Big Bazar Final Report

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Submitted by:Suneel Akula

Submitted to:Mr.Hitesh Manocha

BIGBAZAAR

A REPORT ONMERCHANDISINGPHILOSOPHY


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TABLE OF CONTENTS

SL

NO.

PARTICULARS PAGE NO.

1 INTRODUCTION 3

2 COMPANY PROFILE 4

3 STRATEGIES INVOLVED 6

4 THEORITICAL BACKGROUND 10

5 RESEARCH METHODOLOGY 12

6 FINDINGS & OBSERVATIONS 13

7 RECOMMENDATIONS 14

8 BIBLIOGRAPHY 16

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INTRODUCTION:

Retailing involves all activities incidental to selling to ultimate consumer for their personnel

family and household use. It does this by organizing their availability on a relatively large scale

and supplying them to a customer on a relatively small scale. Retailer is any person/organizationinstrumental in reaching the goods or merchandise or services to the end users. Retailer is a must

and cannot be eliminated.

The Indian retailing industry is becoming intensely competitive, as more and more payers are

Vying for the same set of customers. The major retail players are Pantaloon Retail, Shoppers

Stop, Reliance etc.

Retailing is one of the biggest sectors and it is witnessing revolution in India. The new entrant in

retailing in India signifies the beginning of retail revolution. India's retail market is expected to

grow tremendously in next few years. According to AT Kearney, the Windows of Opportunityshows that Retailing in India was at opening stage in 1995 and now it is in peaking stage in

2006. India's retail market is expected to grow tremendously in next few years. India shows

US$330 billion retail market that is expected to grow 10% a year, with modern retailing just

beginning. India ranks first in 2005. In fact, in 2005 and 2006, India is the most compelling

opportunity for retailers, because now India is in peaking stage.

The trends that are driving the growth of the retail sector in India are

Low share of organized retailing

Falling real estate prices

Increase in disposable income and customer aspiration

Increase in expenditure for luxury items (CHART)

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COMPANY PROFILE

BIG BAZAAR

Pantaloon Retail (India) Limited, is Indias leading

retailer that operates multiple retail formats in both

the value and lifestyle segment of the Indian

consumer market. Headquartered in Mumbai

(Bombay), the company operates over 7 millions

square feet of retail space, has over 1000 storesacross 53 cities in India and employs over 25,000

people.

The companys leading formats include Pantaloons,

a chain of fashion outlets, Big Bazaar, a uniquely

Indian Hypermarket chain, Food Bazaar, a

supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern

retail like choice, convenience and quality and Central, a chain of seamless destination malls.

Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion

Station, all, Top 10, bazaar and Star and Sitara. The company also operates an online portal,

futurebazaar.com.

Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big

Bazaar scores over other stores is its value for money proposition for the Indian customers.

At Big Bazaar, you will definitely get the best products at the best prices - thats what they

guarantee. With the ever increasing array of private labels, it has opened the doors into the

world of fashion and general merchandise including Home furnishings, utensils, crockery,

cutlery, sports goods and much more at prices that will surprise you. And this is just the

beginning. Big Bazaar plans to add much more to complete your shopping experience.

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FUTURE GROUP:

Future group is one of the countrys leading business groups present in retail, asset management,consumer finance, insurance, retail media, retail spaces and logistics. The groups flagship

company, pantaloon Retail (India) Limited operates over 7 million square feet of retail space,

has over 1000 stores of its leading retail formats include, Pantaloon, Big Bazaar, Central, Food

Bazaar, Home Town, Ozone, Depot, future Money and online retail format, futurebazaar.com.

Future group includes, Future Capital Holding, Future Generally India Indus league clothing and

Galaxy Entertainment that manages sports Bar, Brew Bar and Bowling Co. Future Capital

Holding, the group s financial arm, focuses on asset management and consumer credit. It

manages assets worth over $1 billion that are being invested in developing retail real estate and

consumer-related brands and hotels.

The groups joint venture partners include Italian insurance major, generally. French retailer

ETAM group. Us-based stationery products retailers, Staples Inc. and UK-based Lee Cooper and

India-based Talwalkars, Blue Foods and Liberty Shoes.

Future Groups vision is to, deliver Everything, Everywhere, Every time to every Indian

consumer in the most profitable manner. The group considers as a core value and its corporate

credo is- Rewrite rules, Retain values.

OBJECTIVE

To perform a Management Thesis there must be certain objectives in front of the student,

which will show a specific way to work on Management Thesis. In reality objectives is nothing

but a part of future planning and effective planning is half work done, when we see objectives

for working on Management Thesis we can effectively utilize our strength, time and tem

management.

For the betterment of Management Thesis I also set some objectives in front of me, this

proved very helpful in Management Thesis. I have performed work according these objectives.

The objectives, which we have selected, are as bellow.

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1. To identify and understand the significance of retailing in the current business

environment

2. To develop guidelines to build a retailing business

3. To identify the competition in the market and develop strategies for retailing business

accordingly

4. To identify significant characteristics of the end consumer, understand its significance for

the retailing business and develop strategies accordingly

5. To identify the paradigm shifts in retailing business with increasing scope of technology /

e-business and develop strategies accordingly

6. To know the growth of retail industry with respect to big bazaar.

7. To know the factors affecting for retail industry.

8. To find the factors which are behind the change of Indian Retailing Industry?

9. To understand the benefits to customers, manufactures, wholesalers, and the economy

from Retail sector.

10. To know about Big Bazaar.

11. To know about its competitors.

12. To know about its customers

13. To know about its Promoters & Organizational structure.

14. To know about its strengths, weaknesses, opportunities & threats.

15. To earn practical knowledge.

16. To analyze problems which I am facing while working on field.

17. To know about marketing strategies.

18. Last but not the least to know about retail business

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Analysis

India is standing in the threshold of a retail revolution. The Indian consumer class

consists of a 300 million strong bourgeoning middle-class, expected to grow to 600 million by

2010. Overall economic growth and increasing disposable incomes have boosted double-digit

growth in consumer spending, enabling retail sales o grow by 50-100% in 2006.

According to the India Retail Report 2007, total private consumption reached INR 20,000 billion

at current prices in 2006. The share of organized retail stood at 4.6 per cent of the total Indian

Retail Value of INR 12,000 billion ($270 billion). However, the organized sector is expected to

grow at 35-40% in the next few years as compared to overall retail growth of 7-8%. The

potential for introducing international brands, ability to make huge capital investment and ease

of setting shop in India is luring foreign players to the industry. Thus, the retail sector will

experience an influx of international retail models and quality outlets in the coming few years.

Description of the concept

Manufacturers can look at the following alternatives to increase sales volume:

1) Sales promotion and advertising in malls

Most supermarkets and hypermarkets promote in-house offers to attract customers. They also

spend a lot on visual display of promotions. These costs can be shared by the company, thus

increasing their stake in the sales of the mall.

a) Retail outlets will be supportive of sales promotion and advertising by companies inside malls

for two reasons:

- it increases sales of the entire category as such

- it reduces burden on malls to attract/educate consumers towards particular products.

For the FMCG companies, return on advertising in terms of increased sales (or market share)

will be more pronounced due to point-of-purchase promotion.

b) Manufacturers can share costs of advertising and make sections of the store more attractive in

return for slightly lower margins to the retailers. They can set up small kiosks or shelves to

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display their own products. This involvement of the company in the operation of the mall will

also help build a strategic relationship between the two.

2) Use malls to target niche segments

Malls and supermarkets typically attract the middle and upper-middle class consumers

who have considerable spending power as well as brand awareness. Thus manufacturers can use

this channel effectively to launch specific variants of existing products or niche products for

which they are able to Concept Paper Indian Institute of Management Ahmadabad attract a

premium from such consumers. These products should be launched exclusively in the malls and

not through Kirana stores. The presence of a larger product range will increase the attractiveness

of shopping at a mall for the consumer, making it a win-win situation for both.

Benefits to customers

Retailers act as a buying agent for consumers. They perform various business activities that

increase the value of the goods and the service they sell to the end users. As buying agents a

retailer performs various activities to satisfy the end consumers. These activities include

Breaking bulk

o Providing assortment

o Holding inventory

o Providing after sales services

o Providing information

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ENVIRONMENTAL SCANNING FOR BIG BAZAAR

INTERNAL SCANNING

The SWOT analysis of Big Bazaar is as follows:

Strengths:

The strengths of Big Bazaar are it is leading and growing at the faster pace.

It has many outlets all over India. It has a good customer base.

They launched Big-Bazaar a hypermarket with over 1, 70,000 products as the first

offering in value retailing segment. Products are cheaper than the market price by as

much as 5 to 60%.

Apparels are cheaper by 25 to 60% while the price difference on the other products

varies between 5 to 20%.

The Big-Bazaar has been positioned to the customer as a place where the customer can

shop for each & everything for which if goes to a market.

Weakness:

Big Bazaar has not yet trapped the whole market.

Facing problems due to political environment

Opportunities

Huge untapped market

Threats

Competition from organized retail players which are in market and emerging like

Reliance, shoppers stop, Wal-Mart

Competition from local retailers.

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EXTERNAL ENVIRONMENTAL SCANNING

Analysis of political and legal factors:

In India there is a political triangle this consist of the municipal corporation which

belongs to Indira congress, the other is MLA which belongs to Shivsena and BJP and MP which

belongs to the national congress. The congress political people are having contacts with common

people and not much concerned with merchants but contradictory to this that the BJP and

Shivsena they are having more concern about merchants of the city. As Municipal Corporation is

in the hands of congress party and they are ready to have big bazaar in India that is the reason

they are ready to provide some kind of perks to big bazaar they are as follows:

Subsidy from octroi, different taxes like land tax and water tax

Help in taking over properties and real estate

Some concessions from labor laws

Socio-cultural factors:

Now a days in India also proportion of working womens is increasing and the literacy

rate has also increased this will lead into increase in standard of living of people. As people are

aware about western culture through various Medias they are very much eager to follow the

western culture. People from talukas are coming to India as it is a district place for shopping,

taking education, for working etc. this also creates demand. There is a majority of middleclass

people in India and it is a most populated district consisting 13 talukas. The major communities

in India city are Hindus, Muslims, Christians, Jain, Sindhi and Punjabi.

Economic environment:

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As this district is having 13 talukas and most of them are having good agricultural base

which ultimately leads to higher seasonal income. Another one is that most of the people who

are residing in India they are engaged in various jobs and businesses they is the part of regular

income group. So this will lead to higher purchasing power and a huge potential market. One

more advantage to big bazaar coming to India is availability of cheap labor.

From the external analysis we came to know that the people residing the India city are in

the favor of Big Bazaar coming to India. The location preferred by them is Savedi as it is highly

developed and accessible area to all the people.

STRATEGIC FORMULATION FOR BIG BAZAAR:

Big Bazaar will form some strategies for the long-term goals. First of all it will find out

what are the opportunities present in the market so that they can grab it so as to expand their

business, trap a particular segment of people, and establish a good client base and to generate

good revenues. They will also keep in mind the threats that they have from their competitors and

also form the small grocery shops. They will find out some strategies to overcome the threat and

to sustain in the market for a longer period of time. They will also try to utilize their strengths

and overcome the weaknesses.

THE STRATEGY:-

Savings is the key to the Indian middle class consumer.

The Concept of Big Bazaar as the store offers large mix of products at a discounted price,

the name Big Bazaar was finalized.

The idea was to recreate a complete bazaar, with a large product offering & offer a good

depth & width in terms of range.

Price was the basic value proposition at Big Bazaar

Big Bazaar outlets sold a variety of products at prices; which were 5 to 70% lower than

the Market Price.

The catch line Is se sasta aur kahi nahi emphasized the value of the Mall.

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SELECTING THE LOCATION:-

The main consideration while selecting the location was whether the low margin on the

products would allow the company to sustain growth.

The group conducted a study & it was found that for a store like Big Bazaar, a large

catchment area is needed.

THE MERCHANDISE MIX:-

Large Product mix offered by Big Bazaar was the main attachment.

The World stocked about 105000 items in over 18 product Categories.

In first year apparel accounted for 70% of the off take & the price was largely

responsible for the success.

Price range starts from Rs 49 to Rs 250,000 according to the needs of customers.

Buying Process for most of the categories at big Bazaar is largely price driven.

STORES DESIGN:-

It tells the customer what the store is all about. It creates an image in the minds of

Customer .It is the starting point of all marketing efforts. For a customer store needs to be

easy to navigate, it must appeal to his sensory Perceptions & must create a sense of

belonging sense of relationship. The environment created in retail store is a combination

of exterior look, store interiors, the atmosphere in the store & events promotions &

themes which form a part of retail store.

EXTERIOR DESIGN:-

It is a function of location of the store site & other facilities like parking & ease of access. Store

fronts is an important factor , it should be inviting & it should have good lighting & other

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facilities in total it should entice potential customers into store. The world is ideally located at

Patia Square 4km away from Jaydev Vihar.

It is easily accessible either from Jaydev Vihar.

It has got a spacious parking lot also.

It has got a massive appeal, exterior look justifies its name Big Bazaar

INTERIOR STORE DESIGN:-

It is a function of aesthetics within the store, the merchandise sold within the space used & the

overall layout of the store.

Space planning: the amount of space allocate within the store.

Location of Various department.

Creation of planogram.

Relationship of space of profitability.

Big Bazaar is the three storied building, the ground floor with food & beverages. The first floor

is completely apparels & home & personal care. The Second floor is completely with jewellery

& decoration materials & the third floor is all about shoes, casuals, child care & toys.

PRODUCT MIX:-

APPARELS FOOD

PRODUCTS

CHILL

STATION

HOME

&

PERSONAL

FASHION

&

JEWELLERY

CHILD

CARE

&

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CAR

E

TOY

S

FormalWear

Staples

Softdrinks

Shampoos

Footwear

Kidswear

DenimT-shirts

Readyto eat

PackagedJuices

DetergentSoap

BeautyCare

ToyBazaar

Fabrics&Cut

piece

Readytocook

Milkitems

Liquidwash

Bindre Stationery

Accessories

Spices

Frozenfoods

Cream

ChildCare

Undergarment

ImportedBazaar

Ice-cream

Deodorants

Nightwear

Tea &Coffee

Utensils

Partywear

Plastics

Sarees Crock ery

PROMOTION:-

The main idea behind every effort is to make a bulk purchase.

Saal ke sabse sasta Teen Din is the slogan of BIG BAZAAR.

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Advertisement (Print AD,TV AD,Radio AD)

Point of purchase Promotion.

FINDINGSAND

OBSERVATIONS:

1. We found out that most of the people were affected and attracted with offers and

schemes.2. It has been found out that most of the people in delhi city visit malls for refreshment and

enjoy.3. Consumers choose malls to stop because they all want variety and brands and shopping

at malls according to the consumers is economic as compared to shopping at other places.1

4. Most of the people are brand loyal and most of them stack to the brand they like.5. Advertising plays a very crucial part in the consumer decision making process and Big

Bazaar is Known for Advertisement.6. Most of the respondents take on the spot decision of buying different products because of

the various attractive product displays and pretty combination which the store tries on the

mannequins is mostly dependent by the customers, show that most of the consumers areattracted towards different fancy displays.

7. For most of the respondents quality plays a very important role because most of therespondents said that they want quality products and thats also one reason for most ofthe respondents sticking to particular brands.

1

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8. We can also say that location, variety convenience and economical products are not theonly things which attract the customer but there are some other factors which play amajor role in attracting the customers as mentioned.

9. BIG BAZAAR FOR THE GREAT INDIAN MIDDLE CLASS

10. It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class. It

was started as a hypermarket format in Mumbai with approx. 50,000 sqft of space. Its values and

missions are to be the best in Value Retailing by providing the cheapest prices and hence go the

tag-line

Is se sasta aur achcha kahin nahin

11. It sells variety of merchandise at affordable rates, the prices of which it claims are lowest

in the city but the level of services offered is also very low.

12. The following graph shows the retail life cycle and we can say that Big Bazaar is currently

at the Growth Stage.

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POSITIONING STRATEGY

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Introduction

Growt

h

Maturity

Decline

Time

Cash flow

Flows


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RECOMMENDATIONS:

Customers are becoming price conscious they are having many options in the market considering

the consumer buying behavior the malls and other shopping centers should take certain definite

steps like retaining customers by giving those schemes discounts and better service.

So Big Bazaar should opt for the following steps:-

Should follow more of High low pricing rather than Everyday low pricing.

Should go for weekly coupon system as it holds more of the loyal customers

As it is near fostiima business school so it must give more emphasis on students choice

products like apparels, fooding, pillow, bed sheets etc.

The trend today has been to combine shopping with various offerings for ex in a mall apart

from shopping a customer enjoys food courts and many others services which todays modem

malls provide.

Shopping has made people spend not just on their requirements of goods to be bought but to

look on the totality of the experience have a quick bite at Mc Donalds in the mall are let the kids

play fun games while one is busy shopping or even taking the family out to movie and having adinner ALL UNDER ONE ROOF

The benefits of this totality offering are that many vendors get to have people patronized their

offerings while the shopping experience i.e. being enhanced more business is got by the stores

at the venue. Shopping is no longer a onetime agenda for people. Various options are opening

up.

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BIBLIOGRAPHY

BOOKS AND MAGAZINES:

Consumer Behavior- Fourth edition by David L. London &

Albert J. Delia Bitta.

Research methodology (Methods & Technology)

Revised Second edition by C.R.Kothari

Retail Management ( A Strategic Approach) - Barry Berman &

Joel R Evans

NET RESOURCES:

www.google.com

www.wikipedia.com www.answers.com

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Big Bazar Final Report