Market Research Project

On

Challenges in Retailing Retailers and Customers.

Of

Big Bazaar

SINGIREDDY SANTOSH REDDY

DPGD/OC12/0273

Specialization : RETAIL MANAGEMENT

WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

Year of Submission: September 2014

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ACKNOWLEDGEMENT

With great pleasure, I express my heartiest thanks to Mr. Pradeep Kumar S for giving me an opportunity to

work under his guidance. He gave me the guidelines that helped me a lot in the preparation of my research

report.

I express my thanks to all the respondents to whom I visited, for their support and valuable information,

which helped me in the completion of my research project work.

I express my sincere gratitude to my parents, friends and all others who have directly or indirectly inspired

and helped me to complete my project with unremitting zeal and enthusiasm.

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DECLARATION

I hereby state that this work is a result of study on the “Challenges in Retailing Retailers and

customers”. The findings & conclusion expressed in this research report are genuine and for academic

purpose. It is my own and it has neither been submitted nor published anywhere before any resemblance to

earlier project or research work purely coincidental. It is totally based on my hard work and creativity.

Place : Hyderabad (SINGIREDDY SANTOSH REDDY)Date: 24th -09-2014

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Table of contents

Sl. no. Chapter name Page no

1 Introduction

General Introduction 6

2 Objective of the Study 11

Research Design 12

Data Analysis 13

Sampling Design 13

Limitations of the Study 14

3 Industry Profile 15-20

3 Company Profile 21-38

4 Retailing formats in India 39-41

5 Specialty Stores 42-48

6 Major Industry Players 49-60

7 Competitor Analysis 61-64

8 Challenges in Retailing Retailers and Costumers 65-83

9 Findings 84-85

10 Recommendations 86-87

Conclusions 88

11 Bibliography 89

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EXECUTIVE SUMMARY

“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 it’s 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.

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Introduction

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What IS RETAIL

Introduction

Retail consists of the sale of goods or merchandise from a fixed location, such as a department store,

boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing

may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In

commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either

directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are

often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the

process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also

applied where a service provider services the needs of a large number of individuals, such as a public utility,

like electric power.

Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping

streets may be for pedestrians only.

Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online

retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order,

are forms of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as

food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves

window shopping (just looking, not buying) and browsing and does not always result in a purchase.

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Retail Meaning

Retail involves the sale of goods from a single point (malls, markets, department stores etc) directly to

the consumer in small quantities for his end use. In a layman’s language, retailing is nothing but

transaction of goods between the seller and the end user as a single unit (piece) or in small quantities to

satisfy the needs of the individual and for his direct consumption.

Example- Prashant wanted to purchase a mobile handset. He went to the nearby store and purchased one for

himself.

In the above case, Prashat is the buyer who went to a fixed location (in this case the nearby store). He

purchased a mobile handset (Quantity - One) to be used by him. An example of retail.

The retailers purchase goods in bulk quantities (huge numbers) to be sold to the end-users either directly

from the manufacturers or through a wholesaler.

The Supply chain

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Manufacturers

Wholesaler

Retailer

Customer/End

consumer

Manufacturers - Manufacturers are the ones who are involved in production of goods with the help

of machines, labor and raw materials.

Wholesaler - The wholesaler is the one who purchases the goods from the manufacturers and sells to

the retailers in large numbers but at a lower price. A wholesaler never sells goods directly to the end

users.

Retailer - A retailer comes at the end of the supply chain who sells the products in small quantities to

the end users as per their requirement and need.

The end user goes to the retailer to buy the goods (products) in small quantities to satisfy his needs

and demands. The complete process is also called as Shopping.

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Research Methodology

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Objectives of study

The overall purpose of this endeavor is to investigate empirically customers’ preference towards

exclusive and multi brand retail outlets and to determine the factors that influence the satisfaction

level of customers’ in retail sector especially in Hyderabad city.

This study is also aimed at finding out the relation between major demographic variables and

satisfaction level of customers’ and preference of retail formats.

To study the preference given by consumers in term of quality, ambience, service, scheme and

location for retail purchase.

What are the factors affects for the purchase and swat Analysis.

To Study the awareness regarding Retail Marketing among the customer.

To know the impact of organized marketing upon the unorganized marketing.

To study the problem faced by the retail marketing in the India.

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Research Design:

Descriptive research design will be used.

Type: Descriptive Study

Scope: combination of theoretical study as well as Statistical Study

Environment: Field Research

Data Sources:

Primary Data - Survey of Customers in Hyderabad.

It will be collected with the help of Questionnaire Method and Survey Research.

As well as unstructured observation will also come in use at some part (topic) of study.

Secondary Data - It will be collected with the help of Internet, books, journals, articles of newspapers &

magazines and research papers related to booming organized retail sector.

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Data Analysis :

Data will be analyzed with the help of certain statistical tools.

1. Questionnaire method

2. Method of observation

Sampling Design:

Population: Consumers of Hyderabad city

Survey area: Consumer located in different area of Hyderabad city

Sampling method: Non-Probability Convenient sampling plan.

Sample size: 100 consumers from Hyderabad city

Significance of the Study:

To know the awareness of people about different brands of retail sector.

Result will be the knowledge about customer’s preference towards exclusive and multi-brand retail

outlet that will be helpful to find out the factors that influence the satisfaction level of customer.

It will be helpful to know the connection between demographic factors of consumer like age, income,

education and choice of people for different types of product.

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Limitations of the Study:

Following were the limitations which I faced during doing this Research:-

The cost for doing the project was one of the limitations.

There was also time constraint, as people were busy in their own work.

Limited area is covered for doing this research work.

Respondents were giving answer to the questions that were written on the questionnaire, but efforts were made to get more and more information.

The respondents were not paying proper attention while filling the questionnaires.

Some of the respondents were not aware about the questions, so they were not to present their views.

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Industry Profile

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References: Media Reports, Press Releases, Deloitte report, Department of Industrial Policy and Promotion

website, Union Budget 2014–15

Retail Industry in India

Latest update: June, 2014

Market size of Indian retail industry

By 2012, the total market size reached USD518 billion, thereby registering a CAGR of 7.0 per cent since

1998.

Break-up of all mall space by format in India

Hypermarkets would be the largest retail segment, accounting for 21 per cent of total retail space by 2013–

14.

PrevNext

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Retail Industry in India

Latest update: June, 2014

Per capita income in India

Per capita income in India is expected to cross US$ 1,600 mark by 2018.

Market break-up of retail industry in India by revenues

In 2012, ‘Food and Grocery’ accounted for nearly 60 per cent of total revenues in the retail sector followed

by Apparel (8 per cent).

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Brief Introduction

India is the fifth largest retail destination globally. The Indian retail industry has experienced tremendous

growth over the last decade with a significant shift towards organised retailing format and development

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taking place not just in major cities and metros, but also in Tier II and Tier III cities. The overall retail

market in India is likely to reach Rs 47 trillion (US$ 792.84 billion) by FY 17.

As India’s retail industry aggressively expands itself, great demand for real estate is being created. Further,

with the online medium of retail gaining more and more acceptance, there is a tremendous growth

opportunity for retail companies, both domestic and international. Favorable demographics, increasing

urbanisation, nuclear families, rising affluence amid consumers, growing preference for branded products

and higher aspirations are other factors which will drive retail consumption in India. Both organised and

unorganised retail are bound not only to coexist but also achieve rapid and sustained growth in the coming

years.

India is the fifth largest preferred retail destination globally. By 2012, the total market size of the retail

industry in India had reached US$ 0.5 trillion, registering a compound annual growth rate (CAGR) of 7 per

cent since 1998. The market in India is expected to touch US$ 1.3 trillion by 2020.

Of the overall retail market in India, unorganised players controlled 92 per cent market share during 2012.

Organised retail is expected to account for 20 per cent by 2020. Rapid emergence of mega malls and

hypermarkets are augmenting the growth of organised retail in the country.

India’s strong growth fundamentals along with increased urbanisation and consumerism have opened

immense scope for retail expansion for foreign players. The Government of India has approved 51 per cent

foreign direct investment (FDI) in multi-brand retail and increased FDI limit to 100 per cent in single brand

retail and cash and carry operations.

With growing investment in infrastructure, retailers will be able to increase their access to high-growth

potential rural market. The market constitutes over 33 per cent of the FMCG consumer base in India.

Further, E-commerce is expected to be the next major area for retail growth in India with online retail

estimated to reach US$ 70 billion by 2020.

Market Size

The Indian retail market, currently estimated at around US$ 490 billion, is project to grow at a compound

annual growth rate (CAGR) of 6 per cent to reach US$ 865 billion by 2023. Food and grocery is the largest

category within the retail sector with 60 per cent share followed by the apparel and mobile segment.

Organised retail, which constituted seven per cent of total retail in 2011–12 is estimated to grow at a CAGR

of 24 per cent and attain 10.2 per cent share of total retail by 2016–17, according to a study titled 'FDI  in

Retail: Advantage Farmers' conducted by an industrial body.

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India has about one million online retailers – small and large – which sell their products through various e-

commerce portals. The online retail industry in the country touched US$ 12.6 billion in 2013, according to a

recent report by the Internet and Mobile Association of India (IAMAI).

Investments

The foreign direct investment (FDI) inflows in single-brand retail trading during the period April 2000 –

March 2014 stood at US$ 106.66 million, as per data released by Department of Industrial Policy and

Promotion (DIPP).

The Indian online retail industry is on the rise and has attracted a cumulative funding of US$ 1,650.5 million

since 2009. Out of the total funding, 65 per cent has gone to horizontals and 25 per cent to fashion &

apparels including jewellery. Flipkart & Myntra, who are now a single entity (though they will operate

differently), have together garnered 40 per cent of the total funding invested in Indian e-commerce so far,

according to Juxt Data.

The following are the key investments and developments in the Indian retail industry:

Marks and Spencer (M&S) plans to go up to 100 outlets in India within the next two years following

a 13 per cent growth in their sales in the Indian market.

Flipkart.com has recently acquired fashion e-retailer Myntra.com for a sum of around US$ 3 billion.

This deal will help Flipkart garner a larger market share in the e-commerce segment.

Metro AG plans to increase the number of its wholesale stores in India from 16 to 50 by 2020 and

make the country one of its focus expansion markets.

Reliance Industries plans to open 2,000 exclusive outlets, Digital Xpress Mini, in FY 15 to sell the

company's telecom services, smartphones, tablets and also accessories of other brands.

Private equity (PE) firm Texas Pacific Group (TPG) Growth and India's Smile Group will jointly

invest US$ 100 million to help internet and e-commerce companies build and scale their businesses

across the Asia–Pacific region and West Asia.

Ilex-London plans to invest around Rs 5 crore (US$ 843,397.17) over the next five years to open 10

exclusive stores in India. Stores will have an average size of 500–600 square feet (sq ft), with an

investment of around Rs 5 million (US$ 84,332.95) per store.

Government Initiatives

The Government of India has allowed 100 per cent FDI in Single-Brand Retail Trading (SBRT) and has

allowed 51 per cent FDI in Multi-Brand Retail Trading (MBRT). Just recently, the Competition Commission

of India (CCI) approved the proposal of Tesco buying 50 per cent equity in Trent, which is the first-ever FDI

proposal in multi-brand retail trade.

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According to the extant policy, foreign retailers investing more than 51 per cent can open outlets across the

country on the condition that 30 per cent of their sourced sales would come from small to medium-sized

domestic enterprises. Further, global chains will now need to invest only 50 per cent of the initial

compulsory investment of US$ 100 million in setting up cold storages and warehouses in India.

The Confederation of All India Traders (CAIT) has signed a Memorandum of Understanding (MoU) with

eBay to train domestic retailers to use the online market space as an additional tool for expanding their

business. The agreement will enable Indian traders to export via eBay to 201 countries and sell at 4,306

Indian locations. 

Road Ahead

India remains a largely untapped and unorganised retail market, with several international retail companies

yet to commence operations in the country. India holds a substantial advantage over other emerging retail

destinations owing to its strong domestic consumption and low rate of market penetration by overseas

retailers.

“India's new middle class is increasingly becoming brand conscious and willing to spend on quality goods, a

trend which is creating numerous business opportunities for mid-range international brands. With political

and economic sentiments already showing signs of improvement, we believe this is the right time for

international retailers to look at India for expansion into the region," as per Mr Anshuman Magazine,

Chairman and Managing Director, CB Richard Ellis (CBRE), South Asia.

E-commerce is also expected to be the next major area for retail growth in India. E-commerce companies are

increasingly going beyond digital marketing and targeting offline customers as well. With this growth in the

e-commerce industry, online retail is estimated to reach US$ 70 billion by 2020 from US$ 0.6 billion in

2011.

The opportunities in food and grocery retail are immense, given that it constitutes about 69 per cent of the

country’s total retail market, according to panel members at the seventh Food and Grocery Forum India.

Exchange Rate Used: INR 1 = US$ 0.01687 as on June 04, 2014

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Company Profile

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Big Bazaar India’s Real Retail Story

Introduction to Big Bazaar

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 Indian customers.

We guarantee that at Big Bazaar you will definitely get the best products at the best prices. With the ever-

increasing array of private labels, it has opened doors in the world of fashion and general merchandise,

including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will

surprise you. And this is just the beginning.

We have revolutionized the consumption behaviour and won the heart of Indian customers. Over 17 crore

customers visited us every year across 240 stores, present in over 93 cities and selling over 1,50,000

products in fashion, food, personal care, home care, crockery, stationery, luggage, toys and appliances and

many more.

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 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.

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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.

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.

Target customers

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

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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 an 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.

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.

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All our alliances and relationships with many companies 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 Indianans. 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

Indianans.

Study parameters of 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”

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Merchandise

“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

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 oand types fashion glasses are available

Men Ladies and kids wear: This section includes fashion and casusal 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

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Toys: All kinds of toys for children is available

Stationary: all kind of office stationery and stationery for school going kids is available

Location

Big bazaar is located has 240 outlets in India , big bazaar locates its outlet near the commercial area and

residential complexs so that they can cover all their target customers.

On the other hand their outlets in sangle is a bit different from what we would see at say , high street Phoenix

in Mumbai. For instance isn’t air conditioned: instead, there are air coolers installed inside the store ,also

there are many shoppers there on days as an weekends . Unlike office going people in big cities , people in

smaller towns do not restrict their shopping to weekends .

The choice of location of Big Bazaar in many ways captures the essence of what they were doing- they adapt

themselves to the habits tastes and preferences according to the location. One of the distinct feature of their

location is that it is easily accessible and they try to locate their outlet in such a location where they can

reach a large customer base.

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.

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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 favorable appearance of the store for the

target customer and attracts them towards products. Effective display provides easy accessibility of product

to target customers and 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.

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 behavior of the customers. Visual merchandising is

considered to create an interest in the customers and create a favorable 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 favorable 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.

People often complain that Big Bazaar outlets always look very crowded. But few realize that it is concisely

designed to look just like that. When the shop looks neat and empty, the masses never walk into it. There has

to be what is called the ‘button brush effect’, and an ‘organized chaos’. As Indians, we like bumping into

people, chatting, gossiping and eating while we shop!

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 Bazzar, 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.

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The structure of Big bazaar at phoenix mill 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

The middle level includes

Electronic items

The first floor includes

Men , ladies and kids wear

Apparels

Foot wear

Music

Toys

Stationary

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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.

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 color 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 shopping . 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.

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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 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 color combination of Orange and Blue

External features such as :

- Car parking

- Horticulture, sculpture and lighting

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- Other external buildings

- Outdoors seating, trolley parking and other miscellaneous

Services

Big Bazaar provides a wide range of services to its customers like Trial rooms , elevators, car parking ,

security, baggage counter , trolleys so that one could shop easily

They even provide them with after sale services in case of buying electronic items. One of the major service

provided by them is one stop shop as one could get a whole range of items under one shop and at the most

reasonable price. They always have their outlets in such a location where it is easy to commute.

They have also given major emphasis to convince for customers in which layout has played a major role.

The layout of the store is so effective that customers find their way out of what they want. Big Bazaar

provides good employee service i.e their salesmen are always redy to provide help. Employee service is

often neglected as part of good retail marketing but customer and employee interaction can be used as the

significant tool for retail marketing.

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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 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, signage.”

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Promotion

Big Bazaar uses various promotional strategies like the prices on Wednesdays are very low compared to

other retailers, this helps is bringing in a huge number of customers they even have a concept of “BIG

DAY” which means they give huge discounts to their customers on the 26TH of Jan and on 15TH August. On

such days they come up with promotional offers like bring old items from your house and take huge

discounts and freebies.

They come up with offers like

School Jao Khushi Khushi:

Discounts on all school requirements like school bags, water bottles & lunchboxes.

lWin a pencil case with every purchase worth Rs. 500 & above

lSend us your experience of the “Best day that you had in school” – the most humorous one will get a

free shopping trip worth Rs 1,000/-

lLucky draw – shop for Rs 1,000 & above, drop in your kids name into our drop box – 10 lucky kids

will get 30% off on an NIIT course

lShop for Rs 500 & above, drop in your kids painting the best painting will get sponsored for an art

course.

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Khushi ki barsaat:

“Discounts ki barish” – various discounts across the board

Special discounts on raincoats & umbrellas

Lucky Draw – On purchases worth Rs. 1000 & above – drop in your name into our drop box & you

could be one of the 3 families to enjoy the rains in Goa.

Purchase goods worth Rs 500 – complete the slogan – I love the rains in Mumbai because… & win

you own customized umbrella – get your friends & family photograph screen printed on it.

Steal a deal:

Each object will have their individual price-tags.The consumer bargains on the MRP with the counter

sales girl The counter sales girl will be given a “lowest bargain” slip for each piece of merchandise.

The consumer who is able to match the best “low bargain” walks away with her goodies.

Happy Father’s Day:

Get caught shopping with your Dad on Father’s Day (20th June) & get a 20% discount on your total

bill

Shop for Rs 500 & above - submit a picture if your Dad & you – the best pair – wins a

complimentary dinner at Copper Chimney35 | P a g e

Make purchases worth Rs 300 & above & fill in a line on what your Dad means to you & win tickets

to the latest blockbuster movie.

Advertising

Following are the media channel used:

Newspaper: Big Bazaar uses newspaper as one of its media vehicle because most of the population in urban

areas is educated. They place their full page and half page ads mostly in Times of India or Hindustan times.

They also give their ads in newspaper in rural areas like “Sangli” in local language newspaper

Radio: Radio is another media vehicle used by Big Bazaar in urban areas “Radio mirchi” is used and in

rural areas “All India Radio” is used widely for placing their ads

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T.V: T.Vis also used as one of its media vehicle when they come up with huge offers on the “Big DAYs”

like the 26th Jan and 15th August.

Prices

The prices at big Bazaar are kept lowest possible in order to attract huge number of customers they have the

lowest prices on Wednesday they are able to do so because they believe in bulk buying which helps them in

buying products at lower possible prices, by which in turn they give the benefits to customers

“Isse sasta aur accha kahin nahi” is the mantra that they follow and they stick by it while deciding on the

prices of the products that they offer . So much so, that on the days that Big Bazzar is offering any of its

deals the stores all over are flooded with customers .

For eg. On the 26th of JAN 2006 when Big Bazaar was running its promotional offer ; word about the low

prices spread so quickly that they had an over whelming response because of which a special team had to be

called to manage the crowd. Even on this day Big Bazaar thought of its customers first and they ran the

promotional offer for two more days so that their loyal customers who had taken precious time in their day to

stand in the queues could avail all the offers .This day was marked as a day in the history of Big Bazzar as

“SAB SE SASTA DIN “

Personnel Selling:

Big Bazaar in the metropolitan cities are easily accessible to their customers. They have strength of 300-400

working sales force at a time in an outlet. This sales force is professionally trained to assist all kinds of

customers through out the day. There are majorly two types of customers;

One’s who prefer selecting their merchandise themselves and don’t ask for help unless required.

The other is of the type that requires assistance from the time they walk in the store till the time they exit.

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Big Bazaar sales force is dressed up in yellow t-shirts. While deciding that the founders have looked in to the

minute aspects of the customer’s psychology. They found out that a sales man wearing formal clothes with a

tie is normally intimidating to a customer. Especially a customer who might not be as educated or

sophisticated as the sales man! The main aim of Big Bazaar has always been to cater to all kinds of

customers. Which also include the lower middle class. Therefore in an attempt to not make their varied

customers feel inferior big Bazaar has made their sales force wear yellow t-shirts and yellow being a friendly

color it makes it easier for the customers to strike a conversation and seek help.

The other very minute aspect of customer psychology that the Big Bazaar sales force takes care of is; that

the customer requires help only when required . Therefore the distance at which a sales man is standing has

great importance because if the sales man is standing very close to the customer then he or she gives the

impression that the customers going to steal something.

Our Efforts:

The Visit to Big Bazaar:

We visited the Big Bazaar situated at Lower Parel (west) – Phoenix Mills. The first thing we noticed was

that the outlet was situated in such a place that was very easily accessible to customers be it from the station

it from the bus stops.

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The layout of this Big Bazaar was arranged in a way that placed the products for promoting sales creating

goodwill and increasing publicity. The main objective of Big Bazaar’s layout is to promote sales in the store.

The layout was in such a fashion that it provided convenience to customers most likely encouraged them for

product shopping or browsing. Browsing does not only help them in shopping but can also influence

purchasing decision of customers that is it may lead to customers making more unplanned purchases.

It was a pleasant experience interviewing Miss Dhruti Joshi who helped us with more information about the

store. In conversation with Miss Dhruti Joshi we discussed the evolution and success of Big Bazaar. The

following are the questions that we asked regarding the store.

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Retailing formats in India

1. Malls:

The largest form of organized retailing today. Located mainly in metro cities, in proximity to

urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping

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experience with an amalgamation of product, service and entertainment, all under a common roof.

Examples include Shoppers Stop, Pyramid, Pantaloon.

2. Specialty Stores:

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's

Music World and the Times Group's music chain Planet M, are focusing on specific market segments and

have established themselves strongly in their sectors.

3. Discount Stores:

As the name suggests, discount stores or factory outlets, offer discounts on the MRP through

selling in bulk reaching economies of scale or excess stock left over at the season. The product category

can range from a variety of perishable/ non perishable goods.

4. Department Stores:

Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further

classified into localized departments such as clothing, toys, home, groceries, etc

5. Department Stores:

Departmental Stores are expected to take over the apparel business from exclusive brand

showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and

now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for

clothes called Stop!.

6. Hypermarts/Supermarkets:

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Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are

located in or near residential high streets. These stores today contribute to 30% of all food & grocery

organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to

2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food

& grocery and personal sales.

7. Convenience Stores:

These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a

limited range of high-turnover convenience products and are usually open for extended periods during the

day, seven days a week. Prices are slightly higher due to the convenience premium.

8. MBO’s :

Multi Brand outlets, also known as Category Killers, offer several brands across a single product

category. These usually do well in busy market places and Metros.

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Specialty Stores

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Food retail :

Food dominates the shopping basket in India. The US$ 6.1 billion Indian foods industry, which forms 44 per

cent of the entire FMCG sales, is growing at 9 per cent and has set the growth agenda for modern trade

formats. Since nearly 60 per cent of the average Indian grocery basket comprises non-branded items, the

branded food industry is homing in on converting Indian consumers to branded food.

The mobile revolution:

The retail market for mobile phones -- handset, airtime and accessories -- is already a US$ 16.7 billion

business, growing at over 20 per cent per year. In comparison, the consumer electronics and appliance

market is worth US$ 5.6 billion, with a growth rate that is half of the mobile market.

Kids retail :

When it comes to Indian children, retailers are busy bonding--and branding:

Monalisa, the Versace of kids is coming to India.

Global lifestyle brand Nautica is bringing Nautica Kids.

International brand Zapp tied up with Raymond to foray into kids' apparel.

Disney launched exclusive chains which stock character-based stationery.

Pantaloon's joint venture with Gini & Jony will set up a retail chain to market kids' apparel.

Swiss kidswear brand Milou is collaborating with Tirupur-based Sreeja Hosieries.

Turner International India Pvt Ltd. will launch Cartoon Network Townsville and Planet POGO--two

theme parks designed around its channels--in the National Capital Region.

Sahara One Television has also signed a Memorandum of Understanding to source content from

Spacetoon Media Group, Middle East's largest kids' entertainment brand for animation and live

action content.

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Leading the kids' retail revolution is the apparel business, which accounts for almost 80 per cent of the

revenue, with kids' clothing in India following international fashion trends. According to research firm KSA

Technopak, the branded segment comprises US$ 701.7 million of the total kids' apparel market-size of over

US$ 3 billion.

Industry experts say kids' retailing will touch annual growth of 30-35 per cent. Toys, stationary, sportswear,

outerwear, tailored clothing, eyewear, watches, fragrance, footwear, theme parks, TV channels… the

segment is growing rapidly at 10 per cent per annum. Margins are in the range of 20-25 per cent (for dealers

and distributors), while companies enjoy an average gross margin of about 10 per cent.

Agricultural retail:

Agriculture across India is heralding the country's second Green Revolution. 14 states, including

Maharashtra, Punjab, Andhra Pradesh and Rajasthan amended the Agricultural Produce Marketing

Committee (APMC) act this year, along the lines of the Model APMC Act, '02, which allows farmers to sell

their produce directly to buyers offering them the best price.

Agricultural sectors such as horticulture, floriculture, development of seeds, animal husbandry, pisciculture,

aqua culture, cultivation of vegetables, mushroom under cultivated conditions and services related to agro

and allied sectors are open to 100 per cent FDI through the automatic route.

For its e-Choupal scheme, ITC built internet kiosks in rural villages so farmers can access latest information

on weather, current market prices, foods-in-demand, etc.

With a US$ 5.6 billion, multi-year investment in agriculture and retail, Reliance Retail will establish links

with farms on several thousand acres in Punjab, West Bengal and Maharashtra. FieldFresh, planning to

become India's first large-scale exporter of produce, will annually pay farmers over US$ 30,000 to lease land

for vegetables, to hire tractors and to pay their workers.

Besides a five-year program with the Punjab government to provide several hundred farmers with four

million sweet-orange trees for its Tropicana juices by 2008, PepsiCo--with agriculture exports worth US$ 40

million--also introduced farmers to high-yielding basmati rice, mangoes, potatoes, chilies, peanuts, and

barley for its Frito-Lay snacks.

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Export potential and a rapidly growing domestic demand for reliable produce from new supermarket chains

is driving change. With 77 per cent of India's population relying on agriculture for a living, improved

efficiency and new markets can benefit a large number of people.

International retailers :

The Australian government's National Food Industry Strategy and Austrade initiated a test marketing food

retail in India wherein 12 major Australian food producers have tied up with India-based distributor AB

Mauri to sell their products directly at retail outlets.

The largest-ever 150-member British business delegation in India committed investments in the areas of

food processing, agri retail and manufacturing. It is also likely to press for the liberalisation of sectors like

financial & legal services and retail.

US-based home delivery and logistics company, Specialised Transportation Inc, will enter the Indian market

through a strategic alliance with Patel Retail, a subsidiary of Patel Integrated Logistics.

Among other big international players, Wal-Mart has announced its plans for India in partnership with

Bharti, Tesco is sure to try again, and Carrefour too might finally find the right partner.

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Supermarkets:

Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in

or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail

sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and

large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and

personal sales.

Supermarkets are relatively new entrants in the market. They are so called pioneers in organized food

retailing and go by the western model in look and feel and format. This is what everybody means when they

say organized food retailing.

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Franchise outlets:

Like Tommy Hilfiger and Wal Mart, other US retailers are firming up their India entry strategies and if they

are already in, they are undergoing rapid expansion. Fashion brands DKNY is also al set to foray into the

Indian fashion Industry through a franchisee agreement with Indian company, S. Kumar Starbucks recently

expressed their interest in entering Indian company

Like Tommy Hilfiger and Wal-Mart, other US retailers are firming up their India entry strategies and if they

are already in, they are undergoing rapid expansion. Fashion brand DKNY is also all set to foray into the

Indian fashion Industry through a franchisee agreement with Indian company, S Kumar’s.Starbucks recently

expressed their interest in entering India through the franchise route, like their AmericanF&B counterparts

Pizza Hut, Subway, and the very successful McDonald’s. McDonald’s has major expansion plans lined up;

in the next 3 years, it plans to open another 100 outlets

in cities across India.

Hypermarket:

A very large commercial establishment that is a combination of departmental store and a supermarket.

The specific features of a hypermarket are the wide range of goods offered, quality service, quality display of

goods on the shelves and complex systems providing for customers loyalty.

Hypermarket is known for a wide range of goods offered. It consist of dozens of thousands of items, while

similar goods can be offered in several forms. In order to work with such an assortment it is necessary to

group it into categories and sub categories that would unite goods according to this or that criteria.

Shopping Malls:

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The new shopping malls that have been expanding their footprint across Indian cities are well designed, built

on international formats of retailing and integrated with entertainment and restaurants to provide a complete

family experience. Over 300 malls are expected to be built over the next two years and most Indian cities

with over a million populations will be exposed to this modern method of retailing.

Shopping malls have existed in India since several decades but were designed and built to house several

shops in a single facility. These malls also known as Shopping Arcades offered only rows of shops, most of

which were small stores that promised bargains for their various wares. These Shopping Arcades tried to

maximize on their store space and did not offer any areas for recreation and entertainment.

The present day malls are a creation of the past few years post 2000. They are designed professionally using

a lot of international experience and combine shopping with a lot of brand building, recreation, food and

entertainment. Malls also have a large format store that serves as their anchor for shopping and a prominent

restaurant that anchors the food needs of visitors. Most malls also feature a multiplex cinema that offers

entertainment to the visitors of the mall. Finally the mall has large atria and open spaces to allow visitors and

families to hang-out.

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Major Industry Players

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The Indian retail market is growing at a very fast pace of about 20% and has a market size of US$ 500

billion.The retail sector is the second largest employer after agriculture. The retail industry alone managed to

generate more than 35 million job opportunities. 

The Indian retail industry is segregated into two sectors: organized and unorganized retailing.Organized

retailing comprises of those kind of trading activities which are undertaken by retailers who are registered

for sales tax, Income tax etc.Corporate backed hypermarkets, retail chains, privately owned large retail

businesses are some of the examples of organized retailing. Unorganized retailing mainly comprises of local

kirana shops, owner managed general stores, street vendors, convenience stores etc. 

However now it can be seen that traditional markets are paving way for development of departmental stores,

supermarkets, specialty stores. shopping from malls and buying branded products is also gaining momentum.

Inspite of all this Indian retail sector is mainly dominated by Unorganized segment with 95% -97& share.

The reason for this being deep penetration of this sector in the rural areas and large number of mom and pop

stores in the urban areas. 

Some of the key players in the organized retail sector

Pantaloons Retail Ltd, a future group venture

Shoppers Stop Ltd

Spencer Retail, RPG enterprises

Lifestyle, Landmark Group Venture

Other major indigenous players in retailing are Reliance Retail, Bharti Retail, Globus, Aditya Birla "More"

etc. 

Many Foreign players have entered India through Joint Venture with domestic firms like :

Carrefour in New Delhi, which launched its first cash and carry store here.

Wall Mart,joint venture with Bharti Retail,owns Easy Day

British retailer TESCO Plc entered into JV with Trent , retail segment of TATA group.

Marks & Spencer joint venture with Reliance Retail

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Trends in retail Industry

Flourishing organized retail sector: The construction of mega malls and hypermarkets is boosting

organized retailing.

Spending capacity of youth is showing an upward trend. India has large youth population

Easy availability of customer credit, increase in use of credit cards, access to cheap and quick loans.

Changing mindset of consumers. The mindset of buyers is shifting from low price and higher quantity

to better quality and high satisfaction.

High brand consciousness amongst buyers.

Segments of Retailing and scope of opportunities

Food and Grocery retail: Food market in India is largely unorganized. The expenditure on food

products by Indian household is the highest in the world.With rapid urbanization and consumerism

there exists huge untapped potential which needs to be explored

Apparel: Demand for stitched garments and western outfits is increasing at the rate of 40% to 45%.

Factors critical to the success of this segment are easy availability and affordability of fashionable

garments along with value added benefits.

Beauty and Wellness: Pharmacy retailing in India is largely occupied by local pharmacist. However

new chemist stores like 98.3 are emerging which offer along with drugs health and beauty care

products.

Consumer durable: Market for consumer durable is US $6.5 billion and is expected to grow at the

rate of 18%.

Furniture and furnishings: There has been a new trend evident in the market wherein the modern

retailers are setting up home furnishings section in hypermarkets and specialty stores. This segment

faces tough competition from local retailers.

Online Retailing 

As online shopping has gained popularity amongst large number of people especially youngsters, online

retailers are flourishing as important sales medium for various consumer brands. Everything ranging from

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apparels to accessories for all the age groups is available online these days. Brands like PUMA, NIKE etc

have recorded huge increments in their online sales in 2012. 

Nike, a footwear brand has its associations only with online retailers such as Myntra and Jabong. And it has

recently launched its new variety of cricket gear on Jabong.These online retailers help such brands widen

their visibility and make them easily accessible to buyers. 

Foreign Direct Investment in retail 

100% FDI has been permitted, under the government approval route,in single brand product retailing as per

DIPP guidelines.For projects involving FDI beyond 51% it is mandatory to source atleat 30% material from

indigenous small and cottage industries, having a maximum investment of about 5 crore in plant and

machinery. 

In multi brand retail Central government has permitted 51% FDI. However final decision rests with the state

government. States that are led by Congress party like Delhi, Assam, Haryana, Rjasthan foreign

supermarkets will be allowed to set up their ventures. However states led by BJP like Gujarat, West Bengal

Kerala etc. will not permit 51% FDI in multi brand retail. 

1 The Future Group

Future Group understands the soul of Indian consumers. As one of India’s retail pioneers with multiple retail

formats, we connect a diverse and passionate community of Indian buyers, sellers and businesses. The

collective impact on business is staggering: Around 300 million customers walk into our stores each year

and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and

manufacturers from across India. And this number is set to grow.

Future Group employs 30,000 people directly from every section of our society. We source our supplies

from enterprises across the country, creating fresh employment, impacting livelihoods, empowering local

communities and fostering mutual growth.

We believe in the ‘Indian dream’ and have aligned our business practices to our larger objective of being a

premier catalyst in India’s consumption-led growth story. Working towards this end, we are ushering

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positive socio-economic changes in communities to help the Indian dream fly high and the ‘Sone Ki

Chidiya’ soar once again. This approach remains embedded in our ethos even as we rapidly expand our

footprints deeper into India.

2 Shoppers Stop

Shopper’s Stop (SSL) is one of the leading players in retail segment. Being part of the K.

Raheja Corp Group, the company started its journey in retail in 1991.

Later in 1997, the company was incorporated. The company started from a single brand

shop to becoming a fashion and lifestyle store for the family. The company is well known

name that delivers superior quality products and services.

Shopper's Stop is largest chain of department stores at present in India. The company has a

19% stake in Hypercity Retail (India). The company’s subsidiary Gateway Multichannel

Retail (India) has introduced the concept of catalogue stores, call and collects store, internet

retail website and telephone orders. Presently it has 5 stores operating at Thane.

Shopper's Stop has signed a non-exclusive retail agreement with cosmetic major Estee

Lauder to open MAC Cosmetics stores in India. Currently there are 4 MAC stores operating

in Bengaluru, Delhi and Mumbai (2).

It has also entered into airport retailing by entering into joint venture with The Nuance

Group AG of Switzerland. Currently it has outlets at international airports at Bengaluru and

Hyderabad.

The retail chain major has also forayed into the entertainment segment by purchasing 45%

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stake in Timezone Entertainment, which has 5 outlets located at Ahmedabad, Hyderabad,

Kolkata and Mumbai.

Today SSL has a retail network of 24 Shopper's Stop stores, 19 Mothercare stores, 48 of

Crossword (including franchisees and shop-in-shops) stores, 3 Home Shop outlets, 4 MAC

and 25 Food and Beverage outlets.

Shopper's Stop store located at Rajouri in New Delhi is the largest department store in the

country. The company owns subsidiaries namely Crossword Bookstores, Upasna Trading,

Shopper's Stop.Com (India), Shopper's Stop Services (India) and Gateway Multichannel

Retail (India).

Business units

Shopper’s Stop- This is flagship business division of the company, which offers

international and domestic brands across categories such as apparel, accessories, cosmetics,

home and kitchenware as also its own exclusive brands. In India there are total 24 stores of

Shopper’s Stop spread across in 12 cities.

Home Stop- This is a unique concept that caters to all home needs ranging from home

decor to furniture, bath accessories to bedroom furnishings, mattresses to draperies, carpets

to modular kitchens and health equipment, all under one roof. Currently the stores have

presence at Bengaluru, Mumbai and New Delhi.

Crossword- This retail chain provides a complete shopping experience for all kinds of book

lovers. Besides books, it also offers magazines, CD-ROMs, music, stationery and toys.

Presently there are 48 stores spread across India.

Mothercare- Mothercare PLC of UK is a leading specialist retailer for infant and toddler

care. Overseas it operates over 300 stores in 40 countries through franchise route. In India it

has presence in 19 stores that includes 10 shop-in-shops at Shopper's Stop.

Arcelia- This retail chain offers a wide range of cosmetics, fragrances, fine jewellery,

footwear, handbags etc. Currently there are 2 stores operational in Delhi and Pune.

Cafes and Restaurants- The company operates two brands under this segment namely Brio 55 | P a g e

3. Reliance Retail

Reliance Retail Ltd. is a subsidiary company of Reliance Industries. Founded in 2006 and based

in Mumbai, it is the largest retailer in India in terms of revenue.[3] Its retail outlets offer foods, groceries,

apparel and footwear, lifestyle and home improvement products, electronic goods, and farm implements and

inputs. The company’s outlets also provide vegetables, fruits and flowers. It focuses on consumer goods,

consumer durables, travel services, energy, entertainment and leisure, and health and well-being products, as

well as on educational products and services.

It has a total of 1,577 stores (as of March 2014) in India with an area of approx.[4] 9 million square feet.

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It had a turnover of Rs. 108 billion in the financial year 2012-13. Approx. 56 per cent of this revenue came

from its 'value and other' segment that operates grocery chains Reliance Fresh, Reliance Super and Reliance

Hyper.

Reliance Retail has announced revenues of Rs. 34.74 billion for the first quarter of 2013, showing 53% jump

from 2012. The company also reported operating profit of Rs. 700 million for the same quarter.[3] Reliance

reported quarterly profit of Rs. 106 Crore (for Oct 2013 - Dec 2013)

Subsidiaries & divisions

There are over 45 Subsidiaries & divisions of Reliance Retail.[5] Following is the list of major divisions:

1. Reliance Fresh  - Retail outlets of fruits, vegetables & groceries. This division is yet to become

profitable.

2. Reliance Digital  - Consumer Electronics retail stores. It had 139 stores in Mar 2013.

3. Reliance Jewels - Jewellery; It had revenues of approx. Rs. 8 billion in financial year 2012-13.

4. Reliance Time Out - Lifestyle store of Books, Music, Movies, Toys, Gaming, Fragrances, Stationery.

5. Reliance Trends, Reliance Footprint and Reliance Living - Apparel and Clothing. It had revenues of

approx. Rs. 16 billion in financial year 2012-13

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4. Bharti Wal-Mart

Bharti Retail (Pvt.) Ltd. unveiled the roadmap for its retail venture on 19 th February, 2014 envisaging an

investment of $3.5 billion with expectation of revenue of $4.5 billion (about Rs. 20,000 crore) from this

business by 2015. The first retail outlet is expected to open somewhere in the month of August .

Bharti’s plan is to invest $2.5 billion by 2015 and open stores across all major cities. This investment would

be only for setting up front-end stores. The modalities for its back-end linkage, including its joint venture

with the world's largest retailer Wal-Mart, are in the process of being worked out.

A high-level team from Wal-Mart was visited India in the later part of February to work out the details of the

back-end chain. While Bharti would manage front-end of the retail venture, Wal-Mart would be involved in

the back-end, including logistics, supply chain and cash-and-carry, he added.

The JV was presently scouting for 10 million sq. ft. of retail space, which would include hypermarkets,

supermarkets and convenience stores and would provide employment to about 60,000 people. The company

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would open multi-format retail outlets in all cities with a population of about one million. Bharti is now

conducting a massive consumer survey to take a final decision on branding and promotional campaign.

However, Bharti and Wal-Mart have been facing stiff opposition from the left parties and other political

outfits who fear that the entry of the Bentonville giant will make life difficult for the small grocers and create

massive unemployment. They also expect Wal-Mart to take a tough stance on lowering prices and force

farmers to sell their produce at lower rates. A lurking fear of monopolistic regime in the retail sector is also

enhancing their fears. Both Bharti and Walmart are presently having a tough time in convincing the

ministers, politicians, agriculturists, the NGOs and other pressure groups that their business model would

serve to work in the best interests of all the stakeholders.

5. Aditya Birla – MORE

Aditya Birla Retail Limited (ABRL) is the retail arm of Aditya Birla Group company.[1] ABRL is the

fourth largest supermarket chain in the country after Future Group, Reliance Retail and D-Mart. [2] It operates

two different store formats - Supermarket and Hypermarket under the brand more.. It has about 491

supermarkets and 15 hypermarkets around the country.[3] ABRL plans to open 100 supermarkets and 6-8

hypermarkets. To fund this expansion, ABRL has borrowed Rs 500 crore from Yes bank.[4] Besides this, it

has decided to increase its borrowing limit to Rs 7,500 crore from Rs 5,000 crore.

Aditya Birla Retail Limited provides customers products under its own labels. Private label Food Brands

include Feasters, Kitchen's Promise, and Best of India. Home & Personal care brands include Enriche, 110%,

Pestex, Paradise and Germex.[5] As per a report in Economic Times, Aditya Birla Retail Ltd ( ABRL) with its

500 + 'More' branded supermarkets and 14 hypermarkets reported sales of Rs 1,966 crore and a net loss of

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Rs 650 crore in the year ended March 2014. The company has accumulated losses of Rs 2,984 crore since it

entered the segment over six years ago

MORE. Value MORE. promises best in market pricing. Linking up directly with farmers to source fresh

fruits, vegetables and staples ensure great quality as well as great price. Add to this, the membership

program Club more. which provides convenience, customized shopping solutions and savings, and the more.

value promise becomes all the more evident.

More. Is an inspirational brand for an inspirational country. We have a bright and committed, enthusiastic

team that represents the best experience from India and globally. MORE. also has a range of products from

its own stable available across value, premium and select ranges. The products have been quality-checked

and are available in attractive packaging at competitive prices. To avail additional benefits, at no extra

charge, customers can also enroll for the membership program Club more.

6.VISHAL RETAIL :

Vishal Retail (VRL), incorporated in 2001, runs a wide chain of retails stores.  The company has pioneered

in bringing the concept of hyper-markets in India.

VRL has a network of 183 showrooms spread across in 110 cities located 24 states. The company is one of

fastest growing retail chain in India.

The company has its manufacturing unit located in Gurgaon, Haryana. This unit is equipped with 700

imported machines with a manufacturing capacity of 1,50,000 pieces a month.

The company has subsidiaries namely VRL Foods, VRL Movers, VRL Consumers Goods, VRL Fashions

and VRL Infrastructure.

VRL’s retail store caters to the needs of all age groups -- from kids to senior citizens. The stores provides a

wide range of products and services in area of home furnishing, food and beverages, sports and fitness,

footwear, mobile solutions, apparels, travel accessories, household and stationary.

Viahal Retail has entered into an agreement with HPCL to develop a concept of non-fuel retailing and has

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already opened 2 stores on a trial basis.

Outlook

Vishal Retail plans to develop a retail network of 500 stores by 2013 across 172 cities.

It also plans to develop a network of 20-25 stores of non fuel retail chain.

7.METRO – CASH & CARRY INDIA

METRO Group today, is the third largest trading and retailing group in the world. The company employs

over 2,50,000 staff in 30 countries. In the year 20013 METRO Group had generated sales of over €55.7

billion; 53% of total sales came from outside Germany. METRO Cash & Carry started operations in India in

2013 with two Distribution Centres in Bangalore. With this METRO introduced the concept of Cash & Carry

to India. These Centres offer the benefit of quality products at the best wholesale price to over 150,000

businesses in Bangalore. METRO offers assortment of over 18000 articles across food and non food at the

best wholesale prices to business customers such as Hotels, Restaurants, Caterers, Food and Non-food

Traders, Institutional buyers and professionals. METRO's Cash & Carry business model is based on a

Business to Business (B2B) concept and focuses on meeting all the needs and requirements of business

customers. It is a modern format of wholesale trading, catering only to business customers.

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Competitor Analysis

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The table below outlines some of the strategic moves being planned to change the competitive structure of Retail business in India.

Early Birds

Retailer Brands Plans Strengths Challenges Threats

K Raheja Group

Shopper’s Stop, Crossword, Inorbit Mall Hyper City, Café Brio/Desi Café

310 Shoppers’ Stop Outlets by 2010, 60-70 new Crossword outlets within two years, 100 Café Brio/ Desi Café and 14 new Hypercity

Pulse on customer tastes with vast local retailing experience

Keeping up brand loyalty

Could get bogged down in positioning itself right

Future Group

Pantaloon, Big Bazaar, Food Bazaar, Fashion Station, Blue Sky

A store a day for the next three to four years – 3,300 planned by 2010

Can evolve on vast customer experience and existing models

Expanding customer base, sourcing products at cheaper rates

Straddling with too many retail formats

Tata Trent

Westside Looking to register it’s presence in hypermarkets; currently operates 21 stores

Already has an established brand like Westside

Sprucing up product offerings, opening more outlets, and introducing new retail formats

It’s smaller retail operations

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RPG Spencer’s, Music World

Expansion into other major cities at prime locations; B-Cities next on list

Still considered a southern brand

Establishing itself into newer regions, sourcing products at competitive prices

Source : Indian Management, Volume 46, Issue 1, January 2012 Page 16

Debutantes

Retailer Brands Plans Strengths Challenges Threats

Reliance Reliance Fresh

Plans to set up a range of different store formats, convenience stores and hypermarkets as well as create a back-end retail-services business

Strong back end, nationwide fuel retailing platform

Getting the retail portfolio right for Indian tastes

Product pricing, infrastructure, manpower, brands

Bharti Walmart

Field Fresh Pan-Indian operations expected

Bharti’s local expertise and Wal-Mart’s back-end make it a lethal combo

Wooing the price sensitive Indian consumer

Product pricing, shelf and overall offerings

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In the Pipeline

Retailer Brands Plans Strengths Challenges Threats

Aditya Birla

Madura Garments, Birla Sun Life Insurance and Idea Cellular, Planet Fashion and Trouser Town

To roll out it’s retail business within the next 7-8 months with a combination of large and small stores

Extensive experience in supply-chain management, vendor development with premium brands like Louis Phillippe, Van Heusen and Allen Solly

Gaining a national footprint

Building retail formats from scratch

Hero Group

Easy Bill Floated Aero Infrastructure Ltd announcing foray into retail. Currently developing two industrial parks at Haridwar and

Strong background in several manufacturing sectors; sound financial base

Creating retail operations from scratch

Little experience in everyday consumer retailing.

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Uttaranchal

Challenges in Retailing Retailers and Costomers

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Indian Retail Sector : An Overview

India represents an economic opportunity both as a global base and as a domestic market. The

real GDP is expected to grow at 8-10 percent per annum in the next five years and consuming

class with annual Household incomes above Rs. 90,000 is expected to rise from about 370

million in 2006-07 to 820 million in 2013-14.

India’s vast middle class and its almost untapped retail industry are key attractions for global

retail giants wanting to enter newer markets.

Meaning of Retail

The word retail is derived from the French word retailer, meaning to cut a piece off or to break

bulk. In simple terms, it implies a first-hand transaction with the customer.

Retailing can be defined as the buying and selling of goods and services. It can also be defined as

the timely delivery of goods and services demanded by consumers at prices that are competitive

and affordable.

Retailing involves a direct interface with the customer and the coordination of business activities

from end to end- right from the concept or design stage of a product or offering, to its delivery

and post-delivery service to the customer. The industry has contributed to the economic growth

of many countries and is undoubtedly one of the fastest changing and dynamic industries in the

world today.

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FACTORS DRIVING THE GROWTH OR RETAIL SECTOR:-

Indian economy is growing at the rate of 8%, indicating a prosperous future. The consistent

economic growth resulted in a decent rise in income level of the middle class. The thickening

of the pocket of the consumer resulted in a revolution of the retail industry. Many

International brands have entered the market. With the growth in organized retailing,

unorganized retailers have brought drastic changes in their business models, many factor are

responsible for the growth of retail sector. These are:

1. INCREASING DISPOSABLE INCOME: Rising disposable incomes in middle classand

lower middle class with increase in employment opportunities for young adults in IT & IT

enabled sectors are the major cause of retail growth in India.

2. INCREASING NO. OF DUAL INCOME NUCLEAR FAMILIES: In India, hefty pay

packets, nuclear family along with increasing working women population and dual

income in family are the factors contributing to prosperous retail sector.

3. CHANGING LIFESTYLE AND CONSUMER BEHAVIOR: Due to increasing

working population, comfortable life, travel and leisure are given importance. These key

factors are growth drivers of retail sector in India which now boast of retailing almost all the

preferences of life – apparel and accessories, Appliances, Electronics, cosmetics & Toilets

cries etc.

4. EXPERIMENTATION WITH FORMATS: Due to competition in the market,

retailing is still evolving and the sector is witnessing a series of experiments with new formats

being tested out.

5. STORE DESIGN: Shopping malls and super markets are growing at a very faster rate.

Improvements in infrastructure and enhanced availability of retail space, store design are the

factors increasing the share of organized retail ad thereby contributing to growth of Indian

retail sector.

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I SS UES BE F ORE RE T AIL RECT O R IN IN D IA: ENTRY O F ORG A NI Z ED RE T AIL

P LA Y ERS

In Indian retail sector organized retail is a recent phenomenon. It is a zero-sum game between 2

players:-

a) organized sector

b) unorganized sector

India’s retail is dominated by a large number of small retailers consisting of the local kirana

shops, owner manned general stores, chemists, footwear shops, apparel shops, paan & beedi

shops, hand-cart hawkers, pavement vendors etc. which together make up the so-called

Unorganized retail.

Organized retail is reflected in sprawling shopping centers, multiplex-malls & huge complexes

which offer shopping, entertainment and food all under one roof. The last 3-4 years have

witnessed the entry of a number of organized retailers Opening stores in various modern formats

in metros and other important cities. Organized retailing has begun to tap the enormous market

but its share is small. A number of large business houses have entered the retail business with very

ambitious expansion plan.

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However, opinions are divided on the impact of growth of organized retail in the country.

Concerns have been raised that growth of organized retail may have an adverse impact on

retailers in the unorganized sector. It has also been that growth of organized retailing will yield

efficiencies in supply chain, enabling better success to markets to producers (including farmers

and small producers) and enabling higher prices, on the one hand and, lower prices to consumers,

on the other.

In India, organized retail contributed roughly 4% of the total Indian retail 2006-07, which is very

small even compared with most of the emerging market economics.However. During the coming 9

years. It is projected to grow at a compound rate of 40-45 percent per annum and is estimated to

contribute 16% to total Indian retail by 2011-12.

SWOT OF THE MARKET

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Strenght Weakness

Oppurtunites Threats

STRENGTH

1) Organized retailing at US$ 3.31 billion, growing at 8%.

2) 2nd largest contributor to GDP after agriculture at 20%.

3) Pattern of consumption changing along with shopping trends.

4) A Growing population will translate to move consumers.

5) Consumer spending increasing at 11% annually.

6) Almost 25 million sq. ft. retail space available.

7) Paradigm shift in shopping experience for consumers pulling in more people.

8) Most of the entrants to organized retail come from 3 main categories, and have ventured into

retail as their business extension.

Real Estate Developers

Corporate Houses

Manufacturers/Exporters

WEAKNESSES

1) Shortage of quality retail spaces at affordable rates.

2) Government regulations on development of real estate(Urban Land Ceiling Act)

3) Need to provide Value for Money-squeezing margins

4) Lack of industry status.

5) Retail revolution restricted to 250 million people due to monolithic urban-rural divide.

6) Footfalls not a clear indicator of sales as actual consumers lower in number.

7) Lack of huge investments for expansion

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OPPORTUNITIES

1) Increasing urban population-more participants in retail revolution.

2) Increase in consuming middle class population.

3) Social factors like dual household income has enhanced spending power.

4) Spends moving towards lifestyle products and esteem enhancing products.

5) Availability of old industrial lands-prime real estate locked in sick industrial units.

6) Average grocery spends at 42% of monthly spends-presents a huge opportunity.

7) Increase in use of credit cards.

THREATS

1) Rising lease/rental costs affecting project viability

2) FDI restrictions in the retail sector

3) Poor monsoons and low GDP Growth could affect consumer spending drastically.

4) Archaic labour laws are a hindrance to providing 24/7 shopping experience

5) Personalized service offered by Mom-&-Pop stores.

6) Unavailability of qualified personnel to support exponential growth in retail.

7) Differentiate taxation laws hindering expansion.

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INDIAN CONSUMERISM

The lifestyle and profile of the Indian consumer is going through a rapid transformation. The

population of India is young, energetic and full of enthusiasm. 50% of the Indian population is under

the age of 25. There has been a transition from price consideration to quality and design, as the focus

of the customer has changed. The upper and middle- class population of today needs a feel good

experience even if they have to spend a little more for that. People are moving towards luxury and

want to experiment with fashion and technology. There is an increasing need of better apparels, cars,

mobile phones and consumer durables.

The food & grocery, clothing, consumer durables and books & music sectors are the major retail

sectors. However, unorganized small outlets largely control the sector. Hence there is tremendous

potential for the organized sector in various formats, such as hypermarkets, supermarkets, specialty

stores, category killers and discount chains.

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FACTORS AFFECTING CONSUMER DECISION-MAKING

A consumer’s purchase decision tends to be affected by the following four factors:

1) Demographic

2) Psychological

3) Environmental

4) Lifestyle

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DEMOGRAPHIC FACTORS

Demographic factors are unique to a particular person. They are objective, quantifiable and

easily identifiable population data such as sex, income, age, marital status etc. It also involves

identification of who is responsible for the decision-making or buying and who is the ultimate

consumer.

PSYCHOLOGICAL FACTORS

Psychological factors refer to the intrinsic or inner aspects of the individual. An

understanding of consumers’ psychology guides the marketers’ segmentation strategy.

ENVIRONMENTAL FACTORS

Environmental factors cover all the physical and social characteristics of a consumer’s

external world, including physical objects, spatial relationships, the social factors , co customers,

reference groups, social class . The environmental factors influence consumers’ wants, learning,

motives, which in turn influence effective and cognitive responses and among other things the

shopping behavior of the individual.

LIFESTYLE

Lifestyle refers to an individual’s mode of living as identified by his or her activities, interests

and opinions. Lifestyle variables have been measured by identifying a consumer’s day-to-day

activities and interests. Lifestyle is considered to be highly correlated with consumer’s values and

personality.

An individual’s lifestyle is influenced by, among other things, the social group he belongs to

and his occupation. For example, double-income-no-kids (DINKS) families in metros shop very

regularly at the super malls because of the limited time at their disposal and they also look for

entertainment while shopping on weekends. At the same time, they are higher spenders than, for

e.g., single-income families.

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DIVISION OF RETAILERS IN INDIA

The retail sector in India can be divided into two major categories:

1) Organized

2) Unorganized

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Organized

Supermarkets

Hypermarkets

Department StoresSpecialty Chains

Company Owned Company Operated

Unorganized

Kiranas: Traditional Mom and Pop Stores

Kiosks

Street Markets

Exclusive /Multiple Brand

Outlets

U N OR G A NIS E D R ETAIL S ECTOR IN IN D IA

Undeniably, around 96% of Indian retail sector is unorganized and hence majority of sales take

place through unorganized stores popularly known as kirana or mom-and-pop stores.

The unorganized retail sector is expected to grow at about 10% per annum with sales rising from

309 billion in 2006-07 to reach US $ 496 billion in 2011-12. Despite the steady expansion of

organized retailers. Though organized sector is growing a faster rate, unorganized sector is still

preferred by the customers as they are more convenient and easy to approach. The kirana shop

owner knows that the buyer buys place first. They offer that utility.

Total number of traditional retailers is estimated to be 13 million by Technopak Advisers Pvt.

Ltd. The classification of the unorganized retail universe by category is shown below:

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CATEGORIES OF TRADITIONAL RETAIL SECTOR

Fruit & vegetable sellers – Sells fruits and vegetables.

Food stores - Result of bakery products. Also sells dairy and processed

food and beverages.

Non-Vegetable Store - Sells chicken and mutton.

Kirana I - Sells bakery products, dairy and processed food, home and

personal care and beverages.

Kirana II - Sells categories available at a kirana – I store plus cereals,

pulses, spices and edible oils.

Apparel - Sells men’s wear, women’s wear, innerwear, kinds &

Customer durables & IT- Sells electronics, durables & IT products.

Furnishing - Sells home lines & upholstery.

Hardware - Sells sanitary ware, door fitting, tiles.

General mechanize - Includes lighting, stationery, toys, gifts & crockery.

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ORGANISED RETAIL SECTOR IN INDIA

The Indian retail sector is highly fragmented, consisting predominantly of small, independent,

and owner managed shop. The domestic organized retail industry is at a nascent stage.

India got started with organized chain retailing just a few years ago. There are just very few

categories, the most prominent being apparel, where organized retail chains have had a

significant presence for more than 3-4 years. Indian retailers have done very well. Particularly

after taking into account the various obstacles and hindrances like real estate costs, lack of

trained manpower etc.

Growth of organized sector of retailing will yield efficiencies in the supply chain, enabling better

access to markets, to producers and to customers. The strength of organized retail lies in resource

availability. It can translate into efficient supply chain management, leading to faster inventory

turnaround, resulting in improved button lines. It is anticipated that the further belongs to

organized sector in India. India’s organized sector is all set to explode. While the existing players

such as future group, Bharti, Reliance Retail, Essar, Shopper’s stop and Aditya Birla group are

endeavouring to consolidate their markets, others such as Mohindra & Mohindra, Parsavnath &

DLF, Hero Honda & Indiabulls have announced plans to enter the retail sector.

Organised sector is going to grow at a much faster rate of 45-50 percent per annum and

quadruple its share in total retail to 16% by 2011-12. Government is also apprehensive about the

uncertain future of this sector considering the vote bank attached to retail, political environment

is quite willing to take the risk of 100% FDI in retail.

The Major challenge facing the organised sector is competition from unorganised sector

Traditional retailing has been established in India for some centuries. It is a low cost structure,

mostly owner-operated, negligible real estate & labour costs & little or no taxes to pay.

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I M PA C T OF O R G A NIS E D S E CTOR ON O TH E R S E C T ORS

Report of ICRIER published in Sept.-08 has concluded that the growth of organised retail headed

by large corporate houses does not significantly impact small mom-n-pop retailers. ICRIER

Director and CEO Rajiv Kumar elucidated that the turnaround occurs as the unorganised sector

adapts to new challenges and formulative their own strategies in firms of technology upgrade &

improvement in the supply chain.\

The organised retailing has created a niche for itself by successfully overcoming drawbacks of

unorganised retailing such as poor inventory management insensitivity to customer expectations,

and reluctance to invest or human capital.

IMPACT ON CONSUMERS

Consumers have gained on multiple counts. The impact is

i. Consumer spending has increased with the entry of organised retail.

ii Consumers are provided with wider variety under one roof at competitive prices.

iii All income groups have gained through organised retail purchases but the lower

income consumers saved more.

IMPACT ON UNORGANISED SECTOR

The unorganised sector is affected in the following way:

1. Unorganised sector has not lost due to entry of organized sector. It has rather gained in

terms of business as the overall retail economy is growing.

2. It has also gained in terms of its quality enhancement due to competition given by

organised sector.

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3. Some businesses have closed. The closure rate is 4.2% p.a. which is much lower than

international rate of closure of small business, out of which only 1.7% closure is due to

organised sector.

IMPACT ON EMPLOYMENT

Employment potential of the Indian economy has increased. By providing direct employment to

people in various sectors like small manufacturing sector especially food processing, textiles &

apparel the unemployment rate will be reduced besides this construction packing, IT, transfer &

other infrastructure sectors will also offer employment opportunities.

Besides giving employment to Professionals & skilled labour organized retail sector also

generates a number of jobs for unskilled labour for the tasks of sorting, grading, labeling etc.

It may adversely affect employment in unorganized retail and the trade intermediaries associated

with traditional supply channels but the additional jobs created will be much higher than those

that are lost

IMPACT ON MANUFACTURERS

The impact on manufacturers is:

(i) Large manufacturers have started feeling the competitive impact of organized retail

through price and payment pressures.

(ii) Entry of organized retail is transforming the logistics industry. This will create

significant positive externalities across the economy.

(iii) Manufacturers have started building and responding their brand strength and set up

dedicated teams to deal with modern retailers.

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IMPACT ON GLOBAL PLAYERS

It will help global players by providing them with the avenues for investments. Favorable

demographic and psychographic changes in India’s consumer class and the rising affluence of

young India population is an important attraction that is attracting the global players to enter in

Indian market

IMPACT ON RURAL POPULATION

Rural population is also going to be benefited by retail revolution i.e. organized retail. Retail

market is estimated to cross US$ 45.32 BILLION ON MARK BY 2010 and US 60.43 mark by

2012 according to a study by CII and YES bank

The entry of organized sector into rural areas will provide them with experience of urban

lifestyle, quality, producers, and employment opportunities.

ITC’ Champal sagar (India’s first rural mall), DCM shriram group’s maryali bazaar, retail giants

like reliance, spencers and subhiksha are already expanding and semiurban and rurak areas.

IMPACT ON TECHNOLOGY

Retailing is a technology intensive industry. Successful retailers are using their distribution and

information systems work closely with their vendors to predict consumer demand, shorten lead

time, and reduce inventory holding and thereby saving cost .today online system link point of

sales terminals to the main office .where detailed analysis on sales by item, classification stores

or vendor are carried out online. Data warehousing, data base retailing help in tracking

information on existing and potential customers. Thus the development and use of technology is

also an important benefit or organized retailing. The technological facilities used by organized

retailers.

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IMAPCT ON GOVERNMENT

REVENUE

Another significant advantage of organized retailing is its contribution to government

revenue

.unorganized retailers doesn’t normally pay taxes and most of them are not even registered

for sales tax, vat and income tax. Organized retailers by contrast, are corporate entities and

hence fill tax returns regularly .the growth of organized retail has contributed in steady rise

in tax receipts for the central , state and local government.

IMPACT ON

INVESTMENTS

Organized retail is attracting inward both at domestic level and global level and several

support industries like IT industries, cold chain infrastructure and logistics and warehouse

distribution services in order to strengthen the supply chain . thus overall investment in

retail sector is increasing and it helps in economic growth of the country.

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CHAL L EN G ES BE F ORE OR G A N I Z ED R ETAIL

S ECTO R .

Organized sector has only recently emerged from its nascent stage and yet has to become a

preferred career option for most of India’s educated class. The roadblocks in the success of

organized sector are:-

1. Talent shortage & lack of trained manpower.

2. Supply chains are not yet so efficient and the kind of quality that customers

demand is not being provided yet.

3. There are too many intermediaries. These long intermediaries chains are in turn

driving up their costs.

4. A plethora of clearances are required for setting up retail outlet. It limits the

expansion of retail outlets at a faster pace.

5. Inadequate infrastructure, such as roads, electricity, cord chains and posts,

hampers going for a pan-India network of supplies. Due to this, retailers have to resort

to multiple vendors for their requirements which is raising their costs and prices.

6. Organized sector does not have industry status. It is further making it difficult for the

players to raise funds for their expansion plans.

7. Government restrictions on FDI limit are resulting in limited exposure to

international best practices.

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FINDING

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FINDING

From above the study there are number of finding comes before us, there are some

problems which are faced by the customers & not having proper information about

what they want, which are given as follow:

The big reason is that some time customers do not aware about the benefits of

retail stores.

Many people prefer to do shopping from the retail stores only due to more discount

offer.

It is observed that retail stores are the convient place for doing shopping because

many products are available at one roof.

It is come to knew that customer don’t get behaviour from the salesman.

It is observed that customer don’t get individual attention from the staff.

It is come to knew that staffs are able to give the answer of the question which is

asked by the customer and they are knowledgeable about the products.

It is come to knew that many customer advices others for doing shopping from the

retail stores.

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Recommendation

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Our Recommendation

Positive buying emotion and store design are the most significant components of retailing.

Big Bazaar should constantly work on creating favorable shopping environment. Store design

is a significant aspect in attracting and keeping the consumer excited about the shopping

experience. Attractive decoration, creative merchandising, efficient layout, appropriate

lighting, music and aromas enhance mood and emotion, which may leads to impulsive buying

behaviour. Using affective visual displays may also arouse impulsive buying emotion.

Efficiently arranged layout provides convenience and comfort to customers. These elements

can be used to create favorable in store environment and motivate shoppers to make an

impulse purchase.

Our study shows that there is a strong relationship between visual merchandising and impulse

buying of the shoppers. So visual merchandising is a significant tool for every retailer.

Therefore Big Bazaar should always concentrate on efficient visual merchandising. Retailers

should display things in the store in such a way that customer get attracted and excited. This

may lead them to unplanned purchase, which will increase the sales as well as profit of the

store.

Layout of the store is a significant aspect of in-store environment which makes shopping easy

for customers. There is a relationship between convenient store layout and product browsing.

Product browsing makes customers aware of offerings of store and various promotional

schemes. Big Bazaar should arrange layout of the store in a way to provide maximum

convenience to customers, this may create positive impact on the sales of the store.

Employees’ service is also a crucial factor for retail sector. If employees are well trained,

they can provide better service to customers and if customers would be happy with their

response and behaviour, they will maintain a relationship with the store. Behaviour of the

employee can influence the purchase decision of the customer. Big Bazaar should develop

effective training and development programs for employees so that they can continue to work

on maintaining good customer relationships.

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Conclusion:

We would like to conclude by saying that Big Bazaar has carved a niche for itself in the

retailing industry as a store that caters to customers from all classes, caters to their every need

at a reasonable price. Mr. Kishore Biyani the founder of Big Bazaar has emphasized his

personality to reflect on that of Big Bazaar which is”Indianess”.

His belief that only an Indian can understand an Indian has lead to the creation of such

creative ideas from his work force that Big Bazaar has struck an emotional cord in the Indian

customer so much so that the loyalty of the customer are driven to Big Bazaar

Their Sab Se Sasta din event of 26th Jan can now be called the maker for when democracy for

in retailing truly setting for a vast majority of urban Indians the Glitzy shopping malls and

modern retail formats where perceived to be expensive and exclusive. But on that day, many

urban Indian shed their inhibitions for the first time and visited Big Bazaar stores located in

shopping malls and thus Big Bazaar became a hit.

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Bibliography

Newspapers

The Times Of India The Indian Express The Economic Times Financial Express Business Standard Business Line

Books and Magazines

Business World The Indian Dream Business & Economy

URL sites:

1. http://business.mapsofindia.com/india-retail-industry /

2..http://retail.economictimes.indiatimes.com/news/apparel-fashion/apparel/10-best-retail-

companies-to-work-in-2014/33006224

3. http://www.futuregroup.in/about-us/about-group.html

4. http://www.ibef.org/industry/retail-india.aspx

5. Media Reports, Press Releases, Deloitte report, Department of Industrial Policy and

Promotion website, Union Budget 2014–15

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