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 )

COCHIN-683106.S C M S SCMS – COCHIN SCMS CAMPUS. PRATHAP NAGAR.SREEKANTH S. ALUVA. 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. MUTTOM.V (FACULTY GUIDE) .

ALUVA.RAMAN NAIR (DIRECTOR) . Date : Dr. 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. PRATHAP NAGAR.S C M S SCMS – COCHIN SCMS CAMPUS. MUTTOM.V. COCHIN-683106.

I am highly indebted to all those who offered their tireless support during the course of the project and grateful to everybody’s contribution and collaboration ANUDEEP KAKKERLA (FO 43) . I would like to thank the Almighty God for helping me to complete this project successfully. Faculty SCMS-COCHIN who with friendly touch showed me the right path to accomplish the daunting task. Mr. I would also like to thank FUTURE VALUE RETAIL LTD. Chenna Bullanawar. J. Mr. During the entire period of the study. Marketing facultySSTM. Paulose. they were always availabel to show the right direction and advice in spite their heavy and hectic work schedule. I am highly indebted to both of them for their invaluable advice and intellectual guidance throughout my project. I would like to thank Prof. Store manager-Big Bazaar Hubli for his tremendous help and encouragement with my project.Sreekanth S. K.V. I would like to extend my sincere thanks to the SCMS faculty guide. I would like to express my heartfelt gratitude to my guide. and SCMS-COCHIN for giving me this opportunity and also for their generous support. Dean and project coordinator of SCMSCochin for his support and guidance to get this project done.ACKNOWLEDGEMENT First and foremost. I also thank Mr. Vilas Nair.

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 bazaar’s products and it’s 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 Bazaar’s 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 PLB’s 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 Bazaar’s 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 PLB’s 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 .

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

CHAPTER I Introduction and theoretical background of the study 1 .

Meaning of Private Label Brands: A private-label product is a manufactured good that a retailer purchases from a supplier. Manufacturers use either their own name. management consultancy A.3 percent.9 percent registered for China in the same period. T. it is expected to expand into many other categories as well. with the intention of renaming. with the growth of organized retail in India.8 percent since 1994. the retailer is responsible for the process of dressing up the product as its own. 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. that of a middleman. Kearney has placed India on top of its Global Retail Development Index in 2006. or a combination of both when they are marketing their products. Indian economy has seen average growth rate of 6. 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. given scope for high growth. Otherwise. marginally below 9. 2 . For the same. the manufacturer sometimes handles the packaging and labeling for the retailer for an additional charge. In the total retail market. The CSO estimated the economic growth of India for the last quarter of 2005-2006 to be 9. it is expected to grow at 25-30 percent. Depending on the agreement between a manufacturer and a retailer. organized retail in India is estimated to have only 3 percent share. the private label brands are also expected to grow as experienced in other developed countries. 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. Thus. repackaging and selling it under the distributor‟s own brand name. Currently.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. Thus.

The key to successful marketing management for today‟s 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. especially in rough economic times. opening up huge opportunities for private label branding.Private labeling occurs when middlemen. develop their own brand. These opportunities require the adoption of a different set of marketing and branding practices to support and propel the retailer‟s business and marketing ideals for its private label brands. in doing so. Yet. retailers have been liberating themselves from the traditional definition of private label marketing as being the poor relative of national brand consumer goods. Building a following from scratch through private-label products. Evolution of private label brands: The definition of private label branding has evolved significantly over time. Strategic brand management goes hand in hand with these endeavors to establish sustainable points of difference in each aisle and segment within the store. In recent years. history and existence of generic and store brands. and. 3 . is challenging because smaller retailers do not have the marketing budget compared to their larger-sized competition. Some would argue the term “private label” is a misnomer of great proportions. usually large retailers or wholesalers. 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. There is no question that the words “private label” acknowledges the birth.

As already mentioned. 2) In addition. manufacturers. chain profitability.It also spurs decisions about how to appropriately define the retailer‟s “own” brand portfolio in order to galvanize consumers to connect and reconnect with its franchise in a compelling manner. For example. private labelers have more control over pricing and are able to advantageously display their own brands for maximum impact. bargaining power over 4 . 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. a grocery store can quickly reduce the price of its own privatelabel brand in order to meet or beat a competitor's price. retailers like PLBs because of their potential to increase store loyalty. 3) Private-label brands are usually priced lower than comparable 4) Manufacturers' brands and therefore appeal to bargain-conscious consumers. 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. control over shelf space. Benefits of Private Label Brands: 1) Since manufacturers' (producers') brands have large advertising expenditures built into their cost. An example of a private-label brand would be a supermarket product bearing a store label with a product's name.

which include continuous development. hypermarkets. warehouse clubs. new product types. Fig-1 PLB conceptual frame: 5 . shopping malls. new category management and new privately own brands that meet customers‟ diverse demands. power centers. The marketing channels are facing increasingly fierce challenges. wholesale warehouses. shopping centers.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. more innovative types of retail channels. With rapid marketing advancement. such as department stores. theme/festival centers and outlet centers are develop and introduced into the market.

Fig-2 Global view of PLB: Fig-3 PLB penetration: 6 .

CHAPTER 2 Research Methodology 7 .

analyzing the fact and reaching certain conclusion either in the form of solutions towards the concerned problems.Research Methodology Research methodology is a way to systematically solve the research problem. formulating a hypothesis. 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 8 . 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. collecting the facts or data.

Title: A Study on private label brands vs national brands. Hubli. Sampling Plan:  Target Population: Individuals between the age group of 18 to 70 years will be chosen as the target population. which are essential for the study.  Sample Elements: The sample elements will consist of people who visit and shop from Big bazaar. Data collection mode: Two methods can be used to collect the relevant data. Data Collection: Data is the information which will be collected from various sources. 9 .  Sample Size: A sample of 150 customers can be taken in order to carry the study. Simple random sampling means each sample in the population has equal chance to be picked up for the study. Primary objective:  To understand the possibility of success when retailers introduce private brands.  To analyze whether customers actively seek for new brands or strict to old brands.  Sampling Procedure: The sampling procedure using here is simple random sampling. The people under this age group who are frequent visitors and shoppers to Big Bazaar. It concerns with gather accurate information about the problem. Secondary objectives:  To explore if buying choices are made based on brand loyalty.

Language barrier prevailed.  Secondary Data: Data is collected through books. By giving inputs to various methods in SPSS i can observe the impact of visual merchandising on buying decisions of customers.Karnataka. magazines. 10 . The analysis of data using SPSS will give the meaningful conclusion for my research. The data collection through questionnaire will be analyzed in detail and divided into various categories of preferences. Primary Data: Data will be collected to obtain desired information through structured questionnaire. 3. The study is confined just to Hubli. Limitations of the study: There are a few limitations to the study that may arise due to the following reasons: 1. newspapers and internet…etc Plan of Analysis: The collected data from both primary and secondary sources will be tabulated in the form of tables. Reluctance of the sample to give a proper feedback. 2.

CHAPTER 3 Industry & Company Profiles 11 .

medicine stores. organized into different departments such as clothing. etc. carry most of the brands available Supermarkets One stop shop catering to varied consumer needs 12 . paan shops etc. comparison between brands is possible Department Stores Large stores having a wide variety of products. the organized sector is largely concentrated in big cities. furniture. the retail industry in India was mostly unorganized consists of small and medium grocery store. appliances. 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. though initially. however with the change of tastes and preferences of the consumers. the industry is getting more popular these days and getting organized as well. house wares. kirana stores. More than 90% of retailing in India fall into the unorganized sector. Retail formats in India: Format Description The Value Proposition Complete range available for a given brand. 000 crore ($24 billion) by 2010. The Indian retail industry is the third largest in the world.INDUSTRY & COMPANY PROFILES: The retail scenario is one of the fastest growing industries in India over the last couple of years. certified product quality Greater choice to the consumer. Comprising of organized and unorganized sectors. Specialty Stores Focus on a specific consumer need. Organized retail in India is expected to grow 25-30 per cent yearly and is expected to increase from Rs35. subzi mandi. toys. 000crore in 2004-05 to Rs109.

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. it has more than 5 million sq. Established in 1998.Discount Stores Stores offering discounts on the retail price through selling high volumes and reaping economies of scale Larger than a supermarket. 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‟. Headquartered in Mumbai. ft retail space located across the country. Tata Group: Tata group is another major player in Indian retail industry with its subsidiary Trent. 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. sometimes with a warehouse appearance. ft retail space across the country. it also acquired the largest book and music retailer in India „Landmark‟ in 2005. all under one roof. ft by the year 2010. Variety of shops available to each other. It's growing at an enviable pace and is expected to reach 30 million sq. Low Prices Hypermarket Low prices. Trent owns over 4 lakh sq. RPG Group: RPG Group is one of the earlier entrants in the Indian retail market. 13 . vast choice available including services such as cafeterias Convenient location and extended Operating hours. which operates Westside and Star India Bazaar.

It's expecting its sales to reach Rs. 90. 8000-9000 crores by 2010. It will invest Rs.000 crores by 2010. the consumer spending in India climbed up to 75%.Reliance: Reliance is one of the biggest players in Indian retail industry. Allen Solly. and Peter England are quite popular. The brands like Louis Phillipe. 14 . By the year 2013.3 trillion by the year 2018. It is further expected to reach US$ 1. In the last four year. AV Birla Group: AV Birla Group has a strong presence in Indian apparel retailing. As the country has got a high growth rates. 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's also investing in other segments of retail. the organized sector is also expected to grow at a rate of 40%. As a result. the consumer spending has also gone up and is also expected to go up further in the future. the India retail industry is expected to grow further in the future days. Van Heusen. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market.

 Shoppers Stop has plans to invest Rs250 crore to open 15 new supermarkets in the coming three years. plans to have more than 50 stores across India by 2012–13. 15 .88 million this fiscal to add up to existing 2. PRIL intends to set up 155 Big Bazaar stores by 2014.3 million taking its total store count to 120.  India continues to be among the most attractive countries for global retailers. in single-brand retail trading. raising its total network to 275 stores.  Timex India will open another 52 stores by March 2011 at an investment of US$ 1. currently this industry employs 8% of the working population in India which is the second largest employment provider after agriculture.4 million sq ft retail space. 2.2 million. a division of Landmark Group. More than 80% of the retail sector in the country is concentrated in the large cities. approximately US$ 47. A study reveals that among the more than 20 locations. In the first six months of the current fiscal ending September 30. the company has recorded a net profit of US$ 1.43 million was the amount of Foreign Direct Investment (FDI) inflow as on September 2009. for organized retail in India.000 crore (US$45 billion) and could yield 10 to 15 million retail jobs in the coming five years. According to Government of India estimate the retail sector is likely to grow to a value of Rs.  Pantaloon Retail India (PRIL) plans to invest US$ 77. Mumbai was found to be the most preferred location followed closely by Bangalore in the second position. According to the Department of Industrial Policy and Promotion. Future Trends:  Lifestyle International. 2009.00.

Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas. The group owns several leading formats including Pantaloons. Kishore Biyani. The group's corporate credo is. 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. retail media and logistics. Pantaloon Retail (India) Limited: Pantaloon Retail (India) Limited. leisure and entertainment. is India‟s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Led by its flagship enterprise. Food Bazaar. is one of India's leading business houses with multiple businesses spanning across the consumption space.2007. Home Town. 'Rewrite rules. the company operates over 16 million square feet of retail space. eZone and Central. insurance. the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. group subsidiaries are present in consumer finance. While retail forms the core business activity of Future Group. led by its founder and Group CEO. 16 . Mr. Big Bazaar. by the US-based National Retail Federation. capital. as espoused in the group's core value of 'Indianness'. brand development. Pantaloon Retail was awarded the International Retailer of the Year .The Future Group: Future Group. Retain values'.000people. has over 1000 stores across 73 cities in India and employees over 30. Headquartered in Mumbai (Bombay). retail real estate development.

Food Bazaar. With the ever increasing array of private labels. At Big Bazaar. Blue Sky.The company‟s leading formats include Pantaloons. Future Value Retail Limited will continue to deliver more value to its customers. This entity has been created keeping in mind the growth and the current size of the company‟s value retail business. Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India) Limited. convenience and quality and Central. a chain of fashion outlets. 17 . supply partners. a supermarket chain. crockery. Top 10 and Star & Sitara. it has opened the doors into the world of fashion and general merchandise including home furnishings. you will definitely get the best products at the best prices . Big Bazaar and Food Bazaar. utensils. a uniquely Indian hypermarket chain. Some of its other formats include Brand Factory. sports goods and much more at prices that will surprise you. in over 70 cities across the country. As a focussed entity driving the growth of the group's value retail business. The company operates 134 Big Bazaar stores. 170 Food Bazaar stores. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. touch and feel of Indian bazaars with aspects of modern retail like choice.that's what we guarantee. cutlery. led by its format divisions. a chain of seamless destination malls. covering an operational retail space of over 6 million square feet. stakeholders and communities across the country and shape the growth of modern retail in India. Big Bazaar. And this is just the beginning. ALL. Big Bazaar plans to add much more to complete your shopping experience. blends the look. among other formats. Big Bazaar: Big Bazaar is not just another hypermarket. It caters to every need of your family.

Brief view of Big Bazaar’s Products and it’s own brands: Fashion Dept Food Bazaar GM-Home Gm-fashion Table-1 (Big bazaar’s products and it’s own brands) Denims & T-shirts AFL. SENSUI Staples PURE & FRESH Utensils Depot Luggage carriers 18 . 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.

CHAPTER 4 Analysis & Interpretation of Data 19 .

1 17 16.3% of male and 85.3 16 25.3% are frequent visitors to the Big Bazaar. 20 .8 100 47 40 32 18 13 150 % 31.3 12 8.3 26.8 5.3 8.8 16 16.1% of female are frequent visitors.1 28.7 100 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: 75.7 21. on the whole 89.6 5 100 57 Total % 28.1 29.1 3 8.New product seeking customers: gender segmentation Gender % Female 33. So trial customers are too less for Big Bazaar as compared to other hypermarkets.

7 6.8 5 100 57 Total % 31.6% are looking for brand with lower price.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 18 14 19 10. 37% of female makes buying decision based on brand and lower price.6 33.Buying decisions influencing factor: gender segmentation Gender % Female 53.3 21.8% of male makes buying decision based on brand. 21 . On the whole 66.3 16.8 100 68 32 25 10 15 150 % 45.3 0 8.8 15 10.3 26.8 0 10. Now customer‟s slogan has become „Brand with lower price‟.

3 13.4 15 5 5 100 57 Total % 8.7 53.9% of female are brand conscious customers.Brand conscious customers: gender segmentation Gender % Female 37.3 6.6 5 51.8 100 40 80 20 10 150 % 26.8 56.2% of male. 22 . 64.7 100 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: 89.1 26. So brand slogan shouldn‟t leave while introducing PLBs.6 32 5. On the whole 80% respondents are brand conscious.3 8.

3 5. non-food dept is the most brand sensitive area.3 5. Fashion Food Non food Electronics Foot wear Total Frequency 18 46 67 11 8 150 Percent Valid Percent 12.3 100.0 100. In the Food Bazaar.7% has given food segment as 2nd preference. 23 .3 7.7% are saying „non food segment‟ is the most preferred.7 7.7 44.0 12.7 30.Ranking the Segments where branded products are most preferred.0 30.0 Table-5 (Frequency analysis of Big Bazaar’s departments) 8 11 18 Fashion Food Non food 46 Electronics Foot wear 67 Fig-7 ( Big Bazaar’s most branded preferred departments) Interpretation: 44. 30.7 44.

1) 10(19.1) Brand promotion Always 15(34.4) 6(33.6) 6(26.7) 4(28.1) 4(22.6) Sometimes 6(14) Rarely 10(23.9) Mostly 11(25.3) Total 43(100) 47(31.1) 1(7.1) 5(27.7) 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 bazaar‟s most preferable five mediums are able to convince 58% of frequent visitors.2) 0 1(5.6) 52(100) 23(100) 18(100) Total Paging in the store 3(21.8) 11(21.3) 40(26. Advertising (print/digital) is being the best reachable and economical medium among all five.3) 7(30.3) 2(11.3) First visit 1(2.3) 18(12) 13(8.2) 9(17.2) 9(39.7) 32(21.4) 5(35.3) 4(7.6) 1(7.Medium of awareness of different available brands in Big Bazaar… Medium of brand awareness Advertising( Prior Sales print/digital) customer people 18(34.7) 1(4. 24 .

25 .Well known fashion private label brand… DJ&C AFL Spunk Knighthood Total Missing Total Customers Frequency 68 47 4 5 124 26 150 Percent 45.0 100.7 3.0 Table-7(PLB awareness frequency tabulation cross tabulation) 4 5 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 92.3 31.3 2.7 17.8 37.9 3.7% responded positively towards them. Both were penetrated well in men‟s wear segment.3 100.0 Valid Percent 54.2 4.3 82. Dhoni‟s endorsement is playing major role in creating this turn towards these 2 brands.

0 24.0 2.0 75. another 26% said pure & fresh brand is also a well known brand in food category. 26 .7 26.0 34.3 100.3 15.7 100.7% responded positively towards the brand Tasty treat. But both are facing tough competition from major FMCG manufacturers.7 46.0 2.8 11.Well known Food bazaar’s private label brand… Frequency 52 3 39 2 17 113 37 150 Percent Valid Percent 34.0 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 Bazaar’s PLB awareness) Interpretation: 34.3 1.5 1.

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. This was made by personal references and mouth talk in most of the times.6 48 5.8 100 136 14 150 % 90.Awareness on private label brands in electronics… Gender % Female 94.4 9 100 57 Total % 84.7 9.6% of male and 84.2% of female are aware of the electronics brand Koryo.2 15. 27 .

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: 82.8 1.5 19 61.1 8.2% of male and 89.8 0 100 39 89 12 6 4 150 % 26 59.3 8 4 2. Since PLS is being succeeded in the case of Big Bazaar PLB merchandising.Private label brands are economical… Gender % Female 21.3 56.4 4.3 32 7.4% of female are saying „Big Bazaar‟s private brands are economical‟. 28 .3 100 1 0 57 Total % 33.5 5 5.

7% of female are accepting „Big Bazaar‟s private brands are providing quality‟.5 13 43 37 11.3 7 100 46 77 14 8 5 150 % 30.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 35.8 3 4.3 5. so that PLB penetration can be more effortless.3 3.5% of male and 87.4 100 4 0 57 % 22.3 9. This attribute can compete with NB.8 64. 29 .9 5.7 51.3 5.3 100 Table-11(Perception on PLB’s 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 (PLB’s quality: gender segmentation) Interpretation: 78.

8% of brand conscious customers change their buying decision towards Big Bazaar‟s private brands.6) 10(53.3) 20(13.9) 4(14. Another 16.7) 80(53.8) 13(39.3) 10(6.4) 4(40) 32(50.8) 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) 4(14.5) 14(51.7) strongly agree agree disagree strongly disagree Total Always 5(18.8) 1(3) 1(10) Total Never 3(17.8) 3(17.3% who don‟t look for brand are positively responded towards Big Bazaar‟s private brands.9) 40(26. 30 .8) 19(57.6) 1(5.6) 5(50) 13(20.6) 0 0 3(4.Change of buying decision towards private label brands… Change of buying decision Mostly Sometimes Rarely 15(23.

5 24.1% of female who change their buying decision towards private brands prefer DJ & C.Choosing private label brand DJ & C rather another national brand… DJ & C preference % No 20.2 4 Total % 14. This made an U-turn towards PLBs.5 6 42.3 10 4. On the whole only 14. 31 .1% are not looking at DJ& C.5 41.8 9.8 4 7.7% of male and 56.2 17 25.8 23 52 31 8 10 % 18.9 25 6.4 9.1 100 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: 62.6 41.5 8.

9% voted for that.7 55.0 Lowers price Dhoni's Endorsement Quality Wide range of availability Latest models Total Customers Frequency 52 9 14 7 1 83 67 150 Percent 34.9 8.7 6.7 .3 4.8 16.3 44. And quality is being the second most preferred one where 16.0 Missing Total Table-14(Attributes frequency tabulation) 7 1 price Dhoni's Endorsement Quality 14 9 52 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.7 100.4 1.7 10.0 9. 32 .Most influencing factor to prefer private label brand DJ & C… Valid Percent 62.2 100.

Another 19.3 44.7 100.8 19.0 100.3 53.3% are saying „DJ & C doesn‟t provide wide range of availability‟.6 13.0 11 7.0 16 10.Lagging factor for DJ & C compared to another national brand… Valid Percent 3.3 83 67 150 55. 33 .7 44 29.0 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‟.3 9 6.0 Lower Price Dhoni's endorsement Quality Wide range of availability latest models Total Missing Customers Total Frequency Percent 3 2.3 10.

7 14.0 100.3 2.7 14.3 10.3 31.3% and 31.3 41.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 41.0 Table-16(Most preferred koryo appliance frequency tabulation) 3 47 62 Small Appliances Refrigerators TV sets Washing machines Air Conditioner 22 16 Fig-18(Analysis on preferred appliance in Koryo) Interpretation: 41. So Koryo brand penetration into small appliances can be key success in PLS.7 31.0 2.7 10. 34 .3% are having Koryo preference in small appliances and washing machines respectively.0 100.

5 100 47 40 32 18 13 150 % 31. 35 .9 22.8 13 9.3 26.1 8.3 29 23.5 10.Preferring newly launched private label brand Sach than other FMCG national brands… Sach preference % No 33.3 40 19 36 14.7 100 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. On addition 58% are frequently new product shifting customers who said „no to sach‟. only 14% said that „they aware of it‟. So promos on Sach brand can make it as most preferred FMCG brand.5 11 100 129 Total % 31 27.3 12 8.7 21.

7% respondents. highier visilibility in the media may increase Sach awareness.7 7. Another 30% said „instore promotions can increase Sach awareness‟.Factor which increase awareness of an FMCG private label brand Sach… Valid Percent 34.3 30.0 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 34.3 30.7 7.0 28. 36 .0 150 100.0 100.Sales people promotions alone are not enough to create more awareness on Sach.0 28.0 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.

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% don‟t prefer tasty treat. TT is facing tough competition from various competitors due to lack of proper promotion against them.

37

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.
38

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

86

Fig-23(Analysis on satisfaction level with PLB) Interpretation: 85.3% are satisfied with big Bazaar‟s 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.

39

81. providing current promotional activities on PLB need improvement. On the other side 91. Every move I made in this journey gave me immense and ironic facts about Private label brands. my baby steps moved towards reaching my research objective. and 42% of them have come to PLB for the 1st time.7% of male respondents are satisfied with PLB performance where 59% are first timers to PLB.Table-22: (Cross tabulation for Gender: PLB satisfaction: Impulsive buying towards PLB) Interpretation: From the 1st day. 40 . This delivered broad idea on „Power of PLB‟.6% of female respondents felt that „PLB succeed in providing good performance‟. So PLBs can be introduced into Big Bazaar without 2nd thought.

CHAPTER 5 Key findings & Conclusions 41 .

DJ & C is the brand which made higher customer shift from national brand. 3) Male customers were more brand conscious rather than female. Big Bazaar has competitive advantage over other store since it is the only hyper market in the city. it seems male fashion private brands need intensive care while entering. Tasty treat and Pure & Fresh are well known brands for the customers. Sach has least awareness among all other available private brands in the store. 2) Most of the customers are looking for brand with lower price. 6) Among five promo mediums that Big Bazaar-Hubli follows. 7) Among the fashion private brands. lower price and service. 4) Non food department is the area where customers wouldn‟t compromise at brand. 11) Even the brand conscious customers have shifted towards private brands. 12) Among fashon private brands. 5) On the other side foot wear and electronics are the least bothered about brands. 10) Customers felt that private brands are more economical and quality assured. Advt in print or digital is the most effective one. 9) The brand Koryo is being the preferred one in electronics segment . DJ & C and AFL are well known brands for the customers. 8) Among the Food Bazaar‟s private brands. performance of these brands ii quite well interms of quality. 13) The non food segment private brand. like wise we got Tasty treat in Food Bazaar and Koryo in electronics segment.KEY FINDINGS: 1) Considering Hubli demographics and their preference towards hyper market. 2nd would be the food department. 42 .

43 .Conclusion: Private label brands are all set to spoil the party for the national brands since recent times. Reliance trends. Hypercity and the Future value retail ltd plan to aggressively push own brands at par with established ones and the new ones. Lifestyle. Big Bazaar intends to promote it‟s 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. Top multi brand retailers including shoppers stop.

CHAPTER 6 Suggestions & Recommendations 44 .

Koryo is best choose for small appliance so this the time to grab attention towards it. 45 . 8) DJ & C should concentrate on providing latest models. other side private brand needs to be promoted as national brand. caremate and cleanmate need more promotional activities to be sensed by the customers frequently. Since it is brand sensitive area. so promos or melas should be private brand centric. 4) As of now better not to introduce more private brands in to the non food and food segments. 2) We have greater freedom with pricing strategy to create our own marketing plans. electronics private Sensui. 5) Foot wear and electronics is the area where more no of private brands can be introduced. Spunk and Matrix. 9) As of now. this was the reason for DJ & C rejection. 10) Higher visibility in possible media and proper visual merchandising can increase the awareness of the brand Sach. 3) Reduce dependence on brand names for sales. 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.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. 7) Fashion private brands such as Knighthood. Food bazaar‟s private brands Sach.

CHAPTER 7 BIBLIOGRAPHY 46 .

C.org/india/en/content/en/43270/Case-StudyMaximizing-Retail.htm / 29/08/2010. New Delhi. 47 . http://business.in / 12/08/2010. Marketing Research.co. New Delhi.R. Rajendra Nargundkar. http://acnielson.BIBLIOGRAPHY Books 1. Pearson Education Inc. 4.com/india-retail-industry/ / 21/06/2010. Kothari. Marketing Management. Tata McGraw Hill Education Private Limited.brc. Kotler Philip. 2.com/powerof plb/6677242406 / 30/07/2010.uk/plb242606 / 19/08/2010.smetoolkit. Annual Reports.rai.Sales / 23/07/2010.mapsofindia. http://www. New age international Publishers. 3. Research Methodology Methods and Techniques. 3rd edition: 2010. 2009-2010 Websites http://www.thehindubusinessline.org.com/2003/05/31/stories/2003053100 600600. RAI. 2nd revised edition:2004. http://india. http://www. 11th Edition.

CHAPTER 8 APPENDICES 48 .

Name of the Store: Big Bazaar Karnataka Location: Hubli. Please help me by filling out this questionnaire and be a part of my Marketing Research project.QUESTIONNAIRE Hi! Hope you enjoyed the shopping. I am a Brand conscious customer…     Strongly Agree Agree Neither Agree Nor Disagree Disagree 49 . 1. On which base you make buying decisions?      Brand Lower price Higher quality After sales service Wide range availability of products 3. Do you actively seek newly launched products when you go out for shopping?  Always  Mostly  Sometimes  Rarely  Never 2. 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.

 [ ] Fashion  [ ] Food  [ ] Non food  [ ] Electronics  [ ] Foot wear 5. Strongly Disagree 4. Rank the following Segments where branded products are most preferred. 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.”      Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree 50 . I am aware that “these Branded products are more economical. 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.

8.V Sets 51 .  Always  Mostly  Sometimes  Rarely  Never 10. Do you prefer DJ&C rather Levi's Signature / Famous Basics?   Yes [ ] No [ ] If yes. I change my buying decisions based on lower price / higher quality /discounts of these brands. rank the following attributes. Rank your preferences in KORYO choose.”      Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree 9.  [ ] Price  [ ] Dhoni‟s endorsement  [ ] Quality  [ ] Wide range of availability  [ ] Latest models 11. I feel “these branded products are providing more quality than other brands.  [ ] Small appliances  [ ] Refrigerators  [ ] T.

On the whole.” 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. rank your preferences  [ ] Free of chemical ingredients  [ ] Special offers  [ ] Taste  [ ] Packaging  [ ] Freshness 14. Do you prefer TASTY TREAT rather Slice / Maaza / Frooti?  Yes  No If yes. have you satisfied with these brands?  Highly satisfied  Satisfied  Neither satisfied nor dissatisfied  Dissatisfied  Highly dissatisfied If no. specify the reason 52 . [ ] Washing machines  [ ] Air conditioners 12. “Sachin Tendulkar is endorsing the brand SACH.

Demographics 1. Name: ______________________________________________ 2. Income range: 4k-10k / 10k-20k / 20k-30k /30k-40k/40k & above 7. Gender: Male / Female 3. Age: 10-20 / 20-30 / 30-40 / 40-50 /50 & above 4. Contact no: 53 . Education: 5. Occupation: Student/ Employee /Business /any other (please specify) _________________ 6.

About Hubli . churches. The city is noted for its handloom textile units and has many cotton ginning and processing mills. 54 . 00. the capital of Karnataka state and 550 KM south of Mumbai. There are other nearby airports like Belgaum (80 KM). The city of Dharwad is just east of the famous Western Ghats and is surrounded by hills and lakes. Not to be missed are the delicious Pedas.000. and monasteries that are worth a visit. mosques. industrial hub for North Karnataka Nearest Airport: The Airport at Hubli (18 KM).Dharwad Location : The twin cities of Hubli-Dharwad are located at a distance of around 420 KM north of Bangalore. This city metamorphosed into an important commercial centre for trade in cotton and iron during the reign of the Vijaynagara empire. Dharwad district (before Re-organization of 1997) covers an area of 13738 sq. Goa (160 KM). About Hubli Hubli is a major city of this district and is a famous industrial town. the specialty of the district. From each of above cities there are numerous luxury buses and trains. The city of Dharwad is the district head quarters and twin cities (HubliDharwad) are educational and financial. Bangalore (420 KM) and Mumbai (550 KM). The district has some of the important monuments like the beautiful temples. KM and with a twin city population of about 9. This historic town was known as Raya Hubli and also as Elaya Puravada Halli during the ancient times.

000. Broadband connectivity.Airport . ISDN at the rate of 64 /128 /384/512 Kbps.Fact Sheet . 18 trains passing through Hubli.Hubli .00 . . Futuristic water supply and sewage Normal connections. Intelligent networks.Leased line circuits Leased circuits of 64 Kbps. .Area .Water supply .Telecom services On par with best in Karnataka.Power .Climate Temperature 16-37 Degree C Semiarid climate 15.07 E .21 N 75. Hindi. leased lines . 2 / 8 / 140 Mb access can be provided from the users 55 .Languages Spoken English.Population 13738 SQ Km 9.Railway Available Hubli is well connected to Bangalore & Mumbai by rail network.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 . 2 Mbps available from any Location in NK to national or international destinations . Kannada & Marathi.Internet services .

for purchase of ready to occupy apartments . Rs 1. etc.000 for a two bedroom apartment Rs 700. Housing Rent 2.000 3.500-5.ft.000 for Purchase in Hubli city.Real Estate Commercial cost / sq ft: 15-30 for rental.Recreation Parks 72.Education . theaters. both at Hubli and Dharwad 56 .1% literacy.premises on optical fiber system .1. wide open spaces in addition to facilities like clubs.Health Care Fully equipped generic and specialty hospitals with state -of-art facilities. .000/ sq.

BIG BAZAAR-HUBLI 57 .

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