer towards !ig !a,aar. he research was carried out as per the steps of Marketing )esearch. was undertaken. survey research. /uestionnaire. he well

supportive o!+ectives were set for the study. o meet the o!+ectives primary research he data collection approach adopted was e-perimental research . he instrument used for the data collection was o!servation . he target respondents were the visitors of &IG &'('')$ with the

sample si,e of 011 for the study of sales management of the company. a!les . charts were used to translate responses into meaningful information to get the most out of the collected data. &ased on those the inferences have !een drawn with peer supportive data.

A-=NO>7 D" 5 NT

he report what I have presented is not the made outcome of my la!or alone. here are do,ens of hands !uttressed me all through the programme it doesn#t go without thanking all of those who constantly keep me on the move.

I e-press my gratitude to our 2rof. Mr. Himanshu Kargeti who has supported me to complete this pro+ect. I would like to e-press my most sincere thanks and gratitude to E-ternal guide Mr.3ivek 4arayan 5ohri who have given a good support to gra! the e-ternal e-posure and to complete a pro+ect in &ig &a,aar.

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

D -7ARATION

I the under+i'ned ha;e %ompleted the pro?e%t entitled :-al%ulation of /it

rror rate throu'h quali2er u+in' 5AT 7A/< +ubmitted in partial fulfill of

the requirement for the award of the De'ree /a%helor of Te%hnolo'# to the "raphi% ra Uni;er+it#@ . The pro?e%t wor& i+ ori'inal 4 the %on%lu+ion+ drawn are ba+ed on the data 4 information %olle%ted b# me.

2lace6 7ehradun

7ate6

'rshi Kansal 'kriti 3erma 'kanksha 8haudhary 7eeksha &argali

INDUSTRY PROFI7
Introdu%tion

)etail means selling goods and services in small /uantities directly to customers. )etailing consists of all activities involved in marketing of goods and services directly to consumer for their personnel family and household use. he Indian retailing industry is !ecoming intensely competitive$ as more and more payers are 3ying for the same set of customers. he ma+or retail players are 2antaloon )etail$ 9hoppers 9top$ )eliance$ etc.$ )etailing is one of the !iggest sectors and it is witnessing revolution in India. he new entrant in retailing in India signifies the !eginning of retail revolution. India:s retail market is e-pected to grow tremendously in ne-t few years. 'ccording to ' Kearney$ he ;indows of <pportunity shows that )etailing in India was at opening stage in 0==> and now it is in peaking stage in ?11@. India:s retail market is e-pected to grow tremendously in ne-t few years. India shows U9ABB1 !illion retail market that is e-pected to grow 01C a year$ with modern retailing +ust !eginning. India ranks first in ?11>. In fact$ in ?11> and ?11@$ India is the most compelling opportunity for retailers$ !ecause now India is in peaking stage.

Sector details
0. Introduction to retail industries. ?. )etail word is derived French word retailer means to cut off a piece. B. )etailing includes all the activities involved in selling goods or services to the final customer for personnel or nonD!usiness use. E. 9upermarket is a retailing of a wide variety of consumer products under one roof$ ample stock$ stock of several !rands . e-tended !usiness hours.

Ai+tor# of retailin'
)etail concept is old in India. ;orld#s first departmental store started in )ome.

oday#s kirana stores are !ased on Manusmriti . Kautilya#s arthshastra. Haats$ Melas$ Mandis . door to door salesmen are traditional Indian retail. 3ishal Mega Mart is a retail sector$ which is providing good /uality of products in very reasona!le price than its competitors. )etailing and wholeselling consist of many organi,ations designed to !ring goods and services from the point of production to the point of use. )etailing includes all the activities involved in selling goods or services directly to final consumers for their personal$ nonD!usiness use. )etailers can !e classified in terms of store retailers$ nonDstore retailing$ and retail organi,ations. 9tore retailers include many types$ such as specialty stores$ department stores$ supermarkets$ convenience stores$ superstores$ com!ination stores$ hypermarkets$ discount stores$ warehouse stores$ and catalog showrooms. hese store forms have had different longevities and are at different stages of the retail life cycle. 7epending on the wheelDofDretailing$ some will go out of e-istence !ecause they cannot compete on a /uality$ service$ or price !asis. 4onDstore retailing is growing more rapidly than store retailing. It includes direct selling FdoorDtoDdoor$ party sellingG$ direct marketing$ automatic vending$ and !uying services. Much of retailing is in the hands of large retail organi,ations such as corporate chains$ voluntary chain and retailer cooperatives$ consumer cooperatives$ franchise organi,ations$ and merchandising conglomerates. More retail chains are now sponsoring diversified retailing lines and forms instead of sticking to one form such as the department store. )etailers$ like manufacturers$ must prepare marketing plans that include decisions on target markets$ product assortment and services$ store atmosphere$ pricing$ promotion$ 'nd place. )etailers are showing strong signs of improving their professional management and their productivity$ in the face of such trends as shortening retail life cycles$ new retail forms$ increasing intertype competition$ and polarity of retailing$ new retail technologies$ and many others. ;holesaling includes all the activities involved in selling goods or services to those who are !uying for the purpose of resale or for !usiness use. ;holesalers help manufacturers deliver their products efficiently to the many retailers and industrial users across the

nation. ;holesalers perform many functions$ including selling and promoting$ !uying and assortmentD!uilding$ !ulkD!reaking$ warehousing$ transporting$ financing$ risk !earing$ supplying market information$ and providing management services and counseling. ;holesalers fall into four groups. Merchant wholesalers take possession of the goods and include fullDservice wholesalers Fwholesale merchants$ industrial distri!utorsG and limitedDservice wholesalers FcashDandD carry wholesalers$ truck wholesalers$ drop shippers$ rack +o!!ers$ producers: cooperatives$ and mailDorder wholesalersG. 'gents and !rokers do not take possession of the goods !ut are paid a commission for facilitating !uying and selling. Manufacturers: and retailers: !ranches and offices are wholesaling operations conducted !y nonDwholesalers to !ypass the wholesalers. Miscellaneous wholesalers include agricultural assem!lers$ petroleum !ulk plants and terminals$ and auction companies. ;holesalers$ too$ must make decisions on their target market$ product assortment and services$ pricing$ promotion$ and place. ;holesalers who fail to carry ade/uate assortments and inventory and provide satisfactory service are likely to !e !ypassed !y manufacturers. 2rogressive wholesalers$ on the other hand$ are adapting marketing concepts and streamlining their costs of doing !usiness.

8U))E4 98E4')I< India rank first in terms of emerging market potential in retail sector. 8urrent retail market is U9 A ?0> !illion. Growth rate of retail sector in India is HD01C per annum. 4ear a!out 0? million retail outlets are spread across India. F7I in retail sector increases from U9 A B.0 !illion in ?11B to over U9 AI.@ !illion in ?11=.

J2E9 <F )E 'IKE)9

)etailers are !roadly classified into B categories Food )etailers. General Merchandise )etailers.

9ervice )etailers.

OTA R S R*I- S PRO*ID D /Y R TAI7 RS )etail not only provides products to the customer !ut also gives different types of services like6 'irlines . travel agents &anks Health clu!s Hotel . )estaurants Movie theatres

T -ANO7O"I S US D IN R TAI7IN" S -TOR InB+tore te%hnolo'ie+D Interactive kiosks 3irtual display case )adio Fre/uency identification tags 9elfDscanning . selfDcheckout system &ody scanning

Online te%hnolo'#D <nline display of products <nline shopping

-AA77 N" S Kargely ur!an phenomenon$ pace of growth is still slow. 4ot !eing recogni,ed as an industry in India so availa!ility of finance is low to new market players. High cost of real estate. High stamp duties. Kack of infrastructure. Multiple . comple- ta-ation system. 2rotest against retail sector.

FUTUR STRAT "Y It is pro+ected that up to ?101 retail sector will !e worth around U9 A B11 !illion. F7I is going to increase rapidly$ up to ?101 retail sector will !ecome !iggest industry in India. )etail sector is e-pected to create ? million +o!s up to ?101. 'ccording to Indian )etail )eport top 01 players in modern retail trade are going to invest U9 A 0HD?1 !illion in ne-t five years.

Se%tor Detail+
In India$ the most of the retail sector is unorgani,ed. In India$ the retail !usiness contri!utes around .8 per%ent of "DP. <f this$ the organi,ed retail sector accounts only for a!out $ per%ent +hare$ and the e-pected annual 'rowth rate i+ $C per annum and remaining share is contri!uted !y the unorgani,ed sector. he main challenge facing the

organi,ed sector is the competition from unorgani,ed sector. Unorgani,ed retailing has !een there in India for centuries$ theses are named as momDpop stores. he main advantage in unorgani,ed retailing is consumer familiarity that runs from generation to generation. It is a low cost structure$ they are mostly operated !y owners$ has very low real estate and la!or costs and has low ta-es to pay. 'nd it also 'i;e+ ,C mplo#ment to the %ountr# annuall#. In late 0==1:s the retail sector has witnessed a level of transformation. )etailing is !eing perceived as a !eginner and as an attractive commercial !usiness for organi,ed !usiness i.e. the pure retailer is starting to emerge now. <rgani,ed retail !usiness in India is very small !ut has tremendous scope. he total in ?11> stood at A??> !illion$ accounting for a!out 01C of G72. In this total market$ the organi,ed retail accounts for only AH !illion of total revenue. 'ccording to ' Kearney$ the organi,ed retailing is e-pected to !e more than A?B !illion revenue !y ?101. In organi,ed retailing will grow faster than unorgani,ed sector and the growth speed will !e responsi!le for its high market share$ which is e-pected to !e A 0I !illion !y ?101D00. he organi,ed sector is e-pected to grow faster than G72 growth in ne-t few years driven !y favora!le demographic patterns$ changing lifestyles$ and strong income growth. his organi,ed retail sector mi- includes supermarkets$ hypermarkets discounted stores and specialty stores$ departmental stores. For e-ample$ 9pencer network has @= stores$ which includes seven 9pencer hypermarkets$ three 9pencer super markets and E= 9pencer 7aily#s. 4ow the company is planning to open ?1 stores in 01 cities in si- months. he top 01 retailers account only for ?C of total market$ today modern retailing is e-pected to enter a !oom phase$ which has ma+or players and these players might capture 01C of total market$ within ne-t five years. he retail sales in India for future are shown !elow Fdata from ?11>D?11H is !ased on estimatesG

The trend in the Indu+tr#

0. Kow share of organi,ed retailing ?. Falling real estate prices

B. Increase in disposa!le income and customer aspiration Increase in e-penditure for lu-ury items F8H') G

'nother credi!le factor in the prospects of the retail sector in India is the increase in the young working population. In India$ hefty pay packets$ nuclear families in ur!an areas$ along with increasing workingDwomen population and emerging opportunities in the services sector. hese key factors have !een the growth drivers of the organi,ed retail sector in India which now !oast of retailing almost all the preferences of life D 'pparel . 'ccessories$ 'ppliances$ Electronics$ 8osmetics and 2roducts$ oiletries$ Home . <ffice ravel and Keisure and many more. ;ith this the retail sector in India is

witnessing re+uvenation as traditional markets make way for new formats such as departmental stores$ hypermarkets$ supermarkets and specialty stores.

9i+tin' %ompetition
)eliance fresh. 'ditya &irla group. 9hopper#s 9hoppe.

 9u!hiksha. &ig !a,aar. Mark and 9pencer#s. he untapped scope of retailing has attracted superstores like ;alDMart into India$ leaving !ehind the kiranas that served us for years. 9uch companies are !asically I !ased. he other important participants in the Indian )etail sector are &ata$ &ig &a,aar$ 2antaloons$ 'rchies$ 8afe 8offee 7ay$ landmark$ Khadims$ 8rossword$ to name a few.

;olution of Indian Retail Indu+tr#

Indian )etail Industry is standing at its point of infle-ion$ waiting for the !oom to take place. he inception of the retail indu+tr# dates !ack to times where retail stores were found in the village fairs$ Mela#s or in the weekly markets. hese stores were highly unorgani,ed. he maturity of the retail sector took place with the esta!lishment of retail stores in the locality for convenience. ;ith the government intervention the retail industry in India took a new shape. <utlets for 2u!lic 7istri!ution 9ystem$ 8ooperative stores and Khadi stores were set up. hese retail 9tores demanded low investments for its esta!lishment. International &rand <utlets$ Hyper or 9uper markets$ shopping malls and departmental stores

Retailin' in IndiaD a fore%a+t

Future of organi,ed retail in India looks !right. 'ccording to recent researches it is pro+ected to grow at a rate of a!out BIC in ?11I and at a rate of E?C in ?11H. It will capture a share of 01C of the total retailing !y the end of ?101.

INDIAD A Aot Spot

India retail industry is the largest industry in India$ with an employment of around HC and contri!uting to over 01C of the country:s G72. )etail industry in India is e-pected

to rise ?>C yearly !eing driven !y strong income growth$ changing lifestyles$ and favora!le demographic patterns.

It is e-pected that !y ?10@ modern retail indu+tr# in India will !e worth U9A 0I>D ?11 !illion. India retail industry is one of the fastest growing industries with revenue e-pected in ?11I to amount U9A B?1 !illion and is increasing at a rate of >C yearly. ' further increase of IDHC is e-pected in the industry of retail in India !y growth in consumerism in ur!an areas$ rising incomes$ and a steep rise in rural consumption. It has further !een predicted that the retailing industry in India will amount to U9A ?0.> !illion !y ?101 from the current si,e of U9A I.> !illion. 9hopping in India has witnessed a revolution with the change in the consumer !uying !ehavior and the whole format of shopping also altering. Industry of retail in India which have !ecome modern can !e seen from the fact that there are multiD stored malls$ huge shopping centers$ and sprawling comple-es which offer food$ shopping$ and entertainment all under the same roof. India retail industry is e-panding itself most aggressivelyL as a result a great demand for real estate is !eing created. Indian retailer+ preferred means of e-pansion is to e-pand to other regions and to increase the num!er of their outlets in a city. It is e-pected that !y ?101$ India may have @11 new shopping centers. In the Indian retailing industry$ food is the most dominating sector and is growing at a rate of =C annually. he !randed food industry is trying to enter the India retail industry and convert Indian consumers to !randed food. 9ince at present @1C of the Indian grocery !asket consists of nonD !randed items. 's the contemporary retail sector in India is reflected in sprawling shopping centers$ multiple-D malls and huge comple-es offer shopping$ entertainment and food all under one roof$ the concept of shopping has altered in terms of format and consumer !uying !ehavior$ ushering in a revolution in shopping in India. his has also contri!uted to

largeDscale investments in the real estate sector with ma+or national and glo!al players investing in developing the infrastructure and construction of the retailing !usiness.

"rowth Dri;er+
"rowth dri;er+ in India for retail +e%tor

)ising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. Ki!erali,ation of the Indian economy Increase in spending 2er capital Income. 'dvent of dual income families also helps in the growth of retail sector. 9hift in consumer demand to foreign !rands like Mc7onalds$ 9ony$ 2anasonic$ etc. 8onsumer preference for shopping in new environs he Internet revolution is making the Indian consumer more accessi!le to the growing

influences of domestic and foreign retail chains. )each of satellite .3.

8hannels are helping in creating awareness a!out glo!al products for local markets. '!out EIC of India:s population is under the age of ?1L and this will increase to >>C !y ?10>. his young population$ which is technologyDsavvy$ watch more than >1 3 satellite channels$ and display the highest propensity to spend$ will immensely contri!ute to the growth of the retail sector in the country.

'vaila!ility of /uality real estate and mall management practices Foreign companies: attraction to India is the !illionDplus population.

mplo#ment opportunitie+ in retail +e%tor in India

India:s retail industry is the second largest sector$ after agriculture$ which provides employment. 'ccording to 'ssociated 8ham!ers of 8ommerce and Industry of India F'99<8H'MG$ the retail sector will create >1$111 +o!s in ne-t few years. )etail companies are starting retail management courses in partnership with management institutes$ roping in talent from other sectors and developing comprehensive career growth and loyalty plans for e-isting employees. op players like 2antaloon )etail India Kimited$ rent$ 9hopper:s 9top$ )2G Group and e!ony are virtually on their toes. 8onsider the plans of largest player$ he 2antaloon )etail India Ktd$ the company has developed a comprehensive strategy$ where in it e-pects that in ?years$ it will not recruit any new managers from outside. M he estimated need is 0 lakh of employees till ?100M$ said Mr. 9an+oy 5og$ H) Head at 2antaloon )etail India Ktd. 2antaloon has the concept of partnership with educational Institute to run retail courses across the entire chain. rent has also started inDhouse learning programmers and now goes to under graduate colleges to recruit students. 9ince$ the +o! market is hugely receptive to this with more and more !usiness schools focusing on the sector and large retailers setting up retail academics. -hallen'e+ of Retailin' in India In India the )etailing industry has a long way to go$ and to !ecome a truly flourishing industry$ retailing needs to cross the following hurdles6 N he first challenge facing the organi,ed retail sector is the competition from

unorgani,ed sector. N In retail sector$ 'utomatic approval is not allowed for foreign investment. N a-ation$ which favors small retail !usinesses. N 7eveloped supply chain and integrated I N Kack of trained work force. management is a!sent in retail sector.

Kow skill level for retailing management. Intrinsic comple-ity of retailingD rapid price changes$ threat of product o!solescence and low margins.

N <rgani,ed retail sector has to pay huge ta-es$ which is negligi!le for small retail !usiness. Many agencies have estimated differently a!out the si,e of organi,ed retail market in ?101. he one thing that is common amongst these estimates is that Indian organi,ed retail market will !e very !ig in ?101. he status of the retail industry will depend mostly on e-ternal factors like Government regulations and policies and real estate prices$ !esides the activities of retailers and demands of the customers also show impact on retail industry.

-ompetition in retail
India )etail&i, attempts to capture e-citement of )etail &usiness in India !y aggregating the !est in news$ views$ research$ analysis$ trends$ technology$ and competition dent+ retail +e%tor 'rowth. he performance of the retail sector in the last /uarter of financial year ?11HD1= has !een a gloomy one. 4ot only has the /uarterDonD/uarter growth declined !y I11 !asis point$ on yearDonDyear FJoJG !asis$ sales growth fell drastically from @I.HC to E=.0C. Including the recently listed Koutons and 3ishal )etail$ all !ig retailers continue to !e on an aggressive e-pansion mode. his kind of competition is having a negative impact on margins of retailers$ as the target audience for all of them$ more or less$ remains the same. he slowdown has triggered a volume game in the industry. 9trategies like promotional campaigns$ free!ies$ promoting private la!els and online discounts are +ust some of the avenues that retailers are looking at to lure customers. 'ccording to analysts$ this is a kneeD+erk reaction !y the industry to fight the inflationDinduced dent in the purchasing power of customers. 's they say$ retail is a num!er game$ so$ !ig retailers are trying to push volumes. For some$ it comes at the cost of profit. Meanwhile$ in contrast to JoJ

sales growth of E=C for the sector$ the interest cost has registered a whopping =@C growth. margins. he cost factor too is adding to the woes. For instance$ during the /uarter$ 9hoppers 9top opened its new stores in various formats. 2rovogue and 2antaloon followed soon. he companies are increasing their geographical presence in the wake of increasing competition. Kaunch of new formats continues to catch the attention of these retailers. In fact$ a couple of these new formats are already generating profit at the operating level$ thus showing a positive sign towards growth. Kike for 9hoppers 9top$ the average transaction si,e increased !y a!out IC for the current /uarter over the same /uarter in the previous year. 2layers like 2rovogue and 2antaloons too have witnessed a similar upward movement. 'lso$ though growth in total e-penses as a whole has almost !een e/uivalent to the growth in sales at a!out EIC$ some individual cost items like staff costs$ selling and administration costs are under control. <n a JoJ !asis$ staff cost has grown at ?@C against EEC in the corresponding /uarter of the previous year. 4onetheless$ raw material cost continues to remain high D it grew !y @@C in the last /uarter and now is e/uivalent to IEC of the industry:s aggregate net sales. his is the reason why operating margins have reduced to E.HC of the revenue sale compared with >.IC during the corresponding /uarter of the previous year. 'mong individual retailers$ 2antaloon )etail continues to outgrow the industry D it recorded >IC a JoJ growth in net sales during March ?11H /uarter. 'lthough it is lower compared with the @BC growth recorded during the 7ecem!er /uarter$ momentum continues to favour the company. 4ew stores drove the growth in valueDforD money format D strategies such as K&:s Fair 2rice and online shopping are picking up. heir home store division has also !een doing well. 4e-t on growth charts is 2rovogue$ which grew E1C in the last /uarter$ similar to the previous /uarter. hough growing at a lesser B=C$ depreciation cost has also !een impacting

In short$ setting up of new stores has resulted in higher working capital funding$ which has raised the industry:s interest outgo. For 2antaloon$ interest cost has almost dou!led during the current /uarter D as a proportion of sales$ it has increased from ?.IC to B.?C on a JoJ !asis. 2rovogue seems to !e an e-ception in this as it recorded the highest increase of 011 !asis points in interest cost for March ?11H. <verall$ the profita!ility margin has seen a sharp decline. <nly 9hoppers 9top has registered some profit compared with its performance in the corresponding /uarter of the previous year. he company:s net profit margin now stands at 1.IC of net sales as compared to D0C in March ?11I /uarter. It can !e concluded that margins of retail companies seem to have !een hit !y costs related to their am!itious e-pansion programmer. E-pansion plans for some of them are running !ehind schedule. It has led to higher interest cost$ yet retail companies are trying hard to cut costs !y keeping inventory and carrying costs under control. 5uly H$ ?11H 9ource6 Economic imes

/i' retailer+ at lo''erhead+ with 5N-+ o;er brand+

' serious conflict is !rewing !etween Indian retailers and multinationals over imports of glo!al !rands. o stay afloat in the dogDeatDdog world of retail$ local retailers have reached arrangements with overseas players to !ring in some international !rands$ rattling many M48s who manufacture or market these products locally. In some cases$ these !rands have not yet !een introduced in India. 9everal ma+or M48s with a long presence in India are invoking the Intellectual 2roperty )ights Fimported goodsG Enforcement )ules ?11I to stop retailers from importing foreign !rands. Hindustan Unilever$ K#<real$ Kancome 2erfumes$ <akley Inc$ 4ivea and Mico have already registered several !rands with the 8ustoms department. 9ources said other M48s are e-pected to follow suit.

Market circles perceive this as a move to prevent Indian retailers from getting first access to these !rands. 9ome of the retailers are de!ating plans to legally contest the move$ since they possess a free sale certificate from the source of import. )etailers like &ig &a,aar . Food &a,aar$ )eliance )etail$ 9pencer#s and 9ankalp )etail FMy7ollar9toreG$ among others$ have !egun importing si,ea!le consignments of leading consumer !rands and their variants for !etter fill rates$ product variety and higher margins. However$ the multinationals are not amused$ and claim that it leads to loss of !usiness opportunity$ unfair competition and product canni!ali,ation. he fundamental issue here$ according to analysts$ is that the Indian arms of the leading FM8G companies would like to control the way their !rands are marketed and sold. hey would also like to determine when new products and variants of e-isting products should !e introduced in India. ' key reason for retailers to step up imports is !ottom lines. 2rofit margins on imported products are around ?1C more than local !rands$ where producers and retailers are at loggerheads over sharing margins. %;e are concerned over issues like protecting the properties of our !rands$ including /uality and consumer perception. 9uch unplanned imports create !rand confusion in the minds of consumers$ since the properties of an imported !rand are completely different from the domestic ones$ which are locali,ed to suit the specific region#s re/uirements. 'n unpleasant e-perience may work against our !rand$* said a highDranking official in a leading multinational$ which makes personal care products. )etailers claim they are creating "demand in advance# for the multinationals$ which would otherwise have to invest heavily in marketing and ad spends to promote the !rands. 'nalysts say the developments are the natural effects of a glo!alised market that India is moving towards$ which upsets the conventional distri!ution and trade practices. 5uly I$ ?11H 9ource6 Economic imes

&ig players D plans and investments

State of -ompetition in the >hole+ale and Retail Se%tor

he study assesses the state of competition in the 2hilippine wholesale and retail sector$ focusing on the distri!ution of speciali,ed goods and pharmaceutical products. It uses the traditional tools of analysis like concentration ratios and priceDcost margins in determining the competitive state of the sector. he study also analy,es the other dimensions in retail competition like price$ geographical location$ and retail product and retail service. Industry data from the 4ational 9tatistics <ffice were used in the analysis$ aided !y a smallDscale survey conducted in the Metro Manila area. he department store and grocery su! sector appears to operate in a competitive environment despite the presence of two !ig dominating firms in the market. 4o price or /uantity leaderDfollower !ehavior was o!served$ as validated !y the tools used in the analysis. <n the other hand$ one firm$ whose strategic advantages include economies of scope and space$ retail image and consumer loyalty$ dominates the distri!ution of pharmaceutical products. 2otential market entrants face these forms of challengesDD factors that are not regarded as antiDcompetitive and are welfare enhancing to the general pu!lic. he need for competition policy is recommended to guard against possi!le merger of the giant firms in the department store and grocery su! sector. 'ny possi!le collusion !etween the !ig firms could result to a monopolistic outcome. he study o!serves that the apparent high price of pharmaceutical products is mainly attri!uted to the manufacturing process$ and not at the distri!ution of these goods. Hence$ it is recommended that a study analy,ing the state of competitiveness of manufacturing pharmaceutical products !e conducted. Thin' el+e that i+ timel#@ authenti% Electronics retail sector could get new competition

T#pe+ of Retailin'
here are several types we can see in )etailing. hey are like6
Spe%ialt# StoreD 4arrow product line with deep assortment$ vi, apparel stores$ !ook stores etc. ' clothing store would !e a single line store$ men:s clothing store would !e limited line store .men:s customDshirt store would !e a super specialty store. E-ample6 he limited$ he &ody 9hop. Departmental StoreD 9everal products linesDtypically clothing$ household goods$ home furnishingsD with each line operated as a separate department managed !y specialist !uyers or merchandisers. E-ample6 9ears$ &loomingdale:s. Supermar&et+D )elatively large$ lowDcost$ lowDmargin$ high volume$ selfDservice operation designed to serve total needs for food$ laundry . household maintenance products. E-ample6 Kroger$ 9afeway. -on;enien%e Store+D )elatively small store located near residential area$ open long hours$ seven days a week and carrying a limited line of highDturnover convenience products at slightly higher prices. E-ample6 IDEleven$ 8ircle K. Di+%ount StoreD 9tandard merchandise sold at lower prices with lower margins and higher volumes. rue discount stores regularly sell merchandise at lower prices and offer mostly national !rands. E-ample6 ;alDMart$ Kmart.

OffBpri%e retailerD Merchandise !ought at less than regular wholesale prices . sold at less than retailL oftenDleftover goods$ overruns and irregulars o!tained at reduced prices from manufacturers or other retailers. Factory outlets are owned and operated !y manufacturers and normally carry the manufacturer:s surplus$ discontinued or irregular goods. E-ample6 Mikasa FdinnerwareG$ 7e-ter FshoesG Independent offDprice retailers are owned . run !y entrepreneurs or !y divisions of larger retail corporations. E-ample6 .5.Ma--$ Filene:s &asement. Super+toreD 'verages B>$111 s/uare feet of selling space traditionally aimed at meeting consumers: total needs for routinely purchased food and nonDfood items. Usually offer services such as laundry$ dry cleaning$ shoe repair$ check cashing . !ill paying. ' new group called Mcategory killersM carries a deep assortment in a particular category . a knowledgea!le staff. E-ample6 &orders !ooks . Music$ IKE'. 8om!ination stores are a diversification of the supermarket store into the growing drugD andDprescription field. 8om!ination food . drug stores average >>$111 s/uare feet of selling space. E-ample6 5ewel . <sco stores. Hypermarkets range !etween H1$111 and ??1$111 s/uare feet and com!ine supermarket$ discount . warehouse retailing principles. 2roduct assortment goes !eyond routinely purchased goods . includes furniture$ large . small appliances$ clothing items and

many other items. &ulk display . minimum handling !y store personnel with discounts offered to customers who are willing to carry heavy appliances and furniture out of the store. Hypermarkets originated in France. E-ample6 8arrefour and 8asino FFranceG$ 2yrca$ 8ontinente and 'lcampo F9painG.

mer'in' trend+ in Indian or'ani2ed retail +e%tor

/PO indu+tr# in India &2< F&usiness 2rocess outsourcingG is one of the fastest growing segments of the Information echnology Ena!led 9ervices FI E9G industry in India. &usiness 2rocess <utsourcing refers to the delegation of one or more I Dintensive !usiness process to an e-ternal provider that in turn owns administers and manages the selected process !ased on defined and measura!le performance criteria. he Indian &2< industry is constantly growing and a lot of fortune >11 companies are outsourcing services to India. here are several reasons for India#s emergence as one of leading outsourcing destinations. India is very rich in educated and talented human resource. India is one of the pioneers in software development. India has an e-cellent technical facilities and infrastructure for setting up call centers. ime ,one difference !etween India and 'merica has also worked to the advantage of Indian &2< industry. India has an HD0? hour time ,one difference with respect to the U9 and other developed markets. Most of the Indian cell centers servicing 'merican customers have timings !etween >6B1 pm to =6B1 am this time ,one difference allows Indian companies &2<#s to service 'merican clients !y working in the nights. last !ut not the least India has huge pool of English speaking workforce that provides e-cellent voice !ased services at e-tremely competitive costs resulting in huge savings for companies. 9ome of the leading &2< companies in India are GE capital. 8onverges ;ipro 9pectra mind. 7ell I8I8I <ne 9ource

Mphasi9.

Inflation in India
Inflation in India is at an accepta!le level and remains much lower than in many other developing countries. &ut off late prices of essential commodities such as food grain$ edi!le oil$ vegeta!les etc have risen sharply and in the process driving up the inflation rate. Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. 's inflation rises the value of currency goes down. he current rise in inflation has its roots in supplyDside factors. here was shortfall in domestic production visDODvis domestic demand and hardening of international pieces$ prices of primary commodities$ mainly food items. ;heat$ pulses$ edi!le oils$ fruits and vegeta!les$ and condiments and spices have !een the ma+or contri!utors to the higher inflation rate of primary articles. he inflation was also accompanied !y !uoyant growth of money and credit. ;hile G72 growth ,oomed to =.1 per cent per annum$ the !oard money FMBG grew !y more than ?1 per cent. Inflation is calculated on the !ases of ;holesale 2rice Inde- F;2IG while in other countries it is calculated on 8onsumer 2rice Inde- F82IG. he emerging trends in the Indian organi,ed retail sector would help the economic growth in India. here is a fantastic rise in the Indian organi,ed retail sector in a very short period of time !etween ?110 and ?11@. Eventually$ out of the shadows of the unorgani,ed retail sector$ India has a chance of tremendous economic growth$ !oth in India and a!road. he emerging trends in the Indian organi,ed retail sector are also adding up to the development of the Indian organi,ed retail sector. he rela-ation !y the government on

regulatory controls on foreign direct investments has added to the process of the growth of the Indian organi,ed retail sector. he infrastructure of the retail sector will evolve radically in the recent future. he

emergences of shopping malls are increasing at a steady pace in the metros and there are further plans of e-pansion which would lead to 0>1 new ones coming up in India !y ?11H. 's the count of super markets is going up much faster than rate of growth in retail sector$ it is taking the lion#s share in food trade. he growth of the Indian organi,ed retail sector is anticipated to !e heavier than the growth of the gross domestic product. 'lterations in people:s lifestyle$ growth in income levels$ and encouraging conventions of demography are proving favora!le for the new emerging trends in the Indian organi,ed retail sector. he success of this retail sector would also lie in the degree of penetration into the lower income strata to tap the possi!le customers in the lowest levels of society. he demands of the !uyers would also !e enhanced !y more access to credit facilities. ;ith the arrival of the ransnational 8ompanies F 48G$ the Indian retail sector will 48:9 get in they undergo a transformation. 't present the Foreign 7irect Investments FF7IG is not encouraged in the Indian organi,ed retail sector !ut once the sector in India. he trends to follow in the future6

inevita!ly try to oust their Indian counterparts. his would !e challenging to the retail

he Indian <rgani,ed retail sector will grow up to 01C of total retailing !y ?101. 4o one single format can !e assumed$ as there is a huge difference in cultures regionally. he most encouraging format now would !e the hyper marts. he hyper mart format would !e further encouraged with the entry of the 48s

-urrent S%enario
' glimpse of the International )etail <ne of the world:s largest industries e-ceeding USE 6 trillion EI glo!al fortune companies . ?> of 'sia:s top ?11 companies are retailers 7ominated !y developed countries U9$ EU . 5apan constitute ,8C of world retail +ale+. &iggest player in India is 2antaloon )etail India Kimited.

Per%enta'e of Or'ani2ed Retail

U9' D H>C aiwan D H0C Malaysia D >>C hailand D E1C &ra,il D B@C Indonesia D B1C 2oland D ?1C 8hina D ?1C

India B 0C

=e# pla#er+
he e-isting players like &ig &a,aar$ More )etail outlay$ 3ishal Mega Mart$ 9hoppers: 9top$ 2iramyd are e-panding to smaller towns and cities. Many other !usiness houses are planning to enter the retail sector either on their own or through

partnerships. 4ew entrants like )eliance )etail Ktd and ;alDMart are going to enter the market soon. Even rural areas will provide a huge opportunity to !e e-plored.

/OARD OF DIR -TOR

5r. =i+hore /i#ani@ 5r. "opi&i+han /i#ani@ 5r. Ra&e+h /i#ani@ 5r+. *eda Pra&a+h Ar#a@ 5r. Shaile+h Aaribha&ti@ 5r. S Dore+wam#@ Dr. D O =o+h#@ 5r+. An?u Poddar@
5r+. /ala De+hpande@

5ana'in' Dire%tor >hole time Dire%tor >hole time Dire%tor Dire%tor Independent Dire%tor Independent Dire%tor Independent Dire%tor Independent Dire%tor
Independent Dire%tor

5r. Anil Aari+h@

Independent Dire%tor

-ompan# Profile
2antaloon )etail FIndiaG Kimited$ is India:s leading retail company with presence across multiple lines of !usinesses. he company owns and manages multiple retail formats that cater to a wide crossDsection of the Indian society and is a!le to capture almost the entire consumption !asket of the Indian consumer. Head/uartered in Mum!ai F&om!ayG$ the company operates through > million s/uare feet of retail space$ has over BB0 stores across E1 cities in India and employs over 0I$111 people. turnover of )est ?$10= crore for FJ ?11ID1H It owns and operates multiple retail formats including 2antaloons$ &ig &a,aar$ Food &a,aar$ 8entral$ ED(one$ Fashion 9tation$ 7epot and many others. 2antaloon )etail forayed into modern retail in 0==I with the launching of fashion retail chain$ 2antaloons in Kolkata. In ?110$ it launched &ig &a,aar$ a hypermarket chain that com!ines the look and feel of Indian !a,aars$ with aspects of modern retail$ like choice$ convenience and hygiene. Food &a,aar$ food and grocery chain and launch 8entral$ a first of its kind seamless mall located in the heart of ma+or Indian cities$ followed this. 9ome of its other formats include$ 8ollection i Fhome improvement productsG$ ED(one Fconsumer electronicsG$ 7epot F!ooks$ music$ gifts and stationaryG$ 'll Ffashion apparel for plusDsi,e individualsG$ 9hoe Factory FfootwearG and &lue 9ky Ffashion accessoriesG. It has recently launched its retailing venture$ future!a,aar.com. he group:s su!sidiary companies include$ Home 9olutions )etail India Ktd$ 2antaloon Industries Ktd$ Gala-y Entertainment and Indus Keague 8lothing. he group also has +oint venture companies with a num!er of partners including French retailer Etam group$ Kee 8ooper$ Manipal Healthcare$ 5aywalker#s$ Gini . 5ony and Ki!erty 9hoes. 2lanet )etail$ a group company owns the franchisee of international !rands like Marks . 9pencer$ 7e!enhams$ 4e-t and Guess in India. he company registered a

2antaloon )etail is listed on &9E and 49E with a turnover of )s ?$10H crores for financial year ended ?11ID1H. 2antaloon )etail was selected as the &est of &est )etailers in 'sia !y )etail 'siaD2acific op >11 maga,ine in ?11@.

Future "roup
2antaloon )etail is the flagship enterprise of the Future Group$ which is positioned to cater to the entire Indian consumption space. he Future Group operates through siverticals6 Future )etail Fencompassing all retail !usinessesG$ Future 8apital Ffinancial products and servicesG$ Future &rands Fmanagement of all !rands owned or managed !y group companiesG$ Future 9pace Fmanagement of retail real estateG$ Future Kogistics Fmanagement of supply chain and distri!utionG and Future Media Fdevelopment and management of retail mediaG. Future 8apital Holdings$ the group:s financial arm$ focuses on asset management and consumer finance. It manages two real estate investment funds FHori,on and Kshiti+G and consumerDrelated private e/uity fund$ Indecision. It also plans to get into insurance$ consumer credit and other consumerDrelated financial products and services in the near future. Future Group:s vision is to$ M7eliver Everything$ Everywhere$ Every time to Every Indian 8onsumer in the most profita!le manner.M <ne of the core values at Future Group is$ :Indian#s: and its corporate credo is D )ewrite rules$ )etain values.

Future "roup 5anife+to

%Future* P the word which signifies optimism$ growth$ achievement$ strength$ !eauty$ rewards and perfection. Future encourages us to e-plore areas yet une-plored$ write rules yet unwrittenL create new opportunities and new successes. o strive for a glorious future !rings to us our strength$ our a!ility to learn$ unlearn and reDlearn$ our a!ility to evolve. ;e$ in Future Group$ will not wait for the Future to unfold itself !ut %reate future +%enario+ in the %on+umer +pa%e and facilitate consumption !ecause consumption is

development. here!y$ we will effect socioDeconomic development for our customers$ employees$ shareholders$ associates and partners. <ur customers will not +ust get what they need$ !ut also get them where@ how and when they need. ;e will not +ust post satisfactory results$ we will write +u%%e++ +torie+. ;e will not +ust operate efficiently in the Indian economy$ we will e;ol;e it. ;e will not +ust spot trendsL we will +et trend+ !y marrying our understanding of the Indian consumer to their needs of tomorrow. It is this understanding that has helped us succeed. 'nd it is this that will help us succeed in the Future. ;e shall keep relearning. 'nd in this process$ do +ust one thing. /i' /a2aar is a chain of shopping malls in India currently with ?= outlets$ owned !y the 2antaloon Group. It works on same the economy model as ;alDMart and has had considera!le success in many Indian cities and small towns. he idea was pioneered !y entrepreneur =i+hore /i#ani$ the head of 2antaloon )etail India Ktd. &ig &a,aar stores in Metros have a gaming area and kids play area for entertainment. 8ities where stores are located are$ 'gra$ 'hmada!ad$ 'llaha!ad$ 'm!ala$ 'sansol$ &angalore$ &hu!aneswar$ 8hennai$ 8oim!atore$2alakkad$ Kolkata$ 7elhi$ 7urgapur$ Gha,ia!ad$ Gurgaon$Hydera!ad$ Indore$ Kucknow$Kanpur$ Mangalore$ Mum!ai$ 4agpur$ 4asik$ 2anipat$ 2une$ )a+kot$ 9urat$ hane$ hiruvananthapuram$ 3ishakhapatnam. &ig &a,aar is not +ust another hypermarket. It caters to every need of customer#s family. ;here &ig &a,aar scores over other stores is its value for money proposition for the Indian customers.

't &ig &a,aar$ customer will definitely get the !est products at the !est prices DD that#s what &ig &a,aar guarantee. ;ith the ever increasing array of private la!els$ it has opened the doors into the world of fashion and general merchandise including home furnishings$ utensils$ crockery$ cutlery$ sports goods and much more at prices that will surprise customer. 'nd this is +ust the !eginning. &ig &a,aar plans to add much more to complete customers shopping e-perience. /i' /a2aar is a chain of shopping malls in India currently with ?= outlets$ owned !y the 2antaloon Group. It works on it the economy model as ;alDMart and has had considera!le success in many Indian cities and small towns. he idea was pioneered !y entrepreneur Kishore &iyani$ the head of 2antaloon )etail India Ktd. &ig &a,aar stores in Metros have a gaming area and kids play area for entertainment. 8ities where stores are located 'gra 'hmeda!ad 'llaha!ad 'm!ala 'sansol &angalore &hu!aneswar 8hennai 8oim!atore 2alakkad Kolkata 7elhi

7urgapur Gha,ia!ad Gurgaon Hydera!ad Indore Kucknow Kanpur Mangalore Mum!ai 4agpur 4asik 2anipat 2une )a+kot 9urat hane hiruvananthapuram 3ishakhapatnam &ig &a,aar is not +ust another hypermarket. It caters to every need of customer#s family. ;here &ig &a,aar scores over other stores is its value for money proposition for the Indian customers.

't &ig &a,aar$ customer will definitely get the !est products at the !est prices DD that#s what &ig &a,aar guarantee. ;ith the ever increasing array of private la!els$ it has opened the doors into the world of fashion and general merchandise including home furnishings$ utensils$ crockery$ cutlery$ sports goods and much more at prices that will surprise customer. 'nd this is +ust the !eginning. &ig &a,aar plans to add much more to complete customers shopping e-perience.

Store +tud#
/i' /a2aar A&+ha# %entre@ A&+ha# Par& "O=U7 ROAD@ AU/7IB$,8808 Phone NoD 8,0(B31(($$$

his store is of ? flour and divided into ? levels !ased on the nature of products. here are ?0 departments in this store

and 0?1 Human )esource employed. 's this store is !ig enough with ? levels and ?0 departments has long product range and product depth. <nes a customer get inside the store he will find all kinds of products

availa!le that may !e Food item$ 8osmetic$ Electronic$ Garments$ Furniture etc. &ecause of these features it has a very good reputation in that area and customers who are residing far away and in other areas they also visit the store.

7e;el .
Department+ with their Produ%t+

.F Depot6
General !ooks <ffice stationary 8hildren stationary Film 387#s . 737 5a?or /rand+ in thi+ department For 387#s . 737#s6

Moser !ear D9eries Jesh )a+ Films

'nand 'udio 5hankar 9arvotham

For Offi%e +tationar# 9tick 'psara Kores Fi!er 8astle 7epo e-poses 2ark 8ello BM Kangaroo &uilt MatriFor &ooks 2enguin )oopa &entam 8lassic

1F N/D GNew /u+ine++ De;elopmentF

his is the department$ which is introduced !ecause the space is availa!le in the store after making arrangement for other department and this department consists of the products$ which are not introduced and are not regular goods. ;rist ;atches Fashion 5ewelry 9unglasses

'uto accessories 5a?or /rand+ in thi+ department For >ri+t >at%he+ Escort Kuma-

0F "old /a2aar
4avaras Gold 5ewelry his is the separate unit not related to &ig &a,aar they share profits on percentage !asis

3F 5obile /a2aar
'll kinds of Handsets ranging from )s 0111 to ?>111 of different companies Mo!ile accessories 8oddles phones . land line phones

5a?or /rand+ in thi+ department 4okia 9ony Ericson Motorola 9amsung

&eetal 2acetel

$F Star Sitara
8osmetics Fragrances Her!als 2harmaceuticals 5a?or /rand+ in thi+ department For Fragrances MK7 distri!utors G ) fragrances &82K 4a!ed Intercraft Indo French For Her!als Kotus 3K88 9hehnaa, Hussain &iotech For 8osmetics 8olor &ar Kakme May &illine )evlon 9treets wear 3ega and roof

(F Shrin'ar
&angles 5ewelry sets &racelets Hair 'ccessories

&indies 8hains

)F 7adie+ Department
9arees 7ress materials Under garments 4ightwears ;estern wears 5a?or brand+ in thi+ department 9hila 9hristhi Kalakruthi M9IK

Hean+
&retni 75 . 8 )uff . uff Gelluse

A%%e++orie+
5ohnson and 5ohnson 2aris !eauty 3I2

,F 5en<+ Department
Formals F9hirts . 2antsG 8asuals F9hirts . pantsG 2arty wears 5eans D9hirts <thers 'ccessories FKungi 7hoti etcG Fa!rics F8ut piecesG 9uits . &la,ers Kevi#s 9ignature garments 5a?or brand+ in thi+ department

75 . 8 )uff . uff Kevis 4ight hood 2eter England )aymond#s

6F Furniture Department
7ining a!le &edroom 'ccessories Hall accessories F9ofa sets$ 8hairs$ 8omputer ta!le etcG Mattresses

.8F Footwear /a2aar

9ports 9hoes Formal 9hoes 8asual 9hoes Men#s 9andals Kadies 9andals Kadies 8asuals Kadies 8happle Kadies fancy 9leepers Kadies 9ports shoes

5a?or brand+ in thi+ department )ee!ok 4ike 2uma Koto

3an hussain Hallen solly 4ew !alance

..F Aome DI%or

Flower vase 'rtificial Flowers )eligious gifts 8andle stand Um!rellas 2hoto Frames 'ssorted color 9tones Frame 2aintings ;ater falls FartificialG &irthday items

.1F Aome line

!ed sheets$ 2illows $ !ed spreads owels$ Jellow dust )a,ai $ 8arpets$ 8ushion covers 8hair !ags

5a?or brand+ in thi+ department )iviera <riental <rchid Home collection Home e-pression 9ameera Home style

9weet dreams Modern

.0F To#+ Dept

9oft toys Educational toys &oard games$ 'ction figures 7olls 5a?or brand+ in thi+ department Fun school 3enus Mitashi 8reatives United 9hadilal . 9ons Flamingo

.3F =id+ department

/o#<+ +e%tion
D9hirts$ rousers$ +eans 8otton shirts$ 8argo$ 8od raw Ethic wears 8o ordinates

)ain cotes

"irl+ Se%tion
Ethic wears 8oD ordinates 8otton frocks ;estern wears 5a?or brand+ in thi+ department ara )um 2um collection 7isney 2ink 'nd &lue 2ower ranges 2romo

Infant+
5ha!las 3ests &i!s feedings &ed items &a!a suits Frocks

.$F le%troni% /a2aar

elevisions 9ound 9ystem )efrigerators ;ashing machines Microwave

)ice cookers 5uicers Irons$ Mi-ers . Grinders

5a?or /rand+ in thi+ department 9ony 3idiocon KG H8K I&M 8reative 2hilips 9amsung <nida ;hirlpool

.(F 7u''a'e
ravel !ags rolleys &ags6 9chools$ 8ollage Kadies purse 9uitcase 3I2 'merican ourist 'ristocrat 9afari Milestone

7e;el 1 Food /a2aar

.F /e;era'e+
9oft drinks Mineral water 5uices

Health drinks

1F -onfe%tionarie+
'll kinds of 8hocolates . 8onfectionaries

0F Fruit+ 4 *e'etable+ 3F Staple+

7al$ )ice$ 'tta$ )ava items <il#s$ Masala items 7ry fruits 9picy items )eady meals &reakfast cereals

$F Pro%e++ Dept
Health drinks )eady to eat 8orn flaks$ 8hips Instant mi-es 9oups$ &read items$ pickle 9preads 5a?or brand+ in thi+ department For /e;era'e+ Maa,a 9lice &isleri

8ocacola 2epsi humps up 'pply For %onfe%tionarie+ 7airy Milk 4estle 2arle For Staple+ 'shirwad 2ills!ury 7hara 9unflower

NonBfood Dept
@G Home care
2henyl$ 7etergents 7ish wash$ issue papers$ 9cratch 9hoe cases$ Fresh wrap$

)F Per+onal %are
9oaps$ toothpaste$ 9hampoo 7eodorants$ &ody spry

&a!y food$ alcum powder Men#s apparel 5a?or /rand+ in thi+ department

For Aome %are

Kysole HKK 4irma For 2ersonal care6 8olgate 2epsodent 2arachute Ku- International

,F Pla+ti%+@ Uten+il+@ -ro%&er# GPU-F

aF Pla+ti%+
&uckets 8asseroles 8ontainers &o-es Flasks &owls

5ugs . sippers &ottles . Mugs 5a?or brand+ in thi+ department Milton 7ream Kine 8ello 2oly set 8hetan

bF Uten+il+
2lates$ &owls$ Glasses 4onDstick 8ookware#s Kitchen tools iffin &o-es

%F -ro%&er#
8rockery cutlery a!le Materials Q 4apkins 8asseroles 7inner sets ;ine$ 5uice Glasses

Future Plan+ of /I" /AJAAR

)ecently they are interested to e-pand their retail !usiness in Mysore and along with that they are interested to esta!lish two retail outlets in Gul!arga 7istrict.

/i' /a2aar plan+ 088 +tore+ b# 18.8B..

?1 May$ ?11=$ 0I?? hrs I9 $ 2 I

N > D 7AID Kishore &iyaniDpromoted Future Group:s retail chain &ig &a,aar is planning to have B11 hypermarkets in the country !y ?101D00. he company is also mulling to increase its annual turnover to )s 0B$111 crore !y ?101D 00$ up from )s B$@11 crore last fiscal on the !ack of its e-pansion. M;e started with our first store in <cto!er ?110 and have now crossed the hundred mark with three stores opened today in 2une$ 8ut tack and 7elhi. <ur plan is to increase the num!er of our stores to B11 !y end of the ?101D00 fiscal$M &ig &a,aar 8hief E-ecutive <fficer )a+an Malhotra said. He said the company would have another B> odd stores !y end of its fiscal in 5une ?11= to take the total num!er to 0B>.

M;e are targeting a turnover of )s >$111 crore this year and have plans for reaching a figure of )s 0B$111 crore !y ?101D00 fiscal$M Malhotra said. He added that the company would !e looking at !oth the metros and ier I cities$ !esides ier II and smaller cities$ for the e-pansion. he &ig &a,aar hypermarkets had a footfall of 00 crore last fiscal and the company is aiming for an increase in the num!ers up to 0E crore this year. he si,e of its hypermarkets on average is B1$111 s/ ft to one lakh s/ ft. he company is also launching a special festive season :<ne in a Kifetime: offer across all its stores on <cto!er 0D>. he offer would run in all &ig &a,aar format stores on apparels$ footwear$ accessories and general merchandise$ he added.

Or'ani2ational Stru%ture GJonalF

2resident 3ice 2resident

Marketing H) 8ategory Manager Finance Manager <peration Manager Head Manager

Marketing H) 8ategory Head 9tore manager Head Head Head

Finance

Store Structure Store 5ana'er

A++i+t Store 5ana'er

7ept Manager Human )esource 'dministration Info ech 3isual Merchandise Marketing 'ssist 7M 8ashing 7ept

Maitanance eam Keader

'ssistant H) 9ecurity

eam Mem!ers 8ashier House keeping

897 F8ustomer 9ervice deskG

*ISSION

KTO 5 R" AS TA / ST AND TA 5OST PROFITA/7 R TAI7 R IN INDIAL

5ISSION MTO SP ARA D AIS -O5PANY TO / TA FIN ST AND TA 5OST PR F RR D -AAIN IN R TAI7IN"L

/i' /a2aar on an e9pan+ion +pree

8ountries leading retail chain Future Group is going for a ma+or e-pansion of its &ig &a,aar chain of outlets$ with the company planning to take the total num!er of stores to 0>1 !y 5une ?11=. &ig &a,aar presently has =? outlets across the country and has plans to add over E> stores !y the end of 5une ?11=$ Future Group 7irector )akesh &iyani said. &esides$ the company is also e-ploring for a >16>1 +oint venture with International Group for its kids;ear segment.

M;e are e-ploring various proposals and options to ma-imi,e our efficiency and operations$M he said on the sidelines of the 2ure . 2lay )etail 9ummit here. ;hen asked '!out the media reports regarding Future Group plans: to split the company into two speciali,ed segment consisting of front D end and !ack D end retail$ &iyani refused to 8omment on the issue. M he company cannot comment on speculated stories run !y sources. here is no official 'nnouncement or decision in this regards$M &iyani said. He added that the company#s e-pansion would !e fully funded$ with its own capital. M he funding plans are !eing done !y preferential allotment and we have already decided a!out the amount$ M he said. Future Group is also starting its own ethnic women:s wear stores and the first one will start !y 'ugust this year. M' total ethnic in the women: wear category will come up in various cities and the stores will !e on 0>$111D0@$111 s/ feet$M &iyani added that the company is planning to grow !y 0>D?1 per cent in apparel wear and dou!le its sales of ethnic women wear in the ne-t few years. he company is also looking for an increase of >1D>> per cent in its total sales over the ne-t five years.

S -URITY 5 ASUR S
2antaloon 'pparel$ food$ etc. 2<96 HomeDgrown solution 9'2 )etail &I and 7ata warehouse6 8ongo#s Fprocess of evaluationG

handheld scanners at Food &a,aar 3246 8ompanyDwide network linking all the !ranches hey have loss prevention cell FK28G that will !e looking after the safety measures in the organi,ations. here are > mem!ers in each store.

The# ha;e 0 t#pe+ of ta'+

3. Aard ta' $. Soft ta' (. Strin' ta' hese tags will !e attached to the materials. If any person will take that without paying !ill some process will !e taken !y the K28. Pro%e++6 In case any theft is done in !ig !a,aar they will catch the person . they will fine him and they will fill one form that he had done the mistake . they will take all 01 fingers thum! impression.

Departmental 5ana'er+
here are ?E departments in this store like Electronic dept$ 7epot dept$ 4&7 dept$ Mo!ile &a,aar 7ept$ 9tar sitar 7ept$ 2U8 7ept$ Kadies 7ept$ Men#s 7ept$ Furniture 7ept$ Footwear 7ept$ and Home 7Rcor 7ept. Each department will !e assigned with targets$ which have to !e achieved within the assigned period that may !e of 7aily$ ;eekly$ monthly and yearly.

Each department has a department Manager . 'ssist 7M. heir +o! is concerned mainly with sales. hey look after

customer#s orders delivery post sale service if any etc. 'll 7ept managers '7M$ coordination . cooperation. hey are also responsi!le for the placing orders of the goods incase of shortage here they have to send indent specifying the amount of products needed at the store. hey have to eam mem!ers work under

report periodically the performance of the department to the store manager.

Admini+tration
9tore administration comes under 9tore Manager its functions are store maintenance$ House Keeping$ 9ecurity etc. 9tore manager has to control all the activities within the store. He has to communicate all the departmental managers and assistance departmental managers regarding any new offers$ regarding their targets etc. 9ore manager has to see the operation at the store is !eing performed in coordination and cooperation he has to communicate with the corporate office regarding any changes !eing applied at the store.

Information Te%hnolo'#
his department is responsi!le for the maintenance of the systems of the stores. 'll !illing machines their functioning networking with the master machine etc. If there is any pro!lem with the machine then this department comes into function.

-a+hin' Dept
his department is responsi!le for the collection of sales amount i.e. cash sales$ 8redit sales$ etc under this department all !illing machines of the stores comes. he

sales amount collected throughout the day !y the cashier#s has to !e su!mitted to this department.

5ar&etin'
his dept is responsi!le for the marketing of the store in different media like elevision$ 4ewspaper$ and Holdings

etc. the authori,ed person has to visit different companies and has to look after for tieDups etc. he e-ecutives arranges rally#s

*i+ual 5er%handi+e
his department is responsi!le for the product arrangement at the store with respect to their nature. he !asic function

of this dept is it divides the store into several departments !ased on the nature of the product and within the department it decides how the products should !e arranged !y keeping in mind the customer should not suffer.

Auman Re+our%e
Human )esource !asically works for the welfare of the employees. It acts to organi,e the manpower and work to increase productivity of the employees. &asically Human )esource performs the functions of )ecruitment$ Hiring$ Induction$ raining and development$ 2erformance

appraisal of the employees. Human )esource studies and involves in inter life cycle of the employee from his +oining the organi,ation to till his end from the organi,ation.

-SD G-u+tomer Ser;i%e De+&F

his is the separate unit$ which is mainly focuses on customer service like if the customer find difficulty in finding any product$ 8ustomer complaints any replacement$ 8ustomer assistance etc.

Suppl# %hain mana'ementD

8ompany#s supply chain was split into the !road categories of fashion$ food and general merchandise$ leading to a more focused approach to !usinesses$ improved service levels$ !etter customi,ation of logistic and supply chain related needs$ and finally delivera!les. Further$ with new concepts

and lines of !usiness !eing included during the year$ as well as strategic alliances with other companies$ the process of gradually integrating them have either !een completed or close to completion. he e-isting supply chain design consists of a Master 7istri!ution 8entre FM78G and city warehouses upgraded to )egional 7istri!ution 8enters F)78sG and additional 7istri!ution 8enters F78sG. and 0@ )78s and 78s he company has also appointed leading international and domestic players in the warehouse infrastructure and technology front. he company also introduced the concept of reverse logistics that looks at setting up a process to transfer finished goods from the consumption point to the point of origin. his reduces wastage and can lead to significant cost savings. <n the technology front$ all the e-isting M78s$ )78s and 78s are live on 9'2$ there!y facilitating standardi,ation$ real time data management and reporting$ as well as optimum operational efficiencies. he company had one M78

5# 7earnin' 9perien%e in the %ompan#

I am very happy to e-press my practical e-perience at &ig &a,aar. &efore going to share my practical feelings regarding pro+ect work. I would like to say heartily thanks to

'dept Institute of Management studies. ;ho have given one of the good opportunity to learn a knowledge in practical environment and along with that I would like to say heartily thanks to company guide Mr.'rif 7epartment ManagerG of !ig &a,aar. I had under gone a glorious B1 days pro+ect at &ig &a,aar. 'nd along with that I had learn a lot of practical things from the corporate world. From this pro+ect i came to know that customer !uying !ehavior and taste and priority preferences of customer towards retail sector and competition level in the sector and along with that i had learn how management is responsi!le for increasing sales and revenue of the company 'nd also i learned what management make to attract the customer there are several promotional strategy which influencing purchase decision of !uyers and also I learned functional department like H)$ Finance and Marketing. From this pro+ect now I came to know that how to carried out !usiness process in a systematic manner in the competition level. his practical knowledge of pro+ect made me to perfect in future to stand in a any corporate world. 'nd Finally I thanks to 'IM9 8ollege 7harwad and company guide '7M F'ssistant

Mr.'rif

Re+ear%h 5ethodolo'#
9ince the study is on retail sector first the detail study of the store is !een conducted a!out its Management team its structure the num!er of departments which all !rands does the store has$ who are its suppliers a!out its warehouses. &ased on the topic o!+ectives were set and to arrive at the opinion on o!+ectives a set of 011 /uestionnaires were designed of 01 /uestions and response is collected from the customers who are visiting the store. For data collection )andom 8onvenient sampling method was adopted For this pro+ect the area of research is Hu!li.

Ob?e%ti;e of the pro?e%t

To &now the effe%ti;e promotional +trate'# whi%h influen%e %u+tomer to pur%ha+e a produ%t of /i' /a2aar.

SubBob?e%ti;e+
0G ?G o know the promotional strategy of !ig !a,aar o know the relationship !etween promotional strategy and !uying decision

Data -olle%tion+ 5ethod+

Market research re/uires two types of data i.e. secondary data and primary data. 2rimary data has !een used a!undantly for the study. ;ellDstructured /uestionnaires were prepared . the survey was undertaken. Feed!ack for the display has !een taken !y asking /uestions . o!servation has also done to gather primary information. here is also a use of secondary data$ collected from the various +ournals$ !ooks$ and we!sites . from company managers. Primar# data Se%ondar# data Field Sur;e# /i' /a2aar re%ord+ Te9t /oo&+ and ?ournal+ -ompan# >eb+ite+ Area of re+ear%h6 Re+ear%h approa%h6 Aubli Sur;e# method

Samplin' 5ethod
9ince the study is restricted to )etail sector$ all the functional 7epartments of &ig &a,aar and the respondents are found at the store only so according to the convenience randomly they are !eing picked so sampling method is used in this study is )andom 8onvenient 9ampling.

Samplin'
Sample +i2e Samplin' 5ethod Sample Unit D .88 re+pondent+ D Random -on;enien%e +amplin' D -u+tomer of /i' ba2aar

5ea+urin' Tool

Nue+tionnaire

ANA7YSIS AND INT RPR TATION

N No .D >hi%h +tore fir+t %ome+ to #our mind when #ou thin& of pur%ha+in' a produ%tO

R SPONS /i' ba2aar *i+hal me'a mart Other+ retailer Total

NO OF R SPOND NTS II .$ , .88

P R- NTA" ))C .$C ,C .88C

ANA7YSISD From the survey$ from 011 respondents$ IIC of them gave 0st preference to &ig &a,aar 0>C of them gave preference to 3ishal Mega Mart and HC were gave to other retailer . INT RPR TATION 5o+t of the %u+tomer+ are 'i;en .+t preferen%e to /i' /a2aar %ompare to other retailer+

1G From which source did you come to know a!out &ig &a,aar outlet. R SPONS .3 'dvertisement Hoardings 4ews paper
Buspaintings

Total

NO OF R SPOND NT ?B BE B0 0? 011

P R- NTA" 10C BEC B0C 0?C 011C

ANA7YSISD From the a!ove graph i can come to know that$ among 011 respondents$ ?BC of them come to know a!out &ig &a,aar through 3 advt.$ BEC of the respondents told that through Hoardings$ B0C of them through news paper $ and 0?C came to know through !us painting

INT RPR TATION.

Hoarding is the most influencing

factor which is responsi!le for awareness of &ig &a,aar. BF Are #ou aware of promotional offer+ %ondu%ted b# bi' ba2aarO

)esponse Jes 4o otal

No of respondents 87 13 100

Percentage HIC 0BC 011C

ANA7YSISD

'mong the 011 respondents$ HIC of them

they are aware of promotional offers$ 0BC told they have told that they are not aware. INT RPR TATIOND HIC of customers are aware of promotional activity in the !ig !a,aar.

3F Plea+e %hoo+e below the fa%tor whi%h attra%ted #ou mo+t at the /i' /a2aar.
Rates <ffer 9ervice Suality 'vaila!ility of products Total No of respondents 51 9 23 17 100 percentage 51% 9% 23% 17% 100%

Anal#+i+ 'mong 011 respondent >0C of customer they have told that they are attracted !y the offers and =C of them told that they are attracted !y service and ?BC of them told that they are attracted !y /uality and only 0IC of them told that only for availa!ility of products InterpretationD

Most of the people attracted towards !ig !a,aar only for the promotional offers. 9o offer is the most influencing factor among those.

$F >hi%h of the followin' fa%tor+ influen%e in #our pur%ha+e de%i+ionO

Rates <ffer 9ervice Suality Effective advertisement otal

No of respondents 43 11 21 25 100

percentage 43% 11% 21% 25% 100%

'4'KJ9I96 'mong 011 respondent EB of them told that offer is responsi!le for their purchase decision and = of them told

that service and ?B of them told that /uality an only ?> of them told that effective advertisement INT RPR TATIOND 'mong those factor offer is the emerging factor which is responsi!le for purchase decision of !uyers (F Do #ou thin& the promotional a%ti;it# of /i' /a2aar 'i;e+ #ou %lear me++a'eO Response es No otal No of respondents )) 23 100 Percentage IIC ?BC 011C

ANA7YSISD 'mong 011 respondent II of them told that the promotional activities of !ig !a,aar gives clear message and ?B of them told that they do not understood.

I4 E2)E ' I<46 Most of the people highly agree that promotional activity of !ig !a,aar gives clear message )F >ill #ou ad;i+e an#bod# to ;i+it /i' /a2aar in #our future +hoppin'

Response es No otal

No of respondents 6, 2 100

Percentage =HC ?C 011C

ANA7YSISD 'mong 011 respondents =H of them told that they will advise others to visit !ig !a,aar in future shopping and only ? of them told that they do not advise. INT PR TATIOND Most of the respondent they would like to advise others in future shopping

HG 7oo&in' at the promotion+ of /i' /a2aar doe+ #our pur%ha+e pattern %han'e+ Response es No otal No of respondents ,0 17 100 Percentage HBC 0IC 011C

ANA7YSISD Amon' .88 re+pondent ,0 of them told that the+e promotional offer+ %han'e+ their pur%ha+e pattern and onl# .) of them told do not %han'e. INT RPR TATIOND

5o+t of the %u+tomer belie;ed that promotion+ i+ re+pon+ible for their pur%ha+e de%i+ion

6F. would #ou li&e to ma&e #our pur%ha+e under une9pe%ted offer+O Response es No otal No of respondents 63 ! 100 Percentage =EC @C 011C

ANA7YSISD Amon' .88 re+pondent+ 63 of them the# are intere+ted to bu# produ%t+ under une9pe%ted offer+ and onl# ( of them told that the# do not bu#. INT RPR TATIOND

5o+t of the %u+tomer intere+ted to bu# under une9pe%ted offer+ onl#.

FINDIN"S SUR* Y FINDIN"S

I4F<)M' I<4 9E')8H '47 E3'KU' I<4 2)<8E99
From the sample si,e of 011 samples it is found that the &rand is well positioned in the minds of customers !ecause IIC of the respondent#s

preference is &ig &a,aar for their shopping. 'mong 011 respondents$ ?BC of people told that 0st they came to know through 3 advertisement and

BEC of people told that through hoardings B0C of them told that through news paper and finally 0?C of them highly agree that through !us painting. 'mong the 011 respondents$ HIC of them told that they are aware of promotional activities of !ig

!a,aar .only 0BC of them told that they are not aware of promotional activity of !ig !a,aar . 'mong the 011 respondent >0C of them told that they are attracted towards !ig !a,aar only for the offers =C of them told that service and ?BC of them told that /uality and only 0IC of them told that due to availa!ility of products 'mong 011 respondent EBC of them agree that offers is the most emerging factor influencing purchase decision and only 00C of them told that service ?0C of told that /uality and finally ?>C of them told that effective advertisement is responsi!le for the purchase decision.

'mong 011 respondent IIC of them told that promotional activities of !ig !a,aar gives clear message and ?BC of them told that they did not understood.

'mong 011 respondent =HC of people interest to advise others in future shopping and only ?C of them not interest to advice.

'mong 011 respondent HBC them told that promotions of !ig !a,aar changes their purchase pattern and only 0IC told that does not changes.

'mong 011 respondent =EC of them told that they are interested to !uy products under une-pected offers and @C of told that they do not !uy.

Re%ommendation+

&ig !a,aar should keep offers in regular intervals so that there should not !e a long term gap$ !ecause offer is the most influencing factor which is responsi!le for customer purchase decision.

'nd they also concentrate on

3 advertisement they

should show ads and promotional offers in a regular interval in three languages like Kannada Hindi English. Hoarding should !e placed uncovered area.

-ON-7USION
Indian retail sector is witnessing one of the most hectic Marketing activities of all times. the !usiness tycoons. he companies are fighting to win the hearts of customer who is God said !y here is always a "first mover advantage# in an upcoming sector. In India$ that advantage goes to %&IG &'('')*. It has !rought a!out many changes in the !uying ha!its of people. It has created formats$ which provide all items less than one roof at low rates. he consumer#s preferences are changing . they are moving from raditional Kirana stores to Modern )etail outlet. It#s the main challenge to the Modern retail outlets to attract the customers towards them from that of competitors. o attract more customers companies have to carry out the promotional activities in uni/ue way. &IG &'('') has maintained that uni/ueness . has succeeded in attracting customers. he promotional activity of the company$ which famous as Kess 2rice than others as it says :Nobod# Sell+ -heaper and /etterP< is made its place in minds of customer. 's the competition is !ecoming stiff in the market the activities conducted !y the company are uni/ue$ that have !rought fruitful result to the company. 'mong them sales 2romotions is one of the leading activity or uni/ue among all other activities . has high influence on the customer walkDin.

7I5ITATIONS
he study was restricted to only the customers of &IG &'('')$ Hu!li. he time constant was a limiting factor$ as more time re/uired carrying out study on other aspects of the topic. he result and analysis !ased on the customer survey method and small sample si,e has taken only 011

Findings are related to particular areas.

ANN !TUR KA STUDY ON TA FF -TI* PRO5OTIONA7 STRAT "Y >AI-A INF7U N- S -USTO5 R TO PUR-AAS A PRODU-T OF /I" /AJAARL

Questionnaire

Name: ___________________ ___________________ Address: _____________________

Contact No:

1" #$ic$ store first co%es to &our %ind '$en &ou t$in( of purc$ase a product)*

a+ Big Ba,aar c+ ot$er retailer

-+.is$al %art

1F From whi%h +our%e did #ou %ome to &now about /i' /a2aar outletO a/ 0) .) ad1ertise%ent c/ -us paintings -/) 2oardings) d) ne's paper

3" 3re &ou a'are of pro%otional acti1ities conducted -& Big Ba,aar in 2u-li)* a) es -) No)

4" Please c$oose fro% -elo' t$e factor '$ic$ attracted &ou %ost at Big Ba,aar* a) 4ffer -) ser1ice c) 5ualit& d)a1aila-ilit& of products

5" #$ic$ of t$e follo'ing factors influence in &our purc$ase decision)* a) 4ffers products -) 7ffecti1e ser1ices ad1ertise%ent d) 7ffecti1e c) 6ualit& of

!" 8o &ou t$in( t$e pro%otional acti1it& of Big Ba,aar gi1es &ou t$e clear %essage* * a) es -) No

7" #ill &ou ad1ise an&-od& to 1isit Big Ba,aar in future s$opping* a) es -) No

H. 7oo&in' at the promotion+ of /i' /a2aar doe+ #our pur%ha+e pattern %han'e+O a) es -) No

6. >ould #ou li&e to ma&e #our pur%ha+e under une9pe%ted offer+O a) es -) No

10" 3n& 1alua-le suggestion 999999999999999999999999 99999999999 9 9ignature of 8ustomer

/iblio'raph#
Referen%e /oo&+
o o

Marketing Management6 2hilip Kotler 'dvertising and 9ales6 2romotion &elch and &elch

o o

)etail Management6 &a+a+ and 9rivastav Research Methodology: Cooper and Schindler

HOURNA7S AND 5A"AJIN S

Business World Business Today

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