A Report of

STUDY ON PRIVATE LABEL BRAND VS NATIONAL BRAND

For

FUTURE VALUE RETAIL LTD Submitted to the Department of Management Studies in partial fulfillment of the Post Graduate Diploma in Management Under the Guidance of

Mr.SREEKANTH S.V. by ANUDEEP KAKKERLA BATCH-18 FO-43

S C

M S

SCMS COCHIN SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-683106 September 2010

DECLARATION

I, the undersigned, hereby declare that this project report entitled Study on private label brands vs National brands has been written and submitted under the guidance of Mr.Sreekanth S.V and is my original work. I understand that detection of any copying is liable to be punished in any way the school deems fit.

Date :

ANUDEEP KAKKERLA ( FO 43 )

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M S

SCMS COCHIN SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA,COCHIN-683106.

CERTIFICATE
This is to certify that the project work entitled ' Study on Private label brands vs National brands' has been carried out

under my guidance by Anudeep kakkerla in partial fulfillment of his Post Graduate Diploma in Management during the academic year 2009 - 2011.

Date:

Mr.SREEKANTH S.V (FACULTY GUIDE)

S C

M S

SCMS COCHIN SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-683106.

This is to certify that the project work entitled 'Study on Private label brands vs National brands ' has been carried out by Anudeep kakkerla in partial fulfillment of his Post Graduate Diploma in Management.

Date :

Dr.V.RAMAN NAIR (DIRECTOR)

ACKNOWLEDGEMENT

First and foremost, I would like to thank the Almighty God for helping me to complete this project successfully. I would also like to thank FUTURE VALUE RETAIL LTD. and SCMS-COCHIN for giving me this opportunity and also for their generous support. I would like to express my heartfelt gratitude to my guide, Mr. Chenna Bullanawar, Store manager-Big Bazaar Hubli for his tremendous help and encouragement with my project. I also thank Mr. Vilas Nair, Marketing facultySSTM. I am highly indebted to both of them for their invaluable advice and intellectual guidance throughout my project. During the entire period of the study, they were always availabel to show the right direction and advice in spite their heavy and hectic work schedule. I would like to thank Prof. K. J. Paulose, Dean and project coordinator of SCMSCochin for his support and guidance to get this project done. I would like to extend my sincere thanks to the SCMS faculty guide, Mr.Sreekanth S.V, Faculty SCMS-COCHIN who with friendly touch showed me the right path to accomplish the daunting task. I am highly indebted to all those who offered their tireless support during the course of the project and grateful to everybodys contribution and collaboration

ANUDEEP KAKKERLA (FO 43)

TABLE OF CONTENTS

Chapter No. 1

Topic Introduction and theoretical back ground of the study

Page No. 1

2 3 4 5 6 7 8

Research Methodology Industry and company Profiles Analysis and Interpretation of data Findings and conclusions Suggestions and Recommendations Bibliography Appendix

7 11 19 41 44 46 48

List of Tables
Table No Table-1 Table-2 Table-3 Table-4 Table-5 Table-6 Table-7 Table-8 Table-9 Table-10 Table-11 Table-12 Table-13 Particulars Big bazaars products and its own brands New product seeking customers and gender cross tabulation Buying decisions influencing factor: cross tabulation Brand conscious customers: gender cross tabulation Frequency analysis of Big Bazaars departments Customer frequency and Brand awareness Cross tabulation PLB awareness frequency tabulation cross tabulation PLB awareness frequency tabulation Electronics PLB and gender cross tabulation Perception on PLB and gender cross tabulation Perception on PLBs quality and gender cross tabulation Brand conscious customers and buying decision cross tabulation Perception about change in buying decisions with the influence of display Table-14 Table-15 Table-16 Table-17 Table-18 Table-19 Table-20 Table-21 Table-22 Attributes frequency tabulation Factor frequency tabulation Most preferred Koryo appliance frequency tabulation New product shift frequency and Sach preference cross tabulation Factor frequency tabulation Tasty treat preference and buying decision cross tabulation Influencing factor frequency tabulation New product shift frequency and satisfaction level tabulation Cross tabulation Gender: PLBS : New product shift 32 33 34 35 36 37 38 39 40 Page No 18 20 21 22 23 24 25 26 27 28 29 30 31

List of Figures
Figure No Figure-1 Figure-2 Figure-3 Figure-4 Figure-5 Figure-6 Figure-7 Figure-8 Figure-9 Figure-10 Figure-11 Figure12 Figure-13 Figure-14 PLB conceptual frame Global view of PLB PLB penetration New product seeking customers and gender cross tabulation Buying decisions influencing factor: cross tabulation Brand conscious customers: gender cross tabulation Frequency analysis of Big Bazaars departments Customer frequency and Brand awareness Cross tabulation PLB awareness frequency tabulation cross tabulation PLB awareness frequency tabulation Electronics PLB and gender cross tabulation Perception on PLB and gender cross tabulation Perception on PLBs quality and gender cross tabulation Brand conscious customers and buying decision cross tabulation Perception about change in buying decisions with the influence of display Figure-16 Figure-17 Figure-18 Figure-19 Attributes frequency tabulation Factor frequency tabulation Most preferred koryo appliance frequency tabulation New product shift frequency and Sach preference cross tabulation 32 33 34 35 Particulars Page No 5 6 6 20 21 22 23 24 25 26 27 28 29 30

Figure-15

31

Figure-20 Figure-21 Figure-22 Figure-23

Factor frequency tabulation Tasty treat preference and buying decision cross tabulation Influencing factor frequency tabulation New product shift frequency and satisfaction level tabulation

36 37 38 39

LIST ABBREVIATIONS

1) PRIL : Pantaloon Retail India Ltd 2) FVRL : Future value Retail Ltd 3) PLB : Private Label Brand 4) NB : National Brand 5) VM : Visual merchandising 6) ALL : A Little Large 7) DJ & C : Denim jeans & casuals 8) TT : Tasty treat 9) POS : Point of sale 10) POP : Point of purchase 11) SC : supply chain 12) FMCG :Fast Moving Consumer Goods 13) FDI : Foreign Direct Investment 14) CSO : Central Statistical Organization 15) GRDI : Global Retail Development Index 16) WRC : World Retail Congress 17) JV : Joint venture 18) SPSS : Statistical Package for Social sciences

EXECUTIVE SUMMARY

Private label brands are all set to spoil the party for the national brands since recent times. Top multi brand retailers including shoppers stop, Lifestyle, Reliance trends, Hypercity and the Future value retail ltd plan to aggressively push own brands at par with established ones and the new ones. Big Bazaar intends to promote its private labels as national brands and license it to other retailers where PLB contribute 20-25% of total sales. In this scenario PLB strategy is being the most preferred one to any retailer to survive in the industry. This research was started by finding out benefits and possibilities in introducing private labels against national brands. For this, Big Bazaar Indias biggest hyper market chain gave me the platform. Right from understanding various contributions made by private brands to various departments. And their margins, which were very much attractive. Finally through various data collection tools, data was analyzed for proper understanding of the problem. Few well known private brands of Big Bazaar keep showing great result and even competing with the national brands. On this fact plate, recommendations were designed to suit the applicability. Promoting private brands as similar to national brands will give positive results in terms of sales. As per the final figures from this show that Big Bazaar can introduce more private brands in the future.

CHAPTER I
Introduction and theoretical background of the study

Introduction and theoretical background of the study

Growth of organized retail chain in India has also led to growth of private label brands in India. Indian economy has seen average growth rate of 6.8 percent since 1994, putting purchasing power in the hands of customer. Though initial growth of private label brands in India has been limited to certain categories like grocery and apparel, it is expected to expand into many other categories as well. The CSO estimated the economic growth of India for the last quarter of 2005-2006 to be 9.3 percent, marginally below 9.9 percent registered for China in the same period. For the same, given scope for high growth, management consultancy A. T. Kearney has placed India on top of its Global Retail Development Index in 2006. Currently, organized retail in India is estimated to have only 3 percent share. In the total retail market, it is expected to grow at 25-30 percent. Thus, with the growth of organized retail in India, the private label brands are also expected to grow as experienced in other developed countries. The growth of private label brands in India presents an interesting opportunity for the retailer to understand the motivations of consumers behind choice of private label brands.

Meaning of Private Label Brands:

A private-label product is a manufactured good that a retailer purchases from a supplier, with the intention of renaming, repackaging and selling it under the distributors own brand name. Depending on the agreement between a manufacturer and a retailer, the manufacturer sometimes handles the packaging and labeling for the retailer for an additional charge. Otherwise, the retailer is responsible for the process of dressing up the product as its own. Thus, it can be said that Brands owned not by a manufacturer or producer but by a retailer or supplier who gets its goods made by a contract manufacturer under its own label are called private label brands. Manufacturers use either their own name, that of a middleman, or a combination of both when they are marketing their products.
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Private labeling occurs when middlemen, usually large retailers or wholesalers, develop their own brand. Building a following from scratch through private-label products, especially in rough economic times, is challenging because smaller retailers do not have the marketing budget compared to their larger-sized competition.

Evolution of private label brands:

The definition of private label branding has evolved significantly over time. Some would argue the term private label is a misnomer of great proportions. There is no question that the words private label acknowledges the birth, history and existence of generic and store brands. Yet, the term does not adequately capture the extent to which private label has progressed. Today's retail marketers are managing their proprietary brands with the same combination of care and innovation as manufacturers of national brands. In recent years, retailers have been liberating themselves from the traditional definition of private label marketing as being the poor relative of national brand consumer goods, and, in doing so, opening up huge opportunities for private label branding. These opportunities require the adoption of a different set of marketing and branding practices to support and propel the retailers business and marketing ideals for its private label brands. The key to successful marketing management for todays retailers is to understand the contribution and role of their proprietary or own brands in the long-term business strategy and marketing mix of the retail store and consider both the supply side and the demand side of the equation. Effective category management can enable retailers to solidify and optimize supply chain relationships. Strategic brand management goes hand in hand with these endeavors to establish sustainable points of difference in each aisle and segment within the store.

It also spurs decisions about how to appropriately define the retailers own brand portfolio in order to galvanize consumers to connect and reconnect with its franchise in a compelling manner.

Benefits of Private Label Brands:

1) Since manufacturers' (producers') brands have large advertising expenditures built into their cost, a private labeler is able to buy the same goods at a lower cost and thus sell them at a lower price and/or at a better profit margin. 2) In addition, private labelers have more control over pricing and are able to advantageously display their own brands for maximum impact. For example, a grocery store can quickly reduce the price of its own privatelabel brand in order to meet or beat a competitor's price. Or the grocery store can create a special point-of-purchase advertising display and/or give its brand predominant shelf space in order to boost sales. 3) Private-label brands are usually priced lower than comparable 4) Manufacturers' brands and therefore appeal to bargain-conscious

consumers. An example of a private-label brand would be a supermarket product bearing a store label with a product's name. As already mentioned, retailers like PLBs because of their potential to increase store loyalty, chain profitability, manufacturers. control over shelf space, bargaining power over

Introduction to private brand strategy:

Private brand strategy has become a superior category of management skills and a basis for establishing customers shopping preference in retail channels. The marketing channels are facing increasingly fierce challenges, which include continuous development, new product types, new category management and new privately own brands that meet customers diverse demands. With rapid marketing advancement, more innovative types of retail channels, such as department stores, hypermarkets, wholesale warehouses, warehouse clubs, shopping malls, shopping centers, power centers, theme/festival centers and outlet centers are develop and introduced into the market.

Fig-1 PLB conceptual frame:

Fig-2 Global view of PLB:

Fig-3 PLB penetration:

CHAPTER 2
Research Methodology

Research Methodology
Research methodology is a way to systematically solve the research problem, formulating a hypothesis, collecting the facts or data, analyzing the fact and reaching certain conclusion either in the form of solutions towards the concerned problems. Thus methodology not only talks about the research methods but also consider the logic behind the method we use behind the context of our research study.

Defining the research problem

Review about the concept of project

Sample designing

Collection of data through structured questionnaire

Analysis of data

Interpretation and report writing

Title: A Study on private label brands vs national brands. Primary objective: To understand the possibility of success when retailers introduce private brands. Secondary objectives: To explore if buying choices are made based on brand loyalty. To analyze whether customers actively seek for new brands or strict to old brands. Sampling Plan: Target Population: Individuals between the age group of 18 to 70 years will be chosen as the target population. The people under this age group who are frequent visitors and shoppers to Big Bazaar, Hubli. Sampling Procedure: The sampling procedure using here is simple random sampling. Simple random sampling means each sample in the population has equal chance to be picked up for the study. Sample Size: A sample of 150 customers can be taken in order to carry the study. Sample Elements: The sample elements will consist of people who visit and shop from Big bazaar. Data Collection: Data is the information which will be collected from various sources. It concerns with gather accurate information about the problem. Data collection mode: Two methods can be used to collect the relevant data, which are essential for the study.

 Primary Data: Data will be collected to obtain desired information through structured questionnaire. Secondary Data: Data is collected through books, magazines, newspapers and internetetc Plan of Analysis: The collected data from both primary and secondary sources will be tabulated in the form of tables. The data collection through questionnaire will be analyzed in detail and divided into various categories of preferences. By giving inputs to various methods in SPSS i can observe the impact of visual merchandising on buying decisions of customers. The analysis of data using SPSS will give the meaningful conclusion for my research. Limitations of the study: There are a few limitations to the study that may arise due to the following reasons: 1. Reluctance of the sample to give a proper feedback. 2. The study is confined just to Hubli,Karnataka. 3. Language barrier prevailed.

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CHAPTER 3
Industry & Company Profiles

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INDUSTRY & COMPANY PROFILES:

The retail scenario is one of the fastest growing industries in India over the last couple of years. The Indian retail industry is the third largest in the world. Comprising of organized and unorganized sectors, though initially, the retail industry in India was mostly unorganized consists of small and medium grocery store, medicine stores, subzi mandi, kirana stores, paan shops etc. however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. More than 90% of retailing in India fall into the unorganized sector, the organized sector is largely concentrated in big cities. Organized retail in India is expected to grow 25-30 per cent yearly and is expected to increase from Rs35, 000crore in 2004-05 to Rs109, 000 crore ($24 billion) by 2010. Retail formats in India: Format Description The Value Proposition Complete range available for a given brand, certified product quality Greater choice to the consumer, comparison between brands is possible Department Stores Large stores having a wide variety of products, organized into different departments such as clothing, house wares, furniture, appliances, toys, etc. Extremely large self-service retail outlets One stop shop catering to varied/ consumer needs

Branded Stores Exclusive showrooms either owned or franchised out by a manufacturer. Specialty Stores Focus on a specific consumer need, carry most of the brands available

Supermarkets

One stop shop catering to varied consumer needs

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Discount Stores

Stores offering discounts on the retail price through selling high volumes and reaping economies of scale Larger than a supermarket, sometimes with a warehouse appearance, generally located in quieter parts of the city Small self-service formats located in crowded urban areas An enclosure having different formats of in store retailers, all under one roof.

Low Prices

Hypermarket

Low prices, vast choice available including services such as cafeterias Convenient location and extended Operating hours. Variety of shops available to each other.

Convenience Stores Shopping Malls

Major Retailers in India

Future Group: Pantaloon is one of the biggest retailers in India with more than 450 stores across the country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the country. It's growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. Tata Group: Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India Landmark in 2005. Trent owns over 4 lakh sq. ft retail space across the country. RPG Group: RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Food world stores. Later it also opened the pharmacy and beauty care outlets Health & Glow.

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Reliance: Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to reach Rs. 90,000 crores by 2010. AV Birla Group: AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, and Peter England are quite popular. It's also investing in other segments of retail. It will invest Rs. 8000-9000 crores by 2010. Challenges facing Indian retail industry: The tax structure in India favors small retail business Lack of adequate infrastructure facilities High cost of real estate Dissimilarity in consumer groups Restrictions in Foreign Direct Investment Shortage of retail study options The Future: The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a rate of 40%.

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 According to Government of India estimate the retail sector is likely to grow to a value of Rs. 2,00,000 crore (US$45 billion) and could yield 10 to 15 million retail jobs in the coming five years; currently this industry employs 8% of the working population in India which is the second largest employment provider after agriculture. India continues to be among the most attractive countries for global retailers. According to the Department of Industrial Policy and Promotion, approximately US$ 47.43 million was the amount of Foreign Direct Investment (FDI) inflow as on September 2009, in single-brand retail trading. More than 80% of the retail sector in the country is concentrated in the large cities. A study reveals that among the more than 20 locations, for organized retail in India, Mumbai was found to be the most preferred location followed closely by Bangalore in the second position. Future Trends: Lifestyle International, a division of Landmark Group, plans to have more than 50 stores across India by 201213. Shoppers Stop has plans to invest Rs250 crore to open 15 new supermarkets in the coming three years. Pantaloon Retail India (PRIL) plans to invest US$ 77.88 million this fiscal to add up to existing 2.4 million sq ft retail space. PRIL intends to set up 155 Big Bazaar stores by 2014, raising its total network to 275 stores. Timex India will open another 52 stores by March 2011 at an investment of US$ 1.3 million taking its total store count to 120. In the first six months of the current fiscal ending September 30, 2009, the company has recorded a net profit of US$ 1.2 million.

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The Future Group:

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India's leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in over 71 cities and towns and 65 rural locations across India. The group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central. Pantaloon Retail was awarded the International Retailer of the Year - 2007, by the US-based National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group's core value of 'Indianness'. The group's corporate credo is, 'Rewrite rules, Retain values'.

Pantaloon Retail (India) Limited:

Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 16 million square feet of retail space, has over 1000 stores across 73 cities in India and employees over 30,000people.

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The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, ALL, Top 10 and Star & Sitara.

Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India) Limited. This entity has been created keeping in mind the growth and the current size of the companys value retail business, led by its format divisions, Big Bazaar and Food Bazaar.

The company operates 134 Big Bazaar stores, 170 Food Bazaar stores, among other formats, in over 70 cities across the country, covering an operational retail space of over 6 million square feet. As a focussed entity driving the growth of the group's value retail business, Future Value Retail Limited will continue to deliver more value to its customers, supply partners, stakeholders and communities across the country and shape the growth of modern retail in India.

Big Bazaar:
Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, you will definitely get the best products at the best prices - that's what we guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping experience.
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Brief view of Big Bazaars Products and its own brands: Fashion Dept Food Bazaar GM-Home Gm-fashion

Table-1 (Big bazaars products and its own brands) Denims & T-shirts AFL, DJ & C Fabrics & Cut pieces AFL Formal wear KNIGHTHOOD Casual wear DJ & C Party wear NYX Ethnic wear SPUNK Accessories RIA RITU Under garments SHYLA Night wear SHYLA Dress material RIA RITU Saree SHRISTHI Foot wear DJ &C Live kitchen Species Non food CM Ready to cook TT Fruits & Vegetables Furniture Electronics KORYO, SENSUI Staples PURE & FRESH Utensils Depot Luggage carriers

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CHAPTER 4
Analysis & Interpretation of Data

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New product seeking customers: gender segmentation Gender % Female 33.3 16 25.8 16 16.1 17 16.1 3 8.6 5 100 57 Total % 28.1 28.1 29.8 5.3 8.8 100 47 40 32 18 13 150 % 31.3 26.7 21.3 12 8.7 100

male Always Mostly Sometimes Rarely First visit Total 31 24 15 15 8 93

Table-2 (New product seeking customers and gender cross tabulation)

35 30 25 20 15 10 5 3 0 8 5 16 24 17 31

male
15

16

15

Female

always

mostly

Sometimes

Rarely

First visit

Fig-4 (New product seeking customers and gender segmentation) Interpretation: 75.3% of male and 85.1% of female are frequent visitors, on the whole 89.3% are frequent visitors to the Big Bazaar. So trial customers are too less for Big Bazaar as compared to other hypermarkets.

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Buying decisions influencing factor: gender segmentation Gender % Female 53.8 18 14 19 10.8 15 10.8 0 10.8 5 100 57 Total % 31.6 33.3 26.3 0 8.8 100 68 32 25 10 15 150 % 45.3 21.3 16.7 6.7 10 100

BD

Brand Lower price Higher quality After sales service wide range availability of products

male 50 13 10 10 10 93

Total

Table-3 (Buying decisions influencing factor: cross tabulation)

60 50 50 40 30 20 10 0 18 13 19 10 15 10 0 10 5

male Female

brand

lowerprice

higher quality

afetr sales wide range service avalability of products

Fig-5 (Buying decisions influencing factor: gender segmentation) Interpretation: 53.8% of male makes buying decision based on brand, 37% of female makes buying decision based on brand and lower price. On the whole 66.6% are looking for brand with lower price. Now customers slogan has become Brand with lower price.

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Brand conscious customers: gender segmentation Gender % Female 37.6 5 51.6 32 5.4 15 5 5 100 57 Total % 8.8 56.1 26.3 8.8 100 40 80 20 10 150 % 26.7 53.3 13.3 6.7 100

Strongly agree Agree Disagree Strongly disagree Total

male 35 48 5 5 93

Table-4 (Brand conscious customers: gender cross tabulation)

60 50 48 40 30 20 10 5 0 5 15 5 5 35 32

male Female

strongly agree

agree

disagree

strongly disagree

Fig-6 (Brand conscious customers: gender segmentation) Interpretation: 89.2% of male, 64.9% of female are brand conscious customers. On the whole 80% respondents are brand conscious. So brand slogan shouldnt leave while introducing PLBs.

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Ranking the Segments where branded products are most preferred.

Fashion Food Non food Electronics Foot wear Total

Frequency 18 46 67 11 8 150

Percent Valid Percent 12.0 12.0 30.7 30.7 44.7 44.7 7.3 7.3 5.3 5.3 100.0 100.0

Table-5 (Frequency analysis of Big Bazaars departments)

8 11

18

Fashion Food Non food

46

Electronics Foot wear

67

Fig-7 ( Big Bazaars most branded preferred departments) Interpretation: 44.7% are saying non food segment is the most preferred, 30.7% has given food segment as 2nd preference. In the Food Bazaar, non-food dept is the most brand sensitive area.

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Medium of awareness of different available brands in Big Bazaar Medium of brand awareness Advertising( Prior Sales print/digital) customer people 18(34.6) 6(26.1) 5(27.8) 11(21.2) 9(39.1) 4(22.2) 9(17.3) 7(30.4) 6(33.3) 4(7.7) 1(4.3) 2(11.1) 10(19.2) 0 1(5.6) 52(100) 23(100) 18(100) Total Paging in the store 3(21.4) 5(35.7) 4(28.6) 1(7.1) 1(7.1)

Brand promotion Always 15(34.9) Mostly 11(25.6) Sometimes 6(14) Rarely 10(23.3) First visit 1(2.3) Total 43(100)

47(31.3) 40(26.7) 32(21.3) 18(12) 13(8.7)

14(100) 150(100)

Table-6(Customer frequency and Brand awareness Cross tabulation)

20 18 16 14 12 10 8 6 4 2 0

always mostly Sometimes Rarely First visit

Fig-8(Analysis on customer visit: brand conscious customer segmentation) Interpretation: Big bazaars most preferable five mediums are able to convince 58% of frequent visitors. Advertising (print/digital) is being the best reachable and economical medium among all five.

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Well known fashion private label brand

DJ&C AFL Spunk Knighthood Total Missing Total Customers

Frequency 68 47 4 5 124 26 150

Percent 45.3 31.3 2.7 3.3 82.7 17.3 100.0

Valid Percent 54.8 37.9 3.2 4.0 100.0

Table-7(PLB awareness frequency tabulation cross tabulation)

DJ&C AFL
47 68

Spunk Knighthood

Fig-9(Analysis on PL brand awareness) Interpretation: The brands DJ & C and AFL are well known brands as 92.7% responded positively towards them. Both were penetrated well in mens wear segment. Dhonis endorsement is playing major role in creating this turn towards these 2 brands.

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Well known Food bazaars private label brand Frequency 52 3 39 2 17 113 37 150 Percent Valid Percent 34.7 46.0 2.0 2.7 26.0 34.5 1.3 1.8 11.3 15.0 75.3 100.0 24.7 100.0

Tasty treat Clean mate Pure & Fresh Care mate Sach Total Missing System Total

Table-8(PLB awareness frequency tabulation)

60 50 40 39 30 20 10 3 0 2 17 52

Tasty treat

Clean mate

Pure & Fresh

Care mate

Sach

Fig-10(Analysis on Food Bazaars PLB awareness) Interpretation:

34.7% responded positively towards the brand Tasty treat, another 26% said pure & fresh brand is also a well known brand in food category. But both are facing tough competition from major FMCG manufacturers.

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Awareness on private label brands in electronics Gender % Female 94.6 48 5.4 9 100 57 Total % 84.2 15.8 100 136 14 150 % 90.7 9.3 100

Koryo Sensei Total

male 88 5 93

Table-9(Electronics PLB and gender cross tabulation)

100 90 80 70 60 50 40 30 20 10 5 0 9 48 88

Koryo Sensei

male

Female

Fig-11(Analysis on Koryo and Sensui awareness) Interpretation:

94.6% of male and 84.2% of female are aware of the electronics brand Koryo. This was made by personal references and mouth talk in most of the times.

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Private label brands are economical Gender % Female 21.5 19 61.3 32 7.5 5 5.4 4.3 100 1 0 57 Total % 33.3 56.1 8.8 1.8 0 100 39 89 12 6 4 150 % 26 59.3 8 4 2.7 100

Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Total

male 20 57 7 5 4 93

Table-10(Perception on PLB and gender cross tabulation)

60 50 40 30 20 20 10 7 0 5 5 1 4 0 19 32 57

male Female

Strongly agree

Agree

Neither agree nor disagree

Disagree

Strongly disagree

Fig-12(Analysis on economical capability of PLB) Interpretation: 82.2% of male and 89.4% of female are saying Big Bazaars private brands are economical. Since PLS is being succeeded in the case of Big Bazaar PLB merchandising.

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Private label brands provide quality Total strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Total male 33 40 11 4 5 93 % Female 35.5 13 43 37 11.8 3 4.3 5.4 100 4 0 57 % 22.8 64.9 5.3 7 100 46 77 14 8 5 150 % 30.7 51.3 9.3 5.3 3.3 100

Table-11(Perception on PLBs quality and gender cross tabulation)

45 40 35 30 25 20 15 10 5 0 13 11 3 4 4 5 0 33 40 37

male Female

strongly agree

Agree

Neither agree nor disagree

Disagree

Strongly disagree

Fig-13 (PLBs quality: gender segmentation) Interpretation: 78.5% of male and 87.7% of female are accepting Big Bazaars private brands are providing quality. This attribute can compete with NB, so that PLB penetration can be more effortless.
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Change of buying decision towards private label brands Change of buying decision Mostly Sometimes Rarely 15(23.8) 13(39.4) 4(40) 32(50.8) 19(57.6) 5(50) 13(20.6) 0 0 3(4.8) 1(3) 1(10) Total Never 3(17.6) 10(53.8) 3(17.6) 1(5.9) 40(26.7) 80(53.3) 20(13.3) 10(6.7)

strongly agree agree disagree strongly disagree Total

Always 5(18.5) 14(51.9) 4(14.8) 4(14.8)

27(100) 63(100) 33(100) 10(100) 17(100) 150(100) Table-12(Brand conscious customers and buying decision cross tabulation)
35 30 25 20 15 10 5 0 Always Mostly Sometimes Rarely Never

strongly agree agree

disagree
strongly disagree

Fig-14(Analysis on shifting of brand conscious customer towards PLB ) Interpretation:

On the whole 43.8% of brand conscious customers change their buying decision towards Big Bazaars private brands. Another 16.3% who dont look for brand are positively responded towards Big Bazaars private brands.

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Choosing private label brand DJ & C rather another national brand DJ & C preference % No 20.5 6 42.2 17 25.3 10 4.8 4 7.2 4 Total % 14.6 41.5 24.4 9.8 9.8 23 52 31 8 10 % 18.5 41.9 25 6.5 8.1 100

Yes Always Mostly Sometimes Rarely Never 17 35 21 4 6

Total 83 100 41 100 124 Table-13( DJ & C preference and buying decision cross tabulation)

40 35 35 30 25 20 15 10 10 5 0 6 4 4 6 4 17 17 21

Yes No

Always

Mostly

Sometimes

Rarely

Never

Fig-15(DJ & C preference: Buying decision segmentation) Interpretation: 62.7% of male and 56.1% of female who change their buying decision towards private brands prefer DJ & C. On the whole only 14.1% are not looking at DJ& C. This made an U-turn towards PLBs.

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Most influencing factor to prefer private label brand DJ & C Valid Percent 62.7 10.8 16.9 8.4 1.2 100.0

Lowers price Dhoni's Endorsement Quality Wide range of availability Latest models Total Customers

Frequency 52 9 14 7 1 83 67 150

Percent 34.7 6.0 9.3 4.7 .7 55.3 44.7 100.0

Missing Total

Table-14(Attributes frequency tabulation)

price Dhoni's Endorsement Quality

14

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Wide range of availability Latest models

Fig-16(DJ & C preference attribute segmentation) Interpretation:

Lower price is the most influencing factor where 62.7% are expecting this from the private brands. And quality is being the second most preferred one where 16.9% voted for that.
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Lagging factor for DJ & C compared to another national brand Valid Percent 3.6 13.3 10.8 19.3 53.0 100.0

Lower Price Dhoni's endorsement Quality Wide range of availability latest models Total Missing Customers Total

Frequency Percent 3 2.0 11 7.3 9 6.0 16 10.7 44 29.3 83 67 150 55.3 44.7 100.0

Table-15(Factor frequency tabulation)

3 11

Price
9 44

Dhoni's endorsement Quality Wide range of availability latest models

16

Fig-17(Analysis on DJ & C preference lagging factor ) Interpretation: 53% said Lack of latest models is the lagging factor in choosing DJ & C as the preferred one. Another 19.3% are saying DJ & C doesnt provide wide range of availability.
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Most preferred electronic appliance in the brand Koryo

Small Appliances Refrigerators TV sets Washing machines Air Conditioner Total

Frequency 62 16 22 47 3 150

Percent Valid Percent 41.3 41.3 10.7 10.7 14.7 14.7 31.3 31.3 2.0 2.0 100.0 100.0

Table-16(Most preferred koryo appliance frequency tabulation)

47 62

Small Appliances Refrigerators TV sets Washing machines Air Conditioner

22 16

Fig-18(Analysis on preferred appliance in Koryo) Interpretation: 41.3% and 31.3% are having Koryo preference in small appliances and washing machines respectively. So Koryo brand penetration into small appliances can be key success in PLS.

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Preferring newly launched private label brand Sach than other FMCG national brands Sach preference % No 33.3 40 19 36 14.3 29 23.8 13 9.5 11 100 129 Total % 31 27.9 22.5 10.1 8.5 100 47 40 32 18 13 150 % 31.3 26.7 21.3 12 8.7 100

Yes always mostly Sometimes Rarely never Total 7 4 3 5 2 21

Table-17(New product shift frequency and Sach preference cross tabulation)

45 40 35 30 25 20 15 10 5 0 7 4 3 5 13 2 11 29 40 36

Yes No

always

mostly

Sometimes

Rarely

never

Fig-19(New product shift: Sach preference segmentation) Interpretation: 86% are unaware of the brand such, only 14% said that they aware of it. On addition 58% are frequently new product shifting customers who said no to sach. So promos on Sach brand can make it as most preferred FMCG brand.
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Factor which increase awareness of an FMCG private label brand Sach Valid Percent 34.7 7.3 30.0 28.0 100.0

Frequency Lower visibility in possible media Lack of sales people promotion Poor in store promotions Lack of proper visual merchandising Total 52 11 45 42

Percent 34.7 7.3 30.0 28.0

150 100.0 Table-18(Factor frequency tabulation)

60 50 40 30 20 10 0

52 45 42

11

Lower visibility in Lack of sales people possible media promotion

Poor in store promotions

Lack of proper visual merchandising

Fig-20(Analysis on Sach awareness) Interpretation:

As per 34.7% respondents, highier visilibility in the media may increase Sach awareness. Another 30% said instore promotions can increase Sach awareness.Sales people promotions alone are not enough to create more awareness on Sach.
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Preferring private label brand Tasty treat rather another national brand Tasty treat preference % No 18.3 5 36.6 13 19.5 10 7.3 2 18.3 1 100 31 Total % 16.1 41.9 32.3 6.5 3.2 100 20 43 26 8 16 113 % 17.7 38.1 23 7.1 14.2 100

Always Mostly Sometimes Rarely Never Total

Yes 15 30 16 6 15 82

Table-19(Tasty treat preference and buying decision cross tabulation)

35 30 30 25 20 15 15 10 5 5 0 13 10 6 2 1

Yes
16 15

No

Always

Mostly

Sometimes

Rarely

Never

Fig-21(Buying decision pattern: Tasty treat preference segmentation) Interpretation: 44.9% prefer Tasty treat, who change their buying decision towards private brands. 29% dont prefer tasty treat. TT is facing tough competition from various competitors due to lack of proper promotion against them.

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Factors that made the private label brand Tasty treat to be preferable by most of the customers Frequency Free of chemical ingredients Special offers Taste Packaging Freshness 2 53 17 4 6 Percent 1.3 35.3 11.3 2.7 4.0 Valid Percent 2.4 64.6 20.7 4.9 7.3 100.0

Total 82 54.7 Missing Customers 68 45.3 Total 150 100.0 Table-20(Influencing factor frequency tabulation)

60 50 40 30 20 17 10 2 0 4 6 53

Free of chemical ingredients

Special offers

Taste

packaging

Freshness

Fig-22(Analysis on tasty treat impressiveness) Interpretation: 64.6% felt that special offers of the tasty treat are the most attracting parameter to buy. Another 20.7 % said taste is 2nd most preferred one.
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On the whole, satisfaction level with the private label brands rather than national brands Frequency 42 86 3 19 150 Percent 28.0 57.3 2.0 12.7 100.0 Valid Percent 28.0 57.3 2.0 12.7 100.0

Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Total

Table-21(New product shift frequency and satisfaction level tabulation)

19 3 42

Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied

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Fig-23(Analysis on satisfaction level with PLB) Interpretation: 85.3% are satisfied with big Bazaars private brands, only 12.7% is yet to be satisfied. So PLB path in Big Bazaar is very focused due to strong efforts they keep making. This is the right time where Big Bazaar can come with new PLBs in to the market.

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Table-22: (Cross tabulation for Gender: PLB satisfaction: Impulsive buying towards PLB)

Interpretation: From the 1st day, my baby steps moved towards reaching my research objective. Every move I made in this journey gave me immense and ironic facts about Private label brands. This delivered broad idea on Power of PLB. 81.7% of male respondents are satisfied with PLB performance where 59% are first timers to PLB. On the other side 91.6% of female respondents felt that PLB succeed in providing good performance, and 42% of them have come to PLB for the 1st time. So PLBs can be introduced into Big Bazaar without 2nd thought, providing current promotional activities on PLB need improvement.

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CHAPTER 5 Key findings & Conclusions

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KEY FINDINGS: 1) Considering Hubli demographics and their preference towards hyper market, Big Bazaar has competitive advantage over other store since it is the only hyper market in the city. 2) Most of the customers are looking for brand with lower price. 3) Male customers were more brand conscious rather than female, it seems male fashion private brands need intensive care while entering. 4) Non food department is the area where customers wouldnt compromise at brand, 2nd would be the food department. 5) On the other side foot wear and electronics are the least bothered about brands. 6) Among five promo mediums that Big Bazaar-Hubli follows, Advt in print or digital is the most effective one. 7) Among the fashion private brands, DJ & C and AFL are well known brands for the customers. 8) Among the Food Bazaars private brands, Tasty treat and Pure & Fresh are well known brands for the customers. 9) The brand Koryo is being the preferred one in electronics segment . 10) Customers felt that private brands are more economical and quality assured. 11) Even the brand conscious customers have shifted towards private brands, performance of these brands ii quite well interms of quality, lower price and service. 12) Among fashon private brands, DJ & C is the brand which made higher customer shift from national brand, like wise we got Tasty treat in Food Bazaar and Koryo in electronics segment. 13) The non food segment private brand, Sach has least awareness among all other available private brands in the store.
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Conclusion:
Private label brands are all set to spoil the party for the national brands since recent times. Top multi brand retailers including shoppers stop, Lifestyle, Reliance trends, Hypercity and the Future value retail ltd plan to aggressively push own brands at par with established ones and the new ones. Big Bazaar intends to promote its private labels as national brands and license it to other retailers where PLB contribute 20-25% of total sales. In this scenario possibility of success is very high if Big Bazaar continues to introduce more private brands.

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CHAPTER 6

Suggestions & Recommendations

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Suggestions and Recommendations:

1) This is the time to create a positive image of private brands for your customer which will lead to stronger brand loyalty. 2) We have greater freedom with pricing strategy to create our own marketing plans, so promos or melas should be private brand centric. 3) Reduce dependence on brand names for sales, other side private brand needs to be promoted as national brand. 4) As of now better not to introduce more private brands in to the non food and food segments. Since it is brand sensitive area. 5) Foot wear and electronics is the area where more no of private brands can be introduced. 6) Advertising in print/digital media is being the best medium for promotions so this is the place where customers get aware of new brands. 7) Fashion private brands such as Knighthood, Spunk and Matrix, electronics private Sensui, Food bazaars private brands Sach, caremate and cleanmate need more promotional activities to be sensed by the customers frequently. 8) DJ & C should concentrate on providing latest models, this was the reason for DJ & C rejection. 9) As of now, Koryo is best choose for small appliance so this the time to grab attention towards it. 10) Higher visibility in possible media and proper visual merchandising can increase the awareness of the brand Sach.

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CHAPTER 7
BIBLIOGRAPHY

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BIBLIOGRAPHY Books 1. Kotler Philip, Marketing Management, Pearson Education Inc. 11th Edition. 2. C.R. Kothari, Research Methodology Methods and Techniques, New age international Publishers, New Delhi, 2nd revised edition:2004. 3. Rajendra Nargundkar, Marketing Research, Tata McGraw Hill Education Private Limited, New Delhi, 3rd edition: 2010. 4. Annual Reports, RAI, 2009-2010

Websites

http://www.rai.co.in / 12/08/2010. http://www.thehindubusinessline.com/2003/05/31/stories/2003053100 600600.htm / 29/08/2010. http://india.smetoolkit.org/india/en/content/en/43270/Case-StudyMaximizing-Retail- Sales / 23/07/2010. http://www.brc.org.uk/plb242606 / 19/08/2010. http://business.mapsofindia.com/india-retail-industry/ / 21/06/2010. http://acnielson.com/powerof plb/6677242406 / 30/07/2010.

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CHAPTER 8

APPENDICES

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QUESTIONNAIRE
Hi! Hope you enjoyed the shopping. It would be really great if you can help me (PGDM student of SCMS-COCHIN) in understanding few things that would make shopping effective and entertaining. Please help me by filling out this questionnaire and be a part of my Marketing Research project.

Name of the Store: Big Bazaar Karnataka

Location: Hubli,

1. Do you actively seek newly launched products when you go out for shopping? Always Mostly Sometimes Rarely Never 2. On which base you make buying decisions?

Brand Lower price Higher quality After sales service Wide range availability of products

3. I am a Brand conscious customer

Strongly Agree Agree Neither Agree Nor Disagree Disagree

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Strongly Disagree

4. Rank the following Segments where branded products are most preferred. [ ] Fashion [ ] Food [ ] Non food [ ] Electronics [ ] Foot wear 5. How do you know about different available brands in Big Bazaar? Brand promotions Advertising(Print or Digital) Prior customer(Reference) Sales people Paging in the store 6. On which of these brands you are most aware of ? DJ&C AFL Spunk Knighthood Matrix Tasty treat Clean Mate Pure & Fresh Care Mate Sach Koryo Sensei

7. I am aware that these Branded products are more economical.

Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree

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8. I feel these branded products are providing more quality than other brands.

Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree

9. I change my buying decisions based on lower price / higher quality /discounts of these brands. Always Mostly Sometimes Rarely Never 10. Do you prefer DJ&C rather Levi's Signature / Famous Basics?

Yes [ ] No [ ]

If yes, rank the following attributes.

[ ] Price [ ] Dhonis endorsement [ ] Quality [ ] Wide range of availability [ ] Latest models

11. Rank your preferences in KORYO choose. [ ] Small appliances [ ] Refrigerators [ ] T.V Sets

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 [ ] Washing machines [ ] Air conditioners 12. Sachin Tendulkar is endorsing the brand SACH. are you aware? Yes No Lower visibility in possible media Lack of sales people promotion Poor in-store promotions Lack of proper visual merchandising 13. Do you prefer TASTY TREAT rather Slice / Maaza / Frooti? Yes No If yes, rank your preferences [ ] Free of chemical ingredients [ ] Special offers [ ] Taste [ ] Packaging [ ] Freshness 14. On the whole, have you satisfied with these brands? Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly dissatisfied

If no, specify the reason

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Demographics

1. Name: ______________________________________________

2. Gender: Male / Female

3. Age: 10-20 / 20-30 / 30-40 / 40-50 /50 & above

4. Education:

5. Occupation: Student/ Employee /Business /any other (please specify) _________________

6. Income range: 4k-10k / 10k-20k / 20k-30k /30k-40k/40k & above

7. Contact no:

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About Hubli - Dharwad

Location : The twin cities of Hubli-Dharwad are located at a distance of around 420 KM north of Bangalore, the capital of Karnataka state and 550 KM south of Mumbai. The city of Dharwad is just east of the famous Western Ghats and is surrounded by hills and lakes. Dharwad district (before Re-organization of 1997) covers an area of 13738 sq. KM and with a twin city population of about 9, 00,000. The city of Dharwad is the district head quarters and twin cities (HubliDharwad) are educational and financial, industrial hub for North Karnataka Nearest Airport: The Airport at Hubli (18 KM). There are other nearby airports like Belgaum (80 KM), Goa (160 KM), Bangalore (420 KM) and Mumbai (550 KM). From each of above cities there are numerous luxury buses and trains. About Hubli

Hubli is a major city of this district and is a famous industrial town. This historic town was known as Raya Hubli and also as Elaya Puravada Halli during the ancient times. This city metamorphosed into an important commercial centre for trade in cotton and iron during the reign of the Vijaynagara empire. The city is noted for its handloom textile units and has many cotton ginning and processing mills. The district has some of the important monuments like the beautiful temples, churches, mosques, and monasteries that are worth a visit. Not to be missed are the delicious Pedas, the specialty of the district.

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Fact Sheet - Hubli

- Area - Population 13738 SQ Km 9,000,00

- Languages Spoken English, Hindi, Kannada & Marathi. - Climate Temperature 16-37 Degree C Semiarid climate 15.21 N 75.07 E - Airport - Railway Available Hubli is well connected to Bangalore & Mumbai by rail network. 18 trains passing through Hubli. - Power - Water supply - Telecom services On par with best in Karnataka. Futuristic water supply and sewage Normal connections; ISDN at the rate of 64 /128 /384/512 Kbps; Intelligent networks; Broadband connectivity; leased lines - Internet services - Network Access PSTN Dial up / ISDN Dial up / Leased Any data rates like 2/8 /34 /140 Mbps and multiple access from customer premises on optical fiber system Redundancy provided by optical fibers in SDH ring - Leased line circuits Leased circuits of 64 Kbps, 2 Mbps available from any Location in NK to national or international destinations . 2 / 8 / 140 Mb access can be provided from the users
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premises on optical fiber system

- Real Estate

Commercial cost / sq ft: 15-30 for rental, Rs 1,000 3,000 for Purchase in Hubli city. Housing Rent 2,500-5,000 for a two bedroom apartment Rs 700- 1,000/ sq.ft. for purchase of ready to occupy apartments

- Education - Recreation Parks

72.1% literacy. wide open spaces in addition to facilities like clubs, theaters, etc.

- Health Care

Fully equipped generic and specialty hospitals with state -of-art facilities, both at Hubli and Dharwad

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BIG BAZAAR-HUBLI

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