PROJECT REPORT AT PANTALOON RETAIL (INDIA) LIMITED, BANGALORE

A Project report Submitted in partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED)

TO

MADURAI KAMARAJ UNIVERSITY, MADURAI

By
VIJAY KUMAR SAHU Reg. no. A8751295 Under the Guidance of Prof. B. K. BHARADWAJ

RAMAIAH INSTITUTE OF MANAGEMENT STUDIES, BANGALORE

DECEMBER 2009
CERTIFICATE CERTIFICATE
This is to certify that the Project Report at

PANTALOON RETAIL (INDIA) LIMITED, BANGALORE

Submitted in Partial Fulfillment of the requirements for the Degree of

MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED)
TO

MADURAI KAMRAJ UNIVERSITY, MADURAI

Is a record of bona-fide Training carried out by

VIJAY KUMAR SAHU
Under my supervision and Guidance and that no part of this report has been submitted for the award of any other Degree/ Diploma/ Fellowship or other Similar titles or prizes.

FACULTY GUIDE
Signature: Name:

Qualification:

Signature & seal of the learning centre

STUDENT'S DECLARATION
I HERE BY DECLARE THAT THE PROJECT REPORT CONDUCTED AT PANTALOON RETAIL (INDIA) LIMITED, BANGALORE

Under the guidance of Prof. B. K. BHARADWAJ

Submitted in Partial Fulfillment of the requirements for the Degree of

MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED) TO MADURAI KAMRAJ UNIVERSITY, MADURAI

Is my original work and the same has not been submitted for the award of any other Degree/ Diploma/ Fellowship or other Similar titles or prizes. Place: Bangalore Date: VIJAY KUMAR SAHU Reg. No.:

ACKNOWLEDGEMENT

I would like to expresss my gratitude to Mr. SUNIL THOMAS, Store Manager, and Mr. SANTOSH KUMAR, HR, of Big Bazaar(Hebbal) whose direction, assistance, and guidance have been invaluable for the project. I wish to thank Hebbal staff for their constant support.

I express special thanks to Prof. B.K.BHARDVAJ my project guide, who provided his recommendations and suggestions to complete my project successfully.

I particularly like to extend my thanks to my faculties, seniors and also to my friends who supported me during the project.

VIJAY KUMAR SAHU

CONTENTS

CHAPTER

TOPIC

PAGE NO.

1
1.1 1.2 a. b. c.

INTRODUCTION
General Introduction about the sector Industry Profile Origin and development of the industry Growth and present status of the industry Future of the industry

2 2.1 2.2 2.3 2.4 2.5 2.6

PROFILE OF THE ORGANIZATION Origin of the Organization Growth and development of the Organization Present status of the Organization Functional Department of the Organization Organization structure and Organization chart Product & services profile of the Organization

2.7 3 3.1 3.2 4 4.1 4.2 4.3 4.4 4.5 5 5.1 5.2

Market profile of the Organization DISCUSSION ON TRAINING Students’ work profile (Role and Responsibilities) Description of live experiences STUDY OF SELECTED RESEARCH PROBLEM Statement of research problem Statement of research objective Research design and methodology Analysis of data Summary of findings SUMMARY AND CONCLUSIONS Summary of learning experience Conclusion and Recommendations ANNEXURE BIBLIOGRAPHY

EXECUTIVE SUMMARY

India is experiencing socio-demographic changes which are further ing the growth in organized retail industry. The demographic changes relating to indian consumer class with 65% of the population below the age of 35 years, the generation derives the retail industry. It is expected that within a decade, the number of people in the age group 20-49 would increase by 30% from 395 million in 2000 to 510 million in 2010. In the near future the brand-conscious young population will constitute the largest segment of demand for the majority of retailers.

The title of the study is 'PROCESS IN DEPARTMENTS OF BIGBAZZAR & CRM'.

CHAPTER 1 INTRODUCTION

1ST CHAPTER OVERVIEW

1. 2. 3. 4. 5. 6. 7. 8. 9.

INDUSTRY OVERVIEW. FUTURE OF THE INDUSTRY. GROWTH OF INDIAN RETAIL INDUSTRY. TRENDS IN RETAIL INDUSTRY. DRIVERS OF GROWTH IN ORGANISED RETAILING. RETAILING THROUGH MALLS. FDI IN RETAILING. IMPACT AREAS. CONCLUSIONS.

GENERAL INTRODUCTION

Like England, India too, has been described as a notion of shopkeepers having an estimated 15 million small retail outlets, mostly single-store, family-owned fronts all over the country. This works out to 14 shops per 1000 people, which is one of the highest densities of shops per 1000 population all over the world. The unorganized sector comprising small & medium retailers who employ over 40 million people is indeed the current face of retail that is in the threshold of transformation to a more organized form. Only 2-3 % of retailers are large -scale who have the ambition to organized retailing to the whole of India. Only 4% of the 15 million retail outlets have floor space in excess of 500 sq.ft. The vast available untapped potential, naturally has attracted majors like Relience, Tatas, Birlas, Godrejs, Mahindras & ITC to foray into this sector. More Importantly, the revolution in retail forges farm to fork linkages with thousands of farmers to procure additional outlets for retailing their produce. This necessarily entails huge investments in supply chain logistics, cold chain, warehousing, & so on all over India's rural market. The further the opens up new business ventures creating additional employment oppertunities. One such retail is the FUTURE GROUP headed by Kishore Biyani, the country's largest retailer having 3.2 million sq.ft., of retail space across 36 cities. He intends to spend US$ 1 billion to increase that to 10 million sq ft by 2010. The group had a presence in various segments that scattered to a wide section of consumer in india. Some of the segments include retail, fashion, food, communication, health & beauty, which were managed through multiple retail formats.

INDUSTRY OVERVIEW:

Retail is the world's largest industry with global sales of roughly US$ 8 trillion. Retailing is also one of the biggest contributers to the Gross Domestic Period(GDP) of most countries & also one of the biggest employers(Source CII McKinsey Report titled “Retailing in India, the Emerging Revolution”). In India however, the retail sector has been a high level of fragmentation with a large Share held by unorganized players.

INDIAN RETAIL INDUSTRY:
India is the 4th largest economy in the world in purchasing power parity(PPP) terms after USA,China and Japan. In 2006-07, india became the 2 nd fastest growing economy in tne world with a growth rate of 9.2%. the economy is expected to grow at an average 7.8% per annum for the next 5 years. Wholesale & Retail trade sector currently contributes to about 13% of GDP & employs about 40 million people. India has a large number of retail enterprises with close to 12 million retail outlets. India has one of the highest retail densities in the world, but only 4% being larger than 500 sq ft in size. In terms of the structure, the industry is fragmented & predominantly consists of independent, owner managed shops. The retail businesses include a variety of traditional retail formats, such as “Kirana” stores which stock basic household necessities (including food products), street markets- regular markets held at fixed centers retailing foods & general merchandise items, street vendors- mobile retailers essentially selling perishable food items- fruits, vegetables etc & small non specialized retailers.

TRADITIONAL RETAIL FORMATS:

Formats
Counter Stores Kiosks

Definition
Food: Family run stores, selling essentially food items. Pavement stalls selling limited variety of food & beverages. Regular markets held at fixed center retailing food & general merchandise items. Mobile retailers essentially selling perishable food items-fruits vegetables, milk, eggs, etc.

Value position
High Service, Low price, High service Large selections Low price, High service

Indian examples
Kirana Store Paan Shopkeepers

Street Markets Street Vendors

Village Haats

Vegetables Vendor

RETAILING IN INDIA, THE EMERGING REVOLUTION! • Retail sector accounts for 35% of India's GDP. • Provides employment to 15% of the population. • World's largest retail networks with 12 million outlets. • Total market size of retailing in India now is US$ 300 billion. • Current share of Organized Retail is 3% or US$ 9-10 billion. • Projected Growth @ 40% p.a., to become US$ 24 billion by 2010.

FUTURE OF THE INDUSTRY
India is one of the most attractive retail markets in the world, estimated at US$ 300 billion with a sizzling growth potential of 40% per annum. With such an explosive trajectory, it is hardly surprising that many global and national players have announced ambitious investment plans of US$ 22 billion over the next five years to set up shop, as it were, throughout the country. The us$ 315 billion global major Wal-Mart has a joint venture with Bharti Enterprises and has plans to rollout its stores by mid-2008, reaching 75 cities over the next 5-7yrs , according to Raj Jain, Wal-Mart’s president for emerging markets. India’s Fortune 500 private sector giant, Reliance Industries Ltd. has, in-fact, been first off the blocks by launching its Reliance Fresh outlets in Hyderabad, the cyber-savvy capital of the state of Andhra Pradesh in November 2006 and has since fanned out to 18 states. By end-2007, it plans to extend its retail footprint to 70 cities. To match the likes of wal-mart, reliance has on the anvil plans to spend US$5.6billion to set up its outlets in 784 cities and towns all over the country by 2010. India’s much awaited retail revolution has therefore, already been set in motion. The revolution that is being retailed doesn’t, however , conjure this sector into existence out of nothing. Like England, India , too, has long been described as a nation of shopkeepers having an estimated 15 million small retail outlets , mostly single-store , family-owned fronts all over the country. This works out to 14 shops per 1,000 people , which is one of the highest densities of shops per thousand population. The unorganized sector comprising small and medium retailers who employ over 40 million people is indeed the current face of retail that is in the throes of a transformation to a more organized form. Only 2-3% of retailers are large-scale who have the ambition bringing organizing retailing to the whole of India. While the current policy regime bars foreign retailers from selling multiple brands directly to consumers, they are allowed to operate in the cash and carry or wholesale format that has brought in Wal-Mart and the metro group. The winds of reform are not freely blowing through India’s retail sector, as there are political sensitivities involved. Simply put the entry of Wal-Mart and other global

retailing giants is feared to threaten the livelihood of millions of retail stores. It bears mention that Wal-Mart employs only 1.4 million workers but its turnover is similar to that of India’s retail trade as a whole. For starters, the revolution in retail entails tapping the huge opportunity at the bottom of the pyramid. This necessarily implies moving down from the top, comprising major metros like New delhi , Mumbai , Kolkata , Bangalore , Chennai and Hyderabad to smaller cities like Agra and Kanpur in the state of Uttar Pradesh or Indore and Ranchi in central India or Vijayawada and Visakhapatnam in the southern state of Andhra Pradesh , to name a few such examples. Then , moving on to the smaller towns and villages ,where the real opportunities indeed lie at the base of the pyramid.

Major players like Reliance have all begun with the big metros like Hyderabad and Chennai in their foray into retailing. The reasons include higher disposable incomes and a large working and earning population in these agglomerations. But how many players can find this business viable if they concentrate only on this urban segment. A typical sight in most metros in the shopping mall where organized players retail their wares alongside each other. Mukesh Ambani, Chairman and MD of Reliance, for his part, belives that “there is enough room for six-to-eight players” in this business. The action perforce has to shift to smaller cities and towns. To some extent, this is already happening in cities like Vadodara and Surat in the state of Gujarat. According to IBEF reports are 200 malls spread all over India and 700 new malls are coming up, 40% of which are concentrated in the smaller cities and towns. The reason are not far to seek. The contribution of smaller cities to organized retail sales was 15% in 2005 and has risen to an estimated 25% in 2006. With growth of 5060% every year when compared to 35-40% in the large cities, the smaller cities are the torchbearers of the retail revolution. A factor that is fanning the move out of them metros is booming real estate costs. Players like Biyani of the Future Group have been stating that the smaller cities have a 15-30% cost advantage over the larger cities in this regard and, accordingly, have plans to set up 400,000 sq.ft of retail space in Ahmedabad, Vadodara and Surat. Average rentals are in the range of Rs 50-60 per sq.ft per month

in the smaller cities when compared to Rs 100-120 per sq.ft per month in the bigger cities. As lease rentals are an important aspect of the economics of organized retailing, the move to smaller cities will only accelerate further Ballooning employees costs are in larger cities are another reason why organized retailers are also setting up training facilities in smaller cities. Although retailing is the second largest employer after agriculture, there is a requirement upwards of two million personnel. Existing players thus are scrambling to set up training facilities to bridge the gap between demand and supply. Bharti Enterprises has, for instance , set up the Global Retail School in Chandigarh to train the large numbers required by its parent’s retail venture and plans to open 30 more centers in smaller cities like Jammu and Ludhiana by end-2007. More importantly, the revolution in retail forges to fork linkages with thousands of farmers to procure fresh produce for the outlets. This necessarily entails huge investments in supply chain logistics, cold chain,warehousing and so on all over India’s rural hinterland. To be sure, some corporates like the agribusiness giant ITC have a head start as they have cut out intermediaries and purchase agri-produce from farmers at e-choupals. A logical step forward has been to set up Choupal Freshgrocery stores selling fruits and vegetables in Hyderabad, Pune and Chandigarh . Reliance, too, has begun procuring farm produce directly from farmers. To stock its Chennai outlets, its supply chain bypasses the Koyambedu whole sale market and sources greens and vegetables from farmers in nearby places like Tiruvallur. In Ranchi, despite the recent opposition to its outlets, around 300 vegetable and farmers entered into a deal to supply directly to Reliance’s purchase centers at Brambay and Pithori. Dealing with farmers and payng much higher prices for their produce within a few hours of plucking from the field enhances purchasing power at the bottom of the pyramid. To be sure, there is a lot of opposition from vested interests like wholesale traders to the farm to fork revolution. Companies like Reliance face a tremendous amount of opposition in bypassing established intermediaries in states like Tamilnadu and even WestBengal. But states like Haryana , Andhra Pradesh nad some parts of Uttar Pradesh have allowed direct procurement. More states will follow suit. Like ITC’s e-choupal scheme, the US agency for International Development also has a

program in India to bring together farmers and organized retailers to help source fresh agricultural produce. Ultimately, the prospectus is for this revolution in the country side to go global as corporates get into contract farming and source farm produce also export. “The concep of farm to fork means that it will integrate the Indian user with the global chain. When US President George Bush came to India, the mango market was opened up. Wal-Mart coming in helped us open the US market,” stated Ambani at the India Economic Summit 2006. The retail revolution that is underway has all these potentialities, including delivering health,micro-credit,education and entertainment to the bottom of the pyramid.

GROWTH OF RETAIL INDUSTRY
Growth of organized retail in India
India is expected to show similar trends as Indian consumers in the past have shown an ability to leapfrog evolution cycles as has happened in the case of various consumer products such as mobile phones. As per estimates, retail spending in India in fiscal 2005 stood at Rs. 9,990 billion of which the organized sector accounts for Rs. 349 billion or approximately 3.5% . The size of the organized sector expected to grow at 40% per annum reaching Rs. 1,095 billion in 2010. In Thailand, there has been an explosion in the growth of organized retail, with over 40% of the trade moving to formats within 10 years. The easy entry of foreign retailers and the geographic concentration of the retail industry facilitated this growth. In Poland, where modern retail has captured 20% of the market in the last 9 years, ease of real estate access, a level playing field between modern and traditional retailers , abd ease of entry for foreign retailers contributed to the growth.

TRENDS IN INDIAN RETAIL INDUSTRY
Consumer Spend In India
Growth in consumption, the changes in demographics are driving changes in consumption pattern in the country. According to Central Statistical Organization (CSO) private final consumption of consumers in India was over Rs.17,600 billion in FY04.

Urban
CATEGORIES Home textiles Saving & investment Clothing Home appliance & consumer durable Vacation Eating out Foot wear Movies & theatre Entertainment Books & music’s Grocery Personal care Items 1999 1 14 5 9 4 8 1 1 3 5 43 6 2000 1 6.1 6.5 5.5 3.3 7.9 2 2.7 3 7.8 47.8 7.5 2001 1.5 6.4 4.6 7.5 3.1 8.8 2.2 2.6 3 6.5 48 7.1 2002 1.4 5.2 6.6 5 3.4 12.2 2.5 3.8 3 6.7 42.1 8.8 2003 1.6 4.1 7 6.6 3.9 10.8 2.3 4.6 2.1 7.6 41.1 7.6

Consumers shopping basket is changing
Within the overall private final consumption expenditure there are category shifts happening in urban consumption pattern. A study by KSA Technopark shows that urban consumers have increased their expenditure on eating out, movies and theatre, books and music , clothing and personal care items even as they have reduced savings and investments.

Phases Of Mall Development
The concept of Mall has come up in the early 1990’s. India entered the ‘infancy stage’ in 1990’s when the first wave of mall development was observed in the form of Spencer Plaza in Chennai ,Crossroads in Mumbai, and Ansal Plaza in New Delhi. Each of these malls was able leverage a first movers advantage in its respective market by offering consumers an unprecedented mix of shopping, food and leisure popularized in USA. India and China are currently in the development phase marked by rapid pace of creation of retail infrastructure. Mall development in both these countries is trickling down to smaller cities and towns. In India tier I and tier II cities have seen a sudden spurt in the development of Mall. During the 1990’s South-East Asia and the Middle East had seen a similar rise. The UK and US have reached a declining stage in Mall development. These countries are undergoing a consolidation phase.

DRIVERS OF GROWTH IN ORGANIZED RETAILING
India is experiencing certain socio-demographic changes which are furthering the growth in organized retail while enablers such as availability of quality real estate are hastening the pace of this transformation.

Rising income levels
Increase in household income has led to a substantial change in the profile of the Indian consumer self indulgent consumption patterns. The traditional bottom-heavy triangle, witness a large no. of people in the lower income group and a

few at the top is a trend of the past. But this trend has been changing over the years. Changes are seen both in the rural and urban areas. The chart below clearly indicates the same.

YOUNG POPULATION WITH DISPOSABLE INCOME
The demographic and psychographic changes relating to Indian consumer class is also driving the India retail story. With 65% of the population below the age of 35 years, the young generation has grown up free from shortages and self denial experienced by earlier generations. It is expected that within a decade, the number of people in the age group 20-49 would increase by 30%-from 395 million in 2000 to 510 million in 2010. The brand-conscious young population forms the largest segment of demand for the majority of retailers. For a country like India with large young working population and with a very low burden of dependents, and a large section of population waiting to enter the work force, the household incomes are bound to rise. The higher income levels would lead to higher savings and eventually increase the purchasing power.

AVAILABILTY OF BRANDS AND MERCHANDISE
Consumerism and brand proliferation has been another enabler for organized retailing in India . Some of the well-known names that have set-up their operations in the country are

Category Foods & beverages: Apparel: Durable: Sports goods: Luxury: Consumer goods:
Mc Donald’s Pizza, Pizza hut, Ruby,etc. TommyHilfiger,Mamgo,Marks&Spencer,etc. Sony, Philips, LG, Electrolux, Nokia,etc. Nike, Adidas, Reebok, Bata ,Florisheim. LVMH, Bvlgari, Cartier, Omega ,etc. Nestle, Coca-cola, Pepsi ,Cadbury’s,etc.

AVAILABILITY OF QUALITY REAL ESTATE
Availability of quality real estate has been one of the main constraints for development of organized retail in India. In the past , negative yield on leased property , lack of bank funding and the unorganized property market resulted in dearth of quality retail space in the country. The spread between yield on property and the financing cost has turned positive with the fall in interest rates. Attractive yields on investments have resulted in sharp increase in property development. Malls across the globe are getting bigger. Malls are becoming because they are now being positioned as a one stop shop for shopping, entertainment, leisure and eating out needs rather than a place only for shopping for fashion products. In addition, the various State governments have taken proactive steps to release large tracts of land for commercial development. Growth of property funds and permission for Real Estate investment Trusts(REITs) to be set up will further help to create a secondary market for real estate in the country. Profitable mall space is not evenly distributed across the country.

IMPACT OF GLOBALIZATION
Globalization has removed trade barriers and promoted consumerism. Over the last decade, there has been an increase in branded goods-both domestic and international-in the Indian market across product categories. Both width and depth of product offering to the Indian consumers is increasing.

COMPOSITION OF ORGANIZED RETAIL
A break-up sales in organized retail shows lifestyle as the largest segment accounting for 73% in value terms. This is followed by food and grocery accounting for 14% of the organized retail value. Rapid growth of organized retailing is expected in the food segment. We believe this can be attributed to the highly unorganized nature of the market currently, which thus present an attractive potential, and the growing preference of consumers to shop at modern retail formats. Clothing is the other segment expected to show high growth potential.

CHALLENGES FOR ORGANIZED RETAIL
Availability of skilled man power: The non-availability of trained man power, especially at the management level, poses a key risk for the retail sector. With growing opportunities in the emerging service sectors, the availability of the retail business to hire and retain quality people is under pressure. Further, as organized retail grows rapidly, there will be pressure on existing players as new entrants look for trained manpower at various levels. Supply chain issues: Supply Chain Management efficiencies are essential to retailers to maintain and improve margins. SCM includes vendor management and logistics management. Vendor selection is an important outcome of the sourcing process and a key to most efficient sourcing. Logistics management aims to get the goods from the vendor to the store in the shortest possible time thereby avoiding unnecessary stocking of goods. In India, both vendor management and logistics management are still underdeveloped. However, with growing size of operations, supply chain efficiencies will become a key differentiator of profitability in retail. Similarly, supply chain tools and techniques are still developing in India with the increase in organized retailing and entry of international brands. Bar coding is now being implemented, driven by the retailers for whom it is an essential ingredient for supply chain management.

RETAILING THROUGH MALLS
DEPARTMENT STORES
These large stores retail primarily non-food items such as apparel, footwear, accessories, cosmetics and household products. They stock multiple brands across product categories, though some of them focus on their own store label. These stores are found on high streets and Anchors Tenants of shopping malls. Several local department store chains have opened shop in India in the past five years. The

convenience factor coupled with the aspirational perception of shopping in a department store has contributed to their growth. The larger chains of department stores have presence in the metros and mini metros.

SUPER MARKETS
A super market is a store which is a more of a large self-service grocery store selling groceries and diary products and household that are consumed regularly. These are neighborhood stores offering home and personal care products and food products that a typical household consumes on a day-to-day basis. These stores are often part of a chain that owns or controls other super markets located in the same or other towns, increasing the opportunities for economies of scale. These stores offer convenience of shopping by making available a large variety of products at one place.

FDI IN INDIAN RETAILING
Formats for entry in India
Direct participation in Indian retail business is still not permitted under India’s regime of FDI controls, although Minister for Commerce and Industry Kamal Nath has hinted that the total ban on retail FDI might soon become an equity participation cap, possibly of 49%. Till the time a ban is lifted from the FDI, quite a few international retailers in india have adopted different strategies for operating in India. These strategies and models include the following: 51% equity allowed in ‘SINGLE BRAND RETAIL OUTLET’ in the wings are TESCO, CARREFOUR, WALMART, etc.

Franchise Agreements
Franchising is the most widely used entry route by international retailers. Some fast food retailers have entered India through the master franchise route , while Pizza Hut has entered India through multiple regional franchises.

Franchising:

Pizza Hut, Markes & Spencer

CASH & CARRY WHOLESALE TRADING
100% FDI is allowed in whole sale trading , which involves building of a large distribution infrastructure to assist local manufacturers. The business model is built such that the whole seller deals only with smaller retailers and not consumers. Metro AG, Germany was one of the first significant global players to enter India through this route. Shoprite of south Africa has effectively used a combination of cash and carry whole sale trading and franchising to set up their first hypermarket in the suburbs of Mumbai.

WHOLESALE ‘CASH N CARRY’: Metro, shop Rite. STRATEGIC LICENSING AGREEMENTS
This route involves the foreign company entering in to a licensing agreement with a domestic retailer. Mango, the Spanish apparel brand has entered India through this route with an agreement with major brands , a departmental store in Mumbai.

LICENSING: Van Heusen, Arrow, Lee. JOINT VENTURES: Revlon, United Colors Of Benetton. DIRECT 100% COMPANY IN INDIA: Cola Cola, Pepsi & Nestle.

IMPACT AREAS
Traditional Retailers
• Impact

confined to perhaps 300,000 to 500,000 retailers across India coming in

direct range of about hypermarkets and about 3000+ supermarkets by 2011.
• Overall,

the universe of traditional retailers will actually increase by 2011

and

even by 2015.
• Importance

of traditional channel to become even more for established FMCG

and other consumer product companies.

Current Modern Retailers

Most will come under severe pressure. Most are grossly undercapitalized, and have largely invested in the “front

end”rather than the back end.

Most have weak business process and IT systems. Most have no serious understanding or investment in supply chain. Most have no real margin drivers in their business model that can enable them

to make exceptional investments in the immediate future.

Consumers
India consumer-The largest beneficiaries

Reduction of prices in typical monthly “basic needs” shopping bill by at least

10% within next 24-30 months leading to generation of an equivalent amount of surplus disposable income. • Improvement in quality of fresh/perishable products. • Improved assortment, and reliability of availability.

Branded Consumer Goods Players
• At the mass market, most Indian consumers are brand blanked through aspiring for brands. • Most major new entrants will start with heavy proportion of Private Labels, and will probably use branded goods to demonstrate the price-value imbalance between such branded goods and their private labels.

Real Estate
• Additional consumption of almost US$ 127 Billion will require about 600-700 Million square feet of additional retail space 2011. • Current projections on constructions are just about 200 Million sq.ft, leaving a gap of almost 400-500 Million sq.ft. • Investment of about US$ 10-15 Billion needed to make up for this demandsupply gap, and an additional investment of US$ 8-10 Billion needed in Retail fitouts and related equipment.

However…….
• This space is needed across more than 1000 towns, and in major “rural hubs” rather than clustered around top 40-50 cities only. • The developments have to be planned keeping targeted consumers and the targeted “retailers and other service providers” in mind rather than first build based on availability of land and hiring an architect, and then find who could use the space. • Major Hypermarket format retail players will probably work on the basis of taking up space in upcoming malls as well as building own “big boxes”.

CONCLUSIONS
• Indian retail sector poised for developments that are unprecedented not only in India but almost anywhere in the world. • Economic impact will be felt across the entire economy-from customers to produce and manufacturers to service providers to retailers. • Next 5 years will be among the most remarkable in the evolution of modern retail in India.

While India thus is becoming one of the largest retail markets in the world, the transition to a more organized form, however, is not easy will remain politically contentious. For all the fears of the demise of the so-called mom and pop retail stores, the point to remember is that “nowhere in the world has small retailing disappeared. But, nowhere in the world has modern retailing not come in. So, I don’t see why we should be any different,” felt Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission.

CHAPTER 2 PROFILE OF THE ORGANIZATION

ORIGIN OF ORGANISATION
We never created a group identity in the past...... We cannot be known as Pantaloon. It was originally a trouser brand. ----Kishore Biyani CEO, Future Group. PRIL, which begin as a trouser manufacturer in the mid 1980's, had grown over the years to become one of India's largest retail chains. In march 2006, the pantaloons group renamed as the “Future Group”. The future Group was divided into six verticals.

1. Future retail 2. Future Capital 3. Future Brands 4. Future Space 5. Future Media 6. Future Logistics

The “Future Group”
In march 2006, the Pantaloon Knowledge Group, as a part of its restructuring & its expansion plans changedits identity to the “ Future Group”. The new group was set up to drive growth through the use of consumer insights and scenario planning to design future retail delivery formats. Kishore Biyani, chairman PRIL said, “India is changing rapidly and we believe that rather than look at the past to extrapolate or the west to emulate, we have to prepare ourself by planning scenarios based on innovative and original research”. The Future Group operated through Six verticals, Future Retail, Future Brands, Future Capital, Future Space, Future Media, Future Logistics, with each vertical being assigned a specific role. Of this, Future retail was the core vertical of the Future Group

with the other verticals serving it directly or indirectly.

Descriptions of verticals in Future Group
FUTURE GROUP VERTICALS Future Retail Future Space Future Brands Future Media Future Capital under this vertical. Management of all the shopping malls and real estate. Management of all owned or licensed brands of the Group companies. Focus on development and management of retail media spaces. The financial arm of the Future Group , which would focus on retail financial products and services. This vertical would focus on deriving efficiencies across Future logistics businesses through better supply chain management and distribution. DESCRIPTIONS PRIL's Retail business like food and fashion were included

With the launch of Future Group, PRIL had plans to develop a business model, which resembled wall-Mart's Sam's club. This strategy was adopted to strengthen its back-end supply chain sourcing capabilities in addition to reducing costs and scalling up business volumes. Analysts opined that PRIL, under its new identity as the Future Group aimed to garner market share in the retail industry in India. A report released by AT Kearney in 2006 titled emerging market priorities for global retailers, ranked india first in its 2006 Global Retail Development Index, an indication that global retailers considered it one of the most attractive markets. The reports also estimated that the retail industry in india was worth US$300 billion.

Outlook
Big Bazaar has been accepted as a pan-India model, from the agrarian singly to the-cosmopolitan Mumbai. Big Bazaar has democratized shopping in India and is entering its most aggressive role out phase. From 50 Big Bazaars operational now at the end of the current year, this number should go up close to100 stores. Besides, Big Bazaar will enter rural India; it is both a vertical and horizontal aggression. The outlook is very exciting and buoyant.

Fashion Focus
With Private labels expected to be at the forefront, the category is likely to see lot of action in jeans and knits in men's and ladies wear, as well as in the hugely popular fusion or mix and match ladies wear. With the introduction of Gine & Jony products in the stores, the kids and infants section will also be reinforced considerably. Another category that the company has identified is the sportswear category, which will be addressed through the setting up of a fashion led sports apparel mix of the best in national and international brands, all under one roof.

Market size
Largely an untapped and unorganized market as of now, the total retail size of the Indian books and music sector is estimated to be about Rs.800 crore. Of this the share of organized retailing accounting for about 10 percent and is growing at a faster rate than traditional retail. As a size of total retail pie, this segment accounts for just 1 percent but attracts close to8 percent of a consumer's wallet. A recent report indicates that between 2002 & 2007, the category is estimated to grow at a rate of nearly 26 percent every year for the next five years.

Strategic Direction
With a wide range of private labels, at different price points, Fashion Station will continue to provide the customers an alternative option to latest fashion that was hitherto not addressed in modern retail environment. With more stores lined up in the coming year, across cities and towns, this concept would cater to a larger mass of customers and also improve the company's bottom- line. Across India, food habits vary according to community, customs and geography. Food Bazaar, through its multiple outlets addresses this. At the same time,it offers best quality products at wholesale prices to a wide cross section of the Indian population. Food bazar effectively blends the look,touch and feel of the Indian

bazar with the choice,convenience and hygiene that modern retail provides. Most stores are located within Big Bazaar,Central and Pantaloon and act as strong footfall generators. These are separated stand alone Food Bazaar as well. The business contributed just under 50% of value retailing and 20% to the company;s turnover during 2005-06.Food Bazar offers a variety of daily consumption items,which includes staples,soaps and detergents,oils,cereals and biscuits. On the product category side , the primary segregation is done on the basis of staples,fresh products,branded foods,home and personal care products.

Changing Food Preferences
Food Bazaar talks to the housewives of india and constantly learns from them and it is at the forefront of changing preferences. Some of the trends that were noticed during year were increased consumption of processed food category and ready to eat concepts. Besides an increasing number of working women are experimenting lot with their cooking habits and this is opening up of new food categories. Also,an increase in young people opting for impulsive and on the move snacks were noticed. One of the distinct change was an increasing shift towards health based food products. Food Bazaar is working on new categories to capitalize these changes.

Partnerships
Food Bazaar's strategy would be dual. It will continue on its road map of revamping its current portfolio of private labels, either through strategic tie-ups with established players or continue its in-house initiatives, and at the same time enter into additional consumer centric categories by creating new brands.

Restaurant Business
While consumers in the West spend nearly 46% of their food expenditure on away from home meals, Indian consumers spend only about 3% of their food expenditure in hotels and restaurants. However a significant trend noticed in this group is that almost 8% of their wallet share is spent on eating on at either a restaurant or a fast food joint,as compared to other forms of entertainment. In addition,two out of every five households in this group eats out at least once a month. This presents a new an exciting opportunity for organized players in the foods and restaurants business. International and domestic multi-unit restaurant groups are expected to drive the

expansion in the restaurant industry in India. Among the leading trends in this regard would be expansion of quick service restaurants,Fusion concepts,restaurants with a focus on entertainment,and ethnic and regional cuisine restaurants.

Joint Venture with Blue Foods
With the intention of expanding the organized food and restaurant business in the country,the company entered into a equal joint venture with blue foods Pvt. Ltd. Through its PAN India food solution private limited subsidiary. The alliance aims at offering the best in Indian and multi cuisine preparations to Indian public,capitalizing on the modern retail experience and customer insights that Pantaloon provides coupled with Blue Foods reputation as a pioneer in this business.

FINANCIAL PERFORMANCES
The growth in the retail sector was reflected in the financial results of PRIL for 2005-06. For the year ended june 30, 2006, PRIL reported a total income of Rs.18.72 billion in 2004-05. The company also reported a 66.4% rise in net profit, i.e. Rs 641.5 million for 2005-06 as against Rs 385.5 million in the previous year. The company's growth momentum continued as PRIL, recorded a net profit of Rs 386.4 million for the quarter in that Sep30'06.This was an increase of around 186% over corresponding period of the previous year.

COMPANY FUTURE PLANS BY 2010
FORMAT Big Bazaar Converge M Food Bazaar Home Town Central Health Village Future Bazaar E-Zone Pantaloon Planet Retail Depot Fashion station Liberty Electronics Bazaar Collection I Furniture Bazaar all Blue Sky TOTAL SALES (in Rs. Crores) 7650 5335 3250 3200 2300 1725 1600 1550 1500 1250 880 770 480 470 390 150 100 100 32700

Revenues Investment Retail Space Profits Employees

$ 7 billion 4000 (Rs. Crores) 30 million sq. ft. $ 1 billion 120000

GROWTH AND DEVELOPMENT OF ORGANIZATION

Company Name: Pantaloon Retail (India) Limited Background: Founded in 1987 as a garment manufacturing company, the company
forayed into modern retail in august 1997 with the launch of its first department store, pantaloons in Kolkata.

Major Milestones
1987 1991 1992 1994 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand. Launch of BARE, the Indian jeans brand. Initial public offer (IPO) was made in the month of May. The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation. John Miller – Formal shirt brand launched. Company enters modern retail with the launch of the first 8000 square feet store, Pantaloons in Kolkata. Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad. Food Bazaar, the supermarket chain is launched. Central - India’s first seamless mall is launched in Bangalore. Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing and Planet Retail.Sets up India’s first real estate investment fund Kshitij to build a chain of shopping malls. Future Capital Holdings, the company’s financial is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Plans forays into retailing of consumer finance products.Home Town, a home building and improvement products retail chain is launched along with consumer durables format, Ezone and furniture chain, Furniture Bazaar.Future Group enters into joint venture agreements to launch insurance products with Italian insurance major, Generali.Forms joint ventures with US office stationery retailer, Staples. Future Group crosses $1 billion turnover mark.Specialised companies in retail media, logistics, IPR and brand development and retail-led technology services become operational. Pantaloon Retail wins the International Retailer of the Year at US-based National Retail Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona.Futurebazaar.com becomes India’s most popular shopping portal. Future Cap chain,Aadhar present in mark.Future Group acquires rural retail chain,Aadhar present in 65 rural chain,Aadhar present in 65 rural locations.

1995 1997 2001 2002 2004 2005

2006

2007

2008

Hierarchy of Pantaloon (Future Group)

Mr. Kishore Biyani, Managing Director Mr. Gopikishan Biyani, Wholetime Director Mr. Rakesh Biyani, Wholetime Director Mr. Ved Prakash Arya, Director Mr. Shailesh Haribhakti, Independent Director Mr. S Doreswamy, Independent Director Dr. D O Koshy, Independent Director Ms. Anju Poddar, Independent Director Ms. Bala Deshpande, Independent Director Mr. Anil Harish, Independent Director

Rakesh Biyani CEO - Retail Anshuman Singh CEO - Value Fashion Damodar Mall CEO - Incubation & Innovation Hans Udeshi CEO - General Merchandising Hemchand Javeri CEO - Home Solutions Retail (India) Ltd. Kailash Bhatia CEO - Integrated Merchandising Group Madhumati Lele CEO - Services Rajan Malhotra CEO - Big Bazaar Sadashiv Nayak CEO - Food Bazaar Sanjeev Aggarwal CEO - Pantaloons Vishnu Prasad CEO - Central & Brand Factory

AWARDS & RECOGNITION
2009
Images Fashion Forum 2009

Most Admired Fashion Group Of The Year - Future Group Most Admired Private Label - Pantaloons, the lifestyle format Critics Choice For Pioneering Effort In Retail ConceptCreation - Central
Coca-Cola Golden Spoon Awards 2009

Most Admired Food & Grocery Retailer Of The Year Most Admired Food Court Most Admired Food Professional

2007

Images Retail Awards

Most Admired Retail Face of the Year: Kishore Biyani Most admired retailer of the year: Large format, multi product store: Big Bazaar Most admired retailer of the year: Food and Grocery: Food Bazaar Most admired retailer of the year: Home & office improvement: HomeTown Most admired Retail Company of the year: Pantaloon Retail (India) Ltd. Images Retail Forum followed strict international benchmarks in deciding the top honours for Images Retail Awards ’07, with IRIS as knowledge partner and global consulting firm AT Kearney as the Process Approver.
National Retail Federation Awards

(International Retailer for the Year 2007 –

Pantaloon Retail (India) Ltd) The National Retail Federation is the world’s largest retail trade association with over 1.4 million members in the US and across the world. Some of the past winners of the award include Metro AG (Germany), Carrefour (France), Zara (Spain), Boticario (Brazil) and Ito Yokado (Japan). The award was presented at the Retail’s Big Show held in January 2007 in New York.
World Retail Congress Awards (Emerging Market Retailer of the Year 2007 –

Pantaloon Retail (India) Ltd) The inaugural World Retail Congress held in Barcelona, Spain in March 2007 attracted over one thousand retail professionals from over sixty countries. The awards were decided by a multinational Grand Jury. Winners in other categories included Inditex, Mall of Emirates, Marks & Spencer and IKEA.
Hewitt Best Employers 2007 (Best Employers in India (Rank 14th) – Pantaloon Retail

(India) Ltd) Leading human resources consultancy, Hewitt Associates conducts an annual survey of the best employers in India, as part of its global initiative. It is based on CEO interview, People Practices Inventory and Employee Opinion Surveys. Pantaloon Retail became the only retailer to feature among the twenty-five best

employers in India.
PC World Indian Website Awards (Best Indian Website In The Shopping Category -

Futurebazaar.com) PC World, a leading consumer technology magazine selected the best Indian websites in various categories based on use of technology for delivering solutions, information being presented in an intuitive and concise manner and overall experience aided by design.
Reader’s Digest Trusted Brands Platinum Awards (Trusted Brands Platinum Award

(Supermarket Category) – Big Bazaar) The Reader’s Digest awards are based on surveys done among consumers by independent research agency, Nielsen Media Research. This is the second consecutive time Big Bazaar has won this award.

R Retail Asia Pacific Top 500 Awards Asia Pacific Best of the Best Retailers –Pantaloon

Retail(India)Ltd.Best Retailer in India–Pantaloon Retail(India)Ltd. The Retail Asia publication in association with EuroMonitor and KPMG honors the best retailers in 14 countries across the Asia Pacific region. The awards were presented in Singapore in October, 2006.
A Asiamoney AwardsBest Managed Company in India (Mid-cap) – Pantaloon retail

(India) Ltd. The Asiamoney publication conducts a poll among fund manages and investors and does a quantitative analysis of financial performance to select best managed companies in Asian countries.
E Ernst & Young Entrepreneur of the Year AwardErnst & Young Entrepreneur of the

Year (Services) – Kishore Biyani Considered to be one of the most prestigious business awards in India, a jury comprising leading names in Indian business selected the winners based on courage, creativity, passion, endurance and vision.
C CNBC Indian Business Leaders AwardsThe First Generation Entrepreneur of the

Year – Kishore Biyani Organized by CNBC-TV18, the twelve awardees in various categories are decided by a high profile jury, along with research partners - The University of Chicago Graduate School of Business, Development Dimensions International (DDI) and AC Neilson ORG MARG.
Lakshmipat Singhania – IIM Lucknow National Leadership Awards Young

Business Leader – Kishore Biyani. The award recognizes and honors individuals who have contributed consistently to the betterment of our country through their pursuit of excellence. The awards were presented in New Delhi by the Prime Minister Dr. Manmohan Singh in December, 2006.
Images Retail Awards Best Value Retail Store – Big BazaarBest Retail Destination –

Big Bazaar Best Food & Grocery Store – Food Bazaar Retail Face of the Year –

Kishore Biyani The Images Retail Awards are decided through a nationwide consumer & industry poll and nominations followed by performance assessment by team of analysts and jury.
Readers’ Digest Awards Platinum Trusted Brand Award - Big Bazaar

The Reader’s Digest awards are based on surveys done among consumers by independent research agency, Nielsen Media Research.
CNBC Awaaz Consumer AwardsMost Preferred Large Food & Grocery Supermarket

– Big Bazaar Conducted in association with AC Nielsen-ORG Marg across 21 major cities, nearly 10,000 consumers were asked to choose their most preferred brands.
Reid & Taylor Awards for Retail ExcellenceRetail Entrepreneur of the Year – Kishore

Biyani

2005

Images Retail Awards 2005

PRIL- Most Admired Retailer of the Year Food Bazaar- Retailer of the Year(Food and Grocery) Big Bazaar-Retailer of the Year(Value Retailing) Central-Retail Launch of the Year
Voted by Business Today magazine as one of the

Top 20 Companies in India to watch in 2005 India’s most investor-friendly companies in the top 75 India’s Biggest wealth creators in the top 100
DAKS London

PRIL- Brand Builder of the Year
2004 Images Retail Awards 2004

PRIL- Most Admired Retailer of the Year Food Bazaar- Retailer of the Year(Food and Grocery) Big Bazaar-Retailer of the Year(Value Retailing) Central-Retail Launch of the Year
Reid & Taylor and DLF Awards

PRIL - Retailer of the year
2003 Indian Express Award

PRIL –Marketing Excellence and Excellence in Brand Building
Indusland Bank (India Brand Summit) PRIL - Excellence in Brand Building

ORGANIZATION DESIGN & STRUCTURE

Organization Design
The company follow an inverse pyramid structure; as a result decisions are taken closest to the point of customer action. Sales executive are encouraged to think customer first. They are empowered to run their respective departments like 'small business owners'.

Pantaloon India's major retailers with presence in the following two segments 1. Lifestyle Retailing - Pantaloons, Central, all, Blue sky. 2. Value Retailing - Big-Bazaar, Food Bazaar, Depot, Health village, Fashion
station.

Lifestyle retailing: The stores under this category primarily retail non-food
items such as (apparel, footwear, accessories, cosmetic & household products.) The stores under this category retail mainly food &

Value retailing:
household items.

These are primarily large store with volume based discounted prices.

Organization Structure
The organization constitutes the Head as the Store Manager. Under him there is one Assistant store Manager. The Asst. Store Manager handles all Department Managers of every department. Under Department Manager, there is one Assistant Department Manager who helps in guiding the Department Trainee’s. Then from the members of the Department Team, a team leader is their who leads the team of its department.

Descriptions of verticals in Future Group

FUTURE GROUP VERTICALS Future Retail Future Space Future Brands Future Media Future Capital under this vertical.

DESCRIPTIONS PRIL's Retail business like food and fashion were included

Management of all the shopping malls and real estate. Management of all owned or licensed brands of the Group companies. Focus on development and management of retail media spaces. The financial arm of the Future Group , which would focus on retail financial products and services. This vertical would focus on deriving efficiencies across businesses through better supply chain management and distribution.

Future logistics

With the launch of Future Group, PRIL had plans to develop a business model, which resembled wall-Mart's Sam's club. This strategy was adopted to strengthen its back-end supply chain sourcing capabilities in addition to reducing costs and scalling up business volumes. Analysts opined that PRIL, under its new identity as the Future Group aimed to garner market share in the retail industry in India. A report released by AT Kearney in 2006 titled emerging market priorities for global retailers, ranked india first in its 2006 Global Retail Development Index, an indication that global retailers considered it one of the most attractive markets. The reports also estimated that the retail industry in india was worth US$300 billion.

Outlook
Big Bazaar has been accepted as a pan-India model, from the agrarian singly to the-cosmopolitan Mumbai. Big Bazaar has democratized shopping in India and is entering its most aggressive role out phase. From 50 Big Bazaars operational

now at the end of the current year, this number should go up close to100 stores. Besides, Big Bazaar will enter rural India; it is both a vertical and horizontal aggression. The outlook is very exciting and buoyant.

Fashion Focus
With Private labels expected to be at the forefront, the category is likely to see lot of action in jeans and knits in men's and ladies wear, as well as in the hugely popular fusion or mix and match ladies wear. With the introduction of Gine & Jony products in the stores, the kids and infants section will also be reinforced considerably. Another category that the company has identified is the sportswear category, which will be addressed through the setting up of a fashion led sports apparel mix of the best in national and international brands, all under one roof.

Market size
Largely an untapped and unorganized market as of now, the total retail size of the Indian books and music sector is estimated to be about Rs.800 crore. Of this the share of organized retailing accounting for about 10 percent and is growing at a faster rate than traditional retail. As a size of total retail pie, this segment accounts for just 1 percent but attracts close to8 percent of a consumer's wallet. A recent report indicates that between 2002 & 2007, the category is estimated to grow at a rate of nearly 26 percent every year for the next five years.

Strategic Direction
With a wide range of private labels, at different price points, Fashion Station will continue to provide the customers an alternative option to latest fashion that was hitherto not addressed in modern retail environment. With more stores lined up in the coming year, across cities and towns, this concept would cater to a larger mass of customers and also improve the company's bottom- line. Across India, food habits vary according to community, customs and geography. Food Bazaar, through its multiple outlets addresses this. At the same time,it offers best quality products at wholesale prices to a wide cross section of the Indian population. Food bazar effectively blends the look,touch and feel of the Indian bazar with the choice,convenience and hygiene that modern retail provides. Most stores are located within Big Bazaar,Central and Pantaloon and act as strong footfall generators. These are separated stand alone Food Bazaar as well. The business

contributed just under 50% of value retailing and 20% to the company;s turnover during 2005-06.Food Bazar offers a variety of daily consumption items,which includes staples,soaps and detergents,oils,cereals and biscuits. On the product category side , the primary segregation is done on the basis of staples,fresh products,branded foods,home and personal care products.

Changing Food Preferences
Food Bazaar talks to the housewives of india and constantly learns from them and it is at the forefront of changing preferences. Some of the trends that were noticed during year were increased consumption of processed food category and ready to eat concepts. Besides an increasing number of working women are experimenting lot with their cooking habits and this is opening up of new food categories. Also,an increase in young people opting for impulsive and on the move snacks were noticed. One of the distinct change was an increasing shift towards health based food products. Food Bazaar is working on new categories to capitalize these changes.

Partnerships
Food Bazaar's strategy would be dual. It will continue on its road map of revamping its current portfolio of private labels, either through strategic tie-ups with established players or continue its in-house initiatives, and at the same time enter into additional consumer centric categories by creating new brands.

Restaurant Business
While consumers in the West spend nearly 46% of their food expenditure on away from home meals, Indian consumers spend only about 3% of their food expenditure in hotels and restaurants. However a significant trend noticed in this group is that almost 8% of their wallet share is spent on eating on at either a restaurant or a fast food joint,as compared to other forms of entertainment. In addition,two out of every five households in this group eats out at least once a month. This presents a new an exciting opportunity for organized players in the foods and restaurants business. International and domestic multi-unit restaurant groups are expected to drive the expansion in the restaurant industry in India. Among the leading trends in this regard would be expansion of quick service restaurants,Fusion concepts,restaurants with a focus on entertainment,and ethnic and regional cuisine restaurants.

Joint Venture with Blue Foods
With the intention of expanding the organized food and restaurant business in the country,the company entered into a equal joint venture with blue foods Pvt. Ltd. Through its PAN India food solution private limited subsidiary. The alliance aims at offering the best in Indian and multi cuisine preparations to Indian public,capitalizing on the modern retail experience and customer insights that Pantaloon provides coupled with Blue Foods reputation as a pioneer in this business.

FINANCIAL PERFORMANCES
The growth in the retail sector was reflected in the financial results of PRIL for 2005-06. For the year ended june 30, 2006, PRIL reported a total income of Rs.18.72 billion in 2004-05. The company also reported a 66.4% rise in net profit, i.e. Rs 641.5 million for 2005-06 as against Rs 385.5 million in the previous year. The company's growth momentum continued as PRIL, recorded a net profit of Rs 386.4 million for the quarter in that Sep30'06.This was an increase of around 186% over corresponding period of the previous year.

COMPANY FUTURE PLANS BY 2010
FORMAT Big Bazaar SALES (in Rs. Crores) 7650

Converge M Food Bazaar Home Town Central Health Village Future Bazaar E-Zone Pantaloon Planet Retail Depot Fashion station Liberty Electronics Bazaar Collection I Furniture Bazaar all Blue Sky TOTAL

5335 3250 3200 2300 1725 1600 1550 1500 1250 880 770 480 470 390 150 100 100 32700

Revenues Investment Retail Space Profits Employees

$ 7 billion 4000 (Rs. Crores) 30 million sq. ft. $ 1 billion 120000

CHAPTER 3 DISCUSSION ON TRAINING

ROLES AND RESPONSIBILITIES
The trainee roles & responsibilities include-

1. Check previous day's performances • Daily Sales Report(DSR), today's target. • Past Day's Performance and department target's. 2. Brief entries that day's target
• Give individual target to the team members. • Share previous day's sales achievement with the team members.

3. Check department's cleanliness
• Shelves • Gap tables • Merchandise Stacking • Floor etc

4. Identify the stock vs sales
• Identify fast moving and slow moving goods • Identify stock outs

5. Checking display area
• Promotional area • Offer display and communication • Signage • Smooth customer circulation should be kept in mind

6. Observing the Customers
• Taking problems of the customers to store manager notice by observing . • Issues fresh by customers at the time of store launch like price related issue, billing, gifts, etc.

7. Doing the marketing activities
• The trainee has done some marketing activities like promotional activities inside the store and done some surveys on identifying the target areas to promote the store such as individual houses, flats and schools.

8. Checking staff discipline
• Uniform • Shoes

• Attendance • Punctuality • Ensure proper stock filling

9. Ensure all the stocks are properly tagged (hard tags & soft tags). 10. Ensure all damaged stock has been removed from the floor. 11. Check sufficiency on the floor. 12. Monitor Sales and services. 13. Training in Depot's department.
• The trainee has undergone training in Depot's department and taken these responsibilities in that department from opening the department to closing the department.

DESCRIPTION OF LIVE EXPERIENCE
These are some of my live experiences and learning from the store:
• As a trainee I gained enough experience particularly in relation to the initial efforts such as floor designing, stores arrangement, selling counters, billing & delivery counters which are the primary in fracture facilities to be in place for the take off, impressing the customers. • I got a first hand experience of the desirable effect team work. An exposure to work with the immediate superiors and experienced colleagues. And to learn the practical aspects of retailing, face to face dealing with the customers. • I learnt that relationship marketing, the essence of the successful retailing is lesson to be learned step by step and continuously everyday. Retailing provides this wonderful opportunities of imbibing this vital quality of dealing with customers reaching up to their expectations, as each customer leaves a clue that would please customers. • Indeed the exposure at our companies retail outlets taught enough of the practical marketing and sales essentials, which were further enhance with timely and on the spot guidance rendered effectively by the supervisor on the floor. • The added advantage visibly felt by all trainee was their movement to retail

outlets of the company situated in various areas, which had widened their meeting customers at different locations understanding the differences in the purchase preference. • The experience of using PT40 for checking the stock done successfully let in the evening after close off business for four days was thrilling.

I Learnt many things from store such as:• How offers and promotions are executed on floor to increase the sales. • How meetings are conducted successfully. • How to check daily sales and plan for targets, smooth handling of operation. • How to handle pressure in difficult situations,keep benchmarks and try to achieve that. • Understanding the organization and the store objectives, pool all resources together to achieve those objectives. Preparing questionnaires and interacting with customers with a great experience.

LUGGAGE DEPARTMENT @ BIGBAZAAR LUGGAGE
SOFT-LUGGAGE SOFT TROLLEYS HIP-BAGS/BELTS BACK PACKS HARDSUITCASE NECK-POUCH MESSAGE BAGS LOCKS OFFICE BAG CARD-HOLDERS SUIT CASE POUCHES AIR BAGS CAMERA-POUCHES TRAVEL-ACCESSORIES CDPACKS HARDTROLLEYS HARDLUGGAGE

BRANDS AVAILABLE IN LUGGAGE DEPARTMENT:• MILESTONE • VIP • SAFARI • AMERICAN TOURISTER • TRACKER, etc.

PROCESS @ LOGISTICS
The process starts when a requirement of the store is noticed by the department as well as the store. The category or the ware house is informed about the requirement and the category gives a PO(Purchase order) to vendor. Then the vendor sends the required products in a truck to the store along with the invoice, waybill & barcode on the product.

Then the following steps are carried out:1. First the vehicle arrives to the basement of the Big Bazaar. 2. The driver shows the gate pass , STN(stock transfer note) ,pick slip, VAT515 to the security and other officials. 3. Gate pass constitutes date of dispatch, no. of boxes, security sign, security seal, vehicle no., seal no. quantity & order no. 4. Pick slip constitutes details of the stock. 5. VAT515 is commercial tax & is very important. It has to be taken with the driver otherwise the police may seize the truck. It constitutes total no. of boxes, total cost, date, etc. 6. After that 5 members are called to the spot. 7. The 5 members constitute security, unloaders, permanent staff, logistics member & driver. 8. Then the orange color seal on the backdoor of the truck is checked. 9. Then in front of all the members the seal is opened. Then the box are checked. The box has Handling unit sticker. 10. This sticker constitutes box no., stn no.,address & date. 11. Then by the help of the unloaders the boxes are brought down from the truck & unloading is done. 12. By the help of Gate pass, STN & VAT, the products are checked and counted. The ware house seal is also seen. 13. Then the department staff is called for Global Count to check quantity. 14. The pick-slip is given to the staff or team member. They will open by checking the H.U. no. the member checks the Barcode on pick slip with the product Bar Code. 15. If there is quality defect, damage, shortage, excess or expiry then Discrepancy note is made. 16. In the discrepancy note article no., no. of pieces, cost price, total MRP. & the reason of discrepancy is noted. 17. Then it is taken to the logistics office and the member does scanning. 18. After scanning, it is send to the floor for sale. 19. After these all the officials of the logistics does in warding and out warding on the system as well as in the register.

20. Then the Goods Receiving Note is generated(GRN) by the logistics.

CUSTOMER SERVICE DESK(CSD) @ BIGBAZAAR
1. Announcing offers for every department. 2. Announces, if any officials is not available in the respective department. 3. Provides stamp for the warranty of the product. 4. Solves queries of the customers. 5. Availability of gift items during occasions, etc. 6. Exchange of products of customers due to damage, etc. 7. Creates effective communication with the logistics and every dept. of the store. 8. Sorts out the product inquiries. 9. It’s a medium by which all the members stay connected.

CRM @ BIGBAZAAR
CRM Introduction
CRM, or Customer relationship management, is a number of strategies and technologies that are used to build stronger relationships between companies and their customers. A company will store information that is related to their customers, and they will spend time analyzing it so that it can be used for this purpose. Some of the methods connected with CRM are automated, and the purpose of this is to create marketing strategies which are targeted towards specific customers. The strategies used will be dependent on the information that is contained within the system. Customer relationship management is commonly used by corporations, and they will focus on maintaining a strong relationship with their clients. There are a number of reasons why CRM has become so important in the last 10 years. The competition in the global market has become highly competitive, and it has become easier for customers to switch companies if they are not happy with the service they receive. One of the primary goals of CRM is to maintain clients. When it is used effectively, a company will be able to build a relationship with their customers that can

last a lifetime. Customer relationship management tools will generally come in the form of software. Each software program may vary in the way it approaches CRM. It is important to realize that CRM is more than just a technology.

Types of CRM 1) Operational CRM
Operational CRM provides support to "front office" business processes, e.g. to sales, marketing and service staff. Interactions with customers are generally stored in customers' contact histories, and staff can retrieve customer information as necessary.

2) Sales Force Automation (SFA)
Sales Force Automation automates sales force-related activities such as:   Activity Management: Scheduling sales calls or mailings Tracking responses

3) Analytical CRM
Analytical CRM analyzes customer data for a variety of purposes:

   

Designing and executing targeted marketing campaigns Designing and executing campaigns, e.g. customer acquisition, cross-

selling, up-selling Analyzing customer behavior in order to make decisions relating to

products and services (e.g. pricing, product development) Management information system (e.g. financial forecasting and

customer profitability analysis

4) Collaborative CRM

Collaborative CRM covers aspects of a company's dealings with customers that are handled by various departments within a company, such as sales, technical support and marketing.

5) Consumer Relationship CRM
Consumer Relationship System (CRS) covers aspects of a company's dealing with customers handled by the Consumer Affairs and Customer Relations contact centers within a company

6) Geographic CRM
Geographic CRM (GCRM) combines geographic information system and traditional CRM. Geographic data can be analyzed to provide a snapshot of potential customers in a region or to plan routes for customer visits.

4.6 Benefit of CRM
• Provide better customer service • Increase Customer Revenue • Increase Customer Life-Cycle Value • Discover New Customers • Help Sales Staff to close deal fast • Simplifying Marketing and Sales Process • Make Call Centre more effective

Implementation of CRM
Many CRM project "failures" are also related to data quality and availability. Data cleaning is a major issue. If a company's CRM strategy is to track life-cycle revenues, costs, margins, and interactions between individual customers, this must be reflected in all business processes. Data must be extracted from multiple sources (e.g., departmental/divisional databases such as sales, manufacturing, supply chain, logistics, finance, service etc.), which requires an integrated, comprehensive system in place with well-defined structures and high data quality. Data from other systems can be transferred to CRM systems using appropriate interfaces. Because of the company-wide size and scope of many CRM implementations, significant pre-planning is essential for smooth roll-out. This pre-

planning involves a technical evaluation of the data available and the technology employed in existing systems. This evaluation is critical to determine the level of effort needed to integrate this data. Equally critical is the human aspect of the implementation. A successful implementation requires an understanding of the expectations and needs of the stakeholders involved. An executive sponsor should also be obtained to provide high-level management representation of the CRM project. An effective tool for identifying technical and human factors before beginning a CRM project is a pre-implementation checklist. A checklist can help ensure any potential problems are identified early in the process.

Privacy and data security
One of the primary functions of CRM software is to collect information about customers. When gathering data as part of a CRM solution, a company must consider the desire for customer privacy and data security, as well as the legislative and cultural norms. Some customers prefer assurances that their data will not be shared with third parties without their prior consent and that safeguards are in place to prevent illegal access by third parties.

CHAPTER 4 STUDY OF RESEARCH PROBLEM

STATEMENT OF RESEARCH PROBLEM

A knowledge of the customer satisfaction, services rendered by

Bigbazzar,

perceiving the prices of their product & services, availability of Big Bazzar, customer outlets in close proximity and mainly awareness of Big Bazzar Retail service helps in formulating an approximate marketing strategy to grab a good market share in a tough competitive market. A study of this aspect would enable the to know their market share and awareness level of the Big Bazzar.

Hence this research problem has been undertaken. The main aim of this project is to study the rate of awareness & satisfaction among the consumers about Big Bazzar prepaid, to study the factors contributing to consumer preference for BigBazzar product and to study consumer perception about pricing of Big Bazzar product & service.

STATEMENT OF RESEARCH OBJECTIVES

1. 2.

To study the degree of awareness among the consumers about Big Bazzar. To study the factors contributing the consumers preference for Big Bazzar Products.

3. 4. 5.

To study consumer perception about pricing of Big Bazzar. To obtain consumers rating of various plans offered by Big Bazzar. To identify the factors which contribute to consumer overall satisfaction of

Big Bazzar.

RESEARCH DESIGN & METHODOLOGY
RESEARCH METHODOLOGY
For the study perspective, the Researcher has done a survey to know the CRM tools in Retail Industry.

1. Problem Identification:
The first step in marketing research project is to define the problem. It includes purpose of the study, the relevant background information, the information needed and how it will be used in decision making. It involves discussion with the decision makers, interviews with industry experts, analysis of secondary data and some qualitative research. There are some of the problems which identifies in the following.

• A number of Customers feel that Big Bazaar is not maintaining customer
relationship.

• A number of people are not satisfied with service of Big Bazaar. • A number of people are not aware about schemes launched by Big Bazaar. • Sales Staff of Big Bazaar is not up to mark to solve complains.

2. Research Design
The researcher will use Descriptive Research. Study the objective frame, the research design prepared is descriptive research. The descriptive frequency with which something occurs or how the variables vary together. The advantage of descriptive design is that it is not based on judgment or intuition as in the case study but it is based on the actual data collected and it’s therefore more accurate in general. On the fundamental drawback of descriptive design is that it does not find cause and effect relationship among variables. Initially the information has been collected from related secondary sources, i.e. textual references, journals, magazine’s, publications etc. related to the topic. After exploration of information, descriptive research was initiated by formulating structure questionnaire. Since, this study is mainly a descriptive research, conclusions have been drawn from each question in the questionnaire process its own objective in itself.Questionnaire being designed by keeping each and

every variable in mind.

3. Data Collection and Sampling:Primary data are used for the core purpose of the project. And this primary data has been gathered by survey method.

Data collection Tools: Questionnaire, personal interview, observation method. 4. Sampling Unit: I) Who is to be surveyed? Youngsters, business people, educated housewives
were selected to conduct survey and to check their attitude.

II) Sampling types: For the purpose of the study simple random sampling
was used.

III) Sample Size: Survey of 100 respondents is carried. IV) Sampling Area: Was outside Big Bazaar shopping mall. 5. Data Analyze and Interpretation: Tables and graphs.

LIMITATION OF THE PROJECT
Each task has its own advantage or disadvantages and barrier in the cause of action, but this does not mean that the task should get stop whenever certain limitation arise. Each aspect has its own limitation. I try my best to overcome these obstacles. There are some limitations of this project:

• Some customers are not willing to give proper response. Some customers have
not purchase product from all section of Big-Bazaar,but they give their view for all section.

• Due to difference in language, sometimes I have to fill up the questionnaires
according to they answer.

• Being student, money and time were my major limitation. • Some of respondents were not co-operative they didn’t provide some of the
details.

• The population under the study is subject to limitations of particular region and
respondents the information regarding bangalore district only.

ANALYSIS & INTERPRETATION OF DATA
1 . Which Retail shop you usually go to purchase? DECISIONS Respondents RES. (%) Big Bazaar 63 63.00% Reliance Fresh 7 7.00% A.B. More 5 5 Others 25 25

fig:-1 Interpretation:The most of the peoples are using the difference type of the retail shop, there are 63% of respondents are going purchase in the Retail shop of Big-Bazaar, 7% of respondent choose to Reliance Fresh, 5% of respondents are choose to Aditya Birla MORE, 25% of respondents are choose to other Retail shop for purchasing the goods and other services.

2. How many Retail shop do you visit?

Decisions Only one Retail store More than 1 but less than 5

Respondence 31 27

Res.(%) 31% 27.00%

Any Retailer

42

42.00%

fig:-2 Interpretation:
There are different time of retail shop visited by the respondents as like, 31% of the respondents are going to only one retail store for purchasing, 27% of respondents are choose to the more than 1 but less than 5 retail store, 42% of the respondents are choose to any retail shop for the visiting.

3. Which are the reason for selecting retail store? Decisions Near he home Have loyalty card Good quality of product Respondence 21 9 70 Res. (%) 21.00% 9.00% 70.00%

fig:-3

Interpretation:
There are different types of the reasons for choosing/selecting the retail stores like, 21% of respondents are like to choose for the near the home, 9% of peoples are choose for have loyalty card, 70% of the respondents are like to choose for the good quality of the product.

4. Are you aware about Big-Bazaar? Decisions Respondence Res.(%) YES 97 97.00% NO 3 3.00%

fig:-4 Interpretation:
The brand awareness about the Big-Bazaar as like, 97% of respondents are aware about the Big-Bazaar, and 3% of the respondents are not aware about the BigBazaar.

5. Since, when you aware about the Big-Bazaar? Decisions Less than 1 month 1to 5 months Respondence 4 9 Res.(%) 4.00% 9.00%

5 to 10 months More than year

23 64

23.00% 64.00%

fig:-5 Interpretation:
The period of awareness about the Big-Bazaar as like, 4% of the respondents are aware in the period of less than 1 month, 9% of respondents are aware in the period of between 1to 5 months, 23% of respondents are aware in the period of between 5 to 10 months, 64% of respondents are aware in the period of more than the year.

6. Are you satisfied with the services that are provided to you by Big-Bazaar? Decisions Respondence Res.(%) YES 77 77% NO 23 23%

fig:-6 Interpretation:
The satisfaction about the service of the Big-Bazaar, as like, 77% of the respondents are satisfied from the Big-Bazaar, 23% of the respondents are not satisfied about the service of Big-Bazaar.

7. Are you aware about schemes, provided by Big-Bazaar? Decisions Respondence Res.(%) YES 61 61.00% NO 39 39.00%

fig:-7

Interpretation:
The awareness about the schemes of the Big-Bazaar as like, 61% of the respondents are aware about the schemes, and 39% of respondents are not aware about the schemes of the Big-Bazaar.

8. Tick marks on suitable sentence you aware about the schemes? Decisions Before launching in stor On the day at launch After the launch Respondence 11 13 35 Res.(%) 19.00% 22.00% 59.00%

fig:-8 Interpretation:
The awareness about the schemes, there are different ways of the to aware about the schemes, there are different response for it as like, 19% of respondents aware before launching in the store, 22% of respondents aware on the day at launch, and 59% of the respondents aware after the launch of the schemes of the Big-Bazaar.

9. By which medium you come to know about the scheme? Decisions Respondence Res.(%) SMS 5 9% Call 3 5.00% Paper 51 86.00%

fig:-9 Interpretation: There are different medium for come to know about the schemes, and different response for the different medium as like, 9% of the respondents are SMS, 5% of respondents are Call, and 86% of the respondents are Paper come to know about the schemes. 10. How is the Behavior at sales staff towards you?
Decisions Respondence Res.(%) Very Good 42 42% Good 46 46% Average 10 10% Poor 2 2%

fig:-10 Interpretation: There are different responses for the staff behaviors of the Big-Bazaar, as like, 42% of respondents’ very Good behavior at the sales staff, 46% of respondents says to good, 10% of respondents says to average, and 2% of

respondents says to poor behavior about the sales staff of the Big-Bazaar.

11. If you have any complain related to product than staff will,
Decisions Immediate try to solve Delays the process but solve it Ignore the problem Respondence 30 37 33 Res.(%) 30.00% 37.00% 33%

fig:-11 Interpretation: The problems about the Big-Bazaar is become to different response for it as like, 30% of respondents of become to says immediate try to solve, 37% of respondents are become to says delays process but solve it, and 33% of respondents are become to says ignore the problems of the consumers.

12. Has Big-Bazaar ever provided a feedback form? Decisions Respondence Res. (%) YES 27 27.00% NO 73 73.00%

fig:-12

Interpretation: The response about the feedback form about the Big Bazaar there are different response for this, as like, 27% of respondents are says to become yes for it, and 73% of the respondents are become to says no for the feedback form about the Big-Bazaar.

13. Tick mark on the appropriate answer in Big-Bazaar, customers are treated as, Decisions Respondence Res. (%) God 6 6% Friend 26 27% Customers 65 67%

fig:-13 Interpretation: To study the customer relationship management there are different ways to

become understand customer is different ways as like, 6% of respondents are become to says the customers are treated as the God, 27% of the respondents to says to customers are treated as the friend, and 67% of respondents are become to says to the customers are treated as customers.

14. Have you ever received a gift or any car from Big-Bazaar? Decisions Respondence Res.(%) YES 15 15% NO 85 85.00%

fig:-14 Interpretation: There are different response for the received the gift from the BigBazaar,as like, 15% of respondents are received the gift from the Big-Bazaar, and 85% of respondents are says to become no for the gift received from the Big-Bazaar.

15. Is there any special event where Big-Bazaar had invited you? Decisions respondence Res. (%) YES 6 6% NO 94 94%

fig:-15

Interpretation: The Big-Bazaar keeping the special event for the consumers but there are different response for this, as like, 6% of respondents are says yes for the keeping of the event and 94% of respondents are says to no keep the any special event for the customers.

CHAPTER 5 SUMMARY & CONCLUSIONS

SUMMARY OF LEARNING EXPERIENCE
• As a trainee I learnt many things by joining retail industry. Firstly I understood the concept of retail marketing and related functions. • The suitable work culture for the retail industry dealing with customers of various taste and needs and also working as a team with the fellow workers to achieve the objectives of the organization/store where the practical inputs gained. • It was an exemplary experience to learn from the manager in charge as also from other colleagues who were very transparent and generous in sharing their knowledge for the benefit of trainees.

CONCLUSIONS & RECOMMENDATIONS
Conclusions • From the analysis of questionnaire we can conclude that Big-Bazaar has only one channel to make customer aware about schemes, that is News paper. If the customer failed to read news paper, then they could not aware about scheme • Big Bazaar has not developed a system that can solve the problem of customers immediately. • Big Bazaar has not developed a system that can take the feedback of customers to consider their views. • Big Bazaar is not organizing any event to build strong customer relationship. Recommendations
• It is recommended that Big Bazaar must develop effective CRM tool to survive in the market and to attract more and more customer.

• Big Bazaar must have performed demonstration to make customer aware and create trust among them. • Big Bazaar must develop a membership card to build a long term relationship with customers. • Big Bazaar must have develop a feedback forum ,in which regular feedback of customer must be there and also views of customers must be considerable. • Delivery charge must be as low possible as can, and delivery must be as fast as possible to build strong Relationship. • Big bazaar must organize events and call customers regularly to take part which result into along term strong relationship.

SUMMARY OF FINDINGS

1. According to the findings, it is found that a good no. of customers often do shopping at BigBazaar compared to other retail stores in the city. 2. The finding also showed that the customers visits any retailer according to its wish. 3. The findings showed that the customers generally visit the retail store which has good quality products. 4. The findings made us sure that the BigBazaar has a good awareness all around the city. 5. The customers are satisfied with the service that are provided by the BigBazaar. 6. The customers are very much aware about the offers & schemes of BigBazaar. 7. The findings showed that the customers become aware about the offers after the offer had been started and the best communication that made the awareness to them was news paper. 8. According to the findings, the sales person at BigBazaar have good behaviour toward the customers. 9. If there is complain by the customers, then the staffs solves it.

10. According to the findings, the customer had never got the feed-back form from BigBazaar. 11. The finding showed that the customers are treated as only customers not God or Friend by the sales person. 12. Many customers had not got any gift, etc from Bigbazzar and also they are never invited on the special events of BigBazaar.

APPENDIX
1. Questionnaires How many time you visit the Big-Bazaar in a month? • 1, • 10, • less than 10, • more than 10. 2. what is the amount of shopping you regularly do in BB? • none • 1000 • >1000 • <1000 Do you like the brands of big bazaar? • Yes • No Do the sales person help in selecting the product? • Yes • No How many sales person attend you during your purchase? • 1 • None • More than 1 Are the sales person humble and calm in communication? • Yes • No Are the sales man have effective communication with you? • Yes • No How is the management of customer relationship at BB? • Excellent • Good • poor/bad How is the quality of the materials in the big-bazaar? • Excellent • Good • poor/bad

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BIBLIOGRAPHY

1. 2.

www.pantaloon.com Future Group (www.futuregroup.com) Future Capital (www.futuregroup.in) Future Capital Holding (www.fch.in) Future Generali (www.futuregenerali.in) www.futurebazaar.com PHILIP KOTLER BOOK OF MARKETING.

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