Marketing Strategy of Big Bazar

8/4/2019 Marketing Strategy of Big Bazar

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Submitted to: Dr.Devendra Pathak

Director Academics,

Delhi Business School, New Delhi.

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CONSUMER BEHAVIOUR

A report submitted to Delhi Business School, New Delhi

as a part fulfillment of Full time industry integrated

MBA + Post Graduate Program in Entrepreneurship &

Business.

Delhi Business SchoolB-II/58, M.C.I.E., Mathura Road, New Delhi

Website : www.dbs.edu.in

Submitted By:Name of Student: SonamSrivastava

Roll No. : 86

Batch:Spring batch(07-09)

University: Delhi BusinessSchool(PTU)


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ACKNOWLEDGEMENT

I would like to acknowledge and extend my heartfeltgratitude to the following persons who have made thecompletionof this possible project:

Our Dean,DR.Devendra Pathak,for his encouragementandsupport.

Dr.Ravi Prakash,my project mentor , for his

understanding and assistance, assisting in thecollection of the topics for theproject.

Ms.Sweta Seth,(MIS faculty), for the constantreminders and much needed motivation and for thehelp and inspiration she extended.

All the faculty of MBA (Delhi business school) was very

supportive and helped me inanyway.The staff at BigBazaar turned to be very helpful inproviding me the informations about the company and itoperations.

And to God , who made all things possible.

Sonam Srivastava

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DECLARATION BY STUDENT

I hereby declare that the mentioned information in theproject is correct up to my knowledge and I bear theresponsibility for the correctness of the mentionedparticulars.

SONAM SRIVASTAVA

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TABLE OF CONTENTS

Contents Pages

1. Introduction 8

2. Objective of Research Study 102.1. Market analysis .10

3. Research Methodology 11

3.1. Source of data 11

3.1. a. Survey method 113.1. b. Cross sectional survey.11

3.2. Sample size .113.3. Time taken ..113.4. Tools and Techniques of analysis.12

4. Literature Studies ....154.1. Company profile 154.2. Diagram .174.3. About us 18

4.3. a. Group vision .184.3. b. Group mission .184.3. c. Core values 19

4.4. Introduction to big bazaar...........204.5. Big bazaar promises 21

4.6. Portfolio management 24

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4.7. Product line .264.8. Marketing strategy .27

4.8. a. Segmentation .274.8. b. Targeting ..284.8. c. Positioning ...294.8. d. Marketing mix .314.8. e. Retail mix ..354.8. f. Promotion mix 36

4.9. Distribution of revenue earner .44

4.10. Competitors .464.11. Major problems ..594.12. Future prospects 51

5. Work assigned by the company .54

5.1. Business objective 545.2. Operating the scheme 545.3. Working .55

5.3. 1. To know consumerBehavior..55

5.3. 2. To get the right positioningDone..58

5.3. 3. To maintain stock on floor..595.3. 4. Update the prices . .59

5.3. 5. Discount criterion . .595.3. 6. Inventory control 595.3. 7. Work on barcode tender ..61

6. Survey62

6.1. Survey analysis626.2. Trend analysis..68

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6.3. Conjoint analysis.69

7. General survey and consumer behavior

analysis for pack of two 798. Conclusion ..92

9. Bibliography ..93 10. Annexure . 94

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1 . INTRODUCTION.

RETAIL INDUSTRYIn the Indian retailing industry, food is the most dominatingsector and is growing at a rate of 9% annually. India retailindustry is progressing well and for this to continueretailers as well as the Indian government will have tomake a combined effort. The branded food industry is

trying to enter the India retail industry and convert Indianconsumers to branded food. Since at present 60% of theIndian grocery basket consists of non- branded items.India retail industry is expanding itself most aggressively;as a result a great demand for real estate is being created.Indian retailers preferred means of expansion is to expandto other regions and to increase the number of their outletsin a city. It is expected that by 2010, India may have 600

new shopping centers.The Indian retail market, which is the fifth largest retaildestination globally, according to industry estimates isestimated to grow from the US$ 330 billion in 2007 to US$427 billion by 2010 and US$ 637 billion by 2015.Simultaneously, modern retail is likely to increase its sharein the total retail market to 22 per cent by 2010.

Continuing the robust growth of the organized retail inIndia, according to the Credit Rating and InformationServices of India, the industry raked in US$ 25.44 billionturnover in 2007-08 as against US$ 16.99 billion in 2006-07, a whopping growth rate of 49.73 per cent.

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India retail industry is the largest industry in India, with anemployment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected torise 25% yearly being driven by strong income growth,changing lifestyles, and favorable demographic patterns.

"The story is not about us, but this story is about thepeople who visit our stores. This is a proud moment for India."

One of the biggest retail here in India we know is KishoreBiyanis big bazaar. The company ended 2007-08 withRs5048crore in revenue. Biyani's and Big Bazaar's, marchcomes at a time when several new retailers are slowingexpansion, reducing the number of outlets, effectinglayoffs, even exiting the business.

By 2011, he claims, there will be 300 Big Bazaars, andPantaloon Retail (India) Ltd, his flagship, will have revenueof Rs13000crore.

Thus here we will know about the company profile,operations and also about the consumer behavior towardsthe schemes, discount, etc which are offered by the storeto facilitate customers.

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2 . OBJECTIVE OF RESEARCH STUDY

2 .1. MARKET ANALYSIS

The research objectives of this project are:-

a. Marketing activities and operational activities are alwaysdriven with an aim of getting sale increased with innovate ideas.Offers are designed in such a manner that customers are madeto go and experience the shopping.Marketing also gives some offer to increase the bill size, takingin consideration the on going fashion in vogue.

b. Marketing Strategies targeting the customer:Advertising Strategy Understanding the media consumptionhabits of the customer.

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3 . RESEARCH METHODOLOGY

3 .1. SOURCE OF DATA

a. SURVEY METHOD

Data are usually collected through the use of questionnaires. The data is collected by mean of simplesurvey done in the retail store of the customers.

b. CROSS-SECTIONAL SURVEYS

Cross-sectional surveys are used to gather information on apopulation at a single point in time.

The customers were surveyed to find out their consumptionbehavior for the products in various schemes.

A different cross-sectional survey questionnaire might try todetermine the relationship between two factors, likereligiousness of parents and views on Internet filtering.

3.2. SAMPLE SIZE

A sample size of 90 was considered in this project. That is, atotal number of respondents were 90 for survey.

3 .3. TIME TAKEN

The time of research was 1 month and surveys of somepeople were done daily. The research was based onthe change in consumption of customers for theproducts in scheme.

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3 .4. TOOLS AND TECHNIQUES OF ANALYSIS

a. PERSONAL INTERVIEWPersonal interviews are highly susceptible to inadvertentsignaling to the respondent. The cumulative effect of several facial expressions is likely to be felt. By the use of this method the facial expressions tell about how acustomer feels about the product, and his knowledgeabout the product in the scheme.This will let us know following:-

1. The reason could be known that why a product isnot liked and what are shortcomings in theproduct?

2. The preference for the product of the customer?3. Who are the frequent customers?

b. PROJECTIVE TECHNIQUES Projective techniques are used when a consumer may feelembarrassed to admit to certain opinions, feelings, or preferences. It has been found that in such cases, peoplewill tend to respond more openly about someone else.Thus, we may ask them to explain reasons why others notbuying the product, or why other customers are not willingto take advantage of the scheme, or what changes theywant should be there for their convenience.

c. OBSERVATION OF CONSUMER

Observation of customers is often a powerful tool. Lookingat how consumers select products may yield insights into

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how they make decisions and what they look for.Observing consumers, tells about:-

1. What is he looking in the product?2. Is he brand loyal?3. Is he more or less price sensitive?4. Is he more interested in packaging,

manufacturing, etc.5. Whether his taste has shifted?

Observation may help us determine how much timeconsumers spend comparing prices, or whether nutritionallabels are being consulted.

d. SCANNER DATA

Many consumers are members of supermarket clubs.They are provided with customer card which they have topresent this when they make purchases; consumers areoften eligible for considerable discounts on selectedproducts.

Nearly all retailers in the area usually cooperate. It is nowpossible to track what the consumer bought in all storesand to have a historical record.

The consumers shopping record is usually combinedwith:-

1. Demographic information (e.g., income, educationallevel of adults in the household, occupations of adults, ages of children, and whether the family ownsand rents).

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2. The consumption quantity could be know aboutthe product which is used in good quantity?

e. PHYSIOLOGICAL MEASURES

Physiological measures are occasionally used to examineconsumer response. It helps to know:-

Advertisers may want to measure a consumers level of arousal during various parts of an advertisement?

In retail stores paging is done at a interval of time of schemes and discounts so that people are made awareand they can be provoked to buy.

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4. LITERATURE STUDIES4.1. COMPANY PROFILE

Pantaloon Retail (India) Limited, is Indias leading retailer thatoperates multiple retail formats in both the value and lifestylesegment of the Indian consumer market. Headquartered inMumbai (Bombay), the company operates over 10 million

square feet of retail space, has over 1000 stores across 61cities in India and employs over 30,000 people.

The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarketchain, Food Bazaar, a supermarket chain, blends the look,touch and feel of Indian bazaars with aspects of modern retaillike 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, m bazaars and Star and Sitara. The company alsooperates an online portal, futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited,operates Home Town, a large-format home solutions store,Collection i, selling home furniture products and E-Zone

focused on catering to the consumer electronics segment.Pantaloon Retail was recently awarded the InternationalRetailer of the Year 2007 by the US-based National RetailFederation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona.

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Pantaloon Retail is the flagship company of Future Group, abusiness group catering to the entire Indian consumptionspace.

Future Group is one of the countrys leading business groupspresent in retail, asset management, consumer finance,insurance, retail media, retail spaces and logistics. The groupsflagship company, Pantaloon Retail (India) Limited operatesover 10 million square feet of retail space, has over 1,000stores and employs over 30,000 people.

Future Group is present in 61 cities and 65 rural locations inIndia. Some of its leading retail formats include, Pantaloons, BigBazaar, Central, Food Bazaar, Home Town, eZone, Depot,Future Money and online retail format, futurebazaar.com.

Future Group companies includes, Future Capital Holdings,Future Generally India Indus League Clothing and Galaxy

Entertainment that manages Sports Bar, Brew Bar and BowlingCo. Future Capital Holdings, the groups financial arm, focuseson asset management and consumer credit. It manages assetsworth over $1 billion that are being invested in developing retailreal estate and consumer-related brands and hotels.

The groups joint venture partners include Italian insurancemajor, Generali, French retailer ETAM group, US-based

stationary products retailer, Staples Inc and UK-based LeeCooper and India-based Talwalkars, Blue Foods and LibertyShoes.

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4.2. PANTALOON RETAIL INDIA LTD.

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CENTRA

L

PANTALOON

BIG

BAZAAR

FOODBAZAAR

FASHION

STATION

E-ZONE

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4.3. ABOUT US

4.3. a. GROUP VISION:

Future Group shall deliver Everything, Everywhere,Every time for Every Indian Consumer in the mostprofitable manner.

4.3. b. GROUP MISSION:

We share the vision and belief that our customers andstakeholders shall be served only by creating andexecuting future scenarios in the consumption spaceleading to economic development.

We will be the trendsetters in evolving delivery formats,creating retail realty, making consumption affordable for all customer segments for classes and for masses.

We shall infuse Indian brands with confidence andrenewed ambition.

We shall be efficient, cost- conscious and committed toquality in whatever we do.

We shall ensure that our positive attitude, sincerity,humility and united determination shall be the drivingforce to make us successful.

4.3. c. CORE VALUES:

Indianness: confidence in ourselves.

Leadership: to be a leader, both in thought and business.

Respect & Humility: to respect every individual and behumble in our conduct.

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Introspection: leading to purposeful thinking.

Openness: to be open and receptive to new ideas,knowledge and information.

Valuing and Nurturing Relationships: to build long termrelationships.

Simplicity & Positivity: Simplicity and positivity in our thought, business and action.

Adaptability: to be flexible and adaptable, to meetchallenges.

Flow: to respect and understand the universal laws of nature.

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4.4. INTRODUCTION TO BIG BAZAAR

a. It is a chain of shopping malls in India currently with 31 outletowned by Kishore Biyanis Pantaloon Group.

b. Big bazaar is not just another hypermarket, but also providesthe best products at the best price.

c. It Reflect the look and feel of Indian bazaars at their modernoutlets. All over India, Big Bazaar attracts a few thousandcustomers on any regular day.

d. Big Bazaar is a chain of department stores in India ,currently with 92 stores. It is owned by the Pantaloon Retail India Ltd , Future Group. It has considerable success in manyIndian cities and small towns.

e. A department store is a retail establishment whichspecializes in selling a wide range of products without a single

predominant merchandise line . Department stores usuallysells products including apparel , furniture , appliances ,electronics , and additionally select other lines of products suchas paint , hardware , toiletries, cosmetics , photographicequipment, jewelery , toys , and sporting goods .

The idea was pioneered by entrepreneur Kishore Biyani, theCEO of Future Group. Currently Big Bazaar stores are locatedonly in India. It is the biggest and the fastest growing chain of department store and aims to have 150 outlets by June 2009and 350 stores by the end of year 2010.

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http://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pantaloon_Grouphttp://en.wikipedia.org/wiki/Pantaloon_Grouphttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Merchandise#Product_linehttp://en.wikipedia.org/wiki/Apparelhttp://en.wikipedia.org/wiki/Furniturehttp://en.wikipedia.org/wiki/Appliancehttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Painthttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Cosmeticshttp://en.wikipedia.org/wiki/Jeweleryhttp://en.wikipedia.org/wiki/Toyhttp://en.wikipedia.org/wiki/Sporting_goodshttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pantaloon_Grouphttp://en.wikipedia.org/wiki/Pantaloon_Grouphttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Merchandise#Product_linehttp://en.wikipedia.org/wiki/Apparelhttp://en.wikipedia.org/wiki/Furniturehttp://en.wikipedia.org/wiki/Appliancehttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Painthttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Cosmeticshttp://en.wikipedia.org/wiki/Jeweleryhttp://en.wikipedia.org/wiki/Toyhttp://en.wikipedia.org/wiki/Sporting_goods


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4 .5. The Big Bazaar promise

a. MANUFACTURERS WARRANTIES ON ALL

PRODUCTS:Big Bazaar promises to sell only the original products from

the authorized dealers; so that all applicable productscarry the original manufacturers warranty. To serviceany product purchased at Big Bazaar, customer canvisit the authorized service centre of the manufacturer.The invoice accompanying the product is the warranty

document.b. GUARANTEED DELIVERY:

Big Bazaar guarantees to deliver the exact product that hasselected, without defects. In case of receiving a differentproduct, or if the product is damaged in transit, the customer should contact it within the stipulated time period and BigBazaar will ensure that it is replaced or refunded.

c. SECURE PAYMENT:

It commits to ensure that no payment misuse happens, sowe work with banks and payment gateways to ensure thatyour information is protected. Payments are protectedboth by it and by the policies of customers bank, and thechances of fraud in these channels are actually very low.

Big Bazaar openly publishes its office addresses and ispart of Indias largest retail company with a presence allover India so you know how to contact us in person, if required.

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d. OUR SIMPLE 15-DAY RETURN POLICY:

If customer has purchased something at Future Bazaar and theproduct did not meet its expectations or does not fit to hisneeds, then it can return the product to us; no questions asked,as long as it is in its original packaging and accompanied by itsinvoice. We will even make the return process simple for you

just contact our customer support and well arrange to pick upthe product from your home. Alternately, you can drop it off atthe nearest Big Bazaar.

e. PROMPT CUSTOMER SUPPORT:

Our customer support is manned by dedicated call centrepersonnel, who can take decisions and resolve your problems.They are eager to solve your problems and are aware of theprocesses and means to handle them. In case they cannot

solve the problem at their end, they will trigger the requiredaction on your behalf or advise you the best possible method toa successful fulfillment of all your queries/issues. Be assuredthat when you call us, your call is being taken seriously .

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BIG BAZAAR PROMISES-------

15 DAYSRETURNPOLICY

SECUREPAYMENT

MANUFACT-URERS

WARRANTY

PROMPTCUSTOME-

R SUPPORT

GUARANTE-ED

DILIVERY

BIGBAZAAR

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4.6. PORTFOLIO MANAGEMENT

The Future Group has built a strong portfolio of some of the fastest growing consumer brands in India. Thisactivity is led through Future Brands India Limited, aspecialized subsidiary company that was set up tocreate and build powerful brands that address theaspirations of the new Indian consumer.

Some of the key brands in this portfolio include, John

Miller, Lombard, Bare, DJ&C, Buffalo and RIG in thefashion and apparel space. Dream line, present in thehome segment, offers a wide range of products inkitchenware, bed & bath linen, and Home Dcor categories.

In the food and home care segment brands include TastyTreat, Premium Harvest, Fresh & Pure, Care Mate andClean Mate.

In consumer durables and electronics space, thegroups brands include Koryo and Sensei.

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S.M

ADDITIONALSTORE

MANAGER

DEPARTMENTMANAGER

SUB- DEPARTMENT MANAGER

TEAM LEADER

TEAM MEMBER

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4 .7. PRODUCT LINE

Here, one finds over 170,000 products under one roof thatcater to every need of a family, making Big Bazaar Indias favorite shopping destination. Where BigBazaar scores over other stores is its value for moneyproposition for the Indian customers. Big Bazaar, onefinds a huge variety of products to select from with agood price and quality. With the ever increasing arrayof private labels, it has opened the doors into the worldof fashion and general merchandise including homefurnishings, utensils, crockery, cutlery, sports goods andmuch more at surprisingly low prices.In recent years, Big Bazaar has adopted value pricingin which they win loyal customers by charging a fairlylow price for a high quality offering. However,consistent low price for the products is not only theuniversally desired characteristic.

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4.8. MARKETING STRATEGY

PROCESS FOLLOWED

Segmentation, targeting, and positioning together

comprise a three stage process. Wea. Determine which kinds of customers exist,

b. Select which ones we are best off trying to serve,

c. Implement our segmentation by optimizing our products/services for that segment and communicatingthat we have made the choice to distinguish ourselves

that way.

4.8. a. SEGMENTATION:

Segmentation involves finding out what kinds of consumers with different needs exist. In the automarket, for example, some consumers demand speedand performance, while others are much more

concerned about roominess and safety. In general, itholds true that You cant be all things to all people,and experience has demonstrated that firms thatspecialize in meeting the needs of one group of consumers over another tend to be more profitable.

Several different kinds of variables can be used for segmentation:-

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1. Demographic variables essentially refer to personal statisticssuch as income, gender, education, location (rural vs. urban,East vs. West), ethnicity, and family size. Campbells soup, for instance, has found that Western U.S. consumers on theaverage prefer spicier soupsthus, you get a different productin the same cans at the East and West coasts. Facing flatsales of guns in the traditional male dominated market, amanufacturer came out with the Lady Remmington, a morecompact, handier gun more attractive to women. Taking this astep farther, it is also possible to segment on lifestyle andvalues. 2. Some consumers want to be seen as similar to others, whilea different segment wants to stand apart from the crowd. 3 . Another basis for segmentation is behavior. Someconsumers are brand loyali.e. they tend to stick with their preferred brands even when a competing one is on sale. Someconsumers are heavy users while others are light users. For example, research conducted by the wine industry shows thatsome 80% of the product is consumed by 20% of theconsumerspresumably a rather intoxicated group. 4. One can also segment on benefits sought, essentiallybypassing demographic explanatory variables. Someconsumers, for example, like scented soap (a segment likely tobe attracted to brands such as Irish Spring), while others prefer the clean feeling of unscented soap (the Ivory segment).Some consumers use toothpaste primarily to promote oralhealth, while another segment is more interested in breathefreshening.

4.8. b. TARGETING:

1. In the next step, we decide to target one or more segments.Our choice should generally depend on several factors:-

First

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How well are existing segments served by other manufacturers? It will be more difficult to appeal to a segmentthat is already well served than to one whose needs are notcurrently being served well.

Secondly

How large is the segment, and how can we expect it to grow?

Thirdly

Do we have strengths as a company that will help us appealparticularly to one group of consumers?

2. Big Bazaar targets higher and upper middle classcustomers.

3. The large and growing young working population is apreferred customer segment.

4. Big Bazaar specifically targets working women andhome makers who are the primary decision makers.It is part of Big Bazaars new Guerrilla MarketingStrategy.

5. Guerrilla force is divided into small groups that

selectively attack the target at its weak points. Guerillamarketing is just one of the strategies and surely onecan learn a lot from the ongoing battle, especiallypeople interested in marketing/marketing techniques.

4.8.c. POSITIONING:

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Positioning involves implementing our targeting. For example,Apple Computer has chosen to position itself as a maker of user-friendly computers .

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4.8. d. MARKETING MIX

Main Aspects of Marketing MiX

The easiest way to understand the main aspects of marketing is through its more famous synonym of "4Ps of Marketing". The classification of four Ps of marketingincludes marketing strategies of product, price, placementand promotion. The following diagram is helpful indetermining the main ingredients of the four Ps in amarketing mix.

PRODUCT:

In simpler terms, product includes all features andcombination of goods and related services that a companyoffers to its customers.

Product is the most important aspect of marketing mix for two main reasons. First, for manufacturers, products arethe market expression of the company's productivecapabilities and determine its ability to link with

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consumers. So product policy and strategy are of primeimportance to an enterprise, and product decisions dictatethe scope and direction of company activity. Moreover, themarket indicators such as profits, sales, image, marketshare, reputation and stature are also dependent on them.Secondly, it is imperative to realize that the product of anyorganization is both a component and a determinant of themarketing mix as it has a great influence on the other elements of the mix: advertising, personal selling,channels of distribution, physical distribution and pricing.So without proper product policy, a company can notpursue for further elements of marketing mix.

PRICING:

Pricing is basically setting a specific price for a product or service offered. In a simplistic to the concept of price asthe amount of money that customers have to pay to obtainthe product. Setting a price is not something simple.Normally it has been taken as a general law that a low

price will attract more customers. It is not a valid argumentas customers do not respond to price alone; they respondto value so a lower price does not necessarily meanexpanded sales if the product is not fulfilling theexpectation of the customers

Generally pricing strategy under marketing mix analysis isdivided into two parts: price determination and priceadministration (ibid).

Price determination is referred to as the processes andactivities employed to arrive at a price for a productincluding consideration of relative prices of products withinthe same line, and differences in price for similar productsof differing grades and qualities.

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Price administration is referred to as the activities involvedin fitting basic prices to particular sales situations such asgeographic locale, functions performed by customers,position of distribution channel members, or special salessituations.

PLACEMENT:

Placement under marketing mix involves all companyactivities that make the product available to the targetedcustomer while planning placement strategy under marketing mix analysis, companies consider six different

channel decisions including choosing between directaccess to customers or involving middlemen, choosingsingle or multiple channels of distributions, the length of the distribution channel, the types of intermediaries, thenumbers of distributors, and which intermediary to usebased on the quality and reputation .

PROMOTION:

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Promotional strategies include all means through which acompany communicates the benefits and values of itsproducts and persuades targeted customers to buy them .The best way to understand promotion is through theconcept of the marketing communication process.Promotion is the company strategy to cater for themarketing communication process that requires interactionbetween two or more people or groups, encompassingsenders, messages, media and receivers

Limitation of Marketing Mix Analysis (4Ps of Marketing)

Despite the fact that marketing mix analysis is used as asynonym for the 4Ps of Marketing, it is criticised on thepoint that it caters seller's view of market analysis notcustomers view. To tackle this criticism, attempted tomatch 4 Ps of marketing with 4 Cs of marketing to addressconsumer views:

Product Customer SolutionPrice Customer CostPlacement ConveniencePromotion Communication

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4.8. e. RETAIL MIX:

Merchandise assortment

The company was looking for a solution that would bringall of its businesses and processes together. After acomprehensive evaluation of different options andsoftware companies, the management at Pantaloondecided to go in for SAP.

Some of the qualities of SAP retail solutions are that itsupports product development, which includes ideation,trend analysis, and collaboration with partners in thesupply chain; sourcing and procurement, which involvesworking with manufacturers to fulfil orders according tostrategic merchandising plans and optimise cost, quality,and speedvariables that must be weighted differently as

business needs, buying plans, and market demandpatterns change; managing the supply chain, whichinvolves handling the logistics of moving finished goodsfrom the source into stores and overseeing global tradeand procurement requirements; selling goods across avariety of channels to customers, which requires marketingand brand management; managing mark-downs andcapturing customer reactions, analysing data, and using itto optimise the next phase of the design process.

2. Place

In the channels of distribution, the physical facilities pointof location.

3. Price

4. Visual merchandising

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Visual merchandising supports:-

a. sales

b. retail strategiesc. communicates with customers

d. communicates image

e. supports retailing trends.

Visual merchandising includes:-

1. Interior merchandising

Sufficient visual merchandizing within the store thatincluded danglers, signage, standees, distribution of pamphlets, which gave details of the offer.

Display, point of purchase, fixture, equipment andfurnishings store layout.

Product packaging and labels.

2. Exterior merchandising

TVC on popular entertainment channels like Star Plus,Sony, Set Max, and Star One.

Road shows carried out by the Big Bazaar staff withannouncements about the offer to make people aware.

Newspaper ads in almost all the local dailies like Sakal,The Times of India, on different days during the periodof the offer.

Store atmosphere.

4.8. f. RETAIL PROMOTION MIX

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1. ADVERTISING:

Advertising is recognized as an indispensable tool of promotion. It has acquired a lot of significance in thenational and international markets. With the advent of globalization and liberalization its imperativeness in theIndian retail sector has increased as a result of competitions, latest technologies, and the rapidly changingconsumerlifestyles.

a. Objectives of Advertising: The fundamental objective of advertising is to sellsomething a product, service, or an idea.

The Major Objectives of advertising are:1. To promote a new product.2. To warn the public against imitation of the retailersproduct.3. To manage competition in the market.

b. Benefits of Advertisements:

1. Advertisement helps in creating awareness among thecustomer about the existence, price, and availability of product.2. Increases the utility of existing products.3. It educates customer about new product and their diverse uses.

c. Types of advertising:

1. Informative Advertising:

Purchases of durable products are generally erratic and

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often too expensive to buy, so the retailer spends a hugeamount on informative advertising.

2. Corporate Advertising:

Its main motive is to build a corporate image. CorporateAdvertising builds up retailer image. It increases goodwilltowards the retail organization.

3. Financial Advertising:

It refers to advertisements by various financial institutions.Big Bazaar has also tied up with ICICI bank, which provideinformation about the investment opportunities and therisks and benefits.

4. Classified Advertising:

It refers to messages, which are placed under specificheadings and columns in various magazines andnewspapers.

2. PROMOTION:

Promotion can be loosely classified as "above the line "and "below the line" promotion. The promotional activitiescarried out through mass media like television, radio,newspaper etc. is above the line promotion. The terms'below-the-line' promotion or communications refers toforms of non-media communication, even non-mediaadvertising. Below-the-line promotions are becomingincreasingly important within the communications mix of many companies, not only those involved in fmcgproducts, but also for industrial goods.

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1. BELOW THE LINE SALES PROMOTION

Some of the examples of BTL (below the line) promotionsare by exhibitions, sponsorship activities, publicrelations and sales promotions like giving freebies withgoods, trade discounts given to dealers and customers,reduced price offers on products, giving coupons whichcan be redeemed later etc.

Below the line sales promotions are short-termincentives, largely aimed at consumers. With theincreasing pressure on the marketing team to achievecommunication objectives more efficiently in a limitedbudget, there has been a need to find out moreeffective and cost efficient ways to communicate withthe target markets. This has led to a shift from theregular media based advertising.

Methods of below the line sales promotion:-a. Price promotions

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Price promotions are also commonly known as" pricediscounting". These can be done in two ways:-

1. A discount to the normal selling price of a product, or more of the product at the normal price.

2. Price promotions however can also have a negativeeffect by spoiling the brand reputation or just atemporary salesboost (during the discounts).

b. CouponsCoupons are very versatile, way of offering a discount.Following are the examples of the use of coupons:--On a pack to encourage repeat purchase-In coupon books sent out in newspapers allowingcustomers to redeem the coupon at a retailer.-A cut-out coupon as part of an advert.-On the back of till receipts.

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The key objective with a coupon promotion is to maximizethe redemption rate this is the proportion of customers actually using the coupon. It must beensured when a company uses coupons that theretailers must hold sufficient stock to avoid customer disappointment. Use of coupon promotions is oftenbest for new products or perhaps to encourage sales of existing products that are slowing down.

c. Gift with purchase

The "gift with purchase" is a very common promotionaltechnique. In this the customer gets something extraalong with the normal good purchased.

d. Competitions and prizes

This is an important tool to increase brand awarenessamongst the target consumer. It can be used to boostup sales for temporary period and ensure usageamongst first time users.

e. Money refunds

Here, a customer receives a money refund after submitting a proof of purchase to the manufacturer.Customers often view these schemes with some

suspicion particularly if the method of obtaining arefund looks unusual or onerous.

f. Frequent user / loyalty incentives

Repeat purchases may be stimulated by frequent user incentives.

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g. Point-of-sale displaysA data collection system that electronically receives andstores bar code information derived from a salestransaction. This could the zip codes for library users,facilitating the library in determining geographic marketare that users reside in. Most of the big brands arefollowing the suit of BTL promotion because of risingprices of media based promotion, advertising clutter and increased impulse purchasing.

BTL promotions are gaining popularity among all bigcompanies nowadays considering their effectivenessbecause of the "individual customer promotion" at aprice, which is much lesser than the normal mediapromotions.

Low prices on Wednesday Low prices on Wednesday Concept of Big Day Concept of Big Day Promotional offers1. School Jao Khushi Khushi2. Khushi Ki Barsaat3. Happy Fathers Day

E.g.Big Bazaar's `junk' swap offer Big Bazaar is launching a promotional offer fromSaturday, with the slogan, "Bring anything old and takesomething new".

The prices fixed by Big Bazaar are: clothes (Rs 200 per kg), newspaper (Rs 25 per kg), plastics/utensils/leather goods (Rs. 75 per kg), footwear/luggage (Rs. 100 per kg), Pet/beer bottles (Rs 15 per kg), tyres (Rs 50 per kg), furniture (Rs 75 per kg) and others (Rs 20 per kg)."This offer will help the housewife clean out the junk

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while getting a good value for it.

3. PERSONAL SELLING:

Persuasive communication between a representative of the company and one or more prospective customers,designed to influence the person's or group's purchasedecision.

4. PUBLICITY OF PRODUCT:

Publicity non-personal communication in news story formabout an organization, its products or both, that istransmitted through a mass medium at no charge.

5. PUBLIC RELATION:

Public relations the planned and sustained effort toestablish and maintain goodwill and mutualunderstanding between an organization and its targetpublics.

6. INTERNAL ATTRIBUTES:

a. Envelope

Something that envelops; a wrapping. A productswrapping affects a lot on its sale. More customers areattracted if envelope is very attractive.

b. Internal layoutMethods of displayVisual merchandising

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7. LOGISTICS:

Logistics is the art and science of managing andcontrolling the flow of goods , energy, information andother resources like products, services and people fromthe source of production to the marketplace. Its Importantto have professional logistical support logistical. Theoperating responsibility of logistics is the geographicalrepositioning of raw materials, work in process andfinished inventories where required at the lowest costpossible .

8. SUPPLY CHAIN: Supply chain, is a coordinated system of organizations,people, activities, information and resources involved inmoving a product or service in physical or virtual manner

from supplier to customer. Supply chain activitiestransform raw materials and components into a finishedproduct that is delivered to the end customer .

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4 .9. DISTRIBUTION OF REVENUE EARNER

a. Big Bazaar is working to make fashion its largestrevenue earner.

b. Big Bazaar, the value retailing chain of the Rs4,500crore Pantaloon Retail, is strategieng to focusspecially on fashion retailing or its apparel business toboost overall revenues.

c. It has created Fashion @ Big Bazaar, a sub-brand, toposition the format as much more than food or generalmerchandise.

d. Big Bazaar is looking at making apparel business itslargest revenue generator, as much as 40 per cent intwo years and 50 per cent of its overall business, in fiveyears.

e. Currently sales of apparel make up almost 30 per centof Big Bazaars revenues, which is next only to its food

retailing business that makes up almost 40 per cent.f. However, we will focus on apparel as the margin here is

as high as 35 per cent compared to food retailingbusiness where margins are probably 12 per cent. Soa slight increase in apparel sales boosts the overallbusiness. Going forward, Big Bazaar plans to rearrangeits apparel and fashion merchandise section in stores interms of design, layout and elbow space. This isexpected to ensure better product display in storeskeeping with consumer buying habits and convenience.

g. Future Group recently clocked over Rs 350crore of sales in five Mahabachat days, with sales exceedingRs 105crore on the last day.

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h. During this time, the largest selling category wasapparel. As many as 1lakh jeans were sold andonelakh sarees as well as some 2 lakh t-shirts.

i. Some of Big Bazaars private labels, like DJ&C andKnighthood, are already big revenue generators, withDJ&C projecting Rs 1,000crore in the next three years,from 600crore right now.

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4.10. COMPETITORS

Big bazaar operates in a competitive environment. For eachline of business, they face competition from established nationaland regional companies. In the fashion segment, they probablyface competition from Shoppers Stop, Trent and Lifestyle. Thehypermarket business is relatively new, being just about threeto four years old in the country. Big bazaar faces competitionfrom the likes of RPG (Spencers), Trent (Star India Bazaar)and with Shoppers Stop too indicating their entry into thehypermarket segment. In the Food business, Big Bazaar facescompetition from Subhiksha, Food World to name a few.

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a. RPG GROUP: Spencer & CompanyLimited isanother large retail group in thecountry withsupermarkets,musicstores, and the beauty and healthchainHealth & Glow.

Food world, operated by FoodWorld Supermarkets Limited, whileHealth &Glow by the RPG Group. Itis also Planning IPO, will have 450-plus Music World, 50-plus Spencer's

Hyper covering 4 mn sq.ft by 2010.

b.KRAHEJASDEPARTMENTSTORECHAIN:

K Rahejas Shoppers Stop, is thesecond largest retailer in the countryand became in retailing operation anIndian success story. It alsoacquired the Crossword chain of bookstores.

It Operates Shoppers Stop,Crossword, In orbit Mall, and 'HomeStop' formats. Will operate 55 hyper city hypermarkets with US$100million sales across India by 2015.

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c.SUBHIKSHASUPERMARKET:

Subhiksha was immensely popular in the South, particularly in Chennai,where it sold groceries andpharmaceutical products below theMRP. It expected to earn a totalturnover of Rs 1,200 crore in 2008-09 as it planned to expand outsideTamil Nadu and Pondicherry. Itplanned for 550 stores in the nextfive years.

d. RELIANCE RETAIL: Investing Rs.30000 crore($6.67 billion) in setting upmultiple retail formats withexpected sales of Rs.90,000 crore-plus ($20billion) by 2009-10.

e. LIFESTYLE: Investing Rs.400 crore-plus($90 mn) in next five yearson Max Hypermarkets &value retail stores, homeand lifestyle centers.

f. PIRAMYD RETAIL: Aiming to occupy 1.75 millionsq.ft retail space through150 stores in next fiveyears .

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g. TATA GROUP:

Tata Group has two retailingcompanies; Trent Limited,headed by Noel Tata, whichowns Westside, Star Bazaar and Landmark retail brandsand Tata Infiniti, headed byKrishna Kumar, which ownsCroma brand.

Trent Ltd, he retail arm of theTata Group, has drawn up a

Rs 2,000 crore investmentplan for setting up 50hypermarkets Star Bazaar over the next fiveyears.

Tata Ceramics Limited,which manufactures a widerange of ceramicproducts likeflatware ceramics (Dinner plate, Dessert plate,Saucer) and hollowwareceramics (Vegetable Dish,Oatmeal, Sugar Pot,Creamer, Coffee/Tea Cupsand Pots, Salad Bowl etc.)in plain as well as flutedshapes, under the brandname of CERA, launched itsfirst exclusive branded storein Pune . Tata Ceramics,which achieved sales of Rs35crore last year, is lookingat adding another Rs 12crore from domestic sales in

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4.11. MAJOR PROBLEMS

a. Retailing is in a rapid state of change due to speedytechnological developments, changing competitivepositions, varying consumer behaviors as well as their expectations and liberalized regulatory environment. Insuch a scenario, information is crucial to plan andcontrol profitable retail businesses and it can be animportant source of competitive advantage so long as itis affordable and readily available.

b. In west, retail businesses have been the early adoptersof Information Technology (IT). As there is a need tocapture accurate information and make it available notonly within the store but send it to warehouse,distributors and manufacturers in real time to managethe short shelf life of some goods in grocery sector andcosts of inventory, varied DSS tools have been adoptedby organized retailers. VMIs- vendor managedinventory systems, Scanner at the counters- point of sales systems, RFID- radio frequency identification,OLAP (online analytical processing), supply chainmanagement systems, forecasting systems, CRM-customer relationship management systems, ERP-enterprise resource performance system etc. are thetools used by organized retailers in developed nations.

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c. Most retailers collect and have access to huge amountof data, collected from day to day operations e.g.customer loyalty data, retail store sales andmerchandise data, demographic projection data etc.Currently retailers are data rich but information poor.There is a great potential to develop systems thatenable analysts and decision makers to manage,explore, analyze, synthesize and present data in ameaningful manner for decisions.

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4.12. FUTURE PROSPECTS

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a. Big bazaars have two AMCs. One that specializes inProperty and the other is a Consumer India Fund.The property fund aims at sourcing high qualityproperty at the lowest possible rates, while theconsumer fund will look at providing our retail pipelineand expertise to national and regional brands, therebyenabling them with a wider coverage.

b. Though they have secured 30% of modern retail spacecoming up in the next three years, our endeavour is to

keep evolving with the young Indian consumer. Asregards mind share, we want all our store formats tocapture the imagination of the target customer.

c. The future will also see the pantaloon of several newconcepts targeted at the Indian consumer. Further, retaildevelopment will not just occur in Tier 1 cities, but will have far more significance in Tier 2 & 3 cities as well. The consumptiondrive would be fueled in smaller towns and cities.

d. There would be definite customer responsiveness towardsValue Added products and services in the next few years. Sincevalue retailing touches the mass of the population, and withorganized retailing at about US $ 300 billion at present, valueretailing has the scope to almost double.

e. Retail chain Big Bazaar (Mumbai) plans to open 15more stores by November end, some of them in newmarkets, at an investment of Rs 1,500-1,600 crore.

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f. Big Bazaar is targeting a network of 145 stores by June2009.They have zeroed in on several new and existingmarkets for the 15 stores that they plan to open by end-November. The investment will be in the range of Rs1,500-1,600 crore.

g. The stores would be set up in places such as Mysore,Pune, Cuttack, Kolkata, Chandigarh, Agra, Faridabad,Surat, Nashik, Mumbai, Delhi and Solapur, adding thatin some locations two stores would be opened.

h. The retail chain would be extending its footprint intonew markets such as Mysore, Cuttack, Chandigarh,Faridabad and Solapur.

i. Big bazaar will focus on-

Shoppertainment : It will be a convergence of shopping,entertainment and eating. Shopping and entertainmenttogether called Shoppertainment is targeted at thefamily. Its more than just shopping.

E-tailing : Is the selling of retail goods on the Internet.Short for electronic retailing. The term seems to bealmost inevitable addition to e-mail, e-business, and e-commerce. It is synonymous with business-to-consumer (B2C) transaction.

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j. News related big bazaar, which is expected to generaterevenue of $1 billion in the fiscal 2007-08. Big Bazaar isa hypermarket format of the Pantaloon Retail (India)Ltd.The Group expects to increase its revenues to $7-8billion by 2011, of which Big Bazaar is expected tocontribute a large chunk of around $4 billion. It hasemerged as the largest retail format of Future Group'sretail division. Currently they have more than 80 BigBazaars and we are planning to scale it up to 160 bythe year that the company was going to go very

aggressive in rolling out the Big Bazaar formats, thetotal floor area by 2011 would scale up to 30 millionsquare feet from the present figure of 10 million squarefeet.

k. The consumer electronics segment is doing extremelywell, he said, elaborating that the group was expectingthe segment to generate revenue of Rs 2,000 crore by

next year.l. Future Group plans to have 300 stores and has

projected revenues of Rs 13,000 crore by 2011.m. Total income has increased to Rs 1,381.44 crore for the quarter ended June 2008 from Rs 1,037.42 crore for the quarter ended June 2007, posting a 33.16 jump.

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n. The company said in a statement that it has posted anet profit of Rs 125.97 crore for the year ended June2008 against Rs 119.99 crore for the year ended June2007.

o. Its total income has increased to Rs 5,052.67 crore for the year ended June 2008 from Rs 3,328.77 croreduring the last fiscal. The Group posted a consolidatednet profit of Rs 21.93 crore for the year ended June2008 as compared to Rs 35.54 crore for the year endedJune 2007.

p. However, its total income has increased from Rs3,565.48 crore for the year ended June 2007 to Rs5,866.50 crore for the year ended June 2008.

5. WORK ASSIGNED BY THE COMPANY5 .1 BUSINESS OBJECTIVE:

To increase footfalls and enhance sales by:

a. Attracting customers by giving them various offers.b. Inculcating in their minds the value for money throughthese offers.c. Increasing the average consumption of existingcustomers.

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5.2 OPERATING THE SCHEME:

a. All Category provided offers well in advance.b. I.T uploaded the offers one day in advance andrechecked them.c. V.M also did splendid job by putting the required offer signages and also decorated the store as per the SS3Dtheme.d. HR managed the shift time of employee; Snaks werearranged for the staff.e. SM, ASM, DM, ADM-Planned and managed microanalysis of targets and staff was done by takingdepartment wise meeting.

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5.3 WORKING..

5 .3.1. TO KNOW CONSUMER BEHAVIOR TOWARDSSCHEME:

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Ready to eat Housewives,families,individuals.

Chef zone Housewives, familiesChill station Housewives, individuals

Staples Families, housewives

Vegetables Families, housewives

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Non food items Families, housewives

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On the basis of demographic factors

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AGE INCOME PREFERENCES/HABBITS

Adolescent

(New ageteens)

Do not earn Fond of spending on eating

out, etc

Youth Mostly Brand conscious, productconscious.

Age (35-45) Good incomerate

Good spenders, they likeupgrading their households gadgets.

Age (45-60) People at thepeek of their careers

Spend less

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Above 60 Steadyincome

Spend only on households.

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BUYING PROCESS

a. NEED RECOGNITION:

The customer first points out the things which he need.His good part of income is spend on things of his dailyrequirement.

b. INFORMATION SEARCH:

Before purchasing of a product, customer researchinternally and externally. Internally-retrievinginformation about similar purchase made earlier,decision about choice criteria, brand included, or advertisement related to the product. Externally-source such as family, friends, commercial sources, etc.

c. EVALUATION OF ALTERNATIVES:

Before, purchasing customer looks for the alternatives of that product. Customer goes for good quality incheapest rate.

d. PURCHASES:

Purchaser many times faces cognitive dissonance whicharises due to uncertainty of making right decision. Thisis because choice of one product often means rejectionof attractive features of the alternatives.

e. AFTER PURCHASE EVALUATION:

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Customer by using the product comes to know about thereal value of product.

CONCLUSION:

It should be considered that big bazaar targets every class.Thus we know that different people have different thinking style.

Most of their buying decisions or his behavior depends on his:-

a. P ERCEPTION:

Perception is the process by which a customer makes sense of information that he receives. Therefore, it is to be tried thatcustomer receives the right information about every product andabout its scheme, because a single error in communication tocustomer can create confusion to him and he may not buy theproduct.

b. LEARNING:

It is the change in the content or organization of long timememory and is a result of information processing. Thuscompany should try to hit the customers memory. I.e.Company should have good impression on the memory of thecustomer. As this memory acts as a internal information sourcein the decision making process.

c. MOTIVATION:

Motivation helps a lot to maintain loyal customers. Acustomer is loyal only when he sees any extra benefits.Thus discounts, free gifts, free coupons, etc such schemesmotivate them a lot. Many times, good quality of theproduct, reasonable prices, packaging, etc also works asmotivational tool.

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d. PERSONALITY:

Personality can be of many types as introvert-extrovert,sociable-loner, and competitive-cooperative. Brandpersonality is the characterization of brands as perceivedby customers. Brand may be as for young like branded

jeans of Levis, Lee, Woodland, etc. Big bazaar also targetsame concept.

e. CUSTOMER LOYALITY AND PROFITABILITY:

Relationship between loyalty and profitability should bedecided on the basis of loyal customers that are reallyprofitable for company.The loyal customers are believed to be cost less to serve,they are willing to pay more than other customers and actas a word- of- mouth promoters for the company. It isbelieved that one sure way to earn greater profits is to winloyalty of customers.

5 .3.2. TO GET THE RIGHT POSITIONING DONE OFTHE PRODUCT UNDER SCHEME:

It is the customers beliefs about the companys productbeing of, say, high quality, or low price, or durable, etc.

Thus it is very necessary that product should be accordingto the customers need. It should not be damaged, in storeproduct should be given open facing. For pack of two theproducts were given alternate 4 facing. I.e., one row of single and other row of double.

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5 .3.3. TO MAINTAIN STOCK ON THE FLOOR:

In retail stores less stock is maintained. This stock onother hand is sufficient enough to fulfill the demand of that vary product in store.

To know the exact amount to be maintained on floor it isvery necessary to know:-

a. Product facing

b. Capability to maintain stock in warehouse

c. Demand of the product.d. Profit margin on the product.

5.3.4. TO UPDATE THE PRICES:

Pack of two was the new scheme, so its prices to be getchanged on rem for those products whose prices havechanged by the producing company. The work was toreport DM or team leader about the increase in prices andget it updated on rem so that discount could be givenaccordingly.

5 .3.5. DISCOUNT CRITERION:

a. The discount was given on the scheme of pack of two.b. The discount was 1/4th on the profit of the retail

company.c. I. e if the company is getting profit of rs10 on a product,whose mrp is 100.d. Then after discount it is sold at rs97.5 in the store.

5 .3.6. INVENTORY CONTROL:

Since inventory represents cost, managers seek stockminimization. To always have in stock every conceivable

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item that a customer might order would normally beprohibitively expensive for companies marketing manyitems.

One solution is to separate items into those that are in highdemand and those that are is slow moving. Two relatedinventory decisions are knowing when and how much toorder so that stocks are replenished. This is becausethere is a lead time between ordering and receivinginventory, and there should not be stock out as thecompany is waiting for the order items to arrive. The morevariable the lead time and higher will be the safety or buffer stock that the company will be required to keep toprevent a stock out.

At the store (Lucknow) I saw this problem many times withmany of the products. The stock order placed should bemore in the starting of the month as at that time customerspurchasing power is more. But I usually saw that order placed was somewhat same throughout the month due towhich there was stock out in some of the items in food.

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H OW TO WORK ON BARCODE TENDER:

Barcodes are the labels which shows price of product after giving the discount on that product.Bar tender is the software by which we use to take out the

bar codes.

Process:-

a. To select items according to their EAN numbersInclude for export exit enter.

b. No. of quantity done.

c. now go to next program of print select the items;

ok

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6 . SURVEY

6.1 SURVEY ANALYSIS

1. Total people surveyed-90

2. Total people who responded well-72

a. Surveyed :-

1. Men: 222. Women: 30

3. Youngsters: 18

4. Children: 8

5. Old aged: 12

Men

Wome

Young

Childer

Old ag

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b. Marital status:-

1. Married: 74 2. Unmarried: 16

Married

Unmarri

c. Occupation:-

1. Student: 20

2. Business: 38

3. Service: 27

05

10152025

303540

No. of Person

Student Bussiness Service Any other

StudentBussineServiceAny othe

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d. Income group: -

1. 0-10000: 202. 10000-20000: 24

3. 20000-30000: 28

4. More than 30000: 18

0

5

10

15

20

25

30

No.of Person

0-1000010000-2000020000-30000more than 300

e. Is your home: -

1. A single family house: 55

2. Two family house: 25

3. Single: 10

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Single family hou

Two family hous

single

f. Indicate activities/interests which youand/or household members enjoy on aregular basis:

1. Bicycling/running: 1

2. Dieting: 25

3. Crafts: 5

4. Foreign travel: 15

5. Gourmet/fine food: 45

6. Fashion clothing: 40

7. Bible/devotional reading: 12

8. Physical fitness/exercise: 69

9. Stereo/records and tapes: 14

10. Art/antiques: 8

11. Outdoor gardening: 35

12. Wildlife/environment issues: 40

13. Health foods/vitamins: 70

14. Money making opportunities: 50

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15. Book reading: 24

16. Self improvement: 45

17. Watching sports on TV: 4018. Charities/volunteer work: 16

19. Other: 12

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bicycling dieting craft foreign travel

fine food fashion clothing devotional reading physical fitness

tapes/records art outdoor gardening w ildlife

health foods money making book reading self improvement

watching sports charities others

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CONCLUSION FROM SURVEY ANALYSIS

a. Men and women both are responsive this shows thatthey have interest in the products either they buy or not.They have good knowledge about the product they buy.

b. Women are very careful about what they buy butsometimes men tend to ignore some of the features of product.

c. Women are more attracted and keen to know about theschemes, discounts, gifts, etc on product.

d. People have multiple life style and people have interestin music, fitness, health, dieting, health food, vitaminrich products, and fashion clothing.

e. Women, children, youngsters, aged people frequentlymake visit to stores.

f. People of single family and apartment family arefrequent customers.

g. People of middle class and upper middle class arefrequent customers and they spend good amount of their income.

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6.2 TREND ANALYSIS

a. how often you used this product before thescheme?

1. Everyday: 49

2. More than once a week: 21

3. Once a week: 20

everyday

more than once a we

once a we ek

b. How often do you use products from this[SERVICE CATEGORY]

1. Every day: 55

2. More than once a week: 29

3. Once a week: 6

Every day

Once a wee k

More than once a w e

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CONCLUSION FROM TREND ANALYSIS

Trend analysis shows that consumption rate of theproducts was good, as the products were mainly dailyused products. Earlier the rate of using of product wasless in comparision, after the scheme.

6.3 CONJOINT ANALYSIS

a. Stores are conveniently located:-

1. Very Strongly Agree: 20

2. Strongly Agree: 28

3. Agree: 27

4. Disagree: 15

0

5

10

15

20

25

30

very stronglyagree

stronglyagree

agree dis agree

very strongly agree

strongly agree

agree

disagree

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b. Store atmosphere and decor areappealing:-


2. Agree: 40

3. Disagree: 21

strongly agr

agree

disagree

c. A good selection of products was present.


2. Agree: 55

3. Disagree: 11

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strongly agr

agree

disagree

d. (Store) has the lowest prices in the area:-


2. Agree: 45

3. Disagree: 15

05

10152025

30354045

No of Person

Stronglyagree

Agree Disagree

Strongly ag

Agree

Disagree

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e. Merchandise sold is of the highest quality:-


2. Agree: 52

3. Disagree: 12

Strongly agre

Agree

disagree

f. Merchandise displays are attractive:-

1. Strongly Agree: 92. Agree: 69

3. Disagree: 12

0

20

40

60

80

No.of person

Strongly

agree

Agree Disagree

Stronglyagree

Agree

Disagree

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g. Advertised merchandise was in stock:-


2. Agree: 673. Disagree: 9

Strongly ag

Agree

Disagree

h. Overall, I am very satisfied with the store:-


2. Agree: 30

3. Disagree: 5

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0

10

20

30

40

50

60

No.of

Person

Stronglyagree agree disagree

Strongly agree

agree

disagree

i. I am very satisfied with the price I paid forwhat I bought:-


2. Agree: 53

3. Disagree: 3

strongly agr

agree

disagree

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j. I am very satisfied with the merchandise Ibought:-


2. Agree: 70

3. Disagree: 8

strongly ag

agree

disagree

Slice 4

Select the rating that best describes how you feelabout [PACK OF TWO SCHEMES].

k. Quality:- 1. Strongly Agree: 30

2. Agree: 28

3. Disagree: 15

4. Disagree Strongly: 15

5. Very Strongly Disagree: 2

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0

5

10

15

20

25

30

No.of Person

Stronglyagree

Agree Disagree Disagreestrongly

Verystronglydisagree

Strongly agre e

Agree

Disagree

Disagreestrongly

Very str onglydisagree

l. Price and Discount:-


2. Agree: 60

3. Disagree: 12

Stronagree

Agree

Disag

m. How interested would you be in using theproduct in this scheme:-1. Not at all interested: 0

2. Not very interested: 3

3. Neutral: 2

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4. Somewhat interested: 25

5. Extremely interested: 50

6. Not sure: 10

05

101520253035

404550

No.of Person

Not at all Not veryinterested

Netural Somewhatinterested

Extremelyintrested

Not sure

Not at all

Not ver yinterested

Netural

Somewhatinterested

Extremelyintrested

Not sur e

n. Overall, how interested are you in buyingthis service:-

1. Not at all interested: 0

2. Not very interested: 5

3. Neither interested nor uninterested: 22

4. somewhat interested: 18

5. Extremely interested: 45

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0

5

10

15

20

25

30

35

40

45

No.of Person

Not at all int.

Not veryinterested

Neither int.nounint

Somewhatinterested

Extremelyintrested

CONCLUSION FROM CONJOINT ANALYSIS

People are satisfied with the store locations. There is goodrating in favour of atmosphere, dcor and quality of product offered to customer in exchange of the reasonableprices.

People have shown their keen interest towards theproducts in scheme. They say that for them any discount isgood if the product is of their utility.

Customers are interested to buy the products again andagain of the scheme.

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7. GENERAL SURVEY AND CONSUMER BEHAVIOR ANALYSIS FOR THE NEWSCHEME OF PACK OF TWO

a. Do you find the choices in biscuitsaccording to your preference:-

1. Very Strongly Agree: 20


3. Agree: 23

4. Disagree: 15

very stronglyagreestrongly agree

agree

disagree

b. Biscuits most preferred-

Britannia:-

1. Britannia gday butter: 32

2. Britannia gday pista: 163. Britannia gday cashew: 20

4. Britannia jim jam: 55

5.Britannia crm treat bourbon 32

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0

10

20

30

40

50

60

gday

butter

gday

pista

gday

cashew

jim jam bourbon

gday buttegday pistagday cash

jim jambourbon

c. Parle:-

1. Parle hide n seek choco chips (200g): 24

2. Parle hide n seek choco (100g): 61

3. Parle bourbon cream (200g): 454. Parle digestive (176g): 34

5. Parle krack-jack (240g): 21

6. Parle glucose (220g): 50

hide&seek(200

2nd Qtr

bourbon(200g)

digestive(176g

krack-jack(240

glucose(200g)

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d. Maggi preffered most:-

1. Maggi noodle masala (380g): 35

2. Maggi noodle masala (570gm): 303. Maggi noodle masala (760g): 32

4. Maggi noodle vegetable atta (360g): 24

5.Maggi noodle rice chilli chow (332g): 8

maggi noodlemsla(380g)570g

760g

veg atta noodle(360

rice chilli chow

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e. Mtr products:-

1. MTR dessertmix badam drink (220g): 11

2. MTR dessertmix gulab jamun mix (200g):103. MTR payasam kheer (220g): 60

4. MTR readymeal suji upma: 16

5. MTR snackmix dosa mix (500g): 12

6. MTR snackmix rava dosa (500g): 19

7. MTR snackmix rava idli (500g): 68. MTR snackmix uttappam (500g): 15

mtr badamdrink(220g)

mtr gulab jamun

mtr payasam kh

mtr suji upma

mtr dosa mix

mtr rava dosa

mtr rava idli

mtr uttappam

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CONCLUSION

Maggi showed a good response day by day but those likeChili Chow, Lemon masala, Rice shahi pulao was notup to satisfactory demand.

Mtr Badam drink, Gulab jamun, Rava idli, Dosa mix wereless in demand may be due to season.

Mtr Payasam kheer showed outstanding demand.

Parle hide n seek (100g), Digestive, Bourbon, krack jackwere in good demand in families. These were likecombination of chocolate, lite, salty biscuits.Digestive was preferred by health conscious customersmainly.

Britannia Jim jam and Bourbon were preferred by children,

and pista, butter; cashew also provided a great choice inready to eat section.

Nestle chocolates Kit Kat of 34g, 99g were in gooddemand.

Red label tea nature care ct 2*250g, Tata tea gold andpremium 2*500gm should continue because their demand was increasing slowly.

Bikano Alu Bhujia and Bikaneri bhujia should be continuedas affordable prices for all customers. It is competingHaldiram and many local made, so it will take sometime for it to raise a remarkable demand.

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Some of the products which can be considered for saleset.

Britannia nutri digestive (small pack)-focuses all healthconscious and old age which are in good percentage. Soit can be considered or scheme.

Mohans corn flakes (liked by all class people and inbudget).

No offer on Sunfeast products which targets children intheir advertisements.

Private label products were very reasonable and veryaffordable and were in good demand but there was goodnumber of damage also from the brand in tasty treatinstant noodles masala (400g).

There is private label honey also, of very reasonable rate,for its promotion can we have it in any scheme?

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Providing social tools and platforms around productsand services to create better informed and better organised buying behaviour.

Giving away designGiving away assortment

Give away marketingAugmented Reality

ORGANIZED RETAILING

(i) promote quality employment;(ii) improve business process practices;

(iii) spur investments in supportindustries; and(iv) enable the modernization of the fragmented

traditional retail industry.

Modern retail business focuses on maximizing customer footfalls and capturing rising volume and share of thecustomer wallet.

While the competition strategy is largely price focused,the model works by:

(i) improving sourcing efficiencies;(ii) expanding product assortment;(iii) differentiating service; and(iv) enhancing the store ambience. Thus, there are

four drivers of modern retails one-stop shopping

model:price, product, service, and ambience

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The main objective of these studies is to understandhow these firms are:

(i) penetrating markets;(ii) introducing formats and product categories;(iii) operating the end-to-end value chain; (iv) pricing

different products; and(v) capturing customer footfalls.

It helps to:

(i) attain critical mass;(ii) economies of scope in sourcing by accruing

costs across stores; and(iii) reach out to consumers in the local

neighbourhood locations

BENEFITS OF ORGANIZED RETAILING

PRODUCT MARGIN

Modern retail penetration and consumer adoption in theapparel and clothing category is the highest.An organized retailer gets an average of 30 per cent grossmargin or above on MRP across womens wear, gentswear, and kids wear on branded labels. In the case of private labels of store brands, clothing margins are higher than 60 per cent typically.

In the food and grocery section across hypermarket,supermarket, and discount store formats, grocery covers

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around 45 per cent of store space in FMCG and staplefood products.As regards fresh fruit and vegetables, however the storelevel penetration is low compared to other categories for various reasons: (i) high wastage; (ii) lack of temperature-controlled isles; and (iii) low profit margins in bulk produce(potatoes, tomatoes, and onions). In addition, thecustomer adoption rate is also low in fresh fruit andvegetables because of its daily need-based requirementand the distance factor.Nevertheless, fruit and seasonal vegetables are higher profit-margin produce: fruit sell at 40 per cent margin onthe cost price, and seasonal and exotic vegetables around30 per cent above the cost price. Across the fruit andvegetable section, the net profit gain is between 8 per centand 10 per cent on an average. As a result, organizedretail firms are strategizing convenience format stores upto 2,000 sq. ft. area in order to penetrate the localneighborhood markets.

MARKET PENETRATION STRATEGY:-

Large retailers are heading for a pyramidal approach bylaunching several small-sized neighborhood conveniencestores in tandem with a few large hypermarket or department store formats. This strategy is beneficial tolarge retail firms because they can absorb supply-chaincosts across formats. Further, bulk purchases enable themto squeeze profit margin from suppliers. However, the localtraditional retailers in the nearby locations feel moreintense competition.

The product mix in the hypermarket format is typically 60per cent food and 40 per cent non-food. The formatincorporates a larger share of apparel, grocery products instaples, and FMCG goods, of which the share of apparel

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merchandize is 30 per cent. Fruit and vegetables, mobilephones, alcohol-based beverages and pharmaceuticalelectronics and household durable product categoriesencompass a much smaller share.Another dominant format used by modern retailersincludes the department and speciality stores focusingprimarily in clothing, cosmetics, artificial jewelry andwatches, and household durables.The discount and convenience formats largely concentrateon fruit and vegetables and grocery products.

Gradually, the organized retail value chain would prefer tolean towards the direct procurement approach in order toreduce the cost of the middleman.

The direct procurement model benefits modern retailers for the following reasons: (i) maximizing its gains on largevolume transactions; (ii) implementing store brandpromotional schemes; and (iii) minimizing the operationalcost.

In the case of FMCG and staple products, the firmsprocure primarily from large suppliers for branded productsand small suppliers for store brand private labels. Asregards apparel, a mix of large and small suppliers supplydirectly for private labels.

Currently, the modern retailers work on a commission-based margin with branded suppliers as opposed to theslotting-fee position where a manufacturer or supplier getsshelf space by paying a certain fee structure. By havingcommission-based direct contract terms with brandedsuppliers, retailers are able to arrange various promotionalschemes in order to attract customer footfalls to their stores and secure discounted price on bulk purchase. Thisbusiness tactic is particularly disadvantageous to the

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traditional retailers because their volume demand is verysmall and is primarily on credit payments.

EMPLOYMENT GENERATION:

Finally, but most importantly, the employment generatedby organized retail is building a quality labour class that isgaining vocational training in skilled and unskilled jobs atthe graduate and tenth class level Foreseeing the demandfor trained staff, leading organized retailers are creatingtheir captive human resources pool through internaltraining and programmes and tie-ups with retailmanagement schools.

COMPETITORS STRATEGY:

Subhiksha Value

Low-price high-volume strategy: by keeping no fancy frillsfront-end and by becoming an intermediary at the backend, Subhiksha leverages on discounted prices on bulkpurchases and cash payments.

Trent Limited Lifestyle &Value

Single- brand strategy: leverages on high margins inprivate labels, and targets consumers in socio-economicclass B and C.

ITC Choupal Sagar & ChoupalFresh Value

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Backward integration through IT-based business model:leverages by building direct relationship with the supplysource, the farmers, to sell as well as purchase productsand services.

Spencers Retail Value

The duck and the duckling model: by having two- or three- value segment stores, backed by a cluster of small-sized Fresh, Daily, andExpress stores, to leverage on economies of scale atback-end value chain.

NDDB: Mother Dairy ValueOperates on a co-operative model with the objective of increasing farmers welfare. Has a strong presence inDelhis NCR region.Strategically located in residential areas and follows a low-price strategy for fruit and vegetables.

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8. CONCLUSION

If this project proves to be of any usefulness to the reader then Iwill be very proud of it, that all the hard work done by my facultyand me has been fruitfull.Above all, I hope to have shown my reader that the answer of their questions on the working of the company and itsmaketing stategies which made it a retail giant and capturethe big part of the market . how ever it is difficult to knowabout a company but training provided to me helped me alot to know the retail store and consumers behavior to agreat extent. i came to know how a consumer reacts to

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every action made by retail to pursue them with their promotional and marketing strategies.

This project helped me to clear my else doubts and stepover the boundaries of confusion and querries withreference to retail store and helped to be more focusedand helped me a lot to understand the concepts in mystudies.

9. B IBLOGRAPHY

BOOKS:

KOTLER PHILLIP,KELLER KELVINMarketing Management, Pataparganj, Delhi, DorlingKindersley(India)Pvt.Ltd , 2007,74 to 80, 164 to 170, 200 to 203, 205 to 208,231 to236, 245 to 264.

KUMAR ARUN AND MEENAKSHI N

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Marketing Management, Naraina, New Delhi, Excel BooksPvt. Ltd.,2008, 11 to 14,29 to 31, 70 to 75, 82 to 98,103 to 104,112 to 115, 126 to 128, 218 to 229, 232to 233.

INTERNET:

www.yorku.ca/rkenedy/critical_skills/student/nick_ashby_ppt_prestns/how_to_write_an_introduction.ppt+how+to+write+introduction&hl

www.livemint.com/Big-Bazaar-plans-to-open-15-st.

www.financialexpress.com/news/Future-Group-to-hive-off-Big-Bazaar/

www.fibre2fashion.com/face2face/pantaloon/kishorebiyani.asp

www.thehindubusinessline.com/iw/2005/12/25/stories/

http://www.domain-b.com/companies/companies_f/future_group/20080930_future_group

10. ANNEXTURE

Annexure

SURVEY QUESTIONNAIRES

1. Tick the option you fall in:-

a. women

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b. childrenc. youngstersd. men

e. old age

2. Does the big bazaar match consumer expectation or are they just making empty promises?

a. yesb. no

3. Marital status:-

a. marriedb. unmarried

4. Occupation:-

a. studentsb. businessc. serviced. others

5. Income group:-

a. 0-10,000b. 10,000-15,000c. 15,000-20,000d. more than 20,000

6. Your family is:-

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a. single familyb. joint familyc. bachelor

d. others

7. You use the products in offer:-

a. every dayb. more than once in a weekc. once a week

8. Is the store conveniently located?

a. strongly agreeb. agreec. disagree

9. What about store environment?

a. very goodb. goodc. average

10. Do you find variety in products?


11. What do you think about quality of the products?

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a. very goodb. goodc. average

12. Do you like the way products are displayed?

a. very attractiveb. attractivec. average

13. How do you come to know about the schemes?

a. reference groupb. newspapersc. sales promotionsd. pamphlets distributede. paging in store

14. Are you satisfied with the products in store?

a. yesb. noc. no comments

15. Are you happy with the schemes and discounts?


16. How much interested are you in using products?

a. not at all interested

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b. not very interestedc. neutrald. somewhat interested

e. not sure

17. Which of the following product you like to take?

a. Britannia g-day butter b. Britannia g-day cashewc. Britannia g-day pista

d. Britannia jim- jame. Britannia cream treat bourbon

18. PARLE PRODUCTS:-

1. Parle hide n seek choco chips(200g)2. Parle hide n seek choco (100g)3. Parle bourbon cream(200g)4. Parle digestive (176g)5. Parle krack-jack (240g)6. Parle glucose (1kg)

19. MAGGI NOODLES:-

1. Maggi noodle masala(380g)

2. Maggi noodle masala(570gm)3. Maggi noodle masala(760g)4. Maggi noodle vegetable atta(360g)5. Maggi noodle rice chilli chow(332g)

20. MTR products

1. MTR dessertmix badam drink(220g)

Documents

Marketing Strategy of Big Bazar