RESEARCH PROJECT REPORT

ON

Analysis of Promotional Strategy of Big Bazaar and

Spencer

Under the guidance of

Dr. Natendra Saxena

(Assistant Professor, MBA)

Submitted in the partial fulfillment for the award of Master of Business

Administration Degree from Dr. APJ Abdul Kalam Technical University,

Lucknow, Batch: 2017-19

Submitted By

Kritika Khati

Roll No. 1706170017

SHERWOOD COLLEGE OF MANAGEMENT, LUCKNOW

(2017 – 2019)
INDUSTRY OVERVIEW

Retail concept is old in India. World’s first department store started in rome. Today’s

kirana stores are based on Manusmriti & Kautilya’s Arthshartra, Haats, Melas, Mandis

& door to door salesmen are traditional Indian retail. Vishal Mega Mart is a retail sector,

which is providing good quality of products in very reasonable price than its competitor.

Retailing and wholesaling consist of many organizations designed to bring goods and

services from the point of production to the point of use.

Retailing includes all the activities involved in selling good or service directly to final

consumers for their personal, non-business use. Retailers can be classified in terms of

store retailers, non-tore retailing, and retail organizations.

Store retailers include many types, such a specialty stores, department

stores, supermarkets, convenience stores, superstores, combination stores,

hypermarkets, discount stores, warehouse stores, and catalog showrooms. These store

forms have had different longevities and are at different stages of the retail life cycle.

Depending on the wheel-of-retailing, some will go out of existence because they cannot

compete on a quality , service, or price basis.

Non-store retailing is growing more rapidly than store retailing. It includes direct selling

(door-to-door,party selling), direct marketing, automatic vending, and buying services.

Much of retailing in the hand of the large retail organizations such as corporate chains,

voluntary chain and retailer cooperatives, consumer cooperative, franchise

organizations and merchandising conglomerates. More retail chains are now

sponsoring diversified retailing lines and forms instead of sticking to one form such as

the department store.

Retailers, like manufacturers, must prepare marketing plans that include decisions on

target markets, product assortment and services, store atmosphere, pricing, promotion

and place. Retailers are showing strong signs of improving their professional

management and their productivity in the face of such trends as shortening retail life

cycles, new retail forms, increasing intertype competition, and polarity of retailing, new

retail technologies and many others.

Wholesaling include all the activities involved in selling goods or services to those who

are buying for the purpose of resale or for business use. Wholesalers help

manufacturers deliver their product efficiently to the many retailers and industrial users

across the nation. Wholesalers perform many function, including selling and promoting,

buying and assortment-building, bulk- breaking, warehousing, transporting, financing,

risk bearing, supplying market information, and providing management services and

counseling. Wholesalers too must make decisions on their target market, product

assortment and services, pricing, promotion, and place. Wholesalers who fail

to carry adequate assortments and inventory and provide satisfactory services are

likely to be bypassed by manufacturers. Progressive wholesalers, on the other hand,

are adapting marketing concepts and streamlining their costs of doing business.

Retail means selling goods and services in small quantities directly to

customers. Retailing consists of all activities involved in marketing of goods and

services directly to consumers for their personnel family and household use.
Retailers, like manufacturers, must prepare marketing plans that include decisions on

target markets, product assortment and services, store atmosphere, pricing, promotion

and place. Retailers are showing strong signs of improving their professional

management and their productivity in the face of such trends as shortening retail life

cycles, new retail forms, increasing intertype competition, and polarity of retailing, new

retail technologies and many others. prepare marketing plans that include decisions on

target markets, product assortment and services, store atmosphere, pricing, promotion

and place. Retailers are showing strong signs of improving their professional

management and their productivity in the face of such trends as shortening retail life

cycles, new retail forms, increasing intertype competition, and polarity of retailing, new

retail technologies and many others. Wholesaling include all the activities involved in

selling goods or services to those who are buying for the purpose of resale or for

business use. Wholesalers help manufacturers deliver their product efficiently to the

many retailers and industrial users across the nation. Wholesalers perform many

function, including selling and promoting, buying and assortment-building, bulk-

breaking, warehousing, transporting, financing, risk bearing, supplying market

information, and providing management services and counseling. Wholesaler fall into

four groups. Merchant wholesalers take possession of the goods and include full-

service wholesalers (wholesale merchants, industrial distributors) and limited-

service wholesalers (cash and carry wholesalers, truck wholesalers, drop

shippers, rack jobbers, producers cooperatives and mail-order wholesalers).

Agents and brokers do not take possession of the goods but are paid a commission for

facilitating buying and selling. Manufacturers’ and retailers’ branches and offices are
wholesaling operations conducted by non-wholesalers to bypass the wholesalers.

Miscellaneous wholesalers include agricultural assemblers, petroleum bulk plants

and terminals, and auction companies. Wholesalers too must make decisions on their

target market, product assortment and services, pricing, promotion, and place.

Wholesalers who fail to carry adequate assortments and inventory and provide

satisfactory services are likely to be bypassed by manufacturers. Progressive

wholesalers, on the other hand, are adapting marketing concepts and streamlining their

costs of doing business. Retail means selling goods and services in small

quantities directly to customers. Retailing consists of all activities involved in

marketing of goods and services directly to consumers for their personnel family and

household use. The Indian retailing industry is becoming intensely competitive,

as more and more payers are buying for the same set of customers. The

major retail player are Pantaloons Retail, Shoppers Stop, Reliance, Easy day, More

etc. Retailing is one of the biggest sectors and it is witnessing revolution in India. The

new entrant in retailing in India signifies the be target markets, product assortment and

services, store atmosphere, pricing, promotion and place. Retailers are showing

strong signs of improving their professional management and their productivity in

the face of such trends as shortening retail life cycles, new retail forms, increasing

intertype competition, and polarity of retailing, new retail technologies and many others.

Wholesaling include all the activities involved in selling goods or services to those who

are buying for the purpose of resale or for business use. Wholesalers

help manufacturers deliver their product efficiently to the many retailers and industrial

users across the nation. Wholesalers perform many function, including selling and
promoting, buying and assortment-building, bulk- breaking, warehousing, transporting,

financing, risk bearing, supplying market information, and providing management

services and counseling. Wholesaler fall into four groups. Agents and brokers do not

take possession of the goods but are paid a commission for facilitating buying and

selling. Manufacturers’ and retailers’ branches and offices are wholesaling operations

conducted by non-wholesalers to bypass the wholesalers. Miscellaneous wholesalers

include agricultural assemblers, petroleum bulk plants and terminals, and auction

companies. Wholesalers too must make decisions on their target market, product

assortment and services, pricing, promotion, and place. Wholesalers who fail

to carry adequate assortments and inventory and provide satisfactory services are

likely to be by passed by manufacturers. Progressive wholesalers, on the other hand,

are adapting marketing concepts and streamlining their costs of doing business. Retail

means selling goods and services in small quantities directly to customers.

Retailing consists of all activities involved in marketing of goods and services directly to

consumers for their personnel family and household use.

COMPANY PROFILE

BIG BAZAAR

Big bazaar is a hyper market chain owned by the Pantaloons Retail India Limited, with

currently more than 50 outlets in metros, medium, and small cities. Big Bazaar

combines the look and feel of Indian bazaars with aspect of modern retail like choice,

convenience, and hygiene. It works on the same economy model like Wal Mart, and has

had considerable success in many Indian cities and small towns. The idea was

pioneered by entrepreneur Kishore Biyani, the head of Pantaloons Retail India Limited.

Big Bazaar is not just another hyper market, 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 is what they 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.

There are many types of retail format available in India like grocery store to mall. They

have different types of market for the business. Among of all this format of retail big

bazaar is the successful retail format in Indian retail industry. In past Indian customer

only familiar with the nearby convince store but day to day innovation and customer

awareness. Now in a day’s customer are more aware about shopping.

Kishor biyani create a bench mark in Indian retail industry by entering in Indian retail

business. Big bazaar is one of them format of future group. Big bazaar deal with all kind

of human being products starting from children to adult. Products are selling by the big

bazaar like Grocery, plastic, electronics, apparels, footwear, food etc.

Mainly these sections are there in big bazaar:

* Food Bazaar:

Different departments Of Food Bazaar are as follow:

* Vegetable

* Chill Station

* Golden Harvest

* Head To Toe

* Fruit

* Ready To Eat

* General Merchandise

In General Merchandise Department different departments are as follow:

* Crockery

* Plastic

* Utensil

* Home leanon

* Electronics

* Depot

* Stationery
* Mobile

* Apparels

In Apparels Department different departments are as follows:

* Footwear

* Mans and ladies accessories

* Toys

* Kid’s ware

* Men’s ware

* Ladies ware

* Imitation jewellery.

The heart of the big bazaar is its ware house. Operation is start from the ware house. It

is very important part of entire big bazaar process. “Is se sasta aur accha kahin nahi”

punch line of the big bazaar suggest itself that good quality at lowest price products are

sell by the big bazaar.

There are 89 BIG BAZAAR are available 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

they 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 as mentioned above.

Big Bazaar : Saste Main Party (Celebrate Party in Economy Price).

Recently, a giant retail chain Big Bazaar (Future group) has made change in its

corporate logo and celebrated successfully 10 years. It has developed nice television

commercial campaign for new look and corporate branding.

It is a core competency of Big bazaar that always coming with promotional offer with

quality & branded products. Now, it has come up with new campaign for New Year with

promotional price offer where consumers can celebrate New Year party well advertising

this week by retailer.

The campaign has released with limited period offer from 17th December, 2011 to 1st

January, 2012 with the punch line of “Saste Main Party”. We all know that today

everything is becoming costly and hike in price of many things day by day. So,

consumers are making control or avoid celebrating well. Campaign: - “Saste main party

(New Year party with economy Price)” This festive season saw customers splurging and

all retailers showed increased revenue incomes as well as growth in same store sales.

There has been a lull both in retailer advertising activity as well as consumer buying for

the last 2 weeks of Novmber. Retailers, realising that customers need to be pulled back

into stores have once a Wednesday Bazaar Naye India ka Bazaar ' Big Bazaar'. (Future

Group). New Logo wednesday bazaar.

The Future Group, Big bazaar is biggest hypermarket and one of largest retail chain in

India which is also operates other retail chains, including Pantaloons, Central, Food
Bazaar, Home Town and eZone. The Future Group currently owns 152 Big Bazaar

stores in the India. Big bazaar has already built up strong brand image in retail chain

segment. The first three Big Bazaar stores were launched during the festive season in

2001 in Kolkata, Bengaluru, and Hyderabad (India). Since then, 151 more stores have

come up in 90 cities across the country in India. And, now, it is running very

successfully in market.

Recently few days ago Big Bazaar has come up with its new look and going to redefine

in Indian retail market. It has already been completed 10 years in Indian retail industry

where it has been offering wide range of brands to consumers with competitive price.

Big bazaar has started with beautiful brand campaign “Isse Accha Aur Sasta kahi Nahi

(Best quality with economical price, it will not get elsewhere)”, it was getting huge

positive response and established brand with this campaign. The core competency of

Big bazaar is “price strategy”, it is always focus on price strategy and on that basis

campaign got huge success, as well still it is getting. It is offering very competitive price

that economic & socio-economic class can afford. Many other big companies’s have

started to diversify in retail market (Hypermarket) at that time.

Old Punch line: - “Isse Accha Aur Sasta kahi Nahi (Best quality with economical price, it

will not get elsewhere)”.

New Punch line: - “Naye India ka bazaar (New Indian market)”. It is focusing on New

India because, since 10 years Big bazaar is providing large amounts of products to

Indian consumers, As well India is now moving step ahead day by day with new era
It has made very little change in logo of Big bazaar, it remain same color, font, looks

that will maintain same image in mind of consumers. Again, it’s a good strategy of logo

development. If you will compare very close between old logo & new logo, you will find

difference.gain eimbarked on an aggressive advertising blitz. Nick India and Big Bazaar

launch ‘ Back to School ‘ range with the famous icon ‘SpongeBob Square Pants’ Nick

India, the leading kid’s entertainment channel & Big Bazaar, India’s largest Hypermarket

chain and part of Future Group, together announced the launch of the ‘Back to School’

range with the famous icon, the one & the only ‘Sponge Bob Square Pants’! The ‘Back

to School’ range is available starting December 9th 2011 at all Big Bazaar.
Spencer's Retail Limited (SRL)

Spencer's Retail Limited (SRL) is a multi-format retailer providing a wide range of

products across different categories to its consumers. The company operates stores

across India under Spencer's brand, including hypermarkets. Its stores offer both fresh

and packaged foods, and groceries under own brands such as Smart Choice, Tasty

Wonders, Clean Home and Maroon.

SRL's product range includes comprises food and grocery, fruit and vegetables,

electrical and electronics, home and office essentials, garments and fashion

accessories, toys, personal care, music, books, sugar free, meat, chicken, fish, bakery,

drinks, frozen foods and IT accessories. The company also offers various services such

as credit card, and gift card and product replacement warranty. It is a subsidiary of

CESC Limited. SRL is headquartered in Kolkata, India.

Spencer’s Retail is associated with lifestyle and retail industry. It is of Indian origin and

was founded in the year 1863 under brand name Durrant & Spencer by its co-founders

William Spencer and Charles Durrant. Currently, it operates as a subsidiary of its parent

company RP - Sanjiv Goenka Group. Spencer’s Retail has put its onus on all-round

quality in service standards, products and customer engagement programs. It faces

competition from the following

 Pantaloon Retail

 Lifestyle Brands Ltd

 N Stores Food Retail Pvt Ltd

 Aditya Birla Retail Ltd

 Big Bazaar

 Reliance Fresh

Marks and Spencer is an international multi-channel retailer that has been running for

129 years. It now operates in “over 50 territories worldwide” and employs “almost

82,000 people”, (Marks and Spencer plc, 2013). It’s dependence on its origin country;

the UK is progressively being reduced due to its international focus. M&S’ UK turnover

consists of 54% food and 46% general merchandise, including home ware, clothing,

lingerie etc. It is currently growing its e-commerce and has expanded to the finance

business with its M&S Bank branch. Clothing has been lately an aspect of concern for

the company, as sales of clothing have “slipped back for the ninth consecutive quarter”,

(The Guardian, 2013). This has created a 9.1% fall in half-year profit. For this reason,
according to M&S Chief Executive, they are currently working on having “more

innovation and choice than ever before”, (Bolland, 2013). However, according to retail

analyst for the BBC, “The company is too risk averse and is unwilling to break the mould

of its traditional ways of doing business”, (Conlumino, 2013).

The affordable fashion market in the UK has been described as “challenging” by Chief

Executive Bolland. The fashion industry requires radical and innovative measures for

success, which M&S has not dared to implement until now. Marks and Spencer’s

fashion competition is becoming increasingly tough and aggressive. Retailer Next

overtook M&S “as the UK’s biggest fashion retailer, in July 2012”, (Nairn, 2012).

Primark, its older rival has “an expected 5 billion pounds in clothing sales in 2014”, (The

Guardian, 2013) this is a very close figure to M&S, with the potential possibility of

performing above it.

Marks and Spencer decided to adopt a fairytale theme for its Christmas 2013 campaign,

focusing on its men and women ware collections as well a their lingerie collection

playing a strong role. The adverts’ message claims to “Believe in Magic and Sparkle”

and is based on a collection of fairytale stories including Alice in Wonderland, Red

Riding Hood and The Wizard of Oz. It encourages the audience to believe in the true

Christmas spirits while taking them through a range of mind-blowing and fantasy

settings that communicate the wide range of festive products available in the store. The

advertising campaign was developed by the advertising agency RKCR/Y&R and also

includes its Christmas party food range on the table set during the ‘Tea Party’. The
company has tried to emphasize its quality by bringing to the advert loved fairy tales in a

glamorous offset. Christmas is a key selling season for M&S and thus their Executive

Director of Marketing & Business Director claimed how they wanted to “recapture the

magical essence of Christmas that customers tell is synonymous with M&S”, (Bousquet-

Chavanne, 2013). In terms of the media channels, Marks and Spencer “is shifting its

marketing approach to digital first”, (Vizard, 2013). This means that its strategy is

launching campaigns online (through You tube and its Website) before the use of Above

The Line advertising (appearing in TW or print), this is a way to engage better with its

consumers. The campaign was first launched on the 4th November online and two days

after the TV debut took place. The whole campaign had a very strong focus on

engaging their target audience through social media, allowing shoppers to vote via

Twitter and Facebook on a name for the highland terrier which features in its campaign.

The main purpose of the campaign is to create awareness to their target audience and

recover primarily in terms of clothing sales (increase them). Further objectives of the

campaign are to attract its target market for a bigger range of their products. By

integrating food and general merchandise such as clothes and home ware in the advert,

M&S aims to take advantage of cross-fertilising across food and clothing, as opposed to

other.
REVIEW OF LITERATURE
A while barter would be considered to be the oldest form of retail trade. Since

independence retailing India has evolved to support the unique needs of our country

given its size and complexity”. Haats Mandis and Melas have always been a part of the

Indian landscape. They still continue to be present in most parts of the country and

bring all essential part of the life and trade in various areas. Retail snapshot focuses on

Haats mandis and melas a reality of the Indian landscape.

All products in Big Bazaar will be available at prices lower than the MRP, often up to

60% discount. In addition to this, various offers, discounts and promotions will be

regularly held at the store. The consumer will experience a new level of standard in

price, convenience and comfort, quality, quantity, and store service levels. BIG BAZAAR

in its true hyper market model will offer all of the above for both leading brands and also

for its private labels.

2001 - Three Big Bazaar stores launched within a span of 22 days in Kolkata,

Bangalore and Hyderabad.

2002 - Food Bazaar becomes part of Big Bazaar with the launch of the first store in

Mumbai at High Street Phoenix.

2003 - Big Bazaar enters Tier II cities with the launch of the store in Nagpur Big Bazaar

welcomes its 10 million-th customer at its new store in Gurgaon.

2004 - Big Bazaar wins its first award and national recognition. Big Bazaar and Food
Bazaar awarded the country’s most admired retailer award in value retailing and food

retailing segment at the India Retail Forum A day before Diwali, the store at Lower Parel

becomes the first to touch Rs.10 million turnover on a single day.

2005 - Initiates the implementation of SAP and pilots a RFID project at its central

warehouse in Tarapur Launches a unique shopping program: the Big Bazaar Exchange

Offer, inviting customers to exchange household junk at Big Bazaar Electronic Bazaar

and Furniture Bazaar are launched.

Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold credit card program

to reward its loyal customers.

2006 - Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs 1,37,367

shopping bill. The Sangli farmer becomes Big Bazaar’s largest ever customer. Big

Bazaar launches Shakti, India’s first credit card program tailored for housewives

Navaras – the jewellery store launched within Big Bazaar stores.

2007 - The 50th Big Bazaar store is launched in Kanpur

Big Bazaar partners with Futurebazaar.com to launch India's most popular shopping

portal Big Bazaar initiates the "Power of One" campaign to help raise funds for the Save

The Children India Fund Pantaloon Retail wins the International Retailer of the Year at

US-based National Retail Federation convention in New York.

PROMOTIONAL STRATEGIES

1. Holistic Advertisement which promotes the brand and creates awareness among

people.

2. 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 has helped Big Bazaar in being the "Value for Money"

store.

7P Analysis of Big Bazaar:

1. Product

Big Bazaar offers a wide range of products which rangefrom apparels, food, farm

products, furniture, child care, toys,etc. Products of all the major brands are available at

Big Bazaar

2. Price

The tag-line is "Is se Sasta aur accha aur kahin nahi". They work on the model of

economics of scale. There pricingobjective is to get "Maximum Market Share".

3. Place

Big Bazaar stores are located in 50 cities with 75 outlets.Big Bazaar has presence in

almost all the major Indian cities.

 4. Promotion

The various promotion techniques used at BigBazaar include "Saal ke sabse saste teen

din", Future Card (the card offers 3% discount) Brand Endorsement by M. S. Dhoni,

Exchange Offer - ‘Junk Swap Offer’, Point-of-Purchase Promotions. Advertising has

played a crucial role in building of the brand. Big Bazaar advertisements are seen in

print media, TV, Radio (FM) and road-side bill-boards.

5. People

Well-trained and dressed staff, Employees are motivated to think out-of-the-box.

6. Process

Multiple counters with trolleys to carry the items purchased. Proper display / posters of

the place like (DAL, SOAP, etc.).

7. Physical Evidence

It deals with the final deliverable or thedisplay of written facts. This includes the current

system and available facilities.

Promotion in the Marketing Mix Of Spencer’s Retail :

Spencer’s Retail has adopted promotional strategies to increase its brand visibility. It

advertises via print media in newspapers and brochures by giving informative details

about recent incentives. It has been the recipient of awards and accolades in multiple

categories like Most Admired Food & Grocery Retailer of the Year at Cocoa Cola

Golden Spoon Awards-2016, Best VM & Retail Design in Hypermarket Category,

Highest Job Creator in the Eastern Region, Best Practice Award and Most Admired

Retail Company of the Year 2013.

As part of its promotional strategy, Spencer’s offers incentives like Monsoon Dhamaka,

Discount Sale and Periodical Sales. It rewards its loyal customers through Smart

Rewards Program. A regular customer earns points on every purchase and can redeem

them after a certain sum is accumulated. Spencer’s Retail has launched Spencer’s Gift

Card as an ideal Gift for friends and family and it can be loaded with an amount of

rupees 500- 9,999.