Shivkumar Jain Big Bazaar Project Final Report

D.Y.
PATIL UNIVERSITY
SCHOOL OF HOSPITIALITY & TOURISM STUDIES,
NERUL NAVI MUMBAI, 400706.
(Approved by Maharashtra Govt.)
STUDY ON RESEARCH PROJECT

“A STUDY ON THE EFFECTIVE PROMOTIONAL STRATEGY WHICH
INFLUENCES CUSTOMER TO PURCHASE A PRODUCT OF BIG
BAZAAR”
A Report Submitted in Partial Fulfillment of

The Requirement for the Research Project
2015 - 2016
SUBMITTED BY
MR. SHIVKUMAR J. RANA
BATCH: R
ROLL NO. 62
D.Y. PATIL UNIVERSITY,

NERUL NAVI MUMBAI REPORT SUBMITTED BY:
SHIVKUMAR RANA
DECLARATION
I HEREBY DECLARE THAT THE RESEARCH PROJECT
“BIG-BAZAAR” SUBMITTED FOR BACHELOR OF
HOSPITALITY AND MANAGEMENT STUDIES AT DR. D.Y.
PATIL UNIVERSITY, SCHOOL OF HOSPITALITY AND
TOURISM STUDIES IS MY ORIGINAL WORK.
Signature of Student

SHIVKUMAR RANA
CERTIFICATE
THIS IS TO CERTIFY THAT THE RESEARCH PROJECT
“BIG-BAZAAR” SUBMITTED BY MR. SHIVKUMAR
J. RANA IS A BONAFIDE RESEARCH WORK FOR THE
AWARD OF BACHELOR OF THE D.Y.PATIL UNIVERSITY,
SCHOOL OF HOSPITALITY AND TOURISM STUDIES
SIGNATURE OF DIRECTOR SIGNATURE OF STUDENT
SIGNATURE OF GUIDE SIGNATURE OF FACULTY

INCHARGE

SHIVKUMAR RANA
ACKNOWLEDGEMENT
I AM INDEBTED TO THE D.Y. PATIL UNIVERSITY,

SCHOOL OF HOSPITALITY AND TOURISM STUDIES,
FOR GIVING ME EXCELLENT OPPORTUNITY TO CARRY OUT A
PRESENT RESEARCH PROJECT.
I AM HIGHLY GRATEFUL TO OUR DIRECTOR WHO

HAS BEEN A SOURCE OF SUPPORT, AND ENCOURAGEMENT.
MY SINCERE THANKS TO MRS. BHAVANI S.
Place:-
Signature of the Student.

SHIVKUMAR RANA
INDEX
CHAPTER NO. TOPIC PAGE NO.
I SUMMARY 1
II INDUSTRY PROFILE 8
III EVOLUTION OF INDIA IN RETAIL INDUSTRY 10

IV COMPETITION IN RETAIL 14
V BOARD OF DIRECTOR 25
VI COMPANY PROFILE 26
VII STORE STUDY 31
VIII FUTURE PLANS OF BIG BAZAAR 46
IX ORGANIZATIONAL STRUCTURE 48
X STORE STRUCTURE 49
XI VISION & MISSION 50
XII SUPPLY CHAIN MANAGEMENT 55
XIII MY LEARNING 56
XIV RESEARCH METHODOLOGY 57
XV ANALYSIS & INTERPRETATION 60
XVI FINDINGS 69
XVII RECOMMENDATIONS 71
XVIII CONCLUSION 72
XIX LIMITATIONS 73
XX ANNEXURE 74
XXI BIBLIOGRAPHY 76

SHIVKUMAR RANA
SHIVKUMAR RANA
EXECUTIVE SUMMARY
Indian retail sector is witnessing one of the most hectic Marketing activities of all
times. The companies are fighting to win the hearts of customer who is God said by the
business tycoons. There is always a ‘first mover advantage’ in an upcoming sector. In India,
that advantage goes to “BIG BAZAAR”. It has brought about many changes in the buying
habits of people. It has created formats, which provide all items under one roof at low rates, or
so it claims. In this project, we will study its marketing strategies and promotional activities.
The research titled ‘A Study on the effective promotional strategy which influences
customer to purchase a product of Big Bazaar’ helps us to understand the effect of
promotional strategy which is responsible for attracting customer towards big bazaar This
study helpful to top level management to improve the present promotional strategy of BIG
BAZAAR.
The report deals with the impact of promotional activity which attracting customer
towards big bazaar.
The research was carried out as per the steps of Marketing Research. The well
supportive objectives were set for the study. To meet the objectives primary research was
undertaken. The data collection approach adopted was experimental research & survey
research. The instrument used for the data collection was observation & questionnaire. The
target respondents were the visitors of BIG BAZAAR, with the sample size of 100 for the
study of sales management of the company. Tables & charts were used to translate responses
into meaningful information to get the most out of the collected data. Based on those the
inferences have been drawn with peer supportive data.


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INDUSTRY PROFILE
Introduction
Retail means selling goods and services in small quantities directly to customers.
Retailing consists of all activities involved in marketing of goods and services directly to
consumer for their personnel family and household use.
The Indian retailing industry is becoming intensely competitive, as more and more
payers are Vying for the same set of customers. The major retail players are Pantaloon Retail,
Shoppers Stop, Reliance, etc.,
Retailing is one of the biggest sectors and it is witnessing revolution in India. The new
entrant in retailing in India signifies the beginning of retail revolution. India's retail market is
expected to grow tremendously in next few years. According to AT Kearney, The Windows of
Opportunity shows that Retailing in India was at opening stage in 1995 and now it is in
peaking stage in 2006. India's retail market is expected to grow tremendously in next few
years. India shows US$330 billion retail market that is expected to grow 10% a year, with
modern retailing just beginning. India ranks first in 2005. In fact, in 2005 and 2006, India is
the most compelling opportunity for retailers, because now India is in peaking stage.
Sector details
1. Introduction to retail industries.
2. Retail word is derived French word retailer means to cut off a piece.
3. Retailing includes all the activities involved in selling goods or services to the final
customer for personnel or non-business use.
4. Supermarket is a retailing of a wide variety of consumer products under one roof,
ample stock, stock of several brands & extended business hours.

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History of retailing
Retail concept is old in India. World’s first departmental store started in Rome.
Today’s kirana stores are based on Manusmriti & Kautilya’s arthshastra.
Haats, Melas, Mandis & door to door salesmen are traditional Indian retail.
Vishal Mega Mart is a retail sector, which is providing good quality of products in very
reasonable price than its competitors. Retailing and wholeselling consist of many organizations
designed to bring goods and services from the point of production to the point of use.
Retailing includes all the activities involved in selling goods or services directly to final
consumers for their personal, non-business use. Retailers can be classified in terms of store
retailers, non-store retailing, and retail organizations.
Store retailers include many types, such as specialty stores, department stores,
supermarkets, convenience stores, superstores, combination stores, hypermarkets, discount
stores, warehouse stores, and catalog showrooms. These store forms have had different
longevities and are at different stages of the retail life cycle. Depending on the wheel-of-
retailing, some will go out of existence because they cannot compete on a quality, service, or
price basis.
Non-store retailing is growing more rapidly than store retailing. It includes direct
selling (door-to-door, party selling), direct marketing, automatic vending, and buying services.
Much of retailing is in the hands of large retail organizations such as corporate chains,
voluntary chain and retailer cooperatives, consumer cooperatives, franchise organizations, and
merchandising conglomerates. More retail chains are now sponsoring diversified retailing lines
and forms instead of sticking to one form such as the department store.
Retailers, like manufacturers, must prepare marketing plans that include decisions on
target markets, product assortment and services, store atmosphere, pricing, promotion,
And place. Retailers are showing strong signs of improving their professional management and
their productivity, in the face of such trends as shortening retail life cycles, new retail forms,
increasing intertype competition, and polarity of retailing, new retail technologies, and many
others.
Wholesaling includes all the activities involved in selling goods or services to those
who are buying for the purpose of resale or for business use. Wholesalers help manufacturers
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deliver their products efficiently to the many retailers and industrial users across the nation.
Wholesalers perform many functions, including selling and promoting, buying and assortment-
building, bulk-breaking, warehousing, transporting, financing, risk bearing, supplying market
information, and providing management services and counseling. Wholesalers fall into four
groups. Merchant wholesalers take possession of the goods and include full-service
wholesalers (wholesale merchants, industrial distributors) and limited-service wholesalers
(cash-and- carry wholesalers, truck wholesalers, drop shippers, rack jobbers, producers'
cooperatives, and mail-order wholesalers). Agents and brokers do not take possession of the
goods but are paid a commission for facilitating buying and selling. Manufacturers' and
retailers' branches and offices are wholesaling operations conducted by non-wholesalers to
bypass the wholesalers. Miscellaneous wholesalers include agricultural assemblers, petroleum
bulk plants and terminals, and auction companies.
Wholesalers, too, must make decisions on their target market, product assortment and
services, pricing, promotion, and place. Wholesalers who fail to carry adequate assortments
and inventory and provide satisfactory service are likely to be bypassed by manufacturers.
Progressive wholesalers, on the other hand, are adapting marketing concepts and streamlining
their costs of doing business.
CURRENT SCENARIO
India rank first in terms of emerging market potential in retail sector. Current retail
market is US $ 215 billion. Growth rate of retail sector in India is 8-10% per annum.
Near about 12 million retail outlets are spread across India.
FDI in retail sector increases from US $ 3.1 billion in 2003 to over US $7.6 billion in
2009.
TYPES OF RETAILERS
Retailers are broadly classified into 3 categories
 Food Retailers.
 General Merchandise Retailers.
 Service Retailers.

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OTHER SERVICES PROVIDED BY RETAILERS
Retail not only provides products to the customer but also gives different types of services like:
 Airlines & travel agents
 Banks
 Health clubs
 Hotel & Restaurants
 Movie theatres
TECHNOLOGIES USED IN RETAILING SECTOR
 In-store technologies-
 Interactive kiosks
 Virtual display case
 Radio Frequency identification tags
 Self-scanning & self-checkout system
 Body scanning
 Online technology-
 Online display of products
 Online shopping

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CHALLENGES
 Largely urban phenomenon, pace of growth is still slow.

 Not being recognized as an industry in India so availability of finance is low to
new market players.
 High cost of real estate.
 High stamp duties.
 Lack of infrastructure.
 Multiple & complex taxation system.
 Protest against retail sector.
FUTURE STRATEGY
 It is projected that up to 2010 retail sector will be worth around US $ 300 billion.
 FDI is going to increase rapidly, up to 2010 retail sector will become biggest industry
in India.
 Retail sector is expected to create 2 million jobs up to 2010.
 According to Indian Retail Report top 10 players in modern retail trade are going to
invest US $ 18-20 billion in next five years.
Sector Details
In India, the most of the retail sector is unorganized. In India, the retail business
contributes around 10 percent of GDP. Of this, the organized retail sector accounts only for
about 5 percent share, and the expected annual growth rate is 5% per annum and remaining
share is contributed by the unorganized sector. The main challenge facing the organized sector
is the competition from unorganized sector. Unorganized retailing has been there in India for
centuries, theses are named as mom-pop stores. The main advantage in unorganized retailing is
consumer familiarity that runs from generation to generation. It is a low cost structure, they are
mostly operated by owners, has very low real estate and labor costs and has low taxes to pay.
And it also gives 8% Employment to the country annually.

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In late 1990's the retail sector has witnessed a level of transformation. Retailing is being
perceived as a beginner and as an attractive commercial business for organized business i.e. the
pure retailer is starting to emerge now. Organized retail business in India is very small but has
tremendous scope. The total in 2005 stood at $225 billion, accounting for about 10% of GDP.
In this total market, the organized retail accounts for only $8 billion of total revenue.
According to A T Kearney, the organized retailing is expected to be more than $23 billion
revenue by 2010.
In organized retailing will grow faster than unorganized sector and the growth speed
will be responsible for its high market share, which is expected to be $ 17 billion by 2010-11.
The organized sector is expected to grow faster than GDP growth in next few years
driven by favorable demographic patterns, changing lifestyles, and strong income growth. This
organized retail sector mix includes supermarkets, hypermarkets discounted stores and
specialty stores, departmental stores. For example, Spencer network has 69 stores, which
includes seven Spencer hypermarkets, three Spencer super markets and 49 Spencer Daily’s.
Now the company is planning to open 20 stores in 10 cities in six months. The top 10 retailers
account only for 2% of total market, today modern retailing is expected to enter a boom phase,
which has major players and these players might capture 10% of total market, within next five
years. The retail sales in India for future are shown below (data from 2005-2008 is based on
estimates)

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The trend in the Industry
1. Low share of organized retailing
2. Falling real estate prices
3. Increase in disposable income and customer aspiration
Increase in expenditure for luxury items (CHART)
Another credible factor in the prospects of the retail sector in India is the increase in the
young working population. In India, hefty pay packets, nuclear families in urban areas, along
with increasing working-women population and emerging opportunities in the services sector.
These key factors have been the growth drivers of the organized retail sector in India which
now boast of retailing almost all the preferences of life - Apparel & Accessories, Appliances,
Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many
more. With this the retail sector in India is witnessing rejuvenation as traditional markets make
way for new formats such as departmental stores, hypermarkets, supermarkets and specialty
stores.

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Existing competition
 Reliance fresh.
 Aditya Birla group.
 Shopper’s Shoppe.
 Subhiksha.
 Big bazaar.
 Mark and Spencer’s.
The untapped scope of retailing has attracted superstores like Wal-Mart into India, leaving
behind the kiranas that served us for years. Such companies are basically IT based. The other
important participants in the Indian Retail sector are Bata, Big Bazaar, Pantaloons, Archies,
Cafe Coffee Day, landmark, Khadims, Crossword, to name a few.

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Evolution of Indian Retail Industry
Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take
place. The inception of the retail industry dates back to times where retail stores were found
in the village fairs, Mela’s or in the weekly markets. These stores were highly unorganized.
The maturity of the retail sector took place with the establishment of retail stores in the locality
for convenience. With the government intervention the retail industry in India took a new
shape. Outlets for Public Distribution System, Cooperative stores and Khadi stores were set up.
These retail Stores demanded low investments for its establishment. International Brand
Outlets, Hyper or Super markets, shopping malls and departmental stores

Retailing in India: a forecast
Future of organized retail in India looks bright. According to recent researches it is
projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will capture a
share of 10% of the total retailing by the end of 2010.
INDIA: A Hot Spot
India retail industry is the largest industry in India, with an employment of around 8%
and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise
25% yearly being driven by strong income growth, changing lifestyles, and favorable
demographic patterns.
It is expected that by 2016 modern retail industry in India will be worth US$ 175-
200 billion. India retail industry is one of the fastest growing industries with revenue expected
in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase
of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas,
rising incomes, and a steep rise in rural consumption. It has further been predicted that the
retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of
US$ 7.5 billion.

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

multiplex- malls and huge complexes offer shopping, entertainment and food all under one
roof, the concept of shopping has altered in terms of format and consumer buying behavior,
ushering in a revolution in shopping in India. This has also contributed to large-scale
investments in the real estate sector with major national and global players investing in
developing the infrastructure and construction of the retailing business.
Growth Drivers
Growth drivers in India for retail sector
 Rising incomes and improvements in infrastructure are enlarging consumer markets and
accelerating the convergence of consumer tastes.
 Liberalization of the Indian economy
 Increase in spending Per capital Income.
 Advent of dual income families also helps in the growth of retail sector.
 Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.
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 Consumer preference for shopping in new environs
The Internet revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains. Reach of satellite T.V.
 Channels are helping in creating awareness about global products for local markets.
 About 47% of India's population is under the age of 20; and this will increase to 55% by
2015. This young population, which is technology-savvy, watch more than 50 TV
satellite channels, and display the highest propensity to spend, will immensely contribute
to the growth of the retail sector in the country.
 Availability of quality real estate and mall management practices
 Foreign companies' attraction to India is the billion-plus population.
Employment opportunities in retail sector in India
India's retail industry is the second largest sector, after agriculture, which provides
employment. According to Associated Chambers of Commerce and Industry of India
(ASSOCHAM), the retail sector will create 50,000 jobs in next few years.
Retail companies are starting retail management courses in partnership with

management institutes, roping in talent from other sectors and developing comprehensive
career growth and loyalty plans for existing employees.
Top players like Pantaloon Retail India Limited, Trent, Shopper's Stop, RPG Group and
ebony are virtually on their toes.
Consider the plans of largest player, The Pantaloon Retail India Ltd, the company has
developed a comprehensive strategy, where in it expects that in 2years, it will not recruit any
new managers from outside.
"The estimated need is 1 lakh of employees till 2011", said Mr. Sanjoy Jog, HR Head at
Pantaloon Retail India Ltd. Pantaloon has the concept of partnership with educational Institute
to run retail courses across the entire chain. Trent has also started in-house learning
programmers and now goes to under graduate colleges to recruit students.
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Since, the job market is hugely receptive to this with more and more business schools
focusing on the sector and large retailers setting up retail academics.
Challenges of Retailing in India

In India the Retailing industry has a long way to go, and to become a truly flourishing
industry, retailing needs to cross the following hurdles:

* The first challenge facing the organized retail sector is the competition from unorganized
sector.
* In retail sector, Automatic approval is not allowed for foreign investment.
* Taxation, which favors small retail businesses.
* Developed supply chain and integrated IT management is absent in retail sector.
* Lack of trained work force.
 Low skill level for retailing management.
 Intrinsic complexity of retailing- rapid price changes, threat of product obsolescence
and low margins.
* Organized retail sector has to pay huge taxes, which is negligible for small retail business.
Many agencies have estimated differently about the size of organized retail market in 2010.
The one thing that is common amongst these estimates is that Indian organized retail market
will be very big in 2010. The status of the retail industry will depend mostly on external
factors like Government regulations and policies and real estate prices, besides the activities
of retailers and demands of the customers also show impact on retail industry.

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Competition in retail
India RetailBiz attempts to capture excitement of Retail Business in India by aggregating

the best in news, views, research, analysis, trends, technology, and competition dents retail
sector growth.
The performance of the retail sector in the last quarter of financial year 2008-09 has
been a gloomy one. Not only has the quarter-on-quarter growth declined by 700 basis point, on
year-on-year (YoY) basis, sales growth fell drastically from 67.8% to 49.1%. Including the
recently listed Koutons and Vishal Retail, all big retailers continue to be on an aggressive
expansion mode. This kind of competition is having a negative impact on margins of retailers,
as the target audience for all of them, more or less, remains the same.
The slowdown has triggered a volume game in the industry. Strategies like promotional
campaigns, freebies, promoting private labels and online discounts are just some of the avenues
that retailers are looking at to lure customers. According to analysts, this is a knee-jerk reaction
by the industry to fight the inflation-induced dent in the purchasing power of customers. As
they say, retail is a number game, so, big retailers are trying to push volumes. For some, it
comes at the cost of profit. Meanwhile, in contrast to YoY sales growth of 49% for the sector,
the interest cost has registered a whopping 96% growth. Though growing at a lesser 39%,
depreciation cost has also been impacting margins.
The cost factor too is adding to the woes. For instance, during the quarter, Shoppers
Stop opened its new stores in various formats. Provogue and Pantaloon followed soon. The
companies are increasing their geographical presence in the wake of increasing competition.
Launch of new formats continues to catch the attention of these retailers. In fact, a couple of
these new formats are already generating profit at the operating level, thus showing a positive
sign towards growth.
Like for Shoppers Stop, the average transaction size increased by about 7% for the
current quarter over the same quarter in the previous year. Players like Provogue and
Pantaloons too have witnessed a similar upward movement. Also, though growth in total
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expenses as a whole has almost been equivalent to the growth in sales at about 47%, some
individual cost items like staff costs, selling and administration costs are under control. On a
YoY basis, staff cost has grown at 26% against 44% in the corresponding quarter of the
previous year.
Nonetheless, raw material cost continues to remain high - it grew by 66% in the last
quarter and now is equivalent to 74% of the industry's aggregate net sales. This is the reason
why operating margins have reduced to 4.8% of the revenue sale compared with 5.7% during
the corresponding quarter of the previous year.
Among individual retailers, Pantaloon Retail continues to outgrow the industry - it

recorded 57% a YoY growth in net sales during March 2008 quarter. Although it is lower
compared with the 63% growth recorded during the December quarter, momentum continues
to favour the company. New stores drove the growth in value-for-money format - strategies
such as KB's Fair Price and online shopping are picking up. Their home store division has also
been doing well. Next on growth charts is Provogue, which grew 40% in the last quarter,
similar to the previous quarter.
In short, setting up of new stores has resulted in higher working capital funding, which
has raised the industry's interest outgo. For Pantaloon, interest cost has almost doubled during
the current quarter - as a proportion of sales, it has increased from 2.7% to 3.2% on a YoY
basis. Provogue seems to be an exception in this as it recorded the highest increase of 100 basis
points in interest cost for March 2008. Overall, the profitability margin has seen a sharp
decline.
Only Shoppers Stop has registered some profit compared with its performance in the
corresponding quarter of the previous year. The company's net profit margin now stands at
0.7% of net sales as compared to -1% in March 2007 quarter. It can be concluded that margins
of retail companies seem to have been hit by costs related to their ambitious expansion
programmer. Expansion plans for some of them are running behind schedule. It has led to
higher interest cost, yet retail companies are trying hard to cut costs by keeping inventory and
carrying costs under control.
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Big retailers at loggerheads with MNCs over brands
A serious conflict is brewing between Indian retailers and multinationals over imports of global
brands. To stay afloat in the dog-eat-dog world of retail, local retailers have reached
arrangements with overseas players to bring in some international brands, rattling many MNCs
who manufacture or market these products locally. In some cases, these brands have not yet
been introduced in India.
Several major MNCs with a long presence in India are invoking the Intellectual Property
Rights (imported goods) Enforcement Rules 2007 to stop retailers from importing foreign
brands. Hindustan Unilever, L’Oreal, Lancome Perfumes, Oakley Inc, Nivea and Mico have
already registered several brands with the Customs department. Sources said other MNCs are
expected to follow suit.
Market circles perceive this as a move to prevent Indian retailers from getting first access to
these brands. Some of the retailers are debating plans to legally contest the move, since they
possess a free sale certificate from the source of import. Retailers like Big Bazaar & Food
Bazaar, Reliance Retail, Spencer’s and Sankalp Retail (MyDollarStore), among others, have
begun importing sizeable consignments of leading consumer brands and their variants for
better fill rates, product variety and higher margins.
However, the multinationals are not amused, and claim that it leads to loss of business
opportunity, unfair competition and product cannibalization. The fundamental issue here,
according to analysts, is that the Indian arms of the leading FMCG companies would like to
control the way their brands are marketed and sold. They would also like to determine when
new products and variants of existing products should be introduced in India.
A key reason for retailers to step up imports is bottom lines. Profit margins on imported
products are around 20% more than local brands, where producers and retailers are at
loggerheads over sharing margins.

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“We are concerned over issues like protecting the properties of our brands, including quality
and consumer perception. Such unplanned imports create brand confusion in the minds of
consumers, since the properties of an imported brand are completely different from the
domestic ones, which are localized to suit the specific region’s requirements. An unpleasant
experience may work against our brand,” said a high-ranking official in a leading
multinational, which makes personal care products.
Retailers claim they are creating ‘demand in advance’ for the multinationals, which would
otherwise have to invest heavily in marketing and ad spends to promote the brands. Analysts
say the developments are the natural effects of a globalised market that India is moving
towards, which upsets the conventional distribution and trade practices.
July 7, 2008
Source: Economic Times
Big players - plans and investments
State of Competition in the Wholesale and Retail Sector
The study assesses the state of competition in the Philippine wholesale and retail sector,
focusing on the distribution of specialized goods and pharmaceutical products. It uses the
traditional tools of analysis like concentration ratios and price-cost margins in determining the
competitive state of the sector. The study also analyzes the other dimensions in retail
competition like price, geographical location, and retail product and retail service. Industry
data from the National Statistics Office were used in the analysis, aided by a small-scale survey
conducted in the Metro Manila area.
The department store and grocery sub sector appears to operate in a competitive environment
despite the presence of two big dominating firms in the market. No price or quantity leader-
follower behavior was observed, as validated by the tools used in the analysis. On the other
hand, one firm, whose strategic advantages include economies of scope and space, retail image
and consumer loyalty, dominates the distribution of pharmaceutical products. Potential market
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entrants face these forms of challenges--factors that are not regarded as anti-competitive and
are welfare enhancing to the general public.
The need for competition policy is recommended to guard against possible merger of the giant
firms in the department store and grocery sub sector. Any possible collusion between the big
firms could result to a monopolistic outcome.
The study observes that the apparent high price of pharmaceutical products is mainly attributed
to the manufacturing process, and not at the distribution of these goods. Hence, it is
recommended that a study analyzing the state of competitiveness of manufacturing
pharmaceutical products be conducted. Thing else that is timely, authentic Electronics retail
sector could get new competition
Types of Retailing
There are several types we can see in Retailing. They are like:
Specialty Store:
Narrow product line with deep assortment, viz apparel stores, book stores etc. A clothing store
would be a single line store, men's clothing store would be limited line store &men's custom-
shirt store would be a super specialty store.
Example: The limited, The Body Shop.
Departmental Store:
Several products lines-typically clothing, household goods, home furnishings- with each line
operated as a separate department managed by specialist buyers or merchandisers.
Example: Sears, Bloomingdale's.
Supermarkets:
Relatively large, low-cost, low-margin, high volume, self-service operation designed to serve
total needs for food, laundry & household maintenance products.
Example: Kroger, Safeway.

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Convenience Stores:
Relatively small store located near residential area, open long hours, seven days a week and
carrying a limited line of high-turnover convenience products at slightly higher prices.
Example: 7-Eleven, Circle K.
Discount Store:
Standard merchandise sold at lower prices with lower margins and higher volumes. True
discount stores regularly sell merchandise at lower prices and offer mostly national brands.
Example: Wal-Mart, Kmart.
Off-price retailer:
Merchandise bought at less than regular wholesale prices & sold at less than retail; often-
leftover goods, overruns and irregulars obtained at reduced prices from manufacturers or other
retailers.
Factory outlets are owned and operated by manufacturers and normally carry the
manufacturer's surplus, discontinued or irregular goods.
Example: Mikasa (dinnerware), Dexter (shoes)
Independent off-price retailers are owned & run by entrepreneurs or by divisions of larger
retail corporations.
Example: T.J.Maxx, Filene's Basement.
Superstore:
Averages 35,000 square feet of selling space traditionally aimed at meeting consumers' total
needs for routinely purchased food and non-food items. Usually offer services such as laundry,
dry cleaning, shoe repair, check cashing & bill paying.

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A new group called "category killers" carries a deep assortment in a particular category & a
knowledgeable staff.
Example: Borders books & Music, IKEA.
Combination stores are a diversification of the supermarket store into the growing drug-and-
prescription field. Combination food & drug stores average 55,000 square feet of selling
space.
Example: Jewel & Osco stores.
Hypermarkets range between 80,000 and 220,000 square feet and combine supermarket,
discount & warehouse retailing principles. Product assortment goes beyond routinely
purchased goods & includes furniture, large & small appliances, clothing items and many other
items. Bulk display & minimum handling by store personnel with discounts offered to
customers who are willing to carry heavy appliances and furniture out of the store.
Hypermarkets originated in France.
Example: Carrefour and Casino (France), Pyrca, Continente and Alcampo (Spain).

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Emerging trends in Indian organized retail sector
BPO industry in India
BPO (Business Process outsourcing) is one of the fastest growing segments of the Information
Technology Enabled Services (ITES) industry in India. Business Process Outsourcing refers to
the delegation of one or more IT-intensive business process to an external provider that in turn
owns administers and manages the selected process based on defined and measurable
performance criteria. The Indian BPO industry is constantly growing and a lot of fortune 500
companies are outsourcing services to India. There are several reasons for India’s emergence
as one of leading outsourcing destinations. India is very rich in educated and talented human
resource. India is one of the pioneers in software development. India has an excellent technical
facilities and infrastructure for setting up call centers. Time zone difference between India and
America has also worked to the advantage of Indian BPO industry. India has an 8-12 hour time
zone difference with respect to the US and other developed markets. Most of the Indian cell
centers servicing American customers have timings between 5:30 pm to 9:30 am this time zone
difference allows Indian companies BPO’s to service American clients by working in the
nights. last but not the least India has huge pool of English speaking workforce that provides
excellent voice based services at extremely competitive costs resulting in huge savings for
companies. Some of the leading BPO companies in India are
 GE capital.
 Converges
 Wipro Spectra mind.
 Dell
 ICICI One Source
 MphasiS.

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Inflation in India
Inflation in India is at an acceptable level and remains much lower than in many other
developing countries. But off late prices of essential commodities such as food grain, edible
oil, vegetables etc have risen sharply and in the process driving up the inflation rate.
Inflation is defined as a sustained increase in the general level of prices for goods and services.
It is measured as an annual percentage increase. As inflation rises the value of currency goes
down. The current rise in inflation has its roots in supply-side factors. There was shortfall in
domestic production vis-à-vis domestic demand and hardening of international pieces, prices of
primary commodities, mainly food items. Wheat, pulses, edible oils, fruits and vegetables, and
condiments and spices have been the major contributors to the higher inflation rate of primary
articles. The inflation was also accompanied by buoyant growth of money and credit. While
GDP growth zoomed to 9.0 per cent per annum, the board money (M3) grew by more than 20
per cent.
Inflation is calculated on the bases of Wholesale Price Index (WPI) while in other countries it
is calculated on Consumer Price Index (CPI).
The emerging trends in the Indian organized retail sector would help the economic growth in
India.
There is a fantastic rise in the Indian organized retail sector in a very short period of time
between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector, India
has a chance of tremendous economic growth, both in India and abroad.
The emerging trends in the Indian organized retail sector are also adding up to the development
of the Indian organized retail sector. The relaxation by the government on regulatory controls
on foreign direct investments has added to the process of the growth of the Indian organized
retail sector.

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The infrastructure of the retail sector will evolve radically in the recent future. The
emergences of shopping malls are increasing at a steady pace in the metros and there are
further plans of expansion which would lead to 150 new ones coming up in India by 2008. As
the count of super markets is going up much faster than rate of growth in retail sector, it is
taking the lion’s share in food trade.
The growth of the Indian organized retail sector is anticipated to be heavier than the
growth of the gross domestic product. Alterations in people's lifestyle, growth in income levels,
and encouraging conventions of demography are proving favorable for the new emerging
trends in the Indian organized retail sector.
The success of this retail sector would also lie in the degree of penetration into the
lower income strata to tap the possible customers in the lowest levels of society. The demands
of the buyers would also be enhanced by more access to credit facilities.
With the arrival of the Transnational Companies (TNC), the Indian retail sector will undergo a
transformation. At present the Foreign Direct Investments (FDI) is not encouraged in the
Indian organized retail sector but once the TNC'S get in they inevitably try to oust their Indian
counterparts. This would be challenging to the retail sector in India.
The trends to follow in the future:
 The Indian Organized retail sector will grow up to 10% of total retailing by 2010.
 No one single format can be assumed, as there is a huge difference in cultures

regionally.
 The most encouraging format now would be the hyper marts.
The hyper mart format would be further encouraged with the entry of the TNCs

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Current Scenario
 A glimpse of the International Retail
 One of the world's largest industries exceeding US$ 9 trillion
 47 global fortune companies & 25 of Asia's top 200 companies are retailers
 Dominated by developed countries
 US, EU & Japan constitute 80% of world retail sales.
 Biggest player in India is Pantaloon Retail India Limited.
Percentage of Organized Retail
USA - 85%
Taiwan - 81%
Malaysia - 55%
Thailand - 40%
Brazil - 36%
Indonesia - 30%
Poland - 20%
China - 20%
India - 3%
Key players
The existing players like Big Bazaar, More Retail outlay, Vishal Mega Mart, Shoppers'
Stop, Pyramid are expanding to smaller towns and cities. Many other business houses are
planning to enter the retail sector either on their own or through partnerships. New entrants

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like Reliance Retail Ltd and Wal-Mart are going to enter the market soon. Even rural areas
will provide a huge opportunity to be explored.
BOARD OF DIRECTOR
Mr. Kishore Biyani, Managing Director
Mr. Gopikishan Biyani, Whole time Director
Mr. Rakesh Biyani, Whole time Director
Mrs. Veda Prakash Arya, Director
Mr. Shailesh Haribhakti, Independent Director
Mr. S Doreswamy, Independent Director
Dr. D O Koshy, Independent Director
Mrs. Anju Poddar, Independent Director
Mrs. Bala Deshpande, Independent Director
Mr. Anil Harish, Independent Director

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Company Profile
Pantaloon Retail (India) Limited, is India's leading retail company with presence across
multiple lines of businesses. The company owns and manages multiple retail formats that cater
to a wide cross-section of the Indian society and is able to capture almost the entire
consumption basket of the Indian consumer. Headquartered in Mumbai (Bombay), the
company operates through 5 million square feet of retail space, has over 331 stores across 40
cities in India and employs over 17,000 people. The company registered a turnover of Rest
2,019 crore for FY 2007-08
It owns and operates multiple retail formats including Pantaloons, Big Bazaar, Food
Bazaar, Central, E-Zone, Fashion Station, Depot and many others.
Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail
chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain that
combines the look and feel of Indian bazaars, with aspects of modern retail, like choice,
convenience and hygiene. Food Bazaar, food and grocery chain and launch Central, a first of
its kind seamless mall located in the heart of major Indian cities, followed this. Some of its
other formats include, Collection i (home improvement products), E-Zone (consumer
electronics), Depot (books, music, gifts and stationary), All (fashion apparel for plus-size
individuals), Shoe Factory (footwear) and Blue Sky (fashion accessories). It has recently
launched its retailing venture, futurebazaar.com.
The group's subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon
Industries Ltd, Galaxy Entertainment and Indus League Clothing. The group also has joint
venture companies with a number of partners including French retailer Etam group, Lee
Cooper, Manipal Healthcare, Jaywalker’s, Gini & Jony and Liberty Shoes. Planet Retail, a
group company owns the franchisee of international brands like Marks & Spencer,
Debenhams, Next and Guess in India.

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Pantaloon Retail is listed on BSE and NSE with a turnover of Rs 2,018 crores for
financial year ended 2007-08. Pantaloon Retail was selected as the Best of Best Retailers in
Asia by Retail Asia-Pacific Top 500 magazine in 2006.
Future Group
Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned to
cater to the entire Indian consumption space. The Future Group operates through six verticals:
Future Retail (encompassing all retail businesses), Future Capital (financial products and
services), Future Brands (management of all brands owned or managed by group companies),
Future Space (management of retail real estate), Future Logistics (management of supply chain
and distribution) and Future Media (development and management of retail media).
Future Capital Holdings, the group's financial arm, focuses on asset management and
consumer finance. It manages two real estate investment funds (Horizon and Kshitij) and
consumer-related private equity fund, Indecision. It also plans to get into insurance, consumer
credit and other consumer-related financial products and services in the near future.
Future Group's vision is to, "Deliver Everything, Everywhere, Every time to Every Indian
Consumer in the most profitable manner." One of the core values at Future Group is, 'Indian’s'
and its corporate credo is - Rewrite rules, Retain values.
Future Group Manifesto
“Future” – the word which signifies optimism, growth, achievement, strength, beauty, rewards
and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten;
create new opportunities and new successes. To strive for a glorious future brings to us our
strength, our ability to learn, unlearn and re-learn, our ability to evolve.
We, in Future Group, will not wait for the Future to unfold itself but create future scenarios
in the consumer space and facilitate consumption because consumption is development.
Thereby, we will effect socio-economic development for our customers, employees,
shareholders, associates and partners.

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Our customers will not just get what they need, but also get them where, how and when they
need.
We will not just post satisfactory results; we will write success stories.
We will not just operate efficiently in the Indian economy; we will evolve it.
We will not just spot trends; we will set trends by marrying our understanding of the Indian
consumer to their needs of tomorrow.
It is this understanding that has helped us succeed. And it is this that will help us
succeed in the Future. We shall keep relearning. And in this process, do just one thing.
Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by
the Pantaloon Group. It works on same the economy model as Wal-Mart and has had
considerable success in many Indian cities and small towns. The idea was pioneered by
entrepreneur Kishore Biyani, the head of Pantaloon Retail India Ltd.
Big Bazaar stores in Metros have a gaming area and kids play area for entertainment.
Cities where stores are located are,
Agra, Ahmadabad, Allahabad, Ambala, Asansol, Bangalore, Bhubaneswar, Chennai,

Coimbatore,Palakkad, Kolkata, Delhi, Durgapur, Ghaziabad, Gurgaon,Hyderabad, Indore,
Lucknow,Kanpur, Mangalore, Mumbai, Nagpur, Nasik, Panipat, Pune, Rajkot, Surat, Thane,
Thiruvananthapuram, Vishakhapatnam.
Big Bazaar is not just another hypermarket. It caters to every need of customer’s family. Where
Big Bazaar scores over other stores is its value for money proposition for the Indian customers.
At Big Bazaar, customer will definitely get the best products at the best prices -- that’s
what Big Bazaar guarantee. With the ever increasing array of private labels, it has opened the
doors into the world of fashion and general merchandise including home furnishings, utensils,
crockery, cutlery, sports goods and much more at prices that will surprise customer. And this is

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just the beginning. Big Bazaar plans to add much more to complete customers shopping
experience.
Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by
the Pantaloon Group. It works on it the economy model as Wal-Mart and has had considerable
success in many Indian cities and small towns. The idea was pioneered by entrepreneur
Kishore Biyani, the head of Pantaloon Retail India Ltd.
Big Bazaar stores in Metros have a gaming area and kids play area for entertainment.
Cities where stores are located

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Agra
Ahmedabad
Allahabad
Ambala
Asansol
Bangalore
Bhubaneswar
Chennai
Coimbatore
Palakkad
Kolkata
Delhi
Durgapur
Ghaziabad
Gurgaon
Hyderabad
Indore
Lucknow
Kanpur
Mangalore
Mumbai
Nagpur
Nasik

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Panipat
Pune
Rajkot
Surat
Thane
Thiruvananthapuram
Vishakhapatnam
Big Bazaar is not just another hypermarket. It caters to every need of
customer’s family. Where Big Bazaar scores over other stores is its value for
money proposition for the Indian customers.
At Big Bazaar, customer will definitely get the best products at the best
prices -- that’s what Big Bazaar guarantee. With the ever increasing array of
private labels, it has opened the doors into the world of fashion and general
merchandise including home furnishings, utensils, crockery, cutlery, sports
goods and much more at prices that will surprise customer. And this is just the
beginning. Big Bazaar plans to add much more to complete customers shopping
experience.
Store study
Big Bazaar
RAGHULEELA MALL
VASHI NAVI MUMBAI
OPP VASHI RAILWAY STN.

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This store is of 3 flour and divided into 2 levels based on the nature of products.
There are 21 departments in this store and 120 Human Resource employed.
As this store is big enough with 2 levels and 21 departments has long product
range and product depth. Ones a customer get inside the store he will find all
kinds of products available that may be Food item, Cosmetic, Electronic,
Garments, Furniture etc.
Because of these features it has a very good reputation in that area and
customers who are residing far away and in other areas they also visit the store.
Level 1
Departments with their Products
1) Depot:
General books
Office stationary

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Children stationary
Film VCD’s & DVD
Major Brands in this department
For VCD’s & DVD’s:
Moser bear Anand Audio
T-Series Jhankar
Yesh Raj Films Sarvotham
For Office stationary
Stick Kangaroo
Apsara Built
Kores Matrix
Fiber Castle For Books
Depo exposes Penguin
Park Roopa
Cello Bentam
3M Classic
2) NBD (New Business Development)
This is the department, which is introduced because the space is available in the
store after making arrangement for other department and this department
consists of the products, which are not introduced and are not regular goods.
Wrist Watches
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Fashion Jewelry
Sunglasses
Auto accessories
For Wrist Watches
Escort
Lumax
3) Gold Bazaar
Navaras Gold Jewelry
This is the separate unit not related to Big Bazaar they share profits on
percentage basis
4) Mobile Bazaar
All kinds of Handsets ranging from Rs 1000 to 25000 of different companies
Mobile accessories
Coddles phones & land line phones
Nokia
Sony Ericson
Motorola
Samsung
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Beetal
Pacetel
5) Star Sitara
Cosmetics
Fragrances
Herbals
Pharmaceuticals
For Fragrances Shehnaaz Hussain
MKD distributors Biotech
G R fragrances For Cosmetics
BCPL Color Bar
Nabed Lakme
Intercraft May Billine
Indo French Revlon
For Herbals Streets wear
Lotus Vega and roof
VLCC
6) Shringar
Bangles
Jewelry sets
Bracelets
Hair Accessories
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Bindies
Chains
7) Ladies Department
Sarees Jeans
Dress materials Bretni
Under garments DJ & C
Nightwears Ruff & Tuff
Western wears Gelluse
Major brands in this department
Accessories
Shila
Johnson and Johnson
Shristhi
Paris beauty
Kalakruthi
VIP
MSIL
8) Men’s Department
Formals (Shirts & Pants)
Casuals (Shirts & pants)
Party wears
Jeans T-Shirts
Others Accessories (Lungi Dhoti etc)
Fabrics (Cut pieces)
Suits & Blazers
Levi’s Signature garments

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DJ & C
Ruff & Tuff
Levis
Night hood
Peter England
Raymond’s
9) Furniture Department
Dining Table
Bedroom Accessories
Hall accessories (Sofa sets, Chairs, Computer table etc)
Mattresses
10) Footwear Bazaar
Sports Shoes Ladies Casuals
Formal Shoes Ladies Chapple
Casual Shoes Ladies fancy Sleepers
Men’s Sandals Ladies Sports shoes
Ladies Sandals
Reebok
Nike
Puma
Loto
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Van hussain
Hallen solly
New balance
11) Home Décor
Flower vase Photo Frames
Artificial Flowers Assorted color Stones
Religious gifts Frame Paintings
Candle stand Water falls (artificial)
Umbrellas Birthday items
12) Home line
bed sheets, Pillows , bed spreads
Towels, Yellow dust
Razai , Carpets, Cushion covers
Chair bags
Riviera
Oriental
Orchid
Home collection
Home expression
Sameera
Home style
Sweet dreams
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Modern
13) Toys Dept
Soft toys
Educational toys
Board games, Action figures
Dolls
Fun school
Venus
Mitashi
Creatives
United
Shadilal & Sons
Flamingo

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14) Kids department
Boy’s section
T-Shirts, Trousers, jeans
Cotton shirts, Cargo, Cod raw
Ethic wears
Co ordinates
Rain cotes
Girls Section
Ethic wears
Co- ordinates
Cotton frocks
Western wears
Tara Rum Pum collection
Disney
Pink And Blue
Power ranges
Promo
Infants
Jhablas Bed items
Vests Baba suits
Bibs feedings Frocks

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15) Electronic Bazaar
Televisions
Sound System
Refrigerators
Washing machines
Microwave
Rice cookers
Juicers
Irons, Mixers & Grinders
Sony Creative
Vidiocon Philips
LG Samsung
HCL Onida
IBM Whirlpool
16) Luggage
Travel bags American Tourist
Trolleys Aristocrat
Bags: Schools, Collage Ladies purse Safari
Suitcase Milestone
VIP

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Level 2
Food Bazaar
1) Beverages
Soft drinks
Mineral water
Juices
Health drinks
2) Confectionaries
All kinds of Chocolates & Confectionaries
3) Fruits & Vegetables
4) Staples
Dal, Rice, Atta, Rava items
Oil’s, Masala items
Dry fruits
Spicy items
Ready meals
Breakfast cereals
5) Process Dept
Health drinks
Ready to eat
Corn flaks, Chips

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Instant mixes
Soups, Bread items, pickle
Spreads
For Beverages
Maaza
Slice
Bisleri
Cocacola
Pepsi
Thumps up
Apply
For confectionaries
Dairy Milk
Nestle
Parle
For Staples
Ashirwad
Pillsbury
Dhara
Sunflower

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Non-food Dept
6) Home care
Phenyl, Detergents
Dish wash, Tissue papers, Scratch
Shoe cases, Fresh wrap,
7) Personal care
Soaps, toothpaste, Shampoo
Deodorants, Body spry
Baby food, Talcum powder
Men’s apparel
For Home care
Lysole
HLL
Nirma
For Personal care:
Colgate
Pepsodent
Parachute
Lux International

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8) Plastics, Utensils, Crockery (PUC)
a) Plastics
Buckets
Casseroles
Containers
Boxes
Flasks
Bowls
Jugs & sippers
Bottles & Mugs
Milton
Dream Line
Cello
Poly set
Chetan
b) Utensils
Plates, Bowls, Glasses
Non-stick Cookware’s
Kitchen tools
Tiffin Boxes

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c) Crockery
Crockery cutlery
Table Materials / Napkins
Casseroles
Dinner sets
Wine, Juice Glasses

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Future Plans of BIG BAZAAR
Recently they are interested to expand their retail business in Mysore and along
with that they are interested to establish two retail outlets in Gulbarga District.
Big Bazaar plans 300 stores by 2010-11

20 May, 2009, 1722 hrs IST, PTI
NEW DELHI:
Kishore Biyani-promoted Future Group's retail chain Big Bazaar is planning to

have 300 hypermarkets in the country by 2010-11.
The company is also mulling to increase its annual turnover to Rs 13,000 crore
by 2010-11, up from Rs 3,600 crore last fiscal on the back of its expansion.
"We started with our first store in October 2001 and have now crossed the
hundred mark with three stores opened today in Pune, Cut tack and Delhi. Our
plan is to increase the number of our stores to 300 by end of the 2010-11 fiscal,"
Big Bazaar Chief Executive Officer Rajan Malhotra said.
He said the company would have another 35 odd stores by end of its fiscal in
June 2009 to take the total number to 135.

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"We are targeting a turnover of Rs 5,000 crore this year and have plans for
reaching a figure of Rs 13,000 crore by 2010-11 fiscal," Malhotra said.
He added that the company would be looking at both the metros and Tier I
cities, besides Tier II and smaller cities, for the expansion.
The Big Bazaar hypermarkets had a footfall of 11 crore last fiscal and the
company is aiming for an increase in the numbers up to 14 crore this year. The
size of its hypermarkets on average is 30,000 sq ft to one lakh sq ft.
The company is also launching a special festive season 'One in a Lifetime' offer
across all its stores on October 1-5. The offer would run in all Big Bazaar
format stores on apparels, footwear, accessories and general merchandise, he
added.

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Organizational Structure (Zonal)
President
Vice President
Marketing HR Category Manager Finance Manager

Operation
Manager Manager
Head
Marketing HR Category Finance Head Store

manager
Head Head Head

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Store Structure
Store Manager
Assist Store Manager
Dept Manager Human Resource Administration Info

Tech
Visual Merchandise
Marketing
Assist DM Cashing
Dept
Maitanance
Team Leader Assistant HR
Security
Team Members Cashier

House keeping
CSD
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(Customer Service desk)
VISSION
“TO EMERGE AS THE BEST AND THE MOST
PROFITABLE RETAILER IN INDIA”
MISSION
"TO SPEARHED HIS COMPANY TO BE THE FINEST AND
THE MOST PREFERRED CHAIN IN RETAILING”
Big Bazaar on an expansion spree

Countries leading retail chain Future Group is going for a major expansion of its
Big Bazaar chain of outlets, with the company planning to take the total number
of stores to 150 by June 2009.
Big Bazaar presently has 92 outlets across the country and has plans to add over
45 stores by the end of June 2009, Future Group Director Rakesh Biyani said.
Besides, the company is also exploring for a 50:50 joint venture with
International Group for its kidsWear segment.

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"We are exploring various proposals and options to maximize our efficiency and
operations," he said on the sidelines of the Pure & Play Retail Summit here.
When asked
About the media reports regarding Future Group plans' to split the company into
two specialized segment consisting of front - end and back - end retail, Biyani
refused to
Comment on the issue.
"The company cannot comment on speculated stories run by sources. There is
no official
Announcement or decision in this regards," Biyani said. He added that the
company’s expansion would be fully funded, with its own capital.
"The funding plans are being done by preferential allotment and we have
already decided about the amount, " he said. Future Group is also
starting its own ethnic women's wear stores and the first one will start by
August this year.
"A total ethnic in the women' wear category will come up in various cities and
the stores will be on 15,000-16,000 sq feet," Biyani added that the company is
planning to grow by 15-20 per cent in apparel wear and double its sales of
ethnic women wear in the next few years. The company is also looking for an
increase of 50-55 per cent in its total sales over the next five years.
SECURITY MEASURES
Pantaloon Apparel, food, etc. POS: Home-grown solution
SAP Retail
BI and Data warehouse: Congo’s (process of evaluation)
handheld scanners at Food Bazaar
VPN: Company-wide network linking all the branches
They have loss prevention cell (LPC) that will be looking after the safety
measures in the organizations. There are 5 members in each store.

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They have 3 types of tags
4. Hard tag
5. Soft tag
6. String tag
These tags will be attached to the materials. If any person will take that
without paying bill some process will be taken by the LPC.
Process: In case any theft is done in big bazaar they will catch the person &
they will fine him and they will fill one form that he had done the mistake &
they will take all 10 fingers thumb impression.
Departmental Managers
There are 24 departments in this store like Electronic dept, Depot dept,
NBD dept, Mobile Bazaar Dept, Star sitar Dept, PUC Dept, Ladies Dept, Men’s
Dept, Furniture Dept, Footwear Dept, and Home Décor Dept. Each department
will be assigned with targets, which have to be achieved within the assigned
period that may be of Daily, Weekly, monthly and yearly.
Each department has a department Manager & Assist DM. Their job is
concerned mainly with sales. They look after customer’s orders delivery post
sale service if any etc. All Dept managers ADM, Team members work under
coordination & cooperation.
They are also responsible for the placing orders of the goods incase of shortage
here they have to send indent specifying the amount of products needed at the

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store. They have to report periodically the performance of the department to the
store manager.
Administration
Store administration comes under Store Manager its functions are store
maintenance, House Keeping, Security etc. Store manager has to control all the
activities within the store. He has to communicate all the departmental managers
and assistance departmental managers regarding any new offers, regarding their
targets etc. Sore manager has to see the operation at the store is being performed
in coordination and cooperation he has to communicate with the corporate
office regarding any changes being applied at the store.
Information Technology
This department is responsible for the maintenance of the systems of the
stores. All billing machines their functioning networking with the master
machine etc. If there is any problem with the machine, then this department
comes into function.
Cashing Dept
This department is responsible for the collection of sales amount i.e.
cash sales, Credit sales, etc under this department all billing machines of the
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stores comes. The sales amount collected throughout the day by the cashiers has
to be submitted to this department.
Marketing
This dept is responsible for the marketing of the store in different media
like Television, Newspaper, and Holdings etc. the authorized person has to visit
different companies and has to look after for tie-ups etc. The executives arrange
rally’s
Visual Merchandise
This department is responsible for the product arrangement at the store
with respect to their nature. The basic function of this dept is it divides the store
into several departments based on the nature of the product and within the
department it decides how the products should be arranged by keeping in mind
the customer should not suffer.
Human Resource
Human Resource basically works for the welfare of the employees. It
acts to organize the manpower and work to increase productivity of the
employees. Basically Human Resource performs the functions of Recruitment,
Hiring, Induction, Training and development, Performance appraisal of the
employees. Human Resource studies and involves in inter life cycle of the
employee from his joining the organization to till his end from the organization.
CSD (Customer Service Desk)

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This is the separate unit, which is mainly focuses on customer service
like if the customer find difficulty in finding any product, Customer complaints
any replacement, Customer assistance etc.

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Supply chain management:
Company’s supply chain was split into the broad categories of fashion,
food and general merchandise, leading to a more focused approach to
businesses, improved service levels, better customization of logistic and supply
chain related needs, and finally deliverables. Further, with new concepts and
lines of business being included during the year, as well as strategic alliances
with other companies, the process of gradually integrating them have either
been completed or close to completion.
The existing supply chain design consists of a Master Distribution
Centre (MDC) and city warehouses upgraded to Regional Distribution Centers
(RDCs) and additional Distribution Centers (DCs). The company had one MDC
and 16 RDCs and DCs
The company has also appointed leading international and domestic
players in the warehouse infrastructure and technology front.
The company also introduced the concept of reverse logistics that looks
at setting up a process to transfer finished goods from the consumption point to
the point of origin.
This reduces wastage and can lead to significant cost savings. On the
technology front, all the existing MDCs, RDCs and DCs are live on SAP,
thereby facilitating standardization, real time data management and reporting, as
well as optimum operational efficiencies.

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My Learning Experience in the company
I am very happy to express my practical experience at Big Bazaar.
Before going to share my practical feelings regarding project work. I would like
to say heartily thanks to Adept Institute of Management studies. Who have
given one of the good opportunity to learn a knowledge in practical environment
and along with that I would like to say heartily thanks to company guide Mr.
Arif ADM (Assistant Department Manager) of big Bazaar.
I had under gone a glorious 30 days’ project at Big Bazaar. And along
with that I had learn a lot of practical things from the corporate world. From this
project i came to know that customer buying behavior and taste and priority
preferences of customer towards retail sector and competition level in the sector
and along with that i had learn how management is responsible for increasing
sales and revenue of the company And also i learned what management make to
attract the customer there are several promotional strategy which influencing
purchase decision of buyers and also I learned functional department like HR,
Finance and Marketing.
From this project now I came to know that how to carried out business
process in a systematic manner in the competition level.
This practical knowledge of project made me to perfect in future to stand
in a any corporate world. And Finally I thanks to AIMS College Dharwad and
company guide
Mr. Arif

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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 does 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 100 questionnaires were designed of 10 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 Hubli.
Objective of the project

To know the effective promotional strategy which influence
customer to purchase a product of Big Bazaar.
Sub-objectives
1) To know the promotional strategy of big bazaar
2) To know the relationship between promotional strategy and buying
decision

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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 company managers.
Primary data Field Survey
Secondary data Big Bazaar records
Text Books and journals
Company Websites
Area of research: Hubli
Research approach: Survey method

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Sampling Method
Since the study is restricted to Retail sector, all the functional Departments of
Big Bazaar and the respondents are 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
Sample Unit : Customer of Big bazaar
Measuring Tool : Questionnaire

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ANALYSIS AND INTERPRETATION
Q No 1: Which store first comes to your mind when you think of
purchasing a product?
RESPONSE NO OF RESPONDENTS PERCENTAGE
Big bazaar 77 77%
Vishal mega mart 15 15%
Others retailer 8 8%
Total 100 100%
ANALYSIS:
From the survey, from 100 respondents, 77% of them gave 1st preference to Big
Bazaar 15% of them gave preference to Vishal Mega Mart and 8% were gave to
other retailer .

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INTERPRETATION
Most of the customers are given 1st preference to Big Bazaar compare to
other retailers
2) From which source did you come to know about Big Bazaar outlet.
RESPONSE NO OF RESPONDENT PERCENTAGE
T .V Advertisement 23 23%
Hoardings 34 34%
News paper 31 31%

Buspaintings 12 12%
Total 100 100%
ANALYSIS:
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From the above graph i can come to know that, among 100 respondents, 23% of
them come to know about Big Bazaar through TV advt., 34% of the respondents
told that through Hoardings, 31% of them through news paper , and 12% came
to know through bus painting
INTERPRETATION. Hoarding is the most influencing factor which is

responsible for awareness of Big Bazaar.
3) Are you aware of promotional offers conducted by big bazaar?
Response No of respondents Percentage

Yes 87 87%
No 13 13%
Total 100 100%

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ANALYSIS: Among the 100 respondents, 87% of them they are aware of
promotional offers, 13% told they have told that they are not aware.
INTERPRETATION:
87% of customers are aware of promotional activity in the big bazaar.
4) Please choose below the factor which attracted you most at the Big
Bazaar.
No of percentag
Rates respondents e
Offer 51 51%
Service 9 9%
Quality 23 23%
Availability of 17%
products 17
Total 100 100%
Analysis

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Among 100 respondent 51% of customer they have told that they are attracted
by the offers and 9% of them told that they are attracted by service and 23% of
them told that they are attracted by quality and only 17% of them told that only
for availability of products
Interpretation:
Most of the people attracted towards big bazaar only for the promotional offers.
So offer is the most influencing factor among those.
5) Which of the following factors influence in your purchase decision?
No of percentag
Rates respondents e
Offer 43 43%
Service 11 11%
Quality 21 21%
Effective 25%
advertisement 25
Total 100 100%

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ANALYSIS:
Among 100 respondent 43 of them told that offer is responsible for their
purchase decision and 9 of them told that service and 23 of them told that
quality an only 25 of them told that effective advertisement
INTERPRETATION:
Among those factor offer is the emerging factor which is responsible for
purchase decision of buyers
6) Do you think the promotional activity of Big Bazaar gives you clear
message?

Yes 77 77%
No 23 23%
Total 100 100%

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ANALYSIS:
Among 100 respondent 77 of them told that the promotional activities of big
bazaar gives clear message and 23 of them told that they do not understood.
INTEPRETATION:
Most of the people highly agree that promotional activity of big bazaar gives
clear message
7) Will you advise anybody to visit Big Bazaar in your future shopping

Yes 98 98%
No 2 2%
Total 100 100%
ANALYSIS:

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Among 100 respondents 98 of them told that they will advise others to visit big
bazaar in future shopping and only 2 of them told that they do not advise.
INTEPRETATION:
Most of the respondent they would like to advise others in future shopping

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8) Looking at the promotions of Big Bazaar does your purchase pattern
changes

Yes 83 83%
No 17 17%
Total 100 100%
ANALYSIS:
Among 100 respondent 83 of them told that these promotional offers

changes their purchase pattern and only 17 of them told do not change.
INTERPRETATION:
Most of the customer believed that promotions is responsible for their

purchase decision

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9). would you like to make your purchase under unexpected offers?

Yes 94 94%
No 6 6%
Total 100 100%
ANALYSIS:
Among 100 respondents 94 of them they are interested to buy products

under unexpected offers and only 6 of them told that they do not buy.
INTERPRETATION:
Most of the customer interested to buy under unexpected offers only.

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FINDINGS
SURVEY FINDINGS
INFORMATION SEARCH AND EVALUATION PROCESS

 From the sample size of 100 samples it is found that the Brand is well
positioned in the minds of customers because 77% of the respondent’s
preference is Big Bazaar for their shopping.
 Among 100 respondents, 23% of people told that 1st they came to know
through T V advertisement and 34% of people told that through
hoardings 31% of them told that through news paper and finally 12% of
them highly agree that through bus painting.
 Among the 100 respondents, 87% of them told that they are aware of
promotional activities of big bazaar. only 13% of them told that they are
not aware of promotional activity of big bazaar.
 Among the 100 respondent 51% of them told that they are attracted
towards big bazaar only for the offers 9% of them told that service and
23% of them told that quality and only 17% of them told that due to
availability of products
 Among 100 respondents 43% of them agree that offers is the most
emerging factor influencing purchase decision and only 11% of them
told that service 21% of told that quality and finally 25% of them told
that effective advertisement is responsible for the purchase decision.

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 Among 100 respondent 77% of them told that promotional activities of
big bazaar gives clear message and 23% of them told that they did not
understood.
 Among 100 respondent 98% of people interest to advise others in future
shopping and only 2% of them not interest to advice.
 Among 100 respondent 83% them told that promotions of big bazaar
changes their purchase pattern and only 17% told that does not changes.
 Among 100 respondent 94% of them told that they are interested to buy
products under unexpected offers and 6% of told that they do not buy.

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Recommendations
 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.
 And they also concentrate on T V advertisement they should show ads
and promotional offers in a regular interval in three languages like
Kannada Hindi English.
 Hoarding should be placed uncovered area.


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CONCLUSION
Indian retail sector is witnessing one of the most hectic Marketing

activities of all times. The companies are fighting to win the hearts of customer
who is God said by the business tycoons. There is always a ‘first mover
advantage’ in an upcoming sector. In India, that advantage goes to “BIG
BAZAAR”. It has brought about many changes in the buying habits of people.
It has created formats, which provide all items less than one roof at low rates.
The consumer’s preferences are changing & they are moving from
Traditional Kirana stores to Modern Retail outlet. It’s the main challenge to the
Modern retail outlets to attract the customers towards them from that of
competitors. To attract more customers companies have to carry out the
promotional activities in unique way. BIG BAZAAR has maintained that
uniqueness & has succeeded in attracting customers.
The promotional activity of the company, which famous as Less Price

than others as it says ‘Nobody Sells Cheaper and Better!’ is made its place in
minds of customer. As the competition is becoming stiff in the market the
activities conducted by the company are unique, that have brought fruitful result
to the company. Among them sales Promotions is one of the leading activity or
unique among all other activities & has high influence on the customer walk-in.

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LIMITATIONS
 The study was restricted to only the customers of BIG BAZAAR, Hubli.
 The time constant was a limiting factor, as more time required carrying
out study on other aspects of the topic.
 The result and analysis based on the customer survey method and small
sample size has taken only 100
 Findings are related to particular areas.

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ANNEXTURE
“A STUDY ON THE EFFECTIVE
PROMOTIONAL STRATEGY WHICH
INFLUENCES CUSTOMER TO PURCHASE
A PRODUCT OF BIG BAZAAR”
Questionnaire
Name: ___________________ Contact No:

___________________
Address: _____________________
1) Which store first comes to your mind when you think of purchase a
product.?
a: Big Bazaar b:Vishal mart c: other retailer
2) From which source did you come to know about Big Bazaar outlet?
a; T. V. advertisement b;. Hoardings.

c; bus paintings d. news paper
3) Are you aware of promotional activities conducted by Big Bazaar in

Hubli.?
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a. Yes b. No.
4) Please choose from below the factor which attracted you most at Big
Bazaar?
a. Offer b. service c. quality d.availability of
products
5) Which of the following factors influence in your purchase decision.?
a. Offers c. Quality of products

b. Effective services d. Effective advertisement
6) Do you think the promotional activity of Big Bazaar gives you the clear
message? ?
a. Yes b. No
7) Will you advise anybody to visit Big Bazaar in future shopping?
a. Yes b. No
8. Looking at the promotions of Big Bazaar does your purchase pattern

changes?
a. Yes b. No
9. Would you like to make your purchase under unexpected offers?
a. Yes b. No

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10) Any valuable suggestion
……………………………………………………………………………………
………
Signature of Customer
Bibliography
Reference Books
o Marketing Management: Philip Kotler
o Advertising and Sales: Promotion Belch and Belch
o Retail Management: Bajaj and Srivastav
o Research Methodology: Cooper and Schindler
JOURNALS AND MAGAZINES

Business World
Business Today
Websites
www.google.com
www.pantaloon.com
www.wikipedia.com
www.timesofindia.com
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Shivkumar Jain Big Bazaar Project Final Report

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D.Y.

(Approved by Maharashtra Govt.)

STUDY ON RESEARCH PROJECT

A Report Submitted in Partial Fulfillment of

D.Y. PATIL UNIVERSITY,

I HEREBY DECLARE THAT THE RESEARCH PROJECT

“BIG-BAZAAR” SUBMITTED FOR BACHELOR OF

HOSPITALITY AND MANAGEMENT STUDIES AT DR. D.Y.

PATIL UNIVERSITY, SCHOOL OF HOSPITALITY AND

TOURISM STUDIES IS MY ORIGINAL WORK.

D.Y. PATIL UNIVERSITY,

THIS IS TO CERTIFY THAT THE RESEARCH PROJECT

“BIG-BAZAAR” SUBMITTED BY MR. SHIVKUMAR

J. RANA IS A BONAFIDE RESEARCH WORK FOR THE

AWARD OF BACHELOR OF THE D.Y.PATIL UNIVERSITY,

SCHOOL OF HOSPITALITY AND TOURISM STUDIES

SIGNATURE OF DIRECTOR SIGNATURE OF STUDENT

SIGNATURE OF GUIDE SIGNATURE OF FACULTY

D.Y. PATIL UNIVERSITY,

I AM INDEBTED TO THE D.Y. PATIL UNIVERSITY,

I AM HIGHLY GRATEFUL TO OUR DIRECTOR WHO

MY SINCERE THANKS TO MRS. BHAVANI S.

Signature of the Student.

D.Y. PATIL UNIVERSITY,

CHAPTER NO. TOPIC PAGE NO.

III EVOLUTION OF INDIA IN RETAIL INDUSTRY 10

VII STORE STUDY 31

VIII FUTURE PLANS OF BIG BAZAAR 46

XI VISION & MISSION 50

XII SUPPLY CHAIN MANAGEMENT 55

XIV RESEARCH METHODOLOGY 57

XV ANALYSIS & INTERPRETATION 60

D.Y. PATIL UNIVERSITY,

D.Y. PATIL UNIVERSITY,

D.Y. PATIL UNIVERSITY,

D.Y. PATIL UNIVERSITY,

TECHNOLOGIES USED IN RETAILING SECTOR

D.Y. PATIL UNIVERSITY,

 Largely urban phenomenon, pace of growth is still slow.

D.Y. PATIL UNIVERSITY,

D.Y. PATIL UNIVERSITY,

Increase in expenditure for luxury items (CHART)

D.Y. PATIL UNIVERSITY,

D.Y. PATIL UNIVERSITY,

INDIA: A Hot Spot

As the contemporary retail sector in India is reflected in sprawling shopping centers,

Employment opportunities in retail sector in India

Retail companies are starting retail management courses in partnership with

Challenges of Retailing in India

D.Y. PATIL UNIVERSITY,

India RetailBiz attempts to capture excitement of Retail Business in India by aggregating

Among individual retailers, Pantaloon Retail continues to outgrow the industry - it

D.Y. PATIL UNIVERSITY,

Big players - plans and investments

State of Competition in the Wholesale and Retail Sector

D.Y. PATIL UNIVERSITY,

D.Y. PATIL UNIVERSITY,

D.Y. PATIL UNIVERSITY,

D.Y. PATIL UNIVERSITY,

D.Y. PATIL UNIVERSITY,

The trends to follow in the future:

 No one single format can be assumed, as there is a huge difference in cultures

D.Y. PATIL UNIVERSITY,