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Introduction to Retail
The Indian retail industry is divided into organized and unorganized sectors. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate backed hypermarkets, supermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. The Indian retail sector is highly fragmented with 97 per cent of its business being run by the unorganized retailers like the traditional family run stores and corner stores. Traditional markets are making way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and second-rung cities alike, introducing the Indian consumer to an unparalleled shopping experience. Large Indian players like Reliance, Ambanis, Rahejas, Bharti AirTel, ITC and many others are making significant investments in this sector leading to emergence of big retailers who can bargain with suppliers to reap economies of scale. Hence, discounting is becoming an accepted practice. Proper infrastructure is essential in retailing, which would help to modernize India and facilitate rapid economic growth. This would help in efficient delivery of goods and value-added services to the consumer making a higher contribution to the GDP.

Malls: The largest form of organized retailing today. Ranges from 60,000 sq ft to 7, 00,000 sq.ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment; all under a common roof. Examples include Shoppers Stop, Inorbit, and Infinity. Specialty Stores: Chains that specialize in a single category of products such as Kids Kemp focusing on kids’ category of products, Crossword focusing on books, RPG's and Planet M specializing in music retailing, are focusing on specific market segments and have established themselves strongly in their sectors. Discount Stores: Discount stores or factory outlets, offer discounts on the MRP (Maximum Retail Price) through selling in bulk and having economies of scale or


Food Bazaar Organizational Structure Mr.000 sq. catering to a variety of consumer needs. home.ft. offer several brands across a single product category. the Indian consumer likes to "See.500 sq.2 million customers every day across outlets in India. products at varying Range and Prices.ft to 2. having a strong focus on food & grocery and personal sales. Supermarkets: Supermarkets are large self service outlets. Food Bazaar currently caters to over 1. Prices are slightly higher due to the convenience premium. also known as Category Killers. Shailesh Haribhati .(Joint Managing Director And Ceo Of Future Group) Mr.feet located near residential areas. Touch and Feel" the products like wheat. etc. The core concept of Food Bazaar is to create a mix of an Indian Bazaar and an International supermarket atmosphere with an objective of giving the customer all the advantages such as Quality products.(Director) Nsg & Co. – (Statutory Auditors) ‘Food Bazaar’ is a new concept of Future Group.[Type the document title] [Year] excess stock left over at the end of the season. catering to varied shopper needs and are termed as Supermarkets. Anil Harish . toys.000 sq. fruits and vegetables before making her final buying decision. It is also classified into localized departments such as clothing. pulses. These are mainly located near residential areas.ft and large supermarkets ranging from of 3. Super Markets can also be classified in to mini supermarkets typically 1. Since. Food Bazaar was flagged off in April’02 which is a chain of supermarket. Food Bazar 2 . They stock a limited range of high turnover convenience products and are usually open for extended periods during the day. rice. groceries.(Managing Director) Mr. Convenience Stores or Kirana Shops: These are relatively small stores 400-2.000 sq. Kishore Biyani . ft.ft to 5. Department Stores: These are large stores ranging from approximately 20000-50000 sq. MBO’s: Multi Brand outlets.000 sq. Rakesh Biyani .(Chairman) Mr. seven days a week. These usually do well in busy market places and Metros. The product categories range from a variety of perishable and non-perishable goods.

Feel" are offered by displaying staples out in the open. This big step Food Bazaar can only take because it was having high confident on it in house or private label products which were attracting customers as they were available at reasonable price. cleanliness and hygiene are offered through pre packed commodities and the Indian values of "See-Touch. The western values such as convenience. foods & vegetables are offered. Leading the charge is the country's largest retailer Future Group. touch and feel the products. all at very economical and affordable prices without any compromise on quality. Food Bazaar launched in 2002 to meet the aspiration of middle class. This can be seen from the fact that Future group's own brands grew 52% in 2010 while private brands in modern trade grew 19%. whose private brands have been outselling some of the country's best-known brands in select categories across 200-plus Big Bazaar and Food Bazaar outlets. the consumer is deprived of this factor – where only pre packed staples. This is largely because the retailer's branding efforts are limited to in-store display and promotions unlike that of FMCG brands. Food Bazaar offers the Indian consumer the best blend of Western and Indian values.[Type the document title] [Year] allows the comfort of being able to see. Food Bazar have positioned themselves as Ab Ghar Chalaana Kitna Aasaan! Yes! In Mumbai food bazar has outlets at the following locations:          Mumbai Central Lower Parel Vile Parle Mulund Goregaon Vashi Andheri Thane Kharghar… And Many More PRIVATE LABELS AT FOOD BAZAAR. In 2008. Private labels products at Food Bazaar outlets:Private labels or in-house brands are products manufactured by third parties for retail chains and are priced nearly 15% lower than their branded counterparts. At other super markets. Food Bazaar boycotted cereal maker Kellogg’s brand across its outlets all over India because the marketer were demanding higher business margins. 3 .

At Vashi in Mumbai. The grocery chain of India's largest retailer Future Group. Food Bazaar has a complete range of south Indian food. it does a catchment analysis of an area with a 34 kilo meter radius around any potential store location. Whenever Food Bazaar 4 . 8. The chain does regular data analysis that helps it to create customized offers for the communities surrounding its stores and these particular activities have helped increase sales by 25-35 % for the categories being promoted.[Type the document title] [Year] Private Labels in Food Bazaar 1. 4. 3. Due to which sales numbers are showing some impact.Mumbai's Matunga area has a high population of South Indians and hence retailers would step up micro-marketing efforts in the vicinity during festivals like Onam. Tasty treat Clean mate Fresh and pure Sach Ektaa Golden harvest Chuckless Prarthana Products- Current trends in Food Bazaar:Food is culture and food habits habit change as slowly as culture itself. Which helps Food Bazaar in planning its merchandise according to the community living in the vicinity for more footfalls and optimum inventory planning? For example: . to cater to the second largest community in that catchment area after Maharashtrians. Consumers migrating to other cities want their native community food. 2. 5. 6. 7.

Offering Fusion service of Western plus Indianness. Factors for the success of Food Bazaar:1. it try and step up retail presence of products in the vicinity of that location. gives the staff an identity that is easy for a customer to approach. Olay. Logistics network that carries an average of 2 million pieces everyday with peak single day transactions reaching 4 million pieces. Extended P’s of Marketing at Food Bazaar People:  Sales executives at food bazaar are well trained. cleanliness and hygiene are offered through pre packed commodities and the Indian values of "See-Touch-Feel" are offered through the ‘bazaar-like´ atmosphere created by displaying staples out in the open. highly motivated and have the right attitude towards the customers who help consumers in purchasing the products. Dove. Partnering with India’s leading FMCG brands like Nivea. this is well understood by food bazaar and hence the staff always tries to help the customer in whatever manner they can and provides pull after sales assistance to ensure customer satisfaction. The level of after sales support and advice provided by the sales people adds value to the strong customer relationship and it will give a competitive advantage over the competitors. they have been given a special training on the types of customer and ways to handle the customers of various behaviors. The staff understands the importance of customer satisfaction. Cleanmate. all at very economical and affordable prices without any compromise on quality. 3.[Type the document title] [Year] see large catchments of a specific community. Embarked on a process of collaboration with major FMCG companies 2.the western values of convenience. 5. Sach. which appeals to that specific community. Private Label brands like Tasty treat. Lakme and Pond’s among others to celebrate ‘Beauty Carnival’ across 5 Metros. 4. Well-dressed staff improves the overall appearance of the store.    5 .

which in turn increases the loyalty and the patronizing of the customers towards food bazaar. They have trolleys to carry the products. options available in payment for the customers. prices and offers are very well communicated to the customers. touched or feel.      6 . Food Bazaar keeps a close eye on the process right from the purchase to the delivery of goods. always keeping the customers informed through mails. Proper information in terms of the price tags on the products and the display to communicate the discounts or special offers on certain products. Technology is very well used for the billing and the inventory management at the store which ensure that low waiting time at the bill desk for the customer and also availability of the products on shelf at the time when customers need them. The information about different brands. The store layout and assortment of goods (merchandising) in Food Bazaar helps the customers to locate the products which they want in a quicker way which saves time.[Type the document title] [Year] Process:  Process in Food Bazaar plays an important role in customer satisfaction by soling issues like long waiting time for the billing process. messages.   Physical Evidence:  Physical evidence in service industry is a process of tangibalizing the intangibles because this is the intangible part of the services which cannot be seen. There are proper signs on the floor for clear directions to different categories or a section in the outlet makes the purchase experience of the customers more convenient. multiple billing counters and also home delivery for purchase over Rs 1000/-. The ambience in Food Bazaar itself is enough to prove the physical evidence. etc.

The variety of products and brands is excellent in food bazaar. The promotional offers and schemes help to attract more customers during the weekdays. Food bazaar provides value added services to the customers like free home delivery.Good Shopping Experience . People usually visit to the store once a week and the traffic goes up nearly by 400% in the weekends. helping customers in their purchases. Cleanliness and hygiene are on a spot of bother for food bazaar. etc.Good Air Conditioning .  7 .High Environment – Noisy & Unpleasant Parking .Good Quality . Most of the customers who visit to store are middle class people having annual income between Rs. informing customers about the offers on time.[Type the document title] [Year] Customer Feedbacks Experienced during Visit to Food Bazaar         Store Management .Satisfactory Discounts . The main grey area for customer satisfaction is the billing section and parking space.5-3 lacs. 1. Most of the people who visit the stores are largely in the age group of between 25-45 years. Most of the customer pull is driven by promotional offers & schemes and product variety which are the main reasons for the large number of people visiting Food Bazaar.Average Cleanliness – Satisfactory Consumer satisfaction & buying behavior at Food Bazaar: Our visit to food bazaar outlet helped the group to understand the following key aspects about the level of the customer satisfaction & buying behavior pattern in Food Bazaar:          The store has a very successful rate of attracting customers. which is mostly a challenge on the weekends and holidays.

health foods. Edible oils. It was modeled on the Indian mandi.[Type the document title] [Year]  The store ambience. Merchandise Offered Food grains. Corner Racks. Gondola End Racks. Snacks. where customers could touch feel and chose products supplemented by packaged foods for western shoppers. Wet Staples includes fruits and vegetables. The products sold are categorized as: 1. Food Bazaar Tea and premium Harvest Pulses.000 square feet of retail space. Shopping Trolleys And Baskets. Retail Gondolas. Wet Staples (Chill station) The processed Food and Non Food category contributes 60% of Food bazaar sales. Washing items. Dry Staples includes dry groceries like rice. Oral Care. The company has launched Food Bazaar Masalas. Wall Unit Racks. Frozen goods(Veg. 2. Store Merchandising / Design / Layout Food bazaar stocked on an average 10. Vegetable & Fruits. This category includes a mix of products for a large number of FMCG companies and a wide range of imported products. From here depending on the need of the product in the Food Bazaar Retail 8 . Local flavors and varieties are made available through the shop model. Check Out Counter. by arrangements with leading vendors in each city. Body Care. Glass Shelves and Accessories. Wire Baskets. and specialty foods. one of which is located in Bhiwandi. Health Drinks. dal. Store Layout and Design Grid Type Layout Shelving Pattern: Use of Wall Racks. Fruits & Vegetable Racks. near Mumbai. spices etc.). Store Operations: Food Bazaar Food Bazaar works on a Central Procurement System. Wire Products. this category contributes 30% of the sales. There are in all 3 Central Warehouse located in various parts of India. well trained sales staff. Processed Food & Non Food (Hungry Kya). snacks and biscuits. wheat.000 stock keeping units (SKUs) and occupied on an average 5. This contributes 10% of the sales. product variety and offers are some key features of Food Bazaar which gives them a shade superior edge over the competitors. Other Utilities such as imported chocolates. Biscuits & Chocolates. olives. Spices. Dry Staples (Golden Harvest) 3.

The company uses the model to procure potatoes from farmers in Uttar Pradesh where the quantity and quality of the produce is predetermined. In Maharashtra. The company decides the price after the harvest to give maximum benefit to the farmer. Packed food and other products are mostly purchased directly from the manufacturer. 9 . Cross Docking is the way that Future Supply Chain (Future Group’s Supply Chain subsidiary) adopts to distribute directly to the Retail points. Inventory Management Food Bazaar. the supermarket variant of Pantaloon Retail (India) Ltd. the company has started procuring Alphonso mangoes from farmers. has adopted the 'negotiated and predetermined' model to source vegetables and fruit from farmers across states.[Type the document title] [Year] Store. the Store Manager will place a request of the product to the Regional Warehouse. Procurement Policy & Procedure. For highly perishable items like green vegetables and fruits. It has tied up with the Maharashtra State Agricultural Marketing Board (MSAMB) to buy directly from the farmers. the required good is dispatched from Central Warehouse to the Regional Warehouse and then to the Food Bazaar Retail Store. Retail Points 1 Regional Warehouse 1 Central Warehouse (Big Bazaar & Food Bazaar) Regional Warehouse 2 Regional Warehouse 3 Retail Points 2 Retail Points 3 So. This process is ideal for those products which are not very easily perishable like grains and processed food items. The farmer and the retailer fix the price jointly.

replenishment of stock and billing are used.[Type the document title] [Year] Number and Type of Employees in a Store     Store manager 2-Cashier 2-Supervisor 12-Floor Staff (for 1800 to 2000 sq. troi (local tax) and on different taxes A stable government at the center will facilitate speedy economic recovery and create an encouraging investment climate. ft store Area) Penetration of Information Technology All the latest tools and software for inventory. stock taking. water etc. Economic: • • • • • India one of the fastest growing economies Retail industry to grow increasing income of people Increase in percentage of service contribution to GDP Stable even during recession Growth stage: High revenue but high expenditure on promotion Social Cultural: • • • • • Increase in nuclear families People prefer to shop in local store with reasonable price Increase in working women proposition Life style changes Shift in product and service preferences 10 . PEST ALANYSIS Political: • • • Properties of taking over properties and real estate Problems of getting subsidy from Oc like land.

Dove.  Private label brands like tasty treat. Pond’s.[Type the document title] [Year] • Increase in young population Technological: • • Technological development for faster service Better application of IT in the modern retail industry. cleanmate  logistic network that carries an average of 2 million pieces everyday with peak single-day transactions reaching 4 million pieces Competitive Advantage  Pricing  Overall shopping experience  Give Special offers  Private label regional products  Collaboration with major FMCG  Planned logistic network 11 . among others. like in supply chain management . • • Issues Faced by Food Bazaar Unable to meet store opening target Falling Revenue per Square Feet Competition from Other Players Differentiation by Food Bazaar  Embarked on a process of collaboration with major FMCG companies  Partnering with India’s leading FMCG brands like Nivea. store management and CRM Electronic billing Use ERP module for handling inventory and finance. sach. to celebrate ‘Beauty Carnival’ across 5 metros. Lakme. Olay.

efficient.7 Coupon discounts Gift with purchase Competitions and prizes Money back offers Exchange offers Special occasions. Unmatched shopping experienceThe entire shopping experience is a very pleasant experience for the customer ± with air conditioning. Only simple smiling sales people ever ready to help the customer when asked 12 . Food Bazaar prides itself on the savings it helps customers make while shopping there. Big FM 92. Advantages at Food Bazaar Down to earth and low pricesThe prices of all items are very competitive and affordable. Excellent serviceService is quiet. and helpful in a pleasing way.[Type the document title] [Year] Promotion Methods adopted By Food Bazaar BTL:       ATL:  Advertisement in newspapers  TV ads  Internet (own website which gives online shopping services)  Partnership with Big fix. soothing music. No pushy salespeople. lighting all contributing to the excellent service levels. Competitive Schemes and OffersGreat value for money offers on various products from time to time help keep the customer happy and his/her budget in check.

com/weeklyspecial/ http://fciweb. in other metros.a recently launched oral care brand.‡  Looking to expand its Fresh Foods and value-added pre-cut or ready to use vegetables.  Launching more Gourmet Food Bazaars after the one launched in Delhi.[Type the document title] [Year] Excellent QualityOffers the best of Indian and a few foreign labels too.‡  It is looking to add over 20 more products to its line of private products.in/ 13 . especially exotic varieties will be introduced in Tier-I cities shortly.ac. References: http://shodhganga.‡  More Fruits.pdf http://www.nic.fresh. clean and crisp .‡  The retailer is looking to multifold expand the number of outlets it already has. vegetables .both regular as well as exotic Future Plans of Food Bazaar  Looking at achieving a turnover of Rs 800 crores by 2013.in/bitstream/10603/3794/13/13_chapter%205.inflibnet. co-created with Sachin Tendulkar.myfoodbazaar.  Popularizing Sach .

[Type the document title] [Year] 14 .

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