A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL

STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF

BIG BAZAR

1. STATEMENT OF THE PROBLEM:

The study has been conducted on Big-Bazaar at gokul road, akshay park HUBLI. To find
customer preferences in choosing Big-Bazaar. This study done on certain aspect (income
level, price, selection of products, satisfaction level of customers).

2. LITREATURE REVIEW:
 WILLETT AND KOLLAT (1967) – Examined that customers personality and their
intellectual capability manipulate more on inclination purchase
 HOCH AND ROOK (1985) -It has focused on the cognitive and emotional response
which experienced by the consumer during purchase. it is the psychological model of
consumer preferences buying. It deals with certain characteristic they are as fellows
 An unexpected and the unstructured aspiration perform.
 The situation of mental disequilibrium performs.
 The commencement of emotional conflict and effort.
 Lessening in the cognitive evaluation.
 GOODEY & ABRATT (1990) – Examined that Manufactures and the retailers in the
industrialized countries spend large sum of amount on personal ad and the promotion
to increase the sales on merchandise through “preferences buying “. In – store stimuli
hold true across culture. Analysis of variables such as brand loyalty, specific outlet
and presence of shopping list also impact on cross cultural basis.
 PIRON (1991) –preferences purchase is a phenomenon that are started trigger the
consumer and he demonstrated about how the new updating improves over the
previous buying procedure
 Et al DITTMAR (1996) – Determined that gender and the societal group effect on
preferences buying of instrumental and free time items which projects their self-
determination and action. Usually girls tend to procure the representative and self –
significant goods which are associated with their look and emotional aspects of self.
 FERRELL & BEATTY (1998) – Explained that preference shopping tempts the
customers to immediate purchases which are without any pre –shopping objective
either to buy the particular merchandise category. The buying of an item which is out
of stick and reminded during encountering the product are excluded from the preview
of preferences buying.
 WOOD (1998thy) – Declared that economic and the cultural factors of person such as
low-down level of the house hold returns indulger into spontaneous purchase.
 HAUSAMAN (2000) – Explained preferences buying is a hedonic need
predominately motivated by the achievement of advanced wants and needs which are
term under the Maslow’s Motivational needs and efforts to assure the advanced
categorize needs in this hierarchy lead to different type of preferences buying
behaviour.
 LEE AND KACCEN (2002) – Examined in the aspects of intellectual perspective, the
hypothesis of individualism and collectivism give important insights about
consumer’s preference behaviour. Individualism are the more independent in
themselves in greater preferences purchase.
A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR

 SINGH AND KAUR (2007) – Examined that the shopping attitude of the teenagers
and found that the sensory stimulus such as melody tune, enjoyable aroma of the
products play a significant role in determining and shopping of individuals and set off
buying activity.

3. OBJECTIVES OF THE STUDY:

 To find out sales promotional activities carried by big bazar.
 To find out the tools and techniques of sales promotion that used in big bazar.
 To know the level of customer satisfaction towards the sales promotional activities
carried by big bazar.
 To identify the factors influencing to buy the products in big bazar.
 To give the suggestion for improve the sales in competitive market.

4. COMPANY PROFILE:

Company overview:
Big bazaar:

Big Bazaar Pvt., Ltd. operates as a hypermarket. The company offers

fashion and general merchandise including home furnishings, utensils, crockery, cutlery,
sports goods, electronics, toys, footwear, men's and women's apparel, accessories such as
sunglasses, watches, and handbags, luggage, fruits, vegetables, and stationary products. The
company sells its products through its retail stores located nationwide. Big Bazaar Pvt., Ltd.
was founded in 2001 and is based in Mumbai, India. Big Bazaar Pvt., Ltd. operates as a
subsidiary of Future Group.
Kishore Biyani said he is not holding talks with anybody to sell stake in Big
Bazaar Pvt., Ltd and Food Bazaar, Inc. as Future Group has sorted out its debt crisis. "We are
not in discussions with anybody. I don't want to divest my core retail business now. I want to
run it," Kishore Biyani told ET. "Our debt levels are very comfortable and divestment, if any,
will only be in non-core assets," the Future Group Chief said. "In the past one month, Biyani
has managed to reduce his debt by INR 60 billion. Now, he is in no hurry to sell any of his
core businesses," the person close to Future Group said.
A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR

Mitsubishi Corporation is looking to acquire a stake in Big Bazaar Pvt., Ltd.

Mitsubishi had made it a pre-condition to invest in Future Group’s food sourcing and back-
end infrastructure, sources familiar with the matter said. Mitsubishi and Future Group
discussed the issue in the US last week and Mitsubishi has even suggested a convertible
structure that will allow an equity stake in Big Bazaar. Kishore Biyani was unavailable for
comments and his spokesperson said the matter was speculative. Mitsubishi did not respond
to Business Standard seeking comment.

Big Bazaar Store:

Pantaloon Retail (India) Limited, is India's leading retail company with presence
across multiple lines of businesses. The company owns and manages multiple retail
formats that cater to a wide cross-section of the Indian society and is able to capture
almost the entire consumption basket of the Indian consumer. Headquartered in
Mumbai (Bombay), the company operates through 5 million square feet of retail
space, has over 331 stores across 40 cities in India and employs over 17,000 people.
The company registered a turnover of Rest 2,019 corer for FY 2010-11. It owns and
operates multiple retail formats including Pantaloons, Big Bazaar, Food Bazaar,
Central, E-Zone, Fashion Station, Depot and many others.

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. Food Bazaar, food and grocery chain and launch Central, a first of
its kind seamless mall located in the heart of major Indian cities, followed this. Some of its
other formats include, Collection I (home improvement products), E-Zone (consumer
A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR

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 retailing venture, futurebazaar.com.

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, Jaywalker’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.

Pantaloon Retail is listed on BSE and NSE with a turnover of Rs 2,018 crores for financial
year ended 2008-09. Pantaloon Retail was selected as the Best of Best Retailers in Asia by
Retail Asia-Pacific Top 500 magazine in 2006.

Future Group:

Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned to
cater to the entire Indian consumption space. The Future Group operates through six
verticals: Future Retail (encompassing all retail businesses), Future Capital (financial
products and services), and Future Brands (management of all brands owned or managed by
group companies), Future Space (management of retail real estate), Future Logistics
(management of supply chain and distribution) and Future Media (development and
management of retail media).

Future Capital Holdings, the group's financial arm, focuses on asset management and
consumer finance. It manages two real estate investment funds (Horizon and Kshitij) and
consumer-related private equity fund, Indecision. It also plans to get into insurance, consumer
credit and other consumer-related financial products and services in the near future.

Future Group's vision is to, "Deliver Everything, Everywhere, Every time to Every Indian
Consumer in the most profitable manner." One of the core values at Future Group is,
'Indian’s' and its corporate credo is - Rewrite rules, Retain values.
A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR

Future Group Manifesto:

“Future” – the word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet
unwritten; create new opportunities and new successes. To strive for a glorious future brings
to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.

We, in Future Group, will not wait for the Future to unfold itself but create future
scenarios in the consumer space and facilitate consumption because consumption is
development. Thereby, we will effect socio-economic development for our customers,
employees, shareholders, associates and partners.

Our customers will not just get what they need, but also get them where, how and when
they need.

We will not just post satisfactory results, we will write success stories. We will not just
operate efficiently in the Indian economy, we will evolve it.

We will not just spot trends; we will set trends by marrying our understanding of the
Indian consumer to their needs of tomorrow.

It is this understanding that has helped us succeed. And it is this that will help us
succeed in the Future. We shall keep relearning. And in this process, do just one thing. 

Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by the
Pantaloon Group. It works on same the economy model as 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 Pantaloon Retail India Ltd. Big Bazaar stores in
Metros have a gaming area and kids play area for entertainment.

Cities where stores are located are, Agra, Ahmadabad, Allahabad, Ambala, Asansol,
Bangalore, Bhubaneswar, Chennai, Coimbatore, Palakkad, Kolkata, Delhi, Durgapur,
Ghaziabad, Gurgaon, Hyderabad, Indore, Lucknow, Kanpur, Mangalore, Mumbai, Nagpur,
Nasik, Panipat, Pune, Rajkot, Surat, Thane, Thiruvananthapuram, Vishakhapatnam.  
A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR

Big Bazaar is not just another hypermarket. It caters to every need of customer’s family.
Where Big Bazaar scores over other stores is its value for money proposition for the Indian
customers. At Big Bazaar, customer will definitely get the best products at the best prices --
that’s what Big Bazaar 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 customer. And this is just the beginning. Big Bazaar plans to add much more to
complete customers shopping experience

Departments with their Products:

1. Men’s Department

 Formals (Shirts & Pants)

 Jeans T-Shirts
 Major brands in this department
A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR

 Pantaloon

2. Furniture Department

 Dining Table
 Bedroom Accessories
 Hall accessories (Sofa sets, Chairs, Computer table etc)
 Mattresses

3. Home Decor

 Flower vase
 Artificial Flowers
 Religious gifts
 Candle stand
 Umbrellas
 Photo Frames
 Assorted color Stones
 Frame Paintings
 Water falls (artificial)
 Birthday items

Chronology:

2001

 Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore
and Hyderabad

2002

 Big Bazaar - ICICI Bank Card is launched.

A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR

 Food Bazaar becomes part of Big Bazaar with the launch of the first store in
Mumbai at High Street Phoenix

2005

 Launches a unique shopping program: the Big Bazaar Exchange Offer, inviting
customers to exchange household junk at Big Bazaar

2007

 The 50th Big Bazaar store is launched in Kanpur

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

2008

 Big Bazaar becomes the fastest growing hypermarket format in the world with the
launch of its 101st store within 7 years of launch
 Big Bazaar joins the league of India’s Business Super brands. It is voted among
the top ten service brands in the country in the latest Pitch-IMRB international
survey

2010

 Big Bazaar wins CNBC Awaaz Consumer Awards for the third consecutive year.
Adjudged the most preferred Most Preferred Multi Brand Food & Beverage
Chain, Most Preferred Multi Brand Retail Outlet and Most Preferred Multi Brand
One Stop Shop
 Big Bazaar connects over 30,000 small and medium Indian manufacturers and
entrepreneurs with around 200 million customers visiting its stores.
A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR

2011

 200th store opened in India

 Big Bazaar has come up a new logo with a new tag line: ‘Naye India Ka Bazaar’
 For the convenience of the online customers, Big Bazaar has started free shipping
on all orders above Rs. 1000

2012

 Partnered with Disney to launch "Kidz Cookies", exclusively for kids across India
 Big Bazaar is planning to add further value to its retail services by offering Value
added services like grinding, de-seeding, vegetables cutting at free of cost.

SWOT ANALYSIS

Strengths:

 High brand equity enjoyed by Big Bazaar

 State of the art infrastructure
 A vast variety of stuff available under one roof
 Everyday low prices, which attract customers
 Maximum percent of footfalls converted in sales
 Huge investment capacity
 Biggest value retail chain in India
 It offers a family shopping experience, where entire family can visit together.
 Available facilities such as online booking and delivery of goods

Weakness:

 Unable to meet store opening targets on time

 Falling revenue per sq, ft
 General perception: ‘Low price = Low quality’
 Overcrowded during offers
 Long lines at billing counters which are time consuming
A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR

 Limited only to value offering low price products. A no of branded products are still
missing from Big Bazaar’s line of products. E.g. Jockey, Van heusen,

Opportunity:

 A lot of scope in Indian organized retail as it stands at approximately 4%.

 Increasing mall culture in India.
 More people these days prefer to visit big stores where they can find large variety
under one roof

Threats:

 Competition from other value retail chains such as Shoprite, Reliance (Fresh and
trends), Hypercity and D mart.
 Unorganized retail also appears to be a threat to Big Bazaar’s business. A large
population still prefers to visit local convenient stores for daily purchases
 Changing Government policies International players looking to foray India.

ORGANIZATION STRUCTURE:
A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR
A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR
A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR

Mc KINSEY 7S FRAMEWORK:

 SHARED VALUES:
In big bazar the shared values are those which help in maintaining customer
loyalty and increasing repeat sales. The trust of high quality product at a
reasonably low price compared to other retail outlets and through launch of
various schemes and offers to attract customers by giving them discounts and
payback points.
 STRATEGY:
A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR

As far as big bazar is concerned it is basically price skimming and price

penetration strategy that is used to get the maximum benefit in the short- run.
Introduction of offers, membership cards, payback coupons, redeemable
points and exchange offers help in attracting customers to get more involved
and interested on doing more shopping than anywhere else.
 STRUCTURE:
There is clear chain of command and hierarchy where each individual knows
his positon and reports to his/her superior for any grievances or other work
related issues. There is proper coordination pattern and each team member is
aligned to his/her set team leaders and department managers for managers
takes note of targets to be achieved and how to increase sales which are
compared to previous year’s sales and revenues. This is done constantly and
monitored by department managers daily.
 SYSTEMS:
There is well organized and monitored centralized system in place that does
sometimes real time checking of inventory to monitoring of stock turnover.
Daily targets are set using MS Excel sheets where in each individual is
provided with daily, weekly and monthly targets to be achieved and also
performances are measured using this. Also at the cash counter there is
software in place that alerts the main logistic department about which products
are in excess stock and which are fast depleting. This is done through bar-
coding each and every item for sale in the company. Also for security purpose
the items are tagged and employees also checked for any shop lifting or other
such activities. There are strict protocol that help in constant monitoring and
maintaining daily activities in each department.
 STAFF:
1. each individual employees position and specialization are represented
within the team. Starting from the top there is store manager, Asst. store
manager, HR manager, department manager, team leader and other team
members who function in coordination with each other on a daily basis.
2. Other positions in various other departments are also managed by the store
manager through delegation of work through assistant store manager.
A STUDY ON THE EFFECTIVE PROMOTIONAL PROMOTIONAL
STRATEGY INFLUENCING CUSTOMERS FOR THE PRODUCTS OF
BIG BAZAR

 STYLE:
Centralized chain of command in which there is way of hierarchy and
decisions are mostly from the top management that are carefully drafted and
implemented at various branches.
 SKILLS:
The management pays attention to training and development of each and every
employee from top to bottom and there are sessions and meetings for the same
purpose. Each employee before joining the organization undergoes training on
how to handle each and every department work and follow certain code of
conduct required, grooming, dressing sense, training on various aspects of
window dressing and colour blocking, customer feel more happy during the
whole shopping experience, how to handle customer complaints and respond
in various situations.