78478910 Big Bazar Final

8/3/2019 78478910 Big Bazar Final

1/33

EXECUTIVE SUMMARYIndian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are fighting to win the hearts of customer who is Godsaid by the business tycoons. There is always a first mover advantage in an upcoming sector. In India, that advantage goes to BIG BAZAAR. It has brought about manychanges in the buying habits of people. It has created formats, which provide all items under one roof at low rates, or so it claims. In this project, we will

study its marketing strategies and promotional activities. The research titled AStudy on the effective promotional strategy through private labels which influences customer to purchase a product of Big Bazaar helps us to understand the effect of promotional strategy which is responsible for attracting customer towards big bazaar This study helpful to top level management to improve the present promotional strategy of BIG BAZAAR. The report deals with the impact of promotionalactivity which attracting customer towards big bazaar. The research was carriedout as per the steps of Marketing Research. The well supportive objectives wereset for the study. To meet the objectives primary research was undertaken. The data collection approach adopted was experimental research & survey research. Theinstrument used for the data collection was observation & questionnaire. The target 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 translate responses into meaningful information to get the most out of the collected data. Based on those the inferences have been drawn with peer supportive data.

H K INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

1

8/3/2019 78478910 Big Bazar Final

2/33

INDUSTRY PROFILE INTRODUCTIONRetail means selling goods and services in small quantities directly to customers. Retailing consists of all activities involved in marketing of goods and services directly to consumer for their personnel family and household use. The Indian retailing industry is becoming intensely competitive, as more and more payersare Vying for the same set of customers. The major retail players are PantaloonRetail, 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 signifies the beginning of retail revolution. India

s retail market is expected to grow tremendously in next few years. According to AT Kearney, The Windows of Opportunity shows that Retailing in India was at opening stage in 1995 and now itis in peaking stage in 2006. India

s retail market is expected to grow tremendously in next few years. India shows US$330 billion retail market that is expected to grow 10% a year, with modern retailing just beginning. India ranks first in2005. In fact, in 2005 and 2006, India is the most compelling opportunity for retailers, because now India is in peaking stage. Sector details 1. Introductionto retail industries. 2. Retail word is derived French word retailer means to cut off a piece. 3. Retailing includes all the activities involved in selling goods or services to the final customer for personnel or non-business use. 4. Superm

arket is a retailing of a wide variety of consumer products under one roof, ample stock, stock of several brands & extended business hours.


2

8/3/2019 78478910 Big Bazar Final

3/33

HISTORY OF RETAILINGRetail concept is old in India. Worlds first departmental store started in Rome.Todays kirana stores are based on Manusmriti & Kautilyas arthshastra. Haats, Melas, Mandis & door to door salesmen are traditional Indian retail. Vishal Mega Martis a retail sector, which is providing good quality of products in very reasonable price than its competitors. Retailing and whole selling consist of many organizations 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 goodsor services directly to final consumers for their personal, non-business use. Retailers can be classified in terms of store retailers, non-store retailing, andretail organizations. Store retailers include many types, such as specialty stores, department stores, supermarkets, convenience stores, superstores, combination stores, hypermarkets, discount stores, warehouse stores, and catalog showrooms. These store forms have had different longevities and are at different stagesof the retail life cycle. Depending on the wheel-of-retailing, some will go outof existence because they cannot compete on a quality, service, or price basis.Non-store retailing is growing more rapidly than store retailing. It includes direct selling (door-to-door, party selling), direct marketing, automatic vending,and buying services. Much of retailing is in the hands of large retail organiza

tions such as corporate chains, voluntary chain and retailer cooperatives, consumer cooperatives, franchise organizations, and merchandising conglomerates. Moreretail chains are now sponsoring diversified retailing lines and forms insteadof sticking to one form such as the department store. Retailers, like manufacturers, must prepare marketing plans that include decisions on target markets, product assortment and services, store atmosphere, pricing, promotion,


3

8/3/2019 78478910 Big Bazar Final

4/33

And place. Retailers are showing strong signs of improving their professional management and their productivity, in the face of such trends as shortening retaillife cycles, new retail forms, increasing intertype competition, and polarity of retailing, new retail technologies, and many others. Wholesaling includes allthe activities involved in selling goods or services to those who are buying forthe purpose of resale or for business use. Wholesalers help manufacturers deliver their products efficiently to the many retailers and industrial users across

the nation. Wholesalers perform many functions, including selling and promoting,buying and assortment-building, bulk-breaking, warehousing, transporting, financing, risk bearing, supplying market information, and providing management services and counselling. Wholesalers fall into four groups. Merchant wholesalers take possession of the goods and include full-service wholesalers (wholesale merchants, industrial distributors) and limited-service wholesalers (cash-and- carry wholesalers, truck wholesalers, drop shippers, rack jobbers, producers

cooperatives, and mail-order wholesalers). Agents and brokers do not take possession of the goods but are paid a commission for facilitating buying and selling. Manufacturers

and retailers

branches and offices are wholesaling operations conductedby non-wholesalers to bypass the wholesalers. Miscellaneous wholesalers includeagricultural assemblers, petroleum bulk plants and terminals, and auction compan

ies. Wholesalers, too, must make decisions on their target market, product assortment and services, pricing, promotion, and place. Wholesalers who fail to carryadequate assortments and inventory and provide satisfactory service are likelyto be bypassed by manufacturers. Progressive wholesalers, on the other hand, areadapting marketing concepts and streamlining their costs of doing business.

CURRENT SCENARIOIndia rank first in terms of emerging market potential in retail sector. Currentretail market is US $ 215 billion. Growth rate of retail sector in India is 8-10% per annum. Near about 12 million retail outlets are spread across India. FDIin retail sector increases from US $ 3.1 billion in 2003 to over US $8.6 billionin 2010.


4

8/3/2019 78478910 Big Bazar Final

5/33

TYPES OF RETAILERS Retailers are broadly classified into 3 categories Food Retailers. General Merchandise Retailers. Service Retailers.

SECTOR DETAILS In India, the most of the retail sector is unorganized. In India,the retail business contributes around 10 percent of GDP. Of this, the organized retail sector accounts only for about 5 percent share, and the expected annualgrowth rate is 5% per annum and remaining share is contributed by the unorganiz

ed sector. The main challenge facing the organized sector is the competition from unorganized sector. Unorganized retailing has been there in India for centuries, theses are named as mom-pop stores. The main advantage in unorganized retailing is consumer familiarity that runs from generation to generation. It is a lowcost structure, they are mostly operated by owners, has very low real estate andlabor costs and has low taxes to pay. And it also gives 8% Employment to the country annually. In late 1990

s the retail sector has witnessed a level of transformation. Retailing is being perceived as a beginner and as an attractive commercial business for organized business i.e. the pure retailer is starting to emerge now. Organized retail business in India is very small but has tremendous scope. The total in 2005 stood at $225 billion, accounting for about 10% of GDP. In this total market, the organized retail accounts for only $8 billion of total rev

enue. According to A T Kearney, the organized retailing is expected to be more than $23 billion revenue by 2010. In organized retailing will grow faster than unorganized sector and the growth speed will be responsible for its high market share, which is expected to be $ 17 billion by 2010-11. The organized sector is expected to grow faster than GDP growth in next few years driven by favorable demographic patterns, changing lifestyles, and strong income growth. This organizedretail sector mix includes supermarkets, hypermarkets discounted stores and specialty stores, departmental stores. For example, Spencer network has 69 stores, which includes seven Spencer hypermarkets, three Spencer


5

8/3/2019 78478910 Big Bazar Final

6/33

super markets and 49 Spencer Dailys. Now the company is planning to open 20 stores in 10 cities in six months. The top 10 retailers account only for 2% of totalmarket, today modern retailing is expected to enter a boom phase, which has major players and these players might capture 10% of total market, within next fiveyears. The retail sales in India for future are shown below (data from 2005-2008is based on estimates)

The trend in the Industry 1. Low share of organized retailing 2. Falling real estate prices 3. Increase in disposable income and customer aspiration Increase inexpenditure for luxury items (CHART)

Another credible factor in the prospects of the retail sector in India is the increase in the young working population. In India, hefty pay packets, nuclear families in urban areas, along with increasing workingwomen population and emergingopportunities in the services sector. These key factors have been the growth drivers of the organized retail sector in India which now boast of retailing almost all the


6

8/3/2019 78478910 Big Bazar Final

7/33

preferences of life - Apparel & Accessories, Appliances, Electronics, Cosmeticsand Toiletries, Home & Office Products, Travel and Leisure and many more. With this the retail sector in India is witnessing rejuvenation as traditional marketsmake way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores.

Existing competition

Reliance fresh. Hyper city D Mart Big bazar Spencers. The untapped scope of retling has attracted superstores like Wal-Mart into India, leaving behind the kiranas that served us for years. Such companies are basically IT based. The other important participants in the Indian Retail sector are Bata, Big Bazaar, Pantaloons, Archies, Cafe Coffee Day, landmark, Khadims, Crossword, to name a few. EVOLUTION OF INDIAN RETAIL INDUSTRY Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take place. The inception of the retail industry dates back to times where retail stores were found in the village fairs, Melas or in the weekly markets. These stores were highly unorganized. The maturityof the retail sector took place with the establishment of retail stores in thelocality for convenience. With the government intervention the retail industry i

n India took a new shape. Outlets for Public Distribution System, Cooperative stores and Khadi stores were set up. These retail Stores demanded low investmentsfor its establishment. International Brand Outlets, Hyper or Super markets, shopping malls and departmental stores.


7

8/3/2019 78478910 Big Bazar Final

8/33

RETAILING IN INDIA: A FORECAST Future of organized retail in India looks bright.According to recent researches it is projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will capture a share of 10% of the totalretailing by the end of 2011.

INDIA: A Hot Spot India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country

s GDP. Ret

ail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steeprise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion.

Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retailin India which have become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food,shopping, and entertainment all under the same roof. India retail industry is expanding itself most aggressively; as a result a great demand for real estate isbeing created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers.


8

8/3/2019 78478910 Big Bazar Final

9/33

In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items. As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all underone roof, the concept of shopping has altered in terms of format and consumer b

uying behavior, ushering in a revolution in shopping in India. This has also contributed to large-scale investments in the real estate sector with major national and global players investing in developing the infrastructure and constructionof the retailing business. Growth drivers in India for retail sector

Rising incomes and improvements in infrastructure are enlarging consumer marketsand accelerating the convergence of consumer tastes.

Liberalization of the Indian economy Increase in spending Per capital Income. Ad

vent of dual income families also helps in the growth of retail sector. Shift inconsumer demand to foreign brands like McDonalds, Sony, Panasonic, etc. Consumer preference for shopping in new environs influences of

The Internet revolution is making the Indian consumer more accessible to the growing domestic and foreign retail chains. Reach of satellite T.V.

Channels are helping in creating awareness about global products for local markets. About 47% of India

s population is under the age of 20; and this will increase to 55% by 2015. This young population, which is technology-savvy, watch morethan 50 TV satellite channels, and display the highest propensity to spend, willimmensely contribute to the growth of the retail sector in the country.

Availability of quality real estate and mall management practices Foreign companies

attraction to India is the billion-plus population.


9

8/3/2019 78478910 Big Bazar Final

10/33

COMPANY PROFILEPantaloon Retail (India) Limited, is India

s leading retail company with presence across multiple lines of businesses. The company owns and manages multiple retail formats that cater to a wide cross-section of the Indian society and is ableto capture almost the entire consumption basket of the Indian consumer. Headquartered in Mumbai (Bombay), the company operates through 5 million square feet ofretail space, has over 331 stores across 40 cities in India and employs over 17

,000 people. The company registered a turnover of Rest 2,019 crore for FY 2007-08 It owns and operates multiple retail formats including Pantaloons, Big Bazaar,Food Bazaar, Central, EZone, Fashion Station, Depot and many others. PantaloonRetail forayed into modern retail in 1997 with the launching of fashion retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain that combines the look and feel of Indian bazaars, with aspects of modern retail, like choice, convenience and hygiene. Food Bazaar, food and grocery chain and launch Central, a first of its kind seamless mall located in the heart of major Indian cities, followed this. Some of its other formats include, Collection i(home improvement products), E-Zone (consumer electronics), Depot (books, music,gifts and stationary), All (fashion apparel for plus-size individuals), Shoe Factory (footwear) and Blue Sky (fashion accessories). It has recently launched it

s retailing venture, futurebazaar.com. The group

s subsidiary companies include,Home Solutions Retail India Ltd, Pantaloon Industries Ltd, Galaxy Entertainmentand Indus League Clothing. The group also has joint venture companies with a number of partners including French retailer Etam group, Lee Cooper, Manipal Healthcare, Jaywalkers, Gini & Jony and Liberty Shoes. Planet Retail, a group companyowns the franchisee of international brands like Marks & Spencer, Debenhams, Next and Guess in India. Pantaloon Retail is listed on BSE and NSE with a turnoverof Rs 2,018 crores for financial year ended 2007-08. Pantaloon Retail was selected as the Best of Best Retailers in Asia by Retail Asia-Pacific Top 500 magazinein 2006. Future Group


10

8/3/2019 78478910 Big Bazar Final

11/33

Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned to cater to the entire Indian consumption space. The Future Group operatesthrough six verticals: Future Retail (encompassing all retail businesses), Future Capital (financial products and services), Future Brands (management of all brands owned or managed by group companies), Future Space (management of retail real estate), Future Logistics (management of supply chain and distribution) and Future Media (development and management of retail media). Future Capital Holding

s, the group

s financial arm, focuses on asset management and consumer finance.It manages two real estate investment funds (Horizon and Kshitij) and consumer-related private equity fund, Indecision. It also plans to get into insurance, consumer credit and other consumer-related financial products and services in the near future. Future Group

s vision is to, "Deliver Everything, Everywhere, Everytime to Every Indian Consumer in the most profitable manner." One of the core values at Future Group is,

Indians

and its corporate credo is Rewrite rules, Retain values. Future Group Manifesto Future the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us toexplore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength,our ability to learn, unlearn and re-learn, our ability to evolve. Big Bazaar i

s a chain of shopping malls in India currently with 29 outlets, owned by the Pantaloon Group. It works on same the economy model as Wal-Mart and has had considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore Biyani, the head of Pantaloon Retail India Ltd. Cities wherestores are located are : Agra, Ahmadabad, Allahabad, Ambala, Asansol, Bangalore, Bhubaneswar, Chennai, Coimbatore, Palakkad, Kolkata, Delhi, Durgapur, Ghaziabad, Gurgaon, Hyderabad, Indore, Lucknow, Kanpur, Mangalore, Mumbai, Nagpur, Nasik, Panipat, Pune, Rajkot, Surat, Thane, Thiruvananthapuram, Vishakhapatnam.


11

8/3/2019 78478910 Big Bazar Final

12/33

Big Bazaar is not just another hypermarket. It caters to every need of customersfamily. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, customer will definitely get the best products at the best prices -- thats what Big Bazaar guarantee. With the everincreasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise customer. And th

is is just the beginning. Big Bazaar plans to add much more to complete customers shopping experience.


12

8/3/2019 78478910 Big Bazar Final

13/33

Store study Big Bazar101 Growel plaza, Off Western Express Highway, Akurli Road, Kandivali (e), Mumbai; 400101. Ph: +912267593600, 18002002255, 1800223050.

This store is of 2 flour and divided into 2 levels based on the nature of products. There are 21 departments in this store and 120 Human Resource employed. As this store is big enough with 2 levels and 21 departments has long product range

and product depth. Ones a customer get inside the store they will find all kindsof products available that may be Food item, Cosmetic, Electronic, Garments, Furniture etc. Because of these features it has a very good reputation in that area and customers who are residing far away and in other areas they also visit thestore.


13

8/3/2019 78478910 Big Bazar Final

14/33

SECURITY MEASURESThey have loss prevention cell (LPC) that will be looking after the safety measures in the organizations. They have 3 types of tags 1. Hard tag 2. Soft tag 3. String tag

These tags will be attached to the materials. If any person will take that without paying bill some process will be taken by the LPC. Process: In case any theft

is done in big bazaar they will catch the person & they will fine him and theywill fill one form that he had done the mistake & they will take all 10 fingersthumb impression. Departmental Managers There are 24 departments in this store like Electronic dept, Depot dept, NBD dept, Mobile Bazaar Dept, Star sitar Dept,PUC Dept, Ladies Dept, Mens Dept, Furniture Dept, Footwear Dept, and Home Dcor Dept. Each department will be assigned with targets, which have to be achieved within the assigned period that may be of Daily, Weekly, monthly and yearly. Each department has a department Manager & Assist DM. Their job is concerned mainly with sales. They look after customers orders delivery post sale service if any etc.All Dept managers ADM, Team members work under coordination & cooperation. Theyare also responsible for the placing orders of the goods incase of shortage herethey have to send indent specifying the amount of products needed at the store.

They have to report periodically the performance of the department to the storemanager. Administration Store administration comes under Store Manager its functions are store maintenance, House Keeping, Security etc. Store manager has to control all the activities within the store. He has to communicate all the departmental managers and assistance departmental managers regarding any new offers, regarding their targets etc. Sore manager has to see the operation at the store is being


14

8/3/2019 78478910 Big Bazar Final

15/33

performed in coordination and cooperation he has to communicate with the corporate office regarding any changes being applied at the store. Information Technology This department is responsible for the maintenance of the systems of the stores. All billing machines their functioning networking with the master machine etc. If there is any problem with the machine then this department comes into function. Cashing Dept This department is responsible for the collection of sales amount i.e. cash sales, Credit sales, etc under this department all billing machin

es of the stores comes. The sales amount collected throughout the day by the cashiers has to be submitted to this department. Marketing This dept is responsiblefor the marketing of the store in different media like Television, Newspaper, and Holdings etc. the authorized person has to visit different companies and has to look after for tieups etc. The executives arranges rallys Visual Merchandise This department is responsible for the product arrangement at the store with respect to their nature. The basic function of this dept is it divides the store intoseveral departments based on the nature of the product and within the department it decides how the products should be arranged by keeping in mind the customershould not suffer. Human Resource Human Resource basically works for the welfare of the employees. It acts to organize the manpower and work to increase productivity of the employees. Basically Human Resource performs the functions of Recr

uitment, Hiring, Induction, Training and development, Performance appraisal of the employees. Human Resource studies and involves in inter life cycle of the employee from his joining the organization to till his end from the organization. CSD (Customer Service Desk) This is the separate unit, which is mainly focuses oncustomer service like if the customer find difficulty in finding any product, Customer complaints any replacement, Customer assistance etc.


15

8/3/2019 78478910 Big Bazar Final

16/33

Importance of Supply Chain and Logistics ManagementOne of the most important challenge in organized retail in India is faced by poor supply chain and logistics management. The importance can be understood by thefact that the logistics management cost component in India is as high as 7% -10% against the global average of 4% - 5% of the total retail price. Therefore, the margins in the retail sector can be improved by 3% - 5% by just improving thesupply chain and logistics management. In India, with demand for end-to-end logi

stics solutions far outstripping supply, the logistics market for organised retail is pegged at $50 million and is growing at 16%. It is expected to reach $120-$130 million by 2010. Organised retail on the other hand is growing at 400% andis expected to reach around $30 billion by 2010.Even supply chain and logisticsfirms like Hong Kong based Heng Tai Consumables and ABS Procurement Co and ACM China (the greenhouse specialist) is also eying the opportunity for managing thesupplies. The supply chain management is logistics aspect of a value delivery chain. It comprises all of the parties that participate in the retail logistics process: Manufacturers, Wholesalers, Third Party Specialists like Shippers, OrderFulfilment House etc. and the Retailer. Here, logistics is the total process ofplanning, implementing and coordinating the physical movement of merchandise from manufacturer to retailer to customer in the timeliest, effective and cost effi

cient manner possible. Logistics regards order processing and fulfilment, transportation, warehousing, customer service and inventory management as interdependent functions in the value delivery chain. It oversees inventory management decisions as items travel through a retail supply chain. If a logistics system workswell, the retail firm reduces stock outs, hold down inventories and improve customer service all at the same time. Logistics and Supply Chain enables an organized retailer to move or store products more effectively. Efficient logistics management not only prevents needless movement of goods, vehicles transferring products back and forth; but also frees up storage space for more productive use. Retail analysts say on-time order replenishments will become even more critical once the Wal-Mart/ Bharti combine begins operations - the American retailer works almost entirely on cross-docking and is likely to demand higher service levels, including potential levies for delays in shipment.


16

8/3/2019 78478910 Big Bazar Final

17/33

The efficiency and effectiveness of supply chain and logistics management can also be understood by the fact that m modern retail stores maintain lower inventories than traditional retail. In India, generally in the traditional kirana stores, three weeks inventories are kept; while in a modern retail store like Hyper city, it

s nine days and it

s under two weeks for Food Bazaar. Now, it is beneficial for both the manufacturer as well as the retailer. If we go through the following food supply chain in India, we find that a lot can be improved by maintain

ing the supply chain and logistics. Future Group Future Group is the country

s leading retail business group that caters to the entire Indian consumption space.It operates through six verticals: Future Retail (encompassing all lines of retail business), Future Capital (financial products and services), Future Brands (all brands owned or managed by group companies), Future Space (management of retail real estate), Future Logistics (management of supply chain and distribution)and Future Media (development and management of retail media spaces). The group

s flagship company, Pantaloon Retail (India) Limited operates over 5 million square feet through 450 stores in 40 cities. Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, EZone, Depot, Health & Beauty Malls and online retail format, www.futurebazaar.com. The group

sjoint venture partners include Italian insurance major, Generali, French retaile

r ETAM group, US-based stationary products retailer, Staples and UK-based Lee Cooper and India-based Talwalkar

s, Blue Foods and Liberty Shoes. Future Group isworking on the vendor network as well as the logistics network. The company hasidentified up to 40 anchor vendors, each with turnovers of US$45 million, to achieve economies of scale. The group is also keen to ensure that its smaller vendors are able to reach turnovers of around US$1 million and a growth rate of 40% annually, to be able to pass on the benefits of scales. The company is also working towards bringing its 1,200 vendors online, like Wal-Mart. Going further in this direction, the Future Group has also launched Future Logistics initially aimed at handling the supply chain logistics of the group. However, sensing immenseopportunity in this area, the company is now looking to offer its services to its 1000-odd vendors, spread across consumer related goods, to reach a targeted turnover of about Rs.700 crore by 2010.The thrust at present will


17

8/3/2019 78478910 Big Bazar Final

18/33

be on modes of surface transport like roads and rail only. However, at a later stage, sea and air modes might also be considered as per the requirement, said sources. In India, Future group derives significant economies of scale in managingtheir supply chain. With more than 170000 products, the company maintains a strong supplier relationship in a partnership mode, avoiding the exploitative supplier buyer transactional philosophy. The IT enabled back-end operations and supply chain management increases the reliability and efficiency of the business. Com

panys supply chain was split into the broad categories of fashion, food and general merchandise, leading to a more focused approach to businesses, improved service levels, better customization of logistic and supply chain related needs, andfinally deliverables. Further, with new concepts and lines of business being included during the year, as well as strategic alliances with other companies, theprocess of gradually integrating them have either been completed or close to completion. The existing supply chain design consists of a Master Distribution Centre (MDC) and city warehouses upgraded to Regional Distribution Centers (RDCs) and additional Distribution Centers (DCs). The company had one MDC and 16 RDCs andDCs The company has also appointed leading international and domestic players in the warehouse infrastructure and technology front. The company also introducedthe concept of reverse logistics that looks at setting up a process to transfer

finished goods from the consumption point to the point of origin. This reduceswastage and can lead to significant cost savings. On the technology front, all the existing MDCs, RDCs and DCs are live on SAP, thereby facilitating standardization, real time data management and reporting, as well as optimum operational efficiencies.


18

8/3/2019 78478910 Big Bazar Final

19/33

PRIVATE LABELPrivate label describes products manufactured for sale under a specific retailersbrand. They are often designed to compete against branded products, offering customers a cheaper alternative to national brands. Though the public generally used to see them as low-cost imitations of branded products, private labels have overcome this reputation and achieved significant growth in recent years. The most commonly known private label goods are the store brands sold by food retailers,

though this is just one example of many. Department stores, electronics stores,and office supply retailers all offer private label products or services. Private labels offer several benefits to both retailers and customers, driving the segment

s rising popularity. For retailers, margins on private label goods are an average of 10% higher than those on similar branded products. Customers benefit from private labels

lower prices, which are often significantly less than thoseof national brands. This combination, while beneficial to retailers and consumers, can put substantial pressure on the manufacturers of branded goods, who haveto compete against their own customers (the retailers) for market share. Impactof Private Label Brand Loyalty National brands are sold all over, so there

s noreal sense of brand loyalty in terms of where consumers buy them. Because private labels are unique to one retail chain, there is the possibility for retailers

to cultivate a sense of brand loyalty. Though they used to be seen as knock-offsof "name brands", private labels have become increasingly more accepted by thepublic as quality has increased and retailers have expanded their offerings of private label goods. Many consumers now seriously consider private labels as acceptable alternatives to national brands. Retailers can capitalize on this shift in public perception by offering quality private label products, which can fostera feeling of brand loyalty. This can give retailers a significant advantage over competitors. Lower Prices/Higher Margins Private label goods are generally much cheaper to produce than branded goods, due to the lack of advertising and marketing expenses. As such, retailers are able to purchase private label goods formuch less than they would have to pay for comparable branded products. The costdifference is usually large enough that retailers can offer customers lower prices while still making higher profit


19

8/3/2019 78478910 Big Bazar Final

20/33

margins themselves. Lower prices can be enticing to customers and increase a stop on a product

s way from the manufacturer to the consumer. Retailers are now becoming increasingly established as brands themselves, marketing their private label products as alternatives to national brands. This has resulted in a growingshift in the balance of power between retailers and manufacturers, with retailers not only becoming less dependent on manufacturers for product offerings but actually making manufacturers dependent on them for sales volume.

Private label product at Big Bazaar Big Bazaar, the hypermarket of Pantaloon Retail, has come out with a breakfast cereal range under its private label, Tasty Treat. Big Bazaar already sells noodles, pasta, vermicelli, soups, namkeens, chips, toast, khari, papads, jams, pickles, carbonated drinks, ketchup and fruit beverages under the brand. It has now added breakfast cereals to the range. The breakfast cereals will be available in three variants plain cornflakes, chocolate-flavoured Choco Gols and honey-flavoured Honey Circles. There are two reasons forlaunching the product, says Pantaloon Retails head of private brands, Devendra Chawla. One is that private brands give us far higher margins, and the second is that cornflakes as a category is under-penetrated and has a lot of scope to grow.The market for breakfast cereals is still small. While the packaged food market

is valued at Rs 33,234 crore, the organised breakfast cereal market is just Rs 250 crore less than one per cent. But the market is growing fast, given the growing health consciousness in the country, especially the urban middle class. Kelloggs monopolises the market for breakfast cereals with its range of flakes. Someother multinational players have also shown keen interest in this market. PepsiCo has already entered with its bestseller brand, Quaker Oates. Heinz India, which has a hugely strong bond with households because of its Complan health drinks,too has joined the bandwagon. In spite of the presence of a large number of players in the branded packaged food segment, Tasty Treat is growing at about 70 per cent. This perhaps has given Big Bazaar the confidence to try its luck in breakfast cereals as well. In a recent development, Pantaloon Retail, promoted by Kishore Biyani, has boycotted Kelloggs at all its retail formats for turning downits demand for higher margins. Not surprisingly, Big Bazaar is


20

8/3/2019 78478910 Big Bazar Final

21/33

pushing its own brand of cornflakes now. This is not the first time Big Bazaar is doing this. A while back Cadburys and PepsiCo owned snack food brand Frito Layhad to bear the brunt. As an introductory offer, the cornflakes brand will be priced at Rs 99 along with a free bowl worth Rs 60. According to Chawla, the brand will provide 10 to 15 per cent value when compared to rivals. We have the option of pricing it lower as we dont have to pay intermediaries and can pass on thatadvantage to consumers, says Chawla.


21

8/3/2019 78478910 Big Bazar Final

22/33

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.


22

8/3/2019 78478910 Big Bazar Final

23/33

Data Collections MethodsMarket research requires two types of data i.e. secondary data and primary data.Primary data has been used abundantly for the study. Well-structured questionnaires were prepared & the survey was undertaken. Feedback for the display has been taken by asking questions & observation has also done to gather primary information. There is also a use of secondary data, collected from the various journals, books, and websites & from company managers. Primary data Secondary data Fiel

d Survey Big Bazaar records Text Books and journals Company Websites Area of research: Research approach: Kandivali (Mumbai) Survey method


23

8/3/2019 78478910 Big Bazar Final

24/33

Sampling MethodSince the study is restricted to Retail sector, all the functional Departments of Big Bazaar and the respondents are found at the store only so according to theconvenience randomly they are being picked so sampling method is used in this study is Random Convenient Sampling. Sampling Sample size Sampling Method SampleUnit Measuring Tool : 100 respondents : Random Convenience sampling : Customer of Big bazaar : Questionnaire


24

8/3/2019 78478910 Big Bazar Final

25/33

ANALYSIS AND FINDINGSQ No 1: Which store first comes to your mind when you think of purchasing a product? 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, from 100 respondents, 61% of them gave 1st preference

to Big Bazaar 15% of them gave preference to D Mart 19% were gave to Reliance Fresh and only 5% gave to other retailer . Most of the customers are given 1st preference to Big Bazaar compare to other retailers


25

8/3/2019 78478910 Big Bazar Final

26/33

2) From which source did you come to know about Big Bazaar outlet. Ans: T .V Advertisement Hoardings News paper Buspaintings

40 35 30 25 20 15 10 5 0 T .V Advertisement Hoardings News paper Bus paintings

ANALYSIS: From the above graph i can come to know that, among 100 respondents, 23% of them come to know about Big Bazaar through TV advt., 34% of the respondent

s told that through Hoardings, 31% of them through news paper , and 12% came toknow through bus painting Hoarding is the most influencing factor which is responsible for awareness of Big Bazaar.


26

8/3/2019 78478910 Big Bazar Final

27/33

3) Are you aware about private labels of big bazaar? Ans: Yes No

100 90 80 70 60 50 40 30 20 10 0 Yes No

ANALYSIS:

Among the 100 respondents, 87% of them they are aware of promotional offers, 13%

told they have told that they are not aware. 87% of customers are aware about private labels of the big bazaar.


27

8/3/2019 78478910 Big Bazar Final

28/33

4) Please choose below the factor which attracted you most at the Big Bazaar. Ans: 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 attracted by the offers and 9% of them told that they are attracted by service and 23

% of them told that they are attracted by quality and only 17% of them told thatonly for availability of products Most of the people attracted towards big bazaar only from the Private Labels. So offer is the most influencing factor among those.


28

8/3/2019 78478910 Big Bazar Final

29/33

5) Looking at the private labels of Big Bazaar does your purchase pattern changes? 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 conceptchanges 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


29

8/3/2019 78478910 Big Bazar Final

30/33

SURVEY FINDINGS From the sample size of 100 samples it is found that the Brand is well positioned in the minds of customers because 77% of the respondents preference is Big Bazaar for their shopping. Among 100 respondents, 23% of people told that 1st they came to know through T V advertisement and 34% of people told that through hoardings 31% of them told that through news paper and finally 12% of them highly agree that through bus painting. Among the 100 respondents, 87% of them told that th

ey are aware about Private Labels of big bazaar .only 13% of them told that theyare not aware of Private Labels of big bazaar . Among the 100 respondent 51% ofthem told that they are attracted towards big bazaar only for the offers ie: Private Labels 9% of them told that service and 23% of them told that quality andonly 17% of them told that due to availability of products.


30

8/3/2019 78478910 Big Bazar Final

31/33

Recommendations Big bazaar should keep offers in regular intervals so that there should not be along term gap, because offer is the most influencing factor which is responsible for customer purchase decision. And they also concentrate on T V advertisementthey should show ads and promotional offers in a regular interval in two languages like Hindi English. Hoarding should be placed uncovered area.


31

8/3/2019 78478910 Big Bazar Final

32/33

CONCLUSIONIndian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are fighting to win the hearts of customer who is Godsaid by the business tycoons. There is always a first mover advantage in an upcoming sector. In India, that advantage goes to BIG BAZAAR. It has brought about manychanges in the buying habits of people. It has created formats, which provide all items less than one roof at low rates. The consumers preferences are changing

& they are moving from Traditional Kirana stores to Modern Retail outlet. Its themain challenge to the Modern retail outlets to attract the customers towards them from that of competitors. To attract more customers companies have to carry out the promotional activities in unique way. BIG BAZAAR has maintained that uniqueness & has succeeded in attracting customers. The private label concept of thecompany, which famous as Less Price than others as it says Nobody Sells Cheaperand Better! is made its place in minds of customer. As the competition is becoming stiff in the market the activities conducted by the company are unique, that have brought fruitful result to the company. Among them sales Promotions is one of the leading activity or unique among all other activities & has high influenceon the customer walk-in.


32

8/3/2019 78478910 Big Bazar Final

33/33

78478910 Big Bazar Final

Documents

Transcript of 78478910 Big Bazar Final