CHAPTER-1

INTRODUCTION
1.1 INDUSTRY OVERVIEW
There is an activity of buying the different products like as clothing, grocery items, electrical
appliances and many more. The customers are always becoming lazy and try to find the
single place where they could find the all necessities under the same roof. So many of times
the customers are trying to do some kind of window shopping and the outcome was not
satisfying like in result it doesn’t require that the customers will place order.

As Big Bazaar-Future Retail come under the Retail industry and as we know that the retail
industry plays a major middle person role in between the manufacturer and the customer. The
customers can come and buy the products as Retail stores has a biggest product line and also
one of the growing sectors in the Indian economy. Along with this, promotional tools play a
major role in attracting the customers and serving them in a better way and satisfy the
customer by delivering them a variety of products under the same roof.

Indian retail industry has emerged from the top industry as there is the entry of the several
new players in the market. From the data we can say that the total consumption expenditure is
supposed to get a touch of $3600 billion by 2020 from $1824 billion in 2017.Along with this
the retail industry also accounts for over 10% of the India’s GDP as well as approx. 8% of the
employment and also ranked 5th in the global retail place.

The customers’ needs and demand are also fulfilled by the proper use of the supply chain
management inside the industry which in result also increase the demand of the products and
also the billing is done by the use of the electronic payment. As Retailing easily attract the
customers by using the various promotional tools and also direct serving the goods from the
manufacturer to the customer which in result putting a low cost in serving the products to the
customer. Some of the manufactures of the brand also promotes their goods inside the store
as an ambassador from the company come to promote the products which in result work in
recognizing the customer’s choice and by that the manufacture will come to know the taste of
the customer.

With the help of proper alignment of the products in the stores, it makes the customer easy in
identifying the products and also put a better impact in customer’s eye. Retail industry also
provides a huge job opportunity and also plays a major part in GDP as well as work in
improving the standard of living for the individuals.
FOUR TYPES OF MERCHANDISE

For the retailers there are various method by which the industry will get huge success but, in
the end, the key success mantra is to sell the merchandise as much as possible at the better
profit margin.

1. Convenience goods

These are the goods which are very useful in our day-to-day life. These are not the products
like we love and a kind of owner to have it like phones etc. but these are products which is
very much essential in our daily lives. The products are known as the convenience goods
which are easily available and bought regularly with a very little effort as compare to the
other products. The customers should not require to make a hectic decision-making process
while buying these goods and also these types of goods are inexpensive and a high sensitivity
to price.

Examples: Grocery items, Hygiene products, cleaning products, newspaper etc.

2. Impulse goods

Here are some shocking data like 2/3rd of the Indian economy is impulse buying. 9 out of 10
customers are doing the impulse buying as these are the goods which is places at the checkout
point as well displayed. So that the customers won’t misses those goods and make them buy
without thinking much as this is also a strategy of the retailers to make the customers to buy
those products.

Examples: Magazines, Chocolates, Sweets, Complimentary products etc.

3. Shopping Products

From the shopping products we know that before buying the shopping products the customers
do a research on different brands of the same product and also different pricing of different
products. Before buying these goods, the customers want an ample of information about the
products and also it is very difficult to stick on the single brand and many of times the
customers are ending the searching without ordering any products because there were a lot of
confusion between the different products from different brands.

For example, we can say that the customers buy the iPhone not only for the utility of the
phone but also for the symbol of the status.
Example: Clothes, Furniture, Electrical appliances.

4. Specialty goods

In buying these goods it is very much customer centric and well-focused like customers are
well known of the products what they are going to buy. For the specialty goods the customers
are ready to do extensive research, and also ready to pay more and more along with travelling
long distances because in these goods, customers are more selective. In these products, the
customers are not doing any comparison because the customers know well like what exactly
they want to buy.

Examples: Luxury cars, Expensive alcohol, Consultancy services, Other luxurious products.

TYPES OF RETAIL STORES

1- Mom-and-pop Stores

These are the types of small stores which are owned by the family and also which sell a small
collection of goods to the customers and also include only small segment of the market and
known for its customer services.

2- Department Stores

These stores are the kind of the general store which serves the customer with the lower to
higher price range. Some of the department stores sell a single line of products to the
customers.

Examples: Lifestyle, Westside etc.

3- Hypermarket

This store is a kind of store which provides a variety of range of products with a lower price
in comparison to their competitor. It is somehow the combination of supermarket and
department stores.

4- Variety Stores

In these types of stores the customers get a less varieties of products at low cost.

5- Supermarket

Here in these stores the customer will get the option of the self-service. Along with they
provide products like grocery items, or some non-food products.
6- Specialty Stores

These are the kind of outlets which focus on the single line of products not on maximize the
products line. The shops are like of toys, shoes etc.

7- General Stores

These are the kind of stores which serves the rural area customers with the goods and services
and satisfy their needs.

8- Convenience Store

These stores provide the different products to the customers even at more than normal price
and the store also deals with the immediate purchase consumables.

9- Discount Stores

These stores sell a different number of goods and provide services to the customers at less
price as compared to the different other stores.

10- Mall

The exterior and the outlook of the mall is very attractive as it provides different products and
entertainment in the store. Normally the customers spend more time here in compared to the
other stores.

11- Vending Machine

This is a small self-operated machine in which the customer just put the money inside and
buy the products of their need and it is also depends on the income of the customers.

KEY CHALLENGES

1- Pricing

As we are aware that the Indian customers are more price centric and many of times attracted
by the low pricing strategy opted by the businesses. This also help the business to run more
effectively and also help in expansion. The pricing is also the easiest variable to change to
attract the customers in a larger amount.

2- Target customers
This is also the more important factors inside the industry as customers are the base of any
business and in the retail industry, it is more important to take the businesses more on
customer centric.

3- Scale of Operation

There are many challenges in the operational activities like the supply chain management and
also very much effective in delivering the products to the customer and from manufacturing
unit to the retail stores in a very efficient way.

4- Location

Location plays the most important role in establishing any business. There should be
equilibrium between the Right place and Right decision, so that any individual can decide the
plan on the basis of the locality and also based on the customers.

REASONS OF GROWTH

1- Due to the increase in the technology and also any individual does the promotion easily
with the help of the digital media.
2- Retail Industry decreases the hustle between the manufacturer and the consumers which
also play a vital role as the customers are getting the products even at low cost as the
transporting and other cost reduced.
3- As we know the standard of living and also the incomes of the persons also increase
which also helps the stores to earn a good profit.
4- In our society we see that the women start working and the number is increasing day by
day which makes the women to buy the products in a very shorter interval of time.
5- The retail stores reduced the time of the customers as they provide every needy product
under the same roof.
6- It also makes the customer knowledgeable about the products and the prices.
7- It also attracts the investors to invest in the industry which also make the industry more
profitable.

STATEMENT OF THE PROBLEM

The study has been conducted on the Big-Bazaar at Meerut, Shopprix mall, UP. The reason
behind the study is to find the consumer behavior and also on the basis of some aspects like
(age, income level, prices, family members and also the ratings given by the customers as
how much satisfied the customers are). To analyze the query of the customer in ordering
online and also what they want some kind of betterment from our organization in the favor of
the customers. To also analyze the impact of offers on the consumer behavior.

RATIONALE OF THE PROBLEM

As we see that now a days, Retail industries are facing many problems like all the retailers try
to gain more market share of customers. Every day the condition of the market is changing
because of the offers and low prices given by the competitor. So, we should know the
customer preference and also the consumer behavior in buying the products. What kind of
problem they are facing by getting their feedback and also what we as a company should do
to gain more market share?

we can change a lot many things what customers don’t like, to get the good responses from
the customers?

OBJECTIVES OF THE STUDY

To Know the factors affecting the customer to buy the products from Big-Bazaar

To identify the customer buying behavior

To know how the promotional strategy affect the buying behavior of the customer

To summarize the factors of the customer satisfaction

To analyze the feedback given by the customers in the betterment of organization

SCOPE OF THE STUDY

After this research we will be able to know the customer decision making process of the area
Meerut, while purchasing the products from Big-Bazaar. The whole report will help the
organization to do the promotion according to the customers. The whole feedback given by
the customers will help the organization grow fast along with the satisfaction of the
customers in a much better way.

LIMITATIONS
RESEARCH METHODOLOGY
 CHAPTER-2

DETAILS OF THE ORGANIZATION

 2.1. COMPANY PROFILE

Future Retail limited is an Indian based company, which engage in a business of the retailing
a huge range of the household and the consumers products with the help of some
departmental stores which provides the various facilities under the same roof. The company
has total 1,500 stores in the different 400 cities. With the huge income in the first nine month
of the fiscal year 21 that is Rs 4,424.89 crore which makes the Big-Bazaar-Future Retail the
leading retailer in India. The company has approx. 20 hypermarket easy day stores along with
the more than 210 supermarket stores. The company operates in the various formats like Big-
Bazaar, hypermarket, supermarket, FBB, Easy day convenience stores.

BIG BAZAAR (NAYE DUNIYA KA BAZAAR)

Big Bazaar is a private company which was founded by Kishore Biyani in 2001 which is
around 20 years ago. It falls under the retail Industry whose headquarters is in Maharashtra,
India. The company has a total of 295 stores nationwide. The founder is Sarvesh Shivnath
Shukla and the president and the CEO is Sadashiv Nayak and the director is Umashankar
Shukla. The owner of this company is future retail which is founded in 2001 as Big Bazaar is
one of the oldest and largest hypermarket chains.

In 2020, Big Bazaar was acquired by the Reliance Retail, which is the retail outlet of the
Reliance Industries, which is as part of a Rs 24,713 crore that is $3.36 billion sale transaction
of future Group.

Big Bazaar has divided India into three different sectors.

India one

These are the consuming class in which around 15% of the population come in which they
target the customers from the lower middle class to the higher middle-class family.

India two

In these the customers like the persons who are liftmen, households’ helpers, peons,
washerman etc. which comer around the 55% of the population in India.

India three

The persons who are struggling day and night to buy the products which comes around 30%
of India’s Population.
Big Bazaar tried to cover all the societies of the customers in India and also depending on
their purchasing power the successfully served the customers.

After completing the ten years successfully, in 2011, Big Bazaar has come up with the new
logo and design that is “Naye India Ka Bazaar” which replaced the past logo that was: Isse
Sasta Aur Achha Kahin Nahin”. The main focus of the company is to satisfy the customers
with different varieties of the products. Along with this providing the varieties of products
under the same roof and also always trying to satisfy the customer needs to extend in a better
way to make the company highly profitable.

FUTURE RETAIL (PERKS)

2001

The Company Pantaloon Retail launched three Big Bazaar stores in Kolkata, Hyderabad and
Bangalore in just 22 days. Before Big Bazaar Pantaloon was launched in 1987 and they just
initiate in 2001 for the expansion plan.

2002

After the launched of the Big Bazaar in 2001, again the company expand with the Food
Bazaar which is the supermarket.

2005

After getting success in the Big Bazaar stores, the company launched a difference creation
programme of that time which is the shopping programme in which customer can exchange
the household junk and also there are some offer like exchange offer was started to be given
to the customer.

2007

Future group crossed the $1 billion turnover mark in the year 2007.

2012

Now the company started delivering the products from the stores to the customers place and
started their home delivery services first in Mumbai.
2014

In 2014 The first India’s mega food park was inaugurated by the honorable Prime Minister
Shri Narendra Modi at Tumkur Karnataka which is the great initiate by the company to get a
good promotion of their brand.

2015

After all the success the future group partner shipped with Patanjali which is the fastest
ayurvedic growing company.

2018

In 2018 Premji Investment bought 6% stake in the Future Retail.

2019

The acquisition of 7.30% of the equity share capital of future retail by future coupons was
approved by the CCI. Along with this in the same year Amazon acquired 49% stake in Future
coupons which an entity of the future group.

2020

In 2020 there are three major things which happened in the benefit of the company like
Reliance Retail ventures limited acquired the Future Retail limited. After that Big Bazaar
launched the online shopping application as well as the website that is Shop.BigBazaar.com.
Along with these all-Future Retail and Amazon signed two agreements in which their main
focuses are on the grocery, general merchandise, fashion and footwear products to earn more
profit in future.

VISION AND MISSION

Vision

“To deliver everything, everywhere, every time, to every Indian customer in the most
profitable manner.”

Mission

The mission of Big Bazaar is to serve the all classes with varieties of the products with the
proper quality along with the quantity. As we are serving the Indian market and as we know
 that the Indian customers are more price centric. So, we are more focused towards the price
with respect to the quality of the products.

2.2. THE ORGANIZATION

ORGANIZATIONAL STRUCTURE

Store Manager

Assistant Store Manager

Deputy Manager HR Manager Administration Sales Manager

Asst. Dep. Manager Maintenance Cashier

Security

Team Leader House Keeping

Team Member
Visual Merchandising

ORGANIZATIONAL PRACTICES

1- FINANCE DEPARTMENT
2- OPERATIONAL DEPARTMENT
3- HUMAN RESOURCE DEPARTMENT
4- SALES DEPARTMENT
5- MARKETING DEPARTMENT
6- CUSTOMER SERVICE DEPARRMENT
7- MAINTAINANCE DEPARTMENT
8- LOGISTIC DEPARTMENT

COMPETITORS OF BIG BAZAAR

Big-Bazaar Meerut Competitors Big-Bazaar overall Competitor

Best Price Reliance Retail

Dubai stores Lifestyle Retail

Shoppers stop More store

Metro Wholesale D-Mart

Easy day Club Big Basket

Vishal Mega Mart Best Price

Grofers Grofers

Daily's A fresh store On Door

Grocerywale.in  

4 P’s AND STP ANALYSIS

1- PRODUCT MIX

Home and
Apparels Food Farm Products Drinks
personal Care
Denims Staples Fruits Soft drinks Shampoos
Packaged
T-Shirts Ready to eat Vegetables juices Detergents

Fabric Ready to cook Imported Fruits Milk items Soaps

Cut Piece International food Dairy products Frozen foods Liquid wash

Formal wear Spices   Ice creams Creams

Casual wear Imported Bazaar     Deodorants

Party wear Tea and Coffee     Home cleaners

Ethnic wear       Utensils

Accessories       Plastics

Under wears       Crockery

Night wears      

Dress        

Materials        

Sarees        

Fashion and Toys and Child

Electronics Furniture Other Services
Jewellery Care Products

Footwear
Television sets Bazaar Living room Kids wear Mr. Right
Washing Machine Beauty Care Bed room Toy Bazaar Bakery
Refrigerator Navara Kitchen Stationary Loot Mart
mBazaar Star Parivar Dining room Child care Tulsi
Microwaves Meena Bindra Kids room   Future Money

Small appliances   Bean bags   Future Generali

Laptops   Paintings    
Computer Decorative
accessories   items    
Kitchen appliances        
          

2- PRICING STRATEGY

There should be the equilibrium between the profitability and the pricing in the value of their
products. As the company knew that the target audience is majorly the middle-class
homemakers, for them the value for money is very important and also along with it, there
should be competitive pricing should also be adopted. Along with all these the company is
providing a lot of discounts, offers, season end sales and many more such offers which make
the customers more attractive in shopping with Big Bazaar.

3- PLACE

Big Bazaar place and distribution strategy is to point out the area which is having the high
population and along with it, a purchasing power of the customer should be high in that area
and also the development should be going on. Their normal format area needs a roughly of
around 15-18000 square feet and their hypermarket needs around 40-45000 square feet area.
Their super Centers needs around 80-90000 square feet area to open their stores.

4- PROMOTION STRATEGY

The promotion strategy of the Big Bazaar is very rememberable and also the lines used by the
company is very catchy and easy to remember. They basically use the ATL and BTL
promotion strategy. To attract the targeted customer and also so called the short range of
customers the company uses the discounts and offer which came under the below the line
promotion strategy. For the above the line the company use to show advertisement on
television, radio, newspaper and also online promotion to attract a huge number of customers.

STP ANALYSIS

1- SEGMENTATION

The company had segmented themselves on the basis of the customers who are very price
sensitive and also the economic group customers. The company targets the customers who
want the products at a cheaper price with a good value in comparison to the premium
products.

2- TARGETING
The company targets all the lower-, middle- and higher-class customers. It also targets the
newly married couple along with the home makers who are primarily decision maker and also
the working women.

3- POSITIONING

The company positioned themselves by providing the wide varieties of products to the
customers in almost all the categories and also providing the cheaper goods with the offers
and discounts.

INDUSTRY ANALYSIS

SIZE OF THE INDUSTRY

Indian retail industry has emerged from the top industry as there is the entry of the several
new players in the market. From the data we can say that the total consumption expenditure is
supposed to get a touch of $3600 billion by 2020 from $1824 billion in 2017.Along with this
the retail industry also accounts for over 10% of the India’s GDP as well as approx. 8% of the
employment and also ranked 5th in the global retail place. According to the research, by the
end of 2024 the Indian retail market reached to $1.3 trillion. When we come to the global
retail market then we saw in 2019 the market sales were approx. $25 trillion and expected to
reach $27 trillion by the end of 2022.

GLOBAL RETAIL INDUSTRY GROWTH (2018 TO 2022)

The global retain industry is on the upward growth in 2021 as the industry faced a deep fall in
2020 due to the Covid-19 pandemic. The retail industry forecast for the year 2021 is 7.2%. It
jumps around 12.3% from the year 2020.

In 2018 the retail industry growth rate was 4.6% as it increased in the year 2019 at 5.2%.
Rather than all these increment the industry sales forecast shows a decline in the next year
that is 6.6%. From 2018 to 2022, the average annual retail shows a growth trajectory from
4.6% to 6.6% that is 3.58%. The sales rises from $23.56 trillion to a forecasted sale of $26.69
trillion in 2022.

TOP 10 GLOBAL RETAILERS

Retailers Name Global sales in 2020 Market Share in 2020

Walmart (US) $527.8 billion 15.9%
Amazon (US) $268.2 billion 13.7%
Costco (US) $156.6 billion 15.35%
Schwarz (Germany) $133.3 billion
Kroger (US) $124.9 billion
Walgreens (US) $116.4 billion 19.1%
Home Depot (US) $111.3 billion 4.16%
Aldi (Germany) $110.6 billion 8%
JD.com (China) $103.3 billion
Carrefour (France) $94.2 billion 20%

INDUSTRY SEGMENTATION AND STRATEGIES

ORGANIZED RETAILING

As we know that the Retail Industry is of two types in which Organized and Unorganized
retail come. From the organized retailing, it means a large retail chain of shops which run
with all the up-to-date technology along with the supply chain management and distribution
system. The scale of operation in these types of retailing is large and also scope of operation
is in nationwide or worldwide. Employees are highly professional, skilled and well trained
and also there are a multiple chain of stores. The source of merchandise is directly from the
manufacturer or producer.
If we talk about the convenience of the customers in buying the products from the customers,
then it is very high as the customers can walk around the store and buy the products what
they want and also with the application they can buy what they want. In these types of
retailing bargaining is not possible as the pricing of the products doesn’t depend on the
relationship. Some of the examples are Walmart, Big Bazaar, Hyper city etc.

UNORGANIZED RETAILING

These are the types of retailing which is a type of local stores which runs by the owner itself
or the staff with not such big promotion and advertisement. The scale of operation of this
store is small and also the employees who are working there are not professional. There are
only few stores of a single owner in the city with not so good ambience. There are mostly the
range of the local products in the stores. Their source of merchandise is only the wholesaler.
Some of the examples are the Standalone shops or the local stores in the city.

STRATEGIES FOR EFFECTIVE MARKET SEGMENTATION

NICHE STRATEGY:

With the help of this strategy the industry focuses on the large share of the only few
segments. From this strategy the organization will gate a competing advantage over the
organizations who are not concentrating on the one-two segments.

MULTI-SEGMENT STRATEGY:

From the word multi we know that the company will focus on the marketing strategies of two
or more segments.

For Example, J&J offers a healthcare product in the product range of the baby care and other
different products and also along with all these the company segmented the all-aged
customers.

STRATEGIES FOR MARKET PENETRATION:

PRICE PENETRATION:

From the word price penetration, the company is putting the products cost at a lower price as
compared to the competitor. And due to the lower cost if any customer will come to the cost
and buy the products in the large quantity then it will automatically maintain the decent profit
margin for the stores.
AGGRESSIVE PROMOTION:

In today’s scenario the promotion activities of the products and services on the TV, and
through the online sources is increasing rapidly and also the Organizations are investing
much on this part to increase the market penetration. Along with the promotion, the company
also gives the offers and discounts with some more benefits to the customers.

HIGH PRODUCT DISTRIBUTION:

This part plays a vital role in penetrating the market in the better way like when any company
distributes their products to every kind of stores from small to big, then the products will
come in high demand.

For example, Coca-Cola is available ate all the stores even the stores are small or big.

KEY PERFORMANCE PARAMETERS FOR THE INDUSTRY:

RETAIL LOCATIONS PLANNING:

SIZE OF CATCHMENT AREA:

There are three types of the catchment area in which there are primary, secondary and
tertiary. In which primary area in which there are footfalls of the 60-80% customers in the
market, in the secondary area there are footfalls of 15-25% customers and the tertiary area
contains the remaining customers who only do shopping in the occasion.

OCCUPANCY COSTS:

This is the very important things to be considered while setting up the stores and also the
addition of all the costs in which the costs of lease or owning as the costs are different in the
different locations. After that the property taxes and location maintenance costs.

CUSTOMER TRAFFIC:

While selecting the location for the stores the company should calculate the number of
customers travelling by the location, how much vehicle surpass the roads and also the most
important things is that how much pedestrians travelling by the location.

AREA CONVENIENCE:
The company should notice that the location should be near to the residential areas and also
along with there should be the availability of the public transport easily.

LOCATION RESTRICTIONS:

It should also be considered while selecting the restrictions in the store or outside the stores
like restrictions on the working hours and along with the noise intensity, because there will
huge sound effects at the time of promotion and advertisements.

MERCHANDISE MIX:

From the word merchandise mix, it is the products assortment inside the stores. There are
some big stores like Walmart have a very wide merchandise mix, but in a small stores like
shoe store, there are small merchandise mix. It also helped the company to think over like
what products to be display on the shelf to attract the customer.

Let’s take an example, if any store which has a wide variety of stocks and jut put it on the
shelf here and there, then the customers got confused like where the customers are getting the
clothes department, now they are seeing vegetables over there also. This will put benefit over
their competitor and customers got moved towards the other stores.

POINTS TO BE CONSIDERED WHILE MERCHANDISING:

At first to know what very products to stock in the store, the company should have to verify
the few metrics like the status of the inventory, margin percentage etc. With the help of these
metrics, the company will get the idea of which products are selling and also with the help of
few more results like average item sold per order, response rate etc., the company will come
to know that what products to be stock in the stores.

Second most important point while merchandising is to know the customer base, like not only
focusing on the customers who bought before but also to focus on what they will be going to
buy in the future. With the help of the customer survey, the company come to know that for
what types of products the customers are ready to pay. With the help of these analysis, the
company will come to know that what they should keep in or they should remove from the
merchandise mix.

SALES PER SQUARE FOOT:

With the help of sales per square foot, it is a metric which is used by the retail stores to
measure the amount of profit made by them per square foot. Sales per square foot also helps
the stores to determine the sales efficiency.

Formula: Sales per Square Foot = Revenues / Retail Space.

Where:

Revenues= Total profit made by the store

Retail Space= Total Area occupied by the store

As these sales per square foot is very important in determining the total revenues per square
foot in the store and also to measure the efficiency.

To increase the sales per square foot, the company should improve the layout of the store as
when the company faced a poor sales per square foot is all depends on the poorly utilization
of the stores area.

The company should also focus on the latest arrival of the products in the stores as when the
customers are coming to the stores and didn’t find the latest arrival in the clothing section,
then the customers just moved out to the other stores to buy the products.

The company should also focus onto their employees as the employees are the backbone of
any company. So, the company should give an efficient training to their employees and also
when the employees will have the good knowledge of the products and services, they will be
easily able to convince the customers to buy the products.

SUPPLY CHAIN IN RETAIL INDUSTRY:

As this plays a vital role in the retail industry as the supply of raw materials and equipment to
the company. Let us come to the supply chain of the industry in which the first one is supplier
of the products and raw materials to the factory and from factory, the products are made and
transferred to the distributor. From the distributor, it reached to the whole seller. After the
whole seller, the products reached to the retailer and then to the customers.
 SUPPLIER

RETAILER FACTORY

WHOLE SELLER DISTRIBUTOR

BIG BAZAAR- BUSINESS PROFILE:

As we know that the Big Bazaar is a retail store came under the retail Industry established in
2001 whose head is Ashok Biyani. There are few profiles on which the company is working
like at first the most important to do the business is the appropriate location. For that the
company searched for the high traffic areas along with the low-cost location to earn a good
response from the customers.

After establishing the store, the most important part is merchandise assortment because there
are very large number of categories and also brand options in the store. So, how to make
them all visible easily in the store is a tough task. So, to merchandise the all brands, local
brands and customized products is very important.

After that pricing which plays a vital role in any business profile, like what price should be
put onto the particular product. So, there in Big Bazaar the price of the products is low and
the motive of the company to sell the large volume of products to make equilibrium in the
profit margin.

Now, the source of advertisement in the store is through the television, newspaper and word
of mouth. There are some other king of advertisement also like Celebrity Endorsement, on
the Radio and through social media which is very popular now a days.
After all these, the company focuses on the displaying part of the products and also there are
mini-bazaar in the store and along with there are different sections allocated in the store to
sell different products. The shape of the sections is in U-shaped.

Now, for the customer service in the store and on the online application, the company is
providing the services like cash on delivery and exchange of the items if not required, after
that a lot of offer, discounts and cashback while shopping online. While in the offline mode,
the customer has to take self service to select the item and come to the billing counter to clear
the bill.

BIG BAZAAR - OFFERS AND DISCOUNTS:

With the help of regular offers and discounts given by the company helps them to get more
customer response and also a goodwill in the society which also helps the company to reach
out to their target customer and earn a good profit margin.

Top Offers and Discounts:

Wednesday Bazaar – Before this idea, the company’s motive is to draw the attention of the
customers towards the store and the tag line of this scheme was “Lowest price of the week”.
This idea was also promoted very well and started in 2007.

The best offer till the date given by the Big Bazaar is “Get a Cashback of Rs 1000/- on a
shopping of Rs 14500/- or more, which is given in the month of May 2021, which convinced
a lot of more customers to order online and along with this the company also promoted the
application which is “Future Pay”.

Great exchange offers which is started in the year 2006, in which the customers had to take in
all the junk materials like old newspaper, clothes, toys etc., and in place of those junk items,
the customers will get the coupons and from the next shopping they can redeem those
coupons at the store.
After that the Everyday lowest price which is started in the year 2017-2018, and the motive
behind the offer is to give the items at lowest price every day which also attracted the lots of
new customers.

Big Bazaar Latest Achievements:

Big Bazaar is awarded as the most desirable national super market in 2018.

It is also awarded as the best user of the digital media in the year 2017.

It is awarded as the top desired food and grocery retailer of the year in the year 2016.

It is also awarded as the top shopping destination in retail market in the year 2015.

Future group got the first Indian retailer to be awarded as the Global Innovation award in the
year 2013.

It also got the Retail Supply Chain Excellence award in 2011.

SWOT ANALYSIS:

Strengths:

Due to the large product line along with the brand equity under the same roof, Big Bazaar is
regularly touching the peak of the profit.

The new scheme which made the customer attraction at the peak which is “Daily lower
prices”.

The conversion ratio between the footfall and conversion in the stores.

The biggest strength is that the company offers a whole family shopping experience where
the whole family can shop together.

The new innovations of Big Bazaar application and also the delivery of the products at the
customer’s place.

A very attractive offers and discounts given by the company with the services like cash on
delivery.

The huge investment in the store and also the biggest value retail chain along with a large
infrastructure.
Weaknesses:

The first weakness is that the company is unable to open on time.

The regularly decrement in the total revenue per square feet in the store.

The common perception of the customer is that when the company is providing you the
products with a lower price than the quality will also hamper.

In the store, during the festive season there is over crowd which also hamper the new
customer to visit the store.

The most important weakness is that, the customer has to wait for a long to clear the bill and
there is lack of operational billing counter.

There is lack of branded clothes in the store, which also hamper the brand centric customer to
visit the store. Ex: Van heusen etc.

Opportunities:

The biggest opportunity for the Big Bazaar is the increasing culture of mall in India, and
customer prefer more to shop in mall in comparison to the other stores.

There is a lot of scope on the Indian organized retail as it stands at approximately 4%.

Threats:

There is huge competition among the Big Bazaar and the other retail stores like Reliance, D
mart, Hyper city etc.

There is large number of unorganized retail stores which is also a biggest threat to Big Bazaar
as many of the customers prefer to shop from local stores for the daily requirements.

The biggest threat is that the foreign company is also looking to capture the Retail market of
India.

PESTLE ANALYSIS:

Political Factors:
Big Bazaar as a retail company will be most benefitted when the government will take
initiatives for the growth in those Industries.

Due to the at present economic situation which affect the budget as well, which hamper the
customer purchasing power along with the growth of the industry.

With the help of new technologies encouraged by the government helps the company work
efficiently.

Due to some kind of government policies which affects the company in setting prices of the
product, doing marketing and some other business operations.

There are restrictions on the foreign goods by the government which make the Indian
company easier to serve the varieties of the products to the Indian market.

After all the government should encourage the investment policies to make the shareholders
happy.

The protection measures taken by the government should also be well analyzed to help the
customer feel good.

Economic Factors:

This is very important because with the help of this, the store will come to the decision of
putting the product line and how much quantities of products should be put in the store.

The economic factor also helps in determining the cost required in the business as well as the
profit should the company gain.

The economic factor also helps the company to sustain for a longer period of time.

There are some factors which also affect the company in operation like the disposable income
of the customer, saving rates, household incomes, availability of capital, etc.

So, with the help of all these factors, the company will be able to survive in the market for the
long-term growth.

Social Factors:

There are various social factors which are affecting the company like the analysis of average
age, gender ratio, and also to notice that what kind of brand will be preferred by the customer.
Health-conscious people are increasing and the change in the buying behavior of the
customer are the great factors affecting the company.

As the lifestyle of the people is changing with a fast pace and also the company should
maintain the pace to not to lose their loyal customer.

The nature of people in today’s scenario should also be looked upon like they are preferring
to save the money or invest in some other industries as well.

So. Big Bazaar should focus onto the right marketing strategy along with considering all
these factors and to position the brand in the mind of the loyal customers as well.

Technological Factors:

The first most important thing which is accepting payments in all mode like UPI, Cards and
various other modes of payment which also increase the number of customers to shop online.

The company also developed a fast-billing system and with the use of technology which
helps the company to operate efficiently.

The company started online services like home delivery, ease in shopping, etc. which make
the company grow well and ready to sustain for a long run.

With the help of the technology and use of digital marketing in the promotion which also
helps the company to increase the sales as well and there are some first mover advantages in
the market also.

Legal Factors:

The legal affect like Employee laws and some different laws like consumer protection would
have been a major impact on the Big Bazaar as the company requires a large number of
employees to take care of the customer’s issue even after the sales.

The near expiry date products and the products which are expired should not be delivered to
the customer and also the company should do a regular check on it.

There are business laws which should be needed to be analyzed by the company before
thinking to open any new stores in any areas.

As we saw that there are a large number of customers who are visiting the stores on a daily
basis. So, the company should take a necessary measure for the protection of the customers.
By following these rules, the company will avoid any legal challenges which will also
consume a lot of time to be concluded.

Environmental Factors:

The waste management plays a vital role in the management of the Big Bazaar.

There should be regular assessments of the expiry date and also the products should not be
sold and disposed in an organized way.

Big Bazaar should focus on to shift towards the renewable technologies and also adapt to
eco-friendly methods as well.

The selection of the areas where the store is going to be open should be done in a very safely
manners. So, that there should not be any kind of loses to the environment.

Big Bazaar should discourage the excess printing which also leads to the loss of the
environment.

Big Bazaar should also convince the fast-moving goods brand to do a greener packaging of
the products and to minimize the non-degradable wastes and also to contribute to corporate
the social responsibility as a result.

PORTER’S FIVE FORCES ANALYSIS:

Threats of New Entrants: (Low)

Here are some of the factors which helps Big Bazaar in reducing the threats on new entrants
like the product differentiation of the company is very high and with a good customer base,
its very difficult for the new entrants to attract the customer from one brand to another.

Threats of new entrant will be low if, Big Bazaar can be able to develop the Brand loyalty by
working on its customer relationship management.

Big Bazaar can also do some investment in research and development activities, to develop
few more new brands to attract more customers and also to introduce more products and
services to set a strong differentiation among the competitors.

Threats of Substitute Products and Services: (High)

There are very large number of substitutes of the products available in the market, which
distract the customer from one brand to the other.
When there are any products available in the market with a cheaper price from any other
industry, then the customer will easily shift towards those company.

When the company will offer the same product which the Big Bazaar is offering with the
same price and better quality, then the customer also easily shifts towards the better-quality
products.

Big Bazaar can tackle the threats by promoting their products and clearly emphasizing how
their products is better than the substitutes and it can improve the quality and also with set a
strong differentiation to discourage the customers from using the substitutes products.

Rivalry Among Existing Companies: (High)

There is very tough competition among the rivalry of the Big Bazaar as they all are targeting
the same market to earn profit which also increase the pressure on Big Bazaar and also limit
the growth of each and others potential.

It will be low if there are small number of competitors in the market, but in reality, there are
very large number of players in the market.

The exit barriers are low, which means that any company will leave the industry without
incurring a heavy loses.

The rivalry will also be high when the customers are not loyal and they can easily switch to
the other brands due to the low switching costs.

Big Bazaar can tackle the rivalry by trying to fulfill the needs and experience of the
customers and also make the strong differentiation basis among the competitor.

Bargaining Power of Buyers: (High)

From the word Bargaining power of buyers, it is a kind of pressure which is exerted on the
company to get the particular products at a cheaper price and to make the competition high in
the market.

When there is strong bargaining power, then there is decrement in the profit along with
making the industry more competitive.

Due to the large number of stores in the market with a lesser number of customer base, make
the bargaining power of buyers high.
The company should try to reduce the bargaining power of buyers by increasing and
diversifying the customer base along with developing few new products and also to target
new customer which will increase the profit also and help in reducing the bargaining power
of buyers.

Bargaining Power of Suppliers: (Low)

When there is high bargaining power of suppliers, then the pressure exerted on the company
by the suppliers by reducing the quality of products and also putting the prices high and make
the products unavailable, which also leads to reduce the profitability and also to increase the
competition in the industry.

The bargaining power is high when, there is a smaller number of suppliers in the market and
there in high demand of the products in Big Bazaar, along with the high products
differentiation offered by the suppliers.

Big Bazaar should not stick onto just one or two suppliers, the company should move to
substitutes to make the bargaining power of suppliers low to increase profit.

Big Bazaar should also find the alternate way to manufacture the products as the demand in
increasing day by day and to reduce the bargaining power of suppliers, along with Big Bazaar
should also do a cost-benefit analysis to make the organization profitable.

CONCLUSION: