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EXECUTIVE SUMMARY Indian retail sector is witnessing one of the most hectic Marketing activities o f 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 upcom ing 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 a ll 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 through private labels which influen ces customer to purchase a product of Big Bazaar’ helps us to understand the effec t of promotional strategy which is responsible for attracting customer towards b ig bazaar This study helpful to top level management to improve the present prom otional 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 d ata collection approach adopted was experimental research & survey research. The instrument used for the data collection was observation & questionnaire. The ta rget respondents were the visitors of BIG BAZAAR, with the sample size of 100 fo r the study of sales management of the company. Tables & charts were used to tra nslate responses into meaningful information to get the most out of the collecte d data. Based on those the inferences have been drawn with peer supportive data. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 1

INDUSTRY PROFILE INTRODUCTION Retail means selling goods and services in small quantities directly to customer s. Retailing consists of all activities involved in marketing of goods and servi ces directly to consumer for their personnel family and household use. The India n 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 a nd it is witnessing revolution in India. The new entrant in retailing in India s ignifies the beginning of retail revolution. India s retail market is expected t o grow tremendously in next few years. According to AT Kearney, The Windows of O pportunity 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 tremendo usly in next few years. India shows US$330 billion retail market that is expecte d 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 r etailers, because now India is in peaking stage. Sector details 1. Introduction to retail industries. 2. Retail word is derived French word retailer means to cu t off a piece. 3. Retailing includes all the activities involved in selling good s or services to the final customer for personnel or non-business use. 4. Superm arket is a retailing of a wide variety of consumer products under one roof, ampl e stock, stock of several brands & extended business hours. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 2

 

 

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 reasona ble price than its competitors. Retailing and whole selling consist of many orga nizations designed to bring goods and services from the point of production to t he point of use. Retailing includes all the activities involved in selling goods or services directly to final consumers for their personal, non-business use. R etailers can be classified in terms of store retailers, non-store retailing, and retail organizations. Store retailers include many types, such as specialty sto res, department stores, supermarkets, convenience stores, superstores, combinati on stores, hypermarkets, discount stores, warehouse stores, and catalog showroom s. 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 di rect selling (door-to-door, party selling), direct marketing, automatic vending, and buying services. Much of retailing is in the hands of large retail organiza tions such as corporate chains, voluntary chain and retailer cooperatives, consu mer 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 manufactur ers, must prepare marketing plans that include decisions on target markets, prod uct assortment and services, store atmosphere, pricing, promotion, H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 3

bulk-breaking. Growth rate of retail sector in India is 8-1 0% per annum. Wholesalers perform many functions. supplying market information. industrial distributors) and limited-service wholesalers (cash-and. new retail technologies. Manufact urers and retailers branches and offices are wholesaling operations conducted by non-wholesalers to bypass the wholesalers. Wholesalers. and auction compan ies. and polarity o f retailing.1 billion in 2003 to over US $8. Wholesalers who fail to carry adequate assortments and inventory and provide satisfactory service are likely to be bypassed by manufacturers. CURRENT SCENARIO India rank first in terms of emerging market potential in retail sector. finan cing. producers cooperati ves. and place. and providing management servi ces and counselling. Merchant wholesalers tak e possession of the goods and include full-service wholesalers (wholesale mercha nts. and many others. must make decisions on their target market.6 billion in 2010. 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. drop shippers. Wholesalers fall into four groups. including selling and promoting. too. Miscellaneous wholesalers include agricultural assemblers. Progressive wholesalers.And place. promotion. increasing intertype competition. transporting. on the other hand. Wholesalers help manufacturers deliv er their products efficiently to the many retailers and industrial users across the nation. Retailers are showing strong signs of improving their professional ma nagement and their productivity. Current retail market is US $ 215 billion. buying and assortment-building. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 4       .carry w holesalers. rack jobbers. and mail-order wholesalers). petroleum bulk plants and terminals. Near about 12 million retail outlets are spread across India. product assor tment and services. warehousing. FDI in retail sector increases from US $ 3. pricing. truck wholesalers. risk bearing. Agents and brokers do not take possession of t he goods but are paid a commission for facilitating buying and selling. new retail forms. in the face of such trends as shortening retail life cycles. are adapting marketing concepts and streamlining their costs of doing business.

the organized retail accounts for only $8 billion of total rev enue. changing lifestyles. Spencer network has 69 stores. Unorganized retailing has been there in India for centurie s. Of this. General Merchandise Retailers. The organized sector is ex pected to grow faster than GDP growth in next few years driven by favorable demo graphic patterns. three Spencer H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 5   . has very low real estate and labor costs and has low taxes to pay. In India. This organized retail sector mix includes supermarkets. the pure retailer is starting to emerg e now. departmental stores. And it also gives 8% Employment to the co untry annually. Service Retailers. accounting for about 10% of GDP. the most of the retail sector is unorganized. and strong income growth. the retail business contributes around 10 percent of GDP. w hich includes seven Spencer hypermarkets. In organized retailing will grow faster than un organized sector and the growth speed will be responsible for its high market sh are. The main advantage in unorganized retaili ng is consumer familiarity that runs from generation to generation.e. Food Retai SECTOR DETAILS In India. the organize d retail sector accounts only for about 5 percent share. It is a low cost structure. For example. and the expected annual growth rate is 5% per annum and remaining share is contributed by the unorganiz ed sector. The total in 2005 stood at $225 billion. they are mostly operated by owners. which is expected to be $ 17 billion by 2010-11. Retailing is being perceived as a beginner and as an attractive commer cial business for organized business i. The main challenge facing the organized sector is the competition fro m unorganized sector. According to A T Kearney. hypermarkets discounted stores and spec ialty stores. the organized retailing is expected to be more t han $23 billion revenue by 2010. theses are named as mom-pop stores.TYPES OF RETAILERS Retailers are broadly classified into 3 categories lers. In t his total market. In late 1990 s the retail sector has witnessed a level of transf ormation. Organized retail business in India is very small but has tremendous scope .

The top 10 retailers account only for 2% of total market. These key factors have been the growth dr ivers of the organized retail sector in India which now boast of retailing almos t all the H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 6 . within next five years. nuclear fam ilies in urban areas. Low share of organized retailing 2.super markets and 49 Spencer Daily’s. Falling real es tate prices 3. hefty pay packets. The retail sales in India for future are shown below (data from 2005-2008 is based on estimates) The trend in the Industry 1. today modern retailing is expected to enter a boom phase. which has majo r players and these players might capture 10% of total market. In India. along with increasing workingwomen population and emerging opportunities in the services sector. Now the company is planning to open 20 store s in 10 cities in six months. 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 in crease in the young working population.

The other i mportant participants in the Indian Retail sector are Bata. International Brand Outlets. hypermarkets. The inception of the retail ind ustry dates back to times where retail stores were found in the village fairs. Pantaloo ns.Apparel & Accessories. With the government intervention the retail industry i n India took a new shape. Outlets for Public Distribution System. Home & Office Products. Hyper city D Mart Big bazar Spencer’s. The maturity of the retail sector took place with the establishment of retail stores in the locality for convenience. Cosmetics and Toiletries. These stores were highly unorganized. Cafe Coffee Day. Existing competition Reliance fresh. Appliances. Such companies are basically IT based. leaving behind the kira nas that served us for years. M ela’s or in the weekly markets. Big Bazaar. Khadims. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 7 . The untapped scope of reta ling has attracted superstores like Wal-Mart into India. to name a few. EVOLU TION OF INDIAN RETAIL INDUSTRY Indian Retail Industry is standing at its point o f inflexion.preferences of life . These retail Stores demanded low investments for its establishment. With t his the retail sector in India is witnessing rejuvenation as traditional markets make way for new formats such as departmental stores. Archies. Cooperative st ores and Khadi stores were set up. landmark. shop ping malls and departmental stores. supermarket s and specialty stores. waiting for the boom to take place. Electronics. Travel and Leisure and many more. Hyper or Super markets. Crossword.

rising incomes. Industry of retail in India which have become modern can be seen from the fact that there are multi . with a n employment of around 8% and contributing to over 10% of the country s GDP. India retail industry is e xpanding itself most aggressively. India retail industry is one of the fastest growing industries w ith revenue expected in 2007 to amount US$ 320 billion and is increasing at a ra te of 5% yearly.stored malls. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 8   .200 billion. shopping.RETAILING IN INDIA: A FORECAST Future of organized retail in India looks bright. huge shopping centers. India may have 600 new shopping centers. Shopping in India has witnessed a revolution with the change in the consumer buy ing behavior and the whole format of shopping also altering.5 billion by 2010 from the current size of U S$ 7. changing lifestyles. Ret ail industry in India is expected to rise 25% yearly being driven by strong inco me growth. Indian retailers preferred means of expansion is to expand to ot her regions and to increase the number of their outlets in a city. and sprawling complexes which offer food. It has further been predicted that the retailing indu stry in India will amount to US$ 21. It is expected that by 2016 modern retail industry in India will be worth US$ 17 5. and favorable demographic patterns. as a result a great demand for real estate is being created. It is expecte d that by 2010. and a steep rise in rural consumption.5 billion. INDIA: A Hot Spot India retail industry is the largest industry in India. A further increase of 7-8% is expected in the industry of retai l in India by growth in consumerism in urban areas. It will capture a share of 10% of the total retailing by the end of 2011. and entertainment all under the same roof. According to recent researches it is projected to grow at a rate of about 37% i n 2007 and at a rate of 42% in 2008.

This has also con tributed to large-scale investments in the real estate sector with major nationa l and global players investing in developing the infrastructure and construction of the retailing business. Consume r preference for shopping in new environs influences of The Internet revolution is making the Indian consumer more accessible to the gro wing domestic and foreign retail chains. About 47% of India s population is under the age of 20.In the Indian retailing industry. As the cont emporary retail sector in India is reflected in sprawling shopping centers. Channels are helping in creating awareness about global products for local marke ts. which is technology-savvy.branded items. and display the highest propensity to spend. Growth drivers in India for retail sector Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. and this will increa se to 55% by 2015. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 9     . This young population. Liberalization of the Indian economy Increase in spending Per capital Income. Availability of quality real estate and mall management practices Foreign compan ies attraction to India is the billion-plus population. entertainment and food all under one roof. the concept of shopping has altered in terms of format and consumer b uying behavior. etc. Panasonic. ushering in a revolution in shopping in India.malls and huge complexes offer shopping. Ad vent of dual income families also helps in the growth of retail sector.V. watch more than 50 TV satellite channels. Since at pres ent 60% of the Indian grocery basket consists of non. mult iplex. Reach of satellite T. food is the most dominating sector and is grow ing at a rate of 9% annually. Shift in consumer demand to foreign brands like McDonalds. The branded food industry is trying to enter the I ndia retail industry and convert Indian consumers to branded food. Sony. will immensely contribute to the growth of the retail sector in the country.

Manipal Healt hcare. futurebazaar. Nex t and Guess in India. a first of its kind seamless mall located in the heart of majo r Indian cities. Debenhams. like choice. All (fashion apparel for plus-size individuals). music.com. Food Bazaar. it launched Big Bazaar. Big Bazaar. E-Zone (consumer electronics). Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail c hain.COMPANY PROFILE Pantaloon Retail (India) Limited.019 crore for FY 2007-0 8 It owns and operates multiple retail formats including Pantaloons. a hypermarket chai n that combines the look and feel of Indian bazaars. a group company owns the franchisee of international brands like Marks & Spencer. Shoe Fa ctory (footwear) and Blue Sky (fashion accessories). Some of its other formats include. Pantaloon Retail was select ed as the Best of Best Retailers in Asia by Retail Asia-Pacific Top 500 magazine in 2006. Lee Cooper. Planet Retail. The group also has joint venture companies with a nu mber of partners including French retailer Etam group. The group s subsidiary companies include. Gini & Jony and Liberty Shoes. food and grocery chain an d launch Central. has over 331 stores across 40 cities in India and employs over 17 . the company operates through 5 million square feet of retail space. Depot (books. It has recently launched it s retailing venture. Central. Home Solutions Retail India Ltd. with aspects of modern reta il. convenience and hygiene. In 2001.000 people. Pantaloon Industries Ltd. EZone. Jaywalker’s. Food Bazaar. followed this. Headqua rtered in Mumbai (Bombay). Pantaloon Retail is listed on BSE and NSE with a turnover of Rs 2. gifts and stationary). is India s leading retail company with presenc e across multiple lines of businesses.018 crores for financial year ended 2007-08. Depot and many others. Pantaloons in Kolkata. Collection i (home improvement products). Galaxy Entertainment and Indus League Clothing. The company owns and manages multiple ret ail 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. The company registered a turnover of Rest 2. Future Group H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 10     . Fashion Station.

Hyderabad. Coimbatore. focuses on asset management and consumer finance. Bhubaneswar. Bangalore .Pantaloon Retail is the flagship enterprise of the Future Group. Kanpur. Lucknow. Panipat. the head of Pantaloon Retail India Ltd. Mangalore. Kolkata. create new opportuniti es and new successes. Asansol. "Deliver Everything. beauty. write rules yet unwritten. strength. Vishakhapatnam. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 11         . Ahmadabad. our ability to evolve. Future Space (management of retail re al estate). Future Group Manifesto “Future” – the word which signifies optimism. Future encourages us to explore areas yet unexplored. It works on same the economy model as Wal-Mart and has had conside rable success in many Indian cities and small towns. Nagpur." One of the core va lues at Future Group is. Delhi. Futur e Capital (financial products and services). Ghaziaba d. The idea was pioneered by e ntrepreneur Kishore Biyani. Big Bazaar i s a chain of shopping malls in India currently with 29 outlets. unlearn and re-learn. Future Capital Holding s. Future Brands (management of all br ands owned or managed by group companies). Everywhere. The Future Group operates through six verticals: Future Retail (encompassing all retail businesses). Cities where stores are located are : Agra. Indore. Indecision. Indian’s and its corporate credo is Rewrite rules. Rajkot. which is positi oned to cater to the entire Indian consumption space. Surat. Every time to Every Indian Consumer in the most profitable manner. Durgapur. It manages two real estate investment funds (Horizon and Kshitij) and consumer-r elated private equity fund. Chennai. con sumer credit and other consumer-related financial products and services in the n ear future. achievement. Thane. Future Logistics (management of supply chain and distribution) and F uture Media (development and management of retail media). our ability to learn. It also plans to get into insurance. owned by the Pan taloon Group. Gurgaon. Future Group s vision is to. Thiruvananthapuram. Reta in values. the group s financial arm. Ambala. Mumbai. growth . To strive for a glorious future brings to us our strength. Pune. Palakkad. rewards and perfection. Nasik . Allahabad.

Big Bazaar plans to add much more to complete customer s shopping experience. c utlery. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 12 .that’s what Big Bazaar guarantee.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 proposi tion for the Indian customers. utensils. With the ever increasing array of private labels. sports goods and much more at prices that will surprise customer. And th is is just the beginning. At Big Bazaar. it has opened the doors into the world of f ashion and general merchandise including home furnishings. customer will definitely get the b est products at the best prices -. crockery.

18002002255. 400101. Cosmetic. Ph: +912267593600. Garments. Fu rniture etc. Electronic. 1800223050. This store is of 2 flour and divided into 2 levels based on the nature of produc ts. Kandivali (e). Mumba i.Store study Big Bazar 101 Growel plaza. As t his store is big enough with 2 levels and 21 departments has long product range and product depth. Ones a customer get inside the store they will find all kinds of products available that may be Food item. There are 21 departments in this store and 120 Human Resource employed. Akurli Road. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 13 . Because of these features it has a very good reputation in that are a and customers who are residing far away and in other areas they also visit the store. Off Western Express Highway.

which have to be achieved with in the assigned period that may be of Daily. Security etc. Hard tag 2. They look after customer’s orders delivery post sale service if any etc. Departmental Managers There are 24 departments in this store l ike Electronic dept. Footwear Dept. Star sitar Dept. NBD dept. Each department will be assigned with targets. Furniture Dept. House Keeping. Soft tag 3. Depot dept. Weekly. and Home Décor Dep t. Store manager has to c ontrol all the activities within the store. He has to communicate all the depart mental managers and assistance departmental managers regarding any new offers. They have 3 types of tags 1. Administration Store administration comes under Store Manager its func tions are store maintenance. S tring tag These tags will be attached to the materials. PUC Dept. monthly and yearly. Sore manager has to see the operation at the store i s being H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 14 . All Dept managers ADM.SECURITY MEASURES They have loss prevention cell (LPC) that will be looking after the safety measu res in the organizations. Men’s Dept. 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 store. If any person will take that witho ut paying bill some process will be taken by the LPC. They have to report periodically the performance of the department to the store manager. Team members work under coordination & cooperation. r egarding their targets etc. Mobile Bazaar Dept. Their job is concerned mainly wit h sales. Each de partment has a department Manager & Assist DM. 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. Ladies Dept.

It acts to organize the manpower and work to increase produc tivity of the employees.e. The executives arranges rally’s Visual Merchandise Th is department is responsible for the product arrangement at the store with respe ct to their nature. If there is any problem with the machine then this department comes into func tion. The sales amount collected throughout the day by the cas hier’s has to be submitted to this department. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 15 . Cashing Dept This department is responsible for the collection of sales am ount i. Customer assistance etc. Performance appraisal of t he employees. Newspaper. Information Technolo gy This department is responsible for the maintenance of the systems of the stor es. Training and development. Human Resource Human Resource basically works for the welfar e of the employees. Hiring.performed in coordination and cooperation he has to communicate with the corpora te office regarding any changes being applied at the store. C SD (Customer Service Desk) This is the separate unit. All billing machines their functioning networking with the master machine et c. C ustomer complaints any replacement. which is mainly focuses on customer service like if the customer find difficulty in finding any product. Basically Human Resource performs the functions of Recr uitment. Induction. Marketing This dept is responsible for the marketing of the store in different media like Television. the authorized person has to visit different companies and has t o look after for tieups etc. cash sales. Human Resource studies and involves in inter life cycle of the emp loyee from his joining the organization to till his end from the organization. etc under this department all billing machin es of the stores comes. Credit sales. an d Holdings etc. The basic function of this dept is it divides the store into several departments based on the nature of the product and within the departmen t it decides how the products should be arranged by keeping in mind the customer should not suffer.

hold down inventories and improve cust omer service – all at the same time.Importance of Supply Chain and Logistics Management One of the most important challenge in organized retail in India is faced by poo r supply chain and logistics management.5% by just improving the supply chain and logistics management. effective and cost effi cient manner possible. transp ortation. Logistics regards order processing and fulfilment. i ncluding potential levies for delays in shipment. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 16 . Third Party Specialists like Shippers. Ret ail analysts say on-time order replenishments will become even more critical onc e the Wal-Mart/ Bharti combine begins operations . Order Fulfilment House etc. It comprises all of the parties that participate in the retail logistics pr ocess: Manufacturers. If a logistics system works well. The supply chain management is logistics aspect of a value delivery ch ain. customer service and inventory management as interdepende nt functions in the value delivery chain. It is expected to reach $120$130 million by 2010. Therefore.Even supply chain and logistics firms like Hong Kong based Heng Tai Consumables and ABS Procurement Co and ACM C hina (the greenhouse specialist) is also eying the opportunity for managing the supplies. Here. vehicles transferring produ cts back and forth. It oversees inventory management decis ions as items travel through a retail supply chain. implementing and coordinating the physical movement of merchandise fro m manufacturer to retailer to customer in the timeliest. Logistics and Supply Chain enables an organiz ed retailer to move or store products more effectively. and the Retailer. the logistics market for organised reta il is pegged at $50 million and is growing at 16%. but also frees up storage space for more productive use. Organised retail on the other hand is growing at 400% and is expected to reach around $30 billion by 2010.5% of the total retail price. In India. Wholesalers. warehousing. The importance can be understood by the fact that the logistics management cost component in India is as high as 7% -10 % against the global average of 4% . logistics is the total process of planning. Efficient logistics mana gement not only prevents needless movement of goods. with demand for end-to-end logi stics solutions far outstripping supply.the American retailer works a lmost entirely on cross-docking and is likely to demand higher service levels. the retail firm reduces stock outs. th e margins in the retail sector can be improved by 3% .

Depot. to reach a targeted tu rnover of about Rs. it is benefic ial for both the manufacturer as well as the retailer.700 crore by 2010. Future Brands ( all brands owned or managed by group companies).200 vendors online. Pantaloon Retail (India) Limited operates over 5 million sq uare feet through 450 stores in 40 cities. Future Space (management of ret ail real estate).futurebazaar. If we go through the foll owing food supply chain in India. the company is now looking to offer its services to it s 1000-odd vendors. to ach ieve economies of scale. Future Capital (financial products and services). three weeks inventories are kept. Going further in th is direction. However. Future Group is working on the vendor network as well as the logistics network. www. The group s flagship company. EZone. The company has identified up to 40 anchor vendors. sensing immense opportunity in this area. The company is also worki ng towards bringing its 1. It operates through six verticals: Future Retail (encompassing all lines of ret ail business). Pantaloons. Generali. Some of its leading retail formats in clude.The thrust at present will H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 17             . Future Logistics (management of supply chain and distribution) and Future Media (development and management of retail media spaces). Blue Foods and Liberty Shoes. each with turnovers of US$45 million. Now. it s nine days and it s under two weeks for Food Bazaar. the Future Group has also launched Future Logistics initially aime d at handling the supply chain logistics of the group. spread across consumer related goods. Food Bazaar. In India. while in a modern retail store like Hyper c ity. like Wal-Mart. to be able to pass on the benefits of scales. Big Bazaar. Central. He alth & Beauty Malls and online retail format. we find that a lot can be improved by maintain ing the supply chain and logistics. Staples and UK-based Lee Co oper and India-based Talwalkar s.The efficiency and effectiveness of supply chain and logistics management can al so be understood by the fact that m modern retail stores maintain lower inventor ies than traditional retail. The group is also keen to ensure that its smaller vendo rs are able to reach turnovers of around US$1 million and a growth rate of 40% a nnually.com. The group s joint venture partners include Italian insurance major. French retaile r ETAM group. US-based stationary products retailer. Future Group Future Group is the country s l eading retail business group that caters to the entire Indian consumption space. Home Town. generally in the traditional kirana store s.

sea and air modes might also be considered as per the requirement. real time data management and reporting. avoiding the exploitative suppl ier – buyer transactional philosophy. Com pany’s supply chain was split into the broad categories of fashion. This reduces wastage and can lead to significant cost savings. However. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 18 . as well as strategic alliances with other companies.be on modes of surface transport like roads and rail only. Future group derives significant economies of scale in managing their supply chain. said so urces. as well as optimum operational ef ficiencies. the company maintains a str ong supplier relationship in a partnership mode. On the technology front. better customization of logistic and supply chain related needs. food and gener al merchandise. The company had one MDC and 16 RDCs and DCs The company has also appointed leading international and domestic players i n the warehouse infrastructure and technology front. With more than 170000 products. Further. RDCs and DCs are live on SAP. the process of gradually integrating them have either been completed or close to com pletion. thereby facilitating standardiza tion. The IT enabled back-end operations and suppl y chain management increases the reliability and efficiency of the business. at a later s tage. leading to a more focused approach to businesses. all t he existing MDCs. with new concepts and lines of business being inc luded during the year. 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. In India. improved servi ce levels. The existing supply chain design consists of a Master Distribution Cent re (MDC) and city warehouses upgraded to Regional Distribution Centers (RDCs) an d additional Distribution Centers (DCs). and finally deliverables.

Though the public generally us ed to see them as low-cost imitations of branded products. who have to compete against their own customers (the retailers) for market share. while beneficial to retailers and consumer s. As such.PRIVATE LABEL Private label describes products manufactured for sale under a specific retailer‘s brand. retailers are able to purchase private label goods for much less than they would have to pay for comparable branded products. The cost difference is usually large enough that retailers can offer customers lower pric es while still making higher profit H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 19       . private labels have become increasingly more accepted by the public as quality has increased and retailers have expanded their offerings of p rivate label goods. offering cu stomers a cheaper alternative to national brands. They are often designed to compete against branded products. which are often significantly less than those of national brands. though this is just one example of many. Impact of Private Label Brand Loyalty National brands are sold all over. This can give retailers a significant advantage ove r competitors. driving the seg ment s rising popularity. which can foster a feeling of brand loyalty. The mos t commonly known private label goods are the “store brands” sold by food retailers. Privat e labels offer several benefits to both retailers and customers. Retailers can capitalize on this shift i n public perception by offering quality private label products. and office supply retailers all offer private label products or services. Though they used to be seen as knock-offs of "name brands". margins on private label goods are an a verage of 10% higher than those on similar branded products. so there s no real sense of brand loyalty in terms of where consumers buy them. Customers benefit f rom private labels lower prices. there is the possibility for retailers to cultivate a sense of brand loyalty. Lower Prices/Higher Margins Private label goods are generally muc h cheaper to produce than branded goods. electronics stores. due to the lack of advertising and mark eting expenses. can put substantial pressure on the manufacturers of branded goods. For retailers. Many consumers now seriously consider private labels as acce ptable alternatives to national brands. Department stores. private labels have o vercome this reputation and achieved significant growth in recent years. Because privat e labels are unique to one retail chain. This combination.

toast. with retailer s not only becoming less dependent on manufacturers for product offerings but ac tually making manufacturers dependent on them for sales volume. “One is that private brands give us far higher margins. It has now added breakfast cereals to the range.” The market for breakfast cereals is still small. The bre akfast cereals will be available in three variants — plain cornflakes. jams. pasta. But the market is growing fast. vermicelli. khari. Not surprisingly. Tasty Treat is growing at about 70 pe r cent. Lower prices can be enticing to customers and increase a sto p on a product s way from the manufacturer to the consumer. While the packaged food market is valued at Rs 33. Devendra C hawla. pickles. the organised breakfast cereal market is just Rs 2 50 crore — less than one per cent. promoted by Ki shore Biyani. In a recent development.234 crore. Retailers are now be coming increasingly established as brands themselves. especially the urban middle class. soups. This perhaps has given Big Bazaar the confidence to try its luck in brea kfast cereals as well. has come out with a breakfast cereal range under its private label. This has resulted in a growing shift in the balance of power between retailers and manufacturers. Some other multinational players have also shown keen interest in this market. chocolate-f lavoured Choco Gols and honey-flavoured Honey Circles. Heinz India. There are two reasons for launching the product. papads. Tasty T reat. namkeens. the hypermarket of Pantaloon Ret ail.margins themselves. given the growi ng health consciousness in the country. Kello ggs monopolises the market for breakfast cereals with its range of flakes. has boycotted Kelloggs at all its retail formats for turning down its demand for higher margins. says Pantaloon Retail’s head of private brands. ketchup and fruit bev erages under the brand. whic h has a hugely strong bond with households because of its Complan health drinks. Pantaloon Retail. PepsiC o has already entered with its bestseller brand. marketing their private la bel products as alternatives to national brands. Big Bazaar already sells noodles. Private label product at Big Bazaar Big Bazaar. carbonated drinks. Quaker Oates. and the second is t hat cornflakes as a category is under-penetrated and has a lot of scope to grow. too has joined the bandwagon. chip s. Big Bazaar is H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 20   . In spite of the presence of a large number of pla yers in the branded packaged food segment.

According to Chawla.” says Chawla. A while back Cadburys and PepsiCo owned snack food brand Frito Lay had to bear the brunt. “We have the optio n of pricing it lower as we don’t have to pay intermediaries and can pass on that advantage to consumers. the cornflakes brand will be p riced at Rs 99 along with a free bowl worth Rs 60.pushing its own brand of cornflakes now. As an introductory offer. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 21 . the bran d will provide 10 to 15 per cent value when compared to rivals. This is not the first time Big Bazaar i s doing this.

OBJECTIVE OF THE PROJECT To know the consumers perception and attitude toward private label of Big Bazar. To know the relationship between promotional strategy and buying decision. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 22 .

There is also a use of secondary data. secondary data and primary data. Primary data has been used abundantly for the study. Well-structured questionna ires were prepared & the survey was undertaken. and websites & from company managers. collected from the various journal s. books. Primary data Secondary data Fiel d Survey Big Bazaar records Text Books and journals Company Websites Area of res earch: Research approach: Kandivali (Mumbai) Survey method H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 23 .Data Collections Methods Market research requires two types of data i. Feedback for the display has bee n taken by asking questions & observation has also done to gather primary inform ation.e.

Sampling Sample size Sampling Method Sample Unit Measuring Tool : 100 respondents : Random Convenience sampling : Customer o f Big bazaar : Questionnaire H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 24 . all the functional Departments o f 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 s tudy is Random Convenient Sampling.Sampling Method Since the study is restricted to Retail sector.

Most of the customers are given 1st pr eference to Big Bazaar compare to other retailers H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 25 . from 100 respondents.ANALYSIS AND FINDINGS Q No 1: Which store first comes to your mind when you think of purchasing a prod uct? Ans: Big Bazar D Mart Reliance fresh other outlets 70 60 50 40 30 20 10 0 Big Bazar D Mart Reliance fresh other outlets ANALYSIS: From the survey. 61% of them gave 1st preference to Big Bazaar 15% of them gave preference to D Mart 19% were gave to Reliance F resh and only 5% gave to other retailer .

2) From which source did you come to know about Big Bazaar outlet. Ans: ertisement Hoardings News paper Buspaintings 40 35 30 25 20 15 10 5 0 T . H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 26 T .V Adv . 2 3% of them come to know about Big Bazaar through TV advt.. among 100 respondents.V Advertisement Hoardings News paper Bus paintings ANALYSIS: From the above graph i can come to know that. 31% of them through news paper . and 12% came to know through bus painting Hoarding is the most influencing factor which is respo nsible for awareness of Big Bazaar. 34% of the respondent s told that through Hoardings.

87% of them they are aware of promotional offers. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 27 . 87% of customers are aware about pr ivate labels of the big bazaar. 13% told they have told that they are not aware.3) Are you aware about private labels of big bazaar? Ans: 100 90 80 70 60 50 40 30 20 10 0 Yes No ANALYSIS: Yes No Among the 100 respondents.

An s: Offer Service Quality Availability of products 60 50 40 30 20 10 0 Offer( PL) Service Quality Availability of products Analysis Among 100 respondent 51% of customer they have told that they are attra cted 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 Most of the people attracted towards big baza ar only from the Private Labels.4) Please choose below the factor which attracted you most at the Big Bazaar. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 28 . So offer is the most influencing factor among t hose.

5) Looking at the private labels of Big Bazaar does your purchase pattern change s? Ans: Yes No 90 80 70 60 50 40 30 20 10 0 Yes No ANALYSIS: Among 100 respondent 83 of them told that these private labels concept changes their purchase pattern and only 17 of them told do not change. Most of the customer believed that promotions is responsible for their purchase decision H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 29 .

only 13% of them told that they are not aware of Private Labels of big bazaar . H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 30 . Among 100 respondents. Among the 100 respondents.SURVEY FINDINGS From the sample size of 100 samples it is found that the Brand is well positione d in the minds of customers because 77% of the respondent’s preference is Big Baza ar for their shopping. 23% of people told that 1st they c ame to know through T V advertisement and 34% of people told that through hoardi ngs 31% of them told that through news paper and finally 12% of them highly agre e that through bus painting. 87% of them told that th ey are aware about Private Labels of big bazaar . Among the 100 respondent 51% of them told that they are attracted towards big bazaar only for the offers ie: Pr ivate Labels 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.

Recommendations Big bazaar should keep offers in regular intervals so that there long term gap. because offer is the most influencing factor which e for customer purchase decision. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 31 should not be a is responsibl T V advertisement in two langua . Hoarding should be placed uncovered area. And they also concentrate on they should show ads and promotional offers in a regular interval ges like Hindi English.

that advantage goes to “BIG BAZAAR”. It has brought about many changes in the buying habits of people. It has created formats.CONCLUSION Indian retail sector is witnessing one of the most hectic Marketing activities o f all times. There is always a ‘first mover advantage’ in an upcom ing sector. In India. H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 32 . which famous as Less Price than others as it says ‘Nobody Sells Cheaper and Better!’ is made its place in minds of customer. Among them sales Promotions is one o f the leading activity or unique among all other activities & has high influence on the customer walk-in. To attract more customers companies have to carry o ut the promotional activities in unique way. As the competition is becomin g stiff in the market the activities conducted by the company are unique. that h ave brought fruitful result to the company. The companies are fighting to win the hearts of customer who is God said by the business tycoons. BIG BAZAAR has maintained that uniq ueness & has succeeded in attracting customers. which provide a ll items less than one roof at low rates. The private label concept of the company. 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 th em from that of competitors.