Comparative Study On Dmart and Big Bazaar

COMPARATIVE STUDY ON D-MART AND BIG BAZAAR
PROJECT REPORT ON
“COMPARATIVE STUDY ON D-MART AND BIG BAZAAR”
A Project submitted to
University of Mumbai for partial completion of the degree of

Bachelor of Management Studies
Under the Faculty of Commerce
Submitted by
'RACHCHA VINAYAK SATYANARAYAN'

Under the guidance of
Ms. Momin M. Ragheeb
B.N.N COLLEGE
BHIWANDI, DIST, THANE-421302
Academic Year: 2020 – 2021CERTIFICATE
1
Mr. RACHCHA VINAYAK SATYANARAYAN
CERTIFICATE
This is to certify that Ms./Mr. 'RACHCHA VINAYAK SATYANARAYAN'has worked and

duly completed her/his Project Work for the degree of Bachelor of Management Studies under
the Faculty of Commerce and her/his project is entitled, “COMPARATIVE STUDY ON D-
MART AND BIG BAZAAR” under the supervision of PROF.MOMIN M. RAGHEEB The
information contained in this Project Work is true and original to the best of our knowledge and
belief.
Project Guide Principal

PROF.MOMIN DR ASHOK D. WAGH
M.RAGHEEB
Coordinator Examiner
DR. VIKAS UBALE &
PATANKAR JAIN
2
Declaration
I, the undersigned 'RACHCHA VINAYAK SATYANARAYAN' of PADMASHRI

ANNASAHEB JADHAV’S B.N.N COLLEGE OF ARTS, SCIENCE & COMMERCE,
BHIWANDI T.Y.B.M.S., Semester – VI (2019-2020), hereby declare that the work embodied in
this project work titled “COMPARATIVE STUDY ON D-MART AND BIG BAZAAR”,
forms my own contribution to the research work carried out under the guidance of PROF.
MOMIN M. RAGHEEB is a result of my own research work and has not been previously
submitted to any other University for any other Degree/ Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly indicated as
such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and presented
in accordance with academic rules and ethical conduct.
Place: Mumbai
Date:
Signature of the Student
3
ACKNOWLEDGEMENT
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous. I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.
I would like to thank my Principal, DR ASHOK D. WAGH for providing the necessary facilities
required for completion of this project.
I take this opportunity to thank our Coordinator, DR. VIKAS UBALE & PATANKAR JAIN
, for her moral support and guidance.
I would also like to express my sincere gratitude towards my project guide, Ms. Momin M.
Ragheeb whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books and
magazinesrelated to my project. Lastly, I would like to thank each and every person who directly
or indirectly helped me in the completion of the project especially my Parents and Peers who
supported me throughout my project.

4
INDEX
1. INTRODUCTION ON D- 6
MART AND BIG BAZAAR
2. RESEARCH 15
METHODOLOGY
3. LITERATURE 17
REVIEW
4. PROFILE OF THE 22
ORGANIZATION
5. COMPANY PROFILE 27
OF D-Mart
6. DATA ANALYSIS 32
AND
INTERPRETATION
7. CONCLUSION 40
8. SUGGESTIONS 41
9. BIBLIOGRAPHY 41
5
CHAPTER 1
INTRODUCTION ON D-MART AND BIG BAZAAR
1.1 INTRODUCTION
Retail:
Retail is the process of selling consumer goods or services to customers through multiple channels
of distribution to earn a profit. Retailers satisfy demand identified through a supply chain. The
term "retailer" is typically applied where a service provider fills the small orders of a large number
of individuals, who are end-users, rather than large orders of a small number of wholesales,
corporate or government clientele. Shopping generally refers to the act of buying products.
Sometimes this is done to obtain final goods, including necessities such as food and clothing;
sometimes it takes place as a recreational activity. Recreational shopping often involves window
shopping and browsing: it does not always result in a purchase. Retail markets and shops have a
very ancient history, dating back to antiquity. Some of the earliest retailers were itinerant peddlers.
Over the centuries, retail shops were transformed from little more than "rude booths" to the
sophisticated shopping malls of the modern era. Most modern retailers typically make a variety of
strategic level decisions including the type of store, the market to be served, the optimal product
assortment, customer service, supporting services and the store's overall market positioning. Once
the strategic retail plan is in place, retailers devise the retail mix which includes product, price,
place, promotion, personnel and presentation. In the digital age, an increasing number of retailers
are seeking to reach broader markets by selling through multiple channels, including both bricks
and mortar and online retailing. Digital technologies are also changing the way that consumers pay
for goods and services. Retailing support services may also include the provision of credit, delivery
services, advisory services, stylist services and a range of other supporting services. Retail shops
occur in a diverse range of types and in many different contexts – from strip shopping centres in
residential streets through to large, indoor shopping malls. Shopping streets may restrict traffic to
pedestrians only. Sometimes a shopping street has a partial or full roof to create a more comfortable
6
shopping environment – protecting customersfrom varioustypes of weather conditions such as

extreme temperatures, winds or precipitation. Forms of non-shop retailing include online retailing
(a type of electronic-commerce used for business-to-consumer (B2C) transactions) and mail order.
HISTORY OF RETAILING
Since independence, barter is considered to be the oldest form of retail trade. In India, retail has
evolved to support the unique needs of our country given its size and complexity. Hats, Mandis
and Melas have always been a part of the Indian landscape. They will continue to be present in
most parts of the country and form an essential part of life and trade in various areas. The single
largest retail chain existing in the country is the Public Distribution System (PDS). The evolution
of the public distribution of 5 Indian Retail Market Embracing a new trajectory grains in India
has its origin in the ‘rationing’ system introduced by the British during the World War II. The
System was started in 1939 in Bombay and subsequently extended to other cities and towns. By
the year 1946, as many as 771 cities/towns were covered. The system was abolished post war,
however, on attaining Independence, India was forced to reintroduce it in 1950 in the face of
renewed inflationary pressures in the economy. The evolution of Indian retail would be
incomplete without point out the Canteen Stores Department and the Post Offices in India. The
Khadi & Village Industries (KVIC) was also set up post-independence. Today, there are
more than 7,050 KVIC stores across the country. The Cooperative movement was again
championed by the government which set up Kendriya Bhandras in 1963. In Maharashtra,
Bombay Bazaar, which stores under the label Sahakari Indian marketplace has transformed
dramatically. However, from the 1950’s to the 80’s investments in various industries was a limit
due to the low purchasing power in the hands of the consumer and the Government’s policies
favouring the small- scale sector. It was at this time that many steps towards liberalization was
taken in the period of 1985-90. It was at this time many restrictions on private companies were
lifted, and in the 1990’s the Indian economy slowly progressed from state led to becoming
‘market friendly’. While independent retail stores chain like Akbar ally’s, Vivek’s and Nalli’s
have existed in India for a long time, the first attempt at organized retailing was noticed in the
textiles sector. One of the pioneers in this field was
Raymond’s which set up stores to retail fabric. It also developed a dealer network to retail its
fabric. These dealers sold a mix of fabrics of various textile companies. The Raymond’s
distribution network today of 20,000 retailers and over 429 showrooms across the country. Other
textile manufacturers who also set up their own retail chains were reliance – which set up Vimal
Showrooms – and Garden Silk Mills with Garden Vareli. It was but natural that with the growth
of textile retail, readymade branded apparel could not be far behind and the next wave of
organized retail in India saw the likes of Madura Garments, Arvind Mills, etc, set up showrooms
for branded men’s wear. With the success of the branded men’s wear store, the new age
departmental store arrived in India in the early nineties. This was the beginning of new retail era
in India. The fact that post liberalization, the economy had opened up and a new large middle
class with spending power had emerged, helped shape this sector. The vast middle-class market
demanded value for money products, a better shopping ambience, more convenience and one
stop shopping. This has fueled the growth of departmental stores, supermarkets and other
specialty stores. The concept of retail as entertainment came to India with the advent of malls.
The development of malls is now visible not only in the major metros but also in the other parts
of the country.
7
GROWTH OVER 1997-2010

India in 1997 allowed foreign direct investment (FDI) in cash and carry wholesale. Then, it
required government approval. The approval requirement was relaxed, and automatic permission
was granted in 2006. Between 2000 to 2010, Indian retail attracted about $1.8 billion in foreign
direct investment, representing a very small 1.5% of total investment flow into India. Single
brand retailing attracted 94 proposals between 2006 and 2010, of which 57 were approved and
implemented. For a country of 1.2 billion people, this is a very small number. Some claim
one of the primary restraints inhibiting better participation was that India required single brand
retailers to limit their ownership in Indian outlets to 51%. China in contrast allows 100%
ownership by foreign companies in both single brand and multi-brand retail presence.
Indian retail has experienced limited growth, and its spoilage of food harvest is amongst the
highest in the world, because of very limited integrated cold-chain and other infrastructure. India
has only 5386 stand-alone cold storages, having a total capacity of 23.6 million metric tons.
However, 80 percent of this storage is used only for potatoes. The remaining infrastructure
capacity is less than 1% of the annual farm output of India, and grossly inadequate during peak
harvest seasons. This leads to about 30% losses in certain perishable agricultural output
in India, on average, every year. Indian laws already allow foreign direct investment in cold-
chain infrastructure to the extent of 100 percent. There has been no interest in foreign direct
investment in cold storage infrastructure build out. Experts claim that cold storage infrastructure
will become economically viable only when there is strong and contractually binding demand
from organized retail. The risk of cold storing perishable food, without an assured way to move
and sell it, puts the economic viability of expensive cold storage in doubt. In the absence of
organized retail competition and with a ban on foreign direct investment in multi-brand retailers,
foreign direct investments are unlikely to begin in cold storage and farm logistics infrastructure.
Until 2010, intermediaries and middlemen in India have dominated the value chain. Due to a
number of intermediaries involved in the traditional Indian retail chain, norms are flouted and
pricing lacks transparency. Small Indian farmers realize only 1/3rd of the total price paid by the
final Indian consumer, as against 2/3rd by farmers in nations with a higher share of organized
retail. The 60%+ margins for middlemen and traditional retail shops have limited growth and
prevented innovation in Indian retail industry. India has had years of debate and discussions on
the risks and prudence of allowing innovation and competition within its retail industry.
Numerous economists repeatedly recommended to the Government of India that legal
restrictions on organized retail must be removed, and the retail industry in India must be opened
to competition. For example, in an invited address to the Indian parliament in December
2010, Jagdish Bhagwati Professor of Economics and Law at the Columbia University analysed
the relationship between growth and poverty reduction, then urged the Indian parliament to
extend economic reforms by freeing up of the retail sector, further liberalization of trade in all
sectors, and introducing labour market reforms. Such reforms Professor Bhagwati argued will
accelerate economic growth and make a sustainable difference in the life of India's poorest. A
2007 report noted that an increasing number of people in India are turning to the services
9sector for employment due to the relative low compensation offered by the traditional
agriculture and manufacturing sectors. The organized retail market is growing at 35 percent
annually while growth of unorganized retail sector is pegged at 6 percent. The Retail Business in
India is currently at the point of inflection. As of 2008, rapid change with investments to the tune
8
of US$25 billion were being planned by several Indian and multinational companies in the next 5
years. It is a huge industry in terms ofsize and according to India Brand Equity Foundation
(IBEF), it is valued at about US$395.96 billion. Organized retail is expected to garner about 16-
18 percent of the total retail market (US $65–75 billion) in the next 5 years.
India has topped the A.T Kearney’s annual Global Retail Development Index (GRDI) for the
third consecutive year, maintaining its position as the most attractive market for retail
investment. The Indian economy has registered a growth of 8% for 2007. The predictions for
2008 is 7.9%. The enormous growth of the retail industry has created a huge demand for real
estate. Property developers are creating retail real estate at an aggressive pace
and by 2010, 300 malls are estimated to be operational in the country.
GROWTH AFTER 2011

Before 2011, India had prevented innovation and organized competition in its consumer retail
industry. Several studies claim that the lack of infrastructure and competitive retail industry is a
key cause of India's persistently high inflation. Furthermore, because of unorganized retail, in a
nation where malnutrition remains a serious problem, food waste is rife. Well over 30% of food
staples and perishable goods produced in India spoils because poor infrastructure and small retail
outlets prevent hygienic storage and movement of the goods from the farmer to the consumer.
One report estimates the 2011 Indian retail market as generating sales of about $470 billion a
year, of which a minuscule $27 billion comes from organized retail such as supermarkets, chain
stores with centralized operations and shops in malls. The opening of retail industry to free
market competition, some claim will enable rapid growth in retail sector of Indian economy.
Others believe the growth of Indian retail industry will take time, with organized retail possibly
needing a decade to grow to a 25% share. A 25% market share, given the expected growth of
Indian retail industry through 2021, is estimated to be over $250 billion a year: a revenue equal
to the 2009 revenue share from Japan for the world's 250 largest retailers. The Economist
forecasts that Indian retail will nearly double in economic value, expanding by about $850
billion by 2020. The projected increase alone is equivalent to the current retail market size of
France. In 2011, food accounted for 70% of Indian retail, but was under-represented by
organized retail. A.T Kearney estimates India's organized retail had a 31% share in clothing
and apparel, while the home supplies retail was growing between 20% to 30% per year. These
data correspond to retail prospects prior to November announcement of the retail reform. It
might be true that India has the largest number of shops per inhabitant. However, there are
detailed figures for Belgium, the Netherlands and Luxemburg.
In Belgium, the number of outlets is approximately 8 per 1,000 and in the Netherlands, it is 6.
So, the Indian number must be far higher.
INDIAN RETAIL INDUSTRY
India today is a dynamic combination of demanding consumers, rising levels of consumption and
a growing population base. As the corporate – the Piramal’s, the Tatas, the Raheja’s, ITC,
Sukuma’s, RPG Enterprises, and mega retailers – Crosswords, Shopper’s Stop, and Pantaloons
race to revolutionize the retailing sector, retail as an industry in India is coming alive. Retail
Sales in India amounted to about Rs.7400 billion in 2002, expanded at an average annual rate of
7% during 1999-2002. With the upturn in economic growth during 2003, retail sales are also
expected to expand at a higher pace of nearly 10%. Across the country, retail sales in real terms
9
are predicted to rise more rapidly than consumer expenditure during 2003-08. The forecast rowth
in real retail sales during 2003-2008 is 8.3% per year, compared with 7.1% for consumer nditure.
Modernization of the Indian retail sector will be reflected in rapid growth in sales of permarkets,
departmental stores and hypermarkets. Sales from these large format stores are to expand at
growth rates ranging from 24% to 49% per year during 2003-2008, according to a latest report
by Euro monitor International, a leading provider of global consumer-market intelligence. A.T.
Kearney Inc. places India 6th on the (GRDI) global retail development index. The country hasthe
highest per capita outlets in the world – 5.5 outlets per 1000 population. Around 7% of the
population in India is engaged in retailing, as compared to 20% in the USA. India has emerged
as a fourth largest economy in terms of Purchasing Power Parity (PPP). Retailing in India is one
of the pillars of its economy and accounts for about 10 percent of its GDP. The Indian retail
market is estimated to be US$ 600 billion and one of the top five retail markets in the world by
economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion
people. As of 2003, India's retailing industry was essentially owner manned small shops. In
2010, larger format convenience stores and supermarkets accounted for about 4 percent of the
industry, and these were present only in large urban centres. India's retail and logistics industry
employs about 40 million Indians (3.3% of Indian population). Until 2011, Indian central
government denied foreign direct investment (FDI) in multi
brand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores
or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic
process. In November 2011, India's central government announced retail reforms for both multi-
brand stores and single-brand stores. These market reforms paved the way for retail innovation
and competition with multi-brand retailers such as Walmart, Carrefour and Tesco, as well single
brand majors such as IKEA, Nike, and Apple. The announcement sparked intense activism, both
in opposition and in support of the reforms. In December 2011, under pressure from the position,
Indian government placed the retail reforms on hold till it reaches a consensus. In January 2012,
India approved reforms for single-brand stores welcoming anyone in the world to innovate in
Indian retail market with 100% ownership, but imposed the requirement that the single brand
retailer source 30 percent of its goods from 11India. Indian government continues the hold on
retail reforms for multi-brand stores. In June 2012, IKEA announced it had applied for ermission
to invest $1.9 billion in India and set up 25 retail stores. An analyst from Fitch Group stated that
the 30 percent requirement was likely to significantly delay if not prevent most single brand ajors
from Europe, USA and Japan from opening stores and creating associated jobs in India. On 14
September 2012, the government of India announced the opening of FDI in multiband retail,
subject to approvals by individual states. This decision was welcomed by economists and the
markets, but caused protests and an upheaval in India's central government's political coalition
structure. On 20 September 2012, the Government of India formally notified the FDI reforms for
single and multi-brand retail, thereby making it effective under Indian law. On 7 December
2012, the Federal Government of India allowed 51% FDI in multi brand retail in India. The
government managed to get the approval of multi-brand retail in the parliament despite heavy
uproar from the opposition (the NDA and leftist parties). Some states will allow foreign rmarkets
like Walmart, Tesco and Carrefour to open while other states will not. Organized sector is a
sector consisting of all incorporated enterprises which are engaged in the sales or production of
goods and services operated as private limited or limited organizations governed by Companies
act and having more than ten total workers.
10
ORGANIZED RETAIL:
• 'Company owned retail setups'
• 'Part of the employees are on the direct payroll of the company (some may be on the
contract also)'
• 'Employees will be governed by minimum wages act'
• 'These outlets can be “standalone company owned showroom” or “The retail space” in
any of the super market or mall etc.'
• Practically there may be less than ten workers though
Organized retailing, in India, refers to trading activities undertaken by licensed retailers, that is,
those who are registered for sales tax, income tax, etc. These include the publicly traded
ermarkets, corporate-backed hypermarkets and retail chains, and also the privately-owned large
retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of
low-cost retailing, for example, the local corner shops, owner manned general stores, an/beedi
shops, convenience stores, hand cart and pavement vendors, etc Organized retailing was absent
in most rural and small towns of India in 2010. Supermarkets and similar organized retail
accounted for just 4% of the market. Most Indian shopping happens in open markets or umerous
small
grocery and retail shops. Shoppers typically wait outside the shop, ask for what they want, and
cannot pick or examine a product from the shelf. Access to the shelf or product storage area is
limited. Once the shopper requests the food staple or household product they are looking for, the
shopkeeper goes to the container or shelf or to the 12back of the store, brings it out and offers it
for sale to the shopper. Often the shopkeeper may substitute the product, claiming that it is imilar
or equivalent to the product the consumer is asking for. The product typically has no price label
in these small retail shops; all packaged products must display the maximum retail price (MRP)
above which the product cannot be sold. It is a criminal offence to sell a product beyond the
MRP of a product. The shopkeeper can price the food staple and household products arbitrarily,
and two consumers may pay different prices for the same product on the same day but never will
those prices be above the maximum retail price. Price is rarely negotiated between the shopper
and shopkeeper. The shoppers usually do not have time to examine the product label, and do not
have a choice to make an informed decision between competitive products. India's retail and
ogistics industry, organized and unorganized in combination, employs about 40 million Indians
(3.3% of Indian population). The typical Indian retail shops are very small. Over 14 million
outlets operate in the country and only 4% of them being larger than 500 sq. ft (46 m2) in size.
India has about 11 shop outlets for every 1000 people. Vast majority of the unorganized retail
shopsin India employ family members, do not have the scale to procure or transport products at
high volume wholesale level, have limited to no quality control or fake-versus authentic roduct
screening technology and have no training on safe and hygienic storage, packaging orlogistics.
The unorganized retail shops source their products from a chain of middlemen who mark up the
product as it moves from farmer or producer to the consumer. The unorganized retail shops
typically offer no after-sales support or service. Finally, most transactions at unorganized retail
shops are done with cash, with all sales being final. Until the 1990s, regulations prevented
innovation and entrepreneurship in Indian retailing. Some retails faced complying with over
thirty regulations such as "signboard licenses" and "anti-hoarding measures" before they could
open doors. There are taxes for moving goods to states, from states, and evenwithin states in
some cases. Farmers and producers had to go through middlemen monopolies. The logistics and
11
infrastructure were very poor, with losses exceeding 30 percent. Through the 1990s, India
introduced widespread free market reforms, including some related to retail. Between 2000 and
2010, consumers in select Indian cities have gradually begun to experience the quality, choice,
convenience and benefits of organized retail industry.
1.2 RETAIL MARKETING

Definition of Retail Marketing
Retail is the sale of goods and services from businesses to an end user (called a customer). Retail
marketing is the process by which retailers promote awareness and interest of them goods and
services in an effort to generate sales from their consumers. There are many different approaches
and strategies retailers can use to market their goods and services (see below).Retail marketing
comprises the activities related to selling products to the consumers through channels such as
stores, malls, kiosks, vending machines, or other fixed locations. In contrast, direct marketing to
consumers attempts to complete a sale through phone, mail, or web site sales. Retailing occupies
a key role in the world of economy. Retailing involves all the activities incidental to selling to
ultimate consumers for their personal, family, and household use. It does this by organizing their
availability on a relatively large scale and supplying them to the customers on a relatively small
scale. A retailer is any person/organization instrumental in reaching the goods, or merchandise,
or services to the end users. A retailer is a must and cannot be eliminated. Retail marketing
comprises the activities related to selling products to the consumers through channels such as
stores, malls, kiosks, vending machines, or other fixed locations. In contrast, direct marketing to
consumers attempts to complete a sale through phone, mail, or web site sites.
Types of Major Retail Outlets:
1. Departmental Stores: A departmental store offers several product lines such as clothing,
home furnishing and household goods under one roof. Each line operates as a separate
department. For example, Kabarole’s.
2. Speciality Stores: A specialty store concentrates on a narrow product line or a specialized
product line; for example, footwear and jewellery.
3. Supermarket: A supermarket provides relatively large low-cost, low-margin, high-volume,
self-service
operation; for example. Big Bazar.
4. Convenience Stores: A convenience store is conveniently located in suburban areas and
charges aslightly
higher price and provides groceries and non-food items.
5. Discount Stores: A discount store offers standard merchandise at low price with low margin
and high
volume.
6. Factory Outlets: A factory outlet is opened and operated by manufacturers, and sells surplus or
discounted
goods.
7. Shopping Malls: Shopping malls are the new format of retail outlets. They provide several
products under
12
one roof. They also provide means of entertainment such as mini theatre and food courts.
8. Hypermarket: A "hypermarket" (sometimes called a "supercentre" or "superstore") is a big-
box store
combining a supermarket and a department store. The result is an expansive retail
facility carrying a wide range of products under one roof, including full groceries lines and
general
merchandise. In theory, hypermarkets allow customers to satisfy all their routine shopping needs
in one
trip.
.3 RETAIL MARKETING MIX:

The 4Ps of Retail Marketing:
14Retailers use various advertising and communication tools to grow awareness and
considerations with future customers. Finding the right marketing mix can lead to a profitable
growth and a higher return on investment.By considering the right advertising strategy retailers
can persuade consumers to choose to do business with their retail brand. The fundamental proach
used my modern retailers in marketing their products is the Four Ps of Retail Marketing.
Product: There are two primary types of merchandise. Hard or durable goods like appliances,
electronics, and sporting equipment. And soft goods like clothing, household items, cosmetics,
and paper products. Some retailers carry a range of hard and soft items like a supermarket or a
major retail chain while many smaller retailers only carry one category of goods, like a boutique
clothing store.
I. The basic components of product mix are:

ii. Services
iii. Packaging
iv. Brand
v. Product item
vi. Product line
The various product mix strategies are:
I. Launching new products from time to time
ii. Alteration of Existing Products
iii. Eliminate an entire line or reduce assortment within it
iv. Trading up
v. Trading Down
vi. Product life cycle management
The retail product mix is device so as to develop an appropriate promotion strategy for the store
depending on the
target market to be reached. Once the target market is identified and positioning strategy defined;
the retailers
13
employ various tools of product mix to reach out to consumers. These efforts also aim at
building store image.
Retailers usually employ a combination of various elements of product mix to achieve
promotional and business
objectives. The degree and the nature of usage of each of the promotion methods depend on the
objectives of the
retail firm, product, market profile, and availability of resources.
Price: Pricing is a key element to any retail strategy. The retail price needs to cover the cost of
goods as well as additional overhead costs.There are four primary pricing strategies used by
retailers: 15Everyday low pricing: The retailer operates in thin margins and attracts customers
interested in the lowest possible price. This strategy is used by big box retailers like Wal-Mart
and Target. High/low pricing: The retailer starts with a high price and later reduces the price
when the item’s popularity fades. This strategy is mainly used by small to mid-sized retailers.
Competitive pricing: The retailer bases the price on what their competition is charging. This
strategy is often used after the retailer has exhausted the higher pricing strategy (high/low
pricing).
lower than they actually are. For example, a list price of $1.95 is associated with spending $1
rather than $2 in the
customers mind. This strategy is also called pricing ending or charm pricing.
The components of price mix are:
a) Organizational objectives
b) Competition
c) Cost and profit
d) Credit terms
e) Discount etc.
f) Fixed and variable costs
g) Pricing options
h) Pricing policies
i) Proposed positioning strategies
j) Target group and willingness to pay
Place: The place is where the retailer conducts business with its customers. The place can be a
physical retail
location or a non-physical space like a catalogue company or an e-store. While most retailers are
small,
independently owned operations (over 90%), over 50% of retail sales are generated by major
retailers often called
“big box retailers” (see the list of the top 20 big box retailers below).
Following are the components of a retail place mix:
1) Distribution channels
2) Intermediary
3) Distance Factor
4) Inventory Level
5) Transportation
14
6) Warehousing and Storage

16Promotion: Promotion is the final marketing mix elements. Promotions include personal
selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix
specifies how much attention to pay to each tactic, and how much money to budget for each.
A promotion can have a wide range of objectives, including increasing sales, new product
acceptance, creation of brand equity, positioning, competitive retaliations, or the creation of a
corporate image.
The component of promotion mix are as follows:
i. Cost of the method
ii. Its reach
iii. Degree of flexibility
iv. Credibility
v. Control over media
The Ps Revisited: Customer-Oriented Retail Marketing
In recent years, to address the need of taking a more customer-oriented approach to marketing,
the 4 Ps of Retail
Marketing have been revised and replaced by the 4 Cs:
Consumer, Cost, Communication, and Convenience.
Consumer (versus Product): Instead of focusing on the product the retailer wants to sell, a smart
retailer studies the wants and needs of its consumers before going to market. The more clearly a
retailer understands the wants and needs of its customer base, the greater chance it will have of
attracting customers and increasing sales.
Cost (versus Price): In retail a cost is the value of money that has been used up to produce
something. Factors that influence cost include the customer’s cost to change to a new product
and the customer’s cost for not selecting a competitor’s product.
Convenience (versus Place): The Internet has made Place less of a factor in consumer purchasing
decisions. Convenience addresses the ease of completing a transaction including the ease of
finding information about a product, finding the right product, and purchasing a product.
Communication (versus Promotion): Communications including a range of efforts including
advertising, public relations, grassroots efforts, social media, and any other form of
communication between the company and the consumer. Becoming aware of the fundamentals
of retail marketing (the four Ps and the four Cs) is critical to becoming a best-in-class retailer.
CHAPTER 2
RESEARCH METHODOLOGY
Research Methodology: - Since the study is on retail sector first the detail study of the store is
been conducted about its Management team its structure the number of departments which all
brands do the store has, who are its suppliers about its warehouses. Based on the topic objectives
were set and to arrive at the opinion on objectives a set of 120 questionnaires were designed of
26 questions and response is collected from the customers who are visiting the store. For data
collection Random Convenient sampling method was adopted. For this project the area
of research is Ahmadabad.
RESEARCH OBJECTIVE: -
• To scan customer buying behaviour.
• To know the promotional strategy of Big Bazar D-Mart
• To know the relation between promotional strategy and buying decision
15
• To comprehend the determinants of customer satisfaction.

• To know about the growth prospective with respect to demand analysis.
• To analyse product mix.
• How Big Bazaar and D-mart Establish and maintain the in retailing through
Data Collections Methods: Market research requires two types of data i.e. secondary data and
primary data. Primary data has been used abundantly for the study. Well-structured
questionnaires were prepared & the survey was undertaken. Feedback for the display has been
taken by asking questions & observation has also done to gather primary information.
There is also a use of secondary data, collected from the various journals, books, and websites &
from Store managers.
Primary data - Field Survey
Secondary data - Big Bazaar records,
D-Mart records, Book, Company Websites
Area of research: - Kurla West
Research approach: - Survey method
THE GAP MODEL:

18Identify the gaps between customer expectation and the actual services provided at different
stages of service delivery. Close the gap and improve the customer service. This model
developed by Parasuraman, Zeithaml and Berry in 1985 identifies five different gaps:
The Customer Gap: The Gap between Customer Expectations and Customer Perceptions
The customer gap is the difference between customer expectations and customer perceptions.
Customer expectation is what the customer expects according to available resources and is
influenced by cultural background, family lifestyle, personality, demographics, advertising,
experience with similar products and information available online. Customer perception is totally
subjective and is based on the customer’s interaction with the product or service. Perception is
derived from the customer’s satisfaction of the specific product or service and the quality of
service delivery. The customer gap is the most important gap and in an ideal world the
customer’s expectation would be almost identical to the customer’s perception. In a customer
orientated strategy, delivering a quality service for a specific product should be based on a clear
understanding of the target markets. Understanding customer needs and knowing customer
expectations could be the best way to close the gap.
The Knowledge Gap: The Gap between Consumer Expectation and Management Perception
The knowledge gap is the difference between the customer’s expectations of the service provided
and the company’s provision of the service. In this case, managers are not aware or have not
correctly interpreted the customer’s expectation in relation to the company’s services or
products. If a knowledge gap exists, it may mean companies are trying to meet wrong or non-
existing consumer needs. In a customer-orientated business, it is important to have a clear
understanding of the consumer’s need for service. To close the gap between the consumer’s
expectations for service and management’s perception of service delivery will require
comprehensive market research.
The Policy Gap: The Gap between Management Perception and Service Quality Specification.
According to Kasper et al, this gap reflects management’s incorrect translation of the service
policy into rules and guidelines for employees. Some companies experience difficulties
16
translating consumer expectation into specific service quality delivery. This can include poor
service design, failure to maintain and continually update there provision of good customer
service or simply a lack of standardization. This gap may see consumers seek a similar
product with better service elsewhere.
The Delivery Gap: The Gap between Service Quality Specification and Service Delivery
This gap exposes the weakness in employee performance. Organizations with a Delivery Gap
may specify the service required to support consumers but have subsequently failed to train their
employees, put good processes and guidelines in action. As a result, employees are ill equipped
to manage consumer’s needs. Some of the problems experienced if there is a delivery gap is:
• Employees lack of product knowledge and have difficulty managing customer questions an
Issues.
• Organizations have poor human resource policies
• Lack of cohesive teams and the inability to deliver
• The Communication Gap: The Gap between Service Delivery and External
Communications
In some cases, promises made by companies through advertising media and communication raise
customer expectations. When over-promising in advertising does not match the actual service
delivery, it creates a communication gap. Consumers are disappointed because the promised
service does not match the expected service and consequently may seek alternative product
sources. Sampling Method Since the study is restricted to Retail sector, all the functional
Departments of Big Bazaar & D-Mart and the responds are taken from google survey and found
at the store only so according to the convenience randomly they are being picked so sampling
method is used in this study is Random Convenient Sampling. Sampling
Sample size: 100 respondents
Sampling Method: Random Convenience sampling
CHAPTER 3
LITERATURE REVIEW
The story of DMart began almost 14 years ago in the dusty streets of Mumbai and upcountry
Maharashtra where its promoters walked the supermarkets and co-operative stores of the time
and observed the contents of the shopping trolleys to gain an understanding of what the customer
bought and what she rejected. All operational wisdom was gleaned from the supermarket ‘street’,
while philosophically, it was clear that the store must follow the principles laid down by Sam
Walton. Wal-Mart had treated some fundamentals as gospel and if they could succeed with their
simple approach to retail, there was no reason for a store in India not to do so. In a very basic
way, therefore, all DMart did was to watch the customer trolley and read everything about Sam
Walton and Wal Mart. Nothing else was strategically important. The strategy paid off in spades.
D-Mart’s ‘Give ‘em what they want’ approach to retailing has customers lining up at their doors.
Our work at understanding and decoding DMart led to some simple clues and points of view
about each of the three constituencies of retail – the customers, the vendors and the employees.
DMart+ started in a very simple way in New Bombay. By supermarket standards, the first store,
which also acted as a pilot for the business, located in a 4,000 square feet premises, was tiny. But
the principles it developed then have stood the test of both time and scale. The business was in
17
no hurry to create behemoths. Instead it patiently went about laying down the first principles of
this fledgling business, and creating the core DMart point of view about the three
‘constituencies’ of retail. Now the simple formula that makes DMart tick is shared and
intuitively understood as invaluable in the large organisation. Probably this simplicity has helped
it scale nicely while staying lean as an organisation. One of the cornerstones of DMart’s
continued success is how it has retained its frugal outlook to retail through all market upheavals
and internal changes over the years. From his stock investor days, RK Damani, or RK, as he is
popularly known, had the habit of forming strong, informed points of views about what mattered
for success and single34 mindedly pursuing the chosen path. He pursued the same mindset in the
retail business. One of his biggest success sutras was that of prioritising with a vengeance. “If
there are 10 principles or acts needed to run the business, I would pick the two or three that
mattered the most and then drive them to be a market beater in those things. It is okay for me if I
am even below average in the other seven things,” he says confidently. Running with what
matters the most and staying the course have obviously been a winning strategy for DMart. It is
therefore worth examining the most important components of each of the three constituencies,
the customer, the employee and the vendor, for DMart.
1. The Indian customer, who shops at air-conditioned stores, does not run her family’s grocery
needs on a tight budget. While supermarket customers are, by and large, well-to-do people, yet
everyone wants to save money. People with money buy more, to achieve higher savings.
DMart’s pricing is designed for the customers to save more across everything she buys.
However, those who buy bigger packs save even more. It’s as simple as that! The merchandise
department of DMart, its buyers, act more like agents of the customer and not of the company.
This is in line with Sam Walton’s description of his merchandise department. If the buyers buy
better, they can sell cheaper. The very fundamental principle of ‘what you receive, you pass on’is
almost biblical in its simplicity. If buyers negotiate a good price with vendors, DMart passes on
the benefits to the customers, in the process communicating a message of care and protection.
“Even when you are not looking, not careful, you’ll still save money with us” seems to be the
unstated subtext in its communication. How can any customer resist such a message of genuine
concern? It follows that the customer will let her guard down and fill her trolley with reckless
abandon. After all, DMart has her back and she knows it. One of RK’s old beliefs is, if she saves
well, she’ll overlook other flawsin the offering. There are many aspects to a customer facing
business.A well-lit and designed shop floor with smart adjacencies and category flows, polite
staff, proper communication, attractive displays, weekly, monthly promotion cycles, so on and so
forth. DMart could have tried to focus on all these and more. It didn’t because then it would have
lost its edge. It only looked at how much the customer saves, and became a market leader in that,
much to the shopper’s joy. She bought more. “Also, she’ll tell others about us and therefore
we’ll not need any marketing!” chuckles RK.
2. Store employees or associates are first generation retail workers in India. Self-service retail is
still in its early stages of evolution. Combine this with the fact that culturally, in India, service
and servitude have often been treated as one and the same, and it becomes obvious that
introducing a service-oriented format in our country is a mammoth task. Workers and servers in
all walks of life come from a different class and socio-economic background than the people
they serve. They are largely untrained and often uneducated or first-generation learners; their
parents being employed in small factories or as work hands in small businesses. Nothing in the
18
environment or upbringing of these new retail associates therefore prepares them for a customer
facing service job. The service culture is entering our environment, but it will take a generation
to become firmly entrenched as part of our society. Until that happens, what is it that a customer-
facing business needs to do? Can it afford to depend on this class of workers to generate
customer satisfaction? The obvious answer is no. From this point of view, DMart has built a
cadre of simple, hardworking store people who ensure fully stocked shelves, clean price
communication and efficient check-outs and not much beyond in customer service. Well, selling
simple grocery items at fixed prices does not require much people-based service, in any case.
The simplicity of the shop floor associates is offset by state-of-the-art, global standard store
equipment. Be it flooring, shelves, trolleys, scanners – all hardware and connectivity deployed at
the stores is expensive, best in class. Not many things therefore need skilled, smart manpower.
Equally significantly, the associates have no sales targets. Clearly, the organisation does
not depend on its associates for its sales. It allows its systems and basic principle of simplicity to
do that for it.
DMart seems to live its ‘self-service’ dharna, diligently. While staff are amply trained and
rewarded, this is not where the company has chosen to place its sales focus on.
3. Vendors, who deliver goods and get paid by retailers, are small and medium traders, micro-
entrepreneurs, by a vast majority. Even when supermarkets buy goods made by reputed MNCs,
the real last-mile seller is often a distributor named Agarwal & Sons, for example. Small traders
in India, as a rule, are always short on capital and perpetually stressed about their working capital
situation. DMart decided to be a market beater by paying faster than market norms to its vendors.
Quickly, they became known as the best pay masters in town. In spite of being tough negotiators,
every vendor wanted them to succeed, for this very reason. Vendors did many small things in
their power to ensure DMart got the best availability and deals. Vendors are known to advise and
tip off the buyer teams, often, with market intelligence. DMart has ensured an ecosystem that’s
very helpful in winning the complexities of the supermarket business, with this simple vendor
insight. It also helps to have a liberal stock holding policy the way DMart does, in a growing
market like India. The Indian customer is intuitively frugal and also traditionally underserved.
When she sees a hardworking store like DMart that empowers her, saves money
and has a no-nonsense outlook, she overlooks and forgives the no frills, often cheerless,
warehouse like store setting. Going forward, from being a regional retailer, as it expands into
other parts of the country, DMart has to grapple with the fact that India is more like a continent
than a homogeneous market. Food tastes and preferences and buying behaviour change every
100 kilometres, work cultures and therefore overall management will needto
get complex. A simple business model based on insights about the three constituencies of retail
and a trusting, forgiving customer will stand in good stead when DMart begins to engage with
greater complexity. It is a well-known fact that in most large markets, the biggest retailer is the
discount supermarket and, in many cases, it is a local player and not a multinational. DMart with
its stable fundamentals are well-placed to play for that spot, for now at least!
• D-Mart wanted to create an image amongst the masses of a discount store that offers most of
the products from across all major brands. Basically, a store that offers value for money! Now,
since people mostly come to DMart because they all what they need under one roof; hence,
DMart stores are operational in high traffic areas and across three formats including –
Hypermarkets, that are spread across 30,000-35,000 sq. ft., Express format, that is spread over
7,000-10,000 sq. ft. and lastly, the Super Centres, that are set up at over 1 lakh sq. ft.
19
• And DMart’s target audience being the middle-income group, it uses Discount offers as a
promotional tool for luring the customers and increasing sales as well.
• Since DMart is targeting middle income households, all their stores are in, or close to,
residential areas and not in malls. Their idea is not to meet every consumer need like other
competitors, but instead, DMart aspires to meet most regular consumer needs, while providing
value for their money. And since, 90% of these stores are owned directly by DMart, they don’t
have to worry about monthly rentals and their rise, 23or relocation risk. Additionally, this is
helping them build assets on their books. This also helps to keep DMart well capitalised and
debt-light, while its operations generate spare cash.
• All the money that is saved using this strategy is eventually offered back to the customers in the
form of discounts! The FMCG industry has a payment norm of 12-21 days, but DMart pays its
vendors on 11th day itself. This helps him stay in the good books of the vendors and avoids stock
outs. And since DMart buys in bulk and pays its vendors well in time, they also get to earn
higher margins. Basically, their strategy is to “Buy it low, stack it high and sell it cheap”!
• DMart offers good money, flexibility, empowerment, and relaxed & efficient work culture.
They even go on to hire 10th standard dropouts with the right attitude and commitment. They
prefer hiring raw talent, and then invest heavily in training, to mould them as per their
requirement. Employees are just told once about the value system and policies at D-Mart and
then are empowered by giving them the freedom to operate without somebody constantly
looking over their shoulders. There is absolute clarity on what needs to be achieved, but you
don’t need to fear targets. (Doyle& Fenwick 1974; Jain & Edgar 1976: King & Ring 1980;
Chowdhury et al 1998), with some research efforts having attempted to explore the evolution of
store image formation (Mazursky and Jacoby 1986); and others seeking to conduct a
meta-analysis of retail patronage studies (Pan & Zinkhan 2006). However, the existing literature
did not retail image. Consumers ‘perception of store image is based, in part, on functional
qualities that the store may possess, and by other, less tangible or psychological attributes
(Lindquist 1974). Lindquist analysed over 20 studies dealing with store image formation and
identified 35 different aspects that in reveal any prior studies where clustering
techniques had been used to study consumers ‘perceptions of confluence store image formation.
These were grouped into nine broad categories, including: merchandise, service, clientele,
physical facilities, convenience, promotion, store atmosphere, institutional attributes, and post
transaction satisfaction. Mazursky and Jacoby (1986) conducted a similar analysis and verified
that ―merchandise related aspects‖ (such as quality, pricing and assortment), and “service-
related aspects‖ (such as quality in general and salesperson ‘s service) are among the most
important components of store image. A 1994 study by Baker, Grewal and Parasuraman
confirmed that ―the store image literature suggests there are linkages between merchandise and
service quality, and store image. ‖A later study by Baker, Grewal and Voss (2002) also
confirmed that service quality was a key determinant of store image. Given the prevalence in the
literature of merchandise and service as two key determinants in the formation of store image,
these two attributes were selected for this present study to gauge consumer’s perceptions
of retail stores. These attributes were incorporated in this study by obtaining consumer similarity
judgments on retailers ‘―service quality‖ and ―merchandise quality”. The clustering of retail
stores based on these two attributes will yield a better understanding of competition within the
retailing industry. This is of interest from a strategic marketing standpoint in that many off-price
retailers carry the same quality merchandise as other,higher priced retailers (namely, department
20
stores and specialty stores). In previous years, competition within the retail 24sector was more
clearly delineated in that department stores tended to compete with other department stores; and
in general, stores of a specific type tended to compete with like stores in reality, these istinctions
(at least with regards to merchandise quality) may not be as clear today since off-price retailers
often carry the same merchandise as specialty and department stores. No longer can the
competition be viewed as narrowly – merely by store type - as it had been in the past for
purposes of marketing strategy development. Off-price retailers strive to convince consumers
that their product quality is comparable to that of department stores. This study will enable
us to confirm whether consumer perceptions of product quality will also yield information that
would be of strategic interest to retailers. For the survey of existing literature, the research papers
published in Journals, Reference books, Magazine, internet, government report etc were referred.
The observation and findings presented in this section are based on this literature review.
Feinberg, Shuffler, Miaoli and Rommel (1989) considered the social stimulation provided by
malls, finding that
the mall served as an outlet for social behaviour. Further examination of this issue was made by
Lots, East lick and Shim (2000), who studied the similarities and differences between mall
entertainment seekers and mall shoppers. Their results supported hypotheses that there are
different motivations for individuals who visit a mall for entertainment activities versus those
who visit for shopping purposes. Roy (1994) in his study considered several characteristics of
shoppers - such as functional shopping motivation, deal proneness, recreational shopping
motivation, age, income and family size, to be a significant influence on mall shopping
frequency. Burns and Warren (1995) opined that since the store mix and product offerings of
many regional shopping malls are very similar, often the primary discriminator between many of
these centres is merely location. Making the choice to shop at a regional shopping mall other
than the one nearest to one’s place of residence, therefore, does not appear to be a logical choice
in many instances. Such behaviour, however, appears to be relatively common. It would appear;
therefore, that regional shopping mall choice may not always be based solely on the offerings
and location of the available shopping alternatives Jackson (1996) in his study observed that
malls have become the place where senior citizens walk in comfort and security, where parents
lead their young to Santa Clauses, where singles court, where teenagers socialize and
where everybody consumes. Indeed, a new term, “Mall Rats” has been coined to describe the
legions of young people who spend their free time cruising indoor corridors. This proliferation of
uses and of customers has led to the frequent observation that regional malls are the new
downtowns, the centres of informal social interactions, the successors to the traditional
marketplace. J.A.F. Nicholls (1997) in his article has mention about the situational dimensions
affecting purchasing behaviour of Hispanic customersin a mall at some distance from them
neighbourhoods. The Hispanic shopper (which would also include a large segment of
immigrants) makes the (shopping) trip worthwhile by traveling with companions,
consummating a purchase while at the mall, and buying food or beverage during the visit. The
Hispanic shopper 26also spends more time at the mall and visits more stores while there.
Pacinian and Gould (1998) stated that consumers are attracted to malls because of the presence
of well-known anchors - department stores with recognized names. Anchors generate mall traffic
that indirectly increases the sales of lesser-known mall stores. Lesser known stores can free ride
off of the reputations of better-known stores. Mall developers internalize these externalities by
offering rent subsidies to anchors and by charging rent premiums to other mall tenants. The
21
results of this article suggested that mall developers are behaving rationally because they know
that anchors attract customers to the mall and increase the sales of other mall stores.
Kay M. Palan (2000) in his paper outlined gender identity, of consumer behaviour studies in the
marketing literature that have examined gender identity. Based on the literature review, the paper
evaluates whether gender identity research is still warranted, and proposes specific research
questions to guide future research. The author is of the view that it is very essential to understand
the complex and changeable nature of personality traits associated with gender categories.
Nikhilesh Dholakia & Piyush Kumar Sinha (2005) Customers tend to come to the stores with a
choice set. This set varies according to the extent of planning that the customer undertakes before
reaching the store. With more planning, this choice set narrows. While buying from the
traditional format (serviced) stores, the customers carry lists. These lists, in many cases, mention
the brand name of the product. Generally, the retailer simply fetches the sought brands and
collects them on the counter, ready for tallying and payment. In the very affluent families, these
patterns exhibit variations. Rather than the husband, the cart pusher may be the maid or the
driver (chauffer). Of course, in such cases, almost all the picking and paying is done by
"madam," the housewife-employer. While not yet much evident in Ahmedabad, in bigger
metropolitan areas such as Delhi or Mumbai, there are some observed cases of maids coming to
shop on their own, using lists provided by the employer. To command appropriate
respect from the store help, the maids "dress up" in such situations. There has not been
significant effort by research scholars and marketers to study the consumer behaviour pattern in
Malls and to differentiate the same with behaviour pattern in traditional Mom-&-Pop shops. If
the research has been conducted it is not being made available to the other researchers.Surbhi
Khosla (2006) in her article briefly discussed about the retail sector in India and its journey. The
article mentions in the chronological order the evolution of different retail formats in India and
also major retailers in different formats. The article also discussed the recent trends in the
formats and future scope of the different formats of retailing. Prakash Chandra Dash (2007)
studied and explodes the opportunities, challenges and strategies of Indian retail
sectors. The paper discusses the challenges like merchandising mix, retail differentiation, supply
chain management and also competition from supplier's brand in the Indian perspective.
Sonal Kureshi, Vandana Sood, Abraham Koshy (2007) conducted a research study on
“Comprehensive Analysis of Exclusive Brand Store Customer in Indian Market”.
The objective of the research was (a) to provide insight about the profile of the consumers of
exclusive brand store, based on their demographic and psychographic characteristics (b) to find
out differences if any betweenthe „Browser‟ and „Purposive‟ customers and (c) to examine the
differences that emerge and draw implications for the retailer. Piyush Kumar Sinha & Sanjay
Kumar (2007) conducted research study to identify and classify the different formats of retailing
in India. The study classifies the different formats of retailing in different categories and also
explains the growth of each category and motivation of retailers to expand into specific category.
Some of the findings of the study include: Most of the organized retailers in India are harping on
quality, service, convenience, satisfaction and assured benefits to lure shoppers into the store.
Retailers are not creating value for the consumer and also unable to decide suitable vehicle to
deliver desired consumer value. No doubt that retail format is one of the vehicles to deliver value
proposition and also it helps to position the store in the mind of target shoppers.
CHAPTER 4
PROFILE OF THE ORGANIZATION
22
1. Introduction of BIG BAZAAR

Big Bazaar is an Indian retail store that open by Sarvesh a chain of hypermarkets, discount
department stores, and grocery stores. The retail chain was founded by Kishore Biyani under his
parent organization Future Group, which is known for having a significant prominence in Indian
retail and fashion sectors. Big Bazaar is also the parent chain of Food Bazaar, Fashion at Big
Bazaar (fbb) and Ezone where at locations it houses all under one roof, while it is sister chain of
retail outlets like Brand Factory, Home Town, Central, Ezone, etc. Founded in 2001, Big
Bazaar is one of the oldest and the largest hypermarkets chain of India, housing about 250+
stores in over 120 cities and towns across the country.
2. History
Big Bazaar wasfounded in 2001 by Kishore, the founder and chief executive officer (CEO) of the
parent company,
the Future Group. Indian actress Asian and the former Captain of Indian cricket team, Mahindra
Singh Dhoni have previously endorsed for the fashion vertical of Big Bazaar. Controversy A
tribal girl from Tripura, Barkathal was mentally harassed of being theft by Big Bazaar, Agartala
in front of many people which led the girl to commit suicide at her home. Many Youth wings are
protesting in front of the mall in Agartala demanding justice.
Competitors
o D-mart
o Easy day
o Food world
o Hyper City
o More.
o Urban Ladder
o Reliance Fresh
o Spencer's
The Marketing Mix of Big Bazar (4Ps):
Product: Big Bazar offers a wide range of products such as apparel, food, furniture, child care
products, household products, toys, electronics, stationery, toiletry, beddings, farm products, etc.
They offer a variety of well-known brands like Levi’s, Pepsi, Coca-Cola, P&G, LG, Samsung,
Nokia, HP as well as its own house brand.
Price: The objective is to maximize the market share. They follow three different techniques for
pricing. The first is known as Value Pricing, through which Big Bazar offers everyday low
pricing without any discount promotions or coupon clipping. The second is Promotional Pricing,
where Big Bazar finances at low interest rates. Lastly, Differentiated Pricing, where Big Bazar
differentiates the prices from peak to non-peak hours or days of shopping to attract more
customers. They also use the concept of psychological discounting (Rs.99, Rs.199) which
attracts more customers. Big Bazar uses the concept of Bundling where they make combo-packs
and offer discounts to customers. This adds value to customers and increases sales thereby
reducing their excess inventory. For example, 2 Pepsi 20L bottles for Rs.250 instead of buying
them individually for Rs.175. Place: Big Bazar operates in most of the big cities and some small
towns in India. They are normally located in high-traffic areas to attract mass population and in
developing cities so that they have larger chance of attracting customers.
Promotion: Big Bazar has an interesting way to promote its brand. They don’t need to put any
holdings or advertisements all over the city to attract customers because people have generally,
set their alarms for the days and dates of big discounts beforehand. For example, “Saal ke sabse
23
saste 3or 5 din”, are the 3 or 5 cheapest days of the year. “Hafte ka sabse sasta din Wednesday
Bazaar” means that there are heavy discounts and bundles that occur every Wednesday.
“Exchange Offers, Junk swap offer” are days when new or used products can be swapped
for a new product for a small premium. Their Future Card also offers a 3% discount. Brand
endorsements by famous celebrities or sport stars also hit at the psychology of young customers
because then they think if this famous personality is using it, we should try this too. Click Here
to watch an example of one of their sale advertisements. All these promotions attract most of the
population to Big Bazar. Recently they have started a new offer titled “T24-Shop More, Talk
More”, where customers are given talk-time benefits. Shopping and talking on the phone are
what Indians love the most and Big Bazaar has targeted both of them together. Therefore, a large
majority of the youth and the servant class has become attracted to and remained loyal to Big
Bazaar. Big Bazaar has many strengths and opportunitiesto expand their market and brand but
they have to remove certain weaknesses they possess and fight against threats they may face in
the future. Some of these include, Overcrowding: Because of over population in India most of
the stores are fully packed, me specially during promotions and discount offers. If possible, they
should provide more cash countersjust for that day so they don’t increase their everyday
operating expense. Online shopping will also help reduce crowd in stores. Checkouts are
29extremely slow: Again because of overcrowding, people stand in queues for hours to checkout
especially during heavy sales. More cash counters can always help and the employees should be
fast enough to tackle such situations. Youth has very little patience and if Big Bazaar provides
online shopping and fast, free delivery, youth will make use of it and hence this reduces the
crowd and waiting time. Placement of Products: Sometimes the products are placed randomly.
This is not only Big Bazaar’s fault but also of the public because they put stuff anywhere, they
like if they don’t want to buy it. Also, there are no specific categories on the ceiling to direct the
customers like in Walmart. Perception of low price: Low price is perceived as low quality
generally, so some people may avoid buying from Big Bazaar.
As explained in the segmentation of the market above, Big Bazaar ignores the upper and elite
class people who are ready to pay any price for the best quality and the product they need. Big
Bazaar should provide some extreme quality products to cater to this class as well. They should
have effective distribution which means to apply 80/20 rule “i.e.” they should attract high elite
business population because high percentage of sales comes from less percentage of people.
Lot of competitors: A lot of countries want to enter the retail industry in India which causes one
of the biggest threats to Big Bazaar, for example, Walmart, Tesco, and Carrefour. Big Bazaar
needs to retain its customers either by providing them more promotions or offers or discounts or
by promoting their brand at a large scale and attracting the elite class of population so that they
don’t fly to other brands when they come in. 1) Competition from other value retail chains such
as Shoprite, Reliance (Fresh and 2) trends), Hyper city and D mart.
3) Unorganized retail also appears to be a threat to Big Bazaar’s business. A large population
still prefers to
visit local convenient stores for daily purchases
4) Changing Government policies
5) International players looking to foray India
4.3 Big Bazaar Promotional Schemes
Big Bazaar encourages new promotional schemes time to time to boost their sales. The
customers also get some big benefits from these promotional schemes. Big Bazaar has employed
highly qualified staff to assist consumers. All the products are well managed and displayed in a
24
nice way. There are many billing counters for easy and prompt billing. Boards are placed at most
of counters so that one can easily pick the product of its need. Products are properly marked and
rates are mentioned. Multiple Brands are available for most of the merchandise. The buyer has
the facility to choose its favourite brand. Big Bazaar also has its own brand products which are
available at quiet reasonable rates so that they are very budget friendly. Sabse saste 5 din
With a view to get maximum benefit of holiday and long weekend Big Bazaar introduced
concept of Sabse saste 3 din in January 2006. Republic Day 26th January is a national holiday so
Big bazaar proposed the idea of Sabse saste din. These days varies according to 26th January and
weekend. It may last for 5 days even. Big bazaar offers many great discounts and offers during
these days. Wednesday Bazaar Wednesday has been named as “Hafte Ka Sabse Sasta Din” by
Big Bazaar. This is because Wednesday is the most desolate day of the week. Very few
consumers visit market on the mid-week day. This scheme brings out most housewives to save a
lot on this day. Big Bazaar gives huge discounts on many products on Wednesday.
One more benefit for consumers is that they can avoid rush days on weekends. Wednesday
Bazaar is here again to help you stock up for another week! Make the most of these incredible
offers at a Big Bazaar store near you! The Great Exchange Offer When you think of disposing
old goods and scrap it’s a big headache. Big Bazaar has brought out solution to this
problem. The Great Exchange Offer of big bazaar runs every year in financial year end. February
and March are the months of Exchange Offer. It is a great opportunity for consumers to get good
rates for scrap. Big bazaar issues coupon against the scrap which you can use against your
purchase at Big Bazaar. You can get coupons by giving away old goods like electronics,
newspaper, shoes, tyres, clothes, utensils, plastic wares and furniture etc.
Big bazaar Gift vouchers When you are too confused in buying a gift for your near and dear
ones? Big Bazaar makes it easy for you. You can gift Big Bazaar Gift vouchers which are like
cash and can be redeemed at any Big Bazaar and Food Bazaar outlets all over India. These Gift
vouchers can be used to make payment for any goods and services available at
Big Bazaar. Big Bazaar Gift vouchers are available in denominations of Rs. 100 to Rs. 5000.
One can choose according to its requirement. The other promotional schemes which Big bazaar
is using are special Big Bazaar card which provide some privileges to its holders. They also use
big faces for Brand Endorsement. Some of the Big celebrities include Famous cricketer of Indian
Cricket Team M.S. Dhoni, Bollywood actresses Asian and Vidya Balan. But one has be very
alert while using any of the promotional schemes as there are many terms and conditions
involved in these schemes.
CURRENT POSITIONING STRATEGY OF BIG BAZAAR:

Big Bazaar is holding a strong position in the market and is growing very fast. It captures the
maximum Indian market and with a strong financial background and it has to go a long way
through. The low-price strategy it is successfully running its business all over India and is still
growing bigger and bigger. The following graph shows the Product Life Cycle of Big Bazaar
which is currently at the growth stage.
4.4 ADVERTISING: THE ESSENTIAL OF BRAND BUILDING PROCESS

Advertising is an essential component of brand building. The advertisement and brand building
are done through various ways, the techniques used are: Tag-line: Big Bazaar tag-lines are the
key components of advertising. These tag-lines are modified according to demographic profile of
customers. These catch-phrases appeared on hoardings and newspapers in every city where
25
Big Bazaar were launched. Print Ads: Big Bazaar newspaper advertisements are present just
before launch of any new scheme. TV Ads: Kishore Biyani spends a lot of money in brand
building exercise. Big Bazaar commercials are shown on various channels in India. Presently,
Fashion at Big Bazaar commercial is aired. Road-side Advertisements: Big Bazaar bill-boards
are displayed on prime locations in various cities as a brand building exercise. They display the
catch-phrases now-a-days. Radio Ads: This technique is used in cities like Sangli (Tier 1 / Tier 2
cities). Now-a-days, it is by advertisements on FM channels. This informs customers about all
new happenings at Big Bazaar. For example:
The departmental store chain Big Bazaar has launched a commercial sometime back to promote
‘The Great Exchange Offer’. The commercial portrays how customers can exchange any old and
broken items (junk) and get new products at a discounted price from Big Bazaar. Customer can
get the amazing prices for junk. The month of January and February is generally, a low-key
affair in terms of customer footfalls and revenue generation.
Innovative, out of the box promotions is one of the effective ways to draw customer attention
and shore up the revenue. Historically Exchange schemes have been used to induce better sales;
it also has a strong appeal with the Indian mindset of getting value even for their junk, states an?
official release from Big Bazaar. Targets at the middle class and upper middle class only: It
targets at the middle and upper middle class due to which it ignores the upper and elite class
people as they are the cream of the society who are ready to pay any price for the quality
and product they need.
5. Opportunities
Big Bazaar can enter into production of various products due to its in depth understanding of
customers’ tastes and preferences. Nowadays people prefer going to one big store and buy
everything instead of visiting different places for different items and waste time. So Big Bazaar
can expand the business in smaller cities as there is a lot of opportunity. Lot of potential in the
rural market.
6. Threats
High business risk involved: Big Bazaar investment is very large so it is obvious that there is
high business risk involved. Lot of competitors: There are a lot of countries which are planning
to enter the Indian market like Wal-Mart, Carrefour and Tesco which is a big threat to Big
Bazaar. Less Parking Space: Customers are not satisfied with the parking space availability
provided by Big Bazaar. Hence, it’s a threat of Big Bazaar asit may lose its customers because of
less parking space availability. In holidays it will be very difficult for customers to park them
vehicle in Big Bazaar. Unorganized retailing: Unorganized retail stores are a threat to the
business of big bazaar as now also people prefer to go to the local stores which are convenient
enough for them.
7. SWOT Analysis of Big Bazaar
Strengths
• High brand equity enjoyed by Big Bazaar
• State of the art infrastructure
• A vast variety of stuff available under one roof
• Everyday low prices, which attract customers
• Maximum percent of footfalls converted in sales
• Huge investment capacity
• Biggest value retail chain in India
26
• It offers a family shopping experience, where entire family can visit together.
• Available facilities such as online booking and delivery of goods
Weaknesses
• Unable to meet store opening targets on time
• Falling revenue per sq. ft
• General perception: ‘Low price = Low quality’
• Overcrowded during offers
33• Long lines at billing counters which are time consuming
• Limited only to value offering low price products. A no of branded products is still
• missing from Big Bazaar’s line of products. E.g. Jockey, Van heusen,
Opportunities
• A lot of scope in Indian organized retail as it stands at approximately 4%.
• Increasing mall culture in India.
• More people these days prefer to visit big stores where they can find large variety
• under one roof
• Threats in the SWOT analysis of Big Bazaar
Chapter 5
5.1 Company Profile of D-Mart
D-Mart offer products to satisfy the entire family ‘s needs. Merchandise offered at D-Mart is
always at lower prices. Stores are designed with customer convenience in mind. D-Mart respects
your intelligence by offering a wide choice of brand and pack sizes, couple with easy-to
understand communications and information. Avenue Super Marts Ltd Avenue Super Marts Ltd
(ASL) owns and operates hypermarkets and supermarkets by the store name D-Mart. D
Mart seeks to provide a one-stop shopping experience for the entire family, meeting all their
daily household needs. A wide selection of home utility products is offered, including foods,
toiletries, beauty products, garments, kitchenware, bed and bath linen, home appliances and
much more. Since D-Mart first opened its doors in the Mumbai region in 2000, it has grown into
a trusted and well-established shopping destination in Maharashtra, Gujarat, Andhra Pradesh and
Karnataka. D-Mart is now looking forward to growing its stores across India. Culture At ASL,
we ‘re strong believers in deriving excellence in customer service through systemic training and
rigor at work. We value simplicity and humility in our people and strongly believe that integrity
and merit is the only route to growth at ASPL. We hire professionals who share our values and
unabashedly lead by example Vision
It is our continuous endeavour to investigate, identify and make available new
products/categories for the
customer ‘s everyday use and at the ‗best ‘value than anybody else D-Mart is a chain of
hypermarkets in India
founded by Radhakrishnan Damani in the year 2002. As of October 2018, it had 160 stores
across India in the
states of Maharashtra, Andhra Pradesh, Telangana, Gujarat, Madhya Pradesh, Chhattisgarh,
Rajasthan, National
Capital Region, Tamil Nadu, Karnataka and Punjab. DMart is a one-stop supermarket chain that
aims to offer customers a wide range of home and personal products under one roof. Each DMart
store stocks home utility products – including food, toiletries, beauty products, garments,
kitchenware, bed and bath linen, home appliances and more - available at competitive prices that
27
the customers typically appreciate. The core objective of DMart is to offer customers products at
competitive value. DMart is promoted by Avenue Supermarts Ltd. (ASL). The company has its
headquarters in Mumbai.
2. History
Founded in Powai, Mumbai, Maharashtra on 15 May 2002; (16 years ago) founded by
Radhakrishnan Damani Headquarters in Anjaneya Cooperative Housing Society Ltd, Orchard
Avenue, Powai, Mumbai, Maharashtra, India.
Competitors
1) Big Bazaar
2) Easy day
3) Food world
4) Hyper City
5) More.
6) Urban Ladder
7) Reliance Fresh
8) Spencer's
Presence
D-Mart's expansion began in 2007, when stores were opened in Ahmedabad, Baroda, Pune,
Sangli, Andhra
Pradesh Hyderabad, Karnataka, Bangalore Today D-Mart is established in 46 locations across
Maharashtra,
Gujarat, Andhra Pradesh and Karnataka.
In Maharashtra,
• Mumbai
• Navi Mumbai
• Thane
• Pune
• Solapur
• Sangli
• In Gujrat
• Ahmedabad
• Rajkot
• Baroda
• Amravati
• Surat
• Anand
• Kolhapur
36• In Andhra Pradesh
• Hyderabad
• Karnataka
• Bangalore
Offerings:
D-Mart offers a wide selection of products in the following categories:
• Foods
• Toiletries and Beauty products
• Garments
28
• Kitchenware
• Bed and Bath linen
• Toys & Games Stationery
• Home Appliances
• Footwear
3. Marketing mix of D-Mart

Product in the Marketing Mix of D-Mart:
D-Mart is a one-stop outlet that offers a wide range of choice in home and personal products to
its customers. It
believes in mass commodities and therefore its products are available in different sizes and
colours. Apparels are displayed in a systematic manner in accordance with their size options.
Retail price, actual discount and offer price are displayed on the tags for the convenience of
customers. Area of the outlet is divided in accord with products as every product has a separate
section from which a customer can easily make a choice. Each D-Mart outlet has following
products in its portfolio- • Food items including vegetables, fruits, dairy products, frozen eatables
• Grocery items like flour, rice, dal, sugar, salt
• Apparels for kids, male and females
• Beauty products and personal care including soap, shampoo, cleanser, toner
• Kitchenware including crockery, utensils, plastic containers
• Toys and games for children
• Home appliances like iron, mixer grinder, grill toaster
• Bed and bath linen
• Luggage like trolley bags
38• Footwear for everyone including children, men and women
• Daily essentials like biscuits
Place in the Marketing Mix of D-Mart:
D-Mart has a reach in most of the important cities in India including Ahmedabad, Surat, Rajkot,
and Bhuj in Gujarat, Tirupati in Andhra Pradesh, Hyderabad in Telangana, and Bangalore in
Karnataka, Mumbai and Kolhapur in Maharashtra. It is able to provide its products through a
network of one hundred and ten stores and has its headquarters base in Mumbai, India. D-Mart
has set up its stores at very strategic points to gain maximum advantage from its locations
because easy accessibility and proper transportation facilities are very important for
the survival of any outlet. Exceptional service is not the vital factor for such outlets. They have
reliable and trained employees to help customers in hours of need but the consumers are
generally self-sufficient and are likely to pick up items from various shelves themselves in a
walking trolley basket and take it to billing counter for payment. Price in the Marketing Mix of
D-Mart: D-Mart is a departmental store and believes in levying an economic pricing policy for
its products. The company has taken a low-cost approach to target that group which is price
sensitive. As mass merchandise is its mantra it has kept prices at reasonable and economic rates
so that a customer can easily purchase it. D-Mart has adopted a simple strategy of garnering huge
sales through affordable prices and keeping price range within reach of customers are its top
priority. It offers a 5% of minimum discount on MRP at any given time on all items except
fruits, grocery, vegetables and medicines. D-Mart has also adopted a discount pricing policy and
it periodically offers its customers various incentives and lucrative discounts, especially during
29
festival seasons. Customers at such times buy in bulk quantities resulting in a huge volume of
sales. This is the reason why such stores are able to earn greater revenues.
Promotions in the Marketing Mix of D-Mart:
D-Mart is one of the largest multi-brands in India and to maintain its position as one of the best,
company has adopted several promotional activities. It offers gift coupons to reward its
employees and during certain periods to boost its sales, coupons are also allotted to customers
when they meet certain standards of bulk purchase. Discounts are offered during festive seasons,
for example, there was a 10% off on prices of Cadbury products during Raksha Bandhan. D-
Mart also creates brand awareness and visibility through hoardings. Latest offers and schemes
can be easily known through its promotional activities that are published in newspapers.
Strengths are defined as what each business does best in its gamut of operations which can give
it an upper hand over its competitors. The following are the strengths of DMart:
38Focus on long-term: Damani, the founder of D Mart is an investor and thus the company has
been focused entirely on long-term gains. This has made the company maximise its returns
through a value is driven pricing strategy. Slow scaling up: D Mart started off on a very low key
note and slowly took its time to move up the ladder. This gave the company a better control and
deeper understanding of its supply chain and also helped them manage the bottom line better.
People-centric management style: D Mart has a very good employee policy in place and is very
transparent in its employee relations. They also have a good relationship with vendors and
suppliers and the stakeholders are happy. Discount Policy: One factor that delineates D Mart
from its competitor is its huge discount policy. The retailer sells essential goods at a flat discount
price which most competitors cannot match and this helped them penetrate the market.
Clear price-based differentiation: D Mart never followed the trends set by other competing retail
brands but believed in setting their own trends. They captured the market through a clear price-
based differentiation and priced their goods at significantly lower prices than competitors.
4. Weaknesses
Weaknesses are used to refer to areas where the business or the brand needs improvement.
Some of the key weaknesses of D Mart are: Focus on certain places: Quite unlike their
competitors, who are present everywhere, D Mart has focused more on the Western States and
has a very low presence in the South. This has restricted them from gaining market
prominence. Slow growth: D Mart has established almost 16 years ago much before the retail
boom set a fire in India. However, it has not been able to capture the market even as much as
many of the later entrants primarily because of its long term focus. Sustainability of low
pricing: The Company has a zero-credit policy and thus vendors and suppliers give them a
much better price which is how the company is able to afford the low prices that the competitors
cannot imagine. No frills: D Mart follows a no-frills approach where the focus in to cut costs
wherever possible. Their facilities are basic and lack the frills of most upmarket retailers. The
customers who come here essentially look at the low prices of products on offer. So thus, the
sustainability of this differentiator is questionable.
5. Opportunities
Opportunities refer to those avenues in the environment that surrounds the business on which it
can capitalize to increase its returns. Some of the opportunities include:
Technology: Technology has a lot to offer to retailers in terms of in-store experiences and
retailer can use IoT, artificial intelligence etc to create value-adding services to them customers
for which a premium can be charged. Personalization of services: Customers are looking for
30
personalized services for which they are willing to pay extra. Retailers should capitalize on this
propensity to pay more and increase the quality of their services.
6. Threats
Threats are those factors in the environment which can be detrimental to the growth of the
business. Some of the threats include:
Online retailers: People in cities especially are highly lethargic about leaving their homes and
prefer to shop online today. Companies like Amazon and Flipkart thus become major threats to
most retailers. Online Start-ups: The hottest trend in India are online start-ups. Many of them are
aggregators who bring together the supplier and the customer cost-effectively? These companies
are the emerging threats more so because many new brands are cropping up in the aggregation
market primarily because of lower barriers to entry. D-Mart seeks to provide a one-stop shopping
experience for the entire family, meeting all their daily household needs. A wide selection of
home utility products is offered, including foods, toiletries, beauty products, garments,
kitchenware, bed and bath linen, home appliances and much more. Since D-Mart first opened its
doors in the Mumbai region in 2000, it has grown into a trusted and well-established shopping
destination in Maharashtra, Gujarat, Andhra Pradesh and Karnataka. D-Mart is now looking
forward to growing its stores across India.
7. SWOT analysis of D mart

Strengths are defined as what each business does best in its gamut of operations which can give
it an upper hand over its competitors. The following are the strengths of D Mart:
• Focus on long-term: Damani, the founder of D Mart is an investor and thus the company has
been focused entirely on long-term gains. This has made the company maximise its returns
through a value is driven pricing strategy. • Slow scaling up: D Mart started off on a very low
key note and slowly took its time to move up the ladder.
This gave the company a better control and deeper understanding of its supply chain and also
helped them manage the bottom line better.
• People-centric management style: D Mart has a very good employee policy in place and is very
transparent in its employee relations. They also have a good relationship with vendors and
suppliers and the stakeholders are happy.
• Discount Policy: One factor that delineates D Mart from its competitor is its huge discount
policy. The retailer sells essential goods at a flat discount price which most competitors cannot
match and this helped them penetrate the market.
40• Clear price-based differentiation: D Mart never followed the trends set by other competing
retail brands but believed in setting their own trends. They captured the market through a clear
price-based differentiation and priced their goods at significantly lower prices than competitors.
Weaknesses:
Weaknesses are used to refer to areas where the business or the brand needs improvement. Some
of the key weaknesses of D Mart are:
• Focus on certain places: Quite unlike their competitors, who are present everywhere, D Mart
has focused more on the Western States and has a very low presence in the South. This has
restricted them from gaining market prominence.
• Slow growth: D Mart has established almost 16 years ago much before the retail boom set a fire
in India. However, it has not been able to capture the market even as much as many of the later
entrants primarily because of its long-term focus.
31
• Sustainability of low pricing: The company has a zero-credit policy and thus vendors and
suppliers give them a much better price which is how the company is able to afford the low
prices that the competitors cannot imagine.
• No frills: D Mart follows a no-frills approach where the focus in to cut costs wherever possible.
Their facilities are basic and lack the frills of most upmarket retailers. The customers who come
here essentially look at the low prices of products on offer. So thus, the sustainability of this
differentiator is questionable.
Opportunities:
• Opportunities refer to those avenues in the environment that surrounds the business on which it
can capitalize to increase its returns. Some of the opportunities include:
•
: Technology has a lot to offer to retailers in terms of in-store experiences and retailer can use
IoT, artificial intelligence etc to create value-adding services to their customers for which a
premium can be charged.
• Personalization of services: Customers are looking for personalized services for which they are
willing to pay extra. Retailers should capitalize on this propensity to pay more and increase the
quality of their services.
Threats:
Threats are those factors in the environment which can be detrimental to the growth of the
business. Some of the threats include:
41• Online retailers: People in cities especially are highly lethargic about leaving them homes
and prefer to shop online today. Companies like Amazon and Flipkart thus become major threats
to most retailers.
• Online Start-ups: The hottest trend in India are online start-ups. Many of them are aggregators
who bring together the supplier and the customer cost-effectively. These companies are the
emerging threats more so because many new brands are cropping up in the aggregation market
primarily because of lower barriers to entry.
CHAPTER 6
DATA ANALYSIS AND INTERPRETATION
6.1 Data Analysis
Big-Bazaar Big Bazaar offers a wide range of products which range from apparels, food, farm
products, furniture, child care, toys, etc. of various brands like Pantaloon, Levi’s, Allen Solly,
Pepsi, Coca- Cola, HUL, ITC, P&G, LG, Samsung, Nokia, HP etc. Big Bazaar also promotes a
number of in-house brands like: - DJ & C - Tasty Treat.
Four Cs!
BIGBAZAAR
1 2 3 4 5 6
% % % % % %
Advertiseme 17.05 20.45 9.09 11.36 17.61 24.43
nt
Reference 11.93 16.47 20.45 15.9 14.77 20.45
Experience 16.48 14.78 21.02 14.2 11.36 22.16
Quality 16.48 9.66 24.43 22.16 15.91 11.36
Quantity 21.59 21.02 10.8 12.5 24.43 9.66
32
- Consumer wants and need Vs Product - Cost to satisfy Vs Price - Convenience to buy Vs Place
- Communication
Vs Promotion HUC - Hindustan Unilever Ltd. ITC – Indian Tobacco Company P&G - Procter &
Gambler ANALYSIS: Give response for choose product from the store to First rank D-Mart is
16.12%, & Second rank is 22.58%, & Third rank is 20.16%, & Fourth rank is 13.70%, & Fifth
rank is 12.09%, & Sixth rank is 15.32% of them Advertisement. Give First rank is 14.51%, &
Second rank is 19.35%, & Third rank is 15.32%, & Fourth rank is 18.54%, & Fifth rank is
20.16%, & Sixth rank is 12.09%, of them Reference. Give First rank is 25%, & Second rank is
17.74%, & Third rank is 22.58%, & Fourth rank is 8.06%, & Fifth rank is 11.29%, & Sixth rank
is 15.32%, of them Experience. Give First rank is 23.38%, & Second rank is 12.09%, & Third
rank is 7.25%, & Fourth rank is 17.74%, & Fifth rank is 16.12%, & Sixth rank is 23.38%, of
them Quality. Give First rank is 10.48%, & Second rank is 13.70%, & Third rank is 20.96%, &
Fourth rank is 21.77%, & Fifth rank is17.74%, & Sixth rank is 15.32% of them Quantity. Give
First rank is 10.48%, & Second rank is 14.51%, & Third rank is 13.70%, & Fourth rank being
20.16%, & Fifth rank is 22.58%, & Sixth rank is 18.54% of them Service BIG BAZAAR
6.2 DATA INTERPRETATION

Majority of the customers are given response for interested to buy under unexpected offers only.
Big-Bazaar The pricing objective at Big Bazaar is to get ³Maximum Market Share. Pricing at Big
Bazaar is based on the following techniques: Value Pricing (EDLP – Every Day Low pricing):
Big Bazaar promises consumers the lowest available price without coupon clipping, waiting for
discount promotions, or comparison shopping. Promotional Pricing: Big Bazaar offers financing
at low interest rate. The concept of psychological discounting (Rs.99, Rs. 49, etc.) is also used to
attract customers. Big Bazaar also caters on Special Event Pricing (Close to Diwali, Gaudi
Padova, and Durga Pooja). Differentiated Pricing: Differentiated pricing i.e. difference in rate
based on peak and non- peak hours or days of shopping is also a pricing technique used in Indian
retail, which is aggressively used by Big Bazaar. e.g. Wednesday Bazaar Bundling: It refers to
selling combo-packs and offering discount to customers. The combo- packs add value to
customer and lead to increased sales. Big Bazaar lays a lot of importance on bundling. e.g. 3
Good Day family packs at Rs 60(Price of 1 pack = Rs 22) 5kg oil + 5kg rice + 5kg
sugar for Rs 599 Big Bazaar is a household name that is used synonymously with ‘retail’ in
India. We represent the requirements of a typical Indian home. Founded in 2001 by Kishore
Biyani, we as a retail chain operate under the parent organisation – Future Group – that holds a
significant prominence in the Indian retail and fashion sectors. Big Bazaar is one of the oldest
hypermarket chains that houses around 250+ stores in the country. We cover three essential
categories in Indian retail: home, food, and fashion. Popular retail chains – like the Food
Bazaar and fbb form an integral part of Big Bazaar’s identity. The latter (i.e. fbb) has
exponentially grown into a major brand that epitomizes fashion in India.
As we can see 31.5% people prefer D-Mart whereas 32.4% people prefer Big Bazaar. 27.8%
people go for both D-Mart as well as Big Bazaar and 8.3% don’t go at both places.
44In this Pie Chart we can see that 31.5% people visit the store monthly whereas 33.3% people
go weekly. 27.8% respondents go daily to D-Mart and Big Bazaar and 7.4% prefer to visit the
store yearly. From 107 respondents we can assume that 50.5% respondents feel that D-Mart
33
advertisement is more powerful than of Big Bazaar. So, from this we can conclude that DMart
advertising is more powerful than Big Bazaar From 108 respondents we learn that 21.3% people
spend below 1000rs whereas 40.7% people spend 1000-2000rs. There are 22.2% people who
spend more than 5000rs in store. 15.7% people prefer to spend between 2000-5000rs.
From the Pie Chart we can learn that from 108 respondents 40.7% people like the gift voucher
offers whereas 25.9% people prefer future cards. 33.3% people prefer buy 1 get 1 free offer the
most. From different kind of services 32.4% people go to store for accessories whereas 27.8%
people visit store for food. 25% people go to store for purchasing of clothes and 14.8% for
stationary. Among different factors of D-Mart 32.7% people are attracted to D-Mart because of
its offer whereas 29.9% people prefer D-Mart because of its services.21.5% people are attracted
to D-Mart because of availability of products and 15.9% people prefer quality. 45From different
factors of Big Bazaar 35.2% people are attracted towards Big Bazaar due to its offer whereas
31.5% people are attracted because of its services. 20.4% people are attracted to it because of its
quality and 13% people are attracted due to its availability of products. People get to know about
stores through different advertisement. 37% of people knows about the D-Mart through T.V
whereas 31.5% people know about D-Mart through Hoardings and Newspaper. People come to
know about Big Bazaar through different advertisements.
35.2% people know about Big Bazaar through Hoardings whereas 34.3% people get to know
about it through T.V. 34.3% people know through Newspaper. Advertisement effects many
people shopping behaviour. In this survey which contains 106 respondents 48.1% people has
effect on their shopping behaviour through advertisement whereas 51.9% people shopping
behaviour doesn’t get effected through advertisement.
1) What is your gender?
2) What is your age?
3) What is your occupation?
34
4) How many members are in your family?
5) Which store comes in your mind when you think of purchasing a product?
6) How frequently do you visit a store?
7) Which store’s advertisement is more powerful?
35
8) What is the level of satisfaction of customers of the serviceprovided?
9) What is the level of purchase?
10) How much do you spend as monthly expense while shopping?
36
11) Main reason for coming to the store?
12) The advertisement effect your shopping?
13) Are you agree with the tagline of big bazaar ‘ isse sasta aur achha kahin nahin ?
14) Are you agree with the tagline of D-mart ‘ daily discounts, daily savings…!?
37
15) Which section of the D-mart store do you like the most?
From above analysis it is observed that 11 number of customer’s level of purchase from Big
Bazaar is 10% for
shopping at the level that is below 1000. While 34 number of customer level of purchase is 31%
for below 3000.
And 48 number of customer level of purchase is 44% for below 5000. Also there are 17 number
of customers from above analysis we can see that 17 number of customers level of purchasing in
D-mart is 17% for level below 1000, for level below 3000 there are 46 number of customers
making it 46% while 34 number of customers level of purchase is 34% that is below 5000 and
the remaining 3 number of customers go for purchase level of above 5000.
6.3 INDUSTRYANALYSIS
D'MART
D-mart Exclusive, Dolphin Mart's home decor and gifting solutions brand, plans to open around
35 stores and is targeting a turnover of Rs 80 crore this fiscal. In the current financial year, the
company plans to invest a total sum of Rs 20-25 crore for expansion. DMart Exclusive plans to
open 3 stand-alone showrooms, 15-16 boutiques at airports/ malls, and 14-16 franchise stores
this fiscal. It also plans to open a kiosk at T3 Terminal in Delhi and stores in tier 2 and 3 cities as
well. The company will also venture into e-commerce by the end of this year. Dolphin Mart is
the importer and distributor of premium signature art and decor pieces including silverware,
crystal ware, limited edition collectibles, objects d ‘art, figurines, furniture accessories and gifts
items, selected and sourced from international brands in Italy, Spain, Germany, France, UK, and
China. The company claims that DMart Exclusive is the sole product distributor for such
premium brands in India as per an agreement. Speaking about the location preferences for its
new stores, Praveen Rao, Vice President, and Dolphin Mart, said: ―The ideal location to open a
new store depends on a number of factors. Our first preference is stand-alone showrooms
on high streets, followed by reputed mall/shopping complexes. Highlighting the key
requirements of a franchisee, he said that an exclusive franchisee would be required to invest a
38
sum of Rs1 crore and must have an area of 1,200 sq. Ft. while a nonexclusive franchisee would
have to invest Rs 30 lakh and have an area between 800 and 1,000 sq. Ft. For the shop-in-shop
format, the franchisee will have to invest up to Rs 20 lakh and must have an area of
500-600 sq. Ft. He confirmed that DMart Exclusive spends 10 percent of its total sales on
advertising and marketing including more than 15 exhibitions annually. Kiosks are an important
lead creation point for the retailer. Stores contribute 35 percent towards total sales of DMart
Exclusive to Rao, among all the productssold at demark Exclusive, the price band between Rest
25,000 and Rs 35,000 is the most popular among Indian customers. Worldwide limited editions
sell the most in India, contributing almost 60 percent towards the total sales of the
company. There is a huge untapped market for the Rs 140 billion home improvement vertical in
India. Indian
consumers have disposable incomes and are looking for more upgraded lifestyles,
which DMart Exclusive caters to. The market has also extended from metro to tier 2 cities as
well, which shows exponential growth in the sector.
Big bazaar
48Big Bazaar: This hypermarket chain was introduced in India by Pantaloon Retail (India)
Limited. The year was 2001. The first store opened in Kolkata and was followed by stores in
Hyderabad and Bangalore, in a short span of 22 days. These stores contributed over Rs 43 crores
to the company’s turnover and over Rs 2.89 crores to the PBDIT in the first year itself. In 2006-
2007 more Indians discovered the value of shopping in Big Bazaar. Big
Bazaar launched 27 new stores in 22 cities, covering over 1.40 million square feet. While Big
Bazaar continued to expand in the large cities it also tapped consumptions potential in smaller
cities like Agra, Allahabad, Coimbatore, Surat, Panipat, Palakkad, Kanpur, and Kolhapur. By
May 2008, there were 89 Big Bazaars spread across various cities and towns across the country.
―Jo bazaar main milta who sab yahan milta hai‖is how Rakesh Biyani Director Pantaloon Retail
(India) Limited describes Big Bazaar. The bazaar is a term commonly used for the market or
market place. Whenever any of us need anything the simplest way to get it is to go to the bazaar.
Big Bazaar represents a location where a customer can shop for anything that he needs for which
he would normally visit a bazaar or the markets Retail in India is still at a nascent stage. This
case study has been prepared
as a basis for discussions, on evolving formats suitable for India. Pantaloon Retail (India)
Limited was incorporated as Manz Wear Private Limited in the year 1987. It became a public
limited company in 1991 and was renamed Pantaloon Fashions (India) Limited and then
Pantaloon Retail (India) limited in 1999. Over the years the company has accelerated growth
through its ability to manage change. It integrated backwards into garment
manufacturing and expanded its retail network at the same time. It launched three successful
brands – Pantaloon trouser bar denims and John Miller shirts between 1987 and 1993. The
company introduced the concept of The Pantaloon Shoppe, an exclusive man ‘s wear retail store,
which expanded across India from 1994-1998. In the year 1997, Pantaloon moved to large
format lifestyle retailing with the launch of Pantaloons India ‘s family Store. Pantaloon has
grown to a 29-store network and occupies 263,000 sq. ft of the retail space. They contributed Rs
174 crores to the total turnover of the company. The management was aware that in retail, size
mattered. The business revolved around volumes. Lifestyles retailing did not rally provide these
volumes the volumes came from the large Indian middle-class market that was waiting to be
tapped. Big Bazaar – the discount store — was launched in the year 2001, to meet the aspirations
39
of the middle class. In a short span of two years it had added a Food Bazaar and Gold Bazaar to
its ranges of offerings. At the time of the launch of Big Bazaar there was no real precedent in the
Indian market Giants the RPG hypermarkets had opened in Hyderabad only two months prior to
the launch of Big Bazaar. A western model had to be adapted to suit the needs of the Indian
environment various local markets and local market leaders were studied. This was done to
understand the product mix and the prices offered. One of the key discount retailers studied was
Sarvanana Stores in Chennai. Saving is the key to the Indian middle-class consumer. The store
which would be created had to offer value to the consumer.
Chapter 7
CONCLUSION
Big Bazaar & D-Mart are a major shopping complex for today ‘s customers. It is a place where
customers find variety of products at a reasonable price. Big Bazaar & D-Mart has a good
reputation of itself in the market. It has positioned itself in the market as a discounted store. It
holds a huge customer base. The majority of customers belong to middle class family. The youth
generation alsolikes shopping and moving around Big Bazaar & D-Mart. Volume sales always
take place in Big Bazaar & D-Mart. Impulse buying behaviour of customers comes in to play
most of the times in Big Bazaar & D-Mart. Big Bazaar & D-Mart is a hypermarket as it provides
various kinds of goods like apparels, grocery, stationary, food items, electronic items, leather
items, watches, jewellery, crockery, decorative items, sport items, chocolates and many more. It
competes with all the specialty stores of different products which provide goods at a discounted
rate all throughout the year. It holds a large customer base and it seemed from the study that the
customers are quite satisfied with Big Bazaar & D-Mart. As of now there are 34 Big Bazaar &
D-Marts in different cities of India, it seems that there is a vast growth of Big Bazaar & D
Mart lying as customers demand; increasing for Big Bazaar & D-Marts. It has emerged as a hub
of shopping specially for middle class people. Different types of products starting from a baby
food to pizzas wide range is available under one roof. In Delhi it is the middle-class people who
mostly do marketing from Big Bazaar & D Mart. Even most of the people do their monthly
hopping from Big Bazaar & D-Mart. People not only visit Big Bazaar & D-Mart to do shopping
but also visit for outing purpose as it provides a very nice ambience to its customers. As people
go to malls, they just tend to move around Big Bazaar & D-Mart whether it is for shopping
purpose or for outing purpose. Grocery, apparels and food items are the products which are
demanded most by the customers of Ahmedabad in Big Bazaar & D-Mart. The major drawback
of Big Bazaar & D-Mart is that it lacks in providing enough parking space for their customers.
This may discourage the customers to come to Big Bazaar & D-Mart and shop as they face
difficulty in parking their vehicles. Even though some customers say that they don ‘t feel
problem in parking their vehicle, it is because of the parking space available to them by the mall.
As it is surveyed it seems that the biggest competitors of Big Bazaar & D-Mart are the kerana
stores, discounted specialty stores like Vishal mega mart, The Tata Groups (Croma), Reliance
Retail, & Sabkha Bazaar etc. 50
40
Chapter 8
SUGGESTIONS
• Big bazaar and d-mart should provide large parking space for its customers so that they can
easily park
their vehicles.
• The infrastructure is needed to be changed a bit during weekends as heavy crowd comes in to
big bazaar
and d-mart during those days
• Big bazaar and d-mart should include more of branded products its product category so as to
attract the
brand choosy people to come in to big bazaar.
• Big bazaar should keep offers in regular intervals so that there should not be a long-term gap,
because
offer is the most influencing factor which is responsible for customer purchase decision
• they also concentrate on TV advertisement they should show ads and promotional offers in a
regular
interval in languages like Hindi English.
• Hoarding should be placed uncovered area.
Chapter 9
BIBLIOGRAPHY
Reference Books
Booksname Author/publication
MARKETING Kotler, Phillip.
MANAGEMENTAND Armstrong,PHI pub.:
BUSINESSBUYER Delhi,ed.
BEHAVIOR. 9th. (pp.218-224,335-
353,411-413,559-561,)
Websites
• http://www.bigbazaar.co.in
• http://en.wikipedia.org/wiki/Marketing_management
• http://dmartindia.com/home.html
• https://www.marketing91.com/swot-analysis-d-mart/
• https://thewire.in/business/indian-walmart-making-explains-d-mart-success
1.NAME
2) GENDER:
Male
Female
3) Age.
a) 18-20
b) 21-26
c) 26-30
d) 30 and above
4) OCCUPATION:
a) Student
41
b) Employed
c) Self employed
d) Others______
5) How many members are in your family?
a) 0-2
b) 2-4
c) 4-6
d) More than
6) Which store first comes to your mind when you think of purchasing
a product?
a) Big Bazaar
b) D-mart
c) Both*
How frequently do you visit a store?
a) Daily
b) Weekly
c) Monthly
d) Yearly
What is the level of satisfaction of customers of the serviceprovided?

a) satisfied
b) unsatisfied
what is your level of purchase?

a) Bigbaazar
b) D-mart
Which store’s advertisement is more powerful?

a) Big Bazaar
b) D-mart
9) How much do you spend as monthly expense while shopping?
a) Below 1000
b) 1000-2000
c) 2000-5000
d) More than 5000
10) Main reason for coming to the store? {Give only first 5 rank}
a) Value for money
b) Discount
c) Saving of time
d) Wide product range available
e) Brand consciousness
f) Other________
11) The advertisement effect your shopping behaviour?
a) Yes
42
b) No
12) Are you agree with the tagline of big bazaar ‘Isse Sasta Aur Acha Kahin
Nahin’?
a) Yes
b) No
13) Are you agree with the tagline of D-Mart ‘Daily Discounts, Daily Savings…!’?
a) Yes
b) b) No 14) Why big bazaar called big bazaar?
a) Widest range of products
b) Varieties of different brand
c) Other_________
15) Which section of the D-Mart store do you like the most?
a) Food Mart
b) Household
c) Kids
d) Jewel mart
43

Comparative Study On Dmart and Big Bazaar

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COMPARATIVE STUDY ON D-MART AND BIG BAZAAR

University of Mumbai for partial completion of the degree of

'RACHCHA VINAYAK SATYANARAYAN'

This is to certify that Ms./Mr. 'RACHCHA VINAYAK SATYANARAYAN'has worked and

Project Guide Principal

I, the undersigned 'RACHCHA VINAYAK SATYANARAYAN' of PADMASHRI

COMPARATIVE STUDY ON D-MART AND BIG BAZAAR

shopping environment – protecting customersfrom varioustypes of weather conditions such as

GROWTH OVER 1997-2010

GROWTH AFTER 2011

1.2 RETAIL MARKETING

Types of Major Retail Outlets:

.3 RETAIL MARKETING MIX:

I. The basic components of product mix are:

6) Warehousing and Storage

• To comprehend the determinants of customer satisfaction.

THE GAP MODEL:

1. Introduction of BIG BAZAAR

CURRENT POSITIONING STRATEGY OF BIG BAZAAR:

4.4 ADVERTISING: THE ESSENTIAL OF BRAND BUILDING PROCESS

3. Marketing mix of D-Mart

7. SWOT analysis of D mart

6.2 DATA INTERPRETATION

1) What is your gender?

2) What is your age?

3) What is your occupation?

4) How many members are in your family?

6) How frequently do you visit a store?

7) Which store’s advertisement is more powerful?

8) What is the level of satisfaction of customers of the serviceprovided?

9) What is the level of purchase?

10) How much do you spend as monthly expense while shopping?

11) Main reason for coming to the store?

12) The advertisement effect your shopping?

What is the level of satisfaction of customers of the serviceprovided?

what is your level of purchase?

Which store’s advertisement is more powerful?

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