“To study the growth of Retail sector in India: A Case of Big Bazaar”
-: SUBMITTED BY:Mr. Avinash Chandrakant Silimkar




I hereby declare that the Initial Report entitled “An Analytical Study of the Development of Retail Marketing in India : A Case of Big Bazaar” submitted for Management Thesis-II , under the supervision & guidance of Dr. Meena Vazirani, in partial fulfillment of MBA, ICFAI National College, Vashi. Place: Vashi Parte Date: 18/12/2008 Name: Mr. Jayesh


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___________________________________ ______________________________________________________________________submitted by_____________________________________ Enroll No: _____________________________ during Semester _________ of the MBA Program (The Class of 2009) embodies original work done by him.

Signature of the Faculty Supervisor

Name (in Capitals) Designation Campus

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TABLE OF CONTENTS Page no 5 6 7 8 12 14 19 33 42 43 44

SR.NO 1 2 3 4 5 6 9 10 11 12 13



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Meena Vazirani who helped and guided me throughout the development of the project. LIST OF TABLES & ILLUSTRATIONS INRERIM REPORT Page 5 . I am also thankful to Principal for his valuable support & guidance. I would like to thank everyone who contributed for the success of this project. and inspired me to complete the project successfully.ACKNOWLEDGEMENT I took this opportunity to express my gratitude to all those who have helped me to make this project a success. I must thank them whose valuable guidance makes it so simple and support me during the project development directly or indirectly. I would like to thankful my Dr. He provided me all kind of information.

Sr. no PARTICULARS Pie chart 1 PAGE NO 08 2 Tables 23 & 24 3 Picture 19 & 21 ABBREVIATIONS  SWOT: strength weakness opportunities threats INRERIM REPORT Page 6 .

 Porters 5 force model  1 threat of new entrant  2 the bargaining power of buyers  3 the bargaining power of suppliers  4 the rivalry among existing players  5 the threat of substitute products  GDP: gross domestic product  FMCG: Fast moving consumer goods  PRIL: Pantaloon Retail India Limited INRERIM REPORT Page 7 .

The whole concept of shopping has altered in terms of format and consumer buying behavior. one of India’s largest industries. ushering in a revolution in shopping in India. Accounting for over 10 per cent of the country’s GDP and around eight per cent of the employment retailing in India is gradually inching its way toward becoming the next boom industry. INRERIM REPORT Page 8 . Retailing in India is gradually inching its way toward becoming the next boom industry. multi-storied malls and huge complexes offer shopping. has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment. And if industry experts are to be believed.Introduction The Indian Retail Industry is the largest among all the industries. the prospects of both the sectors are mutually dependent on each other. Retail. entertainment and food all under one roof. The Indian population is witnessing a significant change in its demographics. Modern retail has entered India as seen in sprawling shopping centers. Retail and real estate are the two booming sectors of India in the present times. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market.

hefty pay packets. nuclear families in urban areas. entertainment and food all under one roof. multiplex.As the contemporary retail sector in India is reflected in sprawling shopping centers. These key factors have been the growth drivers of the organized retail sector in India INRERIM REPORT Page 9 . the concept of shopping has altered in terms of format and consumer buying behavior. ushering in a revolution in shopping in India.malls and huge complexes offer shopping. along with increasing working-women population and emerging opportunities in the services sector. In India. The trends that are driving the growth of the retail sector in India are • • • • Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items (CHART) Another credible factor in the prospects of the retail sector in India is the increase in the young working population. This has also contributed to large-scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business.

Home & Office Products. Electronics. INRERIM REPORT Page 10 . supermarkets and specialty stores. With this the retail sector in India is witnessing rejuvenation as traditional markets make way for new formats such as departmental stores. Cosmetics and Toiletries. hypermarkets. Travel and Leisure and many more. Appliances.which now boast of retailing almost all the preferences of life .Apparel & Accessories.

Textiles sector with companies like Bombay Dyeing.example of reaching to the bottom of the pyramid. Crossword and Fountainhead in books. with facilities like car parking Targeted to provide a complete destination experience for all segments of society Emergence of hyper and super markets trying to provide customer with 3 V’s . Subhiksha and Nilgiris in food and FMCG. 13. Post 1995 onwards saw an emergence of shopping centers Mainly in urban areas.g. For e.000 crore. At year end of 2000 the size of the Indian organized retail industry is estimated at Rs. Planet M and Music World in music.INDUSTRY EVOLUTION • • Traditionally retailing in India can be traced to The emergence of the neighborhood ‘Kirana’ stores catering to the convenience of the consumers Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission 1980s experienced slow change as India began to open up economy. • • • • • • • • • • • • OBJECTIVE INRERIM REPORT Page 11 . Variety and Volume Expanding target consumer segment: The Sachet revolution .Value. Food World. S Kumar's and Grasim first saw the emergence of retail chains Later Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. Raymond's.

which will show a specific way to work on Management Thesis. To understand the benefits to customers. which we have selected. To identify the paradigm shifts in retailing business with increasing scope of technology / e-business and develop strategies accordingly 6.To perform a Management Thesis there must be certain objectives in front of the student. wholesalers. manufactures. are as bellow. understand its significance for the retailing business and develop strategies accordingly 5. 9. To know the factors affecting for retail industry. 3. For the betterment of Management Thesis I also set some objectives in front of me. INRERIM REPORT Page 12 . I have performed work according these objectives. time and tem management. 8. this proved very helpful in Management Thesis. To find the factors which are behind the change of Indian Retailing Industry? 7. and the economy from Retail sector. 4. The objectives. 2. when we see objectives for working on Management Thesis we can effectively utilize our strength. To know the growth of retail industry with respect to big bazaar. To identify and understand the significance of retailing in the current business environment To develop guidelines to build a retailing business To identify the competition in the market and develop strategies for retailing business accordingly To identify significant characteristics of the end consumer. 1. In reality objectives is nothing but a part of future planning and effective planning is half work done.

To know about marketing strategies. 11. 15. weaknesses. 17. To know about its strengths. To know about Big Bazaar. To know about its customers To know about its Promoters & Organizational structure. 18.10. Last but not the least to know about retail business Research Methodology INRERIM REPORT Page 13 . To analyze problems which I am facing while working on field. 14. To know about its competitors. 12. 13. To earn practical knowledge. 16. opportunities & threats.

etc. We have taken in to consideration the views of manager. sales manager. So we go through the research plan. The research plan is as follows:While working on our Management Thesis. marketing manager. marketing manager. & our professors about the INRERIM REPORT Page 14 .Research Plan obtain pioneer place while working on any project. Their views & suggestions proved very useful in the successful completion of our Management Thesis. auditor. employees. We developed the research plan into various components:A] Data sources B] Research instruments C] Sampling methods A] Data Sources 1) Primary data:Primary data is collected from the locality of the coverage area. employees. etc. & our professors enlighten the use of theoretical concepts in actual business world. sales manager. the participation of manager. auditor.

This data prepared the basis for the Management Thesis report. We used these questions as a research instruments for knowing the facts.e. Big Bazaar. These questions are as follows:1) Questions related to their marketing management. some data is also collected by we ourselves. we have selected some questions in concern with the organization i. INRERIM REPORT Page 15 .relevant subject & also pay attention towards their suggestions. 2) Secondary data:Same as above some data is collected from the media also. Beside of all this. Their suggestions are incorporated in the report. i) Newspapers ii) Magazines iii) Books on Management iv) Text books B] Research Instruments To collect the primary data for the Management Thesis.

The points considered in the sampling plan are as following:- I) Sampling Unit:The staff of the organization including the managers of different departments and the employees was targeted for the Management Thesis. 11) Questions related to role of personal manager in the organization. INRERIM REPORT Page 16 . 3) Questions related to their investment. C] Sampling Plan A sampling plan is most important to do Management Thesis successfully. 5) Questions related to their advertise expenditure. 8) Questions related to their organizational structure.2) Questions related to their capital. 4) Questions related to their turn over. 9) Questions related to training & development of employers 10) Questions related to motivation. 6) Questions related to their interpersonal relations with Customers 7) Questions related to their competitors.

II) Sampling Quantity:The sampling quantity was 24 & all are related with Big Bazaar.e. Apart from this we also considered some customers of Big Bazaar. iii) Coverage:The coverage of the survey was whole organization i. Big Bazaar. INRERIM REPORT Page 17 .

LIMITATION Collection of data related to marketing strategy of Big Bazzar is a difficult task because this information is very rarely available with secondary resources therefore it requires more time and lot of efforts. Findings and suggestions INRERIM REPORT Page 18 .

Big Bazaar is not a hypermarket and is more of a value-for-money format and that is what the new company would stand for. DJ&C is today worth Rs 200 crore in Bazaar’s kitty. Malhotra says. Big Bazaar is expecting to drive greater efficiencies in its back-end operations. “Although we have registered a new company under the name of Future Hypermarket. We believe Big Bazaar has moved into a mature phase and that is a compelling reason to launch our youth brand at a national level. Speaking to Business Line.Big Bazaar is planning to position itself as a value retailer after being hived off as an independent company within the Future Group. “We intend re-launching it as a national brand through other retail outlets by the end of this month. With its standalone status as a company. Big Bazaar contributes 64 per cent of the Future Group’s total turnover of Rs 7. Mr.” states Mr. Targeting the youth segment. As Mr. Chief Executive Officer. Big Bazaar is open to new categories being tested through its INRERIM REPORT Page 19 . The DJ&C brand has crossed a turnover of Rs 200 crore and now has enough pull to take it to its next level. Rajan Malhotra. Having forged long-term relationships with a host of FMCG players through MoUs. Malhotra. Besides. DJ & C.000 crore. said.” With amalgamation of formats under various heads ranging from Food Bazaar to Furniture Bazaar. “There would be clarity for the concept as we become a separate company. as a national brand by giving the brand rights to Future Brands (the group vertical handling brands in the group). Big Bazaar. we intend changing its name. it is looking forward to re-launching its private label. There would be back-end efficiency in our operations. Big Bazaar is looking at distinguishing itself as a ‘value’ retailer in its segment rather than being clubbed with the rest of the existing hypermarkets in the country. While a new company has been floated under the name of Future Hypermarket. the retailer is now considering a new name to represent its discount format.” Currently.

Future Group is one of the country's leading business groups present in retail. Top 10. a business group catering to the entire Indian consumption space. a chain of fashion outlets. Big Bazaar has roped in cricketer and India ODI captain Mahendra Singh Dhoni as the brand ambassador for its extensive collection of fashion apparel. blends the look. The company's leading formats include Pantaloons. Big Bazaar. Home Solutions Retail (India) Limited. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. is India's leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer marker. Meanwhile. retail spaces and logistics. Shoe Factory. consumer a large-format home solutions store. a chain of seamless destination malls. Collection i.formats. Fashion Station.000 INRERIM REPORT Page 20 . Pantaloon Retail (India) Limited. Pantaloon Retail (India) Limited operates over 7 million square feet of retail space. touch and feel of Indian bazaars with aspects of modern retail like choice. operates Home Town. Food Bazaar. asset management.000 people. has over 1000 stores across 51 cities in India and employs over 24. the company operates over 7 million square feet of retail space. Headquartered in Mumbai (Bombay). insurance. Malhotra. a uniquely Indian hypermarket chain. futurebazaar. The company also operates an online portal. Blue Sky. all. retail media. Pantaloon Retail is the flagship company of Future Group. convenience and quality and Central. “We are open to the highest selling brands such as Pears and Dove opening the new age categories at our stores. Some of its other formats include. Depot. a supermarket chain. selling home furniture products and E-Zone focused on catering to the consumer electronics segment. Brand Factory. has over 1000 stores across 51 cities in India and employs over 24.” says Mr. bazaar and Star and Sitara. The group's flagship company. A subsidiary company.

Indian Retail Market and Growth of SMEs INRERIM REPORT Page 21 . Food Bazaar. Some of its leading retail formats include. Big Bazaar...people. Central. Pantaloons.

With Indian GDP expected to grow at 7-8 % in the next coming years.5% to almost 25% of the total retail market by 2018. which will lead to increase in the share of modern retail from the current 4.Source: Technopak Advisors The retail market in India is estimated at about US$ 410 billion and constitutes about 60% of private consumption and about 35% of India's GDP. In recent years. who have committed investments worth US $30 billion. the retail market is expected to touch US $860 billion by 2018. this sector has witnessed a lot of interest from both domestic and global players. INRERIM REPORT Page 22 .

Though the market has been dominated by unorganized players. nearly 5 million sell food and related products. Organized retail in India raked in US$ 25. the entry of domestic and international organized players is set to change the scenario. India's per capita retailing space is thus the lowest in the world. The following graph shows an overall trend of the global retail revenues. Simultaneously. Around 7% of the population in India is engaged in retailing. Per capita retailing space is about 2 sq. a whopping growth rate of 49. India has one of the largest numbers of retail outlets in the world.99 billion in 2006-07. as compared to 20% in the USA. Organized retail has increased its share from 5 per cent of total retail sales in 2006 to 8 per cent in 2007. Analysis of the situation INRERIM REPORT Page 23 . ft in the U S).The Indian retail market is the fifth largest retail destination globally.73 per cent (according to the Credit Rating and Information Services of India).5% is slated to grow at the same rate till 2009. modern retail is likely to increase its share in the total retail market to 22 per cent by 2010. Of the 12 million retail outlets present in the country. ft (compared to 16 sq. the global retail industry is witnessing a CAGR of 5. Statistically.44 billion turnover in 2007-08 as against US$ 16. The current size of the Indian retail industry stands at $511 billion in 2008. It is currently around 12 per cent.

ability to make huge capital investment and ease of setting shop in India is luring foreign players to the industry. the organized sector is expected to grow at 35-40% in the next few years as compared to overall retail growth of 7-8%. enabling retail sales o grow by 50-100% in 2006. Thus. INRERIM REPORT Page 24 . The Indian consumer class consists of a 300 million strong bourgeoning middle-class. increases sales of the entire category as such . thus increasing their stake in the sales of the mall.000 billion at current prices in 2006. They also spend a lot on visual display of promotions.India is standing in the threshold of a retail revolution.6 per cent of the total Indian Retail Value of INR 12. total private consumption reached INR reduces burden on malls to attract/educate consumers towards particular products. Overall economic growth and increasing disposable incomes have boosted double-digit growth in consumer spending. The potential for introducing international brands. the retail sector will experience an influx of international retail models and quality outlets in the coming few years. These costs can be shared by the company. Description of the concept Manufacturers can look at the following alternatives to increase sales volume: 1) Sales promotion and advertising in malls Most supermarkets and hypermarkets promote in-house offers to attract customers. According to the India Retail Report 2007. expected to grow to 600 million by 2010. The share of organized retail stood at 4. a) Retail outlets will be supportive of sales promotion and advertising by companies inside malls for two reasons: .000 billion ($270 billion).

which still accounts for less than 5 percent of the market is expected to grow at a compound annual growth rate (CAGR) of 40 percent to $107 billion by 2013. 2) Use malls to target niche segments Malls and supermarkets typically attract the middle and upper-middle class consumers who have considerable spending power as well as brand awareness. Thus manufacturers can use this channel effectively to launch specific variants of existing products or niche products for which they are able to Concept Paper Indian Institute of Management Ahmadabad attract a premium from such consumers.For the FMCG companies. The presence of a larger product range will increase the attractiveness of shopping at a mall for the consumer. return on advertising in terms of increased sales (or market share) will be more pronounced due to point-of-purchase promotion.India’s GDP is projected to grow by more than 8 percent in fiscal year 2008. making it a win-win situation for both. India’s retail market is at its pinnacle and is drawing huge attention from both global and local retailers. This involvement of the company in the operation of the mall will also help build a strategic relationship between the two. projections for 2009 are a more modest at about 7 percent • Untapped growth potential.Organized retail. India’s overall INRERIM REPORT Page 25 . They can set up small kiosks or shelves to display their own products. b) Manufacturers can share costs of advertising and make sections of the store more attractive in return for slightly lower margins to the retailers. These products should be launched exclusively in the malls and not through Kirana stores. Reasons for India’s high growth rate in the retail sector are: • High growth rates.

In the last four years the consumer spending has grew by astounding 75 percent. These activities include 19. Breaking bulk Providing assortment Holding inventory Providing after sales services Providing information Benefits to Manufactures and wholesalers INRERIM REPORT Page 26 . This can be attributed to the significant rise in the disposable incomes of India’s young population.Consumer spending is on a sharp rise. They perform various business activities that increase the value of the goods and the service they sell to the end users. It has to be noted that more than 33 percent of Indian population is below the age of 15. 22. • Growing Purchasing Power. 23. In this process retailer delivers many benefits to customers. Benefits of Retailing Retailers play a major role in the transfer of goods and services from the manufactures to the end users. Benefits to customers Retailers act as a buying agent for consumers. wholesalers. 21.3 trillion by 2018. 20. and the economy.retail sector is expected to rise to $833 billion by 2013 and to $1. As buying agents a retailer performs various activities to satisfy the end consumers. manufactures. at a CAGR of 10 percent.

Retailing plays a crucial role in the management of world economy and retailers constitute a tenth of the fortune 500 companies. which could be reinvested in production. Thus retailers play major role in smoothing out the variation between the production and sales of the manufactures product. By selling services retailers provide the manufactures great revenue.6 trillion. In INDIA retailing accounts for over 10% GDP and around 8% of the employment only next to the agriculture industry. An Analytical study of the development of Retail marketing in India: a case of big bazaar INRERIM REPORT Page 27 . Benefits to the economy The retailing business is the largest privet industry in the world with turnover of US $6.Manufactures and wholesalers consider retailing as a channel for delivering their product /services to the end consumer.

Opportunities & threats are external factors that are outside the control of the organization.THE PROCESS OF STRATEGIC MANAGEMENT A process in management is defined as a perceptible flow of information through interrelated stages of analysis directed towards the achievement of an aim. SWOT analysis is the most commonly used technique for environmental scanning. The aim of this is to identify the strategic factors that may determine the future of the firm. & optimum utilization of internal & external information. weaknesses. identification of strengths & weaknesses. • • • • Environmental scanning Strategy formulation Strategy implementation Evaluation & control Environmental scanning: It involves monitoring the environment. opportunities & threats faced by a firm. an understanding of trends & conditions. Strengths & weaknesses are within the control of the top management in the long run. ENVIRONMENTAL SCANNING FOR BIG BAZAAR INTERNAL SCANNING The SWOT analysis of Big Bazaar is as follows: INRERIM REPORT Page 28 . There are four basic elements in the process of strategic management. An organization derive several benefits from environmental scanning including the development of a common perception. The key strengths of the firm become the core competencies that the organization can use to gain competitive advantage. SWOT is an acronym for the strengths. & evaluating & disseminating information obtained from the internal & external environments.

shopper’s stop.000 products as the first offering in value retailing segment. We got the opinion that Big Bazaar sustain in the market or not. where it is INRERIM REPORT Page 29 . They launched Big-Bazaar a hypermarket with over 1. Weakness:   Big Bazaar has not yet trapped the whole market. It will also use various tools such as surveys for getting the preferences of big bazaar.  The Big-Bazaar has been positioned to the customer as a place where the customer can shop for each & everything for which if goes to a market. Wal-Mart  Competition from local retailers. EXTERNAL ENVIRONMENTAL SCANNING Before Big Bazaar coming to India their strategy was to scan the environment & find the location where the Mall should be situated. It has a good customer base. 70.Strengths:  The strengths of Big Bazaar are it is leading and growing at the faster pace. Products are cheaper than the market price by as much as 5 to 60%.  Apparels are cheaper by 25 to 60% while the price difference on the other products varies between 5 to 20%. Facing problems due to political environment Opportunities  Huge untapped market Threats  Competition from organized retail players which are in market and emerging like Reliance.   It has many outlets all over India.

situated. this also creates demand. Christians. People from talukas are coming to India as it is a district place for shopping. As people are aware about western culture through various Medias they are very much eager to follow the western culture. Analysis of political and legal factors: In India there is a political triangle this consist of the municipal corporation which belongs to Indira congress. Sindhi and Punjabi. the other is MLA which belongs to Shivsena and BJP and MP which belongs to the national congress. taking education. The congress political people are having contacts with common people and not much concerned with merchants but contradictory to this that the BJP and Shivsena they are having more concern about merchants of the city. Then they will form a focus group for getting more and more of information. The major communities in India city are Hindus. They can also adopt open forum strategy for environmental scanning. There is a majority of middleclass people in India and it is a most populated district consisting 13 talukas. Jain. Muslims. INRERIM REPORT Page 30 . different taxes like land tax and water tax Help in taking over properties and real estate Some concessions from labor laws Socio-cultural factors: Now a days in India also proportion of working women’s is increasing and the literacy rate has also increased this will lead into increase in standard of living of people. For gaining the opinions from the local people they will prepare the questionnaire and get it filled from the people. for working etc. As Municipal Corporation is in the hands of congress party and they are ready to have big bazaar in India that is the reason they are ready to provide some kind of perks to big bazaar they are as follows: • • • Subsidy from octroi. For that purpose we have prepared a questionnaire and collected the data.

From the external analysis we came to know that the people residing the India city are in the favor of Big Bazaar coming to India. Strategy formulation: It refers to the development of long term plans for managing opportunities & threats in the external environment. One more advantage to big bazaar coming to India is availability of cheap labor. • • • Capitalize on available opportunities. A strategist takes into consideration components of strategic management like company mission. Another one is that most of the people who are residing in India they are engaged in various jobs and businesses they is the part of regular income group. Incorporate an in-depth planning model that involves the community. Strategy formulation helps an organization to. Address the challenges faced by the organization. company profile. & for utilizing the strengths & overcoming the weaknesses within the firm. The location preferred by them is Savedi as it is highly developed and accessible area to all the people. So this will lead to higher purchasing power and a huge potential market. long term objectives. grand strategy while formulating the strategy. • STRATEGIC FORMULATION FOR BIG BAZAAR: INRERIM REPORT Page 31 . Provide leadership that understands & masters change. external environment strategic analysis & choice.Economic environment: As this district is having 13 talukas and most of them are having good agricultural base which ultimately leads to higher seasonal income.

Pantaloon. COMPANY PROFILE Big Bazaar comes under the Pantaloon Retail India Limited (PRIL). the initial stages we had format outlets branded Page 32 INRERIM REPORT .Big Bazaar will form some strategies for the long-term goals. They will find out some strategies to overcome the threat and to sustain in the market for a longer period of time. with In small middle-class population in We started the operations a trouser brand. They will also try to utilize their strengths and overcome the weaknesses. PRIL was early to realize the potential of the huge India. First of all it will find out what are the opportunities present in the market so that they can grab it so as to expand their business. They will also keep in mind the threats that they have from their competitors and also form the small grocery shops. trap a particular segment of people. and establish a good client base and to generate good revenues.

they launched Big-Bazaar a hypermarket with over 1. dry fruits. Big-Bazaar is India’s first hypermarket in the discount store items. toys. This is achieved by selling wide range of products & through the “Shop-in-Shop” format. 70. we decided to have our own retail outlets. we launched ‘Big-Bazaar’ as offering in the value retailing segment. ladies accessories.000 products as the first offering in value retailing segment. which are passed on to the consumer. INRERIM REPORT Page 33 . Big Bazaar stocks over 200. It has been positioned as ‘Is se sasta aur acha kahin nahi. BigBazaar provides more than 2. across different cities in India. spread over 30. home appliances and cosmetics. grocery. camera rolls. A big driver of the Big Bazaar is the product variety. As a result. crockery. “Pantaloon’s”. home needs. Products are cheaper than the market price by as much as 5 to 60%. On Oct. food products. electronics & white goods which are sold at a discount to the maximum retail price.Pantaloon Shopee. Price is the principal value proposition at these stores. it ventured into value retailing by launching the hypermarket chain. In 1997. Apparels are cheaper by 25 to 60%while the price difference on the other products varies between 5 to 20%. electronics infant necessities. stationary. apart from retailing lifestyle products. kitchen needs. glassware. bath needs. By removing inefficiencies from the distribution chain we are able to unleash attractive savings. They have introduced the concept of seamless malls in India through the new format Central. 2001. They launched the own retail store. which were franchise operations realizing the problems associated with franchise model.00.000 square feet of land.000 products that include apparel. We have wide network of Pantaloons stores spread across the country. health & beauty products.’ (Nothing cheaper and better anywhere) indicating the value of stores. Big Bazaar is a chain that stocks all home need products under one roof. a typical Big-Bazaar comprises shops that stocks medicines. utensils. 12. bakery products. Hence. optical accessories.

readymade garments. INRERIM REPORT Page 34 . In addition to discounts on products through the year. the shop owner can benefit of the in structure & we enjoy assured income without needing to stock inventory. Understanding of the apparel industrial. We have launched a full range of accessories to supplement the apparel business including imitation jewellery. sunglasses. household appliances. These consolidators were responsible for procuring quality goods at the cheapest possible price. and were paid commissions on their sale at the store. integrated structure provides with more compelling reasons to expand the number of private labels. etc. ‘Trouser Mela’. They have also launched private label initiative in Big-Bazaar. The consolidator directly dealt with stationary. Pantaloons sourced its products through ‘Consolidators. food & beverages. home furnishings. The BigBazaar has been positioned to the customer as a place where the customer can shop for each & everything for which if goes to a market. and as a result the distribution cost could be slashed as no intermediates were involved. to attract customers. Also the shop-in-shop offering is able to increase the customer traffic in to the stores. watches. mobile phones etc… Analysts attribute the success of PRIL to cheaper sourcing of products and lower distribution cost.’ There was a consolidator for each product category. baggage We believe this is a win-win situation as the customer is assured of product availability. The number of Big-Bazaar stores has increased from 4 in 2002 to 21 Oct 24. decades of experience& a vertically. Big Bazaar also held events such as ‘Kitchen Mela’. 2005. clocks. computer accessories.

Managing Director Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief Executive Officer of Future Group. Kishore Biyani. is a commerce graduate and has more than twenty years of experience in the textile business. Gopikishan Biyani. click here. INRERIM REPORT Page 35 . Wholetime Director Gopikishan Biyani. To know more.Management of big bazaar Mr. Mr.

Its values and missions are to be the best in Value Retailing by providing the cheapest prices and hence go the tag-line “Is se sasta aur achcha kahin nahin” It sells variety of merchandise at affordable rates. He is on the Board of Company since June 1. It was started as a hypermarket format in Mumbai with approx.Mr. 1999. Ved Prakash Arya. Shailesh Haribhakti. is an engineer by training and is a graduate of the Indian Institute of Management..000 sqft of space. retail stores operations. 50. BIG BAZAAR FOR THE GREAT INDIAN MIDDLE CLASS It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class. is a commerce graduate and has been actively involved in category management. is a Chartered Accountant. Cost Accountant. Ambuja Cement Eastern Ltd. Prior to joining Pantaloon Retail. IT and exports. Independent Director Shri Shailesh Haribhakti. he was the CEO of Globus. He is the Deputy Managing Partner of Haribhakti & Co. etc. and a Certified Internal Auditor. Mr. Ahmedabad. INRERIM REPORT Page 36 . Director Ved Prakash Arya. The following graph shows the retail life cycle and we can say that Big Bazaar is currently at the Growth Stage. Mr. including Indian Petrochemicals Corporation Ltd. Wholetime Director Rakesh Biyani. Chartered Accountants and past president of Indian merchant Chambers.. He is on the Board of several Public Limited Companies. Rakesh Biyani. the prices of which it claims are lowest in the city but the level of services offered is also very low. He has been instrumental in the implementation of the various new retail formats.

INRERIM REPORT Page 37 . Dust on shelves as well as some product items.Cash flow Flows Maturity Growt h Decline Introductio n Time OBSERVATION: There were various observations made from the time I entered the store. They can be summed up as follows:  o o Verticals inside the store relates to each category of product Food Bazaar M-bazaar Depot.  Furniture Bazaar Footwear Bazaar Trolleys are not easily available.books Electronic Bazaar o  floor. especially on other than ground Little attention to cleanliness.

create new opportunities and new successes. Shelf space is used very well to stock products with clear distinction. achievement.  Family crowd is evident. To strive for a glorious future brings to us our strength. Youth comprises of only around 10% of the crowd.  In-house packaging not efficiently done. Crowded store interiors.  Sign boards are not prominent. rewards and perfection. beauty. It is a bit over-staffed but layout is very good. write rules yet unwritten. POSITIONING STRATEGY Company vision. strength. Items are arranged in a cluttered way. mission and core values “Future” – the word that signifies optimism. unlearn and re-learn our ability to evolve.  Food Bazaar very efficiently managed. Lack of direction creates confusion. our ability to learn. Future encourages us to explore areas yet unexplored. INRERIM REPORT Page 38 . growth. Tried to stock maximum number in limited area.

we will effect socioeconomic development for our customers. we will evolve it. They shall be efficient. Thereby. They will write success stories. Group Vision Future Group shall deliver Everything. Group Mission  They 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. They will be the trendsetters in evolving delivery formats. Everywhere. cost. They will not just post satisfactory results. They will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow. how and when they need. will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. in Future Group. employees. shareholders. Their customers will not just get what they need. associates and partners. but also get them where. do just one thing. And it is this that will help us succeed in the Future. They will not just spot trends.    INRERIM REPORT Page 39 . Rewrite Rules. They will not just operate efficiently in the Indian economy. They shall infuse Indian brands with confidence and renewed ambition.conscious and committed to quality in whatever we do. And in this process. It is this understanding that has helped us succeed. Retain Values. making consumption affordable for all customer segments – for classes and for masses. creating retail realty.They. Every time for Every Indian Consumer in the most profitable manner. They shall keep relearning.

Flow: to respect and understand the universal laws of nature.   Adaptability: to be flexible and adaptable. Simplicity & Positivity: Simplicity and Positivity in our thought. scratch cards. business Action. Various Strategies After big bazaar coming to India it will be at its introduction stage so it is quite obvious that it will adopt some strategy for attracting the customers. coupons. to meet challenges. They shall ensure that our positive attitude. discounts. both in thought and business. after sales services. so as to sustain in the market and to create a good reputation. Introspection: leading to purposeful thinking. Core Values    Indian ness: confidence in ourselves. They would also give stress on providing the prompt services like home delivery. it would offer different kind of schemes. knowledge and information. The strategy which they would adopt is that they will have low price. sincerity.  Valuing and Nurturing Relationships: to build long-term relationships. guarantees and warrantees. Respect & Humility: to respect every individual and be humble in our conduct.  Openness: to be open and receptive to new ideas. Leadership: to be a leader. Following are some additional strategies they require to adopt: INRERIM REPORT Page 40 . high advertisements. offers. humility and united determination shall be the driving force to make us successful.

The paper includes growth of retail sector in India. In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets. festival offers. strength and opportunities of retail stores. This is helpful to change or revival of strategy. etc. It examines the growing awareness and brand consciousness among people across different socio-economic classes in India and how the urban and semi-urban retail markets are witnessing significant growth. While formulating strategies we should keep in mind that strategies should be flexible. which in turn will help the India Retail Industry to grow faster. seasonal discounts. strategies. Summery This paper provides detailed information about the growth of retailing industry in India. Gaming zone and restaurant Promotional activities like advertisement. It explores the role of the Government of India in the industry’s growth and the need for further reforms. retail INRERIM REPORT Page 41 .• • • • • • Thorough market research Site selection and evaluation Employee search and training Less premium and low price branded goods in merchandise assortment.

This paper concludes with the likely impact of the entry of global players into the Indian retailing industry. The Food Retail Industry in India dominates the shopping basket. The future of the India Retail Industry looks promising with the growing of the market. which in turn will help the India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent annually. growing at over 20 per cent per year. The Mobile phone Retail Industry in India is already a US$ 16.7 billion business. Modern retail in India could be worth US$ 175-200 billion by 2016. with the government policies becoming more favorable and the emerging technologies facilitating operations. recent trends.format in India. It also highlights the challenges faced by the industry in near future. INRERIM REPORT Page 42 . In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets. and opportunities and challenges.

CONCLUSION The retail sector has played a phenomenal role throughout the world in increasing productivity of consumer goods and services. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. Also I’ll be collecting data from the customer as what strategies they liked. REFERENCE INRERIM REPORT Page 43 . To study this marketing strategy I will be visiting the mall and also the manager to collect the data from them. For this purpose company is carrying out many marketing strategy. It is also the second largest industry in US in terms of numbers of employees and establishments. There is no denying the fact that most of the developed economies are very much relying on their retail sector as a locomotive of growth. The India Retail Industry is the largest among all the industries. accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment. For launching Big bazaar in India city is company’s mission to expand the business. The India Retail Industry is gradually inching its way towards becoming the next boom industry. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them.

pamphlets Marketing textbook Retail Management textbook     Challenges of India's retail boom. Mar 2007.  Magazines. Retrieved Nov 2007 from  http://www. Newspaper. Jan www.rediff.pantaloon. Retrieved Nov 2007 from INRERIM REPORT Page 44 .htm  Opportunity India Retail.

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