1

A PROJECT ON

“ BIG BAZAAR”

IN THE SUBJECT

RESEARCH METHODOLOGY

SUBMITTED BY

SOUMEET SARKAR

A030

M.Com Part-II in Advance Accountancy

UNDER THE GUIDANCE OF

PROF. BHARAT PITHADIA

TO

UNIVERSITY OF MUMBAI

FOR

MASTER OF COMMERCE PROGRAMME

(SEMESTER - III)

In

ADVANCE ACCOUNTANCY

YEAR: 2014-15

SVKM’S

NARSEE MONJEE COLLEGE OF COMMERCE &ECONOMICS

VILE PARLE (W), MUMBAI – 400056.

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EVALUATION CERTIFICATE

This is to certify that the undersigned have assessed and evaluated the project on

“ BIG BAZAAR ” submitted by SOUMEET SARKAR student of M.Com. –

Part - II (Semester – III) In ADVANCE ACCOUNTANCY for the academic year

2014-15. This project is original to the best of our knowledge and has been accepted

for Internal Assessment.

Name & Signature of Internal Examiner

Name & Signature of External Examiner

PRINCIPAL

Shri Sunil B. Mantri

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DECLARATION BY THE STUDENT

I, SOUMEET SARKAR student of M.Com (Part – II) In ADVANCE

ACCOUNTANCY Roll No.: A030 hereby declare that the project titled “ BIG

BAZAAR ” for the subject RESEARCH METHODOLOGY submitted by me for

Semester – III of the academic year 2014-15, is based on actual work carried out

by me under the guidance and supervision of PROF. BHARAT PITHADIA. I further

state that this work is original and not submitted anywhere else for any

examination.

Place: MUMBAI

Date: August 2014

Name & Signature of Student:

Name: SOUMEET SARKAR

Signature:

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ACKNOWLEDGEMENT

It is indeed a great pleasure and proud privilege to present this project work.

I thank my project guide Prof. Bharat Pithadia and my M.Com. Co-ordinator

Prof. Harish Sharma of SVKM‟s Narsee Monjee College of Commerce and

Economics. Their co-operation and guidance have helped me to complete this

project.

I would sincerely like to thank the principal of our college Shri Sunil B.

Mantri for his support and guidance.

I would also like to thank the college library and staff for helping and guiding

me, the class representatives and my family and friends who supported me in

this project.

THANK YOU

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MAIN PAGE I

EVALUATION CERTIFICATE II

DECLARATION BY THE STUDENT III

ACKNOWLEDGEMENT IV

CONTENT

Sr. No. PARTICULARS

Page No.

1

CHAPTER I – INTRODUCTION

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2

CHAPTER II – ANALYSIS I

11

3

CHAPTER III – ANALYSIS II

22

4

CHAPTER IV – CONCLUSION, SUMMARY AND

RECOMMENDATION

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BIBLIOGRAPHY

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CHAPTER - I

INTRODUCTION

COMPANY PROFILE:-

Parent Group Future Group

Owner Kishore Biyani (CEO)

Founded 2001

Headquarter Jogeshwari, Mumbai

Industry Retail

Big Bazaar is the largest hypermarket chain in India. Big Bazaar was launched in

September, 2001 with the opening of its first four stores in Kolkatta, Indore, Bangalore

and Hyderabad in 22 days. Currently, there are 160 stores across 95 cities and towns in

India covering around 16 million sq.ft. of retail space. It was started by Kishore Biyani.

Big Bazaar was launched mainly as a fashion format selling apparel, cosmetics,

accessories and general merchandise. Over the years, the retail chain has included in its

portfolio a wide range of products and services, ranging from grocery to electronics.

Big Bazaar is popularly known as the „Indian Wal-mart‟ today. Most Big Bazaar outlets

are multi-leveled stores and are located in stand-alone buildings in city centre as well as

within shopping malls. These stores have more than 2,00,000 stock keeping units (SKU)

in a wide range of categories, led primarily by fashion and food products. The retail

space of these stores in the metros range between 50,000 and 1,60,000 sq.ft.

According to Kishore Biyani‟s 3-C theory, Change and Confidence among the entire

population is leading to rise in Consumption, through better employment and income

which in turn is creating value to the agricultural products across the country. Big

Bazaar has divided India into three segments:-

1. India One:- Consuming class which includes upper middle and lower middle class

(14% of India's population).

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2. India Two: Serving class which includes people like drivers, household helps,

office peons, liftmen, watchmen, etc. (55% of India's population).

3. India Three: Struggling class (remaining 31% of India's population).

While Big Bazaar is targeted at the population across India One and India Two

segments, Aadhaar Wholesale is aimed at reaching the population in India Three

segment. With this, Future Group emerged as a retail destination for consumers across

all classes in the Indian society.

PROGRESS OF BIG BAZAAR:-

2001

Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore,

Hyderabad.

2002

Big Bazaar - ICICI Bank Card is launched.

Food Bazaar becomes part of Big Bazaar with the launch of the first store in

Mumbai at High Street Phoenix.

2003

Big Bazaar enters Tier II cities with the launch of the store in Nagpur.

Big Bazaar welcomes its 10 million customer at its new store in Gurgaon.

2004

Big Bazaar wins its first award and national recognition. Big Bazaar and Food

Bazaar awarded the country‟s most admired retailer award in value retailing and food

retailing segment at the India Retail Forum.

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A day before Diwali, the store at Lower Parel becomes the first to touch Rs.10

million turnover on a single day.

2005

Initiates the implementation of SAP and pilots a RFID project at its central

warehouse in Tarapur.

Launches a unique shopping program: the Big Bazaar Exchange Offer, inviting

customers to exchange household junk at Big Bazaar.

Electronic Bazaar and Furniture Bazaar are launched.

Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold credit card

program to reward its loyal customers.

2006

Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs.1,37,367

shopping bill. The Sangli farmer becomes Big Bazaar‟s largest ever customer.

Big Bazaar launches Shakti, India‟s first credit card program tailored for housewives.

Navaras – the jewellery store launched within Big Bazaar stores.

2007

The 50th

Big Bazaar store is launched in Kanpur.

Big Bazaar partners with Futurebazaar.com to launch India's most popular shopping

portal.

Big Bazaar initiates the "Power of One" campaign to help raise funds for the Save

The Children India Fund.

Pantaloon Retail wins the International Retailer of the Year at US-based National

Retail Federation convention in New York and Emerging Retailer of the Year award

at the World Retail Congress held in Barcelona.

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2008

Big Bazaar becomes the fastest growing hypermarket format in the world with the

launch of its 101st store within 7 years of launch.

Big Bazaar dons a new look with a fresh new section, Fashion at Big Bazaar.

Big Bazaar joins the league of India‟s Business Super brands. It is voted among the

top ten service brands in the country in the latest pitch- IMRB international survey.

Big Bazaar initiated the Mega Saving "Monthly Bachat Bazaar" campaign, to provide

exceptional deals on groceries and food items during the first week of every month.

2009

Big Bazaar opens its second store in Assam at Tinsukia.

Big Bazaar initiates Maha-Annasantarpane program at its stores in South India – a

unique initiative to offer meals to visitors and support local social organizations.

Big Bazaar captures almost one-third share in food and grocery products sold through

modern retail in India.

Shikhar Dhawan, youth icons of India, were chosen as the brand ambassadors of Big

Bazaar.

Big Bazaar announced the launch of 'The Great Exchange Offer'.

Formed a joint venture with Hidesign to launch Holi, a new brand of handbags,

laptop bags and other accessories.

2010

Future Value Retail Limited is formed as a specialized subsidiary to spearhead the

group‟s value retail business through Big Bazaar, Food Bazaar and other formats.

Big Bazaar wins CNBC Awaaz Consumer Awards for the third consecutive year.

Adjudged the Most Preferred Multi Brand Food & Beverage Chain, Most Preferred

Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop Shop.

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Big Bazaar connects over 30,000 small and medium Indian manufacturers and

entrepreneurs with around 200 million customers visiting its stores.

Big Bazaar opens its third store in Kanpur at Z Square Mall.

Big Bazaar opens its fourth store in Kanpur at Jajmau which is the largest leather

tannery garrison of Asia.

Vidya Balan was chosen as the brand ambassador of Big Bazaar's Price Challenge

exercise.

Ranked 6 among the Top 50 Service Brands in India.

2011

Big Bazaar forays into the rural wholesale and distribution business through „Aadhaar

Wholesale‟ store at Kalol, Gujarat.

Big Bazaar has come up a new logo with a new tag line: „Naye India Ka Bazaar‟.

200th

store opened in India.

Future Group has launched its latest venture, Foodhall – a premium food destination

across 10 metros in India.

For the convenience of the online customers, Big Bazaar has started free shipping on

all orders above Rs.1000.

Entered into an agreement with Hindustan Unilever to co-develop and co-brand

bakery products, which would be sold exclusively at Big Bazaar stores.

2012

Big Bazaar entered into a five year multi-million dollar deal with Cognizant

Technology Solutions for IT infrastructure services that support Future Group's

network of stores, warehouses, offices and data centers.

Partnered with Disney to launch "Kidz Cookies", exclusively for kids across India.

Big Bazaar is planning to add further value to its retail services by offering value

added services like grinding, de-seeding, vegetables cutting at free of cost.

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CHAPTER - II

ANALYSIS – I

SWOT ANALYSIS

A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate

the strengths, weaknesses, opportunities, and threats involved in a project or in a business

venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves

specifying the objective of the business venture or project and identifying the internal and

external factors that are favorable and unfavorable to achieve that objective. The technique is

credited to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI

International) in the 1960s and 1970s using data from Fortune 500 companies. The degree to

which the internal environment of the firm matches with the external environment is expressed

by the concept of strategic fit.

Setting the objective should be done after the SWOT analysis has been performed. This would

allow achievable goals or objectives to be set for the organization.

Strengths: characteristics of the business or project that give it an advantage over others.

Weaknesses: characteristics that place the business or project at a disadvantage relative to

others

Opportunities: elements that the project could exploit to its advantage

Threats: elements in the environment that could cause trouble for the business or project

Identification of SWOTs is important because they can inform later steps in planning to achieve

the objective. First, the decision makers should consider whether the objective is attainable,

given the SWOTs. If the objective is not attainable a different objective must be selected and the

process repeated. Users of SWOT analysis need to ask and answer questions that generate

meaningful information for each category (strengths, weaknesses, opportunities, and threats) to

make the analysis useful and find their competitive advantage.

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SWOT ANALYSIS of BIG BAZAAR

STRENGTHS

Better understanding of customers helping the company to serve them better.

Vast range of products under one roof helping in attracting customer and their family to

shop together and enjoy the experience.

Benefit of early entry into the retail industry.

Diversified business operating all over India in various retail formats.

Affordability for middle class.

Quality, choice and convenience.

Strong presence in local market (high brand equity).

Attractive promotional offers.

Good branding and advertising by also roping in celebrity brand ambassadors.

Good infrastructure.

One stop shop for variety of products, increasing customer time and available choices.

WEAKNESSES

Not known globally and restricted to the Indian market only.

No different game plan according to divergent people, their lifestyles, their tastes and

budgets in India.

High cost of operation due to large fixed costs.

Very thin margin of profit.

High attrition rate of employee.

Low perception among consumers.

Supply chain Bottlenecks (fragmented markets).

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Less availability of stock.

Unable to meet store opening target so far.

Falling revenue per square feet.

Employees need more training in handling esteemed customer.

OPPORTUNITIES

Lot of potential in rural market.

Can expand the business in smaller cities as there is a lot of opportunity.

Can enter into production of various products due to its in depth understanding of

customer‟s tastes and preferences.

To expand globally by tie-ups.

Entering into high premium segment.

Opportunity to expand into financial services catering to huge segment.

Co-branding and franchising for faster growth.

ONE STOP concept unknown yet.

Evolving customer preferences in recent years.

THREATS

High business risk involved.

Lot of competitors coming up to tap the market potential.

Margin of business reducing all the time.

Future Bazaars debt can cause financial problems.

Low priced brand perceived to be low quality in Indian consumers mind.

Unorganized retail market.

Government policies.

Customers may lose their trust on the company due to supply of sub-standard products.

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PORTERS’s FIVE FORCES MODEL

Porter five forces analysis is a framework to analyze level of competition within an industry and

business strategy development. It draws upon industrial organization (IO) economics to derive

five forces that determine the competitive intensity and therefore attractiveness of a market.

Attractiveness in this context refers to the overall industry profitability. An "unattractive"

industry is one in which the combination of these five forces acts to drive down overall

profitability. A very unattractive industry would be one approaching "pure competition", in

which available profits for all firms are driven to normal profit. This analysis is associated with

its principal innovator Michael E. Porter of Harvard University.

Porter referred to these forces as the micro environment, to contrast it with the more general term

macro environment. They consist of those forces close to a company that affect its ability to

serve its customers and make a profit. A change in any of the forces normally requires a business

unit to re-assess the marketplace given the overall change in industry information. The overall

industry attractiveness does not imply that every firm in the industry will return the same

profitability. Firms are able to apply their core competencies, business model or network to

achieve a profit above the industry average. A clear example of this is the airline industry. As an

industry, profitability is low and yet individual companies, by applying unique business models,

have been able to make a return in excess of the industry average.

Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute

products or services, the threat of established rivals, and the threat of new entrants; and two

forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of

customers.

Porter developed his Five Forces analysis in reaction to the then-popular SWOT analysis, which

he found un-rigorous and ad hoc. Porter's five forces is based on the Structure-Conduct-

Performance paradigm in industrial organizational economics. It has been applied to a diverse

range of problems, from helping businesses become more profitable to helping governments

stabilize industries. Other Porter strategic frameworks include the value chain and the generic

strategies.

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Threat of New Entrants:- Profitable markets that yield high returns will attract new firms. This

results in many new entrants, which eventually will decrease profitability for all firms in the

industry. Unless the entry of new firms can be blocked by incumbents (which in business refers

to the largest company in a certain industry, for instance, in telecommunications, the traditional

phone company, typically called the "incumbent operator"), the abnormal profit rate will trend

towards zero (perfect competition). The following factors can have an effect on how much of a

threat new entrants may pose:-

1. The existence of barriers to entry (patents, rights, etc.). The most attractive segment is

one in which entry barriers are high and exit barriers are low. Few new firms can enter

and non-performing firms can exit easily,

2. Government policy,

3. Capital requirements,

4. Absolute cost,

5. Cost disadvantages independent of size,

6. Economies of scale,

7. Economies of product differences,

8. Product differentiation,

9. Brand equity,

10. Switching costs or sunk costs,

11. Expected retaliation,

12. Access to distribution,

13. Customer loyalty to established brands,

14. Industry profitability (the more profitable the industry the more attractive it will be to

new competitors).

Threat of Substitute Products or Services:- The existence of products outside of the realm of

the common product boundaries increases the propensity of customers to switch to alternatives.

For example, tap water might be considered a substitute for Coke, whereas Pepsi is a

competitor's similar product. Increased marketing for drinking tap water might "shrink the pie"

for both Coke and Pepsi, whereas increased Pepsi advertising would likely "grow the pie"

(increase consumption of all soft drinks), albeit while giving Pepsi a larger slice at Coke's

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expense. Another example is the substitute of traditional phone with VoIP phone. Potential

factors:-

1. Buyer propensity to substitute,

2. Relative price performance of substitute,

3. Buyer switching costs,

4. Perceived level of product differentiation,

5. Number of substitute products available in the market,

6. Ease of substitution,

7. Substandard product,

8. Quality depreciation.

Bargaining Power of Customers:- The bargaining power of customers is also described as the

market of outputs: the ability of customers to put the firm under pressure, which also affects the

customer's sensitivity to price changes. Firms can take measures to reduce buyer power, such as

implementing a loyalty program. The buyer power is high if the buyer has many alternatives.

Potential factors:-

1. Buyer concentration to firm concentration ratio,

2. Degree of dependency upon existing channels of distribution,

3. Bargaining leverage, particularly in industries with high fixed costs,

4. Buyer switching costs relative to firm switching costs,

5. Buyer information availability,

6. Force down prices,

7. Availability of existing substitute products,

8. Buyer price sensitivity,

9. Differential advantage (uniqueness) of industry products,

10. RFM (customer value) Analysis,

11. The total amount of trading.

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Bargaining Power of Suppliers:- The bargaining power of suppliers is also described as the

market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise)

to the firm can be a source of power over the firm when there are few substitutes. If you are

making biscuits and there is only one person who sells flour, you have no alternative but to buy it

from them. Suppliers may refuse to work with the firm or charge excessively high prices for

unique resources. Potential factors:-

1. Supplier switching costs relative to firm switching cost,

2. Degree of differentiation of inputs,

3. Impact of inputs on cost or differentiation,

4. Presence of substitute inputs,

5. Strength of distribution channel,

6. Supplier concentration to firm concentration ratio,

7. Employee solidarity (e.g. labor unions),

8. Supplier competition: the ability to forward vertically integrate and cut out the buyer.

Intensity of Competitive Rivalry:- For most industries the intensity of competitive rivalry is the

major determinant of the competitiveness of the industry. Potential factors:-

1. Sustainable competitive advantage through innovation,

2. Competition between online and offline companies,

3. Level of advertising expense,

4. Powerful competitive strategy,

5. Firm concentration ratio,

6. Degree of transparency.

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FIVE FORCES’s ANALYSIS of BIG BAZAAR

Rivalry among

Competitors

1. Walmart

2. D-mart

3. Reliance Retail Mart

4. Vishal‟s Retail Mart

Threat of New Entrant 1. FDI policy not favorable for international players.

2. Domestic conglomerates looking to start retail chains.

3. International players looking to foray India

Threat of Substitutes 1. Unorganized Retail

Bargaining Power of

Suppliers

1. The bargaining power of suppliers varies depending upon

the target segment.

2. The unorganized sector has a dominant position.

3. There are few players who have a slight edge over others

on account of being established players and enjoying brand

distinction.

Bargaining Power of

Buyers

1. Consumers are price sensitive

2. Availability of more choice.

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BCG MATRIX

The growth–share matrix (aka the product portfolio, BCG-matrix, Boston Consulting Group

analysis, port-folio diagram) is a chart that was created by Bruce D. Henderson for the Boston

Consulting Group in 1970 to help corporations to analyze their business units, that is, their

product lines. This helps the company allocate resources and is used as an analytical tool in

brand marketing, product management, strategic management, and portfolio analysis. Analysis of

market performance by firms using its principles has recently called its usefulness into question.

Cash Cows are where company has high market share in a slow-growing industry. These units

typically generate cash in excess of the amount of cash needed to maintain the business. They are

regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to

own as many as possible. They are to be "milked" continuously with as little investment as

possible, since such investment would be wasted in an industry with low growth.

Dogs, more charitably called pets, are units with low market share in a mature, slow-growing

industry. These units typically "break even", generating barely enough cash to maintain the

business's market share. Though owning a break-even unit provides the social benefit of

providing jobs and possible synergies that assist other business units, from an accounting point

of view such a unit is worthless, not generating cash for the company. They depress a profitable

company's return on assets ratio, used by many investors to judge how well a company is being

managed. Dogs, it is thought, should be sold off.

Question Marks (also known as problem children) are business operating in a high market

growth, but having a low market share. They are a starting point for most businesses. Question

marks have a potential to gain market share and become stars, and eventually cash cows when

market growth slows. If question marks do not succeed in becoming a market leader, then after

perhaps years of cash consumption, they will degenerate into dogs when market growth declines.

Question marks must be analyzed carefully in order to determine whether they are worth the

investment required to grow market share.

Stars are units with a high market share in a fast-growing industry. They are graduated question

marks with a market or niche leading trajectory, for example: amongst market share front-

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runners in a high-growth sector, and/or having a monopolistic or increasingly dominant USP

with burgeoning/fortuitous proposition drive(s) from: novelty, fashion/promotion, customer

loyalty goodwill and/or gearing, etc. The hope is that stars become next cash cows.

Stars require high funding to fight competitions and maintain a growth rate. When industry

growth slows, if they remain a niche leader or are amongst market leaders it‟s have been able to

maintain their category leadership stars become cash cows, else they become dogs due to low

relative market share.

As a particular industry matures and its growth slows, all business units become either cash cows

or dogs. The natural cycle for most business units is that they start as question marks, then turn

into stars. Eventually the market stops growing thus the business unit becomes a cash cow. At

the end of the cycle the cash cow turns into a dog.

As BCG stated in 1970:-

Only a diversified company with a balanced portfolio can use its strengths to truly capitalize on

its growth opportunities. The balanced portfolio has:-

stars whose high share and high growth assure the future;

cash cows that supply funds for that future growth; and

question marks to be converted into stars with the added funds.

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Currently, Big Bazaar has a high market share and has a fast growing industry. Therefore, it‟s a

STAR.

BIG BAZAAR

M

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W

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LOW HIGH

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CHAPTER - III

ANALYSIS – II

Marketing is "the activity, set of institutions, and processes for creating, communicating,

delivering, and exchanging offerings that have value for customers, clients, partners and

society at large." Marketing is a management process or social process or an effective

communication through which goods and services move from concept to the customer

and companies create value for customers and build strong customer relationships in

order to capture value from customers in return and also identifying, anticipating and

satisfying customer requirements profitably. Marketing mix is a deciding factor in

formulating marketing techniques for the success of a particular brand, commodity or

company. It includes the coordination of four elements called the 4P's of marketing:-

1. Identification, selection and development of a Product.

2. Determination of its Price.

3. Selection of a distribution channel to reach the customer's Place.

4. Development and implementation of a Promotional strategy.

In recent times, however, the 4P‟s have been expanded to the 7P‟s.

MARKETING MIX OF BIG BAZAAR:-

Product:- Big Bazaar offers a wide range of products which range from apparels,

food, farm products, furniture, child care, toys, etc. of various brands like Levis, Allen

Solly, Pepsi, Coca-Cola, HUL, ITC, P&G, LG, Samsung, Nokia, HP etc. Big Bazaar also

promotes a number of in house brands like:-

1. DJ & C

2. Tasty Treat

3. Clean Mate

4. Sensei

5. Care Mate

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6. Koryo and 44 other brands.

PRODUCT MIX

FASHION FOOD

Formal Wear

Casual Wear

Night Wear

T-shirt

Jeans

Sarees

Dress Materials

Ethnic Wears

Party Wears

Ready to Eat

Ready to Cook

Spices

Staples

International Foods

Tea & Coffee

CHILL STATION FASHION JEWELLERY

Soft Drink

Packaged Juice

Milk Items

Frozen Foods

Ice Creams

Footwear Bazaar

Beauty Care

Navara

Tanishq Wedding Jewellary

HOME & PERSONAL CARE ELECTRONIC BAZAAR

Shampoo

Detergent

Soap

Liquid Wash

Creams

Deodrants

Utensils

Crockery

Television Sets

Washing Machine

Refrigerator

Laptops

M-Bazaar

Small Appliances

Microwaves

Computer Accesories

FURNITURE BAZAAR OTHER SERVICES

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Living Room

Bed Room

Kitchen

Dinning Room

Kids Room

Been Bags

Paintings

Decorative Items

Mr. Right

Bakery

Loot Mart

Tulsi

Future Money

Future Generalli

Pricing:- The pricing objective at Big Bazaar is to get “Maximum Market Share”.

Pricing at Big Bazaar is based on the following techniques:-

1. Value Pricing ( EDLP – Every Day Low pricing ):- Big Bazaar promises

consumers the lowest available price without coupon clipping, waiting for discount

promotions, or comparison shopping.

2. Promotional Pricing:- Big Bazaar offers financing at low interest rate. The

concept of psychological discounting ( Rs.99, Rs.49, etc. ) is also used to attract

customers. Big Bazaar also caters on Special Event Pricing ( Close to Diwali,

Gudi Padva and Durga Pooja ).

3. Differentiated Pricing:- Differentiated pricing, i.e., difference in rate based on peak

and non-peak hours or days of shopping is also a pricing technique used in

Indian retail, which is aggressively used by Big Bazaar. For example, Wednesday

Bazaar.

Bundling :- It refers to selling combo-packs and offering discount to customers. The

combo-packs add value to customer and lead to increased sales. Big Bazaar lays a lot of

importance on bundling. For example 3 Good Day family packs at Rs.60 ( Price of 1

pack = Rs.22 ), 5 kg oil + 5 kg rice + 5 kg sugar for Rs.599.

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Place:- The Big Bazaar stores are operational across three formats – hypermarkets spread

over 40,000 - 45,000 sq.ft. , the Express format over 15,000 - 20,000 sq.ft. and the Super

Centers set up over 1 lakh sq.ft. Currently Big Bazaar operates in over 34 cities and

towns across India with 116 stores. Apart from the metros these stores are also doing

well in the tier II cities. These stores are normally located in high traffic areas. Big

Bazaar aims at starting stores in developing areas to take an early advantage before the

real estate value booms. Mr. Biyani is planning to invest around Rs.350 crores over the

next one year expansion of Big Bazaar. In order to gain a competitive advantage Big

Bazaar has also launched a website www.futurebazaar.com, which helps customers to

orders products online which will be delivered to their doorstep. This helps in saving a

lot of time of its customers.

Promotion:- The various promotion schemes used at Big Bazaar include:-

1. Saal ke sabse saste 3 din.

2. Hafte ka sabse sasta din “Wednesday bazaar”.

3. Exchange Offers “Junk swap offer”.

4. Future card ( 3% discount ).

5. Shakti card.

6. Advertisement ( print ad, TV ad, radio ).

7. Brand endorsement by Shikhar Dhawan.

8. Big Bazaar has come up with 3 catchy lines written on hoardings taking on

biggies like Westside, Shoppers stop and Lifestyle. They are:-

a) “Keep West - aSide. Make a smart choice!”

b) “Shoppers! Stop. Make a smart choice!”

c) “Change your Lifestyle. Make a smart choice!”

BELOW the LINE PROMOTION ABOVE the LINE PROMOTION

Coupons & Discount

Gifts with Purchases

Giving advertisements on

newspapers, T.V, internet

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Money Back Offers

Exchange Offers

Special Occasions Discounts

Own website which gives online

shopping option

Road shows carried out by staff

Big hoardings on road for displaying

special discount days

People:-

1. Well trained staff at stores to help people with their purchases.

2. Employ close to 10,000 people and employ around 500 more per month.

3. Well - dressed staff improves the overall appearance of store.

4. Use scenario planning as a tool for quick decision making multiple counters for

payment, staff at store to keep baggage and security guards at every gate, makes

for a customer – friendly atmosphere.

Process:- Big Bazaar places a lot of importance on the process right from the purchase

to the delivery of goods. When customers enter the stores they can add the products

they which to purchase in their trolley from the racks. There are multiple counters where

bill can be generated for purchases made. Big Bazaar also provides delivery of products

over purchases of Rs.1000. The goods dispatch and purchasing area has certain salient features

which include:-

1. Multiple counters with trolleys to carry the items purchased.

2. Proper display/posters of the place like Dal, Soap, etc.

3. Home delivery counters also started at many places.

Physical Evidence:- Products in Big Bazaar are properly stacked in appropriate racks.

There are different departments in the store which display similar kind of products.

Throughout the store there are boards/written displays put up which help in identifying

the location of a product. Moreover boards are put up above the products which give

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information about the products, its price and offers. Big Bazaar stores are normally „U

shaped‟ and well planned & designed.

Big Bazaar’s New Marketing Strategy

Big Bazaar has launched new marketing strategy which is based on Guerrilla Marketing.

Guerrilla marketing warfare strategies are a type of marketing warfare strategy designed

to wear down the enemy by a long series of minor attacks, using principles of surprise

and hit and run tactics. Attack, retreat, hide, then do it again, and again, until the

competitor moves on to other markets. Herein guerrilla force is divided into small groups

that selectively attack the target at its weak points. In the world of cut throat

competition, corporate use extension of the same strategy in marketing. Corporate like

Coke, Pepsi, etc. have been using the same for quite some time now and the latest

entrant is our very own „Future Group‟- Big Bazaar, Pantaloons, Future Bazaar, eZone

are all part of this group and they are taking on the biggies like Shoppers Stop,

Lifestyle and Tata‟s Westside. In order to do the same, Future Group have come up

with 3 catchy and cheeky ad campaigns which surely do catch our eyes and surely one

can‟t resist appreciating the same.

1. Keep West-aSide. Make a smart choice!

2. Shoppers! Stop. Make a smart choice!

3. Change Your Lifestyle. Make a smart choice!

Advertising:- The departmental store chain Big Bazaar has launched a commercial

sometime back to promote 'The Great Exchange Offer'. The commercial portrays how

customers can exchange any old and broken items (junk) and get new products at a

discounted price from Big Bazaar.

The 30 seconds film unfolds through the eyes of a cabbie in a busy city street, he is

intrigued by the disruptive visual of a well-dressed office executive carrying a bundle of

old newspaper and walking through a crowded place. The cabby then notices a young

office going lady in western wear carrying a rusty bucket filled with broken utensils, the

cabbie is absolutely confounded but continues to follow her with a broken tyre in his

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hand and comes across another absurd situation of a highly placed executive in a

chauffeur driven car with a broken commode on the top of the car. Penultimate situation

reveals everybody is heading towards Big Bazaar for the exchange offer; the cabbie

comes out of the store happy and excited after getting an amazing deal for his junk

tyre. Moving images are interspersed with supers that hi-light the amazing prices a

consumer can get for his junk. The sound track uses a typical kabada guy's shout as he

walks through city street calling for junk.

The month of January and February is generally a low-key affair in terms of customer

footfalls and revenue generation. Innovative, out of the box promotions is one of the

effective ways to draw customer attention and shore up the revenue. Historically

exchange schemes have been used to induce better sales, it also has a strong appeal

with the Indian mindset of getting value even for their junk, states an official release

from Big Bazaar.

Brand Ambassador:- A brand ambassador is a celebrity ( or an attractive or interesting

person ) used to help advertise a product or services. Big Bazaar, has roped in cricketer

Shikhar Dhawan(earlier it was M.S.Dhoni) as the brand ambassador for its new range of

fashion apparel. Dhawan would feature in a series of advertisements across all media.

Dhawan and Big Bazaar have a lot of synergies as the Indian one-day international

team‟s captain stands for the aspirations of youths, while Big Bazaar is looked up to by

millions of Indians to fulfill their aspirations.

In this way, Big Bazaar make full use of the marketing mix for a new venture which

earlier belongs to the unorganized retail sector, i.e., kirana stores. Application of the best

marketing practices helps Big Bazaar in a great way.

SPECIAL STRATEGIES:-

1. To minimize retailing cost.

2. Operating:- Fewer staff on the floor; one person for every 500 sq.ft.

3. Minimize the furniture cost.

4. Saving shelf space.

5. Way to deal unsold stock off.

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6. “Today‟s Price”:- Everyday a chosen product is being sold at lower than usual

price.

CUSTOMER SATISFACTION:-

Satisfaction is an overall psychological state that reflects the evaluation of a relationship

between the customer/consumer and a company-environment-product-service. Satisfaction

involves one of the following three psychological elements:- cognitive (thinking/evaluation),

affective (emotional/feeling) and behavioral. "Satisfaction" itself can refer to a number of

different facts of the relationship with a customer. For example, it can refer to any or

all of the following:-

1. Satisfaction with the quality of a particular product or service.

2. Satisfaction with an ongoing business relationship.

3. Satisfaction with the price-performance ratio of a product or service.

4. Satisfaction because a product/service met or exceeded the customer's expectations.

The achievement of customer satisfaction leads to company loyalty and product repurchase.

EXPECTATIONS AND CONSUMERS SATISFACTION:-

Expectations are beliefs (likelihood or probability) that a product/service (containing

certain attributes, features or characteristics) will produce certain outcomes (benefits-

values) given certain anticipated levels of performance based on previous affective,

cognitive, and behavioral experiences. Expectations are often seen as related to

satisfaction and can be measured as follows:-

1. IMPORTANCE:- Value of the product/service fulfilling the expectation.

2. OVERALL AFFECT-SATISFACTION EXPECTATIONS:- Like/Dislike of the

product/service.

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3. FULFILLMENT OF EXPECTATIONS:- The expected level of performance vs.

the desired expectations. This is “Predictive Fulfillment” and is a respondent-

specific index of the performance level necessary to satisfy.

4. EXPECTED VALUE FROM USE:- Satisfaction is often determined by the

frequency of use. If a product/service is not used as often as expected, the result

may not be as satisfying as anticipated. For example a motorcycle that sits in the

garage, an unused year subscription to the local fitness center/gym, or a little

used season pass to a ski resort would produce more dissatisfaction with the

decision to purchase than with the actual product/service.

IMPORTANCE OF CUSTOMER SATISFACTION:- Effective marketing

focuses on two activities:-

1. Retaining existing customers.

2. Adding new customers.

Customer satisfaction measures are critical to any product or service company because

customer satisfaction is a strong predictor of customer retention, customer loyalty and

product repurchase.

STRATEGIES OF BIG BAZAAR TO SATISFY AND ATTRACT

CUSTOMERS:-

1. Wednesday Bazaar:- Big Bazaar introduced the Wednesday Bazaar concept and

promoted it as “Hafte Ka Sabse Sasta Din”. It was mainly to draw customers to

the stores on Wednesdays, when least number of customers are observed.

According to the chain, the aim of the concept is "to give homemakers the power

to save the most and even the stores in the city don a fresh look to make

customers feel that it is their day".

2. Sabse Sasta Din:- With a desire to achieve sales of Rs.26 crores in a one single

day, Big Bazaar introduced the concept of "Sabse Sasta Din". The idea was to

simply create a day in a year that truly belonged to Big Bazaar. This was

launched on January 26, 2006 and the result was exceptional that police had to

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come in to control the mammoth crowd. The concept was such a huge hit that

the offer was increased from one day to three days in 2009 ( 24 to 26 Jan ) and

to five days in 2011 ( 22 - 26 Jan ).

3. Maha Bachat:- Maha Bachat was started off in 2006 as a single day campaign

with attractive promotional offers across all Big Bazaar stores. Over the years it

has grown into a 6 days bi-annual campaign. It has attractive offers in all its

value formats such as Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture

Bazaar - catering to the entire needs of a consumer.

4. The Great Exchange Offer:- On February 12, 2009 Big Bazaar launched "The

Great Exchange Offer", through which the customers can exchange their old goods

in for Big Bazaar coupons. Later, consumers can redeem these coupons for brand

new goods across the nation.

5. Pay-back Card:- At Future Group Big Bazaar, we believe in building long-lasting

relationships with customers. We encourage repeat customer visits through our

unique offers and special sale days. Future Group has taken the whole concept of

customer loyalty to the next level by joining hands with PAYBACK. PAYBACK

is India‟s largest and one of Europe‟s most successful multi-partner loyalty

programs. With PAYBACK, customers can shop, save and get rewarded. This

program enables consumers to collect millions of points across online and offline

partners – with just a single card. Customers can accumulate points across Future

Group formats, thereby making “shopping rewarding”. Our formats Big Bazaar,

Food Bazaar, Pantaloons, Central, Home Town, eZone, Brand Factory and Future

Bazaar are a part of the PAYBACK loyalty program.

6. T24 Program:- T24 will provide customers with a dual advantage all 24 hours of

the day - „Shop More, Talk More‟ and „Talk More, Shop More‟. Shopping and

talking on our mobile phones are among the two favorite activities for all of us

in India. With T24, we have been able to develop a unique customer value

proposition that combines these interests of the aspirational Indian. Customers will

get shopping benefits for talking and talk-time benefits each time they shop. We

believe that with our partners, Tata Teleservices Limited, we have been able to

develop a differentiated offering in the crowded telecom space and also increase

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the loyalty we enjoy among the millions of customers who patronize our stores.

T24 ( Talk 24 ) tariff plans reflect the competitive per-second rates being offered

for pre-paid customers on Tata Teleservices Limited‟s GSM network. In addition,

customers will be rewarded with free talktime for every purchase at Future Group

stores starting at Rs.10 to a maximum of Rs.350. Plans will keep evolving to

offer ever more attractive options to the customer.

Integrated Marketing Communication (IMC):-

Integrated marketing communications (IMC) is an approach to brand communications

where the different modes work together to create a seamless experience for the

customer and are presented with a similar tone and style that reinforces the brand‟s core

message. Its goal is to make all aspects of marketing communication such as advertising,

sales promotion, public relations direct marketing, online communications and social

media work together as a unified force, rather than permitting each to work in isolation,

which maximizes their cost effectiveness. IMC is becoming more significant in marketing

practice because of the reduced cost effectiveness of mass media and media

fragmentation. As consumers spend more time online and on mobile devices all

exposures of the brand need to tie together so they are more likely to be remembered.

Increasingly the strategies of brands cannot be understood by looking solely at their

advertising. Instead they can be understood by seeing how all aspects of their

communications ecosystem work together and in particular how communications are

personalized for each customer and react in real time, as in a conversation. Brand

strategies and their tactics can be viewed on the integrated brands site.

IMC Components of Big Bazaar:-

1. The Foundation - is based on a strategic understanding of the product and

market. This includes changes in technology, buyer attitudes and behavior and

anticipated moves by competitors.

2. The Corporate Culture - increasingly brands are seen as indivisible from the

vision, capabilities, personality and culture of the corporation.

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3. The Brand Focus - is the logo, corporate identity, tagline, style and core message

of the brand.

4. Consumer Experience - includes the design of the product and its packaging, the

product experience ( for instance in a retail store ) and service.

5. Communications Tools - includes all modes of advertising, direct marketing and

online communications including social media.

6. Promotional Tools - trade promotions, consumer promotions, personal selling,

database marketing and customer relations management, public relations and

sponsorship programs.

7. Integration Tools - software that enables the tracking of customer behavior and

campaign effectiveness. This includes customer relationship management (CRM)

software, web analytics, marketing automation and inbound marketing software.

Importance of IMC for Big Bazaar:- Several shifts in the advertising and media

industry have caused IMC to develop into a primary strategy for marketers:-

1. From media advertising to multiple forms of communication.

2. From mass media to more specialized ( niche ) media, which are centered on

specific target audiences.

3. From a manufacturer - dominated market to a retailer - dominated, consumer –

controlled market.

4. From general - focus advertising and marketing to data - based marketing.

5. From low agency accountability to greater agency accountability, particularly in

advertising.

6. From traditional compensation to performance - based compensation ( increased sales

or benefits to the company ).

7. From limited internet access to 24/7 internet availability and access to goods and

services.

8. It can create competitive advantage, boost sales and profits, while saving money,

time and stress.

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9. IMC wraps communications around customers and helps them move through the

various stages of the buying process. The organization simultaneously consolidates

its image, develops a dialogue and nurtures its relationship with customers.

10. This 'Relationship Marketing' cements a bond of loyalty with customers which can

protect them from the inevitable onslaught of competition. The ability to keep a

customer for life is a powerful competitive advantage.

11. IMC also increases profits through increased effectiveness.

12. Carefully linked messages also help buyers by giving timely reminders, updated

information and special offers which, when presented in a planned sequence, help

them move comfortably through the stages of their buying process.

13. Finally, IMC saves money as it eliminates duplication in areas such as graphics

and photography since they can be shared and used in say, advertising, exhibitions

and sales literature.

14. IMC also makes messages more consistent and therefore more credible. This

reduces risk in the mind of the buyer which, in turn, shortens the search process

and helps to dictate the outcome of brand comparisons

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CHAPTER - IV

SUMMARY, CONCLUSION & RECOMMENDATION

SUMMARY FOR MARKETING STRATEGIES:-

1. To increase the footfall of the store during the weekday.

2. Customers are more attracted towards discount schemes & sales.

3. Various product lines also attract customers to choose their retails stores.

4. Entertainment units & kids zone should be provided in retail stores in order to

cater more customers.

5. The after sales service of retail stores should be helpful & effective. This after

sales service creates loyal customers.

6. Major steps should be taken to stop shop-lifting in retail stores, as it is one of

the problematic characters for leading & large size retails stores.

7. The retail stores should provide various kinds of loyalty rights in order to provide

more customers.

SUGGESTIONS FOR MARKETING STRATEGIES:-

1. Retail stores should focus more on store ambience, store space & selling areas.

2. All the retails formats should have an effective loyalty program.

3. More focus on direct marketing should be given in order to attract more & more

customers.

4. Better after sales service & customer service should be provided in order to make

customers loyal.

5. To manage proper proportion of convenience, staple & impulse goods.

6. Along with SMS the retails formats should use more innovative ways to alert

customers.

7. The retail store should replenish the goods on time ( before the stock ends ).

8. A proper proportion of private & national brands should be kept in retail stores.

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SUMMARY FOR CUSTOMER SATISFACTION:-

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. 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 today‟s 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 Donald‟s 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 a dinner “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.

1. Variety:- Big Bazaar offers a wide variety of products of different prices and

different qualities satisfying most of its customers.

2. Quality:- Providing quality at low prices and having different types of products

for different income customers is another advantage.

3. Price:- As noted the prices and offers in Big Bazaar have been one of the main

attractions and reasons for its popularity. The price ranges and the products

offered are very satisfying to the customers.

4. Location:- The location of Big Bazaar has been mainly in the hear t of the city

or in the out skirts giving a chance to both the city and the people living outside

the city to shop.

5. Advertisements:- Big Bazaar has endorsed very popular figure like Shikhar

Dhawan and other famous personalities which has attracted a lot of customers.

This has resulted in increase of sale and the outdoor advertising techniques have

also helped Big Bazaar.

6. Middle Class Appeal:- Considering the fact that there are a lot middle class

families in India, Big Bazaar has had a huge impact on the middle class section

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of India, the prices, quality and sales strategy has helped in getting the middle

income groups getting attracted towards Big Bazaar.

7. Attractive Sales:- Big Bazaar has been known for its great sale and great offers.

Big Bazaar has had long lines of people waiting to get into the store for the

sale. Therefore, the sales of Big Bazaar has increased in a huge way due to the

sales and offers, thus this has been one of the main advantages of Big Bazaar.

SUGGESTIONS FOR CUSTOMER SATISFACTION:-

1. Store Layout:- The store layout and the assortment of goods is not the best at

Big Bazaar, as the quantity of goods sold is more, the arrangement and

assortment of goods in the store is the greatest. Hence at times customers find it

hard to find what they require, this leads to dissatisfaction of customers.

2. Lower Quality of Goods:- As Big Bazaar aims more toward the middle income

group, the quality of goods is not of the highest quality, and this is sometimes a

disadvantage as some would prefer better quality to the price, making customers

to search for different places.

3. Does Not Appeal to the Elite:- As mentioned above, the main customers are middle

income and a few high income groups. The elite do not like to shop at Big

Bazaar as the quality of goods is lower and they would prefer a higher price

and get a better brand, this decreases sales from the elite class.

4. Not Acclaimed for Very Good Service:- Big Bazaar is not known for high class

service. The staff recruited is not very well trained and the billing queues take a

long time to move, this irritates customers which makes them visit the store more

seldom.

5. Lower Quality of Goods:- As the store is trying to concentrate on the middle

income group the type of products used is not of the most superior quality and

most of the times nor branded, this may dissatisfy certain customers.

6. Consumer Satisfaction:- Long queues and lower quality leads to dissatisfaction of

customers. Due to factors mentioned above Big Bazaar shoppers are not always

satisfied, this is not positive for the company.

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Indian retail sector is witnessing one of the most hectic Marketing activities of all time. The

companies are fighting to win the hearts of customer who is God said by the business tycoons.

There is always a „first mover advantage‟ in an upcoming sector. In India, that advantage goes to

„BIG BAZAAR‟. It has brought about many changes in the buying habit of people. It has created

formats, which provide all items less than one roof at low rates.

The consumers preferences are changing and they are moving from traditional kirana stores to

modern retail outlet. It‟s the main challenge to the modern retail outlets to attract the customers

towards them from that of competitors. To attract more customers companies have to carry out

the promotional activities in unique way. Big Bazaar has maintained that uniqueness and has

succeeded in attracting customers.

The promotional activity of the company, which famous as fewer prices than others as it says

“nobody sells cheaper and better‟ is made its place in minds of customer. As the competition is

becoming stiff in the market the activities conducted by the company are unique, that have

brought fruitful result to the company. Among them sales promotion is one of the leading

activity or unique among all other activities and has high influence on customer walk-in.

Big Bazaar is undoubtedly the number one retailer in India. It has built a very emotional and

cordial relationship with its customers. It is also very intending to build long term relationship

with all its stakeholders which is very essential for a successful business venture. The company

is reaching out to all the sections of the society as it is creating a hypermarket where not only the

rich people shop but also the middle and the lower class customers come to enjoy the whole

shopping experience.

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BIBLOGRAPHY:-

1. www.futuregroup.in

2. www.en.wikipedia.org/wiki/Big_Bazaar

3. www.economictimes.indiatimes.com

4. It Happened In India - Kishore Biyani & Dipayan Baishya

5. Marketing Management - Philip Kotler