Professional Documents
Culture Documents
Submitted In partial fulfilment of the requirements of Lovely Professional University for the award
of the degree of Master of Business Administration
Submitted To
Mr.Manish Rajput
Lecturer (L S M)
By
Ajeet Singh
Roll No-1905A33
Department of Management
PHAGHWARA
1
PREFACE
Every study needs a research to analyze the problem, and thus working on its improvement is
needed. The research provides an opportunity to a student to demonstrate application of his/her
knowledge, Skills and competence required during the technical session.
The research helps me to devote my skills to analyze the problem and to work upon it and look to
suggest the alternative solutions. Further on evaluating it using theoretical and analytical
approach , it helps me to prepare feasible recommendations on the provided data .
I tried my level best to prepare this report error free and without any contamination. Every effort
has been made to offer the accuracy .
2
DECLARATION
This is to certify that I ,Ajeet Singh ,have worked on this project regarding “catchment area
analysis and customer profiling” The data mentioned in this report was obtained during the work
done by me under the stewardship and supervision of my training guide /trainer Mr. Hanish Batra
Big Bazaar Jalandhar.
In preparing this project I had taken assistance of various books, magazines and websites on the
subject which are enumerated at the lowest ebb tide of this project.
Ajeet Singh
3
ACKNOWLEDGEMENT
With immense regard and respect in the honour of the “Big Bazaar”, I am very grateful to
this organization for providing me an opportunity to perform my summer training project .
Today Big Bazaar stands for its brand name in the hearts of the people of Jalandhar (Punjab)
and I was fortunate to be the part of the organization for at least six weeks.
I am highly grateful to Mr. Hanish Batra for the trust he has shown in me by allowing me to join
his team.
My heartful thanks to Mr Atul Sharma (A S M) The Assistant store manager, Mr.Avinash Soni
Miss. Shweta Sharma (HR Manager) Mr.Sandeep Mr. Kaniya and many other executives in the
organization who directly or indirectly helped me a lot.
Cordial environment in the organization lead to boost my morale which proved to be my driving
force for not only working efficiently for my organization but also for the completion of my
project.
Ajeet singh
Reg No.
10907438
MBA(Entrepreneurship&Retail Management)
4
TABLE OF CONTENTS:
Sr.No Title Page No
2 Literature review 8
8 SWOT analysis 19
9 Research methodology 21
12 Project part –(ii) comparison between Big bazaar and Vishal Mega mart 37
14 Research methodology 39
18 Research Methodology 54
19 Data Analysis 55
21 Data Analysis 66
22 Annexure –(I),(II),(III) 77
5
23 Abbreviations 83
24 Bibliography 84
Secondary objectives:
6
1. To find out the retail scenario in Jalandhar by analysing the family income, family size,
profession, monthly shopping amount of customers.
2. To analyse the competitors of Big Bazaar i.e Vishal mega mart and Easyday.
Literature Review:
7
There was a time not so long ago that large department stores were a completely foreign concept in
India -- but not anymore. The Big Bazaar is one such department store to have set up shop across
the country. Since its first outlet opened in Kolkata in late 2001, the Big Bazaar has spread to
towns and cities at an alarming rate.
These multi-level shopping Mecca’s stock everything from food to fridges, and cookware to
clothes. However, the Big Bazaar isn't your ordinary department store. It's been especially
designed to appeal to the Indian consumer. You may be thinking, what does that mean? In short,
organized chaos.
With a slogan of "Is se sasta aur accha kahin nahi!" ("Nowhere cheaper or better than this!"), the
Big Bazaar targets itself directly at the average Indian's love of following the crowd and
scrambling for a good discount.
You won't find neatly ordered aisles at the Big Bazaar. Instead, stores are laid out to replicate a
market environment, with items all thrown in together. Promotions such as "Sabse Saste Teen
Din" (Cheapest Three Days) and "Purana Do, Naya Lo" (Give Old, Take New) result in shoppers
flooding the stores, to the point that some stores have become so overcrowded they've had to close.
If you visit the Big Bazaar in the daytime during the week, it is possible to have a deceptively
pleasant and hassle free shopping experience.
However, don't make the mistake of going there during a sale, on holidays, evenings, or on
Sunday. When I did this, I had to wait for almost an hour just to be served at the checkout. Forget
about getting the all items I wanted, I was happy to get out of there in one piece!
I've also found that the full price is all too often charged on sale items, so do check your receipt to
make sure that discounts have been properly recorded.
8
Big Bazaar's five-day Independence Day sale has done ‘quite well' across all its formats, according
to sources in the company.
“Overall we have done well, contrary to the fear of impact of inflation and consumers not
spending. For instance, on the last day (August 15), these two formats (Big Bazaar and Food
Bazaar) recorded sales of over Rs 100 crore,”
Big Bazaar expected a 20 per cent hike in Mahabachat sales over the same period last year and
closed with sales of Rs 300-400 crore.
This is the fifth edition of ‘Mahabachat', a five-day annual shopping event across 210 stores of Big
Bazaar and Food Bazaar.
Big Bazaar has come up with the greatest savings of this year. Starting from 11th August, the fight
against price rise led by Big Bazaar will continue up to 15th August, 2010. All the Big Bazaar
stores across India seem to be glorifying in this Maha Bachat season.
You can also avail the ‘Maha Bachat Sale’ online at www.bigbazaar.com. Even shopping through
SMS can be done. Send “BB MB” to 53636 or Call at 1800-209-2255 to avail their offers.
Some exclusive offers include 81 cm LCD TV at Rs. 19,990 and 20% off on Mobile Phones. You
can also get huge benefits at Food Bazaar.
Laptops are available from Rs. 14,990 compared to the normal Rs. 17,990 Market Price. Whether
it be Electronics goods, Food Stuffs, Fashion, Mobiles, Home Needs or Furniture, Big Bazaar does
not leave any section out of this Maha Bachat Sale.
So, get ready for those 5 Days. You would never like to miss those goodies, at such cheap prices.
And for me, I would never like to miss 2 Cold Drinks for the Price of one.
Sprawling shopping centres, multi-storied malls and huge complexes offer shopping, entertainment
and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of
organized retailing and growth in the consumption by the Indian population is going to take a
higher growth trajectory.
The Indian population is witnessing a significant change in its demographics. A large young
working population with median age of 24 years, nuclear families in urban areas, along with
increasing working-women population and emerging opportunities in the services sector are going
to be the key growth drivers of the organized retail sector in India.
Retailing is the final step in the distribution of merchandise - the last link in the Supply Chain -
connecting the bulk producers of commodities to the final consumers. Retailing covers diverse
products such as foot apparels, consumer goods, financial services and leisure.
A retailer, typically, is someone who does not effect any significant change in the product execs
breaking the bulk. He/ She are also the final stock point who makes products or services available
to the consumer whenever require. Hence, the value proposition a retailer offers to a consumer is
easy availabilities of the desired product in the desired sizes at the desired times.
In the developed countries, the retail industry has developed into a full-fledged industry where
more than three-fourths of the total retail trade is done by the organized sector. Huge retail chains
like Wal-Mart, Carr four Group, Sears, K-Mart, McDonalds, etc. have now replaced the individual
small stores. Large retail formats, with high quality ambiance and courteous.
10
Retailing is more than selling goods:
11
Retailing consists of the sale of goods or merchandise, from a fixed location such as a department
store or kiosk, in small or individual lots for direct consumption by the purchaser. Retailing is a
well recognized business function which compromises making available desired product in the
desired quantity at the desired time. This creates a time, place and form utility for the consumer.
The success of retailing is highly dependent on an efficient supply chain management. A well-
developed supply chain reduces wastages and transaction cost thereby reducing the cost of
inventories to be maintained by the producers and the traders. A reduction in the cost of inventory
management leads to a reduction in the final price to the consumer. Retailing has been identified as
a thrust area for promotion of textiles, processed foods, agricultural and horticultural produce.
Retail Sector can be divided into organized and unorganized sectors.
In the 1940s, the population began its movement to the suburbs as the economy shifted from an
agricultural base to an industrialized nation. The first shopping center was opened, which would
eventually be a significant factor in the decline of downtown Retailing in the 1960s and 70s. JC
Penney and Sears began their national mass retailing expansion, and the use of credit cards as
Major retail chains began.
The 1950s witnessed the reaffirmation of the traditional family. The first planned mall and
franchised food restaurant opened. As people continued to flock to the suburbs, the downtown
areas began to decline. Larger suburban malls were created and anchored by traditional downtown
department store merchants. Freeways were expanded and the sales of private automobiles grew,
giving the consumer a wider accessible area in which to shop. Discounters were born, Korvetta
being one of the firsts.
The 1960s witnessed the growth of enclosed shopping centres, with department stores anchors and
specialty retail chains. The baby boomers were teenagers at this point, leading to the growth of
juniors-oriented stores and vendors. Women became targets not just as mothers or wives as they
entered the workforce and consumers became more demanding in their expectation of quality and
service.
In the 1970s, promotional pricing started to pick up the department stores as off-price retailer
emerged. The growth of retail space slowed, as sales increase came at the expense of competition,
not of market growth. This competitive market led to the underperformance of several retailers as
gross margins experienced downtown pressure from increased competition. Retailers in large
upscale markets recognized the time shortage created by dual-career families and began to offer
more services to assist in saving time.
The 1980s witnessed the growth of off price retailing as a distinct, enduring retail format. Retailers
began to drop low profit lines. Acquisitions and mergers were actively utilized as growth
strategies, private brands were redeveloped to enhance uniqueness and margins and offshore
sourcing was developed to compensate for margins
13
Broadly the organized retail sector can be divided into two segments, In-Store Retailers, who
operate fixed point-of-sale locations, located and designed to attract a high volume of walk-in
customers, and the non-store retailers, who reach out to the customers at their homes or offices.
It was only in the year 2000 that the economists put a figure to it: Rs.400, 000crore (1crore = 10
million) which is expected to develop to around Rs.800, 000crore by the year 2005 – an annual
increase of 20 per cent. Retailing in India is unorganized with poor supply chain management
perspective. According to a recent survey by some of the retail consulting bodies, an
overwhelming proportion of the Rs.400, 000crore retail markets are UNORGANISED. In fact,
only a Rs. 20,000crore segment of the market is organized. As much as 96 per cent of the 5
million-plus outlets are smaller than 500 square feet area. This means that India per capita retailing
space is about 2 square feet (compared to 16 square feet in the United States). India's per capita
retailing space is thus the lowest in the world (source: KSA Technopak (I) Pvt Ltd, the India
operation of the US-based Kurt Salmon Associates).
Currently the retail landscape is filled with Supermarket chains with over 9000 outlets all over the
country to increase to around 15000 by the 2015. The success of a couple of hyper mart’s
indicating the evolution of hypermarkets in the country prominent among them is Giant, Metro,
Big Bazaar models. While the average bill value at a supermarket is in the range of Rs.300 per bill,
the average bill amount at a Hypermarket is in the range of Rs.750-1000, indicating that the model
is in tune with the global models where the average spend is increasing with the shopping
experience.
The rampant corruption &poor implantations of taxation laws also permit a majority of the
unorganized retail fraternity with substantially large turnover to avoid paying full taxes.
There are no single factors but numerous factors which have prevented organized retailing from
taking off as it should have in India. Some of the leading factors that have restricted this growth
are as follows.
• Unplanned cities
15
version of, say Chick pet for Bangalore guys or Dadar for Bombay cities. There is a huge crowd
which can move in almost any direction. You can buy anything (pretty much everything is
available at Big Bazaar). It is not a place where you can browse through at leisure and pick up a
few things here and there. This is a place if you are serious about your shopping. And the worst
part is at the checkout counter, where the line can stretch as much as a line for a famous Ganpati
Pandal or a cricket match. Parking is a pain too.
But, the place ticks. In Hyderabad, Bangalore, NCR regions etc the outlets don’t have a place for
customers to stand esp. on weekends. Customers wait outside it some before it opens in the
morning. Bombay is slightly better. Big Bazaar offers good prices-Really good prices. Prices that
tempt. Apart from simple price chopping, there are deals (2 for the price of 1 or prices reduced on
a combination etc). The perception of Big Bazaar is that it facilitates some serious savings on
grocery shopping. And it works. And make no mistake; it attracts the well heeled as much as it
attracts Raju from across the street. That has worked for Big Bazaar is that it has been able to
connect with the customers in the right manner. They had filled a need gap which was there in the
market. Apart from that, their competence in providing products at lowest prices and great quality
in an ambience much better than what the customers were used to, has also contributed to their
success.
The focus is on continuing to provide very high ‘value for money’ to customers by providing
exciting offers throughout the year. It will be facilitated by constantly working on its buying and
supply chain efficiencies. Having already achieved economies of scale and size, they intend to
better their gains by opening new stores regularly.
One of the key philosophies of Mr Kishore Biyani that is highly followed is ‘Rewrite rules, retain
values.’ In essence, it means they don’t take anything as fixed. They are constantly on the lookout
for finding new ways and means to improve the current state of affairs. Thus, innovation is a very
important aspect of their working strategy. The other very important philosophy is that of Indian
ness. All their concepts and formats as well as the way they go about things are very Indian. The
way Big Bazaar is designed and the way the whole concept has developed reflects a sense of
Indianness.
16
This is a well articulated print advertisement campaign for Big Bazaar to highlight their unique
marketing strength, ‘extreme low price’. However, even before this idea has been exercised to
highlight a product by placing it in a stark different environment. Nevertheless, this advertisement
campaign is very well crafted out. Further, the ad is not at all confusing and it straight way
conveys the message without losing focus.
Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chain,
Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain that combines the
look and feel of Indian bazaars, with aspects of modern retail, like choice, convenience and
hygiene. This was followed by Food Bazaar, food and grocery chain and launch Central, a first of
its kind seamless mall located in the heart of major Indian cities. Some of its other formats include,
Collection i (home improvement products), E-Zone (consumer electronics), Depot (books, music,
gifts and stationary), all (fashion apparel for plus-size individuals), Shoe Factory (footwear) and
Blue Sky (fashion accessories). It has recently launched its e retailing venture,
The group's subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon Industries
Ltd, Galaxy Entertainment and Indus League Clothing. The group also has joint venture companies
with a number of partners including French retailer Etam group, Lee Cooper, Manipal Healthcare,
Talwalkar's, Gini & Jony and Liberty Shoes. Planet Retail, a group company owns the franchisee
of international brands like Marks & Spencer, Debenhams, Next and Guess in India.
Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big
Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big
Bazaar, you will definitely get the best products at the best prices -- that’s what we guarantee. With
the ever increasing array of private labels, it has opened the doors into the world of fashion and
general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and
much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add
much more to complete your shopping experience.
VISION
17
Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the
most profitable manner.
MISSION
We share the vision and belief that our customers and stakeholders shall be served only by creating
and executing future scenarios in the consumption space leading to economic development. We
will be the trendsetters in evolving delivery formats, creating retail realty, making consumption
affordable for all customer segments – for classes and for masses. We shall infuse Indian brands
with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to
quality in whatever we did. We shall ensure that our positive attitude, sincerity, humility and
united determination shall be the driving force to make us successful.
CORE VALUES
Respect & Humility: to respect every individual and be humble in our conduct.
Simplicity & Positivity: Simplicity and positivity in our thought, business and action.
SWOT Analysis:
Strengths:
1. In Big Bazaar we can get a large variety of goods under one roof.
18
2. Here good quality goods are available at reasonable prices.
3. A large percentage of customers come from the growing Indian middle class.
Weakness:
Opportunities:
1 .There remains a large future scope for the retail industry in India, as incomes rise and
consumption increases
2.The opportunity for widening the business all over India because Big Bazaar opens new stores in
untapped markets, such as smaller or second tier cities such as Ludhiana, Belgaum and Jalandhar.
Threats :
1. Competition from current Indian retail companies like Shoppers Stop, , Lifestyle, Easy
day.
2. Possible future competition from international retail companies like Wal-Mart, Carrefour, target
etc.
3 .High taxes in India suppress consumption, smaller specialty shops and informal shops are
sometimes able to avoid taxes, offering lower total prices to customers. Even because they are not
earning that much of profits compare to these big companies and they are not paying the taxes.
19
Research Design
DESCRIPTIVE RESEARCH:- Descriptive research includes surveys and facts findings enquiries
of different kinds. The major purpose of Descriptive research is the description of the state of
affairs, as it exists at present. It provides the data about the population or universe being studied.
Descriptive research is used when the objective is to provide a systematic description that is as
20
factual as accurate possible. In this project we have analysed the catchment area of big Bazaar and
comparison of Big Bazaar with its competitors. Therefore my research is descriptive.
Details of Research:
Method Used: Survey method
SAMPLE AREA:- Since the research is on Retail Industry so the sample area that is covered is as
follows-
21
1. Customers coming to Big Bazaar where from:-
Finding: - 58% customers are coming from Jalandhar as compared to the 13% from Phagwara
which is just 8km’s away from the store.
14% customers coming to the store are from the rest of Punjab. These customers include the
roadway crowd presenting the feasibility of our location as our store is situated on the main
national highway no 1, also known as Grand trunk road.
13% from phagwara is concern for us, for this purpose we need to enhance our promotional
activity in Phagwara, so that we can receive maximum percentage from this area.
22
> 5 0 y Nr s / A
4 1 t o 5 0 4y %r s 1 %
6 %
1 8 t o 2 5 y r s
2 6 t o 3 0 y r s
3 6 t o 4 0 y r s
1 1 % 1 8 t o 2 5 y 3r s1 t o 3 5 y r s
3 9 % 3 6 t o 4 0 y r s
4 1 t o 5 0 y r s
> 5 0 y r s
N / A
3 1 t o 3 5 y r s
1 6 %
2 6 t o 3 0 y r s
2 3 %
Interpretation:-
39% people coming to Big Bazaar are falling in 18 to 25 year age group. This is because of India’s
largest university (LPU) which is just 3-4 kms away from store.
70% customers coming to the store are falling in 18 to 35 year age group.
23
F a m i l y S i z e
n a
> 8 3 %
< 2
3 % 3 %
8
3 %
7
5 % < 2
3 t o 4
5 t o 6
3 t o 4
3 9 % 7
8
> 8
n a
5 t o 6
4 4 %
Interpretation:-
Average family size of customers who were part of our survey comes out to be 4 to 5 memebers.
4. Profession of respondents:-
24
P r o fe s s io n
D e f e n s e T e a c h e r
2 % 1 %
F a r m e r N / A
H o u s e W i f e1 % 1 %
5 % B u s i n e s s
B u s i n e s Ps r i v a t e J o b
G o v t J o b 3 5 % S t u d e n t
1 2 % G o v t J o b
H o u s e W i f e
F a r m e r
D e f e n s e
T e a c h e r
N / A
S t u d e n t
2 1 %
P r i v a t e J o b
2 2 % In
terpretation:-
35% respondents are doing business, and only 12% are doing Govt.job but 21% are students which
are not our permanent customers so maintaining this part of pie is foreboding for us.
25
4 W h e e le r s O w n e r s h ip S ta tu s
m o r e t h a n 2
c a r s
n a 6 %
5 %
D o n o t o w n 2 c a r s
a c a r 9 %
1 8 %
m o r e t h a n 2 c a r s
2 c a r s
1 c a r
D o n o t o w n a c a r
n a
1 c a r
6 2 %
Interpretation:-
Only 18% customers do not own a four wheeler, while as 75% customers own four wheeler. We
need to lower our parking fee and also we should keep our prices changing so that we can attract
these 75% customers and we can make them as our permanent customers.
2 W h e e le rs O w n e d
n a m o r e th a n 2
4 % 2
1 1 %
1 5 %
D o n o t o w n a
2 w h e e le r s
2 4 %
m o r e t h a n 2
2
1
D o n o t o w n a 2 w h e e le r s
n a
1
4 6 %
26
Interpretation:-
H o u s e T y p e
N / A
R e n t e d
1 %
9 %
O w n
R e n te d
N /A
O w n
9 0 %
Interpretation:-
91% customers are the owners of their house. And only 9% coming to the store were living here on
rent basis
27
8. Qualification of respondents:-
Q u a lific a tio n
N / A
2 %
P G
1 3 % 1 2 t h
2 9 %
M B B S
1 2 t h
2 %
G r a d
M B A E r .
8 % M B A
M B B S
P G
E r . N A
6 %
G r a d
3 7 %
Interpretation:-
We should use print media for our sales promotion as 95% customers are literate.
F a m ily In c o m e
< 1 0 k
N / A 5 %
1 9 %
< 1 0 k
1 0 k t o 2 0 k
2 4 % 1 0 k to 2 0 k
> 5 0 k 2 0 k to 3 0 k
5 % 3 0 k to 4 0 k
4 0 k t o 5 0 k 4 0 k to 5 0 k
6 % > 5 0 k
N /A
3 0 k t o 4 0 k
1 5 % 2 0 k t o 3 0 k
2 6 %
28
Interpretation:-
M o d e O f C o n v e y a n c e u s e d to r e a c h th e s to r e
P u b lic
N /A T w o
T r a n s p o r t
1 % w h e e le r s
1 0 %
2 0 %
T w o w h e e l e r s
4 W h e e l e r s
P u b l i c T r a n s p o r t
N / A
4 W h e e le r s
6 9 %
Interpretation:-
69% are coming here by 4 wheelers i.e by their own vehicles. This gives us profile of the customer
who is coming to our store.
This figure also indicates that our main customers are middle –upper class people.
29
11. Customer visited the store with:-
G r o u p T y p e
A lo n e
N /A
4 %
0 %
F r ie n d s
F a m i l y
3 3 %
F r i e n d s
A l o n e
N / A
F a m i ly
6 3 %
Interpretation:-
Therefore we should increase the variety of home ware which includes kitchen ware, so that we
can make them as our permanent customers and also we should provide them offers on these
products timely.
30
12. No of members in a group who visit the store:
G r o u p S iz e
N / A
1 2 %
> 5
9 % < 2
< 2
4 0 % 3 - - 4
> 5
N / A
3 - - 4
3 9 %
Interpretation:-
13. Frequency of visit or how many times you visited Big Bazaar Jalandhar
before:-
F r e q u e n c y o f V is it
N / A F i r s t V i s i t
2 %
R e p e a t
V i s i t
N / A
R e p e a t
V i s i t
4 4 % F i r s t V i s i t
5 4 %
31
Interpretation:-
44% responded that we are again either second time or third time to Big Bazaar; it indicates the
trust shown by the customers on the image of store. that is because of the brand image of big
bazaar and punch line iss se sasta aur achha kahin nahi which is building customer loyalty.
M o n t h ly S h o p p in g a t
C S D
N /A
C a n te e n
8 %
M o r e 1 %
2 %
E a s y d a y
V is h a l M e g a 2 7 %
M a r t
1 8 % C S D C a n te e n
E a s y d a y
K ir a n a
R e lia n c e R e lia n c e fr e s h
fr e s h V is h a l M e g a M a r t
4 % M o r e
N /A
K ir a n a
4 0 %
Interpretation:-
Still kirana is the main shopping place for Indian customers, as 40% customers shop at kirana
stores. This is because of the unorganised which is highly organised in the minds of customers
because of its proximity, credit facilities etc customers are going towards these stores.
27% customers shop monthly grocery at easy day, the chief competitor of our store.
Only 18% customers are going towards the first entrant in Jalandhar the vishal mega mart dying
for its survival.
32
15. Have you been to easy day (Vasal tower) Jalandhar?
H a v e y o u b e e n to E a s y D a y (h y p e r)
n a
3 %
n o
4 3 %
y e s n o
5 4 %
y e s
n a
Interpretation:-
Easy day is our chief competitor; we need to keep watch on the activities and strategies used by
easy day for sales promote
Easy day is better Big Bazaar is better Both are same Not answered
Attributes
Prices 35% 24% 34% 7%
Product quality 11% 38% 44% 7%
Service quality 8% 56% 32% 4%
Staff behaviour 7% 57% 29% 7%
Staff knowledge 8% 49% 32% 4%
Store ambience 6% 63% 24% 7%
Ease of shopping 7% 64% 19% 10%
Overall shopping 5% 74% 11% 9%
experiences
Interpretation:-
33
35% customers are saying that Easy day is better in terms of price as compared to 24% in Big
Bazaar.
In all other attributes like product quality, service quality, staff behiour, staff knowledge, store
ambience, ease of shopping, overall shopping experience Big Bazaar leads the table.
We should maintain this and also we should keep our prices equivalent to easy day.
34
Recommendations and limitations
2- Introduce some branded apparels as 70% people coming to our store are in 18 to 35 year
age group.
3- Increase the variety of products in every section excluding food bazaar of big bazaar,
4- Attract low level customers by providing them certain benefits like by keeping products of
lower price not lower quality,
6- Use trolley system outside the store as well. So that customers can not face any difficulty
while handling/taking goods outside.
8- We should keep books like novels, stories, rhymes etc in our store.
10- Some English training for the sales executives would help them to deliver services to English
speaking customers, like NRIs
13. Trim down the parking fee, as our store is located outside of city so customers coming to store
are spending near about 100 Rupees on petrol and diesel ,and he has pay extra money in terms of
parking fee. Second case is that our competitor Easy day being in the centre of city is charging just
5 Rs, therefore we need to do the same.
35
Limitations of research:
Not all the respondents were cooperative thus it was difficult to convince them for filling
up the questionnaire.
Some of the respondents might have been biased while filling up the questionnaire.
The respondents are free from all barriers so he/she can give his/her opinion
which may not be true in many occasions.We made our best efforts in conducting the
research but might have lacked somewhere because of lack of expertise in conducting such survey
based researches.
36
Project Part –ii
37
An introduction to Vishal Mega Mart
Vishal Retail Ltd, an old player in the Indian retail industry, is a pioneer in discount retailing and
is focused on tier II and III cities in the country. It has a strong presence in manufacturing and
retailing of readymade garments (apparels); retailing of non-apparels and a large variety of FMCG
products. The company has pan-India presence with 119 mid-sized hypermarket format stores as
on Fab, 2010 covering about 2.6 mn sq ft retail space area. Vishal is supported by strong
manufacturing set-up in Gurgaon, Dehradun and Manesar with a capacity of 5,000 garment pieces
per day in each unit. It also has 29 warehouses located in 8 key cities in India covering over 1.1mn
sq ft area. Vishal started as a humble one store enterprise in 1986 in Kolkata . India’s first hyper-
market has also been opened for the Indian consumer by Vishal. Situated in the national capital
Delhi this store boasts of the singe largest collection of goods and commodities sold under one
roof in India. The group’s prime focus is on retailing. The Vishal stores offer affordable family
fashion at prices to suit every pocket. The group’s philosophy is integration and towards this end
has initiated backward integration in the field of high fashion by setting up a state of the art
manufacturing facility to support its retail endeavours
38
Research Methodology:
Data collection:
The method of data collection is same as above, but here in Vishal the Data was
collected outside the store, customers who were coming out after purchase where
asked to provide feedback.
Details of research
39
Analysis and interpretation
Same where used for data compiling and execution. The results found where as follows:
40
31-35 36-40 40-50 >50 18-25
18% 12% 2% 1% 43%
26-30
24%
Interpretation:
As results were found also in Vishal as 85% customers are falling in 18 to 35 year
age group and 12% customers in 36 to 40 age group, providing us the percentage
of young generation attracted by the organised retailing, therefore we need to
41
provide them every type of benefit which is soothing there day to day life in terms
of products and services as they are our future customers.
42
I
nterpretation:
43
Only 4% customers coming to Vishal mega mart are coming from Outside
Jalandhar i.e from Hosharpur, Nawashera, kuparthal etc.
Only 1% customers are coming from Phagwara which is just 16 km away from
Vishal mega mart Jalandhar.
44
QNo-3 Family size of customer
45
>7 N/A 1 2 3
10% 5% 4% 5% 9%
6
10%
4
5
31%
26%
Interpretation:
4- Profession Of customers:
46
8% 33%
14%
Business
Defence
Govt
Private
Student
N/A
31% 3%
11%
Interpretation:
Only 14% students are coming to Vishal mega mart as compared to 21% in Big
Bazaar.
47
11% government service ,33% business people are coming to vishal, and 31%
customers are doing private jobs.
5 -Qualification of customers:
48
Interpretation: ?
Nearly 95% customers are literate. The percentage is same with the Big Bazaar.
49
6. Generally, how much amount do you spend on grocery every month
Interpretation:-
50
14% customers spend below 2000 rupees per month on grocery.
19% customers could not answer this question because they were not sure about the exact amount.
51
VishalBigbazaar Kirana
44% 2% 17%
EasyDay
37%
Interpretation:
44% Customer purchase grocery from vishal megamart and 54% from easyday and
kirana store.
52
The maximum percentage is 81% i.e Easy day and Vishal .81% customers
purchase grocery from Vishal and Easy day.
53
22%
yes
No
78%
Interpretation:
78% respondents read that we know Big Bazaar has opened in Jalandhar.
We should increase our advertising campaign so that it can reach out to masses
and classes. So that these 22% customers get awareness of our Big bazaar.
54
9 . Have you been to Big Bazaar?
55
Interpretation:
56
32% responded that we have been to Big Bazaar.
57
Interpretation:
58
Among respondents only 2% reported that Big Bazaar is very good, and 28%
responded that Big Bazaar is good.
70% could not rate because they had not been to Big Bazaar.
Vishal mega mart is Big Bazaar is better Both are same Not answered
better
Attributes
Prices 25% 2% 1% 72%
Product quality 5% 17% 6% 72%
Service quality 1% 13% 12% 74%
Staff behaviour 1% 16% 10% 73%
Staff knowledge 5% 14% 10% 71%
Store ambience 4% 7% 17% 72%
Ease of shopping 2% 11% 16% 72%
Overall shopping 1% 12% 14% 73%
experiences
Interpretation:
In all other attributes only price is the one in which Vishal ahead of us, as 25%
respondents responded that prices are cheap in visual mega mart as compared to
Big Bazaar. In case product quality, service quality, staff behaviour, staff
knowledge, store ambience, ease of shopping etc it was found that Big Bazaar is
better than Vishal mega mart.
59
Comparison between
Founded in 1976, by Sunil Bharti Mittal, Bharti has grown from being a manufacturer of bicycle
parts to one of the largest and most respected business
groups in India. With its entrepreneurial spirit and passion to
undertake business projects that are transformational in
nature, Bharti has created world-class businesses in
telecom, financial services, retail, and foods.
Bharti started its telecom services business by launching
mobile services in Delhi (India) in 1995. Since then there has been no looking back and Bharti
Airtel, the group's' flagship company, has emerged as one of the top telecom companies in the
world and is amongst the top five wireless operators in the world. Through its global telecom
operations Bharti group has presence in 21 countries across Asia, Africa and Europe - India, Sri
Lanka, Bangladesh, Jersey, Guernsey, Seychelles, Burkina Faso, Chad, Congo Brazzaville,
Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria,
Sierra Leone, Tanzania, Uganda, and Zambia. Over the past few years, the group has diversified
into emerging business areas in the fast expanding Indian economy. With a vision to build India's
60
finest conglomerate by 2020 the group has forayed into the retail sector by opening retail stores in
multiple formats - small and medium - as well establishing large scale cash & carry stores to serve
institutional customers and other retailers. The group offers a complete portfolio of financial
services - life insurance, general insurance and asset management - to customers across India.
Bharti also serves customers through its fresh and processed foods business. The group has
growing interests in other areas such as telecom software, real estate, training and capacity
building, and distribution of telecom/IT products.
What sets Bharti apart from the rest is its ability to forge strong partnerships. Over the years
some of biggest names in international business have partnered Bharti. Currently, Singtel, IBM,
Ericsson, Nokia Siemens and Alcatel-Lucent are key partners in telecom. Walmart is Bharti's
partner for its cash & carry venture. Axa Group is the partner for the financial services business
and Del Monte Pacific for the processed foods division. Bharti strongly believes in giving back to
the society and through its philanthropic arm the Bharti Foundation it is reaching out to over
30,000 underprivileged children and youth in India. Bharti Retail is a wholly owned subsidiary of
Bharti Enterprises. The Company operates easyday neighbourhood stores and compact
hypermarket stores called easyday Market. Bharti Retail provides consumers a wide range of good
quality products at affordable prices. easyday stores are a one stop shop that cater to every family's
day-to-day needs. Merchandise at easyday Market stores include apparels, home furnishings,
appliances, mobile phones, meat shop, general merchandise, fruits and vegetables among others.
Bharti Enterprises tied-up with Wal-Mart for opening a chain of retail stores all over India.
Though the retail chain store venture is yet to see the light, the two companies, in August 2007,
made a surprise statement that they have signed a wholesale cash-and-carry deal. The companies
would open 10 - 15 cash-and-carry facilities over 7 years and would employ 5,000 people. Each
store would occupy 50,000-100,000 square feet The other retail companies of Bharti group are
Bharti Retail (Holdings) Private Limited and Bharti Retail Resources Private Limited.
In its first phase of operations, Bharti Retail has opened 59 Easy Day stores in Punjab,
Haryana, Rajasthan, Uttar Pradesh and New Delhi. In addition, it also has launched three compact
hyper stores called Easy Day Market in Punjab. The company has deliberately focused on north
India in its first phase of operations in an effort to consolidate presence in one market, before
expanding to another region. The Easy Day stores source fresh fruits and vegetables from Bharti-
61
Walmart. In an interesting HR innovation the stores plan to tap workforce from the likes of cart
vendors, housewives and retired personnel, by offering flexi-hour work schedules. Such groups of
persons will also be enrolled for structured training modules at the Bharti Retail Academy In its
first phase of operations, Bharti Retail has opened 59 Easy Day stores in Punjab, Haryana,
Rajasthan, Uttar Pradesh and New Delhi. In addition, it also has launched three compact hyper
stores called Easy Day Market in Punjab. The company has deliberately focused on north India in
its first phase of operations in an effort to consolidate presence in one market, before expanding to
another region. The Easy Day stores source fresh fruits and vegetables from Bharti-Wal-Mart. In
an interesting HR innovation the stores plan to tap workforce from the likes of cart vendors,
housewives and retired personnel, by offering flexi-hour work schedules. Such groups of persons
will also be enrolled for structured training modules at the Bharti Retail Academy.
62
Research Methodology:-
The methodology used in performing and analysing this part of survey is same as above. Here also
the questionnaires were filled outside the store and from those customers who were coming out
from store only, in order to avoid any contamination of valuable data.
Details of research
Sample size: 187
63
Data Analysis
64
65
Interpretation:
Same result was found in Easy day as major portions i.e. 71% of pie were in 18-35 year age group.
Only 14% customers coming to the store are in 36-40 year age group.
The data provided us that the young people are more eager to go for shopping, because of
standardised and systematic appeal of organised retailing. This also shows us that the opportunities
and expectations of organised retailers will keep growing in Jalandhar as it was found in the survey
that maximum percentage of both the masses and classes are interested in purchasing goods from
organised retailers.
66
2: Address of the respondent.
2% 1% 2% 2%
6%
J
ROP
K
P
OOP
N/A
87%
Interpretation:
67
The store being in the heart of city, it attracts maximum percentage i.e. 88% of customers from
Jalandhar.
2% from out of Punjab i.e includes the people who are doing job in Jalandhar.
68
>7 N/A 2 3
14% 5% 5% 11%
6
17% 5 4
20% 28%
4: Profession of customer:
69
70
Interpretation:
8% customers are doing govt.jobs, it indicates that customers who are doing govt job are not
coming organised retailers, as it was also found in case of Big Bazaar and Vishal that only 7-9%
customers coming to these organised retailers are doing govt job. The fact behind this may be that
govt employees get salary after completion of month, till that they are purchasing goods from
kirana stores on credit. Second point may be the salary that govt employees are getting lesser
amount in terms of salary as compared to pvt.and business persons. Third point is that the
organised sector is just 6-7 % in India , hence the people are less aware about this industry.
In order to attract this part of market organised retailers need to enhance their image, loyalty by
promotional campaigns and also some strategies should be used at the end of month so that the
share of this part may increase.
71
5: Qualification of respondents
72
Interpretation:
73
97% customers are literate.
74
Interpretation:
Only 24% customers do not know Big Bazaar has opened in Jalandhar.
75
We should increase our promotional activities so that at least whole Jalandhar city can speak about
Big Bazaar or the percentage can increase to 90%.
76
Interpretation:
77
63% customers responded that we had not been to Big Bazaar.
Customers were enquired about this why you are not going to Big Bazaar, maximum times the
answer was that it is far away from the city.
78
Interpretation:
79
8: Which store do you think is better in following attributes?
Easy day is better Big Bazaar is better Both are same Not answered
Attributes
Prices 23% 1% 13% 63%
Product quality 8% 4% 25% 63%
Service quality 7% 7% 22% 64%
Staff behaviour 6% 6% 25% 63%
Staff knowledge 6% 8% 23% 63%
Store ambience 5% 12% 20% 63%
Ease of shopping 9% 4% 24% 63%
Overall shopping 6% 7% 23% 63%
experiences
Interpretation:-
23% customers responded Easy day is better in prices, as compared to meagre 1% of Big Bazaar.
Service quality, staff behaviour and also somewhat in case of overall shopping experience the
response given was same with Easy day. But about product quality and ease of shopping customers
exercised their vote towards easyday.
In case of staff knowledge, store ambience and overall shopping experience Big Bazaar leads
the table. Therefore in order to get the leading edge we need to move ahead from easy day in
prices, quality, services, staff behaviour etc so that we can gain maximum market share.
80
Comparison between Big Bazaar and
Easy Day Convenience stores.
Easyday convenience store Mithapur
Details of research:
Sample size: 172
81
Data analysis
82
1. Age group of customers:-
Interpretation:
83
The case here is same as above, as the maximum percentage of chart is occupied by people who
are in age group 18-35.Therefore it again clarifies that mostly young people are going for shopping
to these retail stores.
2: Address of Respondent:
84
Interpretation:-
85
As we are talking of convenience stores, so they are receiving the 98% of customers from
Jalandhar.
1% each from rest of Punjab and out of Punjab these include the labourers, rented people which
are doing job in these localities.
86
Interpretation:
87
Average family size of respondents is 4-5 members.
Therefore keeping in view the average family size, organised retailers can provide offers etc and
can also keep inventory keeping in view the average size of the family.
4: Profession of customers:
88
Interpretation:
89
18% of pie consists of students.
Here again the percentage of Govt.Job doing people is just 9%, same like in Big Bazaar, Vishal,
Easyday. As i have already mentioned that this part of the market is concern for us, efforts should
be made to increase this percentage up to 30%.
5: Qualification of respondents:-
90
Interpretation:
91
Interpretation:
70% customer reported that they spend 2000 to 5000 rupees on grocery per month.
8% spend below 2000 on grocery per month, this includes customers which are 1 to 3 members in
their family as above it is mentioned that 14% customers have 3 members in their families.
92
This indicates the level of customer, that average family spends 3000 rupees on grocery per month.
93
94
Interpretation:
Near about 85% customers purchase monthly grocery from easy day convenience stores.
Only 6% purchase monthly grocery from Easy day and Big Bazaar.
95
Interpretation:
86 % responded that we know Big Bazaar has opened in Jalandhar, and only 13% did not.
96
This indicates that our promotional activities are reaching to masses and classes. We need to keep
it increasing so that 90 -95 % will get to know that Big Bazaaar has opened in Jalandhar.
97
Interpretation:
98
48% customers responded that we had not been to Big Bazaar. To attract this portion of map we
need hectic efforts, so that we can decrease this portion to lesser degree.
99
10: If yes, than how would you rate it on a scale of 5?
100
Interpretation:
While as 42% responded that it is good, and 3% mentioned that it is very good.
50% could not answer because they had not been to Big Bazaar.
Easy day is better Big Bazaar is better Both are same Not answered
Attributes 5
Prices 24% 5% 14% 57%
Product quality 12% 5% 27% 56%
Service quality 12% 12% 21% 55%
Staff behaviour 11% 5% 27% 57%
Staff knowledge 10% 6% 24% 60%
Store ambience 8% 19% 101 16% 57%
Ease of shopping 13% 5% 23% 59%
Overall shopping 12% 5% 26% 57%
experiences
Interpretation:
The results found here were same to earlier results, which we analysed in Vishal and easy day
market.
In this table we can see except Store ambience and service quality (which is not better than
easy day but is same) in all other major attributes of the table easy day is ahead of us. This table is
eye opener for us. We need to analyse the whole scenario and steps should be taken so that we can
overcome these precincts.
Annexure: (i)
Questionnaire:
Name:_______________________________
Gender: ______________________________
Age Group:
102
Phone No:_____________________
Profession :
Vehicles owned :
Qualification:
Today you came to our store (note the No of customers if not came alone)
Yes No
If No, how many times you visited Big Bazaar Jalandhar before?
___________________________________________________________________
Have you been to Easyday market in Jalandhar ( bada easyday at vassal mall near bus stand)?
Yes No
103
Price Big Bazaar Easy day
Was there any product which you wanted but was not available? If Yes please specify:
Any feedback that you would like to give us that will help us serve you better:
Thanks!!! Dated
Annexure: (ii)
Questionnaire:
Name:_______________________________
Age Group:
Phone No:_____________________
Profession:
104
Qualification:
________________________________________
Yes No.
Yes No
105
Staff behaviour Big Bazaar Vishal mega mart
Annexure: (iii)
Questionnaire:
(Out of store) Easy day Market and its convenience stores Jalandhar)
Name:_______________________________
Age Group:
Phone No:_____________________
Profession:
Qualification:
106
________________________________________
Yes No.
Yes No
107
Abbreviations
B Business
BB Big Bazaar
D Defence
E Easy day
G Govt.
HW House wife
H Hushiarpur
J Jalandhar
K Kupurthala/Kirana
M More
NW Nawasher
P Phagwara
RF Reliance fresh
S Student
108
Bibliography:-
www.bigbazaar.com
www.retailindustry.about.com
www.indianmba.com
www.proquest.com
Books referred:-
Business today
4Ps
Business india
109