Project report

On
RETAIL INDUSTRY
IN INDIA
Submitted to:

Submitted by

Acknowledgement
It gives me immense pleasure to acknowledge my deep sense of gratitude to Mr.
Kapil Sharma (Marketing Head) & Mr. Amit Verma (Departmental Head) for
providing me an opportunity to enlighten me from their rich & varied experience
during the different stages of my training.
The efforts put by me during the development of this project would not have been
a success, had it not been for the people around me, who encouraged & help me at
all times. I am also thankful to Mr. Sameer Mathur (Stores Manager) who

encouraged me a lot. I am grateful to my friends & parents who helped me during

the different stages of my project.
I owe this moment of satisfaction with a deep sense of gratitude to my
Management Department who motivated me right from the beginning. The
interest, skillful continuous guidance & constant supervision at every stage of
project have been the greatest help to me to bring out this work in its present form.

(Priti Sharma)
M.B.A-III sem

Declaration
I, Priti Sharma, the student of M.B.A. (III sem), TIT&S
Bhiwani, hereby declare that I have completed this project myself during summer
training under the title Retail Industry in India in Gurgaon, for a period of 8
weeks started from 4th June to 4th August.

All the information is wholly my own and original and not

copied from anywhere else.

(Priti Sharma)
M.B.A. III sem.

Contents
Industry Profile
Company Profile
Background
Growth
Pioneering
Brands
Concept & Evolution
Retail space
3

 Business Division
Big Bazaar
Food Bazaar
Pantaloon Performance Drivers
Vision
Rewards & Recognition
Unit Profile
Project undertaken
Preface
Research Design
Population
Sampling Procedure
Sampling Unit
Sample Size
Data collection Method
Limitations
Data Analysis
Conclusion
Recommendations
Annexure
Questionnaire
Bibliography

RETAIL INDUSTRY IN INDIA

Retailing occupies a pre-eminent position in all economies. Retailing includes all
those activities that involve the sale of goods and services to ultimate consumers
for personal, family and household use. Indian consumers are always known for its
price sensitivity. Change in Indian retailing has been constant but the pace of
development is fast over past few years.
According to survey conducted by CII & McKinsey, the total number of retail
outlets in India are more than 12 million. The survey estimated that retail segment
in India contributes more than 10% to the GDP and employs around 8% of the total
workforce. The high contribution is attributable to the fact that India has the largest
4

retail outlet destiny relative to population. Compared to the number of retail outlets
per 1000 people, India has 5-10 retail outlets where as it is just 3.7 in US. This
itself highlights the extent of retail penetration in India.
TRADITIONAL VIEW:
India is the country having the most unorganized retail market. Traditionally the
retail business is run in a shop in the front of the house. Making India a nation of
shopkeepers. The estimated number of outlets in India was 5.37 million in 1999.
This means at least 5.5 outlets per 1000 people, the highest number of outlets per
capita in the world. These outlets however, barely come within the organized
sector.
CHANGING VIEW:
Since Indian industry is showing changing faces, the retail industry is not an
exception. Indian consumer wants big in less time. With the changing time, people
are more occupied with work, office, family and children. With this change in their
lifestyle their consuming pattern has also changed.
UPCOMING ORGANIZED RETAIL SECTOR:
In the opening of 21st century, there is evidence of new forms of retailing. The
retail market is becoming more segmented with retail formats focusing on the
needs of a particular consumer groups. The traditional forms of independently
owned small business and co-operatives are losing their market share in big areas,
metro cities and satellite areas.

Retailer

Pantaloon
RPG
ShoppersSto
p
Lifestyle
Westside
Ebony

Turnover
(Rs Cr)
200304
650
545
404

200405
1300
800
545

Total
floor
space
(lakh sq. feet)
2003200404
05
11.0
30.0
5.2
7.5
6.3
8.5

230
120
85

310
100

3.2
2.3
1.7

3.2
3.3
2.4

Total
no.
outlets

of

200304
31
110
13

2004-05

7
14
8

15
18/19
12

74
130-134
40

Piramyd
Globus

72
N.A.

140
-

1.3
1.5

5.0
6.0 *

3
7

7/8
14/15*

Foot Notes: *figures are for the year 2006-07.

PROSPECTS:
According to CII-McKinsey report retailing in India is the biggest industry with
gross sales totaling $180 billion and second largest generator of employment after
agriculture. Retail industry is expected to grow at the rate of 15-20% per annum in
the organized retail sector. The retail sector is expected to show maximum growth
in the areas of Apparels, Food Retailing and Entertainment.
Big format stores are classified into: Retail malls
Specialty stores
Departmental stores
Discount/Bargain stores
Hypermarket
Hybrid stores.
Though the numbers are few but the success stories of these retail formats can give
the picture of retail potential in India. Pantaloons (Biyanis), Westside (Tatas),
Lifestyles (ITC), Food world (RPG), Music World, Marks &Spencer and many
more have made a landmark in Indian organized sector exceeding Rs.100 crore
marks.

Company Profile
PANTALOONS PROFILE
Background:
Pantaloon Retail (India) limited was incorporated as Manz Wear Private Limited
by Kishore Biyani on 12 October 1987, converted into public limited company in
September 1991, renamed as Pantaloon Fashions (India) Limited a year later &
6

thereafter into Pantaloon Retail (India) Limited in July 1999. The company is
headquartered in Mumbai & possesses plants at Tarapore & Mumbai to
manufacture garments.
Growth:
Pantaloon reported a turnover of Rs 650 Cr in 2003-04, Over this period company
has evolved as from a small manufacturing concern into Indias largest
manufacture-retailer, integrated along the entire value chain. By the end of the first
quarter of 2002-03, the companys presence had grown to 14 departmental stores &
4 hypermarkets. The company had 2,13,000 Sq Ft. of Pantaloons departmental
stores & 1,72,000 Sq Ft. of Big bazaar discount stores (end of first quarter, 200203).
Pioneering:
Over the years, the company has accelerated growth through its ability to lead
change. A number of its pioneering concepts have now emerged as industry
standards. For instance, the company integrated backwards into garment
manufacturing even as it expanded its retail presence at the front end, well before
this was attempted by any other Indian retail company.
The company was first to introduce the concepts of the retail departmental store
for the entire family in 1997.
The company was the first to launch a hypermarket in India with Big Bazaar, a
large discount store that it commissioned in Kolkatta in October 2001.
And the company introduces the concept of Food Bazaar, a unique Mandi
within a hypermarket, which was launched in July 2002 in Mumbai.
Brands:
The companys retail presence is marked by visible & reputable brands like:
John Miller, Bare, srishti, HNY, Annabelle, scotsville, Ajile, pantalength &
Pantaloon (Indias no. one trouser).
The company delivers adequate customer choice by stocking non competing &
complementary brands owned by other manufacturers.
Concept:
Pantaloons introduced the concept of the departmental store. It stocked all the
customer lifestyle needs from clothing, home needs, apparels, beauty accessories &
other products. In doing so, the company addressed around 20% of the customers
shopping basket. In 2002-03, the company took this initiative an important step
further. It introduced the hypermarket discount store with more than 1,80,000 items
7

--- food, grocery, utensils, kitchen needs, home needs, bath needs, toys, stationery,
electronics & white goods- that now catered to nearly 60% of the customers
shopping basket, translating into higher footfalls & turnover.
Evolution:

Stage I

1987-88 Product Driven: Began manufacturing trousers.

RETAIL
1988-92 Brand Driven: Bare and John Miller came in.
Stage II
SPACE:
The company
1992-97
Distribution Driven: Began focusing on
hasStage III 15
wholesale, multi-level marketing to drive penetration.
Pantaloon
stores
across
Stage
IV
some of the 1997-2001 Retail Driven: The stores came up, first own
most attractive label stores, then department stores and other formats.
retail
Stage V
designations in 2001-04 Knowledge Based: Begins focusing on capturing
knowledge
on
consumers,
processes,
India.
These internal
locations..
locations
Stage VI
continued to be By 2007, Pantaloons will be Design Driven organization.
marked
by
people with a
disposable surplus and a discernable willingness to buy quality products and pay
commensurate prices for them.
The companys coverage is given below:
S.No Name of the store
Retail Space (Sq. feet)
.
1.
Pantaloons, Gariahat, Kolkata
16,000
2.
Pantaloons, Hyderabad
16,000
3.
Pantaloons, Nagpur
6,000
4.
Pantaloons, Adyar
4,500
5.
Pantaloons, Himayatnagar, Hyderabad
9,000
6.
Pantaloons, Secunderabad
1,500
7.
Pantaloons, Crossroad, Mumbai
4,000
8.
Pantaloons, Thane, Mumbai
6,000
9.
Pantaloons, Pune
10,000
10.
Pantaloons, Chennai
22,000
11.
Pantaloons, Ahemdabad
34,000
12.
Pantaloons, Camac street, Kolkata
46,000
13.
Pantaloons, Kanpur
30,000
14.
Pantaloons, Pune-INOX
8,000
8
15.
58,000
Pantaloons,Gurgaon

Total Area

2,71,000

BUSINESS MODEL:
It has been calculated that most Indian retail companies enjoy a margin of 28
percent on sales. But the retail cost, estimated at 28 percent of sales generally
leaves them with a little to cover H.O. expenses. This explains why most organized
retailers in India struggle to break even.
Faced with challenging scenario, Pantaloons rewrote some rules.
It introduced private labels as opposed to selling only popular brands.
Pantaloons prudently selected apparel as a volumedriver. It manufactured 40
percent of all the garments that it put on its shelves.
It eliminated supply-chain inefficiencies, reduced costs and passed these
savings to customers.
It offered an exchange policy with no questions asked.

BIG BAZAAR
Big bazaar
Isse Sasta Aur Acha Kahin Nahin
is
the
hypermarket
discount store initiative of the company (Pantaloon) commissioned to address the
discount & bargain-hunting tendency of the Indian shopper.
Firstly Big Bazaar was set up across 50,000 Sq. ft. in Kolkatta. Driven by the
resounding success of the concept, four Big Bazaars were rolled out across
2,00,000 Sq. ft. in Hyderabad, Bangalore, & Mumbai.These include Mens, Ladies,
children apparel, utensils, kitchenware, stationery, luggage, toys, optical products,
a photo studio & an STD booth among others.
Big Bazaar has more than 50 sales offers across its countries at any time & these
discounts range from 6 to 60%.The magic of the concept is reflected in the footfall.
Big Bazaar attracts more than 5,00,000 shoppers every month. More importantly, it
has emerged as the first organized store to reach out to a broad customer spectrumfrom a village to a wealthy businessman.At Big Bazaar, price was the principal
value proposition at these stores. The store sold a variety of products 5 to 60%
lower than the corresponding market price. Schemes of Big bazaar are very
popular like buy two get one free. Also positioning & product availability in Big
Bazaar gained a higher share of the customers shopping basket.

FOOD BAZAAR
9

Food Bazaar
Ab Ghar Chalaana Kitna Aasaan!
In July 2002, Big Bazaar made a challenging extension: It entered the Food Retail
with a 9,000 Sq. ft. Food bazaar at its lower parel store in Mumbai. Enthused by
the phenomenal response, the company has set up Food Bazaar in other Big Bazaar
stores also.
The companys reason for entering Food retail were:
Food spending at 53% of personal income outstripped every other itemized
spending in India.
Despite this high spending, the role of organized food retail in the countrys
total food spend was just one percent.
Within this under penetration, an interesting pattern was noticed: organized
food retail was estimated to be the fastest growing retail segment.

Business model:
The companys Food Bazaar was adapted to the Indian environment. To attract
regular bazaar-goers, a mandi was created within the Food Bazaar where
consumers could touch, feel, pick & choose products. This choice was
supplemented by the provision for packaged food for the westernized shoppers.
Food Bazaar prices were priced at wholesale rates below the MRP. Private labels
were introduced for high margin & price-sensitive products like tea, salt and oil.
Products:
The Food Bazaar stocked an average of 11,000 SKUs. This includes provisions,
vegetables and fresh produce, FMCG products, bakery products, basic staples,
cereals, pulses, cooking oils, flour, spices, dry fruit, health food, baby food, dairy
products, drinks, beverages as well as ready-to-eat, ready-to-cook products. The
incidence of special purchase offers and discounts made shopping at Food Bazaar
highly affordable.

Big Bazaar isse sasta aur achha kahin nahi is the hypermarket discount store
initiative of the company commissioned to address the discount and bargain
hunting capacity of the Indian shopper.
10

At big Bazaar, price was the principal value proposition at these stores. The store
sold a variety of products 5% to 60% lower than the corresponding market price.
Apparel, for instance, was normally cheaper by 25% to 60%. To popularize
discounts, Big Bazaar circulated a Patrika with offer like: Kanchan frying pan
worth Rs. 250/- free with Dawat premium Basmati rice worth Rs. 310/- and Buy
two bottles of Haveli pickles, Get the third free.The magic of the concept is
reflected in footfall, Big Bazaar attracts more than 500000 shoppers every month.
More importantly, it has emerged as the first organized store to reach out to a broad
customer spectrum- from a villager to a wealthy businessman.In addition to the
attractive price differential, Big Bazaars draw was its unusual offer: that the
customer could not locate similar product at a lower sticker price elsewhere within
10 days, then the customer would be entitled to gift voucher worth twice the
amount of the difference! Besides, the Shop-in-Shop concept also maximized
footfalls.Thanks to its positioning and product availability, the Big Bazaar stores
gained a higher share of the costumers shopping basket. The Big Bazaar stores
contributed Rs. 55.88 Cr to the companys turnover in 2001-02 (including Shop-inShop sales of Rs. 12.87 Cr).
PRODUCTS
A Big drive of footfall at Big Bazaar is the product Variety. The Company stocks
about 1,30,000 items over 20 product categories. This has been supported by the
Companys decision not just to stock it with shops. As a result, a usual Big Bazaar
companies shops that stock medicines, optical accessories, camera rolls bakery
products dry fruits, crockery, utensils, glassware, health and beauty products, ladies
accessories, saree and dress material, infant necessities, readymade garments,
fabrics, electronics, watches, clocks, computer accessories, food and beverages,
stationery, household appliance, house hold products, plastic products, furniture,
home furnishings and luggage. A Big Bazaar also provides PCOs, Photostats and
ATM services.
Apparels: Apparels accounted for 70% of Big Bazaar off take in 2001-02 the price
factor was singularly responsible for the success it started from Rs. 99/- upwards to
Rs. 799/-. Even though the apparel products at Big Bazaar reinforced the price with
its range mens wear, ladies ethnic, western wear and kids wear the role of Visual
Merchandising was emphasized.
Non Apparels: Non apparels sales accounted for 10% of Big Bazaar total of sale in
2001-02. A range of more then 1 lac items coupled with a 6% to 60% discounts
started a virtuous cycle: thanks to the increased footfall, Big Bazaar entered in to

11

an attractive negotiation with its vendors for better prices, which translated into an
even higher footfalls. The non apparel categories include plastics items, footwear
toys, luggage, appliance white goods and stationery.

I have done my training in the Big Bazaar, division of the Pantaloon (Gurgaon)
in Sahara Mall. The title of my project is customer feedback which was
conducted with the way of questionnaire by getting the response of regular
customers in the household section of Big Bazaar. It was a good experience as how
to conduct with various people & how to get different information from different
customers.
Customer Feedback:
Customer feedback is very necessary practice in marketing because with the
help of this, a marketer can know his customers attitudes about their products.
By taking customer feedback the marketer can make necessary improvement in
his product according to the requirements of the customers.
Nowadays, it becomes a common practice that every company is taking the
customers feedbacks from any of the methods like through websites or emails.According to planet_customer.com companies like Cadbury India, Godrej
Soaps, Voltas, Johnson & Johnson, Raymond, Eureka Forbes and Dabur etc.
have already registered at the site & customers can send their feedback through

12

to them. Through net customers can communicate with the companies directlyfor complaints, compliments, suggestions and even questions.
Many FMCG products producers are providing their e-mail addresses or
websites at the backside of the wrapper, in order to built a link between
customers & producers. They listen to different queries of customers & provide
assurance about the quality of product.

Objective of study
1. To find out the source from where the respondents came to know
Big Bazaar (division of Pantaloon).

about

2. To find out the customers response about the Layout & Display of Big
Bazaar.
3. To find out the availability of products in the Household section.
4. To find out the quality satisfaction of Plastics in the Household section.
5. To find out the quality satisfaction of utensils in the Household section.
6. To find out the quality satisfaction of appliances in the Household section.
7. To find out the Price satisfaction level among customers.
8. To find out the availability & capability of salespersons service stranded at
the Household section.
9. To find out the most preferred brands in Plastics.

13

10. To find out the most preferred brands in appliances.

Research Metholodgy
A research Methodology is a way to systematically solve the research problem. In
Research Methodology we study the various steps that are generally adopted by
researcher in studying his research problem along with the logic behind
them.Research in common parlance refers to a search for knowledge. Information
is the lifeblood of managerial decision-making. The purpose of methodology
section is to describe the research procedure by which the relevant information is
gathered.
This section comprises the research design, the data collection method, the sampling
procedures and analysis procedures.

Research Methodology includes:

Research Design
Sample Design
Data Collection
Data Analysis

14

RESEARCH DESIGN:
A Research design is the overall plan or program of research. It is the general blueprint for the
collection, measurement and analysis of data. It includes an outline of what the investigator will do
from writing the hypothesis and their operational implications to the final analysis of data. It is the
overall operational pattern or framework of the project that stipulates what information is to be
collected, from which sources and by which procedure.

Population:It is the target group, which the researcher wants to know about by
studying one or more of its samples. To be complete, a population must be very
explicitly defined in terms of elements, sampling units, extent and time.
Sampling Procedure:Sampling is simply the process of learning about the
population on the basis of a sample drawn from it. Thus, in the sampling technique
instead of every unit of the universe only a part of the universe is studied and the
conclusions are drawn on that basis for the entire universe. A sample is a subset of
population units. The process of sampling involves three elements:
Selecting the sample,
Collecting the information, and
Making an inference about the population.

CONVENIENCE SAMPLING
Sampling Unit:
The sampling unit is the basic unit containing the elements of the population to be
sampled. It may be the element itself, i.e., the object on which measurements are
taken or a unit in which the element is contained.
Sampling unit chosen for the project: INDIVIDUAL
Sample Size: 100
Data Collection Method:
Depending on the source, statistical data are classified under two categories:
1) Primary Data
2) Secondary Data
Data used during project: PRIMARY DATA

15

Primary data are obtained by a study specifically designed to fulfill the data needs
of the problem at hand. Such data are original in character and are generated in
large number of surveys.
Method of data collection used: QUESTIONNAIRE METHOD
Limitations:
People in Gurgaon are very large in number. We used random sample and
convenient sample method. Actual information couldnt be taken from these people
because they were large in numbers.
1.

As the sample size was only 100, so it cannot be a true representative of the
whole Gurgaon.
2. We had very less time to complete this study. To cover all the people it
requires lot of time and money.
3. Some people did not have interest in the questionnaire, because of less time.
They didnt response well. So it affected the results of the study.

Data analysis
1) The different sources from where the respondents came to know
about Big Bazaar.
61% -- FRIENDS/RELATIVES
16% -- PRINT MEDIA
19% -- NEAR TO THE PLACE
4% -- OTHER SOURCES

16

SOURCES
4%

19%
16% 61%

2) The customers response about the layout & display of Big Bazaar.
98% -- LIKE
2% -- DISLIKE

LAYOUT/DISPLAY
2%
98%
3) Customers feedback about the availability of products in the
household section.

AVAILABILITY
7%
93%
93% -- AVAILABLE
7% -- NOT AVAILABLE

4) Quality satisfaction level of plastics in household section.

17

PLASTIC'S QUALITY
29%
53%
18%
53% -- GOOD
29% -- BAD
18% -- DONT KNOW

5) To know about the purchasing percentage of plastics in the Big Bazaar.

PURCHASE %AGE OF PLASTICS

18%
82%
82% -- PURCHASED
18% -- NEVER PURCHASED

6) Customers feedback about the quality of appliances in the household

section.

APPLIANCE'S QUALITY

58%4%38%
38% -- GOOD
4% -- BAD
58% -- DONT KNOW

7) To know about the purchasing percentage of appliances in the

section.

household

18

PURCHASE %AGE OF APPLIANCES

58%
42%
42% -- PURCHASED

58% -- NEVER PURCHASED

8) Customers feedback about the quality of utensils in the household

section.

UTENSIL'S QUALITY
24%
76%

24% -- GOOD

76% -- NEVER PURCHASED

9) To know whether the prices of items in the household section are

Comparatively less than the market price or not.

13% 22%
PRICE SATISFACTION
65%

65% -- REASONABLE PRICES

13% -- NOT REASONABLE
22% -- SAME AS MARKET PRICE

10) The most preferable brands of Appliances among customers.

19

PREFERABLE BRANDS OF APPLIANCES

3%
3%

4%
11% 20%
5%
15%
5%
12%
6%
9%
7%

20% -- LG
15% -- MAHARAJA
12% -- INALSA
9% -- PHILIPS
7% -- USHA
6% -- BIRLA

5% -- SUNFLAME
5% -- SINGER
4% -- SUMIT
3% -- REMSON
3% -- JVG
11% -- ANY OTHER

CONCLUSION
As the slogan of Big Bazaar Isse Sasta Aur Acha Kahin Nahin, has been attracted
most of the customers which directly affects on the increase in number of footfalls
of customers in Big Bazaar. As what I have observed that slogan attracts many
number of customers and ultimately affects on increase in number of footfalls in
Big Bazaar. The offers and discounts also attract lot of customers to purchase items
from Big Bazaar rather than outside. Also convenient shopping and self-service
attracts the customers.
According to my survey a great number of population are very much satisfied with
the availability & accessibility of products in Big Bazaar. But there are many
complaints regarding the quality of Plastics & Garments In Big Bazaar. Customers
found most of the items in Plastics were damaged &told that they are not long

20

lasting. But the purchasing of Plastics was in bulk as they are cheaper than other
items. So purchasing percentage of Plastics were more.

RECOMMENDATIONS
1) In the household section some products consisting of Barcode showing the
prices, were not displaying the discounted price on the label of the product.
Means discount deducted from the actual price were not shown; they were
deducted later at the counter during payment. It made a negative impact on
the purchasing of the products by customers. So staff members have to put
the offered prices on the product itself, as customers may not see the
discount board.
2) Chocolate counter should be displayed near the Toy section so that it can
easily attract the attention of Kids.
a. Sometimes the shelves remain empty.
b. So it is the task of salesperson to put all the products, which are
lacking on the shelf or which have been finished on the shelf.
3) The section containing curtain fabric should be removed from the
a. household section because of very less sales and turnover. It also
b. occupies lot of shelf space in the section.
4) There should be some sitting arrangements in Big bazaar, as the old
a. people & children get tired & wanted to sit somewhere.
5) The quality of Garments & Plastics should be improved. Means some
a. good brands should also maintained in Big bazaar.
CUSTOMER FEEDBACK FORM
1. From where did you know about Big Bazaar?
Friends/Relatives
Print Media
Near the place
Any Other
2. Did you like the layout/display of the household section?
Yes
No
If No, then why_________________________________________
3. Did you find the product, which you came to buy here?
Yes
No
If No, then what was the item______________________________?
4. Are you satisfied with the quality of:
- Plastic Goods
Yes
No
Dont Know
21

- Appliances
Yes
No
Dont Know
- Utensils
Yes
No
Dont Know
5. Do you feel that prices of items in household section are comparatively less
than the market price?
Yes
No
Same
6. What do you feel about the service stranded of staff at the household
section?
Good
Average
Bad
7. Which are your most preferred brands of Plastics?
1.___________________
2.________________________
8. Which are your most preferred brands of Appliances?
1.___________________
2.________________________
9. Do you find all the items easily accessible in the section?
Yes
No
If No, then why_________________________________________
10.Do you prefer to buy the products, which are under discounts/schemes?
Yes
Not necessary
11.Suggestions:
_____________________________________________________________
___________________________________________________
Name: _______________________
Address: _________________________________________________
Contact No.:___________________

Bibliography
BOOKS:
Basic Retailing
- Dr. Rekha Goel
Marketing Management
- T.N. Chabra
Fundamentals of Modern Marketing
Edward W. Cundiff

Magazines and Newspapers:

Business Today
Economic Times

Web Sites:
22

 www.nkarten.com
www.namikarten.com

Other Supporting Material:

Companys Profile Report

23