Retailing in Future Group

RETAILING IN FUTURE GROUP
RETAIL IN FUTURE GROUP

BACHELOR IN MANAGEMENT STUDIES (2012-2013) Submitted BY MR. PAL MAHESH TBMS-333
SMT. PARMESHWARIDEVI DURGADUTT TIBREWALA LIONS JUHU COLLEGE OF ARTS, COMMERCE & SCIENCE J.B NAGAR, ANDHERI (EAST) MUMBAI-400059
RETAIL IN FUTURE GROUP

BACHELOR IN MANAGEMENT STUDIES (2012-2013) Submitted In partial fulfillment of the requirements For the Award of Degree of BACHELOR IN MANAGEMENT STUDIES BY MR. PAL MAHESH TBMS-333
SMT. PARMESHWARIDEVI DURGADUTT TIBREWALA LIONS JUHU COLLEGE OF ARTS, COMMERCE & SCIENCE J.B NAGAR, ANDHERI (EAST) MUMBAI-400059
CERTIFICATE
This is to certify that Mr. PAL MAHESH of BACHELOR IN MANAGEMENT STUDIES (2012-2013) has successfully completed the project on RETAIL IN FUTURE GROUP under the guidance of PROF. MARUTHUVAR ESWARI.
COURSE COORDINATOR
COLLEGE SEAL
PRINCIPAL
PROJECT GUIDE / INTERNAL EXAMINER
EXTERNAL EXAMINER
DECLARATION
I,
Mr.
PAL
MAHESH
the
student
of
BACHELOR
IN
MANAGEMENT STUDIES (2012-2013) hereby declare that I have completed project on RETAIL IN FUTURE GROUP. The information submitted is true and original to the best of my knowledge.
SIGNATURE OF STUDENT Mr. PAL MAHESH ROLL NO. TBMS / 333
ACKNOWLEDGEMENT
I would like to thanks the teacher of SMT. PARMESHWARIDEVI DURGAUTT TIBREWALA LIONS JUHU COLLEGE OF ARTS, COMMERCE AND SCIENCE affiliated by University of Mumbai for their excellent suggestions.
A special thanks to PROF. MARUTHUVAR ESWARI for her constant encouragement and guidance from the beginning with the never ending patience. Her constant support and efforts helped me to complete my project on time
I would like to thanks to some of my respected professors like Dr. Nanda Indulkar Miss. Rakhee Soni , Miss. Seema Horande, and Mr. Shahid Qureshi without whom the project would have to not come to end.
I also take opportunity to thank my entire friend for cooperating with me and to all the people who are and indirectly connected to the project. Above all, I thanks to our principle Dr. Trishla Mehta for their cooperation during the time of completion of project.
Mr. PAL MAHESH ROLL NO. TBMS / 333 DATE: PLACE: MUMBAI
INDEX
CH.
1 2 3 4 5 6
TOPIC
INTRODUCTION OBJECTIVE OF THE STUDY RESEARCH AND METHODOLOGY SWOT ANALYSIS STRATEGY OF FUTURE GROUP CASE STUDY
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1 - 22 23 - 24 25 - 30 31 - 43 44 53 54 - 56
CHAPTER 1. INTRODUCTION
1.1 INTRODUCTION IN FUTURE GROUP Future Group understands the soul of Indian consumers. As one of Indias retail pioneers with multiple retail formats, we connect a iverse and passionate community of Indian
buyers, sellers and businesses. The collective impact on business is staggering: Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. And this number is set to grow.
Future Group employs 35,000 people directly from every section of our society. We source our supplies from enterprises across the country, creating fresh employment, impacting livelihoods, empowering local communities and fostering mutual growth. We believe in the Indian dream and have aligned our business practices to our larger objective of being a premier catalyst in Indias consumption-led growth story.
Working towards this end, we are ushering positive socio-economic changes in communities to help the Indian dream fly high and the Sone Ki Chidiya so ar once again. This approach remains embedded in our ethos even as we rapidly expand our footprints deeper into India.
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1.2 VISION OF FUTURE GROUP BUILDING A NEW INDIA Future Groups vision of inclusive growth for a harmonious society, points to a future in which the entire population can enjoy a better quality of life. We aim to serve as a catalyst that stimulates the use of inclusiveness as a powerful development tool. Future Group aims to create and sustain an environment conducive to the domestic growth of India by partnering with various stakeholders and playing a proactive role in Indias development process.
Future Group believes in broad-based growth, the fruits of which are not concentrated in the hands of few but shared by the community as a whole. This is the way towards achieving the dual goal of profitable and socially responsible growth. Our initiatives in inclusive development include livelihood issues, diversity management, skill development and protecting the environment, to name a few. Modern Indian retail can help improve incomes and provide opportunities for growth to individuals with lower education levels or from the un organised sector. With fair wages and benefits, opportunities for further development and growth and a better working environment, modern retail offers much more than most alternatives available to such individuals.
Future Group focuses on three key enablers for inclusive growth: employability, innovation and entrepreneurship. While employability helps create a qualified and skilled workforce, innovation and entrepreneurship help drive growth and generate employment. 1.3 KISHOR CEO, BIYANI FUTURE GROUP Independent India may be over sixty years old but a large majority of Indians today are not even in their middle age. Life expectancy has crossed seventy years, but more than 890 million Indians are below the age of forty-five. Half of the country hasnt yet reached the age of twenty-five. We are a Republic of the Young wherein the young generation has never been part of our socialist era and doesn t know scarcity. They value choice and freedom and have seen India winning in every arena, be it sports, business, technology or even beauty pageants. In effect, they are far more confident about their place in the world and justifiably proud of their Indian origins. They not only believe in change, but are confident that they can affect change. A young working population will not only drive productivity but also set a spiraling effect on consumption and income generation. A young nation is willing to work harder, earn higher and spend more on buying goods and services.
1.4 HISTORY Big Bazaar was launched in September, 2001 with the opening of its first four stores in Calcutta, Indore, Bangalore and Hyderabad in 22 days. Within a span of ten years, there are now 161 Big Bazaar stores in 90 cities and towns across India. By September 2012 BIG BAZAAR will have two more stores in North east namely SILCHAR and JORHAT in Assam.
Big Bazaar was started by Kishor Biyani, the Group CEO and Managing Director of Pantaloon Retail India. Though Big Bazaar was launched purely as a fashion format including apparel, cosmetics, accessory and general merchandise, over the years Big Bazaar has included a wide range of products and service offerings under their retail chain. The current formats includes Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar. The inspiration behind this entire retail format was from Saravana Stores, a local store in T. Nagar, Chennai
The stores are customized to provide the feel of mandis and melas while offering the modern retail features like Quality, Choice and
Convenience. As the modern Indian family's favorite retail store, Big Bazaar is popularly known as the "Indian Walmart".
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On successful completion of ten years in Indian retail industry, in 2011, Big Bazaar has come up a new logo with a new tag line: Naye India Ka Bazaar, replacing the earlier one: 'Isse Sasta Aur Accha Kahin Nahin'. Future Group chairman KishorBiyani to cut 18 deals to kill all debt by March 2013 Chaitali Chakravarty & Arun Kumar, ET Bureau Mar 19, 2012, 07.00AM IST
NEW DELHI: The Future Group, India's largest retailer, is negotiating as many as 18 divestment and fund-raising transactions simultaneously, including inducting a strategic partner in its flagship Big Bazaar stores, as it seeks to pare its near Rs 7,800-crore debt and put finances back on track. "We are working on 18 deals and expect to consummate many of the transactions early next fiscal. We will be a zero-debt company by March 2013," said FutureGroupChairman KishoreBiyani. "We need to
streamline operations, enhance our focus on food and fashion, and reduce our focus on furniture and electronics," he added.
1.5 FUNCTIONS OF RETAILING Retailers play a significant role as a conduit between manufacturers, wholesalers, suppliers and consumers. In this context, they perform various functions like :(1) Sorting, (2) Breaking bulk, (3) Holding stock, (4) Additional services (5) Channel of communication, (6) Transport & Advertising
1. Sorting
Manufacturers usually make one or a variety of products and would like to sell their entire inventory to a few buyers to redu7ce costs. Final consumers, in contrast, prefer a large variety of goods and services to choose from and usually buy them in small quantities. Retailers are able to balance the demands of both sides, by collection an assortment of goods from different sources, buying them in sufficiently large quantities and selling them to consumers in small units.
The above process is referred to as the sorting process. Through this process, retailers undertake activities and perform functions that add to the value of the products and services sold to the consumer. Supermarkets in the US offer, on and average, 15,000 different items
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from 500 companies. Customers are able to choose from a wide range of designs, sizes and brands from just one location. If each manufacturer had a separate store for its own products, customers would have to visit several stores to complete their shopping. While all retailers offer an assortment, they specialize in types of assortment offered and the market to which the offering is made. Westside provides clothing and accessories, while a chain like Nilgiris specializes in food and bakery items. Shoppers Stop targets the elite urban class, while Pantaloons is targeted at the middle class.
2. Breaking Bulk
Breaking bulk is another function performed by retailing. The word retailing is derived from the French word retailer, meaning to cut a piece off. To reduce transportation costs, manufacturers and wholesalers typically ship large cartons of the product, which are then tailored by the retailers into smaller quantities to meet individual consumption needs.
3. Holding Stock
Retailers also offer the service of holding stock for the manufacturers. Retailers maintain an inventory that allows for instant availability of the product to the consumers. It helps to keep prices stable and enables the manufacturer to regulate production. Consumers can keep a small stock of products at home as they know that this can be replenished by the retailer and can save on inventory carrying costs.
4. Additional Services
Retailers ease the change in ownership of merchandise by providing services that make it convenient to buy and use products. Providing product guarantees, after-sales service and dealing with consumer complaints are some of the services that add value to the actual product at the retailers end. Retailers also offer credit and hire-purchase facilities to the customers to enable them to buy a product now and pay for it later. Retailers fill orders, promptly process, deliver and install products. Salespeople are also employed by retailers to answer queries and provide additional information about the displayed products. The display itself allows the consumer to see and test products before actual purchase. Retail essentially completes transactions with customers.
5. Channel of Communication
Retailers also act as the channel of communication and information between the wholesalers or suppliers and the consumers. From advertisements, salespeople and display, shoppers learn about the characteristics and features of a product or services offered. Manufacturers, in their turn, learn of sales forecasts, delivery delays, and customer complaints. The manufacturer can then modify defective or unsatisfactory merchandise and services.
6. Transport and Advertising Functions
Small manufacturers can use retailers to provide assistance with transport, storage, advertising and pre-payment of merchandise. This also works the other way round in case the number of retailers is small. The number of functions performed by a particular retailer has a direct relation to the percentage and volume of sales needed to cover both their costs and profits.
1.6 Marketing Mix Big Bazaar 1. Product:
Big Bazaar offers a wide range of products which range from apparels, food, farm products, furniture, child care, toys, etc of various brands like Levis, Allen Solly, Pepsi, Coca- Cola, HUL, ITC, P&G, LG, Samsung, Nokia, HP etc. Big Bazaar also promotes a number of in house brands like:

DJ & C Tasty Treat Clean Mate Sensei Care Mate koryo and 44 other brands.
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2. Pricing: The pricing objective at Big Bazaar is to get Maximum Market Share. Pricing at Big Bazaar is based on the following techniques:
Value Pricing (EDLP Every Day Low pricing): Big Bazaar promises consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping.
Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is also used to attract customers. Big Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga Pooja).
Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak and non-peak hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar. e.g. Wednesday Bazaar
Bundling: It refers to selling combo-packs and offering discount to customers. The combo-packs add value to customer and lead to increased sales. Big Bazaar lays a lot of importance on bundling. e.g. 3 Good Day family packs at Rs 60(Price of 1 pack = Rs 22) 5kg oil + 5kg rice + 5kg sugar for Rs 599
3. Place: The Big Bazaar stores are operational across three formats hypermarkets spread over 40,000-45,000 sqft, the Express format over
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15,000-20,000 sqft and the Super Centers set up over 1 lakh sq ft. Currently Big Bazaar operates in over 34 cities and towns across India with 116 stores. Apart from the Metros these stores are also doing well in the tier II cities. These stores are normally located in high traffic areas. Big Bazaar aims at starting stores in developing areas to take an early advantage before the real estate value booms. Mr. Biyani is planning to invest around Rs 350 crore over the next one year expansion of Big Bazaar. In order to gain a competitive advantage Big Bazaar has also launched a website www.futurebazaar.com, which helps customers to orders products online which will be delivered to their doorstep. This helps in saving a lot of time of its customers.
4. Promotion:
The various promotion schemes used at Big Bazaar include:

Saal ke sabse saste 3 din Hafte ka sabse sasta din Wednesday bazaar Exchange Offers Junk swap offer Future card(3% discount) Shakti card Advertisement (print ad, TV ad, radio) Brand endorsement by M.S. Dhoni and Asin Big Bazaar has come up with 3 catchy lines written on hoardings taking on biggies like Westside, Shoppers stop and Lifestyle. They are: Keep West- a Side. Make a smart choice! Shoppers! Stop. Make a smart choice!
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Change your Lifestyle. Make a smart choice!
5. People:

Well trained staff at stores to help people with their purchases Employ close to 10,000 people and employ around 500 more per month. Well-dressed staff improves the overall appearance of store. Use scenario planning as a tool for quick decision making multiple counters for payment, staff at store to keep baggage and security guards at every gate, makes for a customer-friendly atmosphere.
6. Process:
Big Bazaar places a lot of importance on the process right from the purchase to the delivery of goods. When customers enter the stores they can add the products they which to purchase in their trolley from the racks. There are multiple counters where bill can be generated for purchases made. Big Bazaar also provides delivery of products over purchases of Rs. 1000.
7. Physical Evidence:
Products in Big Bazaar are properly stacked in appropriate racks. There are different departments in the store which display similar kind of products. Throughout the store there are boards/written displays put up which help in identifying the location of a product. Moreover boards are
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put up above the products which give information about the products, its price and offers. Big Bazaar stores are normally U shaped and well planned & designed
1.7 Big Bazaar Marketing MARKETING STRATEGY OF BIG BAZAAR
TARGET AUDIENCE: * Big Bazaar targets higher and upper middle class customers. * The large and growing young working population is a preferred customer segment. * Targets specifically working women and home makers who are the primary decision makers.
BIG BAZAAR-USP: * Low price as compared to other places. * Schemes like Buy 1 gets 1 free, 20% discount etc * 1 Billion Population. * Availability of Liquid Cash/Disposable Income among Young Generation. * Affordable man power * Craze, Passion among Mr. Customer (Consumer) * Different products under one roof.
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STRATEGIES: * To minimize Retailing cost * Operating: Fewer staff on the floor-one person for every 500 sqft * Minimize the Furniture cost * Saving Shelf Space * Way to deal unsold stock off * Todays Price:Everyday a chosen product is being sold at lower than usual price
1.8 Marketing Mix: Pricing: The pricing objective at Big Bazaar is to get Maximum Market Share. Pricing at Big Bazaar is based on the following techniques:
* Value Pricing (EDLP Every Day Low pricing): Big Bazaar promises consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping.
* Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is also used to attract customers. Big Bazaar also caters on Special Event Pricing (Close to Diwali, DurgaPooja, etc). * Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak and non-peak hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar.
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* Bundling: It refers to selling combo-packs and offering discount to customers. The combo-packs add value to customer and lead to increased sales. Big Bazaar lays a lot of importance on bundling. 1.9 RETAIL UNIT A retail unit could be owned by:

Manufacturer (e.g., company owned retail outlets) Wholesaler (e.g., Vastra outlet in Rajouri in New Delhi) Independent retailer (Chanakya Sweet Shop near Hazratganj in Lucknow)
Consumer (consumer owned grocery stores in man y residential societies)
Co-operative society (e.g., Mother Dairy milk booths in Delhi) Government (e.g., Cottage Emporia) Ownership shared among franchiser and franchisee (e.g., Archies Gallery)
Although most Indian retailers fall in the category of small-scale units, there are also some very big retailers. Organized retail stores are generally characterized by large, professionally managed store formats providing goods and services that appeal to customers, in an ambience that is conducive for shopping and provides a memorable experience to customers.
From positioning and operating perspectives, each ownership format serves a marketplace niche and presents certain advantages and
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disadvantages. Retail executives must not lose sight of this in playing up their strengths and working around their weaknesses.
1.10 Classification of Retail Units
Conceptual classification of a business unit provides the marketers with strategic guidelines, useful in the design of retailing strategy. Besides, retail businesses are extremely diverse and there are quite a few types of retail units. Therefore, retail units are classified on multiple of ownership, geographical locations, kind of customer interaction level of services provided etc.
1. Retailers Classified on the Basis of Ownership
One of the first decisions that the retailer has to make as a business owner is how the company should be structured. This decision is likely to have long-term implications, so it is important to consult with an accountant and attorney to help one select preferred ownership structure. There are four basic legal forms of ownership for retailers: Sole proprietorship:The vast majority of small businesses start out as sole proprietorships. These firms are owned by one person, usually the individual who has the day-to-day responsibility for running the business.
Partnership: -A partnership is a common format in India for carrying out business activities (particularly trading) on a small or medium scale.
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In a partnership, two or more people share ownership of a single business. Joint venture: A joint venture is not well defined in the law. Unless incorporated or established as a firm as evidenced by a deed, joint ventures may be taxed like association of persons, sometimes at maximum marginal rates. It acts like a general partnership, but is clearly for a limited period of time or a single project.
Limited liability Company (public and private):- The Limited Liability Company (LLC) is a relatively new type of hybrid business structure that is now permissible in most states. The owners are members, and the duration of the LLC is usually determined when the organization papers are filed.
2. Classification of Retailers on the basis of Operational Structure
Retail businesses are classified on the basis of their operational and organizational structure. Operational structure defines the key strategic decision of retail entity, whether to hire employees and manage the distributed sales function internally or to reach customers though franchised outlets owned and operated by local entrepreneurs. Retail firms can be classified into five heads on the basis of their respective operational structures:
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Independent retail unit: The total number of retailers in India is estimated to be over 5 million in 2003. About 78% of these are small family businesses utilizing only household labour. An independent retailer owns one retail unit. Retail Chain: A chain retailer operates multiple outlets (store units) under common ownership; it usually engages in some level of centralized (or coordinated) purchasing and decision making.
Franchising:-Franchising involves a contractual arrangement between a franchiser (which may be a manufacturer, a wholesaler, or a service sponsor) and a retail franchisee, which allows the franchisee to conduct a given form of business under and establishments name and according to a given pattern of business.
Leased Department or Shop-in-shop:- It refers to department in a retail store that are rented to an outside party. Usually this is done in case of department and specialty stores and also at times, in discount stores.
Co-operative Outlets: Co-operative outlets are generally owned and managed by co-operative societies. In this context the detailed example of KendriyaBhandar in India.
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3. Classification of Retailers on the basis or Retail Location
Retailers have also been also been classified according to their store location. Retailers can locate their stores in an isolated place and attract the customers to the store on their own strength such as a small grocery store or paan shop in a colony, which attracts the customers staying close by.Classification of retailers on the basis of location is discussed below: Retailers in a free-standing location: Retailers located at a site which is not connected to other retailers depend entirely on their sore s drawing power and on the various promotional tools to attract customers. This type of location has several advantages including no competition, low rent, better visibility from the road, easy parking and lower property costs. For example the Haldirams outlet on the DelhiJaipur highway and the McDonalds outlet on Delhi-Ludhiana highway.
Retailers in a Business-associated Location:- In this case, a retailer locates his store in a place where a group o retail outlets, offering a variety of merchandise, work together to attract customers to their retail area, and also compete against each other for the same customers.
Retailers in Specialized Markets: - Besides the above location-based classification, we also have in India-retailers who prefer specialized markets, particularly traditional independent retailers or chain stores. In India, most of the cities have specialized markets famous for a particular product category. For example, in Chennai, Godown Street is famous for clothes, Bundertreet for stationery products, Usmanstreet for
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jewellery, T Nagar for ready-made garments, Govindappannaicleen Street for grocery, Poo Kodiak for food and vegetables. Airport Retailing: For quite some time, duty-free shops and newsstands dominated the small amount of commercial space provided at airports. Lately, serious efforts are being made to design new airport facilities in order to incorporate substantial amounts of retail space. The key features of airport retailing are:

Large groups of prospective shoppers Captive audience Strong sales per square foot of retail space Strong sales of gift and travel items Difficulty in replenishment Longer operating hours Duty-free shopping possible .
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CHAPTER. 2 OBJECTIVE OF THE STUDY
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2.1 Objectives Of The Study
To know the effective promotional strategy which influence customer to purchase a product of BigBazaar.
Sub-objectives:
1. To know the promotional strategy of big bazaar 2. How Big Bazaar Establish and maintain the in retailing through promotion
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CHAPTER. 3 RESEARCH AND METHODOLOGY
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3.1 THE RESEARCH PROCESS In cases where retailers need to make significant decisions concerning any of the aforementioned areas, they may engage in some type of formal research. Whether the research is conducted by in-house staff, as is the case of the industrys giants, by an independent organization, or by an outside consultant that works with the companys own research team, the methodology is the same. The stages and tools that researchers use for retail problems are virtually the same as those used for other business situations. 3.2 IDENTIFYING THE PROBLEM The first stage is to identify the problem or area of concern. It might be about determining the consumers level of acceptance of private-label merchandise and whether or not the company should change its in-stock percentage of these items. Another area may center around restructuring price points and the potential problems associated with such change. Still another area could be the impact of separating the companys brick-andmortar merchandising operations from those used for their off-site ventures such as catalogs and Internet Web sites. Whatever the situation, the problems must be identified before further action may take place. 3.3 DEFINING THE PROBLEM After the problem is identified generally, it must be defined specifically. For example, if the retailer wanted to concentrate on the price point problem stated in the preceding section, the researchers would need to know if the new restructuring is in the entire store or in a specific
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department. In the private-label dilemma, the researchers need to know if the retailer is focusing on every department or just menswear. Narrowing the stated problems that have been identified is a necessity so that researchers will be better able to solve the problem. For example, the three problems identified in the previous section could be more specifically stated as follows: 1. Will private labeling be accepted in the shoe department? 2. Would the store benefit from trading up in the dress department, eliminating the lower price points and adding higher ones? 3. Should the merchandising for off-site divisions include childrens wear? Once the problem is narrowly defined, the research team can continue onto the next phase of the study. 3.3 GATHERING DATA After specifying the problem, the process moves to the stage of collecting data. This is an extremely important area of the study, because the divisions are based on this information. The data comes from two sources, secondary and primary. 1. SECONDARY DATA Data that is already available to the researcher is classified as secondary data. It may come from such sources as the companys own records, studies that were conducted by governmental agencies and trade associations, private research organizations, and periodicals.
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COMPANY RECORDS. A great deal of information is continuously generated by the companys computer, which keeps track of records such as sales figures for every department and merchandise classification, customer returns, vendor analysis, employee turnover rates, and sales associates commissions. Each of these is important when studying retail problems. GOVERNMENTAL AGENCIES Various government agencies provide general information that could help retailers researching a problem. At the federal level, for example, the Census Bureau, undertakes periodic studies of the general population, housing, and businesses, all of which provide valuable information for the merchant who is considering expanding the company. The Department of Commerce generates a great deal of timely information on business conditions that is appropriate for retailer use. The monthly Catalog of U.S. Governmental Publications produces a host of materials, free of charge, on topics including regular reports on new home construction, employment figures, and cost-of-living adjustments. By logging onto these governmental agencies Web sites or by utilizing a search engine such as www.askjeeves.com, researchers can access a wealth of pertinent information. State and local governments provide a great deal of secondary information that researchers can use to find out about business conditions in the retailers more immediate trading area.
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TRADE ASSOCIATIONS There are many trade associations that deal with various specific aspects of retailing, such as the Institute of Store Planners, (www.ispo.org), and the International Mass Retail Association, (www.imra.org). However, the National Retail Federation (NRF) www.nrf.com, the retail worlds largest association, provides a wealth of information on every conceivable area that affects retailers and their operational needs. In addition to offering a forum that retailers from around the globe attend to learn about the latest industry innovations, NRF regularly conducts studies that are important to the retail community. NRF members may obtain copies of its research that may help them with their own problems. PRIVATE RESEARCH ORGANIZATIONS There are numerous research organizations that engage in original studies, two of which, Gallup & Robinson and the Olinger Group, are discussed in separate spotlights in this chapter. Their Web sites, www.gallup-robinson.com, and www.olingergroup.com, offer a great deal of information on their research services. A.C. Nielsen, another major research firm, specializes in broadcast surveys. By examining its rankings of TV programs in terms of viewership, major fashion retailers are able to assess which programs they should advertise on. PERIODICALS Numerous trade papers and magazines regularly engage in research projects that retailers find useful. Fairchild Publications is a leader in fashion news with its Womens Wear Daily and Daily News Record publications. Almost every issue of these publications provides
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meaningful information regarding the state of the fashion industry. Stores Magazine, published by NRF, presents studies that can assist retailers with their decision making; Visual Merchandising and Store Design, a monthly periodical published by ST Media Group, is especially important for fashion retailers, because its pages cover every detail of store design and display; and Chain Store Age offers the latest developments in that area of merchandising. In addition to these periodicals that are expressly directed at the retail arena, others, such as the Wall Street Journal and the New York Times, often feature articles that may pertain to retailers and their problems. PRIMARY DATA Its possible that retailers can get enough information from secondary data to make their decisions. If they require more data specific to their particular situation, however, they need primary data. Primary data are the data that must be obtained firsthand through original research. The information is gathered from customers, potential customers, employees, vendors, market specialists such as resident buying offices, and the media through questionnaires, focus groups, and observations. Though valuable, primary research is often very costly to obtain.
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CHAPTER .4 S.W.O.T ANALYSIS IN RETAIL MARKETING
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4.1 S.W.O.T ANALYSIS IN RETAIL MARKETING Strength Demographic favor Raising disposable income Increase in No. of people in earner category Urbanization Shopping convenience Changing consumer habits in life style Plastic card revolution Greater availability of quality retail space
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Weakness Policy related issue - Lack of industry status for retail. - Numerous license, permits and registration requirement. Limited consumer insight - Lack of detailed region specific customer data. - Less data on spreading pattern. Inadequate human resource - Lack of trained personnel at all level. - Fragmented approach to human resource. Taxable hurdle - Inconsistent octopi and entry tax structure. - VAT n multiple tax issues. Under developed supply chain - Underdeveloped logistics infrastructure. - Lack of national distribution network and hubs. Lack of adequate utilities - Lack of basic infrastructure like power, transportation and Communication creates difficulty in sustaining retail operation across the country.
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Opportunities Potential for investment. Location advantage. Sectors with high potential. Faster growing formats. Rural retailing. Wholesale retailing. Falling real estate cost. E-retailing. Retail franchising. Threats Political issue Social issue Inflation Lack of differentiation among the malls that are coming. Poor inventory turns and stock availability measures.
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STRATEGY 3-C Theory:
According to Inshore Giyanis 3-C theory, Change and Confidence among the entire population is leading to rise in Consumption, through better employment and income which in turn is creating value to the agricultural products across the country. Big Bazaar has divided India into three segments:
India one: Consuming class which includes upper middle and lower middle class (14% of India's population). India two: Serving class which includes people like drivers, household helps, office peons, liftmen, washer men, etc. (55% of India's population) and India three: Struggling class (remaining 31% of India's population).
While Big Bazaar is targeted at the population across India one and India two segments, Aadhaar Wholesale is aimed at reaching the population in India three segment. With this, Future Group emerged as a retail
destination for consumers across all classes in the Indian society.
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Operations The Big Bazaar Store in Nagpur. Most Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers as well as within shopping malls. These stores offer over 200,000 SKUs in a wide range of categories led primarily by fashion and food products.
Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and is now present within every Big Bazaar as well as in independent locations. A typical Big Bazaar is spread across around 50,000 square feet (4,600 m2) of retail space. While the larger metropolises have Big Bazaar Family centres measuring between 75,000 square feet (7,000 m2) and 160,000 square feet (15,000 m2), Big Bazaar Express stores in smaller towns measure around 30,000 square feet (2,800 m2).
Big Bazaar has the facility to purchase products online through its official web page, and offers free shipping on some of their products.[5] Innovations Wednesday Bazaar Big Bazaar introduced the Wednesday Bazaar concept and promoted it as HafteKaSabseSasta Din. It was mainly to draw customers to the stores on Wednesdays, when least number of customers are observed. According to the chain, the aim of the concept is "to give home makers
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the power to save the most and even the stores in the city don a fresh look to make customers feel that it is their day".
SabseSasta Din
With a desire to achieve sales of Rs 26 Crore in a one single day, Big Bazaar introduced the concept of "SabseSasta Din". The idea was to simply create a day in a year that truly belonged to Big Bazaar. This was launched on January 26, 2006 and the result was exceptional that police had to come in to control the mammoth crowd. The concept was such a huge hit that the offer was increased from one day to three days in 2009 (24 to 26 Jan) and to five days in 2011 (22-26 Jan).
MahaBachat MahaBachat was started off in 2006 as a single day campaign with attractive promotional offers across all Big Bazaar stores. Over the years it has grown into a 6 days biannual campaign. It has attractive offers in all its value formats such as Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar - catering to the entire needs of a consumer. The Great Exchange Offer On February 12, 2009 Big Bazaar launched "The Great Exchange Offer", through with the customers can exchange their old goods in for Big Bazaar coupons. Later, consumers can redeem these coupons for brand new goods across the nation.
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4.2 PLAYERS IN RETAIL SECTOR IN INDIA The Indian retail sector has been euphoria over the last five years. India topped the A.T. Kearney's Global Retail Development Index for two consecutive years and this has infatuated Indian as well as foreign retail players to go gaga on the merchandising track. According to geographical expansion, Delhi/NCR and Mumbai are the felicitated regions as the top companies have rated the spending potential of consumers in the vicinity of the national capital and the financial capital as excellent. Other metros such as Kolkata, Chennai, Hyderabad and Bangalore have caught the sight of investors but their fortunes are yet to be illuminated. Companies like The Future Group, Reliance, BhartiWalmart, DLF etc. have shown the way for other to enter. The countries is expecting a surge in the growth sprint and lets hope for the best
1. Bharti RetailA wholly owned subsidiary of Bharti Enterprises.has announced two joint ventures (JV)with the international retailing behemoth, Wal-Mart. The first JV ensures cash and carry business, in which 100 percent FDI is permitted and it can sell only to retailers and distributors. The second JV concerns the franchise arrangement. Sunil Mittal, Chairman of the Bharti Group assured that the ventures will use low prices every day and best practices for the satisfaction of the customer. Processed foods and vegetables will be delivered by Bharti Field Fresh, Bharti's JV with Rothschild. Bharti Retail aims to foray every city with a population exceeding 1 million. It has plans to come up with an investment of more
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than $2 billion in convenience stores, supermarkets and hypermarkets spread over an aggregate 10 million sq. ft. The expansion drive looks ambitious but analysts are worried that Bharti may face stiff competition from Pantaloon and Reliance as they too have sanguine plans to flood the markets with thousands of retail outlets in the coming five years. Bharti Telecom also has plans to offer all its fixed and mobile telecom products and services from a single window to the SMB (Small and Medium Business) enterprises under the BhartiInfotel division 2. Reliance RetailReliance claimed last year to start a retail chain that will be unique in size and spread, will lead to the welfare of one and all ranging from Indian farmers, manufacturers and ultimately consumers. It is known as Reliance Retail Ltd.(RRL) and is a 100 percent subsidiary of Reliance industries Ltd.(RIL). Soon after the Bharti-Wal Mart tie up, there was the news that RIL (Reliance Industries Ltd.) Chairman Mukesh Ambani met Commerce Minister Kamal Nath to discuss the apprehension of cheap imports from China. Reliance Retail has plans to open 4,000 outlets across 1,500 towns for an investment of $5.6 billion. Reliance is not away from agro-business. According to Buddhadeb Bhattacharjee, Chief Minister of West Bengal, Reliance will hold demonstration farming, produce good quality seeds and give inputs to farmers. Its most significant participation has been in the food procurement business in Madhya Pradesh and Punjab. This has in fact compelled the government to import wheat this year. Reliance Retail has also been reported to have
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entered into an agreement with footwear manufacturer Bata India Ltd. so that they will involve in selling each other's products. 3. DLF Shopping MallsDLF Retail Developers Ltd. is one of the troikas of the DLF Group. Besides being India's largest real estate developer, DLF is also of the leaders in innovating shopping malls in India. It caught public eye when it launched the 2,50,000sq ft. shopping mall in Gurgaon. It has brought a dramatic change in the lifestyles and entertainment with its City Centres and DT Cinemas. DLF has plans to invest Rs. 2000-3000 crore in all the emerging areas from metros to A class cities in the next two years. Till last year the company was involved in building 18 malls out of which 10 were in the NCR region. Future plans of DLF involve opening up of 100 malls( speciality malls, big box retailing and integrated malls) across 60 cities in next 8-10 years. They are slowly transforming into 'lease' and 'revenue share' models. Local players like ITC, the A.V. Birla Group and Tatas have given the hints to enter organised retail. Frances Carrefour SA and Britains Tesco too were recently in news for their future plans to explore the Indian retail market. 4. Big BazaarBig Bazaar is a chain of department stores owned by the Pantaloon Group (Future Group) and headed by Kishor Biyani and headquartered at Mumbai. It offers all types of household items such as home furnishing,
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utensils, fashion products etc. It has a grocery department and vegetable section known as the Food Bazaar and its online shopping site is known as FutureBazaar.com. The real estate fund management company promoted by the Future Group expects to develop more than 50 projects across India covering a combined area of more than 16 million sq. ft. On April 1 2007, Big Bazaar had to shut its outlets in Mumbai as the 120 retrenched employees called a strike with the support of
BhartiyaKamgarSena (the trade Union wing of Shiv Sena). Later the management agreed to reinstate the sacked workers.
4.3 BRANDS Future Group has built an attractive portfolio of some of the fastest growing consumer brands in India. This activity is led through Future Brands India Limited, a specialized subsidiary company set up to create and build powerful brands that address the aspirations of the new Indian consumer. Future Brands Future Brands Limited (FBL) is involved in the business of creating, developing, managing, acquiring and dealing in consumer-related brands and IPRs (Intellectual Property Rights).
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We retail a wide range of products and brands, some of which have been grown and nurtured by our group companies.
Big Bazaar Big Bazaar is a chain of hypermarket in India. As of June 2, 2012 there are 214 stores across 90 cities and towns in India covering around 16 million sq.ft. of retail space. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections.Big Bazaar is part of Future Group, which also owns the Central Hypermarket, Brand Factory, Pantaloons, EZONE, HomeTown, futurebazaar.com, KB's Fair Price to name a few and is owned through a wholly owned subsidiary of Pantaloon Retail India Limited(BSE: 523574 523574), that is listed on Indian stock exchanges.
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CHAPTER. 5 STRATEGY OF FUTURE GROUP
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5.1 STRATEGY Anew normal is being defined in the Indian consumer market every day. With far-reaching socio-economic changes that India has undergone in the last decade, the drivers in urban and rural India are maturing fast. With a growth strategy tempered with localization and an inclusive business model, Future Group is the only pure play local retailer poised to lead Indias consumption story with sustainable value creation.
Our multi-format retail strategy captures almost the entire consumption basket of Indian customers. As modern retail drives new demand, efficiency and consumption in new categories, our strategy is based on our deep understanding of Indian consumers. We understand the varied buying behaviour of the Indian consumer across regional ethnicities and are constantly innovating to craft strategies that address the subtle differences.
Future Group's strategy is aimed at achieving inclusive, sustained and profitable growth with three levers
Customer-orientation The bottom line in each of our retail success stories is "know your customer". Insights into the soul of Indian consumers - how they operate, think, dream and line - helps us innovate and create differentiating functionally.
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Continuous-innovation As India's largest retailer, we understand the importance of innovation. We rethink strategies and realign businesses with increasing agility to provide diverse customer groups with refreshingly different retail experiences.
Collaborative transformation Creating a collaborative environment combining our strengths with our suppliers and vendors helps us create immense value for our customers which in turn fostersmatual growth.
We believe that modern Indian retail rests on the strength of two pillars scale and efficiencies. As front-runners in both areas, we firmly believe our core responsibility lies in providing protection to customers from the overall rate of inflation. While the scale and size of our operations helps us improve efficiencies, it also ensures we deliver greater value to our customers.
Our retail thrust is focussed on four principal verticals of Food, Fashion, General Merchandise and Home. These four categories together account for nearly 65% of the consumption in the country and represent mass consumer aspirations.
Acknowledging this, we are creating retail pure play through divestment and demerger of non-retail businesses to concentrate our efforts on these verticals.
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Indias retail boom is being driven by resurgence in the economy. Modern retail still has around 6% share of the total retail spend in the country, that is estimated at around US $ 400 billion. Thus, the potential for modern retail growth in India is huge. Currently, leading retailers in mature markets occupy the top three slots by turnover, employment and value creation. As the Indian economy matures, it is upon us to make the same happen in our country.
5.2 LOGISTIC AND SUPPLY CHAIN In a highly competitive retail marketplace with changing consumer preferences, different formats and large geographical spread, retail logistics is a critical business activity.
At Future Group we believe the viability of a retail operation hinges as much on achieving efficient logistics and supply chain as it does on attaining success at the front end.
A seamless logistics function to move our products from the manufacturer to our store shelves is at the heart of our retail operations. Our robust presence in logistics and supply chain helps us move millions of products to customers each day of the year across India in the most efficient and cost-effective manner
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FUTURE SUPPLY CHAINS Future Supply Chains, a specialized subsidiary, offers a strategic, focused and consolidated approach to meet the groups large supply chain requirements as well as those of select suppliers and business partners. Future Supply Chains provides integrated end-to-end supply chain management, warehousing and distribution, multi-modal transportation and container freight stations.
Operates 5 major verticals: Warehousing, Transportation, International Logistics, Brand Distribution and Reverse Logistics
Current warehouse footprint of over 3.5 million square feet with 67 warehouses across 32 locations.
Dedicated fleet of over 400 vehicles and an outsourced fleet of 400 trucks that move goods across India in the most efficient and costeffective manner
Li & Fung, the Hong Kong-based largest retail supply chain company, is an investor and partner of Future Supply Chains. For more information on Future Supply Chains.
5.3 EMPLOYMENT PHILOSOPHY Start Here.Dream Big. Grow Far. We're growing in dynamic ways and are looking for people who will enable us to continue our success. We are looking for people who are passionate, adaptable, self-motivated, team players and who reflect our ideology - "Rewrite rules. Retain values".
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If you share our passion for success, we invite you to be a part of an amazing success story by taking up exciting growth opportunities with us. Future Group is an equal-opportunity employer. We encourage people to join us from all walks of life. To this end, we have implemented numerous training programs that provide our employees avenues for advancement. Our unflagging efforts have ensured that over 80 percent of our people have been positively impacted. This has helped us identify and nurture Future leaders and bringing fresh energy and perspective to the business.
In potential employees, we value
Future Group looks to employee expertise to combine and sustain business and community growth. We are fully committed to Indias socio-economic development and seek the same values in those looking to be part of the Future Group family
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5.4 EXECUTIVE COMMITTEE BOARD Kishore Biyani | Founder and Group CEO, Future Group Considered a pioneer of modern retail in India, Kishores leadership has led the groups transformation into Indias leading player in the consumption sector. Regularly ranked among Indias most admired CEOs, he is the author of the book It Happened in India. He has won multiple awards from government bodies and the private sector in India and abroad and is on the board of a number of bodies, including the National Innovation Foundation in India and New York Fashion Board.
Anshuman Singh | Managing Director & CEO, Future Supply Chain Solutions Ltd. In a career spanning over 18 years, Anshuman has worked in all aspects of the value chain across several industry segments such as Discrete Manufacturing, Durables, Textiles, Retail and Supply Chain with companies like Grasim, H&R Johnson, Bombay Dyeing, and Welspun Retail. He is responsible for starting the first Home Furnishings Speciality Retail Chain in the country in his last assignment as the Director and CEO of Welspun Retail Ltd. before rejoining Future Group where he created Future Supply Chains Ltd. Anshuman is a Mechanical Engineer and an MBA.
B. Anand
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| Director Finance, Future Group A Chartered Accountant by training, Anand has nearly 20 years of experience in corporate finance and banking across diversified business groups. Before joining Future Group, he was President-Corporate Finance, Vedanta Resources Group. He has been associated with Motorola India, Credit Lyonnais, HSBC, IL & FS and Citibank.
Damodar Mall | Director, Integrated Food Strategy, Future Group An alumnus of IIT Mumbai and IIM Bangalore, Damodar has over two decades of experience in the FMCG and food industry. He was a cofounder of DMart, a supermarket chain in Western India, and was associated with Uniliver in India.
Kailash Bhatia | Director & CEO, Pantaloon Retail Co-founder of the ColorPlus brand, Kailash has over three decades of valuable experience in the fashion business and is considered to be a stalwart in the Indian fashion industry. Before joining Pantaloon Retail, he was associated with Weekender, Arvind Mills and Mafatlal Industries, among other companies.
K. K. Rathi
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| CEO, Future Ventures India Ltd. A qualified Chartered Accountant and Company Secretary with approximately 24 years of professional experience in corporate finance, strategic business planning and investment advisory, Mr. Rathi has worked in organizations such as KEC International, H&R Johnson and MotilalOswal Private Equity Advisors. He has previously worked as Group CFO with Pantaloon Retail.
Sanjay Jog | Chief People Officer, Future Group Sanjay has over two decade of experience in working with a wide range of companies in the services sector in India and abroad. A post-graduate from Pune University, he joined Future Group in July 2005. Before this he worked with companies like DHL Limited, Indian Hotels Group, Bharti Enterprises and RPG Enterprises.
Santosh Desai | Managing Director & CEO, Future Brands India Ltd. An alumnus of IIM Ahmedabad, Santosh has over two decades of experience in advertising. He was President of McCann-Erickson, India prior to his association with Future Group. A highly respected figure in the advertising and marketing community in India, Santosh is a columnist with the Times of India and several other publications and has addressed the global management boards of several multinationals, including
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Hersheys, Microsoft, Philips, Unilever, Coke etc. He is also th e author of the book Mother Pious Lady Making Sense of Everyday India.
Sumit Dabriwala | Managing Director, Agre Developers Ltd. An entrepreneur in his own right and an urban developer, Sumit has 21 years of corporate experience with significant exposure to the real estate sector. Before joining Future Group, he was on the Board of Directors of Calcutta Metropolitan Group and Riverbank Holdings.He has served as a Member of Infrastructure Council in CII, Infrastructure Sub-Committee Chairman, Regional Council Member and Core Group Retail Chairman in CII (Eastern Region), and as an Infrastructure Committee Member, Executive Committee Member, and Chairman of Young Leaders Forum in the Indian Chamber of Commerce.
V. Vaidyanathan | Vice Chairman and MD of Future Capital Holdings Ltd. An alumnus of Birla Institute of Technology and Harvard Business School, he joined Future Group in August 2010. Before this, he was on the Board of ICICI Bank. He has held the positions of Managing Director and CEO of ICICI Prudential Life Insurance Co, Chairman of ICICI Home Finance Company, and served on the boards of ICICI Lombard General Insurance and CIBIL. He worked with Citibank India from 1990 to 2000.
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CHAPTER. 6 CASE STUDY
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CASE STUDY Promotional Strategy of Big Bazaar & Maintaining the image in Retailing
Executive Summary Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are fighting to win the hearts of customer who is God said by the business tycoons. There is always a first mover advantage in an upcoming sector. In India, that advantage goes to BIG BAZAAR. It has brought about many changes in the buying habits of people. It has created formats, which provide all items under one roof at low rates, or so it claims. In this project, we will study its marketing strategies and promotional activities.
The research titled A Study on the effective promotional strategy which influences customer to purchase a product of Big Bazaarhelps us to understand the effect of promotional strategy which is responsible for attracting customer towards big bazaar This study helpful to top level management to improve the present promotional strategy of BIG BAZAAR. The report deals with the impact of promotional activity which attracting customer towards big bazaar. The research was carried out as per the steps of Marketing Research. The well supportive objectives were set for the study. To meet the objectives primary research was undertaken. The data collection approach adopted
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was experimental research & survey research. The instrument used for the data collection was observation & questionnaire. The target respondents were the visitors of BIG BAZAAR, with the sample size of 90 for the study of sales management of the company. Tables & charts were used to translate responses into meaningful information to get the most out of the collected data. Based on those the inferences have been drawn with peer supportive data.
Recommendations:
Big bazaar should keep offers in regular intervals so that there should not be a long term gap, because offer is the most influencing factor which is responsible for customer purchase decision.
And they also concentrate on T V advertisement they should show ads and promotional offers in a regular interval in three languages like Kannada Hindi English.
Hoarding should be placed uncovered area.
Limitations:
The study was restricted to only the customers of BIG BAZAAR, Gurgaon.
The time constant was a limiting factor, as more time required carrying out study on other aspects of the topic.
The result and analysis based on the customer survey method and small sample size has taken only 90
Findings are related to particular areas

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CONCLUSION
Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are fighting to win the hearts of customer who is God said by the business tycoons. There is always a first mover advantage in an upcoming sector. In India, that advantage goes to BIG BAZAAR. It has brought about many changes in the buying habits of people. It has created formats, which provide all items less than one roof at low rates. The consumers preferences are changing & they are moving from Traditional Kirana stores to Modern Retail outlet. Its the main challenge to the Modern retail outlets to attract the customers towards them from that of competitors. To attract more customers companies have to carry out the promotional activities in unique way. BIG BAZAAR has maintained that uniqueness & has succeeded in attracting customers.
The promotional activity of the company, which famous as Less Price than others as it says Nobody Sells Cheaper and Better! is made its place in minds of customer. As the competition is becoming stiff in the market the activities conducted by the company are unique, that have brought fruitful result to the company. Among them sales Promotions is one of the leading activity or unique among all other activities & has high influence on the customer walk-in.
BILOGRAPHY
WEB SITE WWW.FUTUREGROUP.COM WWW.BIGBAZAAR.COM WWW.SCRIBD.COM WWW.MANAGEMENTPARADISE.COM
QUESTIONERY 1. Tell me something about your firm. Ans. Our firm is mainly into retail and logistic. We connect a diverse and passionate community of Indian buyers, sellers and businesses. 2. What is the job you perform? Whats your job? Ans. I am an assistant mktg. Managing data base of the client. 3. How old is your firm? Ans.25 years. 4. What is the process? Ans.Mfg garments and supplying to stores. 5. Does retailing take place in your firm? If yes which type. Ans. Yes fixed location retailing(shopping mall) 6. Where you see your future(firm)? Ans. Ahead.. 7. Is retailing profitable or not? Ans. Yes it is profitable. 8. How retailing helped you and your firm? Ans. Financially.
9. What is the capacity(no. of member) in your firm and recruitment. Ans. 35 thousand. 10.Name the firm you had contract[pantaloon/shoppers stop etc]. Ans.Pantaloon retail India and Future value retail ltd. 11.How do you recruit people on what basis.(qualification/experience etc). Ans. Qualification as well as experience. 12.Your employees are satisfied or not? Ans. Yes they are satisfied. 13.Does performance appraisal take place in your firm.with new employees? If yes which model/older/360. Ans. Yes 360 14.How wasyou experience? Ans. Its good.

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