1

A
Research report on
REASON BEHIND POPULARITY OF BIG BAZAAR

Submitted BY:

NAME : Vivek Kumar

COURSE : MBA
SEMESTER : 2ND
SECTION : (C)
ROLL No. : 72

Submitted To
Prof. Commander Surendra Prakash

INTERNATIONAL INSTITUTE OF BUSINESS STUDIES

KHB MAIN ROAD, R.T. NAGAR POST, BANGALORE-560032
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Sr. Title Page

No No.
1 Summary 2

2 Objective 3

3 Retail in India 4-7

4 Company Profile 8 - 14
5 SWOT Analysis 14-16

6 Literature Review 16

5 Competitor’s list 16
6 Research Methodology 18
7 Data interpretation and questionnaire 18-36
8 Findings 37
9 Conclusion 37
10 Recommendations 37

11 Bibliography 38

Index
 3

ACKNOWLEDGEMENT
I VIVEK KUMAR, hereby take this opportunity to express
my thankfulness toward my faculty of Workshop of
research Methodology prof. commander Surerendra
Prakash for his valuable suggestion and guideline.
Without his help it would not been possible to develop
my research paper.
I express my heartily thanks to our marketing faculty
Mr. Narayan Prasad also who helped me in
conducting this research work through his valuable
suggestions.
VIVEK KUMAR
( )
 4

SUMMARY

Big Bazaar, the flagship retail chain of the Future

Group, is on the verge of achieving a unique milestone
in the History of World Retail – by being the first
hypermarket format in the globe to rollout fastest 140
stores in a short span of nine years.

Currently, Big Bazaar has 140 stores in the country. Big

Bazaar had opened three stores in a single day on
30thSeptember 2008. These three stores were opened
in Pune (Kalyani Nagar), Cuttack (Darga Bazaar)
and Delhi (Rajouri Garden).

Big Bazaar’s journey began in October 2001, when the

young, first generation entrepreneur Kishore Biyani
opened the country’s first hypermarket retail outlet in
Kolkatta (then Calcutta). In the same month, two more
stores were added – one each in Hyderabad and
Mumbai, thus starting on a successful sojourn which
began the chapter of organized retailing in India.

This study was done to know that, what are the reasons
which made Big Bazaar so poular and profit maker, do
customers are really satisfied with the merchandising
Mix present in the Big bazaar and also to find out how
the store envirnoment influences the shopping
behaviour of the customer and to know which section in
the Big bazaar have good merchandising mix.
 5

Objectives of study

I. To study marketing strategy of Big Bazaar

II. To study of effectiveness of sales promotion in Big Bazaar
III.To study the consumer satisfaction in Big Bazaar
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Retail in India

Retailing consists of those business activities involved in the

sale of goods and services to consumers for their personal,
family, or household use. Retailing comprises of four elements
customer orientation, coordinated effort, value-driven, and goal
orientation.

The word "Retail" originates from a French-Italian word. Retailer

- someone who cuts off or sheds a small piece from something.
Retailing is the set of activities that markets products or
services to final consumers for their own personal or household
use. It does this by organizing their availability on a relatively
large scale and supplying them to customers on a relatively
small scale. Retailer is a Person or Agent or Agency or
Company or Organization who is instrumental in reaching the
Goods or Merchandise or Services to the End User or Ultimate
Consumer. The topic “Reason behind Popularity of Big Bazaar”
present in any retail store greatly influences the customer
satisfaction level and the customer perception towards that
store. Merchandising is one of the hot issue in todays retail
competition world which is very important for all the retail store
to follow that.

This study was done to know that, do big bazaar is really

satisfying with its merchandising Mix to the customers and also
to find out how the store envirnoment influences the shopping
behaviour of the customer and to know which section in the Big
 7

bazaar have good merchandising mix and to know how the

store environment can be improved.

INTRODUCTION

The word "Retail" originates from a French-Italian word.

Retailer-someone who cuts off or sheds a small piece from
something. Retailing is the set of activities that markets
products or services to final consumers for their own personal
or household use. It does this by organizing their availability on
a relatively large scale and supplying them to customers on a
relatively small scale. Retailer is a Person or Agent or Agency or
Company or Organization who is instrumental in reaching the
Goods or Merchandise or Services to the End User or Ultimate
Consumer.
 8

Indian Retail Industry:

Indian retail industry is the largest industry in India, with an

employment of around 8% and contributing to over 10% of the
country's GDP. Retail industry in India is expected to rise 25%
yearly being driven by strong income growth, changing
lifestyles, and favorable demographic patterns.
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It is expected that by 2016 modern retail industry in India will

be worth US$ 175- 200 billion. India retail industry is one of the
fastest growing industries with revenue expected in 2007 to
amount US$ 320 billion and is increasing at a rate of 5% yearly.
A further increase of 7-8% is expected in the industry of retail
in India by growth in consumerism in urban areas, rising
incomes, and a steep rise in rural consumption. It has further
been predicted that the retailing industry in India will amount to
US$ 21.5 billion by 2010 from the current size of US$ 7.5
billion.

Shopping in India has witnessed a revolution with the

change in the consumer buying behavior and the whole format
of shopping also altering. Industry of retail in India which has
become modern can be seen from the fact that there are multi-
stored malls, huge shopping centers, and sprawling complexes
which offer food, shopping, and entertainment all under the
same roof. Indian retail industry is expanding itself most
aggressively; as a result a great demand for real estate is being
created. Indian retailers preferred means of expansion is to
expand to other regions and to increase the number of their
outlets in a city. It is expected that by the end of 2010, India
may have 600 new shopping centers. In the Indian retailing
industry, food is the most dominating sector and is growing at a
rate of 9% annually. The branded food industry is trying to
enter the India retail industry and convert Indian consumers to
branded food. Since at present 60% of the Indian grocery
basket consists of non- branded items. Indian retail industry is
progressing well and for this to continue retailers as well as the
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Indian government will have to make a combined effort. Indian

retailing industry has seen phenomenal growth in the last five
years. Organized retailing has finally emerged from the
shadows of unorganized retailing and is contributing
significantly to the growth of Indian retail sector. The “India
Retail Sector Analysis report helps clients to analyze the
opportunities and factors critical to the success of retail
industry in India.

Indian retail industry is going through a transition phase. Most

of the retailing in our country is still in the unorganized sector.
The spread out of the retails in US and India shows a wide gap
between the two countries. Though retailing in India is
undergoing an exponential growth, the road ahead is full of
challenges.

KEY CHALLENGES:

➢ LOCATION

➢ MERCHANDISE

➢ PRICING

➢ TARGET AUDIENCE
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Types of Indian retail

➢
➢ Convenient stores

➢ Branded stores

➢
➢ Specialty stores
➢ Departmental stores
➢
➢ Super markets
➢ Discount stores
➢
➢ Hyper markets
➢ Shopping markets

Company profile

BIG BAZAAR SUPER CENTRE

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Big Bazaar Hyper mart chain in

India
Outlet 140 out lets
Parent group Future group
Owner Kishore Biyani (CEO)
Founded 2001
Head quarter Jogeshwari, Mumbai
Industry Retail
Website www.bigbazaar.com
Tagline Is sesata aur accha kahin
nahi
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Big Bazaar:

The 96th Big Bazaar of Pantaloons Retail [India] Ltd (Now, it has
renamed as “Future Value Retail Limited”) was opened in
Mysore in 26th Septeber 2008. It has around 250 employees
with an occupied space of 82,055 sq.ft and catering to the
needs of 13, 00,000 Mysoreans.

At Big Bazaar Super centre, one can definitely get the best
product at better price. It sells variety of merchandise at
affordable rates; the prices which it claims are lowest in the
city. Usually, the items are clubbed together for offers to
customers and it also offers weekend as well as monthly
discounts.

At Big Bazaar Super centre one can a find variety of

Departments as shown below.

➢ FOOD BAZAAR

➢ GENERAL MERCHANDISE

➢ APPARELS OR FASHION @ BIG BAZAAR

➢ NEW BUSINESS DEVELOPMENT

➢ DEPOT

➢ HOME BAZAAR

➢ NAVARAS

These departments are managed by two departments. They

are

✔ OPERATOIONAL DEPARTMENT
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✔ SUPPORTING DEPARTMENTS

Big Bazaar, a part of the future Group, is a hypermarket

offering a huge array of goods of good quality for all at
affordable prices. Big Bazaar with over 140 outlets in a different
part of India is present in both the metro cities as well as in the
small towns. Big Bazaar has no doubt made a big name in the
retail industry of India, moreover shopping here is further made
a memorable experience with the varied rates of discounts on
products as well as discount vouchers available in a variety of
amounts, like INR 2000, INR 3000, INR 4000, INR 5000 and INR
10000 on all Big Bazaar products and accessories.

The variety of product range in Big Bazaar Super centre:

This large format store comprise of almost everything

required by people from different income groups. It varies from
clothing and accessories for all genders like men, women and
children, playthings, stationary and toys, footwear, plastics,
home utility products, cosmetics, crockery, home textiles,
luggage gift items, other novelties, and also food products and
grocery. The added advantage for the customers shopping in
Big Bazaar is that there are all time discounts and promotional
offers going on in the Big Bazaar on its salvable products.

Future Value Retail India Limited:

The leading retail formats under this include:

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○ Big Bazaar

○ Central

○ Food Bazaar

○ Home Town

○ E Zone

○ Depot

ORIGIN OF THE ORGANISATION:

Big Bazaar is a chain of department stores in India,

currently with 140 outlets. It is owned by the Future value
Retail India Ltd Future Group. It works on the same economy
model as Wal-Mart and has considerable success in many
Indian cities and small towns. The idea was pioneered by
entrepreneur CEO of Future Group. Currently Big Bazaar
stores are located only in India. It is the biggest and the
fastest growing chain of department store and aims at being
350 stores by the end of year 2010.

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. Big Bazaar was founded by Kishore Biyani in the
year 2001. At Big Bazaar, you will definitely get the best
products at the best prices - that’s what we 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
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this is just the beginning. Big Bazaar plans to add much more
to complete your shopping experience.

Future value Retail (India) Limited is India’s leading retailer

that operates multiple retail formats in both the value and
lifestyle segment of the Indian consumer
market. Headquartered in Mumbai (Bombay), the company
operates over 7 million square feet of retail space, has over
1000 stores across 51 cities in India and employs over 25,000
people.

The company’s leading formats include Pantaloons, a

chain of fashion outlets, Big Bazaar, a uniquely Indian
hypermarket chain, Food Bazaar, a supermarket chain,
blends the look, touch and feel of Indian bazaars with aspects
of modern retail like choice, convenience and quality and
Central, a chain of seamless destination malls. Some of its
other formats include, Depot, Shoe Factory, Brand Factory,
Blue Sky, Fashion Station, all, Top 10, bazaar and Star and
Sitars. The company also operates an online portal,
futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited,

operates Home Town, a large-format home solutions store,
Collection i, selling home furniture products and E-Zone
focused on catering to the consumer electronics segment.

Pantaloons Retail had been awarded by the International

Retailer of the Year 2007 by the US-based National Retail
Federation (NRF) and the Emerging Market Retailer of
the Year 2007 at the World Retail Congress held in
Barcelona.
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Pantaloons Retail is the flagship company of Future Group, a

business group catering to the entire Indian consumption
space some of its leading retail formats include, Pantaloons,
Big Bazaar, Central, Food Bazaar, Home Town, ozone, Depot,
Future Money and online retail format, futurebazaar.com.
Future Group companies includes, Future Capital Holdings,
Future Generally India Indus League Clothing and Galaxy
Entertainment that manages Sports Bar, Brew Bar and
Bowling Co. Future Capital Holdings, the group’s financial
arm, focuses on asset management and consumer Credit.

Future Group’s vision is to, “deliver Everything, Everywhere,

Every time to Every Indian Consumer in the most profitable
manner.”

The journey of Big Bazaar can be divided into two phases – one
pre and the other post.January 26th, 2005, when the company
rewrote the retail chapter in India, with the introduction of a
never-before sales campaign “Sasbe Sasta Din”. In just one day,
almost the whole of India descended at various Big Bazaar
stores in the country to shop at their favourite shopping
destination.

Further, what followed was the time and again rewriting of the
Indian Retail experience, wherein understanding of the Indian
consumers reflected in the products and services offered,
creating innovative deals, expanding in the tier II and tier III
towns, tying up with branded merchandise to offer exclusive
products and services to its customers.

Big Bazaar is present today in 59 cities and occupying over 5

million sq.ft. retail space and driving over 110 million footfalls
into its stores. The format is expecting the number of footfall in
the stores to increase by over 140 million by this financial year.
Over the years, Mr. Biyani for his vision and leadership, and Big
Bazaar for its unique proposition to its customers’, have
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received every prestigious consumer awards both nationally

and internationally.

Says Rajan Malhotra, President, Strategy & Convergence, Big

Bazaar, “What is important in our journey is not the number of
stores, but the customers’ faith in us. It’s the India and the
Indians, which have helped us, reach this feat in such a short
time span and today our country is creating a history in the
World organized Retail.

Rajan Malhotra, who is also the first employee of Big Bazaar,

joining the organization in early 2001 adds, “Since beginning,
we have kept Big Bazaar as a soft brand, which reflects
the India and the Indianess. We believed in growing with the
society, participating and celebrating all regional and local
community festivals, giving customers preferences above
everything else.”

Every Big Bazaar is a small family by its own and the head of
the family – Karta – is the store manager. Kishore Biyani, the
CEO of the Future Group, has a vast understanding of the
consumer’s insight, has inculcated the habit of ‘observing,
understanding customers’ behaviour’, in every employee of the
group. Future Group is confident of the Indian Retail Story.
Future Group plans to have 300 stores and is expecting
revenues of Rs 13,000 crore by year 2011.

SWOT ANALYSIS:

Strengths:-

• EDLP [ Every Day Low Pricing]

• Point of Purchase promotions
• Experienced marketing team & executive staff.
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• Strong culture, ethics and values are followed

• Emphasis on providing total customer satisfaction
• High brand equity in evolving retail market
• State-of-the-art infrastructure of big bazaar outlet
• Point of purchase promotion to increase the purchase
• Variety of stuff under single roof
• Increase sales with the help of healthy competition
between different department
• Maintains good employer-employee relation

Weakness:-

• Failing revenue/ Sq.ft

• Unable to meet store opening targets.
• General perception.
• Unavailability of popular brand items with regard to
clothing.

Opportunities:-

• Population of the country is growing where the scope of

market is kept on increasing for the retail sector.
• Organized Retail, presently nearly 5% in India so it acts as
a great opportunity to the organization for its growth.
• Evolving consumer preferences.
• Economy is developing as the employment opportunities
are increasing and the income of the people is also
increasing which increases life standards of people.
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Threats:-

• Stiff Competition
• Advancement of technology day by day.
• Government policies.
• Unorganized Retail sector
• Foreign direct investment cause more problems in future
because of that many mergers and acquisition are
happening in Indian retail sector

REVIEW OF LITERATURE

Merchandise mix and the store envirnoment present in

any retail store greatly influences the customer satisfaction
level and the customer perception towards that
store.Merchandising is one of the hot issue in todays retail
competition world which is very important for all the retail store
to follow that.

This study was done to know that, do customers are

really satisfied with the merchandising Mix present in the Big
bazaar and also to find out how the store envirnoment
influences the shopping behaviour of the customer and to know
which section in the Big bazaar have good merchandising mix
and knows how the store environment can be improved.

Competitors of Big bazaar

I. Reliance retail
II. Spencer
III.More
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IV. Tata Croma

V. Shoppers Stop etc.

Research methodology

I. Primary source of data

• Visiting Big Bazaar store
• Personal interaction with customers
• Structured questionnaire
II.Secondary source of data
• Websites of pantaloons and Big Bazaar
• Other retail related websites

DATA ANALYSIS AND

INTERPRETATION

Questionnaire to the customer who shop at the store:

1. Do you frequently visit shops at Big Bazaar super

centre?
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Table: 1

Response No of customer
Yes 72
No 28

Chart 1:

Inference:

From the above chart we can ascertain that majority of

customers i.e., around 72% of customers frequently visits to
the store and 28% of the customer visits the store rarely.

2. How frequently do you shop at Big Bazaar super

Centre?
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Table:2

Response No of customer

Every week 16

Once in two week 24

Once in three week 34

Once in a month 26

Chart 2:

Inference:

From the above table we can analyze that the majority of the
customer i.e. 34out of 100 customer visits store once in three
week , followed by 26 customer once in a month. Thus we can
say that majority of customer visit big bazaar once in three
week, may be during weekends. We can conclude that the
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customer do not visit Big Bazaar for their petty daily purchase,
they are visit to other stores

3. Why do you shop at Big Bazaar super centre?

Table: 3

Reason No. of customers

Low price 42

Product variety 26

Quality 08

Location 24

Chart 3:

Inference:

From the data collected we can determine that most of the

customer visits the store by perception that product are low
price i.e. 42% and 26% for the product variety and 24% for the
location. From this we can say that Big Bazaar have expand
their product variety.and other 8% of the consumers are visit
seeking the quality.

4. Do You feel that you find different variety of

product’s in Big Bazaar super centre?

Table: 4

Response No of customer
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Yes 69
No 31

Chart 4:

Inference:

From the data collected , we can conclude that majority of the

customer that is 69 customer out of 100 customer said that
they find different variety of product in Big Bazaar and 31
customer said they don’t.

5. Do you find the specific brand that you look in the Big
Bazaar super centre?

Table: 5

Response No of customer
Yes 57
No 43

Chart 5:

Inference:

Here from the above pie chart, 57 customer said that they find
specific brand that they look in Big Bazaar and 43 customer
 26

said No, from this we can conclude that Big Bazaar have
different variety of product not that much variety of product
and they have to rethink about the brand available in their
store and they have to expand their brand availability.

6. How much time do you spend while shopping at Big

Bazaar super Centre?

Table: 6

Response No of customer
30-60 minutes 22
1-2 hrs 18
2-3 hrs 34
Above 3 hrs 26

Chart 6:

Inference:

From the chart , we came to know that 34 customer’s out of

100 customer shop up to the period of 2-3 hour’s and by 26
customer shop up to the duration of above 3 hrs , this means
Big Bazaar have more product to shop.
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7. Which section do you visit first when you enter Big

Bazaar super centre?

Table: 7

Response No of customer
Food bazaar 46
Apparels 16
Household utensils 28
Electronic section 10

Chart 7:

Inference:

Most of the customer who visits to the Big Bazaar, would like to
visit to the food bazaar first which means it shows customer
preference towards food bazaar and followed by House hold
utensils.

8. Do you agree that this store has modern-looking

equipment and fixtures?

Table: 8

Response No of customer
Strongly disagree 06
Somewhat disagree 11
Neutral 31
Somewhat agree 47
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Strongly agree 05
Chart 8:

Inference:

From the above chart, we get to know that most of the

customer is somewhat satisfied with modern fixtures and
equipment present inside the big bazaar.

9. The store layout at this store makes it easy for

customers to find what they need

Table: 9

Response No of customer
Strongly disagree 18
Somewhat disagree 36
Neutral 26
Somewhat agree 12
Strongly agree 08
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Chart 9:

Inference : From the above that, we come to know that

majority of the customer said that the store layout is not up to
the mark, i.e. they are not satisfied with the store lay out
present in the Big Bazaar.

10. The store layout at this store makes it easy for

customers to move around the store?

Table: 10

Response No of customer
Strongly disagree 07
Somewhat disagree 13
Neutral 28
Somewhat agree 41
Strongly agree 11

Chart 10

Inference :
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From the data collected with this question, we come to know

that may of the responses was somewhat agree that, the store
layout at this store makes it easy for customers to move
around the store.

11. How is the cleanliness/Hygienic of floor inside the

store?

Table: 11

Response No of customer
Excellent 30
Good 18
Ok 42
Bad 10

Chart-11

Inference:

From the data collected with this question, 42 out of 100

customer to respond about cleaning of store is ok, 10 customer
respond is bad, 30 customer is excellent, and 18 customer
respond is good , the inside store cleanliness , so to improve
the cleanliness inside the store,
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12. How is the internal environment of the store?

Table: 13

Response No of customer
Excellent 42
Good 28
Ok 20
Bad 10

Chart-12

Inference

From the data collected with this question, we come to know

that may of the responses most of the customers responses is
excellent, the inside store environment, but still to improve the
inside the store environment,

13. How do you rate shopping in the Big Bazaar?

Table: 13
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Response No of customer
good for shopping 43
good environment inside 39
big bazaar
Other 18

Chart-13

Inference :

From this table and respones of the cutomer, out of 100, 43

customers are fell to enter good shopping in supercentre, 39
customers fell good enviroment inside the bigbazaar
supercentre , and 18 customers fell other resons to enter the
bigbazaar supercentre.

Questionnaire

I. Do you frequently visit shops at Big Bazaar super Centre?

a)
b) Yes
c) No
I.
II. How frequently do you shop at Big Bazaar super Centre?
a)Every week
b) ones in two weeks
c)ones in three weeks
d)ones in a month
III. Why do you shop at Big Bazaar super Centre?
 33

a) Low price
b)Product variety
c) Quality
d)Location

I. Do You feel that you find different variety of product’s in

Big Bazaar super centre?
a) Yes
b) No
I. Do you find the specific brand that you look in the Big
Bazaar super centre?
a)
b) Yes
c) No

How much time do you spend while shopping at Big Bazaar

super centre?

a)
b) 30-60 min
c) 1-2 hours
d) 2-3 hours
e)
f) Above 3 hours

vii. Which section do you visit first when you enter Big Bazaar
super centre?
 34

a)
b) Food
c) Apparels
d) House hold
e)
f) Electronic section

viii. Do you agree that this store has modern-looking equipment

and fixtures?

a)
b) Strongly disagree
c) Somewhat disagree
d)
e) Neutral

iX. The store layout at this store makes it easy for customers to
find what they need

a)
b) Strongly agree
c) Strongly digree
d)
e) Somewhat agree
f) Strongly agree
g)
h) neutral
 35

X. Do you think, this store has good parking facilities?

a) Yes

b) No

Xi. How is the cleanliness/Hygienic of floor inside the store?

a)
b) Excellent
c) Good
d) O.K
e)
f) Not good

xii. Do you think, this store has good parking facilities?

a)
b) Yes
c) No

xiii. How do you feel about playing music inside the store when
you are shopping?
 36

a)
b) It must
c) Good , can be played
e) sometimes g)
d) ok h) it is not
f) needed

Xiv. What do feel about location of Big Bazaar?

a) Far from city

b) Not so far
c) Right
d) Just right

xv. Do you agree that this store has modern-looking equipment

and fixtures?

a)
b) Strongly disagree
c) Somewhat disagree
d)
e) Somewhat agree
f) Strongly agree
 37

g) Neutral

FINDINGS

Big Bazaar is popular because of these reasons:-

➢ They provide guaranteed best products at the best prices

➢ Gives offers to attract the customers like-

• “Sabse sasta teen din”(The cheapest three days)

• “Purana do naya lo”(Give old, take new)

➢ Wide range of products under one roof

➢ Affordable price and good product range for middle class

CONCLUSITION AND RECOMENDATIONS

 38

BIG Bazaar is performing well and also growing well. Within 9

years of its journey it become 2 to 140 in term of number of
stores and also become popular in Indian family. It should keep
this pace up keeping these suggestions in mind –

I. Always pay attentions on customers’ suggestions and

complains
II. Check out system should be fast
III.Sales representative should have good product knowledge
IV.Billing system should be more fast

BIBLIOGRAPHY
Visited BIG BAZAAR store

1.Jaynagar
2.kormangala
web reference

1. www.bigbazaar.com
2. www.pantaloonsindia.com