CHAPTER NO.

1
INTRODUCTION
1.1 INTRODUCTION TO RETALING:
“Retailing is a distinct, diverse and dynamic sector”. “It is an activity of
enormous economic significance to most developed nations”. It generates
revenue and wealth for nation, encourages investments and brings
technological advancements. Stated that “it brings employment and creates
wealth of the economy”. “It is a vibrant part of our changing society and a
major source of employment” Retailing performs activities at larger level so it
requires massive manpower to handle and manage its operations. Retailing
also helps society in general by providing goods and services in reasonable
price and increasing their standards of living. “Retailing activity can be
viewed as a significant contributor to the economy in general”. Retailing is the
set of activities that markets products or services to final consumers for their
own personal or household use. It does this by organizing their availability on
a relatively large scale and supplying them to consumers on a relatively small
scale.” Retailing makes products and services available in large quantities.
Retailers produce or order the products/services in bulk so they can take
advantage of economy of scale and thus they can formulate competitive
pricing strategies. Products and services are generally sold through the store
or on the internet.

2
1.2 MEANING AND DEFINITION OF RETAILING:
Meaning:
 Retail is the sale of goods and services from individuals or businesses to the
end-user.
 Retailers are part of an integrated system called the supply chain.
 A retailer purchases goods or products in large quantities from
manufacturers directly or through a wholesale, and then sells smaller
quantities to the consumer for a profit.

Definition:
 According to Philip Kotler “retailing includes all the activities involved in
selling of goods or services directly to the final consumer for personal Non
business use’’.
 ‘’Every sales of goods and services to the final consumers’’---food products,
apparel, movie tickets.

1.3 Characteristics of retailing:

The characteristics of retailing are as follows
(1) Direct interaction with customers:
Retailing involves a direct interaction with end-users of goods or services in the
value chain. Retailers act as intermediaries between end-users and suppliers such
as wholesalers or manufacturers. Therefore, they are in a position to effectively
communicate the response and changing preferences of the consumers to the
suppliers or sales persons of the company. This helps the manufacturers and
marketers to redefine their product and change the components of its marketing
strategy accordingly. Retailing also provides extensive sales executive support for
products which are information intensive, as in the case of consumer durables

(2) Point-of-Purchase Display and Promotions:

3
A significant chunk of retail sales comes from unplanned or impulse purchases.
Since a lot of retail products are low involvement in nature, impulse purchases of
the shopper is a vital area that every retailer must tap into. Therefore display,
point-of-purchase merchandise, store layout and catalogues become important.
Impulse goods like chocolates, snack foods and magazines can sell much more
quickly, if they are placed in a high visibility and high traffic location.

(3) Lower Average Amount of Sales Transaction:

The average amount of sales transaction at a retail point is much less in
comparison to the other partners in the value chain. Many consumers buy products
in small quantities for household consumption. Due to lower disposable incomes,
some consumer segments in India buy even grocery items on a daily basis rather
than a weekly or a monthly basis. Thus, inventory management becomes a
challenge for retailers as a result of innumerable minor transactions with a large
number of customers. Hence, retailers have to take care of the average levels of
stock, order levels and the popularity of different brands.

(4) Location / Larger number of retail business units:

Location of retail stores plays an important role compared to other business units.
Retailers consider factors like potential demand, supply of merchandise and store
image related factors in locating the retail outlet. The number of operating units in
retail is the highest compared to other constituents of the value chain, primarily to
meet the needs for geographic reach and customer accessibility.

4
1.4 Types of retailers
Store Retailing by Store based Strategy
1) Food Retailers
 Departmental stores.
 Convenience Store.
 Full Line Discount.
 Conventional Supermarket.
 Specialty Stores
 Food Based Superstore
 Off Price Retailer.
 Combination Store.
 Variety Store.
 Super Centre
 Flea Market.
 Hypermarket.
 Factory Outlet.
 Limited Line Stores.
 Membership club

 Department Store:
Department stores are large retailers that carry wide breadth and depth of
products. They offer more customer service than their general merchandise
competitors. Department stores are named because they are organized by
departments such as juniors, men’s wear, female wear etc. Each department is
act as “mini store”. Means the each department is allocated the sales space,
manager and sales personnel that they pay an attention to the department. IMC
program for each department is different and particular. Department store
utilizes various sources for marketing communication. Due to overstoring most
of the budget are spending on advertising, couponing and discounts.
Unfortunately the use of coupons diminishes profits and creates a situation
where consumer does not buy unless they receive some type of discount.

 Convenience stores:
Convenience stores are located in areas that are easily accessible to customers.
Convenience store carry limited assortment of products and are housed in small

5
facilities. The major seller in convenience stores is convenience goods and non-
alcoholic beverages. The strategy of convenience stores employ is fast
shopping, consumer can go into a convenience stores pick out what they want,
and check out relatively short time. Due to the high sales, convenience store
receives products almost daily. Because convenience store don’t have the
luxury of high volume purchase.

 Full line Discount Stores:

It conveys the image of a high volume, low cost, fast turnover outlet selling a
broad merchandise assortment for less than conventional prices. It is more to
carry the range of products line expected at department stores, including
consumer electronics, furniture and appliances. There is also greater emphasis
on such items as auto accessories, gardening equipment, and house wares.
Customer services are not provided within stores but at centralized area.
Products are sold via self -service. Less fashion sensitive merchandise is
carried.

 Specialty Store:
Specialty store carry a limited number of product within one or few lines of
goods and services. They are named because they specialize in one type of
product. Such as apparel and complementary merchandise. Specialty store
utilizes a market segmentation strategy rather than typical mass marketing
strategy when trying to attract customers. Specialty retailers tend to specialize
in apparel, shoes, toys, books, auto supplies, jewel and sporting goods. In recent
years, specialty stores have seen the emergence of the category killer. Category
killers (sometimes called power retailer or category specialty) are generally
discount specialty stores that offer a deep assortment of merchandise in a
particular category

 Off-price Retailers:
Off price retailers resemble discount retailers in that they sell brand name
merchandise at everyday low prices. Off price retailers rarely offer many
services to customers. The key strategy of off price retailers is to carry the same
type of merchandise as traditional department stores but offer prices that can be
40 to 60 percent lower. To able to offer the low prices, off price retailers
develop special relationship with their suppliers for large quantity of
merchandise. Inventory turnover is the key factor of successful off price
6
retailing business. In addition to purchasing close outs and cancel orders, off
price retailers negotiate with manufacturer to discount order off merchandise
that is out of seasons or to prepay for items to be manufactured thus reducing
the price of buying items.
E.g. there are many types of off price retailers, including outlet store,
Manufacturers department store or even specialty store chains can be an off-
price retailer.

 Variety Store:
Variety store offer deep assortment of inexpensive and popular goods like
stationary, gift items, women’s accessories, house wares etc .They are also
called 5 to 10 percent store because the merchandise in such stores, used to cost
much.

 Flea Market:
Flea market is a literal transaction of the French aux puces, in outdoor bazaars
in Paris. A flea market is the outdoor or indoor facility that rent out space to
vendors who offer merchandise, services and other goods that satisfy the
legitimate needs of customers. Flea market provides opportunity for
entrepreneur to start business at low price. A flea market consist of many retail
vendors offering a variety of products at discount price at places where there is
high concentration of people. On specific market days they assemble for
exchange of goods and services.

 Factory Outlets:
Factory outlets are manufacturer owned stores selling manufacturers closeouts,
discontinued merchandise, irregulars, cancelled orders, and sometimes in
seasons, first quality merchandise.

 Membership Clubs:
A membership club appeals to price conscious consumers, who must be a
member of shop there. It breaks the line between wholesale ling and retailing.
Some members of typical club are small business owners and employee who
pay a nominal annual fee and buy merchandise at wholesale prices; these
customers make purchase for use in operating their firm or for personal use.

7
They yield 60% of total club sale. The bulk members are final consumers who
buy exclusively for their own use; they represent 40 %of overall sales.

 Conventional supermarket:
Conventional supermarket is essentially large departmental stores that
specialize in food. According to the food marketing institute, a conventional
supermarket is a self-service food store that generates an annual sales volume of
$2 million or more. These stores generally carry groceries, meat and produce
products. A conventional food store carries very little general merchandise.

 Food Based Superstore:

One of the biggest trends over the past twenty years in food retailing has been
the development of superstore. Superstores are food based retaliates that are
larger than the traditional supermarket and carry expanded service daily,
bakery, seafood and non-food sections. Supermarket varies in size but can be as
large as 150000 sq ft. Like combination stores food based superstore are
efficient, offer people a degree of one stop shopping stimulate impulse purchase
and feature high profit general merchandise.

 Combination Store:
Because shoppers have been demanding more convenience in their shopping
experience, a new type of food retailers has been emerging. This type of retailer
combines food items and non-food items to create one stop experience for the
customer. Combination stores are popular for the following reasons. They are
very large from the 30000 to 100000 or more sq ft. this leads to operating
efficiencies and cost savings. Consumer like one stop shopping and will travel
further to get to the store. Impulse sales are high.

 Super Centres and Hypermarkets:

Super centre is a combination of a superstore and discount store. Supercenter
developed based on the European Hypermarkets, an extremely large retailing
facility that offers many types of product in addition to foods. In supercentre
more than 40 percent of sales come from non food items. Super Centre is fastest
growing retail category and encompasses as much as sales. Wal-Mart is
category leader with 74 percent share of super centre retail share.

 Warehouse Clubs and Stores:

8
 Warehouse clubs and stores were developed to satisfy customers who want to
low prices every day and are willing to give up services needs. These retailers
offer a limited assortment of goods and services, both food and general
merchandise, to both end users and midsize businesses. The stores are very
large and are located in the lower rent areas of cities to keep their overhead low
cost low. Generally, warehouse clubs offer varying types of merchandise
because they purchase product that manufactures have discounted for variety of
reasons. Warehouse clubs rely on fast moving, high turnover merchandise. One
benefits of this arrangement is that the stores purchase the merchandise from
the manufacture and sell it prior to actually having to pay the manufacturer.

 Limited Line Stores:

Limited line store also known as box stores or limited assortment stores,
represent a relatively small number of food retail stores in the United States.
Limited line store are food discounters that offer a small selections of products
at lows prices. They are no frills stores that sell products out of boxes or
shippers. Limited line stores rarely carry any refrigerated items and are often
cash and carry, accepting no checks or purchase bags from the retailers. In
limited line store, the strategy is to price products at least 20 percent below
similar products at conventional supermarkets.

2) Non Store Retailing.

1. Direct Marketing.
2. Electronic/Internet/E- Direct
Selling.
3. Vending Machines
4. Catalog Marketing
5. Franchising

1. Direct Marketing:
Direct marketing is defined as an
interactive system of marketing, which
uses non personal media of communication to make a sale at any location or to
secure measurable response. Direct marketing is a method wherein the
manufacturer or producer sells directly to retailer, user or ultimate consumers

9
without intervening intermediaries. This offers flexibility with maximum controls
of sales efforts and marketing information feedback. Various forms of Direct
Marketing-telemarketing, Direct mail marketing, television, marketing.

2. Direct Selling:
In contrast to direct marketing, which involves no personal contact with
consumers, direct selling entails some type of personal contact. This contact can be
at the consumer home or at an out of home location such as the consumer office.
3. Vending Machines:
Vending machines represents an additional class of retail institutions. Essentially,
vending is non store retailing in which the consumer purchase a product through a
machine. The machine itself takes care of the entire transaction, from taking the
money to providing the product. Vending machine offerings range from typical
products such as soft drinks and candy to insurance, cameras, phone calls, phone
cards, books, paper and pens.
4. Catalog Marketing:
Mail Orders marketing/Catalog Marketing, also called as mail order business, is
one of the established methods of direct marketing. Since mail orders marketers
use catalogues for communication with the consumer, this form of marketing is
often referred to as catalogue marketing. In these methods the consumer become
aware of product through information furnished to them by the marketer through
catalogues dispatched by mail.
5. Franchising:
Franchise in French means privilege or freedom. Franchising refers to the methods
of practicing and using another person’s philosophy of business. The franchisor
grants the independent operators the right to distribute its products, techniques and
trademarks for a percentage of gross monthly sales and royalty fee. Various
tangibles and intangibles such as national or international advertising, training and
other support services are commonly made available by the franchisor. Agreements
typically last five to twenty years, with premature cancelation or termination of
most contracts bearing serious consequences for franchisees.

10
3)Multichannel Retailing:

1.Store channel:
Store-Based Sellers – By far the predominant method consumers use to obtain
products is to acquire these by physically visiting retail outlets (a.k.a. brick-and-
mortar). Store outlets can be further divided into several categories. One key
characteristic that distinguishes categories is whether retail outlets are physically
connected to one or more others stores: Stand-Alone – These are retail outlets that
do not have other retail outlets connected. Strip-Shopping Centre – A retail
arrangement with two or more outlets physically connected or that share physical
resources (e.g., share parking lot) Shopping Area – A local centre of retail
operations containing many retail outlets that may or may not be physically
connected but are in close proximity to each other such as a city shopping district.
Regional Shopping Mall – Consists of a large self-contained shopping area With
many connected outlets
2.Catalog channel:
The consumer selects the goods he/she wants to purchase from an online catalog.
This catalog may be hosted either on the SAP Marketplace or on the retailer's Web
site. Once the order is complete, the customer confirms it and notes the order
number. The order is then transferred to the retailer's SAP System, the necessary
materials are reserved, the internal order is triggered, and the goods are sent off
and delivered by a service partner. Using the confirmed order number, the
customer can check the status of the shipment at any time on the Internet. Once the
goods have been shipped and the customer has received them, the goods receipt is
confirmed and based on this, billing then takes place

11
3. Internet channel:
When a firm uses its website to offer products for sale and then individuals or
organisations use their computers to make purchases from this company, the
parties have engaged in electronic transactions (also called on line selling or
internet marketing). Many electronic transactions involve two businesses which
focus on sales by firms to ultimate consumers. Thus online retailing is one which
consists of electronic transactions in which the purchasers’ an ultimate consumer.

1.5 Introduction of big bazaar:

Big Bazaar is a chain of shopping malls in India currently with 31 outlets, owned
by the Pantaloon Group. The idea was pioneered by entrepreneur Kishore Biyani,
the head of Pantaloon Retail India Ltd. The idea from the very beginning was to
make Big Bazaar very comfortable for the Indian customer. That was Kishoreji’s
strength as a retailer. He had a lot of confidence in what he was doing, even though
it defied conventional logic.
Big bazaar is not just another hypermarket. It caters to every need of your family.
Where Big Bazaar scores over other stores is its value for money proposition for
the Indian customers. At Big Bazaar, you will definitely get the best products at the
best prices - that’s what they 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
12
more at prices that will surprise you. And this is just the beginning. Big Bazaar
plans to add much more to complete their customers shopping experience. If one
looks at Indian bazaars, mandis, melas, they are environments created by traders to
give shoppers a sense of moment, of event, of place. They provide an inclusive
environment where men and women from all castes, creeds and classes can come
and shop at the same place. The founders of Big Bazaar were from the beginning
very clear that they had to reflect the look and feel of Indian bazaars at their
modern outlets, so that no customer would feel intimidated with the surroundings.
In India most of us are not prepared for the consumerism that is setting in this
country. We underestimate how many people are going to fly and that s why our
airports get crowded. We underestimate how many people will speak on the phone
for how many billions of minutes and therefore our cell phone networks are always
congested. But the minds responsible for the huge success of Big Bazaar have
captured and understood the force of consumerism that is unfolding. Big Bazaar’s
all over India attract a few thousand customers on any regular day, and a lot more
if they are offering something extra on each buy, which they normally are! And the
sales force at Big Bazaar along with the executives is prepared for them.
1.6 Objective of big bazaar:

The central objective for earlier businesses of Big Bazaar w was to bring in
stability and consolidation. They were built to enforce order. However, in
the new era where nothing remains constant, the dominant theme for
businesses needs to be speed and imagination.

The new macro-differentiator can be design. Design is helping companies to

sell differentiated experiences and solutions that connect with the
consumer’s emotions. It’s no longer about selling products and services
alone. Nor is it just about completing transactions. Every time a customer
walks in, it is an opportunity to build a relationship and invite the customer
to become a part of the transformational scenario. Design management is
helping us position the customer at the center of every decision we take and
also operate with true entrepreneurial spirit.

13
Target customer: Big Bazaar targets higher and upper middle class customers
because there has been growth in Indian middle class that has so far been used to
buying apparel and groceries from small and cluttered neighborhood market shops
is fast realizing the joys of visiting malls that have redefined the freedom to shop
and entertain. Such malls are the new temples of leisure and weekend
entertainment. India’s National Council for Applied Economic Research estimates
that the nation’s middle class population currently comprises about 17 million
households – 90 million people – with annual earnings ranging between $4,500
(£2,400) and $22,000 (£11,736). An additional 287 million could be termed as
‘aspirers’ or those that hope to join the middle class in the near term. Rising
incomes, particularly in the lower and middle-income households, are impacting
retail growth in India as these groups tend to spend more on upgrading and
diversifying their lifestyles, eating out and moving on to processed and
convenience foods.

Targeting young working class: The large and growing young working
population is a preferred customer segment for Big bazaar. These young people are
early adopters of most modern product lines.

The ongoing boom in sectors such as information technology and business process
outsourcing has created a clientele with high disposable income and a increased
demand for lifestyle merchandise such as watches, cosmetics and perfumes. This is
a much-travelled and brand-savvy urban population. Interestingly, an estimated 40-
50% of the Indian working woman’s salary is spent on apparel and footwear.
Eating out, mobile phones and accessories make up the other leading spending
options. Big Bazaar specifically target young, working professionals, home
makers who are primary decision maker.

14
Value for money: All our lines of business are consumer centric and I believe
that if we are to be in the larger consumer space, we would need to keep changing,
evolving and accordingly be flexible in our business plans. Consumers are the
same everywhere; we are only bound by our social systems. Their desires, greed’s
and needs are similar. The value for money proposition is so ingrained in the
Indian consumers mind that he needs to be shown true value all the time.
Therefore, all our current and future businesses would necessarily have the
common denominator as the consumer.
All our alliances and relationships with many company’s have been built, keeping
the synergies of business and consumer offerings in mind.

Image: “Is se sasta aur accha kahin nahi” Nothing captures the sprit of Big Bazaar
better than this one liner. It is a simple statement and yet it positioned at the top of
Indian customers mind. It shows that big bazaar was built on the foundation of
entrepreneurship and simplicity. They believe in service and value for the
customers. They consider that it is their only duty to keep customer in mind at
every step, they go that extra mile and buy directly from source in bulk so that they
can get best rates by keeping the margin low

Big Bazaar is constantly on the lookout for finding new ways and means to
improve the current state of affairs. Thus, innovation is a very important aspect of
their working strategy. The other very important philosophy is that of Indianness.
All the concepts and formats as well as the way of doing things are very Indian.
The way Big Bazaar is designed and the way the whole concept has developed
reflects a sense of Indianness.

1.7 Growth retail in big bazaar:

15
Retail and real estate are the two booming sectors of “India in the present times.
And if industry experts are to be believed, the prospects of both the sectors are
mutually dependent on each other. Retail, one of India largest industries, has
presently emerged as one of the most dynamic and fast paced industries of our
times with several players entering the market.

Accounting for over 10 per cent of the country GDP and around eight per cent of
the employment retailing the Indian is India is gradually inching its way toward
becoming the next boom industry

Percentage Share of Retail Segments in

Total Retail Sector
Clothing and Textiles
3 3 Food and Grocery
8
7 Consumers Durables
39 Footware
Furniture and Furnishing
7 Catering services
Jewellery and watches
Books, music and gifts
Mobile hansets
Others
8
5 11
9

Recent trends:
 Retailing in India is witnessing a huge revamping exercise as can be seen in
the graph
 India is rated the fifth most attractive emerging retail market: a potential
goldmine.
 Estimated to be US$ 200 billion, of which organized retailing (i.e. modern
trade) makes up 3 percent or US$ 6.4 billion
16
  As per a report by KPMG the annual growth of department stores is
estimated at 24%.
 Ranked second in a Global Retail Development Index of 30 developing
countries drawn up by AT Kearney.
 Multiple derives leading to a consumption boom:
 Favourable demographics
 Growth in income
 Increasing population of women
 Raising aspiration: Value added goods sales
 Food and apparel retailing key drives of growth
 Organized retailing in India has been largely an urban
 Phenomenon with affluent classes and growing number of double-income
households.
 More successful in cities in the south and west of India. Reasons range from
differences in consumer buying behaviour to cost of real estate and taxation
laws.
 Rural markets emerging as a huge opportunity for retailers reflected in the
share of the rural market across most categories of consumption.
 IT is a tool that has been used by retailers ranging from Amazon.com to
eBay to radically change buying behaviour across the globe.
Company Profile:
Big Bazaar is chain shopping malls in India, owned by the Pantaloon Group and

which work on Wal-Mart type economies of scale. They have had considerable

success in many Indian cities and small towns. Big Bazaar provides quality items

but at an affordable price. It is a very innovative idea and this hypermarket has

17
almost anything under one roof... Apparel, Footwear, toys, Household Appliances

and more. The ambience and customer care adds on to the shopping experience.

Is se sasta aur acha kahin nahin;-

Big bazaar is the company’s foray in to the world of hypermarket discount stores,

the first of its kind in India. Price and wide array of products are the USP’s in Big

bazaar. Close to two lakh products are available under one roof at prices lower by

2 to 60 percent over the corresponding market prices. The high quality of service,

good ambience, implicit guarantees and continuous discount programmers have

helped in changing the face of the Indian retailing industry. A leading foreign

broking house compared the rush at Big bazaar to that of a local suburban train.

Products available in big bazaar:

Apparel and Accessories for Men, women and Children

Baby Accessories Toys Luggage

Cosmetics Home Textiles Liens

Crockery Household Appliances Sarees

Dress Materials Suiting& Household Plastics Stationary

Shirting

Electrical Accessories Hardware Utensils &

utilities

Footwear Home Decor

18
Reference:
www.futurebazaar.com
www.futuregroup.com
www.wikimedia.com
www.retailindia.com
www.google.co.in

19
 Chapter No.2
Retail consumer &
Retail strateggy of Big
bazaar

20
 2.1 Retail Consumer/ Shopper:

Meaning: Retail shopper is a customer who is going to buy in small quantity an

the product usage would b by him/her or by his/her family or friends. Discounts are
low as the quantity retail customer deals in is also low.

Characteristics of Retails Customers:

1.Time Killers : Move around the stores at speed. Cover a lot of the store. Spend
relatively short amounts of time in the store. Typical of someone waiting for a
friend or partner, or on a lunch break. probability of interacting with the product.
Conversion Rate: 0 %
2. Focused Fulfillers : Will move quickly through a store until they get to a
specific product. Likely to have previewed the product in the area will only interact
with products that meet their specific criteria. Conversion Rate: 82%

21
3. Product Groupies : Will walk into the store and head for a specific
department or category in the target area of the store will slow down and browse
with the purpose Will touch many products but focused on the target product
group. Conversion Rate : 37% 01 4. General Browsers : Cover large areas of the
store Move slower than time Killers. Likely to interact with product, but not in a
focused way. Conversion Rate : 2 %
5. Pleasure Seeker : Spends a long time in the store. Will slowly move through
departments that interest them. Will touch a lot of items. Easily influenced by staff
interaction. There is an urgency about them, as if they have to buy within a certain
time. Typical behaviour of people after payday. Conversion Rate : 79% Sub
Category of Buyer Personality Type

6. The Apathetic Buyer : This type of buyer represents about 5% of the total.
She is the kind of person who is not going to buy anything, no matter how good it
is. She is usually pessimistic, cynical and often depressed or uninterested. They
have usually have a lot of problems in their own personal and business lives. if you
are offering an apathetic buyer a Rs. 1000 price for Rs. 50, she wouldn't take it.

7. The Self-Actualizing Buyer : These kind of buyer is opposite to the

apathetic buyer. These buyers also represent about 5 % of the customer market.
She knows exactly what she wants, exactly the features and benefits he is seeking,
and exactly what price he is willing to pay for it.
Factors influencing retail shoppers:

22
The factors , which influence the customer’s decision-making process, are as the
follows:
1. Range of merchandise: The range of merchandise is, perhaps, the most
important reason for customers to patronise a particular outlet. The initial curiosity
of the store may draw a consumer to a retail store, but to convert him into a buyer
and to retain him over a period of time is largely dependent on the quality and the
range of merchandise offered by the store. If the merchandise is similar to that of
another store or what is commonly available, the customer may not see any reason
why he should not switch stores. The range of merchandise offered plays an
important role in case of categories like durables, books and music, apparel and
other lifestyle products. india
2. Convenience of shopping at a particular outlet: The element of
convenience is fast gaining prominence in the world of organised retail This is
especially true in case of items like grocery / fruits and chemists. For example,
while buying medicines most patients would prefer to buy from the chemist near
the doctor's clinic or near the hospital.
3.Time to travel: The time required to reach a particular retail location is again
fast becoming critical. This is especially true in case of metros like Mumbai, where
travel time is high. This has resulted in many local areas developing in terms of
shopping to facilitate buying. We see the appearance of multiple outlets for a
brand, departmental stores and malls making their appearance across most Indian
cities,

23
4. Socio-economic factors: Socio-economic factors are seen as fundamental to
development. India is today a nation which has a large middle class, a youth
population which is happy spending and a steady rate of growth of GDP. The
socio-economic background of the consumer largely determines his lifestyle. This
influences the kind of store that he may be comfortable shopping in. Consumer
buying behaviour varies from market to market and is largely influenced by the
culture of the region for example Asian culture is very different from Western
culture. The need hierarchy is different for each market. The need that the retailer
can fulfill needs to be clearly understood by him This will not only help him in the
determining the right merchandise mix but will also help him in evolving an
effective communication strategy.
The primary indicator of socio-economic change is the increase in life expectancy
from 58 years in the year 1991-92 to an average of 66 years in 2006-07. India aims
to achieve 100% literacy (15-35 age groups) by the year 2006-07. Basic amenities
like drinking water and electricity are also likely to be commonly available. Thus,
we can say that there is a definite improvement in the basic quality of life of an
average Indian citizen. With the basic necessities being taken care of, there is a
good chance that the demand for other products and services may increase
5. The stage of family life cycle: The stage of the family life cycle that the
customer belongs to also largely influences his needs. For example, the needs of a
young bachelor will be different from the needs of a family with children in their
teens, which will again be different from the requirements of an elderly retired
couple. The retailer needs to be clear about the target market that he is catering to,
as he cannot be everything to everybody.
6. Customer Treatment: Warm customer treatment is an effective way to pull
the customers into the store. It is essential for the retailers tº treat the customers
like kings to expect loyalty from them.
 Understand your customers well. Try to find out what they expect from the
store.
 The sales representative must warm greet the customers with a warm smile.
It makes a difference
Changing profile of retail shoppers
• The new age Indian shopper is younger, innovative, a risk taker.

24
• He is comfortable to adopt new technology, has a higher disposable income but a
shorter attention span and he is less tolerant of service failures.
• Consumers are ready to spend for shopping experience.
• Not only utilitarian value but hedonistic value also appease the customers .

2.2 Customer relationship management (CRM) in retail:

• Customer relationship management (CRM) is a technology for managing all your

company's relationships and interactions with customers and potential customers.
• The objective is to retain the customers for life.

25
• CRM is a strategic approach that is concerned with creating improved
shareholder value through the development of appropriate relationships with key
customers
• CRM adds value to the offering made by the retailer.
Benefits of CRM in retail:
• Improved customer relations
• Maximize up selling and cross-selling
• Expand customer base
• Optimize marketing
• Improve retailer’s efficiency
Objectives of CRM:
These days, every customer is connected to both the retailer and other customers.
Using social apps, a customer can reach out for support, recommend a product or
service, or relate a problem, all from the palm of their hand and in real time. They
expect immediate responses to their questions and problems, and they demand to
be informed about promotions

and sales as they happen and if they are near a particular retail establishment.
Retailers have the opportunity to leverage social technologies in their favor. By
understanding that each social action by a customer offers the opportunity for the
business to make a touch point, collect data, or build loyalty, retailers can better
grasp how important social customer relationship management (CRM) is to them.
(1) Building Loyalty:
Customers expect rewards. Years ago, a rewards card that collected points or a
coupon in the mail went a long ways toward building loyalty, but now customers
expect to gain from positive interaction with retail businesses. Each time a
customer connects with a company through social networks, checks in at a physical
location, or opens the company's e-mail, it gives that company a chance to
strengthen its relationship with them. Social CRM software that monitors the
customers' interaction with the company lives the organization the opportunity not

26
only to provide its customers with something in return the reward-but allows the
company to capture analytics regarding its customers' shopping habits.
(2) Segmentation:
CRM helps you gather information about each of your customers, including
preferences and demographic data. You can use such information to segment your
market and customize your approach to each group of customers. For example, if
you find you have a large number of young families in a segment, you can create a
family-friendly retail environment. If your data shows you have many seniors, you
can install ramps for wheelchairs and make your store more easily accessible. The
effect of segmentation based on CRM data is to adjust your retail strategies to
better suit the customers you have.
(3) Promotions:
The data you gather within a CRM system lets you not only target a market
segment with promotions that appeal to its members, but also to target individual
customers. For example, when you know that a customer is reaching retirement
age, you can promote appropriate hobby products to him. If you see that a
customer has visited your website and looked at particular products, you can
include promotions of those products in his mailings. In this way CRM reduces
promotions that are of no interest to the recipient and increases the relevance of
material you send out.
(4) Purchases:
CRM system keeps records of customer purchases and customer A service calls.
You can keep track of the products each customer has purchased and whether there
have been any warranty or dissatisfaction issues with the purchase. This
information allows you to send out special offers to customers when the products
they have purchased reach the end of their lives. Such a strategy keeps your
products in front of the customer just when he might need them and gives him the
benefit of lower pricing if he buys from you again. On your side, the costs of such
a targeted promotion are lower than marketing to a large group and receiving only
a few responses
(5) Retention:
The overall effect of CRM is to increase the retention of customers by serving
them in a more focused and convenient way. You can further increase this effect
27
by using the CRM software to implement customer loyalty programs. Since the
applications already track purchases, you can issue reward points and bonuses to
keep valuable customers. Such program let your further reduce costs because sales
to long term customers are les expensive than sales to new customers.
(6) Lower Level of Operating Cost: Cost reduction is one of the main priority for
every company. All CRM activities help to achieve the same Simultaneously, it is
very important to understand the strategies chosen for the business. Every process
needs to be very efficient. Workforce management system can help in increasing
the skills and reducing the unwanted cost for the firm.
2.3 Retail Strategy or Retail mix in big bazaar:
In order to implement specific retail strategy managers prepare the ideal
combination of retail-mix variables and coordinate the activities of the different
elements of the mix such as:

 Merchandise assortmement
 Location
 Price
 Visual merchandising
 Store atmosphere
 Customer service
 Advertising
 Promotion
 Personal selling”
2.4 Human Resource Management:

28
  HRM includes recruitment and selection of appropriate employees at various
levels.
 The main objective of HRM is to help an organization to meet its strategic
goals by attracting, maintaining and managing them.
 HRM basically is the organizational function that deals with issues related to
people such as compensation, hiring, performance management,
organization development, safety, wellness, benefits, employee motivation,
communication, administration, and training.
Objectives of HRM in Retailing:
 To serve as standards against which performance is evaluated.
 To promote harmony among human efforts & voluntary co-operation.
 To fulfill the demand of retail industry.
 To boost up survival-integrated activities such as employees’ recruitment,
selection, induction, training and development, supervision and
compensation in the organization.
 Right person at right position
HRM Functions in Retailing:
These seven human resource areas and their associated functions share common
objectives of an adequate number of competent employees with the abilities,
experience, knowledge and skills required for fulfilling organizational goals.
Though a human resource function can be assigned to one of the seven areas of
human responsibility, some functions serve a variety of objectives. For example,
performance management besides motivating the retail employees leads to
employees' development as well as compensation and benefits. Similarly,

29
compensation and benefits function facilitates retention, training and development
and also serves to have cordial labor and managerial relations.
These human resource functions are expressed as under:
1. Job analysis and job design:
Job analysis is the process of describing the operations, duties and responsibilities
of the job. In order to recruit retail employees on a scientific and rational basis, it
becomes necessary to determine in advance a standard of personnel with which
interested candidate can be compared. This standard must establish the minimum
acceptable qualities necessary for the accomplishment of tasks by retail employees.
2. Recruitment and selection of retail employees:
The success of a retail organization largely depends upon the team of efficient
store employees who are chosen out of a number of applicants for the job.
Recruitment is a very first step in the employment process, which aim at obtaining
and maintaining an efficient store staff (floor employees) as a means of achieving
sales targets. Recruiting employees basically involves three major sub
functions:
(i) Recruitment,
(ii)Selection, and
(iii) Placement on the job.
Recruitment defined:
According to Edwin Flippo, "Recruitment is the process of searching for
prospective employees and stimulating them to apply for the jobs in the
organization".
Selection defined:
According to Thomas stone, "Selection is the process of differentiating between
applicants in order to identify those with a greater likelihood of success in the job.
3. Training and development:
After selecting the most suitable and eligible candidates in the organization, the
next step of HR department are to arrange for the training. All types of jobs require

30
some type of training for their efficiency performance and therefore, all employees,
new or old should be trained ox re-trained from time to time
Further, the way new and new retail formats are emerging, new developments are
taking place throughout the globe, it becomes imperative for any retail
organization to systematically plan for the training program aiming at increasing
the knowledge, skills, abilities and aptitude employees to perform the new
competitive tasks.
4. Performance Management:
After selected, training and motivation, the next task, a HR has to perform is to
evaluate the personality and performance of ea employee by quantitative factors
(such as targets achieved). In actual the help of performance management, the
management through HR department would like to find out how effective it has
been hiring an placing employees. Performance management allows retailers gain
access to the reliable, timely information that drives better decisions. manage
The term 'performance management' and 'performance appraisal an used
synonymously by few authors and subject experts. But the retailer throughout the
globe believe that performance management is a broade term that may include
performance appraisal too.
5. Compensation and Benefits:
Compensation and benefits represent a substantial part of total cost in most of the
organizations. Compensation is not only the concern of the organization but is
equally important for the workers and employees to maintain their social image.
The main objective of such compensation and benefits are to contro the costs, to
establish a fair and equitable remuneration to all, to utilize the compensation and
benefits device as an incentive for greater employer productivity and to establish a
satisfactory public image. Hence, it becomes imperative for the HR department of
any reta business to have clear-cut policy guidelines regarding employee
compensation and various benefits. For effective implementation compensation
plans, HR department should be aware about the benefits given to the employees in
similar kind of organizations. The attitude of the employees towards his employer
will usually be determined by the extent to which he/she is satisfied with the wages
heist is getting, though it is not the only reason for employee satisfaction.
motivation comes after an employee is satisfied with his/her bas Ever

31
6. Labor Relations:
In modern days, retailing is carried on a large scale where hundreds of employees
work together. The HR manager is basically responsible for the control of labor
(workers and employees) through human relation approaches. Employees differ in
nature and therefore, it is but natural that due to any communication gap, labor
relations may spoil within the organization. Therefore, the HR department should
know the proper policies, rules and regulations with regard to labor relations
Harmonial relationships are necessary for both retailers and employees. It not only
results in industrial peace but also leads to better and higher sales targets. Most of
the retail organizations these days besides having HR department also take the
services of legal experts (practitioners) for consultation from time to time. Further,
hiring legal experts within the organization has become necessary considering that
each state has its different set of rules for managing HR with some standard rules.
7. Managerial Relations:
The employment relationship, irrespective of nature of organization, usually has
two parts: labour relations and managerial relations. The former which covers the
price of labour is more obvious. The labour relation is also known as 'market
relations'. The managerial relations on the other side are the relationships that
define how the process takes place. Labour relations describe the price for a
particular shift (a set of number of hours) but managerial relations determine how
much work is performed in that time, at what specific task or tasks, who has the
right to define the tasks and change a particular mix of tasks and what penalties
will be deployed for any failure to meet these obligations.
Reference:
https://www.slideshare.net/shashankshukla7545/big-bazaar-retailing-strategy
https://www.slideshare.net/writekraftindia/retail-management-big-bazaar-
wwwwritekraftcom-105337684
www.google.com
www.retail.com

32
Chapter No.3
33
 Merchandise
management and
Pricing of Big bazaar

3.1 Merchandise management:

Meaning: According to David Gilbert “Merchandise management is the planning
and implementation of the acquisition, handling and monitoring of merchnadise
categories for an identified retail organisation.”

34
Merchandise Atmospherics:
Atmospherics refers to the design of an environment through visual
communications, lighting, colours, music and scent to stimulate customers
perceptual and emotional responses and ultimately to affect their purchase
behaviour Many retailers have discovered the subtle benefits of developing
atmospherics that complement other aspects of the store design and the
merchandise. Research has shown that it is important for these atmospheric
elements to work together-for example, the right music with the right scent
(1) Visual Communications :
Visual communications comprising graphics, signs and theatrical effects both in
the store and in windows help boost sales by providing information on products
and suggesting items or special purchases. Signs and graphics also help customers
find a department or merchandise. Graphics such as photo panels, can add
personality, beauty and romance to the store's image
The issues which should be considered by the retailers when designing visual
communication strategies for their stores are as follows:
(a) Co-ordinate signs and graphics with the store's image.

35
(b) Inform the customer.
(c) Use signs and graphics as props.
(d) Keep signs and graphics fresh.
(e) Limit the copy of signs.
(f) Use appropriate typefaces on signs.
(g) Create theatrical effects.
(2) Lighting :
Good lighting in a store involves more than simply illuminating space. Lighting is
used highlight merchandise, sculpt space and capture a mood or feeling that
increases the image of the store. Lighting can also be used to downplay less
attractive features that cannot be changed. Having the appropriate lighting has been
shown to positively influence customer shopping behaviour.A good lighting
system helps create a sense of excitement in the store Ar the same time, lighting
may provide an accurate colour rendition of the merchandise

A green silk tie should look the same colour in the store as at the customer's office.
Similarly, lighting should compliment the customer. For example, a department
stores cosmetics area requires more expensive lighting than the bare fluorescent
lighting found in most grocery stores because it has to compliment the customer
and make her skin look natural.
Highlighting Merchandise another key use of lighting is called popping the
merchandise focusing spotlights on special feature areas and items. Using lighting
to focus on strategic pockets of merchandise trains shopper's eyes on the
merchandise and draws customers strategically through the store.

36
Downplay Features
Lighting can hide errors and outmoded store designs.
Colour
The creative use of colour can enhance a retailer's image and help create a mood.
Warm colours (red and yellow) produce excitement, whereas cool colours (blue
and green) have a calming effect.
(3) Music:
Like colour and lighting, music can either add to or detract from a retailer total
atmospheric package. Unlike other atmospheric elements. however music can be
easily changed. Retailers can also use music to affect customer's behaviours. Music
can control the pace of store traffic, create an image, and attract or direct
customer's attention.
(4) Scent:
Many buying decisions are based on emotions, and smell has a large impact on our
emotions, such as happiness hunger, disgust and nostalgia - the same feelings
marketers want to tap. Scent, in conjunction with music, has positive impact on
impulse buying behaviour and customer satisfaction. Scents that are neutral
produce better perceptions of the store than no scent. Customers in scented stores
think they spent less time in the store than subjects in unscented stores. Stores,
using scents may improve Customer's subjective shopping experience by making
them feel that they are spending less time examining merchandise or waiting for
sales help or to check out
Main objective of the store layout is to maximize the interface between customers
and merchandise” It provides easy accessibility to the customers to view the
offerings of the store. Layout of the store has been strategically designed in order
to make effective use of merchandise and passage to draw customers’ attention on
store’s offerings Big Bazaar has a wide range of merchandise they have both
branded and unbranded products like :
 Home lien items: Like bed sheets, pillow covers, carpets to kitchen utility items
like steel utensils and crockery and other minor utility items required in a house
 Electronic items: like refrigerator, T.V, vacuum cleaner, music system, vacuum
cleaner, washing machine. etc

37
 Mobile Zone: A wide range of mobile phones and accessories is available at
lowest possible price
 Furniture: All kinds of furniture is available that one may require to decorate
their house.
 Star Sitara: In this section all kinds of cosmetic items are made available
 Opticians: In this section all brands and types fashion glasses are available
 Men Ladies and kids wear: This section includes fashion and casual wear for
men ladies and kids both branded and unbranded.
 Foot wear: In this section footwear for men women and kids is made available.
 Music: A wide collection of CDs DVDs is made available
 Toys: All kinds of toys for children is available
 Stationary: all kind of office stationery and stationery for school going kids is
available.

3.2 Buying behaviour of customer

The buying Process:

1.Need recognition / Problem recognition:
38
The need recognition is the first and most important step in the buying process. If
there is no need, there is no purchase. This recognition happens when there is a lag
between the consumer’s actual situation and the ideal and desired one. Smartworld.
However, not all the needs end up as a buying behaviour. It requires that the lag
between the two situations is quite important. But the “way” (product price, ease of
acquisition, etc.) to obtain this ideal situation has to be perceived as “acceptable”
by the consumer based on the level of importance he attributes to the need.
2. Information search
Once the need is identified, it’s time for the consumer to seek information about
possible solutions to the problem. He will search more or less information
depending on the complexity of the choices to be made but also his level of
involvement. (Buying pasta requires little information and involves fewer
consumers than buying a car.)
Then the consumer will seek to make his opinion to guide his choice and his
decision-making process with:
Internal information: this information is already present in the consumer’s
memory. It comes from previous experiences he had with a product or brand and
the opinion he may have of the brand. Internal information is sufficient for the
purchasing of everyday products that the consumer knows – including Fast-
Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG). But
when it comes to a major purchase with a level of uncertainty or stronger
involvement and the consumer does not have enough information, he must turns to
another source.
External information: This is information on a product or brand received from and
obtained by friends or family, by reviews from other consumers or from the press.
Not to mention, of course, official business sources such as an advertising or a
seller’s speech.
3. Alternative evaluation
Once the information collected, the consumer will be able to evaluate the different
alternatives that offer to him, evaluate the most suitable to his needs and choose the
one he think it’s best for him. In order to do so, he will evaluate their attributes on
two aspects. The objective characteristics (such as the features and functionality of
the product) but also subjective (perception and perceived value of the brand by the

39
consumer or its reputation). Each consumer does not attribute the same importance
to each attribute for his decision and his Consumer Buying Decision Process. And
it varies from one shopper to another. Mr. Smith may prefer a product for the
reputation of the brand X rather than a little more powerful but less known product.
While Mrs. Johnson has a very bad perception of that same brand. The consumer
will then use the information previously collected and his perception or image of a
brand to establish a set of evaluation criteria, desirable or wanted features, classify
the different products available and evaluate which alternative has the most chance
to satisfy him.
4. Purchase decision
Now that the consumer has evaluated the different solutions and products available
for respond to his need, he will be able to choose the product or brand that seems
most appropriate to his needs. Then proceed to the actual purchase itself. His
decision will depend on the information and the selection made in the previous step
based on the perceived value, product’s features and capabilities that are important
to him.
5. Post-purchase behaviour
Once the product is purchased and used, the consumer will evaluate the adequacy
with his original needs (those who caused the buying behaviour). And whether he
has made the right choice in buying this product or not. He will feel either a sense
of satisfaction for the product (and the choice). Or, on the contrary, a
disappointment if the product has fallen far short of expectations.
Types of buying decisions:
1.Extended problem solving:
Is a purchase decision process in which customers devote considerable time and
efforts to analyse the alternatives. Customers typically engage in extended problem
solving when purchase decision involves a lot of risk and uncertainty. Financial
risk arises when a customer purchases an expensive product or service. Physical
risks are important when customers feel that a product or service may affect their
health or safety. Social risks arise when customers believe a product will affect
how others view them. Consumers engage in extended problem solving when they
are making buying decision to satisfy an important need or when they have little
knowledge about the product or service.

40
2. Limited problem solving:
Is a purchase decision process involving a moderate amount of time and effort.
Customers engage in this type of buying process when they have had some prior
experience with the product or service and their risk is moderate. In these
situations, customers tend to rely more on personal knowledge than on external
information. They usually choose a retailer they have shopped at before and select
merchandise they bought in the past. The majority of decisions involve limited
problem solving.
3. Habitual decision making:
Is a purchase decision process involving little or no conscious effort. Today’s
customers have many demands on their time. One way they cope with these time
pressures is by simplifying their decision making process. When a need arises,
customers may automatically respond with, “I’ll buy the same thing i bought last
time from the same store.” typically, this habitual decision –making process is used
when decisions aren’t very important to customers and involve familiar
merchandise they have bought in the past. When customers are loyal to a brand or
a store, they are involved in habitual decision making.
Factors influencing the buying process:
Cultural factors:
Cultural factors are coming from the different components related to culture or
cultural environment from which the consumer belongs. Culture and societal
environment: Culture is crucial when it comes to understanding the needs and
behaviours of an individual. Throughout his existence, an individual will be
influenced by his family, his friends, his cultural environment or society that will
“teach” him values, preferences as well as common behaviours to their own
culture. For a brand, it is important to understand and take into account the cultural
factors inherent to each market or to each situation in order to adapt its product and
its marketing strategy. As these will play a role in the perception, habits, behavior
or expectations of consumers.
Social factors
Social factors are among the factors influencing consumer behavior significantly.
They fall into three categories: reference groups, family and social roles and status.

41
3.3 Private label of big bazaar:
 Private labels are brand owned by retailers themselves.
 They are often referred to as store brands or own labels.
 Effect of private label due to rapid expansion of retails chain in india.
 Perception of the consumer towards the store brand is one of value for
money.
 Private label is push strategy.
Private labels of future group (Big bazaar):
 Apparels: John Miller, Bare, DJ&C, Indigo Nation, RIG etc.
 FMCG: Tasty treat, Fresh n Pure
 General Merchandise: Dream line
 Consumer durables & Electronics: Sensei and koryo.

42
3.4 Pricing
Pricing is the process whereby a business sets the price at which it will sell its
products and services, and may be part of the business's marketing plan. ... The
needs of the consumer can be converted into demand only if the consumer has the
willingness and capacity to buy the product.
Big bazaar is also known as the “Indian Wal-Mart”,because they also use Every
day low pricing (EDLP) strategy, with a promise to save on a basket of goods.
Pricing strategies of big bazaar
a) Value Pricing:
Value pricing (also value optimized pricing) is a pricing strategy which sets prices
primarily, but not exclusively, on the value, perceived or estimated, to the
customer rather than on the cost of the product or historical prices.

43
Provide lowest available price without coupon clipping, waiting for discount
promotions or comparison shopping
b) Time pricing:
 Time-based pricing is a pricing strategy where the provider of a service or
supplier of a commodity, may vary the price depending on the time-of-day
or day of the week or on occasions when the service is provided or the
commodity is delivered
 Charges different rates for a given good or service depending on that day,
month, and so on.

44
 c) Differential time pricing:
Time pricing i.e. difference in rates based on peak and non-peak hours or days of
shopping is also a one kind of pricing strategy.

45
d) Bundling:
 Selling combo-packs at discounts.
 E.g. 3 Good day family packs at Rs 60

46
Reference:
https://www.slideshare.net/AsimMahato1/big-bazar-retail-store-management
https://fdocuments.in/document/retail-formats-of-big-bazaar.html
https://www.academia.edu/7108307/
RETAIL_MANAGEMENT_BIG_BAZAAR_Introduction_to_Retail_Industry
www.google.com
https://www.coursehero.com/file/21694428/bigbazr-conclu-recco/

47
 CHAPTER
NO.4
Modern technology in
Big bazaar

48
 MODERN TECHNOLOGY DEPLOYED BY BIG BAZAAR
The evolution of technology within the retail and e-commerce space is shaping
how consumers behave and interact with brands and savvy, smart retailers know
that understanding shoppers’ behaviour is key for success. These retailers realize
they can utilize technology to capitalise on consumer needs and customised
offerings to help significantly increase their bottom lines. Big Bazaar as a retailer
follows a lot of modern trends to increase customer satisfaction and save time on
both ends (retailer and customer). The modern technologies deployed by Big
Bazaar are given below:

 Electronic Point-of-Sale System: An EPOS system is one in which a

universal product code (black and white stripes or barcode) is read by a laser
scanner connected to a computer. On scanning a product, the computer records the
sold items and displays the price of the products to the customer. Eventually, an
itemised bill is generated and given to the customer as the receipt.

49
 Electronic Funds Transfer at Point-of-Sale: An EFTPOS system is one
which facilitates cashless payments by the customers. An EFTPOS terminal is
connected to the retail store on one end and the other end to multiple banks and
credit card companies. This system enables a customer to use credit and debit cards
for their purchases. It is convenient for the customer as it is quicker and less open
to fraud. The retailer is happy as he receives his payment in his account
immediately.

 Electronic Data Interchange: EDI is the electronic exchange of data that

takes place between the retailer’s computer and that of his supplier. The exchange
consists of orders, delivery notices, invoices, returns and sales data. Its saves the
lead time of deliveries and large savings can be made by the consequent reduction
in inventory required. Given below is the process a business would take have to go
through with and without EDI.

50
 Quick-Response Replenishment Systems: When EPOS systems are
combined with EDI, retailers are in effect adopting just-in-time replenishment or
quick-response (QR) replenishment methods. Ordering merchandise is not based
on historical but current sales. An advantage that that the QR Replenishment
Systems have is the reduction in stock outs and the amount of inventory carried.
This reduces the cost to the retailer and improves the service to the customer. The
image below shows a simplified quickresponse replenishment system.

51
 Loyalty Programs: At Future Group Big Bazaar, we believe in building long-
lasting relationships with customers. We encourage repeat customer visits through
our unique offers and special sale days. Future Group has taken the whole concept
of customer loyalty to the next level by joining hands with PAYBACK.
PAYBACK is India’s largest and one of Europe’s most successful multi-partner
loyalty programs. With PAYBACK, customers can shop, save and get rewarded.
This program enables consumers to collect millions of points across online and
offline partners – with just a single card. Customers can accumulate points across
Future Group formats, thereby making “shopping rewarding”. Our formats Big
Bazaar, Food Bazaar, Pantaloons, Central, Home Town, eZone, Brand Factory and
Future Bazaar are a part of the PAYBACK Loyalty program.

 Instrare Radio & television for dynamic promotions:

World is changing fast & se is Bellaraar & its offers. They use dynamic instore
displays & an instore Radie for promotion TVs continuously runs informations
about various offers available at bigbaar radio play song on customer demand &
announces new offers.
Reference:
https://vdocument.in/retail-visit-report-of-big-bazaar.html
https://issuu.com/writekraftuk/docs/retail_management_big_bazaar
https://www.uniassignment.com/essay-samples/information-technology

52
 CHAPTER NO:5
Store management
&
Visual merchandising

53
5.1 Store Management of Big Bazaar:
Management of Big Bazaar

Mr. Kishore Biyani, Managing Director

Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and
the Group Chief Executive Officer of Future Group.
Mr. Gopikishan Biyani, Wholetime Director
Gopikishan Biyani, is a commerce graduate and has more than twenty years of
experience in the textile business
Mr. Rakesh Biyani, Wholetime Director
Rakesh Biyani, is a commerce graduate and has been actively involved in category
management, retail stores operations, IT and exports. He has been instrumental in
the implementation of the various new retail formats.
Mr. Ved Prakash Arya, Director
Ved Prakash Arya, is an engineer by training and is a graduate of the Indian
Institute of Management, Ahmedabad. Prior to joining Pantaloon Retail, he was the
CEO of Globus.
Mr. Shailesh Haribhakti, Independent Director
Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a
Certified Internal Auditor. He is the Deputy Managing Partner of Haribhakti &
Co., Chartered Accountants and past president of Indian merchant Chambers. He is
on the Board of several Public Limited Companies, including Indian

54
Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc. He is on the
Board of Company since June 1, 1999.
Store management:
Duties and Responsibilities of store manager:
 Management of employees
 Maintaining the sales environment
 Cost minimization
 Recruitment, Training and Development
 Budgeting and Forecasting
 Implementing Marketing plans
 Team Leadership
 Maintaining Leave and Salary Record
 Holding Inventory
 Extending Customer Services

Store security:

 Appointment of uniformed security

 Thorough check at entry and exit points
 Without uniformed security guards can be located in the store

55
  Use of TV cameras can be beneficial to catch the stealers
 Cash deposits in banks must be made frequently
 Brighter lighting should be arranged
 Coordination between all security personnel
 Access to storage areas and ware houses should be restricted
Store record and accounting system:
1. Store functions
2. Pricing of purchased material.
3. Pricing of store returned material.
4. Material received account.
5. Issue of material from store.
6. Physical verification of store stock.

5.2 Layout and design of the store:

Layout:
In today’s competitive environment store design has now become a strategic tool
for differentiating the offerings of the store and retaining customers. Customer’s
perception regarding in-store design has changed. They see shopping as an activity
which gives fun and excitement. Customers like to shop in a changing and exciting
environment. Retailers are developing innovative strategies for store design. Store
design is now become a marketing tool for retailers. Thoughtful design of physical
elements is a significant aspect for communicating store image to customers.
Retailers are giving more attention on creating favourable in store environment for
customers, this requires deep understanding of the target customers.

56
 In retail environment now more systematic attention is been given to efficient
designing of the store which influences the buying behaviour of the customers.
Visual merchandising and store layout are considered as most significant elements
of in-store design. Visual merchandising coordinates stores marketing, positioning
and communication strategy. Thoughtful in-store display creates favourable
appearance of the store for the target customer and attracts them towards products.
Effective display provides easy accessibility of product to target customers and

57
demonstrate the products in a way to make selection process easy for the
customers. Efficient design of the store layout contributes to profitable utilization
of store space. Efficiently designed layout can create enjoying the environment by
providing convenient shopping. Retailers adopt different patterns of store layout to
encourage circulation of the customers to all parts of the store and to provide easy
accessibility of merchandising.

58
The ultimate objective of efficient store design is to increase sales and profit of the
store. Directly or indirectly the elements have some impact on the buying
behaviour of the customers. Visual merchandising is considered to create an
interest in the customers and create a favourable image of the store in the mind of
the customers. Store layout provides convenience to customers and makes
shopping smooth. Retailers always try to create favourable psychological impact
on customers by designing element of the store in most sophisticated way. E.g.
retailers use graphics with social meanings to associate customers with some life
style.
Big Bazaar layout consists of layout of long rows of parallel fixtures, with no aisles
because aisles can be boring they restrict space and can’t be dramatized. At Big
Bazaar, they create multiple cluster or mini-bazaars within every store. It was
designed as an agglomeration of bazaars with different sections selling different
categories’.
 “It uses space efficiently.
 It provides easy sitting of merchandise and linking of the product throughout the
store.
 It allows more customers in the store at any time.
 Allows staff of the store to work easily alongside the customers without
disturbing them.
 Provide self-service atmosphere The structure of Big bazaar at Metro Mall in
Mumbai covers two floors that is basement middle level and first floor.
The basement includes
 Furniture
 Home lein
 Mobile zone
 Star and sitare
 Opticians
 Watches

59
The middle level includes

 Electronic items
The first floor includes

 Men , ladies and kids wear

 Apparels

60
 Foot wear
 Music
 Toys
 Stationary
DESINGS:
Interior design: “The interior of a Big Bazzars comprises of the living space of
the store which includes ceiling, walls, flooring and lighting, fixture and fittings”
The elements of the interior design are selected economically. The general design
of the interior is in uniform with the exterior.

Following are the interior attributes:

 Envelope: the internal structure and decoration of the building that provides
the physical boundaries within which shopping takes place.
 Internal layout: the internal paths customer use are in order to view
merchandise.
 Methods of display: including the fitting and fixtures; their positioning; and
the color and texture are within the product themselves.

61
  Visual merchandising: display of the items on sale together with models,
pictures and other items that illustrate product use or create lifestyle
impressions relating to their use”.

The interior design of Bigbazzar is very vibrant they have a colour combination of
vibrant colors like blue and orange that leave an impression on Indian minds . The
interior of big bazzar is truly designed as Indian hyper market that promises one
stop shoping . It is designed as agglomeration of bazaars with diffrentv sections
selling different categories. The “U” shaped section and islands have proved to be
more appropriate for Indain context than long aisles.

Exterior design: The exterior of Big Bazzar includes ,the exterior of the stores
like the e fascia, entrance of the store, architectural design of the building and
window. The exterior design of Big bazzar is easily visible from the distance and it
can be distinguished from its competitors. The exterior is attractive enough to
encourage customers to enter in to the store. Big bazaar uses harmony between the
elements of the exterior of the store in order to deliver desired store image.
Window display is used as an effective medium to introduce new offerings of the
company, so special attention is given in designing windows of the store. The

62
entrance of the store is designed to welcome shoppers and to provide easy
accessibility.

The external environment of Big Bazzar:

 Big bazzar outlets are located at shopping center, high street or local parade.

The external architecture of Big bazzar building:

 Big bazzar uses a colour combination of Orange and Blue.

 External features such as:
- Car parking.

- Horticulture, sculpture and lighting.

- Other external buildings.

- Outdoors seating, trolley parking and other miscellaneous.

5.3 Visual merchandising:
Visual merchandising at Big Bazaar uses “Store display for promotional purpose,
but as customers are becoming more sophisticated, Big Bazaar has found various
techniques for effective display for providing information and communicating

63
image of the store to the customers, helping them in taking purchase decision and

creating exciting shopping environment” Big Bazaar not only uses visual
merchandising for promoting their product, but they use it as a significant tool for
creating appropriate store environment and influencing purchase decision of
customers.

They use danglers and hoardings at the entrance of the store as this may be a
deciding element in a consumer’s decision to enter a store. It uses various visual
merchandising like it uses remarkable window display for creating a shopping
environment as it creates initiative impression in the mind of customers as window
display also sometimes become a deciding factor whether to enter the store or not .

Retailers develop visual merchandising in order to relate customer’s social life

with the product, arouse their personnel interest for the product. “Retailers can use
combination of elements of in store display; such as color, texture, lighting,
fixtures, graphics, and signage.’’

64
• Visual merchandising is a retail strategy that maximizes the aesthetics of a
product with the intent to increase sales.

• Visual merchandising can also play a role in the look, feel and culture of a brand.

• Done well, it can create awareness while simultaneously increasing brand loyalty.

Elements of visual merchandising:

• Lighting

• Signage and packaging

• Uniform and presentation

• Point of sale material

• Colours, shapes and various textures

65
• Mannequins

• The planogram

• Display (color dominance, coordinated presentation, presentation by price).

Errors in creating display

• Clutter

• Too many props

• Lack of understanding theme

• Dirty floors

• Poor lighting

5.4 Ethics in Retailing:

Ethics is a set of rules for human moral behavior.
For retailers they can have explicit code of ethics or implicit code of ethics.
 Explicit code of ethics: Written policy that specifies what is ethical and unethical
behavior.
 Implicit: Unwritten but well understood set of rules/standards of moral
responsibilities.
Ethical situations in retailing
 Should a retailer sell merchandise that was made using child labour?
 Should a retail buyer accept an expensive gift from vendor?
 Should a retailer treat some customers better than others?
 Should a retailer give preferences to minorities when making promotion
decision?
Ethical and legal issues:

66
1. Consumer Fraud: The defrauding of a consumer of various products and
services which do not perform as advertised, or overcharging or levying hidden
charges through deceptive business practices. Agencies for Protection of Consumer
Fraud - Indian Association Of Consumers (IAC) Consumer Forum (CF) Consumer
Education Society (CES), Karnataka Consumer Services Society (KCSS)
2. Supplier Labour Practices: Legally prohibited action by an employer or
TRADE union such as refusal to bargain in good faith. Case of unfair labour
practices Apple’s supplier labour practices in china scrutinized after Foxconn,
Pegaton reviews
3. Retail Theft: It is also called as Shop Lifting Shoplifting (also known as
boosting, five finger discount, or shrinkage within the retail industry) is theft of
goods from a retail establishment. It is one of the most common crimes. There are
people and groups who make their living from shoplifting, who tend to be more
skilled. Generally, criminal theft involves taking possession of property illegally.
4. Slotting Allowances: A fee paid by a manufacturer to a retailer to provide
shelf space or a slot for a new product. Is a fee charged to produce companies or
manufacturers by supermarket distributors (retailers) in order to have their product
placed on their shelves? The fee varies greatly depending on the product,
manufacturer, and market conditions
5. Use of Customer Information: The consumer information contained here is
intended, in part, to alert the reader to pertinent issues regarding this site. The
information contained herein is not intended as a substitute for professional
consultation.

Reference:
https://www.slideshare.net/mayankschandel1/visual-merchandising-project-of-big-
bazaar
https://www.scribd.com/document/373122781/Visual-merchandising-in-Big-
Bazaar-Retail-Management-Retail-Marketing
https://www.behance.net/gallery/103630545/Visual-Merchandising-Big-Bazaar-
Spring-Summer-2020?tracking_source=search_users_recommended

67
CONCLUSION
Big Bazaar is a major shopping complex for today’s customers. It is a place

where customers find variety of products at a reasonable price. Big Bazaar 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 also likes shopping and moving

around big bazaar. Volume sales always take place in big bazaar. Impulse buying

behaviour of customers comes in to play most of the times in big bazaar.

Different types of products starting from a baby food to pizzas all are

available under one roof. People not only visit big bazaar 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 whether it is for

shopping purpose or for outing purpose. The major significance of big bazaar is

that it providing enough parking spaces for its customers. Even though some

customers say that they feel problem in parking their vehicle.

68
BIBLIOGRAPHY
www.futurebazaar.com
www.futuregroup.com
www.wikimedia.com
www.retailindia.com
www.google.co.in
https://www.slideshare.net/shashankshukla7545/big-bazaar-retailing-strategy
https://www.slideshare.net/writekraftindia/retail-management-big-bazaar-
wwwwritekraftcom-105337684
www.google.com
www.retail.com
https://www.slideshare.net/AsimMahato1/big-bazar-retail-store-management
https://fdocuments.in/document/retail-formats-of-big-bazaar.html
https://www.academia.edu/7108307/
RETAIL_MANAGEMENT_BIG_BAZAAR_Introduction_to_Retail_Industry
www.google.com
https://www.coursehero.com/file/21694428/bigbazr-conclu-recco/
https://vdocument.in/retail-visit-report-of-big-bazaar.html
https://issuu.com/writekraftuk/docs/retail_management_big_bazaar
https://www.uniassignment.com/essay-samples/information-technology
https://www.slideshare.net/mayankschandel1/visual-merchandising-project-of-big-
bazaar
https://www.scribd.com/document/373122781/Visual-merchandising-in-Big-
Bazaar-Retail-Management-Retail-Marketing
https://www.behance.net/gallery/103630545/Visual-Merchandising-Big-Bazaar-
Spring-Summer-2020?tracking_source=search_users_recommended

69