A report submitted to Delhi Business School, New Delhi as a part fulfillment of Full time industry integrated MBA + Post Graduate Program in Entrepreneurship & Business.
Submitted to: Dr. Devendra Pathak Director Academics, Delhi Business School, New Delhi.
Submitted By: Name of Student: Sonam Srivastava Roll No. : 86 Batch:Spring batch(0709) University: Delhi Business School(PTU)
Delhi Business School B-II/58, M.C.I.E., Mathura Road, New Delhi Website : www.dbs.edu.in
for the constant reminders and much needed motivation and for the help and inspirationshe extended. All the faculty of MBA (Delhi business school) was very supportive and helped me in anyway.(MIS faculty). Dr. my project mentor . The staff at BigBazaar turned to be very helpful in providing me the informations about the company and it operations. And to God . assisting in the collection of the topics for the project. who made all things possible.
I would like to acknowledge and extend my heartfelt gratitude to the following persons who have made the completion of this possibleproject: Our Dean.Sweta Seth. for his understanding and assistance. Ms.Devendra Pathak.DR.for his encouragement and support.Ravi Prakash.
DECLARATION BY STUDENT
I hereby declare that the mentioned information in the project is correct up to my knowledge and I bear the responsibility for the correctness of the mentioned particulars.
15 4.. a.1. About us …………………………………18 4.6.1. c. Sample size ……………………………. Group mission ……………….1. Time taken ……………………………..5.. Market analysis ……………………….11 3..20 4. Big bazaar promises …………………21 4.4.2. b. Company profile ………………………15 4.6
TABLE OF CONTENTS
1.. a.10 3. Tools and Techniques of analysis.1..11 3.3..3.12 4.18 4.2. Introduction ………………………………
2.17 4. b.3.. Portfolio management ………………24
.18 4. Cross sectional survey…….. Diagram ………………………………….. Group vision …………………. Introduction to big bazaar.1. Research Methodology ……………………11 3.3.. Source of data …………………………11 3... Objective of Research Study ……………10 2.. Core values ……………………19 4.4. Literature Studies ………………………. Survey method ………………11 3.11 3.3.
3.3.59 5. Inventory control ………… 59 5. Segmentation ………………..3. Operating the scheme ………………54 5.27 b. Survey……………………………………………62 6.59 4. Working …………………………………. Survey analysis…………………………62 6...55 5.10. To get the right positioning Done……………………………. Marketing mix ……………….3.8. 4. To know consumer Behavior……………………….46 4. 4. Positioning ………………….8.58 5. a. Marketing strategy …………………. 2.9.12. 4.59 5. 1. Competitors ………………………….68
. . Distribution of revenue earner ….61 6. Major problems …………………….3. 3.8.7
4.2. 7.54 5.59 5.8.3. Work assigned by the company ……….26 4. Targeting ……………………. Promotion mix ………………36
4. Retail mix ……………………. Discount criterion …………..2.27 4.. 4.8.28 c.55 5.44 4.29 d.. 5..1.3.35 f.31 e. . Product line ……………………………. 4. 6..3.1.8. Future prospects ……………………51 5. 4. Trend analysis………………………….. Work on barcode tender ….7. To maintain stock on floor..8. Update the prices …………. Business objective ……………………54 5.11.
Conclusion ……………………………………. General survey and consumer behavior analysis for pack of two ………………………79 8. 94
.69 7. Annexure …………………………………….93 10. Conjoint analysis………………………..3.8
6. Bibliography ………………………………….92 9..
Since at present 60% of the Indian grocery basket consists of non. India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort. It is expected that by 2010. according to industry estimates is estimated to grow from the US$ 330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015.44 billion turnover in 2007-08 as against US$ 16. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. the industry raked in US$ 25. Continuing the robust growth of the organized retail in India. The Indian retail market.
RETAIL INDUSTRY In the Indian retailing industry.
.branded items.73 per cent. Simultaneously. INTRODUCTION
. a whopping growth rate of 49. food is the most dominating sector and is growing at a rate of 9% annually. modern retail is likely to increase its share in the total retail market to 22 per cent by 2010. India retail industry is expanding itself most aggressively. as a result a great demand for real estate is being created.99 billion in 2006-07. which is the fifth largest retail destination globally. India may have 600 new shopping centers.9
1. according to the Credit Rating and Information Services of India. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city.
India retail industry is the largest industry in India. and Pantaloon Retail (India) Ltd. even exiting the business.
. Biyani's and Big Bazaar's. etc which are offered by the store to facilitate customers. and favorable demographic patterns. there will be 300 Big Bazaars. but this story is about the people who visit our stores. The company ended 2007-08 with Rs5048crore in revenue. reducing the number of outlets. he claims. his flagship. discount. with an employment of around 8% and contributing to over 10% of the country's GDP. Thus here we will know about the company profile. operations and also about the consumer behavior towards the schemes. This is a proud moment for India. march comes at a time when several new retailers are slowing expansion.
"The story is not about us. changing lifestyles. effecting layoffs. By 2011. will have revenue of Rs13000crore." One of the biggest retail here in India we know is Kishore Biyani’s big bazaar. Retail industry in India is expected to rise 25% yearly being driven by strong income growth.
OBJECTIVE OF RESEARCH STUDY
2.1. Marketing also gives some offer to increase the bill size. Offers are designed in such a manner that customers are made to go and experience the shopping. b.11
2. taking in consideration the on going fashion in vogue. Marketing activities and operational activities are always driven with an aim of getting sale increased with innovate ideas. MARKET ANALYSIS
The research objectives of this project are:a.
. Marketing Strategies targeting the customer: Advertising Strategy –Understanding the media consumption habits of the customer.
SAMPLE SIZE A sample size of 90 was considered in this project. SOURCE OF DATA a.2. like religiousness of parents and views on Internet filtering. SURVEY METHOD Data are usually collected through the use of questionnaires. a total number of respondents were 90 for survey. b.3. TIME TAKEN The time of research was 1 month and surveys of some people were done daily.
. A different cross-sectional survey questionnaire might try to determine the relationship between two factors. RESEARCH METHODOLOGY
3. The research was based on the change in consumption of customers for the products in scheme.
3.1. The customers were surveyed to find out their consumption behavior for the products in various schemes. That is. The data is collected by mean of simple survey done in the retail store of the customers.12
3. 3. CROSS-SECTIONAL SURVEYS Cross-sectional surveys are used to gather information on a population at a single point in time.
3. This will let us know following:1. c.
The reason could be known that why a product is not liked and what are shortcomings in the product? The preference for the product of the customer? Who are the frequent customers?
b.4.” Thus. OBSERVATION OF CONSUMER Observation of customers is often a powerful tool. we may ask them to explain reasons why others not buying the product. By the use of this method the facial expressions tell about how a customer feels about the product. TOOLS AND TECHNIQUES OF ANALYSIS a. feelings. and his knowledge about the product in the scheme. PROJECTIVE TECHNIQUES Projective techniques are used when a consumer may feel embarrassed to admit to certain opinions. The cumulative effect of several facial expressions is likely to be felt.
2. PERSONAL INTERVIEW Personal interviews are highly susceptible to inadvertent “signaling” to the respondent. people will tend to respond more openly about “someone else. or why other customers are not willing to take advantage of the scheme. It has been found that in such cases. or what changes they want should be there for their convenience. Looking at how consumers select products may yield insights into
. or preferences.13
5. tells about:1. etc. d. Observing consumers. Demographic information (e. Is he brand loyal? 3. SCANNER DATA Many consumers are members of supermarket “clubs. Is he more or less price sensitive? 4. Whether his taste has shifted? Observation may help us determine how much time consumers spend comparing prices. educational level of adults in the household. and whether the family owns and rents). What is he looking in the product? 2. 2. consumers are often eligible for considerable discounts on selected products. income. ages of children. manufacturing.14
how they make decisions and what they look for. or whether nutritional labels are being consulted. The consumer’s shopping record is usually combined with:1. It is now possible to track what the consumer bought in all stores and to have a historical record. The consumption quantity could be know about the product which is used in good quantity?
. occupations of adults.g.” They are provided with customer card which they have to present this when they make purchases. Nearly all retailers in the area usually cooperate. Is he more interested in packaging..
It helps to know:Advertisers may want to measure a consumer’s level of arousal during various parts of an advertisement? In retail stores paging is done at a interval of time of schemes and discounts so that people are made aware and they can be provoked to buy.
e. PHYSIOLOGICAL MEASURES Physiological measures are occasionally used to examine consumer response.
the company operates over 10 million square feet of retail space. a chain of seamless destination malls.com. convenience and quality and Central. Home Solutions Retail (India) Limited. is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay). Food Bazaar. a supermarket chain. futurebazaar. LITERATURE STUDIES
4. A subsidiary company. Fashion Station.
. Blue Sky. COMPANY PROFILE Pantaloon Retail (India) Limited. has over 1000 stores across 61 cities in India and employs over 30. Brand Factory.1. operates Home Town. The company also operates an online portal. a chain of fashion outlets. Pantaloon Retail is the flagship company of Future Group. The company’s leading formats include Pantaloons. m bazaars and Star and Sitara.000 people. a uniquely Indian hypermarket chain. a business group catering to the entire Indian consumption space. touch and feel of Indian bazaars with aspects of modern retail like choice. Top 10. selling home furniture products and E-Zone focused on catering to the consumer electronics segment. Depot. blends the look.16
4. all. Big Bazaar. Collection i. a large-format home solutions store. Shoe Factory. 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. Some of its other formats include.
retail spaces and logistics. Generali. Central. Future Capital Holdings.com. eZone. insurance. Future Money and online retail format. consumer finance. Depot. Future Generally India Indus League Clothing and Galaxy Entertainment that manages Sports Bar. Staples Inc and UK-based Lee Cooper and India-based Talwalkar’s. Brew Bar and Bowling Co. Food Bazaar. the group’s financial arm. Future Capital Holdings. Pantaloon Retail (India) Limited operates over 10 million square feet of retail space. Pantaloons. has over 1. Some of its leading retail formats include.000 stores and employs over 30.
.000 people. Home Town. asset management.17
Future Group is one of the country’s leading business groups present in retail. Future Group companies includes. futurebazaar. Future Group is present in 61 cities and 65 rural locations in India. The group’s flagship company. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. Blue Foods and Liberty Shoes. retail media. The group’s joint venture partners include Italian insurance major. French retailer ETAM group. Big Bazaar. US-based stationary products retailer. focuses on asset management and consumer credit.
. PANTALOON RETAIL INDIA LTD.
PANTAL OON BIG BAZAAR
making consumption affordable for all customer segments – for classes and for masses. Respect & Humility: to respect every individual and be humble in our conduct. a. Leadership: to be a leader. We shall ensure that our positive attitude.3. GROUP VISION: Future Group shall deliver Everything. 4.conscious and committed to quality in whatever we do. cost. sincerity.
. We shall be efficient. Everywhere. CORE VALUES: Indianness: confidence in ourselves. ABOUT US
4.3. both in thought and business.3. 4. humility and united determination shall be the driving force to make us successful. c. Every time for Every Indian Consumer in the most profitable manner.20
4.3. We shall infuse Indian brands with confidence and renewed ambition. We will be the trendsetters in evolving delivery formats. creating retail realty. GROUP MISSION: We 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. b.
knowledge and information. Valuing and Nurturing Relationships: to build long term relationships. to meet challenges.21
Introspection: leading to purposeful thinking. Adaptability: to be flexible and adaptable. Simplicity & Positivity: Simplicity and positivity in our thought. Openness: to be open and receptive to new ideas.
. business and action. Flow: to respect and understand the universal laws of nature.
4.4. INTRODUCTION TO BIG BAZAAR a. It is a chain of shopping malls in India currently with 31 outlet owned by Kishore Biyani’s Pantaloon Group. b. Big bazaar is not just another hypermarket, but also provides the best products at the best price. c. It Reflect the look and feel of Indian bazaars at their modern outlets. All over India, Big Bazaar attracts a few thousand customers on any regular day. d. Big Bazaar is a chain of department stores in India, currently with 92 stores. It is owned by the Pantaloon Retail India Ltd, Future Group. It has considerable success in many Indian cities and small towns. e. A department store is a retail establishment which specializes in selling a wide range of products without a single predominant merchandise line. Department stores usually sells products including apparel, furniture, appliances, electronics, and additionally select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewelery, toys, and sporting goods. The idea was pioneered by entrepreneur Kishore Biyani, the CEO of Future Group. Currently Big Bazaar stores are located only in India. It is the biggest and the fastest growing chain of department store and aims to have 150 outlets by June 2009 and 350 stores by the end of year 2010.
The Big Bazaar promise
a. MANUFACTURER’S WARRANTIES ON ALL PRODUCTS: Big Bazaar promises to sell only the original products from the authorized dealers; so that all applicable products carry the original manufacturer’s warranty. To service any product purchased at Big Bazaar, customer can visit the authorized service centre of the manufacturer. The invoice accompanying the product is the warranty document. b. GUARANTEED DELIVERY: Big Bazaar guarantees to deliver the exact product that has selected, without defects. In case of receiving a different product, or if the product is damaged in transit, the customer should contact it within the stipulated time period and Big Bazaar will ensure that it is replaced or refunded. c. SECURE PAYMENT: It commits to ensure that no payment misuse happens, so we work with banks and payment gateways to ensure that your information is protected. Payments are protected both by it and by the policies of customer’s bank, and the chances of fraud in these channels are actually very low. Big Bazaar openly publishes its office addresses and is part of India’s largest retail company with a presence all over India – so you know how to contact us in person, if required.
d. OUR SIMPLE 15-DAY RETURN POLICY: If customer has purchased something at Future Bazaar and the product did not meet its expectations or does not fit to his needs, then it can return the product to us; no questions asked, as long as it is in its original packaging and accompanied by its invoice. We will even make the return process simple for you – just contact our customer support and we’ll arrange to pick up the product from your home. Alternately, you can drop it off at the nearest Big Bazaar.
e. PROMPT CUSTOMER SUPPORT: Our customer support is manned by dedicated call centre personnel, who can take decisions and resolve your problems. They are eager to solve your problems and are aware of the processes and means to handle them. In case they cannot solve the problem at their end, they will trigger the required action on your behalf or advise you the best possible method to a successful fulfillment of all your queries/issues. Be assured that when you call us, your call is being taken seriously.
BIG BAZAAR PROMISES-------
GUARANTE -ED DILIVERY
15 DAYS RETURN POLICY
PROMPT CUSTOMER SUPPORT
MANUFAC T-URER’S WARRANT Y
This activity is led through Future Brands India Limited. Dream line. Lombard. PORTFOLIO MANAGEMENT The Future Group has built a strong portfolio of some of the fastest growing consumer brands in India. In the food and home care segment brands include Tasty Treat.
. Buffalo and RIG in the fashion and apparel space.6. and Home Décor categories. Care Mate and Clean Mate. Some of the key brands in this portfolio include.27
4. In consumer durables and electronics space. the group’s brands include Koryo and Sensei. bed & bath linen. Premium Harvest. present in the home segment. Bare. Fresh & Pure. DJ&C. John Miller. offers a wide range of products in kitchenware. a specialized subsidiary company that was set up to create and build powerful brands that address the aspirations of the new Indian consumer.
ADDITIONAL STORE MANAGER
sports goods and much more at surprisingly low prices. However. utensils. making Big Bazaar India’s favorite shopping destination. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. crockery. With the ever increasing array of private labels.000 products under one roof that cater to every need of a family. PRODUCT LINE Here. one finds over 170.7. cutlery.29
4. it has opened the doors into the world of fashion and general merchandise including home furnishings. In recent years. consistent low price for the products is not only the universally desired characteristic.
. one finds a huge variety of products to select from with a good price and quality. Big Bazaar. Big Bazaar has adopted value pricing in which they win loyal customers by charging a fairly low price for a high – quality offering.
Facing flat sales of
. it holds true that “You can’t be all things to all people.
4. Several different kinds of variables can be used for segmentation:1. and family size. SEGMENTATION: Segmentation involves finding out what kinds of consumers with different needs exist. while others are much more concerned about roominess and safety. ethnicity. Implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way. Campbell’s soup. Select which ones we are best off trying to serve. In the auto market. education. East vs. some consumers demand speed and performance. MARKETING STRATEGY
PROCESS FOLLOWED Segmentation. consumers on the average prefer spicier soups—thus. for instance. We a.30
4. Determine which kinds of customers exist. and positioning together comprise a three stage process. targeting. c.” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. In general. location (rural vs. gender. you get a different product in the same cans at the East and West coasts. b.8. a. has found that Western U. for example.8.S. West). urban. Demographic variables essentially refer to personal statistics such as income.
Another basis for segmentation is behavior. while others prefer the “clean” feeling of unscented soap (the “Ivory” segment). b. handier gun more attractive to women. research conducted by the wine industry shows that some 80% of the product is consumed by 20% of the consumers —presumably a rather intoxicated group. while another segment is more interested in breathe freshening. In the next step.e. we decide to target one or more segments. 4. Some consumers are “heavy” users while others are “light” users. Secondly
. for example. Our choice should generally depend on several factors: First How well are existing segments served by other manufacturers? It will be more difficult to appeal to a segment that is already well served than to one whose needs are not currently being served well. 3. like scented soap (a segment likely to be attracted to brands such as Irish Spring). 4. a manufacturer came out with the Lady Remmington.31
guns in the traditional male dominated market. One can also segment on benefits sought. essentially bypassing demographic explanatory variables. Some consumers are “brand loyal”—i.8. For example. Taking this a step farther. while a different segment wants to stand apart from the crowd. a more compact.” 2. Some consumers. it is also possible to segment on lifestyle and values. Some consumers use toothpaste primarily to promote oral health. Some consumers want to be seen as similar to others. TARGETING: 1. they tend to stick with their preferred brands even when a competing one is on sale.
It is part of Big Bazaar’s new Guerrilla Marketing Strategy. Apple Computer has chosen to position itself as a maker of userfriendly computers. Big Bazaar targets higher and upper middle class customers.
. POSITIONING: Positioning involves implementing our targeting. 3.8. and how can we expect it to grow? Thirdly Do we have strengths as a company that will help us appeal particularly to one group of consumers?
2. Guerilla marketing is just one of the strategies and surely one can learn a lot from the ongoing battle. 4. 5. especially people interested in marketing/marketing techniques.32
How large is the segment. 4. Big Bazaar specifically targets working women and home makers who are the primary decision makers.c. The large and growing young working population is a preferred customer segment. For example. Guerrilla force is divided into small groups that selectively attack the target at its weak points.
. for manufacturers. Product is the most important aspect of marketing mix for two main reasons. First. placement and promotion. product includes all features and combination of goods and related services that a company offers to its customers. The following diagram is helpful in determining the main ingredients of the four Ps in a marketing mix. MARKETING MIX Main Aspects of Marketing MiX The easiest way to understand the main aspects of marketing is through its more famous synonym of "4Ps of Marketing".8.34
4. products are the market expression of the company's productive capabilities and determine its ability to link with consumers. d.
PRODUCT: In simpler terms. price. The classification of four Ps of marketing includes marketing strategies of product.
it is imperative to realize that the product of any organization is both a component and a determinant of the marketing mix as it has a great influence on the other elements of the mix: advertising. Price administration is referred to as the activities involved in fitting basic prices to particular sales situations such as
. Secondly. Moreover. reputation and stature are also dependent on them. physical distribution and pricing. a company can not pursue for further elements of marketing mix. the market indicators such as profits. and product decisions dictate the scope and direction of company activity. It is not a valid argument as customers do not respond to price alone. and differences in price for similar products of differing grades and qualities. In a simplistic to the concept of price as the amount of money that customers have to pay to obtain the product. So without proper product policy. image. Setting a price is not something simple. Price determination is referred to as the processes and activities employed to arrive at a price for a product including consideration of relative prices of products within the same line.35
policy and strategy are of prime importance to an enterprise. they respond to value so a lower price does not necessarily mean expanded sales if the product is not fulfilling the expectation of the customers Generally pricing strategy under marketing mix analysis is divided into two parts: price determination and price administration (ibid). Normally it has been taken as a general law that a low price will attract more customers. market share. personal selling. sales. PRICING: Pricing is basically setting a specific price for a product or service offered. channels of distribution.
companies consider six different channel decisions including choosing between direct access to customers or involving middlemen.
PLACEMENT: Placement under marketing mix involves all company activities that make the product available to the targeted customer while planning placement strategy under marketing mix analysis. the types of intermediaries. position of distribution channel members. or special sales situations. functions performed by customers. the length of the distribution channel. choosing single or multiple channels of distributions. PROMOTION: Promotional strategies include all means through which a company communicates the benefits and values of its
geographic locale. the numbers of distributors. and which intermediary to use based on the quality and reputation .
To tackle this criticism. The best way to understand promotion is through the concept of the marketing communication process. media and receivers Limitation of Marketing Mix Analysis (4Ps of Marketing) Despite the fact that marketing mix analysis is used as a synonym for the 4Ps of Marketing.37
products and persuades targeted customers to buy them . it is criticised on the point that it caters seller's view of market analysis not customers view. attempted to match 4 Ps of marketing with 4 Cs of marketing to address consumer views: Product – Customer Solution Price – Customer Cost Placement – Convenience Promotion – Communication
. encompassing senders. Promotion is the company strategy to cater for the marketing communication process that requires interaction between two or more people or groups. messages.
which involves handling the logistics of moving finished goods from the source into stores and overseeing global trade and procurement requirements. analysing data. and market demand patterns change. After a comprehensive evaluation of different options and software companies. the physical facilities point of location. e. managing mark-downs and capturing customer reactions. and collaboration with partners in the supply chain. managing the supply chain. selling goods across a variety of channels to customers. 3. buying plans. Some of the qualities of SAP retail solutions are that it supports product development. RETAIL MIX: Merchandise assortment The company was looking for a solution that would bring all of its businesses and processes together.8. Price 4. and speed– variables that must be weighted differently as business needs. the management at Pantaloon decided to go in for SAP.38
4. 2. which requires marketing and brand management. which involves working with manufacturers to fulfil orders according to strategic merchandising plans and optimise cost. Visual merchandising
. trend analysis. which includes ideation. and using it to optimise the next phase of the design process. quality. Place In the channels of distribution. sourcing and procurement.
Store atmosphere. furnishings store layout. Exterior merchandising TVC on popular entertainment channels like Star Plus.
4. The Times of India. on different days during the period of the offer. f. Newspaper ads in almost all the local dailies like Sakal. supports retailing trends. and Star One. Set Max. Sony.39
Visual merchandising supports:a. sales b. communicates with customers d.
fixture. Visual merchandising includes:1. Display. Product packaging and labels. signage. communicates image e. retail strategies c. Road shows carried out by the Big Bazaar staff with announcements about the offer to make people aware. RETAIL PROMOTION MIX
.8. 2. standees. point of purchase. Interior merchandising Sufficient visual merchandizing within the store that included danglers. which gave details of the offer. distribution of pamphlets.
With the advent of globalization and liberalization its imperativeness in the Indian retail sector has increased as a result of competitions. 3. and availability of product. 2. or an idea. c. a. service. Benefits of Advertisements:
1. It educates customer about new product and their diverse uses. price. It has acquired a lot of significance in the national and international markets. Informative Advertising: Purchases of durable products are generally erratic and
1. 3. To promotea newproduct. Advertisement helps in creating awareness among the customer about the existence. and the rapidly changing consumer lifestyles. Types of advertising: 1. latest technologies. Increases the utility of existing products. 2. Objectives of Advertising: The fundamental objective of advertising is to sell something –a product. ADVERTISING: Advertising is recognized as an indispensable tool of promotion. To warn the public against imitation of the retailer’s product. The Major Objectives of advertising are: 1. To managecompetition in the market.
Below-the-line promotions are becoming increasingly important within the communications mix of many companies. The promotional activities carried out through mass media like television. is above the line promotion. which provide information about the investment opportunities and the risks and benefits. so the retailer spends a huge amount on informative advertising. Financial Advertising: It refers to advertisements by various financial institutions.
2. Classified Advertising: It refers to messages. The terms 'below-the-line' promotion or communications refers to forms of non-media communication. PROMOTION: Promotion can be loosely classified as "above the line" and "below the line" promotion. but also for industrial goods. It increases goodwill towards the retail organization. Big Bazaar has also tied up with ICICI bank. 4. which are placed under specific headings and columns in various magazines and newspapers. newspaper etc. radio. 2. even non-media advertising.
. not only those involved in fmcg products.41
often too expensive to buy. Corporate Advertising builds up retailer image. Corporate Advertising: Its main motive is to build a corporate image. 3.
With the increasing pressure on the marketing team to achieve communication objectives more efficiently in a limited budget. largely aimed at consumers. Below the line sales promotions are short-term incentives. trade discounts given to dealers and customers. there has been a need to find out more effective and cost efficient ways to communicate with the target markets. This has led to a shift from the regular media based advertising. BELOW THE LINE SALES PROMOTION Some of the examples of BTL (below the line) promotions are by exhibitions. reduced price offers on products.43
1. Price promotions
. giving coupons which can be redeemedlater etc. public relations and sales promotions like giving freebies with goods. Methods of below the line sales promotion:a. sponsorship activities.
. -A cut-out coupon as part of an advert. way of offering a discount. b. Coupons Coupons are very versatile. These can be done in two ways:1. A discount to the normal selling price of a product. or moreof the product at the normal price.44
Price promotions are also commonly known as" price discounting". Price promotions however can also have a negative effect by spoiling the brand reputation or just a temporary sales boost (during the discounts). Following are the examples of the use of coupons:-On a pack to encourage repeat purchase -In coupon books sent out in newspapers allowing customers to redeem the coupon at a retailer. -On the back of till receipts.
Use of coupon promotions is often best for new products or perhaps to encourage sales of existing products that are slowing down. It can be used to boost up sales for temporary period and ensure usage amongst first time users. Competitions and prizes This is an important tool to increase brand awareness amongst the target consumer. Money refunds Here. Customers often view these schemes with some suspicion – particularly if the method of obtaining a refund looks unusual or onerous. a customer receives a money refund after submitting a proof of purchase to the manufacturer. c. f. In this the customer gets something extra along with the normal good purchased. Frequent user / loyalty incentives Repeat purchases may be stimulated by frequent user incentives. e. It must be ensured when a company uses coupons that the retailers must hold sufficient stock to avoid customer disappointment.
. Gift with purchase The "gift with purchase" is a very common promotional technique.45
The key objective with a coupon promotion is to maximize the redemption rate – this is the proportion of customers actually using the coupon. d.
Happy Father’sDay E. School Jao Khushi Khushi 2. 75 per kg). This could the zip codes for library users. facilitating the library in determining geographic market are that users reside in. Khushi Ki Barsaat 3. Point-of-sale displays A data collection system that electronically receives and stores bar code information derived from a sales transaction.46
g. 100 per kg). Big Bazaar's `junk' swap offer Big Bazaar is launching a promotional offer from Saturday. plastics/utensils/leather goods (Rs. with the slogan. which is much lesser than the normal media promotions.g. furniture (Rs 75 per kg) and others (Rs 20 per kg). tyres (Rs 50 per kg). newspaper (Rs 25 per kg). "Bring anything old and take something new". "This offer will help the housewife clean out the junk
. advertising clutter and increased impulse purchasing. Pet/beer bottles (Rs 15 per kg). footwear/luggage (Rs. BTL promotions are gaining popularity among all big companies nowadays considering their effectiveness because of the "individual customer promotion" at a price. The prices fixed by Big Bazaar are: clothes (Rs 200 per kg). • Low prices on Wednesday Low prices on Wednesday • Concept of Big Day Concept of Big Day • Promotional offers 1. Most of the big brands are following the suit of BTL promotion because of rising prices of media based promotion.
Envelope Something that envelops. PUBLICITY OF PRODUCT: Publicity non-personal communication in news story form about an organization. INTERNAL ATTRIBUTES: a. A products wrapping affects a lot on its sale. a wrapping. More customers are attracted if envelope is very attractive. b. PERSONAL SELLING: Persuasive communication between a representative of the company and one or more prospective customers.
3. its products or both. Internal layout Methods of display •Visual merchandising
. 4. designed to influence the person's or group's purchase decision.47
it. 6. that is transmitted through a mass medium at no charge. 5. PUBLIC RELATION: Public relations the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its target publics.
8. The operating responsibility of logistics is the geographical repositioning of raw materials. is a coordinated system of organizations. It’s Important to have professional logistical support logistical. services and people from the source of production to the marketplace. Supply chain activities transform raw materials and components into a finished product that is delivered to the end customer. information and resources involved in moving a product or service in physical or virtual manner from supplier to customer. activities.
. LOGISTICS: Logistics is the art and science of managing and controlling the flow of goods . work in process and finished inventories where required at the lowest cost possible. information and other resources like products. people.48
7. SUPPLY CHAIN: Supply chain. energy.
500crore Pantaloon Retail. Big Bazaar is looking at making apparel business its largest revenue generator. Big Bazaar. as much as 40 per cent in two years and 50 per cent of its overall business. Big Bazaar is working to make fashion its largest revenue earner. which is next only to its food retailing business that makes up almost 40 per cent. with sales exceeding Rs 105crore on the last day. g. Currently sales of apparel make up almost 30 per cent of Big Bazaar’s revenues. Big Bazaar plans to rearrange its apparel and fashion merchandise section in stores in terms of design. to position the format as much more than food or general merchandise. layout and elbow space. c.49
4. However. DISTRIBUTION OF REVENUE EARNER a.9. f. in five years. we will focus on apparel as the margin here is as high as 35 per cent compared to food retailing business where margins are probably 12 per cent. This is expected to ensure better product display in stores keeping with consumer buying habits and convenience. the value retailing chain of the Rs 4. Going forward. So a slight increase in apparel sales boosts the overall business. d. Future Group recently clocked over Rs 350crore of sales in five ‘Mahabachat’ days. e.
. a sub-brand. b. is strategieng to focus specially on ‘fashion retailing’ or its apparel business to boost overall revenues. It has created ‘Fashion @ Big Bazaar’.
the largest selling category was apparel. like DJ&C and Knighthood. During this time. from 600crore right now. As many as 1lakh jeans were sold and onelakh sarees as well as some 2 lakh t-shirts. are already big revenue generators. with DJ&C projecting Rs 1.50
h.000crore in the next three years.
. i. Some of Big Bazaar’s private labels.
Food World to name a few. COMPETITORS Big bazaar operates in a competitive environment. Big bazaar faces competition from the likes of RPG (Spencer’s). For each line of business. being just about three to four years old in the country. Trent (Star India Bazaar) and with Shoppers Stop too indicating their entry into the hypermarket segment. Trent and Lifestyle. The hypermarket business is relatively new. In the fashion segment. they face competition from established national and regional companies. they probably face competition from Shoppers Stop.10. In the Food business. Big Bazaar faces competition from Subhiksha.51
Food world.KRAHEJA’S DEPARTMENTSTORE CHAIN:
K Raheja’s Shoppers Stop. operated by Food World Supermarkets Limited.ft by 2010.52
a. It is also Planning IPO. In orbit Mall. while Health &Glow by the RPG Group. and 'Home Stop' formats. Crossword.
. and the beauty and health chain—Health & Glow. will have 450-plus Music World.music stores. 50-plus Spencer's Hyper covering 4 mn sq. It also acquired the Crossword chain of bookstores. It Operates Shoppers Stop.
b. is the second largest retailer in the country and became in retailing operation an Indian success story. RPG GROUP:
Spencer & CompanyLimited is another large retail group in the country withsupermarkets. Will operate 55 hyper city hypermarkets with US$100 million sales across India by 2015.
Investing Rs. LIFESTYLE:
f.75 million sq.53
Subhiksha was immensely popular in the South.90.000 crore-plus ($20 billion) by 2009-10. It expected to earn a total turnover of Rs 1. home and lifestyle centers. particularly in Chennai. where it sold groceries and pharmaceutical products below the MRP. It planned for 550 stores in the next five years.
d.200 crore in 200809 as it planned to expand outside Tamil Nadu and Pondicherry.400 crore-plus ($90 mn) in next five years on Max Hypermarkets & value retail stores.30000 crore ($6.
.67 billion) in setting up multiple retail formats with expected sales of Rs. PIRAMYD RETAIL:
Aiming to occupy 1.ft retail space through 150 stores in next five years.
Trent Limited. Saucer) and hollowware ceramics (Vegetable Dish. Sugar Pot. is looking at adding another Rs 12 crore from domestic sales in
. launched its first exclusive branded store in Pune . which manufactures a wide range of ceramic products like flatware ceramics (Dinner plate. Trent Ltd. Star Bazaar and Landmark retail brands and Tata Infiniti. Creamer.54
g. TATA GROUP:
Tata Group has two retailing companies. Oatmeal.000 crore investment plan for setting up 50 hypermarkets — Star Bazaar — over the next five years.) in plain as well as fluted shapes. Tata Ceramics Limited. headed by Krishna Kumar. has drawn up a Rs 2. which owns Croma brand. Tata Ceramics. Salad Bowl etc. which owns Westside. headed by Noel Tata. which achieved sales of Rs 35crore last year. under the brand name of CERA. Coffee/Tea Cups and Pots. Dessert plate. he retail arm of the Tata Group.
point of sales systems. supply chain management systems. ERP. In west. As there is a need to capture accurate information and make it available not only within the store but send it to warehouse. changing competitive positions. RFID. In such a scenario. OLAP (online analytical processing).radio frequency identification.
. are the tools used by organized retailers in developed nations. varied DSS tools have been adopted by organized retailers. information is crucial to plan and control profitable retail businesses and it can be an important source of competitive advantage so long as it is affordable and readily available. Scanner at the counters. MAJOR PROBLEMS
a. forecasting systems. VMIs.11.enterprise resource performance system etc.55
4. varying consumer behaviors as well as their expectations and liberalized regulatory environment. Retailing is in a rapid state of change due to speedy technological developments. CRM.vendor managed inventory systems. distributors and manufacturers in real time to manage the short shelf life of some goods in grocery sector and costs of inventory. retail businesses have been the early adopters of Information Technology (IT).
b.customer relationship management systems.
retail store sales and merchandise data.g.56
. explore. Currently retailers are data rich but information poor. collected from day to day operations e. demographic projection data etc. synthesize and present data in a meaningful manner for decisions. There is a great potential to develop systems that enable analysts and decision makers to manage. customer loyalty data. analyze. Most retailers collect and have access to huge amount of data.
4.12. FUTURE PROSPECTS
600 crore. but will have far more significance in Tier 2 & 3 cities as well. Since value retailing touches the mass of the population. Further. while the consumer fund will look at providing our retail pipeline and expertise to national and regional brands. One that specializes in Property and the other is a ‘Consumer India Fund’. we want all our store formats to capture the imagination of the target customer. c. Though they have secured 30% of modern retail space coming up in the next three years. Retail chain Big Bazaar (Mumbai) plans to open 15 more stores by November end. d. The future will also see the pantaloon of several new concepts targeted at the Indian consumer. As regards mind share. e. thereby enabling them with a wider coverage. value retailing has the scope to almost double. our endeavour is to keep evolving with the young Indian consumer.500-1. The property fund aims at sourcing high quality property at the lowest possible rates. at an investment of Rs 1. some of them in new markets.58
a. There would be definite customer responsiveness towards Value Added products and services in the next few years. and with organized retailing at about US $ 300 billion at present. b.
. Big bazaars have two AMC’s. The consumption drive would be fueled in smaller towns and cities. retail development will not just occur in Tier 1 cities.
h.They have zeroed in on several new and existing markets for the 15 stores that they plan to open by endNovember.
. g. Delhi and Solapur. Cuttack. The retail chain would be extending its footprint into new markets such as Mysore. Faridabad and Solapur. Agra.59
f. i. It is synonymous with business-to-consumer (B2C) transaction.500-1. Mumbai. Kolkata. The term seems to be almost inevitable addition to e-mail. Chandigarh. • E-tailing: Is the selling of retail goods on the Internet. e-business. The stores would be set up in places such as Mysore. It’s more than just shopping. Chandigarh. Big bazaar will focus onShoppertainment: It will be a convergence of shopping. Big Bazaar is targeting a network of 145 stores by June 2009. adding that in some locations two stores would be opened. Faridabad. Nashik.600 crore. Surat. entertainment and eating. Cuttack. Short for “electronic retailing”. Pune. Shopping and entertainment together called Shoppertainment is targeted at the family. and ecommerce. The investment will be in the range of Rs 1.
000 crore by 2011. k. posting a 33. of which Big Bazaar is expected to contribute a large chunk of around $4 billion.037.42 crore for the quarter ended June 2007.
.44 crore for the quarter ended June 2008 from Rs 1. Future Group plans to have 300 stores and has projected revenues of Rs 13. Total income has increased to Rs 1. “The consumer electronics segment is doing extremely well. elaborating that the group was expecting the segment to generate revenue of Rs 2. News related big bazaar. which is expected to generate revenue of $1 billion in the fiscal 2007-08.000 crore by next year. “Currently they have more than 80 Big Bazaars and we are planning to scale it up to 160 by the year that the company was going to go very aggressive in rolling out the Big Bazaar formats. the total floor area by 2011 would scale up to 30 million square feet from the present figure of 10 million square feet. m.” he said. l. It has emerged as the largest retail format of Future Group's retail division. The Group expects to increase its revenues to $7-8 billion by 2011.60
j. Big Bazaar is a hypermarket format of the Pantaloon Retail (India) Ltd.16 jump.381.
The Group posted a consolidated net profit of Rs 21. Attracting customers by giving them various offers.
n.2 OPERATING THE SCHEME:
.93 crore for the year ended June 2008 as compared to Rs 35. 5. its total income has increased from Rs 3.99 crore for the year ended June 2007.565. p. c. Inculcating in their minds the value for money through these offers.328.54 crore for the year ended June 2007.052. Increasing the average consumption of existing customers. The company said in a statement that it has posted a net profit of Rs 125.48 crore for the year ended June 2007 to Rs 5.1 BUSINESS OBJECTIVE: To increase footfalls and enhance sales by: a. b.77 crore during the last fiscal.866. WORK ASSIGNED BY THE COMPANY
5.97 crore for the year ended June 2008 against Rs 119.67 crore for the year ended June 2008 from Rs 3. However. o. Its total income has increased to Rs 5.50 crore for the year ended June 2008.
a. All Category provided offers well in advance. b. SM. I. e. d.M also did splendid job by putting the required offer signage’s and also decorated the store as per the SS3D theme. c. DM. Snaks were arranged for the staff. ADM-Planned and managed micro analysis of targets and staff was done by taking department wise meeting.T uploaded the offers one day in advance and rechecked them.
. HR managed the shift time of employee. V. ASM.
1. 5. TO KNOW CONSUMER BEHAVIOR TOWARDS SCHEME:
.families. individuals Families. housewives Families. families Housewives. individuals.64
Ready to eat Chef zone Chill station Staples Vegetables
Non food items
On the basis of demographic factors
People at the Spend less peek of their careers
AGE Adolescent (New age teens) Youth Age (35-45)
INCOME Do not earn
PREFERENCES/HABBITS Fond of spending on eating out. product conscious. etc
Brand conscious. they like rate upgrading their households gadgets.
Good income Good spenders.
Spend only on households.
brand included. INFORMATION SEARCH: Before purchasing of a product. This is because choice of one product often means rejection of attractive features of the alternatives.69
BUYING PROCESS a. b.
e. friends. AFTER PURCHASE EVALUATION:
. EVALUATION OF ALTERNATIVES: Before. etc. Externally. d. Internally-retrieving information about similar purchase made earlier. His good part of income is spend on things of his daily requirement.source such as family. PURCHASES: Purchaser many times faces cognitive dissonance which arises due to uncertainty of making right decision. purchasing customer looks for the alternatives of that product. Customer goes for good quality in cheapest rate. c. decision about choice criteria. commercial sources. or advertisement related to the product. customer research internally and externally. NEED RECOGNITION: The customer first points out the things which he need.
because a single error in communication to customer can create confusion to him and he may not buy the product. c. Thus we know that different people have different thinking style. Thus company should try to hit the customer’s memory. it is to be tried that customer receives the right information about every product and about its scheme. Thus discounts. MOTIVATION: Motivation helps a lot to maintain loyal customers. Many times. Therefore. As this memory acts as a internal information source in the decision making process. free coupons. A customer is loyal only when he sees any extra benefits. b. Company should have good impression on the memory of the customer. etc also works as motivational tool. PERCEPTION: Perception is the process by which a customer makes sense of information that he receives. Most of their buying decisions or his behavior depends on his:a. LEARNING: It is the change in the content or organization of long time memory and is a result of information processing. free gifts. reasonable prices. packaging. I.
CONCLUSION: It should be considered that big bazaar targets every class.
Customer by using the product comes to know about the real value of product. good quality of the product. etc such schemes motivate them a lot.e.
Big bazaar also target same concept. The loyal customers are believed to be cost less to serve. It should not be damaged.. TO GET THE RIGHT POSITIONING DONE OF THE PRODUCT UNDER SCHEME: It is the customer’s beliefs about the company’s product being of. or low price. I. say. sociable-loner. high quality.
. in store product should be given open facing. e. Brand may be as ‘for young’ like branded jeans of Levi’s. CUSTOMER LOYALITY AND PROFITABILITY: Relationship between loyalty and profitability should be decided on the basis of loyal customers that are really profitable for company. It is believed that one sure way to earn greater profits is to win loyalty of customers.71
d. Woodland.of. Brand personality is the characterization of brands as perceived by customers.3. PERSONALITY: Personality can be of many types as introvert-extrovert. 5. one row of single and other row of double. and competitive-cooperative. For pack of two the products were given alternate 4 facing.e. Thus it is very necessary that product should be according to the customers need. or durable. etc. they are willing to pay more than other customers and act as a word.2.mouth promoters for the company. etc. Lee.
e if the company is getting profit of rs10 on a product. Then after discount it is sold at rs97. managers seek stock minimization. TO UPDATE THE PRICES: Pack of two was the new scheme. 5. To know the exact amount to be maintained on floor it is very necessary to know:a. The discount was 1/4th on the profit of the retail company. 5. whose mrp is 188.8.131.52 in the store. d. INVENTORY CONTROL: Since inventory represents cost.3. Demand of the product. b. This stock on other hand is sufficient enough to fulfill the demand of that vary product in store. c. The discount was given on the scheme of pack of two. I. 5.3. Product facing b.72
5. The work was to report DM or team leader about the increase in prices and get it updated on rem so that discount could be given accordingly. DISCOUNT CRITERION: a. To always have in stock every conceivable
.3. Profit margin on the product. so its prices to be get changed on rem for those products whose prices have changed by the producing company.3.3.6. TO MAINTAIN STOCK ON THE FLOOR: In retail stores less stock is maintained. d. Capability to maintain stock in warehouse c.
item that a customer might order would normally be prohibitively expensive for companies marketing many items. At the store (Lucknow) I saw this problem many times with many of the products. This is because there is a lead time between ordering and receiving inventory. The more variable the lead time and higher will be the safety or buffer stock that the company will be required to keep to prevent a stock out. One solution is to separate items into those that are in high demand and those that are is slow moving. The stock order placed should be more in the starting of the month as at that time customer’s purchasing power is more. Two related inventory decisions are knowing when and how much to order so that stocks are replenished.
. and there should not be stock out as the company is waiting for the order items to arrive. But I usually saw that order placed was somewhat same throughout the month due to which there was stock out in some of the items in food.
now go to next program of print
. select the items. of quantity done. ok
c. Bar tender is the software by which we use to take out the bar codes. Process:a.74
HOW TO WORK ON BARCODE TENDER: Barcodes are the labels which shows price of product after giving the discount on that product. To select items according to their EAN numbers Include for export exit enter. b. No.
Youngsters: 18 4. Children: 8 5. SURVEY
6. Surveyed :1.1 SURVEY ANALYSIS 1. Women: 30 3. Total people surveyed-90 2. Old aged: 12
Men Women Youngs Childern Old age
. Total people who responded well-72 a. Men: 22 2.
Business: 38 3. Unmarried: 16
b. Marital status:1. of 20 Person 15 10 5 0
Student Bussiness Service Any other
Su et t dn
B sins us es
Srv e e ic
A yohr n te
. Married: 74 2. Student: 20 2. Service: 27
40 35 30 25 No.
Two family house: 25 3. A single family house: 55 2.of Person 15
10 5 0
0-10000 10000-20000 20000-30000 more than 30000
e. 0-10000: 20 2. More than 30000: 18
30 25 20
No. Single: 10
. Is your home: 1. 20000-30000: 28 4. 10000-20000: 24 3.77
d. Income group: 1.
Single family house Two family house single
Indicate activities/interests which you and/or household members enjoy on a regular basis:
1. Bicycling/running: 1 2. Dieting: 25 3. Crafts: 5 4. Foreign travel: 15 5. Gourmet/fine food: 45 6. Fashion clothing: 40 7. Bible/devotional reading: 12 8. Physical fitness/exercise: 69 9. Stereo/records and tapes: 14 10. Art/antiques: 8 11. Outdoor gardening: 35 12. Wildlife/environment issues: 40 13. Health foods/vitamins: 70 14. Money making opportunities: 50
15. Book reading: 24 16. Self improvement: 45 17. Watching sports on TV: 40 18. Charities/volunteer work: 16 19. Other: 12
bicycling fine food tapes/records health foods w atching sports dieting fashion clothing art m oney m aking charities craft devotional reading outdoor gardening book reading others foreign travel physical fitness w ildlife self im provement
. Women. People of single family and apartment family are frequent customers. People have multiple life style and people have interest in music. Men and women both are responsive this shows that they have interest in the products either they buy or not. gifts. discounts. e. Women are more attracted and keen to know about the schemes. and fashion clothing. etc on product. health. fitness. youngsters.81
CONCLUSION FROM SURVEY ANALYSIS a. g. health food. aged people frequently make visit to stores. Women are very careful about what they buy but sometimes men tend to ignore some of the features of product. vitamin rich products. d. f. b. c. children. People of middle class and upper middle class are frequent customers and they spend good amount of their income. dieting. They have good knowledge about the product they buy.
2 TREND ANALYSIS a. Once a week: 20
everyday more than once a w eek once a w eek
6. Once a week: 6
Once a w eek
More than once a w eek
. More than once a week: 21 3. Everyday: 49 2. how often you used this product before the scheme? 1. How often do you use products from this [SERVICE CATEGORY] 1. Every day: 55 2. More than once a week: 29 3.
Very Strongly Agree: 20 2. after the scheme. Disagree: 15
30 25 20 15 agree 10 5 0 very strongly agree strongly agree agree disagree strongly agree very strongly agree
. as the products were mainly daily used products.3 CONJOINT ANALYSIS a. Strongly Agree: 28 3. Earlier the rate of using of product was less in comparision. Stores are conveniently located:1.83
CONCLUSION FROM TREND ANALYSIS Trend analysis shows that consumption rate of the products was good. Agree: 27 4. 6.
Agree: 40 3. Agree: 55 3. 1. Disagree: 11
. Strongly Agree: 29 2. Disagree: 21
strongly agree agree disagree
c. A good selection of products was present.
Store atmosphere appealing:-
b. Strongly Agree: 24 2.
Strongly Agree: 30 2.85
strongly agree agree disagree
d. Disagree: 15
45 40 35 30 25 20 15 10 5 0
No of Person
. (Store) has the lowest prices in the area:1. Agree: 45 3.
e. Merchandise sold is of the highest quality:1. Agree: 69 3. Strongly Agree: 26 2. Agree: 52 3.of person 40
Strongly agree Agree Disagree
. Strongly Agree: 9 2. Disagree: 12
f. Disagree: 12
No. Merchandise displays are attractive:1.
h. Overall. Strongly Agree: 55 2. Disagree: 5
. Agree: 67 3.87
g. Strongly Agree: 14 2. I am very satisfied with the store:1. Advertised merchandise was in stock:1. Agree: 30 3.
Strongly Agree: 34 2.of 30 Person 20 10 0
S n ly are tro g g e are ge d are isg e
i. Agree: 53 3. Disagree: 3
strongly agree agree disagree
60 50 No. I am very satisfied with the price I paid for what I bought:1.
Strongly Agree: 30 2. Very Strongly Disagree: 2
. Disagree: 8
strongly agree agree disagree Slice 4
Select the rating that best describes how you feel about [PACK OF TWO SCHEMES]. k. I am very satisfied with the merchandise I bought:1. Strongly Agree: 12 2.89
j. Quality:1. Disagree: 15 4. Agree: 70 3. Agree: 28 3. Disagree Strongly: 15 5.
. Strongly Agree: 18 2. Not at all interested: 0 2.of Person Agree
Disagree Disagree strongly Very strongly disagree Sro g A re D are D are Vry t n ly g e isg e isg e e are ge sro g sro g t n ly t n ly d are isg e
15 10 5 0
l. Agree: 60 3. How interested would you be in using the product in this scheme:1. Disagree: 12
Strongly agree Agree Disagree
30 25 20
No. Not very interested: 3 3. Price and Discount:1.
Not at all interested: 0 2. Not very interested: 5 3. Overall. somewhat interested: 18 5. Not sure: 10
50 45 40 35 30 25 20 15 10 5 0
Not at all Not very interested Netural Som ew hat interested Extrem ely intrested Not sure
No. Somewhat interested: 25 5.91
4. Neither interested nor uninterested: 22 4. Extremely interested: 45
. Extremely interested: 50 6.of Person
Ntaa o t ll
Ntv ry o e ine se t ret d
Nt ra eu l
S mwa E t mly o e ht xre e ine se t ret d inret d t se
Nts re ou
n. how interested are you in buying this service:1.
décor and quality of product offered to customer in exchange of the reasonable prices. There is good rating in favour of atmosphere.92
Not at all int.
20 1 5 1 0 5 0
CONCLUSION FROM CONJOINT ANALYSIS People are satisfied with the store locations.
45 40 3 5 3 0 25
Not very interested Neither int.nor unint Somewhat interested Extremely intrested
No. People have shown their keen interest towards the products in scheme. They say that for them any discount is good if the product is of their utility. Customers are interested to buy the products again and again of the scheme.
very strongly agree strongly agree agree disagree
b. Biscuits most preferredBritannia:1. Britannia gday butter: 32 2. Britannia gday pista: 16 3. Britannia gday cashew: 20 4.Britannia crm treat bourbon 32
. Strongly Agree: 32 3. Agree: 23 4.93
GENERAL SURVEY AND BEHAVIOR ANALYSIS FOR SCHEME OF PACK OF TWO Do you find the choices according to your preference:-
CONSUMER THE NEW in biscuits
1. Britannia jim jam: 55 5. Very Strongly Agree: 20 2.
Parle glucose (220g): 50
hide&seek(200g) 2nd Qtr bourbon(200g) digestive(176g) krack-jack(240g) glucose(200g)
. Parle hide n seek choco chips (200g): 24 2.94 60 50 40 30 20 10 0 gday butter gday pista gday cashew jim jam bourbon gday butter gday pista gday cashew jim jam bourbon
c. Parle:1. Parle hide n seek choco (100g): 61 3. Parle krack-jack (240g): 21 6. Parle digestive (176g): 34 5. Parle bourbon cream (200g): 45 4.
Maggi noodle masala (380g): 35 2. Maggi noodle masala (570gm): 30 3. Maggi noodle masala (760g): 32 4.Maggi noodle rice chilli chow (332g): 8
maggi noodle msla(380g) 570g 760g veg atta noodle(360g) rice chilli chow
. Maggi noodle vegetable atta (360g): 24 5.95
d. Maggi preffered most:1.
MTR payasam kheer (220g): 60 4. MTR snackmix rava dosa (500g): 19 7. MTR readymeal suji upma: 16 5.96
e. MTR snackmix uttappam (500g): 15
mtr badam drink(220g) mtr gulab jamun mtr payasam kheer mtr suji upma mtr dosa mix mtr rava dosa mtr rava idli mtr uttappam
. MTR dessertmix badam drink (220g): 11 2. Mtr products:1. MTR dessertmix gulab jamun mix (200g):10 3. MTR snackmix rava idli (500g): 6 8. MTR snackmix dosa mix (500g): 12 6.
cashew also provided a great choice in ready to eat section. butter. salty biscuits. and pista. These were like combination of chocolate. krack jack were in good demand in families. Digestive was preferred by health conscious customers mainly. Digestive. Rice shahi pulao was not up to satisfactory demand. Nestle chocolates Kit Kat of 34g. Tata tea gold and premium 2*500gm should continue because their demand was increasing slowly. lite. 99g were in good demand. Bikano Alu Bhujia and Bikaneri bhujia should be continued as affordable prices for all customers. Lemon masala. It is competing Haldiram and many local made. Bourbon.
. Rava idli. Red label tea nature care ct 2*250g.97
CONCLUSION Maggi showed a good response day by day but those like Chili Chow. Gulab jamun. Mtr Badam drink. Dosa mix were less in demand may be due to season. Parle hide n seek (100g). Mtr Payasam kheer showed outstanding demand. Britannia Jim jam and Bourbon were preferred by children. so it will take some time for it to raise a remarkable demand.
Britannia nutri digestive (small pack)-focuses all health conscious and old age which are in good percentage. of very reasonable rate. No offer on Sunfeast products which targets children in their advertisements. Private label products were very reasonable and very affordable and were in good demand but there was good number of damage also from the brand in tasty treat instant noodles masala (400g).98
Some of the products which can be considered for sale set. There is private label honey also. So it can be considered or scheme. Mohan’s corn flakes (liked by all class people and in budget). for its promotion can we have it in any scheme?
SUGGESTIONS MARKETING OBJECTIVE Target is placement of all merchandising units across the market in a months time Create Identity in a Short Span Offering a wide range Reach every nook & corner Distinct Approach ( Innovative & Differentiated products) Constant connection through technology High level of transparancy Pricepressure from webshops Changed orientation and purchase behaviour
Shift your loyalty! From Push tool to Pull platform Producer Retail Consumer EXPERIENCE SOCIAL RETAILING ORGANISED SERVICE INFORMED PRODUCT CONNECTED MATERIAL CONSUMER
service. expanding product assortment.
Modern retail business focuses on maximizing customer footfalls and capturing rising volume and share of the customer wallet. While the competition strategy is largely price focused. Thus. the model works by: improving sourcing efficiencies. differentiating service. and enhancing the store ambience. there are four drivers of modern retail’s “one-stop shopping model”:price. improve business process practices. and ambience
The main objective of these studies is to understand how these firms are:
Providing social tools and platforms around products and services to create better informed and better organised buying behaviour. spur investments in support industries. Giving away design Giving away assortment Give away marketing Augmented Reality ORGANIZED RETAILING
(ii) (iii) (iv)
promote quality employment. product. and enable the modernization of the fragmented traditional retail industry.
and reach out to consumers in the local neighbourhood locations
BENEFITS OF ORGANIZED RETAILING PRODUCT MARGIN Modern retail penetration and consumer adoption in the apparel and clothing category is the highest.
It helps to: (i) (ii)
attain critical mass. (ii) lack of temperature-
. and discount store formats. gents’ wear. clothing margins are higher than 60 per cent typically. An organized retailer gets an average of 30 per cent gross margin or above on MRP across women’s wear. and kids’ wear on branded labels. and capturing customer footfalls. In the food and grocery section across hypermarket. As regards fresh fruit and vegetables. In the case of private labels of store brands.101
penetrating markets. (iv) pricing different products. however the store level penetration is low compared to other categories for various reasons: (i) high wastage. operating the end-to-end value chain. supermarket. economies of scope in sourcing by accruing costs across stores. grocery covers around 45 per cent of store space in FMCG and staple food products. introducing formats and product categories.
MARKET PENETRATION STRATEGY:Large retailers are heading for a pyramidal approach by launching several small-sized neighborhood convenience stores in tandem with a few large hypermarket or department store formats. area in order to penetrate the local neighborhood markets. bulk purchases enable them to squeeze profit margin from suppliers. and (iii) low profit margins in bulk produce (potatoes. mobile phones. and FMCG goods. Nevertheless. tomatoes. However. organized retail firms are strategizing convenience format stores up to 2. the local traditional retailers in the nearby locations feel more intense competition. Across the fruit and vegetable section. As a result. of which the share of apparel merchandize is 30 per cent. The product mix in the hypermarket format is typically 60 per cent food and 40 per cent non-food.
. Fruit and vegetables. ft.000 sq. alcohol-based beverages and pharmaceutical electronics and household durable product categories encompass a much smaller share. This strategy is beneficial to large retail firms because they can absorb supply-chain costs across formats. the net profit gain is between 8 per cent and 10 per cent on an average.102
controlled isles. Further. and seasonal and exotic vegetables around 30 per cent above the cost price. and onions). grocery products in staples. fruit and seasonal vegetables are higher profit-margin produce: fruit sell at 40 per cent margin on the cost price. The format incorporates a larger share of apparel. the customer adoption rate is also low in fresh fruit and vegetables because of its daily need-based requirement and the distance factor. In addition.
the organized retail value chain would prefer to lean towards the direct procurement approach in order to reduce the cost of the middleman. By having commission-based direct contract terms with branded suppliers. Gradually. a mix of large and small suppliers supply directly for private labels. As regards apparel. In the case of FMCG and staple products. artificial jewelry and watches. Currently.103
Another dominant format used by modern retailers includes the department and speciality stores focusing primarily in clothing. the modern retailers work on a commissionbased margin with branded suppliers as opposed to the slotting-fee position where a manufacturer or supplier gets shelf space by paying a certain fee structure. and household durables. cosmetics. The direct procurement model benefits modern retailers for the following reasons: (i) maximizing its gains on large volume transactions. and (iii) minimizing the operational cost. retailers are able to arrange various promotional schemes in order to attract customer footfalls to their stores and secure discounted price on bulk purchase. This business tactic is particularly disadvantageous to the traditional retailers because their volume demand is very small and is primarily on credit payments. The discount and convenience formats largely concentrate on fruit and vegetables and grocery products. EMPLOYMENT GENERATION:
. the firms procure primarily from large suppliers for branded products and small suppliers for store brand private labels. (ii) implementing store brand promotional schemes.
the employment generated by organized retail is building a quality labour class that is gaining vocational training in skilled and unskilled jobs at the graduate and tenth class level Foreseeing the demand for trained staff.104
Subhiksha Value Low-price high-volume strategy: by keeping no fancy frills front-end and by becoming an intermediary at the back end. Trent Limited Lifestyle & Value Single.brand strategy: leverages on high margins in private labels. Subhiksha leverages on discounted prices on bulk purchases and cash payments. but most importantly.
. ITC Choupal Sagar & Choupal Fresh Value Backward integration through IT-based business model: leverages by building direct relationship with the supply source. and targets consumers in socio-economic class B and C. to sell as well as purchase products and services. the farmers. leading organized retailers are creating their captive human resources pool through internal training and programmes and tie-ups with retail management schools.
Spencer’s Retail Value The “duck and the duckling” model: by having two. NDDB: Mother Dairy Value Operates on a co-operative model with the objective of increasing farmers’ welfare. backed by a cluster of small-sized Fresh.or threevalue segment stores. to leverage on economies of scale at backend value chain. Daily. Strategically located in residential areas and follows a lowprice strategy for fruit and vegetables. Has a strong presence in Delhi’s NCR region.
. and Express stores.
I hope to have shown my reader that the answer of their questions on the working of the company and its maketing stategies which made it a retail giant and capture the big part of the market. This project helped me to clear my else doubts and step over the boundaries of confusion and querries with reference to retail store and helped to be more focused and helped me a lot to understand the concepts in my studies. Above all.
. that all the hard work done by my faculty and me has been fruitfull.106
If this project proves to be of any usefulness to the reader then I will be very proud of it. i came to know how a consumer reacts to every action made by retail to pursue them with their promotional and marketing strategies. how ever it is difficult to know about a company but training provided to me helped me a lot to know the retail store and consumers behavior to a great extent.
yorku.”112 to 115”. “245 to 264”. New Delhi.Ltd .com/Big-Bazaar-plans-to-open-15-st.ppt+how+to+write+ introduction&hl www. “218 to 229”.. Pataparganj. “232 to 233”. “74 to 80”. “11 to 14”.financialexpress. “164 to 170”. “103 to 104”.a sp www. Ltd. “70 to 75”.fibre2fashion.thehindubusinessline. “126 to 128”. “200 to 203”.2008. INTERNET: www. Dorling Kindersley(India)Pvt. Naraina. Excel Books Pvt.KELLER KELVIN Marketing Management. “82 to 98”.”29 to 31”. 2007. Delhi.com/iw/2005/12/25/stories/
.com/news/Future-Group-to-hive-offBig-Bazaar/ www.livemint. “205 to 208”.ca/rkenedy/critical_skills/student/nick_ashby_pp t_prestns/how_to_write_an_introduction.107
9. www. BIBLOGRAPHY
BOOKS: KOTLER PHILLIP.”231 to 236”. KUMAR ARUN AND MEENAKSHI N Marketing Management.com/face2face/pantaloon/kishorebiyani.
Annexure SURVEY QUESTIONNAIRES 1. þÿ yes no
3. þÿ business c. þÿ students b. þÿ married unmarried
10. þÿ women þÿ children þÿ youngsters þÿ men þÿ old age
http://www. þÿ b. Marital status:a. Tick the option you fall in:a. d. b. Occupation:a. c. þÿ b.domainb. Does the big bazaar match consumer expectation or are they just making empty promises? a. þÿ service
d. þÿ c. þÿ c. þÿ b. d.000 15. You use the products in offer:a. þÿ every day more than once in a week once a week
8. b. þÿ strongly agree agree disagree
9. What about store environment? a. þÿ very good good
. c. Is the store conveniently located? a.000 more than 20. Your family is:a.000-15.000 10. Income group:a. þÿ
6. þÿ b. þÿ b.000-20. þÿ þÿ þÿ þÿ 0-10. þÿ þÿ þÿ þÿ single family joint family bachelor others
þÿ strongly agree agree disagree
þÿ þÿ þÿ þÿ þÿ
reference group newspapers sales promotions pamphlets distributed paging in store
14. How do you come to know about the schemes? a. b. þÿ b. þÿ b. þÿ c. þÿ very good good average
12. Do you find variety in products? a. Are you satisfied with the products in store? a. What do you think about quality of the products? a. c.110
c. Do you like the way products are displayed? a. þÿ b. þÿ yes
. þÿ c. þÿ
10. e. þÿ c. d. þÿ very attractive attractive average
þÿ þÿ þÿ þÿ þÿ þÿ
Parle hide n seek choco chips(200g) Parle hide n seek choco (100g) Parle bourbon cream(200g) Parle digestive (176g) Parle krack-jack (240g) Parle glucose (1kg)
. Are you happy with the schemes and discounts? a. þÿ þÿ þÿ þÿ þÿ Britannia g-day butter Britannia g-day cashew Britannia g-day pista Britannia jim. Which of the following product you like to take? a. þÿ b. c. b. þÿ c. þÿ c. d. e. þÿ þÿ þÿ þÿ þÿ not at all interested not very interested neutral somewhat interested not sure
17. þÿ strongly agree agree disagree
16. 3.jam Britannia cream treat bourbon
b. d. 4. How much interested are you in using products? a. þÿ
no no comments
15. 5. e. 2. 6. PARLE PRODUCTS:1.
þÿ Amul butr(500g) Butr lite(500g)
þÿ þÿ þÿ þÿ þÿ þÿ
Mix butr (99g) Mix butr lover(99g) Mix Butr pepper(60g) Mix chilli surprise(70g) Mix classic salted(70g) Mix golden sizzle(70g)
22. 6. 5.
þÿ þÿ þÿ þÿ
Maggi noodle masala(380g) Maggi noodle masala(570gm) Maggi noodle masala(760g) Maggi noodle vegetable atta(360g) Maggi noodle rice chilli chow(332g)
20. þÿ 2. MAGGI NOODLES:1.112
19. MTR products 1. 3. 8. 4. 5. 5. 2. 3. 7. AMUL PRODUCTS:1. 4. ACT II 1. 2. 6. þÿ þÿ þÿ þÿ þÿ þÿ þÿ þÿ MTR dessertmix badam drink(220g) MTR dessertmix gulab jamun mix(200g) MTR payasam kheer(220g) MTR readymeal suji upma MTR snackmix dosa mix(500g) MTR snackmix rava dosa (500g) MTR snackmix rava idli(500g) MTR snackmix uttappam(500g)
21. 3. 4.
4.BAMBINO 1. 7. NESTLE PRODUCTS:1. 5. 2. 8.
þÿ þÿ þÿ þÿ þÿ þÿ þÿ
Coffee classic box (200g) Coffee classic jar (50g) Coffee classic pp (50g) Coffee jar (100g) Kit Kat (99g) Kit Kat (34g) Chocolate munch (102g)
þÿ þÿ þÿ þÿ þÿ
Cheese chiplet(200g) Cheese lite(500g) Cheese slice(200g) Cheese tn(400g) Lite spread tub(200g)
23. þÿ þÿ þÿ þÿ þÿ þÿ þÿ þÿ Macroni (900g) Macroni elbow (450g) Pasta penne (500g) Pasta spiral (500g) Vermicelli macr elstx (950g) Vermicelli roasted (950g) Vermicelli sc (1kg) Vermicelli sc ( 450g)
24. 6. 2. 7. 4. 3. 6. 3. 7. 4. 5. 5. 6.