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“MARKETING STRATEGIES OF BIG BAZAAR”

SUBMITTED TO Ms.Swarna Bakshi (MENTOR)

SUBMITTED BY Anchit Gautam BATCH:2007-2010 ROLL NUMBER:C-06

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METHODOLOGY OF RESEARCH:
1) Type of Research: Exploratory Research
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Time Frame: 2months

3) Tools used: Primary – personal interview, tele-interview. Secondary- MNES Journals, Internet, Magzines, Press Releases etc.

SCOPE OF STUDY:

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So far, it has been seen that retailing is a vital and involuntary action performed by the living structure of the market economy (as opposed to the case in a barter economy). In a barter economy, bane; transactions take place between consumers themselves. Consumers interact directly whereas in a centralized market economy, transactions taking place at a larger scale (both in terms of volume and variety) necessitate an interface between the manufacturers and final consumers. Hence we reinforce the fact that retailing is not a new deal. This industry is extant as an interface between production and consumption, from times immemorial, benefiting us - consumers or producers in the various ways discussed above. Our study concentrates on organized retailing, which consists of shopping malls, super markets, chain stores, and like. In the last few years a shift has occurred in India from individual retail outlets owned separately and managed distinctively to

professionally managed retailing. This is an industry, which has now started attracting better investments and talent. Things changed primarily because of the rising expectations of Indian consumers and the corporate responding quickly.

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Today the industry (in India) seems to be functioning somewhere between the accelerated development and maturity stages, with high growth rates, intense competition and moderate profitability.

TABLE OF CONTENTS

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CONTENTS                
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PAGE NO. ii iii iv v vii 1-2 3 4-6 7 8-11 12-35 36-39 40-50 51 52 53-62 59 61 62 64-65 66 67-68

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Certificate of Originality Signatory Page Thesis Approval Letter Synopsis Acknowledgement Introduction to Retailing Retail Marketing Mix Importance of Studying Retailing Changing Customer Mindset The Industry Structure Company Profile Drivers of the Industry Field Study Research 0bjective Research Methodology Findings of The Survey Comparison Across Types of Retailers Establishing A Retail Store Analyzing Customers on Life-Style Concepts Conclusions Bibliography Annexure

INTRODUCTION TO RETAILING
Retailing consists of those business activities involved in the sale of goods and services to consumers for their personal, family or household use. It is the final stage in a channel of distribution, which comprises all of the businesses and people involved in the

according to American Marketing Association. efficiently and at a profit. family or household use. Retailing differs from marketing in the sense that it refers to only those activities. pricing. refers to ‘the process of planning and executing the conception.” Organizational buyers purchase in order to perform a task or sell a product effectively. Industrial buyers are those who purchase goods and services to be used in or to aid manufacturing process. Retailing involves  Interpreting needs of the consumers  Developing good assortments of merchandise  Presenting them in an effective manner so that consumers find it easy and attractive to buy. promotion and distribution of ideas. which are related to marketing goods and/or services to final consumers for personal. Intermediary buyers .6 physical movement and transfer of ownership of goods and services from producer to consumer. Whereas marketing. goods and services to create exchanges that satisfy individual and organizational objectives. They could be industrial buyers or intermediary buyers.

e. local supermarkets. restaurants.7 are those (i. Mail and telephone orders. Whatever the form of retailing. barbershops.e. retailing mayor may not involve a “retailer. This retail marketing strategy involves selecting a retail target market (i. direct selling to consumers in their homes and offices and vending machines .all fall within the purview of retailing. airlines and even bike and car showrooms. the carefully/exactly identified group of final consumers that a retailer seeks to satisfy) and then implementing the corresponding retail marketing mix (i.e. importers. Retailers include street vendors. non-profit firms and wholesalers are acting as retailers when they sell goods and/or services to final consumers. department stores.’ Manufacturers. hotels. a . In addition to it. wholesalers and retailers) who buy merchandise for resale. Still retailing may or may not involve the use of a physical location. a retail marketing strategy defines the execution of the marketing process and facilitation of customer satisfaction.

The table depicts consumer service as the crux of the whole activity. RETAIL MARKETING MIX Product Branding Packaging Product Design Assortment Services Promotion Advertising Personal Selling Price Cost of goods Business Expenses Gross Margin Profit Distribution Logistics Store Location .8 combination of product. price. The elements of the marketing mix encompass the facets shown in the table below. promotion and distribution strategies that will satisfy the retail target market).

it has been seen that retailing is a vital and involuntary action performed market economy. bane. In a barter economy. transactions taking place at a larger scale (both in terms of volume and variety) necessitate an interface between the manufacturers and final consumers. IMPORTANCE OF STUDYING RETAILING by the living structure of the market economy (as opposed to the case in a barter economy). James Reardon . Hence we reinforce the fact that retailing is not a new deal. This industry is extant as an interface between production and .Retail Management The implementation of such a retail strategy mix benefits consumers and producers and yields economic utility. transactions take place between consumers themselves.9 Sales Promotion Public Relations Visual Merchandising Site Evaluation Transportation Storage of goods Source: -Ron Hasty. Consumers interact directly whereas in a centralized So far.

which has now started attracting better investments and talent. benefiting us .10 consumption. the largest 100 retailers in the world generated over $1. and like. In order to get an idea of the magnitude of the issue we are dealing with. During 1992. chain stores. . This is an industry. which consists of shopping malls. Today the industry (in India) seems to be functioning somewhere between the accelerated development and maturity stages. from times immemorial.1 trillion in revenues. with high growth rates. we look at the international scenario. Things changed primarily because of the rising expectations of Indian consumers and the corporate responding quickly. intense competition and moderate profitability. Our study concentrates on organized retailing. super markets. In the last few years a shift has occurred in India from individual retail outlets owned separately and managed distinctively to professionally managed retailing.consumers or producers in the various ways discussed above.

The number of the retail outlets is growing at about 8.568 crore worth of products were sold through theses million retail outlets Manufacturers owned and retail chain store are springing up in urban areas to market consumer goods to the middle class in a much similar style as malls around the globe. in area 3. a rise in this percentage is expected. India has the highest number of retail outlets per capita in the world but has the lowest retail space per capita in the world (2 ft / person).11 Retailing is the second largest industry in the world. Out of these 5 million outlets 96% are smaller than 500 sq.79. one of the largest employers of the world and an index of economic growth. At present about 8% of the Indian population is employed in the retailing industry as against 20% in USA.5% annually in . About 350 million people live. In India there are about 5 million retail outlets varying in sizes and nomenclatures. ft. 00. within one-minute walk of these retail shops. As India moves towards the service oriented economy. Rs.000 villages. There are about 3 million outlets in India’s 3700 designated towns and more than 6. According to retail census conducted by market researcher ORG-MARK.4.

Kearney reports that organized retailing will account for about 20% of the total $8 trillion retail market in India in the next 5-7 years as against 1-2% today.886 7. 00.30.000 to I million. 08. organized retailing seems all set to power ahead from Rs.5%. T. a global management consulting firm.12 the urban areas and in towns with population between 1.000 crore in next live years.836 Source: Shah. Consumer Spend by 2005 (in Rs. the growth rate is about 4. 5000 crore currently to about Rs. crore) Unorganized Retailing Organized Retailing Food and grocery Non food 5. Jindal “Shop at Leisure” Economic Times (4th Feb 2000) .956 23. A. According to Kurt Salmon Association.

according to the form of ownership of various retail units or according to the strategy mix that various retailers adopt.13 THE INDUSTRY STRUCTURE Hence.what the retailing industry is made up of. He is supposed to have a friendly personalized image and his offering reflects the . A family mostly owns it with high dependence on the owner. The structure of the retailing industry can be studied from two perspectives . An unaffiliated or independent retailer is one who owns and operates only one retail outlet. Based on the form of ownership. what it looks like. thus affecting long run success and employee morale. we must first look at its structure . various types of retailers comprising the retailing industry are described below: 1. commencing the study of retailing industry.

lack commitment also. operative chains). bachoomal is a good e. of it.14 tastes and preferences of its owners and customers. which tend to be solid overall strategies. They enjoy benefits of a corporate chain while still maintaining status of individual owners. in addition. A chain retailer or corporate retail chain owns and operates multiple retail outlets (store units) under common ownership.g. These contribute towards limiting the independence of the local owners of the individual units who. There also exist associations of independent retailers. 2. These associations could be formed with other retailers (known as cc. which are formed in order to compete more effectively with corporate chain stores. Kirana shops are very good examples of such retailers. with sponsorship by a wholesaler (known as voluntary chains) rather than by the retailers themselves or by franchise agreements sponsored . Most chains have well defined management philosophies.

thus allowing the franchisee to conduct a given form of business under an established name as per a particular business format in return for an initial fee and a percentage of monthly gross sales as royalty. A franchise system results from a contractual agreement between a franchiser and a retail franchisee. Apart from this. If the existing store is well known. 5. it becomes easier for the LD to generate immediate sales. Thus goods or services lines that it can offer may be restricted. A Leased Department (LD) is a department in a retail store that is rented to an outside party. with a large number of steady customers.15 by manufacturers or distributors (known as dealers) or by service firms (known as franchisees). various requirements are imposed to ensure overall consistency and co-ordination. 3. It helps franchise to create national or international presence quickly and with similar investments (than required by the franchise alone for creating such a presence independently). Vertical Marketing System (VMS) is comprised of all the levels of business along a channel of distribution (Refer to . It operates in categories on the fringe of the store’s major product lines and it must be taken care that it’s not a parasite and does not live off the traffic generated by other parts of the store. 4.

selective or exclusive distribution is sought and existing wholesalers are too expensive or unavailable. to have higher retail markups without raising prices (by eliminating channel members). two independently owned businesses (most likely a manufacturer and retailer) along a channel perform all production and distribution functions without the aid of the third i.e.16 Fig. intensive distribution is sought and customers are widely distributed. to be self . a single firm performs all production and distribution functions without the aid of any other firms. wholesalers and retailers.1). This type of system is most appropriate if manufacturers and retailers are large. Through a fully integrated VMS. wholesaler. In an independent VMS. to have direct contact with final consumers. A fully integrated VMS enables a firm to have total control over its strategy. there are three levels of independently owned businesses manufacturers. In a partially integrated VMS. Such a system is most beneficial if manufacturers and/or retailers are small.

not available from traditional stores Based on the strategy mix that various retailers adopt. the industry will comprise of fifteen types of retailers. Consumer Co-operatives come into existence with the purpose (of some consumers) of operating stores as well or better than traditional retailers. groups of consumers invest in the cooperative. 6. manage operations and share the profits or savings that accrue. elect officers. . of saving money by substituting their own labors or of getting access to healthful. environmentally safe plots.17 sufficient and not rely on others and to have exclusivity over the goods and services offered. In such co-operative arrangements. of getting control over prices. Consumer Co-operatives are retail firms owned by their respective customer members. receive stock certificates.

shopping malls in Gurgaon offer high-end entertainment and a complete enthralling shopping experience. With apparent similarity in design and modern-day amenities. a paradise for shopper-holics and a place to be…. A whole new world. Fully loaded with nearly two dozen operational shopping malls . Giving a tough competition to the local market stores.18 COMPANY PROFILE GURGAON MALLS Gone are the days when one had to rush from one shop to another to pick up the things of their choice. thus transforming the entire map of the city right since their inception. shopping malls in Gurgaon are giving a major boost to the retail industry. Sprawling at an alarming rate.malls in Gurgaon have left no stone unturned to woo people of not only the vicinity but also around. Revolutionizing the standards of life of people of Gurgaon. Gurgaon malls have given an eminent competitive edge to the city that has been longing for some action so far. Gurgaon shopping malls are in no way inferior to shopping malls of the western world.

Right from Sahara Mall. Being the ideal one stop shopping destinations. now more Gurgaon mall developers are putting their best foot forward to gratify even the minutest need of the shoppers. Foreseeing great future ahead. Whether it is a necessity of highend brands or the immediate need of theme specific products. Gurgaon Metropolitan Mall and Mega Mall Gurgaon supersede all. MGF Metropolitan. Gurgaon shopping malls save upon lot of money and time. there is a multitude of alternatives to replete shopping spree. If this progress steadily remains on the track for the next few years. the entire retail bustle will definitely undergo a remarkable change.19 and some 140 in pipeline. Sahara Mall. the city is gearing ahead to soothe shopping spree of the populace. But in terms of regard and recognition. Marketing reports on Retail industry For enthusiast shoppers. DLF Mega Mall to Vishal Mega Mart. . DLF City Centre. there is a long streak of shopping malls in Gurgaon to follow. Gurgaon malls are becoming a perfect shopping destination to visit.

it enthralls shoppers with its huge range of latest offerings. Nike.00 sq. Retailing in India. Shoppers Stop and Benetton.89 acre. Meanwhile Gurgaon’s Metropolitan Mall is a full air-conditioned shopping location with the readability of seven screen multiplex. Fully decked with state-of-the-art amenities. mostly consists of small family-owned shops that stock particular kinds of goods. area.. Extended over 30. with a few exceptions. it is one another perfect destination for a shopping enthusiast to explore. Organised retailing first came to the South and is now spreading all over India by the entry of a number of companies ? notably. Needless to say retailing is scattered and disorganised. PVR.ft. exotic food joints and lots of other enticing amenities. Sahara Mall is fascinating the visitors since March 2001.ft. Reebok and a host of many others. the Piramals with Crossroads the Rajan . the Tatas with Trent.000 sq. the Mega Mall of Gurgaon enchants visitors with a three screen multiplex and tenders customers with latest offerings from top brand stores of Nakshatra. Positioned over the large area of 400. As far as the Mega Mall of Gurgaon is related.20 Spread over an area of 3. Gurgoan’s Metropolitan mall has leading brands such as McDonald’s.

As things later turned out. that is all most would-be shoppers could do when Crossroads opened to the public. exclusivity at Crossroads is being replaced by affordability. the Goenkas with Foodworld and so on. And the evolution is still on. At that time. Two years down the line. Now pedestrian consumer durables shops selling Whirlpool refrigerators and Videocon televisions rub shoulders with Swarovski?s outlets. Rohit Bal and Swarovski ? of course. maybe he meant window-shopping! For. they were not for everyone and . Piramal Holdings chairman Ajay Piramal at a press meet said at Crossroads "there would be something for everyone.21 Raheja group with Globus. The Trents and the Crossroads soon proved with their high prices that. Ritu Beri. Mumbai?s first shopping multiplex. the mall was abounding with exclusive names like Shyam Ahuja." The implication clearly was that most people could do some shopping at the mall. Prior to the formal launch of the Piramals-owned Crossroads. at an astronomical price.

22 only the well-heeled could afford to shop there. Big Bazaar in Kolkata. RPG?s Giant in Hyderabad." Perhaps no other format typifies the change so much as the . Established retailers are now experimenting with new formats in infrastructure. Subsequently. Says Big Bazaar MD Kishore Biyani: "On the list of top retailers in the world quite a few are discounters. The biggest change in 2001. therefore. pricing and customer-care. Discount stores are slowly arriving in India and industry insiders feel they will spearhead a revolution in organised retailing. Bombay Bazaar in Mumbai. Subhiksa in Chennai. when the climbdown started it became clear that this is not the way it should be. was on the price front. Incidentally. Hyderabad and Bangalore have one thing in common ? they all price their products below MRP. Margin Free in Kerala. Around 60 per cent of the business abroad comes from this format. the largest retailer in the world. is a discount store. Retail industry experts say that in 2001. Wal-Mart. retailing entered a new phase in India.

display. Globally. and have an extremely complex supply chain. as they are several times bigger in scope and scale than department stores. most national-level retailers have stayed away from the hypermarket format largely because of the complexity of managing the supply chain and even a discount store like the 70store chain Subhiksha has stuck to food and provisions and restricted itself to Tamil Nadu. ideally. consumers. Hypermarkets are designed to generate higher revenues and delivery gains in terms of branding. stocks 60 per cent food and 40 per cent nonfood items. So far. Some call them the Godzillas of retailing. variety and choice for partners. hypermarkets account for 60 per cent of the retail sales. overheads stay low and they are able to function like discount stores. a few established . However. They are usually located at the edge-of-the-town. merchandising. A hypermarket is somewhat of a big discount store that. Owing to the huge volume of sales generated at hypermarkets. retailers and the government alike.23 hypermarkets.

It stocks close to 1. efficient distribution of high-quality fresh foods and fast-moving consumer goods. convenience and drugstore operations. offering consumers value for money through low-cost.000-sq ft hypermarket is co-owned by Dairy Farm. Kolkata and Bangalore by the Pantaloon group. Bangalore and Chennai. Health and Glow and Music World fame opened its hypermarket by the name of Giant early this year in Hyderabad.24 retailers are setting up hypermarkets in India. set up in Hyderabad. For instance. Dairy Farms core strategy is to focus on supermarket.000-crore RPG group of Food World.5 lakh items across 18 product categories and relies on . hypermarket. RPG and Dairy Farm plan to launch eight to 10 such stores in three years in cities like Pune. a leading pan-Asian food and drugstore retailer based in Hong Kong. and we are growing month-on-month. Say company officials: "The response has been fantastic. the Rs 6. Another such hypermarket is Big Bazaar." The 50.

entailing a total investment of Rs 225 crore. These increasingly offer the convenience of . Consumers here rely on a network of local mom-and-pop stores for daily shopping.25 aggressive pricing to pull in customers as well as bludgeon competition.000 clients each day with daily sales of Rs 25-30 lakh from all the three stores. RPG plans to have 15 Giant stores in the next five years. Says Biyani: "We are doing better than expected ? we get around 22. Pantaloon Retails Big Bazaar among others." Big Bazaar invested a total of Rs 30 crore to have a discount store each in the three centres. The total investment will be Rs 25-30 crore and the turnover expected from each store is around Rs 50 crore. beginning March 2002. the north ? particularly Delhi ? has been devoid of such stores. Biyani says Big Bazaar will open a store in Gurgaon by early 2002 and three stores in Mumbai. While southern and western India have seen a range of hypermarkets such as the RPG groups Giant in Hyderabad.

which is currently limited . owner of a chain of health and beauty product stores in Delhi. The Home Store plans to follow a business plan where it will buy out the real estate for all the proposed hypermarkets and will later rent out a major portion and also take a cut in margins. (THS). managing director The Home Store.26 tele-shopping as well. To be called Metro Sabka Bazar (Everybodys Market).000 sq ft. two New Delhibased retail chains and Ansal Housing and Construction decided to jointly set up six hypermarkets in New Delhi. The retail chains include Home Store (India). and Lifespring. The three will invest more than Rs 50 crore to set up six hypermarkets across Delhi by year 2003. According to Arif Sheikh. The company estimates that each hypermarket will involve an investment of Rs 50 crore. THS has the retailing expertise and will need to sell at competitive prices to keep out expenses and overheads low. a retailer of home products and accessories. each store will be spread over 50. The reason for THSs diversification clearly is to expand its customer base. In a recent development.

known for its discounted pricing in countries like the UK. The Home Store already operates 17 outlets in 10 Indian cities. are clearly a volumes game and in India. M&S. has ventured into India through the franchisee route in a tie-up with Planet Sport. New retail brand that entered India in year 2001 was the ?8billion Marks and Spencer (M&S) that opened outlets in Mumbai and Delhi. say retail industry experts. Hypermarkets.27 to a niche audience. . Unlike in other countries M&S is going in for fancy pricing and may find the going tough. with its value-for-money conscious public. thus. if managed well they could change the retail scene for good. although none of the stores are hypermarkets.

while other retailers (Indian and global) are poised to spring into action. Industry watchers are taken aback by the speed and ease with which Reliance has inaugurated its retail operations. Says Arvind Singhal.28 Retailers Rush in to Grab the Market The Indian retail sector has suddenly become active. While attention had been focused on the mall boom close to 220 malls will be operational by the end of 2008 Reliance Industries led by Mukesh Ambani has launched its retail operations. KSA Technopak: "Nowhere in the world has a project started on such a scale it has taken just 15 months from planning to execution." (See: RIL launches first Reliance Fresh retail store in Hyderabad) Technopak anticipates that Reliance's entry into retail will spur others into action and the top 10 players in the modern retail trade are likely to pump in $18-20 billion in five years to generate as much as $50-60 billion in revenue by 2011. that sell fruits vegetables and grocery. branded Reliance Retail in the country by opening outlets in Hyderabad. This investment . head of retail consultancy.

Wal-Mart and Tesco will inevitably move in either with franchised.000 outlets in three years. the Adity Birla Group. cash and carry or plain retail models. all of whom are finalising their retail plans while global players like Carrefour. chairman of Bharti Enterprises is planning a tie up for his FieldFresh Foods Pvt Ltd with the UK-based Tesco to set up chain stores in India. German retailer Metro already operates a cash and carry store in Bangalore and is scheduled to open outlets in Hyderabad soon. Reliance will however. . RP Goenka's RPG Enterprises and the Ruia's Essar Group.29 will be made in the top 150 cities.3 billion) to set up 6. though impact would be visible in at least the top 500 if not more. telecom maverick Sunil Mittal's Bharti group. The Aditya Birla Group is expected to open its first store by the middle of next year. Unconfirmed reports say the Aditya Birla Group may spend Rs15.000 crore ($3. soon encounter competition from large domestic players like ITC. Sunil Mittal.

and has initiated talks with Indian companies for franchised or cash and carry operations. Earlier Wal-Mart had set up a project office in Delhi from where it was said to be working on various entry strategies. Jain. Wal-Mart has appointed Raj Jain (former CEO of Whirlpool of India) as the CEO of its proposed Indian operations. As a first step towards setting up a presence in India. which includes the head of finance. has been hired specifically to spearhead the retail company's entry into India. The US-based retail chain currently has a set-up in Bangalore to source products for its international retail operations. currently undergoing training in Shanghai. marketing and legal affairs.30 Wal-Mart's recent moves indicate that it is no longer willing to wait for the Indian government to drag its feet on the issue of FDI in retail. recognized globally as the life blood of organised retail . Wal-Mart is also believed to be building a team in India. Wal-Mart is said to be extremely concerned about the impact that Reliance Retail will make on the groceries and fresh foods market.

Nilgiri Dairy Farms.31 the world over. theirs is a token presence and not a competitive threat. Until now. FoodBazaar. ITC. Against this Mukesh Ambani has announced a Rs25. (See: RIL to invest Rs25. Dabur and Marico are putting in place systems to service Reliance as the off take of consumer goods from HLL is expected to be large. Indian retailers have tended to minimize their presence in this segment mainly due to high investments required. 000-crore investment for its Reliance Fresh initiative and Reliance Select. . Though Spencer's.000 crore in retail) investment in its backroom and supply chain and cold chain is also said to be huge. For fresh produce it plans to source fruits and vegetables directly from farmers eliminating middlemen and for groceries it has tied up with FMCG manufacturers to source stocks directly from company factories. Dairy Farms are present in the fresh food segment. Sources say the large FMCG players like HLL.

According to reports. Carrefour was the first international retailer to set up shop in Asia in 1989 in Taiwan. Carrefour's plans include opening 200 hypermarkets throughout India in the next 10 years.5-billion Carrefour is also set to enter India along with Dubai-based Landmark group which operates the Lifestyle chain of stores in India. Carrefour operates 7. In 2004 it recalled its executives after postponing plans to set up shop in India due to the lack of clarity on foreign direct investment (FDI) in the retail sector.8 per cent of the group's sales originating from France. . Indonesia.000 stores in 29 countries worldwide and has 47.32 The world's second largest retail chain. Incidentally. the €74. The remaining sales come from its hypermarket store format which the group pioneered. Carrefour had maintained a procurement office in Gurgaon near Delhi from 2000 to 2004 from where it sourced food products from India through international distribution agents. Thailand and China. Malaysia.

Organised retail represents just three per cent of the overall industry.33 Carrefour India is understood to be exploring formats like the cash-and-carry and franchisee model to facilitate its entry. German retailer Metro is also following the cash-and-carry model in India and has set up two distribution centres in Bangalore and is in the process of setting up more in Hyderabad and Kolkata. but is growing at 30 per cent per year. PANTALOON (BIG BAZAR) . A recent study by real estate services provider Frank Knight India revealed that the Indian retail sector is worth $210 billion and is expected to grow at between five and seven per cent per year.

the company is expecting over 80 pc increase in revenues in the next financial year Big Bazaar .7 lakh square feet. The company has invested about Rs16 crore for setting up the new retail outlet in Hyderabad. With the new expansion plans in place. The size of the outlets ranges from 40.000 square feet to 1. The company currently has 40 outlets with 10 Big Bazaars in the south. which spreads over 52.34 Pantaloon Retail is looking at launching 60 Big Bazaar new outlets in the next eight months and is targeting to open 100 Big Bazaars this year. It is planning to invest an average of Rs15 crore on each outlet.000 square feet.

The company owns and manages multiple retail formats that cater to a wide cross-section of the Indian society and is able to capture almost the entire consumption basket of the Indian consumer.htm Big Bazaar is a chain of shopping malls in India currently with 29 outlets. Pantaloon Retail (India) Limited. the company operates through 4 million square feet of retail .pantaloon. Headquartered in Mumbai (Bombay). It works on same the economy model as Wal-Mart and has had considerable success in many Indian cities and small towns. the head of Pantaloon Retail India Ltd.com/bigbazaar. is India's leading retail company with presence across multiple lines of businesses. The idea was pioneered by entrepreneur Kishore Biyani. owned by the Pantaloon Group. India Retail Pantaloon Group Kishore Biyani Is se sasta aur accha kahi nahin http://www.35 Type Founded Headquarters Industry Parent Owner Slogan Website Subsidiary of Pantaloon Group 2001 Mumbai.

aLL (fashion apparel for plus-size individuals). like choice.36 space. with aspects of modern retail. Some of it's other formats include. has over 140 stores across 32 cities in India and employs over 14. E-Zone (consumer electronics). Shoe Factory (footwear) and Blue Sky (fashion accessories). Depot (books. The company registered a turnover of Rs 2019 crore for FY 2005-06. Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chain. convenience and hygiene. a first of its kind seamless mall located in the heart of major Indian cities. it launched Big Bazaar. music. futurebazaar. Collection i (home improvement products). . In 2001. a hypermarket chain that combines the look and feel of Indian bazaars. food and grocery chain and launch Central. It has recently launched its retailing venture. This was followed by Food Bazaar. gifts and stationary). Pantaloons in Kolkata.000 people.com.

Future Brands (management of all brands owned or managed by group companies). Gini & Jony and Liberty Shoes. Manipal Healthcare. Pantaloon Industries Ltd. Planet Retail. a group company owns the franchisee of international brands like Marks & Spencer. Future Group Pantaloon Retail is the flagship enterprise of the Future Group.37 The group's subsidiary companies include. The group also has joint venture companies with a number of partners including French retailer Etam group. Talwalkar's. Home Solutions Retail India Ltd. Galaxy Entertainment and Indus League Clothing. Next and Guess in India. The Future Group operates through six verticals: Future Retail (encompassing all retail businesses). which is positioned to cater to the entire Indian consumption space. Future Space (management of retail real . Lee Cooper. Debenhams. Future Capital (financial products and services).

Future Capital Holdings. Future Logistics (management of supply chain and distribution) and Future Media (development and management of retail media). It also plans to get into insurance." One of the core values at Future Group is. CORPORATE STATEMENTS Future Group Manifesto . It manages two real estate investment funds (Horizon and Kshitij) and consumer-related private equity fund. Indivision. Retain values. consumer credit and other consumer-related financial products and services in the near future. Future Group's vision is to. Everywhere. 'Indianess' and its corporate credo is – Rewrite rules.38 estate). focuses on asset management and consumer finance. Every time to Every Indian Consumer in the most profitable manner. "Deliver Everything. the group's financial arm.

• Their customers will not just get what they need. • Future Group. rewards and perfection. ability to evolve. . strength. Future encourages to explore areas yet unexplored. employees. it will write success stories. unlearn and re-learn.39 “Future” – the word which signifies optimism. beauty. shareholders. create new opportunities and new successes. but also get them where. write rules yet unwritten. associates and partners. how and when they need. because it effect consumption is development. ability to learn. will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption Thereby. • They will not just post satisfactory results. socio-economic development for the customers. achievement. To strive for a glorious future brings to Company strength. growth.

do just one thing. .40 • They will not just operate efficiently in the Indian economy. Every time for Every Indian Consumer in the most profitable manner. The Company shall keep relearning and in this process. It is this understanding that has helped us succeed. Group Vision Future Group shall deliver Everything. Everywhere. Group Mission • The Company share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. will evolve it. And it is this that will help us succeed in the Future. • They will not just spot trends. but will set trends by marrying its understanding of the Indian consumer to their needs of tomorrow.

• They shall infuse Indian brands with confidence and renewed ambition. creating retail realty.conscious and committed to quality in whatever we do. Core Values • Indianness: confidence in ourselves. Leadership: to be a leader.41 • They will be the trendsetters in evolving delivery formats. . sincerity. cost. • They shall be efficient. humility and united determination shall be the driving force to make Company successful. making consumption affordable for all customer segments – for classes and for masses. • They shall ensure that their positive attitude. both in thought and • business.

Introspection: leading to purposeful thinking. . knowledge and information. • Openness: to be open and receptive to new ideas.42 • Respect & Humility: to respect every individual and be humble in our conduct. • Valuing and Nurturing Relationships: to build long term relationships. to meet challenges. • Flow: to respect and understand the universal laws of nature. • Adaptability: to be flexible and adaptable. business and action. • Simplicity & Positivity: Simplicity and positivity in our thought.

Pantaloons – India’s family store launched in Kolkata. Launch of Pantaloons trouser. The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the nation. 2005 Fashion Station .43 Major Milestones 1987 Company incorporated as Manz Wear Private Limited. Eat.India’s first hypermarket chain launched.exclusive stores for plus-size individuals is launched . 1991 1992 1994 Launch of BARE. ‘Is se sasta aur accha kahi nahin’ . 2002 2004 Food Bazaar. Central – ‘Shop. The company starts the distribution of branded garments through multi-brand retail outlets across the nation.the popular fashion chain is launched aLL – ‘a little larger’ . India’s first formal trouser brand.India’s first seamless mall is launched in Bangalore. 1995 1997 2001 John Miller – Formal shirt brand launched. the Indian jeans brand. Initial public offer (IPO) was made in the month of May. Celebrate In The Heart Of Our City’ . Big Bazaar. the supermarket chain is launched.

Group enters into joint venture agreements with ETAM Group and General. Major Achievements of Pantaloon Retail • • • • • Chosen as International Retailer for the Year 2007 Chosen as Emerging Market Retailer of the Year 2007 Best Employers in India (Rank 14th) in the Hewitt Best Employers 2007 survey. and Best Food & Grocery Store JOINT VENTURES COMPANIES .com are launched across the nation. Best Retail Destination. Plans forays into insurance and consumer credit. Depot and futurebazaar. EZone. Best Managed Company in India (Mid-cap) for the year 2006. Won Images Retail Awards 2006 for Best Value Retail Store. Shoe Factory.44 2006 Future Capital Holdings. the company’s financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Multiple retail formats including Collection I. Furniture Bazaar.

. The group is a joint venture partner in Planet Retail Holdings Ltd. GJ Future Fashions GJ Future Fashions is a joint venture with kids apparel manufacturer . lifestyle and leisure retail chain.45 Planet Retail Holdings Ltd. along with Singapore-based CapitaLand Limited. It also owns the franchisee and distribution rights of brands like Marks & Spencer.Gini & Jony. Guess. Debenhams and Puma in India. which operates sports. CapitaLand Retail India The group is a joint venture partner in CapitaLand Retail India. The company provides retail management services to retail . Footmart Retail Footmart Retail is a joint venture with Liberty Shoes and is engaged in the retailing of footwear products in India.

ETAM and the group. ETAM Future Fashions India Pvt. is a joint venture with French-retailer. The company is involved in manufacturing and distribution of women’s fashion and lingerie products. Ltd..46 properties owned or managed by various group companies and investment funds. Ltd. ETAM Future Fashions India Pvt. AWARDS & RECOGNITION .

The award was presented to Biyani at NRF's 96th annual convention and expo on 16 January in New York. Accepting the award Biyani said. Previous recipients of this award are Metro AG (Germany). "It would have been more appropriate if we had got the award after global retailers . managing director. Ito Tokada Group (Japan). National Retail Federation (NRF). Pantaloon Retail India Ltd. Carrefour (France). Zara (Spain) and Boticario (Brazil). has conferred 'international retailer of the year award' on Kishore Biyani. NRF is the world's largest retail trade association with a membership that comprises all retail formats and channels of distribution and its award is traditionally given to companies that achieve an international reputation for creative genius. inspirational leadership and distinguished service to the retail industry.47 Kishore Biyani conferred 'international retailer of the year' award 18 January 2007 Apex US retail body.

The other awardees were Reed Hastings. everywhere through every format of retailing". We have a deep understanding of Indian consumers and we offer everything they need every time. who received NRF's innovator of the year award and Millard Drexler. chairman. . founder chairman and CEO of Netflix. "Pantaloon Retail India Ltd is the unanimous choice of the jury for the International Retailer of the Year Award this year.48 have stepped into India. We applaud the impressive growth of the organisation whose turnover is poised to become $6 billion by 2010". Inc. chairman and CEO. According to Farooq Kathwari. "We can take a person out of India but not India out of a person. NRF. We are in a no-competition scenario currently but we excel in what we do to delight our Indian consumers." Biyani also said. J Crew Group. who received NRF's gold medal for retailing excellence.

4 million member organisations in the US and across the world. Zara and Boticario. Retail Asia. Carrefour. Retail Asia Pacific Top 500 Awards International Retailer of the Year . Some of the past recipients of this award include Metro AG. Zara and Boticario.Pantaloon Retail (India) Ltd. Carrefour. The National Retail Federation is the largest retail trade association with over 1.49 2006 National Retail Federation International Retailer of the Year . Images Retail Awards 2006 • Mr. The National Retail Federation is the largest retail trade association with over 1.4 million member organisations in the US and across the world. Ito-Yokado. Some of the past recipients of this award include Metro AG. Ito-Yokado.Pantaloon Retail (India) Ltd. Kishore Biyani – Retail Face of the year .

Most preferred. Food and Grocery store • • Readers Digest Platinum Trusted Brand Award . large.50 • Big Bazaar – Best Value Retail Store Big Bazaar – Best Retail Destination Food Bazaar – Best Food and Grocery Store • • Readers Digest Platinum Trusted Brand Award • Big Bazaar .Earning a trusted Place in the everyday lives of consumers CNBC Awaaz Consumer Awards • Big Bazaar: Most preferred store Retail Asia Publishing PRIL – Numero Uno Retail Organisation of India 2005 Readers Digest and Awaaz consumer Award Big Bazaar .

Earning a trusted Place in the everyday lives of consumers Images Retail Awards 2005 • PRIL – Most admired retailer of the year Food Bazaar .51 • Big Bazaar .Retailer of the year (food and grocery) Big Bazaar – Retailer of the year (value retailing) Central – Retail launch of the year • • • Business Today selected PRIL among: • Top 20 companies in India to watch in 2005 India’s most investor-friendly companies in the top 75 India’s biggest wealth creators in the top 100 • • 2004 Images Retail Awards 2004 .

52 • PRIL – Most admired retailer of the year Food Bazaar .Retailer of the year (food and grocery) Big Bazaar – Retailer of the year (value retailing) Central – Retail launch of the year • • • Reid & Taylor and DLF Awards PRIL – Retailer of the year 2003 Indian Express Award PRIL.Marketing excellence and excellence in brand building RESEARCH 0BJECTIVE .

RESEARCH METHODOLOGY . 3. 2. Finally to relate the above findings so as to get a comprehensive picture of where the small retail store is today and where it is headed. To identify the retailers point of view regarding change in sales volume. To identify change in the behavior that is preference of the small retail store over the supermarket or viceversa.53 The objective of the study is:1.

Periodicals & through internet CONCLUSIONS . Primary data sources comprised of :a.54 The methodology adopted for collection of data is well as the various application policies of the retailers. Newspapers c. Magazines d. Books b. Source of data:1.

branded and unbranded. buying habits and life styles of the people.55 The growing and changing trends in retail industry has changed the whole customer perception and their buying habits. Consumer of India the half of the population still lives below the poverty line so there are the many factors which effect the growth of these kinds of super-stores. The market is flooded with products .customer loyalty with increasing number of products of similar quality hitting the market? Differentiation plays the lead role. The fast trends of retailing from unorganized to organize and the profit emerging from the business has promoted many of the bigger players to enter in the market and many of them ready to enter. Gone are the days of . There is a close relation between the growth of brands and the growth of the organized retailing. display all the products and the most attractive product catches the customer attention. purchasing power. The organized retail chains. Companies selling branded products prefer to have big and organized retail outlets such . like.

The customers of the 21st century would expect to pick his/her own products form an array of choices rather than asking the local kirana wall’s to deliver a list of monthly groceries. .56 as supermarkets where there can be differentiated from unbranded products. Still the customer perception is positive about the changing trend most of the people prefer to shape at superstores and agree that the trends should be changed from unorganized retailing to organized retailing. the way of distribution of products has gained importance in the past decade. Thus.

google. journals.com NEWSPAPER:• • • Time of India Economic Times Daynik Jagran. the project work the following were the. .com www.vishalmegamart.57 BIBLOGRAPHY For the successful completion of the project work. websites that were consulted & taken help of:JOURNALS:• • • Business today Business world India today WEBSITES:• • www.

58 .

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