CIA1 RM

Continuous Internal Assessment 1

of

Retailing Management
Submitted in partial fulfilment of
the requirements for the award of the Degree of
Master of Business Administration
CHRIST (Deemed to be University), Delhi NCR

Submitted by:
Arya Arun (20221005), Antony Joseph (20221004) &
Shagun Rai (20221025)
Under the guidance of
Prof. Sanjib Bhattacharjee

1
Table of Contents
Introduction...........................................................................................................................................3
BIG BAZAR.........................................................................................................................................3
BIG BAZAR - THE GREAT INDIA PLACE, NOIDA...................................................................................3
LOCATION..........................................................................................................................................4
FOOTFALL..........................................................................................................................................5
SECTION AT BIG BAZAR......................................................................................................................5
LANDMARKS......................................................................................................................................6
CATCHMENT AREA.............................................................................................................................6
NUMBER OF HOUSEHOLDS (within a radius of 1.5km, 3 km, and 5 km)............................................8
HOW MANY CUSTOMERS ARE FROM EACH RADIUS?........................................................................9
CATCHMENT ANALYSIS......................................................................................................................9
ANALYSIS.........................................................................................................................................10
DEDUCING BROAD BUSINESS MODEL (DBBM): The Retail Format Allocated......................................11
Rent.................................................................................................................................................11
Electricity.........................................................................................................................................11
Manpower.......................................................................................................................................11
Inventory.........................................................................................................................................12
How inventories are managed?...................................................................................................12
Reorder of inventories.................................................................................................................12
Supply Chain of Durable and Nondurable Goods........................................................................13
In-Store Display............................................................................................................................13
Big Bazaar cautiously uses lights..................................................................................................14
Checkout Display at eye-level......................................................................................................14
BigBazaar is divided into three categories.......................................................................................14
Hypermarket Discounting and Schemes..............................................................................................15
Discount in FBB................................................................................................................................15
Discount in Food Bazaar..................................................................................................................15
Discount in General Merchandise....................................................................................................16
Big Bazaar Retail Pricing......................................................................................................................16
Break-even business per sq. ft.............................................................................................................18
HYPOTHETICAL BUSINESS MODEL.......................................................................................................19
Therefore, break-even sales per month in rupees of the BigBazaar is INR 1314991.63244................20
Key Promotional Strategies.................................................................................................................20
Introduction

BIG BAZAR

BIG BAZAR - is an Indian corporate store of hypermarkets, rebate retail chains, and
supermarkets. The corporate store was established by Kishore Biyani under his parent
association Future Group, which is known for having huge conspicuousness in Indian retail
and design areas. Large Bazaar is likewise the parent chain of Food Bazaar, Fashion at Big
Bazaar(abbreviated as fbb), and eZone where at areas it houses all under one rooftop, while it
is a sister chain of retail outlets like Brand Factory, Home Town, Central, eZone, and so
forth.

Established in 2001, Big Bazaar is one of the most seasoned and biggest hypermarket chains
of India, lodging about 250+ stores in more than 120 urban areas and towns the nation over.

Big Bazaar was established in 2001 by Kishore Biyani, the originator and (CEO) of the
parent organization, the Future Group. The previous skipper of the Indian cricket crew,
Mahendra Singh Dhoni has recently supported the style vertical of Big Bazaar.

In 2020, Big Bazaar was gained by Reliance Retail, the retail division of Reliance Industries,
as a feature of a ₹24,713 crore ($3.36 billion) deal exchange of Future Group. The obtaining
is being questioned in Singapore courts by Amazon, which is referring to an agreement
understanding precluding manages 'limited rundown' of organizations.

BIG BAZAR - THE GREAT INDIA PLACE, NOIDA

Location - The Great India Place, Entertainment City, Lower Basement, near Atta Market,
Sector 38, Noida, Uttar Pradesh 201301.
The Great India Place is a shopping center in Noida, Uttar Pradesh, India. It is famously
known as GIP Mall. it was opened in 2007. It is perhaps the biggest shopping center in the
country. The shopping center highlights a wide choice of public and global retail outlets. This
fabulous shopping center likewise shares its limit with Worlds of Wonder, a significant
Amusement Park in the city. The Great India Place, Gardens Galleria Mall, Worlds of
Wonder (WOW), Kidzania, and Decathlon are all important for the bigger Entertainment
City Limited advancement on 150 sections of land in the most costly business center of Noida
in Delhi NCR. General store Shopping Offers For Electronics, Grocery and More. Visit
Justdial For Big Bazaar Noida Address, Timings, Contact Number, Reviews, and Photos

A vendor of mobiles and tablets, Big Bazaar (the Great India Place) in Sector 38 has been
offering unprecedented support to the residents since the time its foundation in 2006. Making
accessible a wide scope of mobiles and tablets of all prestigious public and global brands like
OPPO, Apple, Gionee, Sony, Samsung, Vivo, XOLO, Google, Honor, HTC, Huawei, and so
on, this is clearly an all-inclusive resource for the youthful and the old. Interfacing
individuals, this versatile store guarantees to offer its items at the best costs and offers
subsequently assisting the purchasers with purchasing their #1 contraption at modest. High on
quality, every one of its items conveys the guarantee of their individual brands making them
dependable for procurement. Clients have an alternative to look over a huge scope of items
under its rooftop leaving a practically perpetual decision for them. The shop stands situated in
an exceptionally unmistakable area of the city, in the vicinity of Lower Ground Floor, Great
India Place Mall.

LOCATION

It has a total floor area of 1,000,000 sq. ft. (93000 m^2) with 4 floors and the center is
partitioned into explicit zones, with home and staple on the storm cellar level, ladies' attire on
one side, men's on the other, and a 180,000 sq ft (17,000 m2) food and amusement zone on
the highest level. Its six-screen BIG Cinemas multiplex has an absolute seating limit of 1220.
There is additionally an 850 sq ft (79 m2) zone committed to a Wedding Bazaar and a Home
Saaz segment for home improvement. A huge piece of the shopping center's all-out region is
covered by Future Group adventures, including Home Town, Big Bazaar, and Pantaloons.
FOOTFALL

● An average daily footfall of 2500 - 4000

● Annual footfall - 10 million (approx.)

SECTION AT BIG BAZAR

In the lower ground floor, with the following sections

1. Home care

2. Food Bazaar

3. Kids section

4. Stationary

5. BB fashion

6. Home Decor

7. Footwear

8. Electronics
LANDMARKS

1. Wave one

2. Radisson Blu

3. Worlds of Wonder

4. Centrestage Mall

CATCHMENT AREA

● Surrounded by professionals, students, and business class people.

● Noida Expressway including offices, colleges, and other commercial towers.

● Most of the population is middle class and upper class with higher than average per
capita income.
● With annual footfall - 10 million (approx)
NUMBER OF HOUSEHOLDS (within a radius of 1.5km, 3 km, and 5 km)

1. 1.5 km

There are many 2BHK flats and residential areas like

● Brahmaputra residency

● Yamuna Enclave

● Varun Vihar Enclave

● Vijyant Enclave

● Express Green Apartment

2. 3 km

● Noida Home
 ● UIIC company flats

● Gulshan Vivante

3. 5 km

● Kartik Kunj Society

● Assotech building

● Metro

● Residents Welfare Association, sector 15A’

● Sector 34

● Sector 52

HOW MANY CUSTOMERS ARE FROM EACH RADIUS?

1.5 km

● Approximately a weekly average of 2000-3000

● And during weekends there are a likely to be an average of 1000 plus than normal.

3 km

● Approximately a weekly average of 1000 -2000

● And during weekends there are a likely to be an average of 500 plus than normal.

5 km

● Approximately a weekly average of 500 and less

CATCHMENT ANALYSIS

● Big Bazaar has a customer segment of

1. Higher and upper working-class clients.

 2. The huge and developing youthful working populace is a favored client portion.

3. Huge Bazaar uncommonly targets working ladies.

● The sales potential of - 14,514 per sq. ft.

ANALYSIS

● Generally, youth and ladies are the fundamental clients at Big Bazaar.

● Print media incredibly affects clients; they are getting mindful of new items and
related offers.

● Due to accessibility of all items under one rooftop and close by their home assists
clients with shopping week after week and shop new without fail.

● Groceries and garments are the fundamental things bought by the clients and they are
mindful about large market brands and for the most part, are happy with them.

● All the clients need that their time ought not to squander subsequent to shopping, a
number of clerks ought to be expanded and holding up measure the board ought to be
made acceptable.

● Very few individuals are individuals from reliability programs on the grounds that
there are numerous alternatives for them they purchase things think that it’s more
reasonable.

● Customers are not happy with the design/style of items.

● Many of the time lift isn't working or ac isn't working this gives great shopping
experience to clients.

● The number of workers at each segment is less consequently client think that it’s
harder to get items as per his decision.
DEDUCING BROAD BUSINESS MODEL (DBBM): The Retail Format
Allocated

Rent

The Big Bazaar outlet in the Great India Place mall is located in the heart of a big city. The
average rent paid by any Big Bazaar in any Tier 1 city is INR 30-40 per square foot. Big
Bazaar, GIP mall is spread across 56500 sq ft. With that being said, the average rent paid by
that outlet of Big Bazaar is INR 2260000 per month.

Electricity

Big Bazaar in the Great India Place, Noida has a three-phase connection.

The store is well lit by LED bulbs and tube lights. Approximately 500+ lights have been used
across the floor to keep the store well lit and ensure that everything is clearly visible to the
customers. There are no fans in Big Bazaar, GIP as it uses centralized AC cooling system
provided by the mall. There are about 50 computer systems installed in the store for billing
purposes, inventory management and attendance record checks. There are 20 billing counters
within the premises.

At several placed there are glow up display sign boards used to advertise a specific brand
product and also the logos of FBB and Big Bazaar.

There are approximately 100 LED sign boards used in the premises. Each board consumes
about 650w.

During the non-rush hours, some lights are turned off and the light up boards are also
switched off. The AC temperature is also increased as the rush is relatively less.

Manpower

On an average, each Big Bazaar store has approximately 150 employees both on the rolls and
on contract. These employees are responsible for the functioning of the organization. The
150+ staff involves store managers, section managers, sales managers, sales representatives,
cashiers, maintenance staff, security personnel, inventory management stall etc.
There are about 10 helpers/door deliver boys in that specific store. The average cost per
person comes around INR 35000.

Inventory

Big Bazaar's stocks are separated into a few item classes. By and large, stock is kept up with
for FMCG item classes and food classifications, just as a wellbeing level of stock for FMCG
items and attire. Since request vacillates, stock as per the season is kept up with.

How inventories are managed?

With regards to deciding the amount of stock, the supervisor examines the inventories just as
the customer demands consistently. The Stock – and Stockout records are kept by the
supervisor so he can decide the stock level. He has additionally seen inclinations in the
requirement for stocks, expressing, for instance, that apparel is requested regularly like
clockwork.

They have a reinforcement of ten items for each example of apparel. On the off chance that a
bigger amount of things is essential, they initially ask at another Big Bazaar Store, like Patia,
yet in case they are as yet incapable to fulfill clients' solicitations, they resort to "Move of
Interest." They like to direct customers to pantaloons for this situation.

He additionally expressed that Big Bazaar has recently experienced critical specialized
progressions, with its production network turning out to be completely robotized. At the point
when an item is sold, the PC promptly sends a solicitation for reinforcement.

Reorder of inventories

There are no such reorder focuses, as indicated by the director in control. Orders are set by
request. Notwithstanding, he expressed that such measures don't exist, except for a couple of
inventories. Beforehand, clothing was requested just when the inventory per thing piece went
under four. It was seven days for general business, which included both food and non-food
things. They do, in any case, take as a primary concern the two-day transportation period.
Vegetables are bought from nearby merchants consistently.
Supply Chain of Durable and Nondurable Goods

Perishable items, like vegetables, are taken care of with outrageous alert. Vegetables are
bought consistently dependent on request and season. It is likewise settled that harmed food
sources are offered to different channels at a diminished expense. Long-lasting items, like
kitchenware and staple food sources, just as electrical gadgets, are imported from
Jamshedpur.

The Distribution Channel, which is situated in New Delhi, is responsible for the conveyance
direct used in the store network measure. Merchandise are conveyed to each Big Bazaar Store
from that point.

In-Store Display

In-store groupings of items coordinated inside a spot are alluded to as retail shop shows. This
incorporates the racks before the checkout work area, the life-sized model units set around the
floor, and some other assortment of merchandise or signage planned to cause to notice the
store. In-store shows serve an assortment of destinations, including displaying new items and
instructing clients.
With regards to grabbing a customer's eye, a choice in regards to an item is made in under 90
seconds. This permits one about a moment and a half to walk a shopper through the
purchasing cycle, accepting that they're keen on your items in any case. Notwithstanding,
there is a special presentation hack that gives you a benefit: shading alternatives.

Big Bazaar cautiously uses lights

The window show is sufficiently lit, particularly in case you're featuring explicit products.
Great lighting adds tasteful appeal to the space as well as makes items set to stick out.
Introducing inventories as a set or as a coordinated or firmly related item is both tastefully
engaging and an incredible strategy to occupy out a space in an intelligent manner. It's
additionally an extraordinary device for upselling. Individuals who have the brand dedication
or inclinations like cross-promoting.

Checkout Display at eye-level

Clients should discover it as troublesome as conceivable to oppose looking at the things it has
at checkout. As indicated by Nielson's examination, clients are bound to purchase from a
checkout show if the thing is noticeable from the path. Subsequently, the store shows at eye
level for the greatest impact.

BigBazaar is divided into three categories

● Food Bazaar

● Apparels

● General Merchandise

Carry broad variety and deep assortment organized into the separate department for
displaying merchandise. Major Department includes:-

1. Utensils

2. Plastics

3. Home Decor

4. Luggage
 5. Toys

6. Footwear

Hypermarket Discounting and Schemes

Retail limiting is the point at which an organization brings down the cost of an item for a
restricted period. To get out excess stock and account for new assortments, a few stores give
a store-wide rebate. Limits are ordinarily offered by retailers to draw in new shoppers, further
develop deals, and get out obsolete stock.

Discount in FBB

● Flat 50% OFF+INR 200 cashback on INR 2000 worth purchase

● Flat 40% Off for Salwar

● Flat 40% Off for Women Accessories such as Handbag

● Flat 40% Off for Women Tops

● Flat 50% Off for Salwar

Discount in Food Bazaar

● Save INR 20 for Kissan Jam

● Save INR 21 for Nutella

 ● Save INR 40 for Dabur Honey

Discount in General Merchandise

● Exclusive cashback for paying in Futurepay payment App

● Flat 40% Off for Gillette

Big Bazaar Retail Pricing

● Markup Pricing

Markup valuing, otherwise called cost-in addition to estimating, is an evaluating technique

wherein the cost of an item or administration is inferred by joining the item's expense in
addition to a rate markup. The firm decides the rate or markup, which is for the most part set
at the required return it needs to achieve. A markup valuing approach contrasts with a fixed-
value system, which is used when quotes are questionable.

● Discount Pricing
Discount pricing is a kind of limited-time evaluating methodology that includes bringing
down the underlying cost of an item or administration to expand traffic, move stock, and
drive deals. Individuals are drawn to less expensive expenses since they partake in the
impression of getting a decent deal.

● Psychological Pricing
The procedure of putting costs lower than the genuine cost is known as mental estimating.
The hypothesis behind mental estimating is that purchasers would decipher a hardly scaled-
down cost as a lower cost than it really is. As per contemplates led by scholastics at MIT and
the University of Chicago, costs that completion in 9 improve customer interest for things.

Break-even business per sq. ft.

Break-even analysis determines how many units of a product must be sold in order to pay the
fixed and variable costs. The break-even point is a metric for determining the margin of
safety.
From stock and options trading to corporate planning for various initiatives, break-even
analysis is widely utilized.

It is quite typical in retail stores to measure revenue in terms of sales per square foot. It is often
published in Retail Magazines.

In Big Bazaar, the Break-even business per sq. ft. is

● Fixed Cost per Sq. Ft. ÷ (Revenue Per sq. ft. – Variable Cost Per sq. ft.)

= 2260000 ÷ (14514-8563)*

● Break-Even Point= INR 379.768106201

This means Big Bazaar needs to make at least INR 379 per square ft. in order to cover
the overall cost.

● The numbers taken are an approximation as conveyed by the store manager.

HYPOTHETICAL BUSINESS MODEL

HYPOTHETICAL BUSINESS MODEL

Monthly sales= 167623163.8418(approx.)

COGS= Rs. 57442127.1784

Gross Margin= Monthly Sales - COGS

= 110181036.663

Variable Expense= 526214

Fixed Expense= 864344

Contribution Margin= 0.6573139066= 65.73%

Break even sales per month = Fixed Expense/ Contribution Margin

= 864344/65.73%
 = 1314991.63244

Therefore, break-even sales per month in rupees of the BigBazaar is INR 1314991.63244

Key Promotional Strategies

● Walmart conducts periodic promotions, with discounts at all times of the year.

● The store can utilize phrases like "save money, live better," "lowest price store,"
which are all linked with cheap costs.

● They can advertises through a variety of mediums, including television commercials,

billboards, social media, and even its own eCommerce platform.