Professional Documents
Culture Documents
NCRD’s
COLLEGE CODE-331
PROJECT REPORT ON
SUBMITTED BY
Prashant Shinde
T.Y.B.M.S. (SEM-V)
PROJECT GUIDE
Date:
Place:
Chapte
Chapter Scheme
r
Introduction & Evolution:
a) Introduction to the Project/Subject
2 Conceptual Framework
b) Data analysis
4 Research Findings
Page
Serial No. Chapters
No.
CHAPTER - I
i) Introduction
Retailing in India has witnessed a huge growth in the recent years. Retailing in India is
gradually inching its way towards becoming the next boom. The Indian retail industry is
largest among all the industries in India, According to the India Retail Report 2009
compiled by research group “Images F&R Research” rising economic growth will fuel
the growth of industry and it will touch Rs. 18,10,000 crores by 2010.
Big Bazaar is Indian personification of retail. It’s like an Indian bazaar or mandi or mela.
Big Bazaar, which has become a household name by now, has emerged as one of the
prominent organized retailing player in Indian arena. It has been successful in
establishing a chain of shopping malls in various cities of India, reflecting the look and
feel of Indian bazaars at their modern outlets targeting higher and upper middle class
customers with a strong distribution network.
Big Bazaar faces a formidable competition from the unorganized sector. Change in
consumer behavior, intensification of competition with the emergence of new players
has made it difficult to achieve the forecasted success. An insight into unorganized
retailing reveals that it enjoys higher margin due to many reasons including low
operational cost, and low taxations.
Being aware of the threats and opportunities present in the Indian retailing, the top
management at Big bazaar planned various strategic alternatives. Big Bazaar has huge
promotion budgets. The biggest idea behind all advertisements is to prompt people to
do bulk shopping. There are two types of promotional strategies of big bazaar. One is
the holistic advertisement which promotes the brand and creates awareness among
people. Other type of promotion is the particular store oriented promotion. There are
promotional efforts even inside the store
Big Bazaar ensures that no other kirana store / departmental store are offering
considerable discount compared to its own price. This helped it Big Bazaar in being the
"value for money" store. Product mix at Big Bazaar is compared to kirana store.
Objectives & Scope of the study
Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million
square feet of retail space in 73 cities and towns and 65 rural locations across India.
Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people
and is listed on the Indian stock exchanges. The company follows a multi-format retail
strategy that captures almost the entire consumption basket of Indian customers. In the
lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a
chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a
hypermarket format that combines the look, touch and feel of Indian bazaars with the
choice and convenience of modern retail.
In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion
of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata,
Hyderabad and Bangalore.
The group’s speciality retail formats include supermarket chain – Food Bazaar,
sportswear retailer - Planet Sports, electronics retailer - eZone, home improvement
chain - Home Town and rural retail chain, Aadhaar, among others. It also operates
popular shopping portal - www.futurebazaar.com.
Future Capital Holdings, the group’s financial arm provides investment advisory to
assets worth over $1 Billion that are being invested in consumer brands and companies,
real estate, hotels and logistics. It also operates a consumer finance arm with branches
in 150 locations.
Other group companies include, Future Generali, the group’s insurance venture in
partnership with Italy’s Generali Group, Future Brands, a brand development and IPR
company, Future Logistics, providing logistics and distribution solutions to group
companies and business partners and Future Media, a retail media initiative.
The group’s presence in Leisure & Entertainment segment is led through, Mumbai-
based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains,
Sports Bar and Bowling Co. and family entertainment centres, F123. Through its partner
company, Blue Foods the group operates around 100 restaurants and food courts
through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper
Chimney and Gelato.
Future Group’s joint venture partners include, US-based stationery products retailer,
Staples and Middle East-based Axiom Communications.
Future Group believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas, as espoused in the group’s core value of
‘Indianness.’ The group’s corporate credo is, ‘Rewrite rules, Retain values.’
One of the core values at Future Group is, ‘India ness’ and its corporate credo is
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 ensure that our positive attitude, sincerity, humility and united determination
shall be the driving force to make us successful.
Core Values
• Indianness: confidence in ourselves.
• Leadership: to be a leader, both in thought and business.
• Respect & Humility: to respect every individual and be humble in our conduct.
• Introspection: leading to purposeful thinking.
• Openness: to be open and receptive to new ideas, knowledge and information.
• Valuing and Nurturing Relationships: to build long term relationships.
• Simplicity & Positivity: Simplicity and positivity in our thought, business and
action.
• Adaptability: to be flexible and adaptable, to meet challenges.
• Flow: to respect and understand the universal laws of nature.
Organization Structure
Conceptual Framework
Sales promotion is one of the four aspects of
ORGANIZATION promotional mix. (The other three parts
STRUCTURE
of the promotional mix are advertising, personal selling, and publicity/public relations.)
Media and non-media marketing communication are employed for a pre-determined,
limited time to increase consumer demand, stimulate market demand or improve
product availability. Store Manager
Two perspectives may be found among marketers regarding sales promotion. First,
sales promotion is supplemental to advertising in that it binds the role of advertising with
personal selling. This view regards sales promotion as a minor player in the marketing
communication program. A second view regards sales promotion and advertising as
distinct functions with objectives and strategies very different from each other. Sales
promotion in this sense is equal to or even more important than advertising. Some
companies allocate as much as 75 percent of their advertising/promotion dollars to
sales promotion and just 25 percent to advertising. Finding the right balance is often a
difficult task. The main purpose of sales promotion is to spur action. Advertising sets up
the deal by developing a brand reputation and building market value. Sales promotion
helps close the deal by providing incentives that build market volume.
Sales promotions can motivate customers to select a particular brand, especially when
brands appear to be equal, and they can produce more immediate and measurable
results than advertising. However, too heavy a reliance on sales promotions results in
"deal-prone" consumers with little brand loyalty and too much price sensitivity. Sales
promotions can also force competitors to offer similar inducements, with sales and
profits suffering for everyone.
We have learnt that the main objective of sales promotion is to increase sales.
However, there are also some other objectives of sales promotion.
The objectives are:
To introduce new products: Have you ever heard about distribution of free
samples? Perhaps you know that many companies distribute free samples while
introducing new products. The consumers after using these free samples may
develop a taste for it and buy the products later for consumption.
To attract new customers and retain the existing ones: Sales promotion
measures help to attract or create new customers for the products. While moving in
the market, customers are generally attracted towards the product that offers
discount, gift, prize, etc on buying. These are some of the tools used to encourage
the customers to buy the goods. Thus, it helps to retain the existing customers, and
at the same time it also attracts some new customers to buy the product.
To maintain sales of seasonal products: There are some products like air
conditioner, fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion,
glycerin soap etc., which are used only in particular seasons. To maintain the sale of
these types of products normally the manufacturers and dealers give off-season
discount. For example, you can buy air conditioner in winter at a reduced price.
Similarly you may get discount on winter clothes during summer.
To meet the challenge of competition: Today’s business faces competition all the
time. New products frequently come to the market and at the same time
improvement also takes place. So sales promotion measures have become
essential to retain the market share of the seller or producer in the product-market.
Continuity programs, usually a retail tactic, allow consumers to get such things as
towels and dinnerware at discounts based on how much they buy.
Customer councils can tie customers closer to your company, if you provide
opportunities for meaningful education and networking at meetings.
Incentive programs can help build the loyalty of middlemen, such as dealers,
distributors, small retailers, and agents. Exciting merchandise awards or
unforgettable trips differentiate you from other suppliers.
Tie-ins can do the job if they offer customers long-term value, such as occurs in the
travel industry.
Build a database. To target their marketing more effectively, many companies build
databases of likely prospects.
Contests/sweepstakes help get people to reply to advertising and direct mail but
they're also useful as database builders if targeted at people most likely to fit your
customer profile. They are relatively inexpensive.
Rebates enable you to track purchasers, because they must provide their name and
address in order to receive their check. This is a costly but effective way to get the
names of customers.
Frequency marketing enables you to track the names of purchasers over time and
even track the quantity and nature of their purchases.
Contests/sweepstakes might get the attention of retailers, even big ones, if the
idea is big, backed by sufficient marketing, and exclusive to that retailer in its region.
Dealer incentives, such as merchandise and travel, work best with smaller retailers
and dealers, who view these awards as perquisites for them or their employees.
Large chains often will not let managers accept them.
Display contests reward retailers or dealers for putting up inventive or high profile
displays on behalf of a supplier. They work best with smaller retailers, because most
big chains will not participate.
Event marketing can help induce a retailer to support a product with displays, if it
seems likely to increase traffic and the store is guaranteed exclusivity.
MOTIVATE SALESPEOPLE
In sales, getting that face-to-face meeting is half the battle. The most compelling recipe
is having a useful product, targeting the right companies and individuals, developing a
communications plan that ensures each prospect will see the product and its key
benefits, and having the communications effort followed up by several phone calls by
knowledgeable salespeople.
Incentives are often the best way to open doors if properly targeted. By offering a
purchaser added value as a reward for making a purchase, you are most likely to
attract people who are interested in your product or service. Just make sure the
incentives are appropriate to your product and the audience.
MOTIVATE DEALERS
Getting the commitment of dealers, retailers, and distributors is a complex process that
involves building a close relationship with middlemen and partnering with them in a way
that helps improve their business. Warning: Under the Robinson-Patman Act (US) and
the Competition Act (Canada) any promotion offered to large retailers must be offered to
smaller stores on a "proportionately equal" basis.
Incentives work best with smaller companies whose principals enjoy getting special
perquisites based on the quantity of purchases or their willingness to participate in a
co-op marketing plan. Large companies, especially mass marketers, often will not
participate. However, some dealers and distributors that would not ordinarily
participate in incentive programs will do so if the programs are structured so that
their company benefits from improved employee performance
Training, while not a promotion tool, is so important when working with dealers and
distributors that it can't be overlooked. If the people who sell your products or
services don't understand them, you can't expect to get maximum sales productivity.
Keep in mind that many middlemen are leery of manufacturer training programs,
unless they see a direct benefit for their company.
Event marketing is a proven way to work with dealers, distributors, or retailers that
are looking for a way to increase store attendance or draw attention to their
marketing efforts.
Sampling is probably the most dramatic, effective and costly way to get your
product into the hands of new prospects. Target your giveaway effort to people most
likely to buy, or many of your costly samples will end up in the trash.
Sweepstakes/Contests can help attract attention, especially if they relate
thematically to the product.
Incentives spur product trial, but tread cautiously if you are considering a rebate,
coupon, or cash discount. Besides the fact that coupon redemption continues to fall
and generates less and less enthusiasm from retailers, launching a new product with
discounts can tar it with a low-price image that will undermine your long-term
positioning. An added-value offer, such as gift-with-purchase, can spur trial without
that risk but can be costly.
Displays at retail are critical to new product introductions, but chances are your
dealers or retailers will want special pricing, co-op allowances, or even slotting or
listing fees for putting them in the store. Some retailers will give special space to
new products, but they will expect your product to reach a specific threshold of sales
within a specific time, or out you go.
When you hear that you are about to get a new competitor, you might want to get your
dealers, distributors, and consumers to stock up on your product so that they have no
room in their "pantries" for the competitive product.
Incentives, whether cash, merchandise, or travel, are one of the most common
pantry-loading devices, especially if tied to large, multiple purchases. However,
make sure you do not clog your distribution channel with too much product, or it will
eventually be dumped by disgruntled distributors or retailers, perhaps to be replaced
by your new competitor's products.
Coupons are another means of spurring bulk purchases, as long as you have
retailers that will redeem them.
Rebates provide an alternative approach that does not involve the retailer in
administration.
Continuity plans can help you fend off a competitor, but only if you have a lot of
advance notice, since these programs, by definition, take time to launch and
implement.
Everyday low pricing continues to inch forward in the automotive and retail arena
and may emerge as a primary strategy once people begin to do a significant amount
of their shopping via the Internet.
Promotional products do not have a direct impact on loyalty either, but they
contribute by reminding the recipient of the sponsor's company.
INCREASE TRIAL
Whether or not your product or service is new, there are times when you want to
promote trial among a new target audience.
Sampling is the most expensive way to promote trial and obviously isn't feasible for
higher-priced products, but is one of the most effective tactics to secure new users
ENCOURAGE REFERRALS
One of the most overlooked sales opportunities is customer referrals. Businesspeople
say they get most of their business by word-of-mouth, yet they do little to promote it.
Incentives and gifts often are used to induce people to recommend a product or
service to a friend. You can easily measure the number of referrals by the quantity of
redemptions you get.
Contests/Sweepstakes can be used, but they probably won't generate as many
referrals as a direct incentive, because some people will assume they can't win.
PROMOTE SELL-THROUGH
Once you have successfully sold your products into the appropriate distribution
channels, you want to make sure they sell through to the consumer or end user.
Coupons have declined in favor due to low redemption rates and administrative
hassles but remain a viable option in packaged goods.
Rebates provide the same sort of savings to shoppers as coupons without involving
the retailer. You can put the offer right on the package and let consumers redeem
the rebate at your fulfillment house.
The best way to attract people, of course, is to offer the right product to the right
audience at the right price and make sure everybody who should know about it does.
Sometimes, it is not so simple, and sponsors need a boost.
Incentives, such as gifts at the gate, can have a dramatic impact on attendance if
you choose an appropriate item-and can afford the cost. Look what happens at the
ballpark on Bat Day.
Contests/sweepstakes can lure those who are wavering, but you have to offer
something big. And, remember, it's illegal to require people to make a purchase in
order to enter a contest or sweepstakes.
Contest/Sweepstakes can induce people to open their mail and respond, but they
do not guarantee you will attract actual prospects. Select your list well, or you will get
lots of entries but few serious prospects.
Promotional products included in direct mail packages increase the cost but also
improve the chances that they'll get opened. Again, target your mailing carefully.
Gift-with-purchase offers are more targeted, because they appeal only to those
most likely to buy.
(i) Free samples: You might have received free samples of shampoo, washing
powder, coffee powder, etc. while purchasing various items from the market.
Sometimes these free samples are also distributed by the shopkeeper even
without purchasing any item from his shop. These are distributed to attract
consumers to try out a new product and thereby create new customers. Some
businessmen distribute samples among selected persons in order to popularize
the product. For example, in the case of medicine free samples are distributed
among physicians, in the case of textbooks, specimen copies are distributed
among teachers.
(ii) Premium or Bonus offer: A milk shaker along with Nescafe, mug with
Bournvita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of one
kg. are the examples of premium or bonus given free with the purchase of a
product. They are effective in inducing consumers to buy a particular product.
This is also useful for encouraging and rewarding existing customers.
(iii) Exchange schemes: It refers to offering exchange of old product for a new
product at a price less than the original price of the product. This is useful for
drawing attention to product improvement. ‘Bring your old mixer-cum-juicer and
exchange it for a new one just by paying Rs.500’ or ‘exchange your black and
white television with a colour television’ are various popular examples of
exchange scheme.
(iv) Price-off offer: Under this offer, products are sold at a price lower than the
original price. ‘Rs. 2 off on purchase of a lifebouy soap, Rs. 15 off on a pack of
250 grams of Taj Mahal tea, Rs. 1000 off on cooler’ etc. are some of the common
schemes. This type of scheme is designed to boost up sales in off-season and
sometimes while introducing a new product in the market.
(v) Coupons: Sometimes, coupons are issued by manufacturers either in the packet
of a product or through an advertisement printed in the newspaper or magazine
or through mail. These coupons can be presented to the retailer while buying the
product. The holder of the coupon gets the product at a discount. For example,
you might have come across coupons like, ‘show this and get Rs. 15 off on
purchase of 5 kg. of Annapurna Atta’. The reduced price under this scheme
attracts the attention of the prospective customers towards new or improved
products.
(vi) Fairs and Exhibitions: Fairs and exhibitions may be organised at local, regional,
national or international level to introduce new products, demonstrate the
products and to explain special features and usefulness of the products. Goods
are displayed and demonstrated and their sale is also conducted at a reasonable
discount. ‘International Trade Fair’ in New Delhi at Pragati Maidan, which is held
from 14th to 27th November every year, is a well known example of Fairs and
Exhibitions as a tool of sales promotion.
(vii) Trading stamps: In case of some specific products trading stamps are
distributed among the customers according to the value of their purchase. The
customers are required to collect these stamps of sufficient value within a
particular period in order to avail of some benefits. This tool induces customers to
buy that product more frequently to collect the stamps of required value.
(viii) Scratch and win offer: To induce the customer to buy a particular product
‘scratch and win’ scheme is also offered. Under this scheme a customer scratch
a specific marked area on the package of the product and gets the benefit
according to the message written there. In this way customers may get some
item free as mentioned on the marked area or may avail of price-off, or
sometimes visit different places on special tour arranged by the manufacturers.
(ix) Money Back offer: Under this scheme customers are given assurance that full
value of the product will be returned to them if they are not satisfied after using
the product. This creates confidence among the customers with regard to the
quality of the product. This technique is particularly useful while introducing new
products in the market.
20 Tips on Building More Effective Promotions
- Conduct a thorough review of the situation. This will ensure that the key business
needs are addressed
- Written objectives provide clear direction and identify priorities. They also ensure your
goals are realistic. You can review the results against the objectives to learn important
lessons for the future.
specialists.
- You will get better work from people who know you, your company, and your products.
The specialists will become more aggressive and insightful in communicating business
opportunities and developing creative ideas.
promotional vehicles.
- You can now execute the consumer promotion that you did not think you could. You
could obtain increased presence of your promotion with your consumer and the trade.
All this at a fraction of the cost of doing it alone.
- Research facts, consumer behavior facts, marketing facts all spark ideas. Quality of
information has a direct impact on quality of ideas. Effective promotions are consumer
insight driven.
target.
- Promotions are truly driven by brand champions. The managers who believe in the
importance of the promotion will communicate a stronger commitment to all other
departments, especially sales. Execution will be greatly enhanced.
- Consumer promotion has a critical role in: 1) launching new products; 2) introducing
contra-seasonal and holiday campaigns; 3) preempting competitive action and 4)
merchandising at retail. Promotional efforts must work hand-in-hand with all other
marketing programs.
- The consumer is bored of consumer promotions all looking the same. The trade is
looking for innovation. New ideas can break through. The trick is to make them both
unique and relevant to your customers.
11. Insist that both senior marketing and sales management take a personal
interest in the consumer promotions.
- The involvement of senior marketing and sales management will insure total
organizational commitment to the promotion, and will enhance the probability of
success.
12. Make your sales department a full partner in planning and executing your
promotion.
- In most promotions you will increase your impact with the trade by providing your sales
force with effective tools to generate more and larger displays while potentially
stretching their co-op dollars.
- This will truly work if you work side by side with your sales force in planning and
executing the promotion.
- Make you customers buy your product. Achieve multiple purchases. Have your
customers try new uses with your product.
- Every brand and product has associated with it, personality and imagery. A truly strong
promotion will note only be consistent, it will actually reinforce and build this personality
and imagery.
- Time is necessary to allow the trade and your sales department to plan for your
promotion. You will also lower your consumer promotion budgets.
- In speaking to key individuals working within the different trade channels in Canada,
the leaders know that consumer promotions can deliver volume increases, consistent
with their own business objectives. They want to merchandise, so give them the tools to
do a good job for you.
- Learn from each promotion, what works and what does not work. A formal systematic
evaluation will allow you to continually improve promotional planning.
- See it with your own eyes. Assess the merchandising. Speak to a store manager for
his thoughts. Get a gut feeling of consumer response. Be close to your customers. Let
this visit help in your evaluation.
- Promotions can affect your business in a truly creative and positive way. They can be
fun and exciting. Over a short-term period, consumer promotions can be more effective
in delivering volume than advertising.
Importance of Sales Promotion
The business world today is a world of competition. A business cannot survive if its
products do not sell in the market. Thus, all marketing activities are undertaken to
increase sales. Producers may spend a lot on advertising and personal selling. Still the
product may not sell. So incentives need to be offered to attract customers to buy the
product. Thus, sales promotion is important to increase the sale of any product. Let us
discuss the importance of sales promotion from the point of view of manufacturers and
consumers.
There are five types of sales promotion strategies: Push, Pull, or a combination of the
two are main strategies used in organization:
Push Strategy
A push strategy occurs when sellers of a product are offered incentives to promote the
product or purchase additional quantities. For example, a ketchup manufacturer may
offer a grocery retailer a discount or cases of free products if the grocer agrees to
advertise the product in its weekly flier. The grocer may also agree to allocate display
space in the store. A push strategy involves convincing trade intermediary channel
members to "push" the product through the distribution channels to the ultimate
consumer via promotions and personal selling efforts. The company promotes the
product through a reseller who in turn promotes it to yet another reseller or the final
consumer. Trade-promotion objectives are to persuade retailers or wholesalers to carry
a brand, give a brand shelf space, promote a brand in advertising, and/or push a brand
to final consumers. Typical tactics employed in push strategy are: allowances, buy-back
guarantees, free trials, contests, specialty advertising items, discounts, displays, and
premiums.
Pull Strategy
With a pull strategy, the target is the consumer as opposed to the seller. An example of
a pull strategy is when a company develops an advertising campaign to launch a new
product. This can create consumer demand for the product, which will force a retail
outlet to stock it. Other methods include placing coupons in the newspaper or mailing
free samples to households. A pull strategy attempts to get consumers to "pull" the
product from the manufacturer through the marketing channel. The company focuses its
marketing communications efforts on consumers in the hope that it stimulates interest
and demand for the product at the end-user level. This strategy is often employed if
distributors are reluctant to carry a product because it gets as many consumers as
possible to go to retail outlets and request the product, thus pulling it through the
channel. Consumer-promotion objectives are to entice consumers to try a new product,
lure customers away from competitors’ products, get consumers to "load up" on a
mature product, hold & reward loyal customers, and build consumer relationships.
Typical tactics employed in pull strategy are: samples, coupons, cash refunds and
rebates, premiums, advertising specialties, loyalty programs/patronage rewards,
contests, sweepstakes, games, and point-of-purchase (POP) displays.
Combination Strategy
A combination strategy occurs when the push and pull methods are used
simultaneously for maximum promotional effect. In addition to providing incentives for a
seller to promote a product, a manufacturer will also launch an advertising campaign to
entice consumers to purchase the product . Car dealers often provide a good example of
a combination strategy. If you pay attention to car dealers' advertising, you will often
hear them speak of cash-back offers and dealer incentives.
Brand Reinforcement
A brand reinforcement strategy is used as a way to build customer loyalty, which leads
to repeat sales. One common brand reinforcement strategy is the offering of a club
membership where members can get discounts for purchases, as well as perks like free
merchandise or being eligible for special sales that are not available to the general
public.
Building Demand
Sales promotion strategy can involve increasing or building demand for a product. By
advertising a special limited offer, such as offering 20 percent off the purchase price if
you buy before a certain date, it can create a sense of urgency in consumers, who then
give the product a try. Another way to build demand is to use advertising to show how
your product fills a need in a way that your competition's product does not.
6 STEPS TO STRATEGIC PROMOTION PLANNING
The Indian consumer could well be crowned King with all economic indicators in the
right place. Queuing up for the coronation ceremony are a multitude of global
companies that are looking at India as the next consumer market powerhouse. And it
seems to be the retail sector that will give the desi consumer royal status.
In this study I will try to find out the present scenario of retail market in India. This
project will give focus on the global scene to retail industry and what will drive the
growth of industry in the future.
Retailing is the final step in the distribution of merchandise, the last link in supply chain
– connecting the bulk procedures of commodities to the final consumers.
Retailing in India is thoroughly unorganized. There is no supply chain management
perspective. According to a survey b y AT Kearney, an overwhelming proportion of the
Rs. 400,000 crore retail market is UNORGANISED. In fact, only a Rs. 20,000 crore
segment of the market is organized.
From a size of only Rs.20,000 crore, the ORGANISED retail industry will grow to Rs.
160,000 crore by 2005. The TOTAL retail market, however, as indicated above will grow
20 per cent annually from Rs. 400,000 crore in 2000 to Rs. 800,000 crore by 2005
A study by McKinsey points out that India's market for consumer goods can reach a w
$450 billion by 2011 - making it one of the five largest in the world. Further, KPMG in a
recent report titled `Consumer Markets in India - the next big thing?' has said: "India
represents an economic opportunity on a massive scale, both as a global base and a
domestic market." The report, however, finds that the next leap in the growth of the
consumer market will be spearheaded by the changing dynamics of the retail sector.
"Companies expect that the next cycle of change in Indian consumer markets will be the
arrival of foreign players in consumer retailing. Although FDI remains highly restricted in
retailing, most companies believe that will not be for long," says Deepankar Sanwalka,
Executive Director and Head - Consumer Markets, KPMG India.
FDI in retail has once again begun to appear imminent following Prime Minister
Manmohan Singh's recent interview to McKinsey, in which he expressed confidence
that he would be able to get the Left parties on board on the matter. KPMG is in fact
going ahead with its plans to conduct a series of five road shows in the US and a few
countries in Europe to hold discussions about the opportunities in India's consumer
markets, especially in retail. And the numbers do lend credence to the enthusiasm.
The Economist Intelligence Unit (EIU) country briefing on India, 2005, estimates the
retail market in India will grow from $394 billion in 2005 to $608.9 billion in 2009. In fact,
KPMG finds that the organized retail sector in India is expected to grow at a higher rate
than GDP growth in the next five years, driven by changing lifestyles, strong income
growth and favorable demographic patterns. According to EIU, India currently has more
than five million retails outlets, out of which 96 per cent are smaller than 500 sq. ft. But
this scenario is changing fast. The structure of retailing is developing rapidly with malls
becoming increasingly common in large cities, and development plans being projected
at 150 new shopping malls by 2008.
Over the last five years, a number of large business groups such as Tata’s, RPG,
Raheja’s and Piramal’s has set up stores/malls and built businesses within retail.
Thesem include the Rs1.9bn Food World - a leading supermarket chain set up by RPG;
the Raheja’s Rs1.8bn Shopper’s Stop - a multi-brand departmental outlet and the
Crossroads Mall set up by the Piramal’s. While many of these initiatives were initially
driven by the need to use existing real estate, they are beginning to assume the
contours of a serious business today.
Fuel retailers, notably BPCL and HPCL are also expanding their presence from fuel
retail to grocery and convenience stores. Suitability of location, optimal utilization of real
estate, diversifying business to reduce reliance on the commodity nature of fuel retail
business and improve margins are the key factors that has lead fuel majors to enter into
the retailing.
Also, existing family owned businesses are expanding their businesses. The more
successful of them are the Nilgiris - a Bangalore base food retailer, Viveks - a 40-year
old Chennai based chain selling consumer durables and Narula’s - the food chain in
North India.
Interestingly, manufacturers are also looking for forward integration and are building
chains around brands. Brands in apparel, footwear and durables have driven the growth
of specialty chains and upgraded existing multi-brand outlet.
Theme for a mall
Although the retail sector in India highly fragmented and consists predominantly of
small, independent, owner-managed shops, it happens to be the country's second
largest employer after agriculture. The country is currently witnessing a boom in
retailing, thanks mainly on account of an increase in the disposable incomes of middle
and upper-middle class households.
More and more corporate houses, including large real estate companies, are now
entering the retail business directly or indirectly. One sign of the modernization of Indian
retailing is the rapid growth in the number of speciality malls and theme malls. The
Piramals, Tatas, Rahejas, ITC, S. Kumar's, RPG Enterprises, Aerens, Omaxe and
mega retailers like Crosswords, Shopper's Stop and Pantaloon have taken the leading
organized retailing.
Though organized retailing is still at a nascent stage - accounting for only around two
per cent of the $180 billion retail market in India - it is likely to touch 10 per cent by the
end of this decade. Four product categories have led the organized retailing wave:
foods, apparel, lifestyle products, consumer durables and electronics. In recent times,
several theme malls such as Gold Souk (jewellery malls), Wedding Mall, Electronic Mall,
Auto Mall, etc catering to specific needs and occasions have been completed or
announced.
Many top developers are now toying with the idea of developing speciality malls.
Speciality malls are already a success in the West, whereas the concept is in its infancy
in India. One could venture so far as to say specialty and theme based retailing will
drive the growth of organized retailing in India.
ORGAINSED RETAILING
Organized retailing got a leg up during 2004 with the opening of new format stores,
rapid growth of existing players, start-up of new-generation shopping malls, the
Government's intention of allowing a certain level of foreign direct investment in retail
and the formation of a retailers' association. With consumer sentiment positive during
most of 2004, it led to substantial spending across a number of categories such as
consumer durables, clothing and lifestyle, automobiles and telecom products. At the
beginning of this decade, organised retailing accounted for a mere $2.9 billion in India.
This is only 1.25 per cent of the estimated total retail market. This share has already
grown to 2 per cent.Growth projections for retail business vary widely. Some studies
estimate that by 2007, the share of organised retail in the retail pie will jump three times
to reach 5-6 per cent.
Retail in India largest industry accounting for over 10% of the country GDP and around
8% of the employment. Retail industry in India is at the cross road. It has emerged as
one of the most dynamic and fast paced industries with several player entering the
market. The future is promising the market is growing government policies are
becoming more favorable and emerging technology and facilitating operations.
Some key facts retail in India largest industry accounting for over 10% of the country
GDP and around 8% of the employment.
The market size of Indian retail industry is about US $ 312 billion.
Indian consumption cosmos
During past decades private final consumption expenditure has been the key driver
economic growth in India.
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The headquartered in Mumbai the company operates over 12 million square feet of
retail space as over one thousand stores across 71 cities in India and employees over
35,000 people.
The companies leading formats include Pantaloons a chain of fashion outlet, Big
bazaar, uniquely Indian hypermarket chain, food Bazaar a supermarket chain blends he
look, touch and feel of Indian Bazaars with aspects of modern retail like choice
convenience and quality and control a chain of seamless destination malls.
LAYOUT INDEX
1. HELP DESK
2. KIDS ACCESSORIES
3. JACKETS
4. BABA SUITS
5. LADIES TOPS
6. TRIAL ROOM
DESCRIPTION)
9. WINTER WEAR
23. LUGGAGE
24. FOOTWEAR
25. SPORTS
DESCRIPTION
Help Desk – As you can see from the layout, the Help Desk is located in a place where
everyone has their first sight that is in front of the entrance. This shows that when a
person enters in to big bazaar it can get all information about the stores of big bazaar
from the person sitting in the help desk. Help Desk uses paging service as a tool for the
convenience of its employees and customers.
Kids Selection – The kids section is located just at the left corner of the entrance of big
bazaar. In the kid’s section kid’s accessories like diapers, trolleys, suckers, water bottles
are available in one part. Kid’s jackets and baba suits are available in another part. Kids
casual wear (jeans and shorts) are placed in one part of it and infant shirts & t-shirts are
also placed in another part. In this section the pillars are used for displaying information
like size chart and section description. The apparels are available at a price of Rs59
onwards.
Men’s Selection – Next to it is the men’s section that is in the center. It is divided in to
five parts. At one part men formal shirts are available. In other parts men trousers, suits
and blazers, fabrics and ethnics are available respectively. Here the price ranges from a
minimum of Rs99 to Rs899.
Ladies Section – Next to it is the ladies section that is in the extreme right side. The ladies
section is segregated in to seven parts. Ladies section starts from ladies ethnics, ladies western
wear, ladies formals (office wear), ladies accessories – lingerie’s, ladies perfumeries, and ladies
cosmetics respectively. Here the price of the apparel ranges from Rs99 to Rs1000 approx.
Promotional scheme – With an add on to the above products there are various other
products which are available with a promotional scheme. The various products under this
scheme includes girl t-shirts, infant winter wear etc.
Non-Promotional scheme – There are various other products available without any
promotional scheme which includes jeans, infant baba suits, infant t-shirts, kids night wear, kids
salwar suits etc.
Sports Store – At the extreme corner there is a sports store where various kinds of sport
items are available.
Food Bazaar – The food bazaar is in the 1st floor of the building. Various kinds of food
items, fruits and vegetables are available there. Sitting arrangements are well made so that
people can sit and take tea, coffee or snacks or any other food item and can relax.
Cash Counter – The cash counter is located just near the exit
BOARD OF DIRECTORS
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief
Gopikishan Biyani, is a commerce graduate and has more than twenty years of experience in
Rakesh Biyani, is a commerce graduate and has been actively involved in category
management; retail stores operations, IT and exports. He has been instrumental in the
Ved Prakash Arya, is an engineer by training and is a graduate of the Indian Institute of
Management, Ahmedabad. Prior to joining Pantaloon Retail, he was the CEO of Globus.
Mr. Shailesh Haribhakti, Independent Director
Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a Certified Internal
Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered Accountants and
past president of Indian merchant Chambers. He is on the Board of several Public Limited
Companies, including Indian Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc.
S. Doreswamy, is a former Chairman and Managing Director of Central Bank of India and
serves on the board of DSP Merrill Lynch Trustee Co and Ceat Limited
D. O. Koshy, holds a doctorate from IIT, Delhi and is the Director of National Institute of Design
(NID), Ahmedabad. He has over 24 years of rich experience in the textiles and garment industry
and was instrumental in the setting up of NIFT centres in Delhi, Chennai and Bangalore. He is a
Anju Poddar, holds a Bachelor of Engineering from University of Oklahoma and is a Director,
NIFT, Hyderabad chapter. She also serves on the board of Maharishi Commerce Ltd and
boards of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing
Ltd,
Anil Harish, is the partner of DM Harish & Co. Associates & Solicitors and an LLM from
University of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bank
Major Milestones
1992 Initial public offer (IPO) was made in the month of May.
1994 The Pantaloon Shoppe – exclusive menswear store in franchisee format launched
across the nation. The company starts the distribution of branded garments through
2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain
launched.
2006 Future Capital Holdings, the company’s financial arm launches real estate funds
Kshitij and Horizon and private equity fund In division. Plans forays into insurance and
consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe
and futurebazaar.com are launched across the nation. Group enters into joint venture
2008- future group holding becomes the second group company to make a successful
The low-intensity entry of the diversified Mahindra Group into retail is unique because it
plans to focus on lifestyle products. The Mahindra group is the fourth large Indian business
group to enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group, and
Bharti Enterprises Ltd. The other three groups are focusing either on perishables and groceries,
RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s Super, Daily
& Fresh
Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station,
Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand
stores.
Big bazaar is the company’s foray into the world of hypermarket discount stores, the
first of its kind in India. Price and the wide array of products are the USP’s in Big
Bazaar. Close to two lakh products are available under one roof at prices lower by 2 to
60 per cent over the corresponding market prices. The high quality of service, good
ambience, implicit guarantees and continuous discount programmes have helped in
changing the face of the Indian retailing industry. A leading foreign broking house
compared the rush at Big Bazaar to that of a local suburban train.
Food Bazaar’s core concept is to create a blend of a typical Indian Bazaar and
International supermarket atmosphere with the objective of giving the customer all the
advantages of Quality, Range and Price associated with large format stores and also
the comfort to See, Touch and Feel the products. The company has recently launched
an aggressive private label programme with its own brands of tea, salt, spices, pulses,
jams, ketchups etc. With unbeatable prices and vast variety (there are 42 varieties of
rice on sale), Food Bazaar has proved to be a hit with customers all over the country .
Big Bazaar
Big Bazaar is a chain of shopping malls in India, owned by the Pantaloon Group and
which work on Wal-Mart type economies of scale. They have had considerable success
in many Indian cities and small towns. Big Bazaar provides quality items but at an
affordable price. It is a very innovative idea and this hypermarket has almost anything
under one roof….Apparel, Footwear, Toys, Household Appliances and more. The
ambience and customer care adds on to the shopping experience.
Is Se Sasta Aur Accha Kahin Nahin !!
If you deal in the categories mentioned there's a big deal of success for you.
Food Bazaar’s core concept is to create a blend of a typical Indian Bazaar and International
supermarket atmosphere with the objective of giving the customer all the advantages of Quality,
Range and Price associated with large format stores and also the comfort to See, Touch and
Feel the products.
'FOOD BAZAAR' a division of Pantaloon Retail India Ltd is a chain of large supermarkets with a
difference. It was flagged off in April'02.With store sizes ranging from 8,000 sq ft to 15,000 sq. ft.
in Mumbai (two stores), Kolkata, Bangalore & Hyderabad, it is opening more stores at Gurgaon
(Delhi), New Bombay & Nagpur. It currently caters to over 1.2 million customers every day
across 4 outlets in India and is soon set to expand and double this figure across 8 outlets all
over the country by June 2003.
Food Bazaar offers the Indian consumer the best of Western and Indian values. The western
values of convenience, cleanliness and hygiene are offered through pre packed commodities
and the Indian values of "See- Touch- Feel" are offered through the “Mandi” atmosphere
created by displaying staples out in the open, all at very economical and affordable prices
without any compromise on quality. This satisfies the Indian consumer and comforts her before
making her final buying decision. At other super markets, the consumer is deprived of this
factor.
Truly the Indian consumer now agrees with Food Bazaar: "Ab Ghar Chalaana kitna Aasaan”.
This positioning platform of Food Bazaar is evident from the higher discounts and the wholesale
price-points which is below MRP.
Food Bazaar represents the company’s entry into food retail and is targeted across all
classes of population. Food Bazaar replicates a local ‘mandi’, to provide the much
important ‘touch & feel’ factor which Indian housewives are used to in the local bazaar.
Food Bazaar has over 50,000 stock keeping units which cover grocery, FMCG
products, milk products, juices, tea, sugar, pulses, masalas, rice wheat etc, besides
fruits and vegetables. All products are sold below MRP and discounts range between
2% to 20%. Fruits and vegetables are sold at prices comparable to wholesale prices.
Sales Promotion Activities by Big Bazaar
There different sales promotional activities done by Big Bazaar. They create different
scheme on different occasion which attract customer and is beneficial for them highly,
Following are the different scheme of Big Bazaar create for sales promotion:
School Jao khushi khushi:
o Discount on all requirement like school bags, Lunch box, Water bottles.
o Win pencil case with every purchase worth Rs.500 & above.
o Send us your experience of the ‘Best day you had in school’ – the most
humorous one will gate free shopping trip worth Rs.1000/-
o Lucky Draw- Shop for Rs. 1000 & above, drop in your kids name into our drop
box – 10 lucky kids will get 30% off on an NIIT course.
o Shop for Rs. 500 & above, drop in your kids painting the best painting will get
sponsors for an art course.
Khushi ki Barsat:
o “Discount ki Barish” – various discounts across the board.
o Lucky Draw- Shop for Rs. 1000 & above, drop in your name into our drop box &
you could be one of the 3 families to enjoy rain in Goa.
o Purchase goods worth Rs 500 – complete the slogan – I love the rain in Mumbai
bcoz… & win you own customized umbrella – get your friends and family
photograph screen printed on it.
o Steal a deal:
o A friend indeed – make any purchase at Big Bazaar on friendship Day & Drop in
your best friends name – he could win the lucky draw – A Car!!
o Special treatment for you & your friend – make purchases worth Rs 500 & get a
free message, tattoos, horoscope etc.
Azadi ke khushi mein:
o Discount on various categories on that weekend.
o Vote for your favorite freedom fighter – if your choice matches ours – get a
coupon that entitles you to higher discount.
o Walk in wearing colors of tri-colors and win surprise gift.
o Fill in slogan which say why you love India so much – the best entry wins a
chance gets their entire shopping bill refunded.
Raksha Bandhan:
o Demarcate separate areas for gifts ( Women’s categories)
Diwali Hungama:
o Open for longer duration.
o Tie up with mithaiwala – for all purchase worth Rs 1000 & above get a 40%
discount on all the mithai purchased.
o Purchase goods worth Rs 500 & above, send us the recipe of your secrete mithai
& the best judge recipe gets a complete set of Sanjeev Kappor’s cook books.
o Diwali mano abroad – win a lucky draw on purchase worth Rs 1000.
o Your special Christmas gifts from Big Bazaar – on purchase worth Rs 1000 &
above get a special surprise gift.
o Christmas Card Design Contest : An annual “ design next year’s Christmas card
for us “contest for children. The winner gets a gift voucher worth Rs 500.
o A Christmas party at Big Bazaar
o Play game like dart etc – where in the figure you touch is equal to the
discount that you get on your bill amount.
o Elves giving out balloons etc to little kids
Banto Khushiyan:
o Combi deals:
o Buy groceries and provisions worth Rs 1500 and you get 30% off on your
kids clothes (minimum purchase of Rs 1000).
o Buy clothes for your kids for Rs. 500 and you get a Kurta & Duppata of
your choice for 20% less.
o Family Value:
o Women + Kid deal (e.g. Buy SKD worth Rs. 1200/- you get a 50%
discount on kids clothes)
o Women + Man deal (e.g. Buy SKD worth Rs. 1200/- you get a 50%
discount on men’s appareals)
o Happy Hour:
o 1 hour a day – where all the offers / discounts gets hiked up e.g. Buy x &
get Rs 10 off would become Rs 15 off.