MINOR PROJECT REPORT ON A COMPARATIVE STUDY OF MARKETING STRATEGY REFERENCES TO 4PS OF BIG BAZAR AND OTHER RETAIL COMPANIES

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY Submitted in partial fulfillment of requirement for the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION

Submitted By: VIVEK GUPTA 11821401712 BBA III (B) Evening

Submitted To: Mr. Vipul Singh

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL VASANT KUNJ, NEW DELHI-110070

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PERFORMA

Name Enrolment No. Address

: : :

VIVEKGUPTA 11821401712 A/1A SHASHI GARDEN, GALI NO-6 , MAYUR VIHAR , DELHI 91

Course Mobile No.

: :

BBA +8447264024

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CERTIFICATE This is to certify that MR. VIVEK GUPTA has planned and conducted the project entitled A comparative study of marketing strategy references to 4ps of Big Bazar and other retail company under my guidance and supervision and the report submitted therewith was the result of bonafide work done by him/ her

Place: Date: Mr.VIPUL SINGH (Project Guide)

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CERTIFICATE I VIPUL SINGH certify that the project report entitled A comparative study of marketing strategy references to 4ps of Big Bazar and other retail company is an original one and has not been submitted earlier to JAGANNATH INSTITUTE OF MANAGEMENT SCHOOL, VASANT KUNJ or to any other institution for fulfillment of the requirement of a course of management programme (BBA)

Place:DELHI Date: (VIVEK GUPTA) Enrollment No: 11821401712

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ACKNOWLEDGEMENT I would like to avail this privilege to put in words, my profound sense of gratitude and indebtedness to A comparative study of marketing strategy references to 4ps of Big Bazar and other retail company for giving me guidance and support during the project work. Its my privilege to acknowledge each individual those who have given me support and guidance to complete this task & wish to put on records that I am indebted to my Project guide Mr. VIPUL SINGH for his never ending valuable guidance & direction, through valuable suggestions with enthusiastic encouragement throughout the entire period of my work and preparation of the project Here I would like to mention that I have made my sincere efforts to present the project scenario and the progress made on it so far. Thus, as a humble student and within my own limited time and capacity, I tried my best to make the project a success, and I wish to add that any shortcomings in this project would be duly excused.

NAME: VIVEK GUPTA BBA (03-YEARS COURSE) ENROLMENT NO: 11821401712 SESSION -2012-2015

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TABLE OF CONTENTS

1. INTRODUCTION 2. INDUSTRY PROFILE 3. COMPANY PROFILE 4. OBJECTIVES OF THE STUDY 5. RESEARCH METHODOLOGY 6. CONCLUSION 7. RECOMMENDATIONS 8. BIBLIOGRAPHY

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INTRODUCTION

Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by post, 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.

Retailing includes all the activities involved in selling goods or services directly to final consumers for their Personal non-business use. A retailer or Retail Store is any business enterprise whose sales volume is primarily from retailing.

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Type of Retailers: (i) SPECIALITY STORES: - such stores carry a narrow product line with a deep assailment within that line. Eg. Apparel stores, sporting good stores, bookstores etc. (ii) DEPARTMENTAL STORES:-They carry several product lines- typically clothing, home, furnishing and house hold goods- with each line operated as a separate department managed by special buyers or merchandisers. (iii) SUPER MARKETS:-Super markets are relatively large, low cost, low margin, high volume, self service operations designed to serve the consumers total needs for food, laundry and household maintenance products. Usually they Earn a operating profit of only about 1% on their sales and 10% on their net worth. (iv) CONVENIENCE STORES: -Such stores are relatively small stores seven days a week, and carry a limited line of high turnover convenience products. Their long hours and their use by consumers mainly for fill in purchases make them relatively. High price operations. They fill an important consumer need and people seem willing to pay for the convenience. (v) DISCOUNT STORES: - They sell standard merchandise at lower prices by accepting lower margins and higher volumes. The use of occasional discounts or specials does not make a discount store. True discount stores regularly sell their merchandise at lower prices, offering mostly national brands, not inferior goods. (vi) OFF- PRICE RETAILERS: Buy at less than regular wholesale price and

change consumers less than retail. Tend to carry a changing and unstable collection of higher quality merchandise, often leftover goods, overruns & irregulars obtained at reduced prices from manufactures or other retailers. CATLOG SHOWROOMS:-Sell a broad selection of high markup, fast-moving, brand name goods at discount prices. These include jewellery, power tools, cameras, luggage,

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small appliances, toys and sporting goods. Customers order the goods from a catalog in the showroom, their prick these goods up from a merchandise pickup area in the store. Catalog showrooms made there may by cutting costs an margins to provide low prices that will attract a higher volume of sales. Retailing Scenario - International Retailing globally is far more organised than in India today. Upto 80 % of all retail sales in the United States is controlled by the organised retail sector. The corresponding number in Western Europe is 70 %, in Brazil and Argentina it is 40 %, in Korea and Taiwan it is 35 %. Organised retailing in Asia remains poor with its contribution being paltry 20 % in Malaysia, Thailand & China. India is too very unorganized in the retailing business. Secondly most developed economies have an increasingly large share of service sector in the over-all composition of GDP & Retail sector forms a very strong component of the service sector. Thirdly employment opportunity offered by Organised retail is immense. It has the potential to offer hundreds of thousands of jobs & careers. According to U.S. Dept of Labor, more than 22 million Americans are employed in retailing industry in more than 2 million retail stores. In short, as long as people need to buy, retail will generate employment. Competition today is more challenging than ever before. Intense competition will continue to redefine the industry. And intelligent retailers will position their business for an even more competitive marketplace. Add to it the most demanding customer of all time and one can see; retailers who fail to respond to these challenges will be facing disaster.

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Globally organised retailing has brought tremendous benefits for the consumer and has actually helped the consumer to be the King. Retailing Scenario - India.

India considered by many as the country of shopkeepers is true to a large extent because India has 5.5 outlets per 1000 people, which puts India in a unique position of having the maximum number of outlets in comparison to any other country in the world. Indian scenario currently is being dominated by small independent outlets, in fact they contribute as much as 96% of the total retail sales.

But with increasing number of nuclear families, working women, greater work pressure and increased commuting time; consumers are looking for convenience. And, convenience is defined as having everything under one roof and multiplicity of choice. This offers an excellent opportunity for organised retailers in the country.

Growth & development of organised retailing in India will be mainly influenced by two factors: Price & benefits the consumers can't resist. Economies of Scale will drive down the cost of the supply chain and increases benefits offered to the customer interface.

According to A.T.Kearney (global management consultants) retail business in India for the year 2000 was Rs.400000 crore, and they estimate it will increase to Rs.800000 crore by the year 2005 an annual increase of 20 %, and Rs.20000 crore was the contribution of organized retail in the year 2000. As per A.T.Kearney from a size of Rs.20000 crore the organized retail industry will grow to Rs.160000 crore by 2005 (estimated).

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Retail today is on the thresholds of a revolution fuelled mainly by a paradigm shift in consumer behaviour& the availability of cutting edge tools. India is rapidly evolving into an exciting & competitive market place with potential target consumers for both segments (niche & middle class). The market trends indicate tremendous growth opportunities. Indian consumer & retail market has seen a tremendous amount of interest from global majors as well. Over the years many international brands like Lacoste, Mc Donald's, Swarovski, Domino's amongst a host of others have come in. Big Indian Corporates who were earlier not into retailing are investing heavily and entering this industry. The potential in this sector is huge. Organizations ready to take this challenge can leverage the opportunities offered by the population of hundred croresThe prospects are very encouraging. Lifestyles in India are changing and the concept of "Value for Money" is picking up. A report from the Center for Monitoring the Indian Economy, says investments in organised retailing -- which include shopping malls, retail chains, etc-- has doubled from RS.1000 crore in January 2000 to RS.2000 crore in January 2001. Prospect of Retail in India Retailing, today, provides jobs to roughly 15 % of employable Indian adults, & is perhaps the largest contributor to India's GDP. But the flip side of the coin is that today practically there are no institutes offering retailing as a vocational / professional education. Whereas the growth of the industry clearly indicates that in the next ten years nearly one million new jobs will be created in the organized retail sector alone. The first steps towards sophisticated retailing are being taken, but today the biggest task before organized retail organization is to locate and recruit knowledgeable, skilled and

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trained staff to handle their operations. So to stay ahead of the pack in today's competitive and challenging retail world, one must be equipped and trained to get into this industry. RETAILING BUSINESS SCENARIO Retail is such a part of everyday life that people often take it for granted, but it is one of the fastest changing, most dynamic industries in the world today. Today, perhaps more than ever before, retailing is a mirror of society. The diversity, variety & change in society offer an opportunity for retailers to respond and succeed.

Basic Elements Of Competition In Retailing In order to understand how to work effectively with retailers it is imperative to know what concerns them Clearly they are in business to make money by running their companies differently than their suppliers they also tend to watch certain performance indicators more closely then others given the nature of what they do In fact the character of almost all retail institutions is determined by the choice management makes about the following ; 1. Margin and inventory turnover goals 2. Variety and assortment of merchandise to be carried. 3. Location and convenience factors (for consumers ) 4. Customer services to be offered ,

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Retailers Requirements From the Suppliers For the retailing to be successful following vendor attributes are required: Vendor driven demand creation Strong brand equity World class logistics Competitive price performance High quality products Easy to access service and support Attractive channel programs Well targeted product bundle Retailer training programs Attractive packaging Well balanced product line Channel specific products .

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EVALUATIVE Procedures (Choice Strategies ) Used By Retailers The evaluative procedures employed by retail buyers can be classified as particular types of decision rules or choice strategies This actual choice strategy that retail buyers use is a direct result of the type of decision problem they face when making their merchandising selection Because buyers must generally select merchandise from among a number of competing brands all of which can be described in terms of their various attributes the situation confronting the buyer can be accurately desc4ribed as a multiple respective sources of supply involves rating alternative sources along some or all of the following ten attributes or performance parameters Demonstrated consumer demand (or projected demand if a new product) Projected gross margin Expected volumes Prices and terms Service level offered Manufacturer reputation Quality of brand Vendors distribution policy (national, regional or local exclusive selective or intensive) The choice strategy thus is the method by which the retail buyer evaluates each multiattribute brand alternative and discriminates it from the others in order to arrive at merchandise selection. There are many choice strategies to the retailers 1. Linear additive choice strategy 2. Conjunctive choice strategy 3. Lexicographic choice strategy

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Factors Retailers Use In Choosing Suppliers Accept damaged merchandise returns Has quick and easy ordering procedures Accept unsold merchandise returns Prompt delivery Maintains adequate supply Handles complaints promptly Is known as being honest

Has good reputation Carries large product breadth Provides small lot delivery Offers frequent promotional allowances Requires no minimum order size Makes new products available Has understanding sales representatives Provides adequate margins on suggested list prices Offers quantity discounts Employs well trained sales representatives Offers adequate overall promotional support Provides store displays Has low sales representative turnover Offers promotional advice for specific products .

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Functions Performed By Retailers Following are some of the functions of retailers; 1. Estimation of the probable demand of the consumers for the various types of goods dealt by him. 2. Assembling of various types of goods from different wholesalers 3. Sale of the various products to the consumers as and when needed by them 4. Physical movement of goods from wholesalers godowns to their own establishment in case such a service is not provided by any wholesales 5. Warehousing/storage of goods to maintain uninterrupted supply of goods to the consumers 6. Standardization, grading and pack8ing of goods in consumer packs if necessary 7. Assumption of risk of loss of goods by fire theft deterioration etc so long as they are not disposed of to the consumers 8. Extension of credit to some selected regular customers 9. Providing information about consumer tastes and preferences to

wholesalers/manufacturers Services Rendered by the retailers 1. By holding ready stocks of various commodities required by the consumers retailers relieve the customer s of the need for stocking a wide variety of goods which could be extremely inconvenient and cumbersome. 2. By keeping a good assortment of the varieties of particular products say soaps, toothpaste etc retailers provide a wide range of choice to their customers 3. By proper display of new products the retailers keep the consumer informed about the changing trends in production of different varieties of goods besides helping manufacturers to promote their products.

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4. Retailer vary often guides their customers about the relative merits of the various brands of a particular product and thus helps them in the selection of goods . 5. Retailers may provide special facilities to their customers for example free home delivery extension of credit, after sales service etc.

Type Of retailers There is a wide variety of retail trading establishments They vary from hawkers and peddlers to big departmental stores Hawkers and peddlers move from door to door in residential localities to sell their goods Payment shops traders sell their wares at weekly markets which are very common in rural India and are not uncommon in urban centres for example in Delhi there are weekly markets in all principal localities then there are fixed shop retailers who operate from shops in busy markets or even in residential areas these stores may be either general stores dealing gin a wide variety of goods needs by consumers in their everyday live or may be dealing in a particular item as for example cloth shoes building materials electrical goods confectionery etc stores dealing in a particular line may further dealing in particular line may further specialize, as for example,chidlerns wear in clothing. Th en there may be bigger stores like departmental stores and multiple shops. As all of us are familiar with small scale retail establishment and their modus operandi, we will confine our discussion to limited variety of large- scale establishments. Department Adepartment store is alrge- scale institution comrising a number of department, each department sepecialising in separate line of prodcuts.all these departments are under one roof andone unified control.departmentstoress offer th widest possible choice of products. The consumer can find all what he needs in one store rather than move around from

shop to shop. These storess are located in central palces in big cities so that they are

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easily accessible to customers. Biggest department stores offer a great number of amenities like restaurants, post and telegraph offices, recreation rooms and car parking. A department stores indulges in decentralized buying and centralized selling. In fact, department stores is a medium of mass merchandising. Department stores grew up in developed countries mainly to cater to the requirements of well -to-do people who required articles of high and looked o forward comfortable shopping. But they have also become popular in urban centres in many developing countries. In India too, we find a number of department

storess coming up in urban centres, especially in Metropolitan Cities. Kamalalya of calcutta and akbar rally of Bombay may be cited as examples.

Advantages Deaprtmentstores make shooping convenient to so consumer s by providing them a whole range of goods in one buildingtheir central location attractslarge number of customers leading to a large turnover. This they can afford to make large profits even withsmaller margins. Bulk buying by department stores enables them to obtainhas discounts from manufacturers and thus buy at a cheaper rate. There are savings in freight charges as well.

Department stores can afford to have effective advertising through press, radio and television and thus they are able to attract more and more customers. Being large business, units, department stores can afford to employ skilled and expert staff for all their operations and thus they are able to achieve a high degree

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Handicrafts 2. Experience has shown that operating costs of department stores tend to become very high because of the necessity to run some departments at a loss to attract customers and heavy emphasis in service. As a result more often than not their goods are marked at higher prices. 3. Central location also involves higher rents and thus higher overhands. Central Location may not be convenient to person living in far offplaces, whichmeans that they will make their purchase of articles ofeveryday usefrom nearby shops. However, in recent years, department stores have branched themselves out to suburban areas aswell toreach customers nearer their locations. 4. It may not be possible for customers in general toreceive personal attention, which is possible when they deal with small retailers.

Stores Consumers sometimes joint together to from cooperative societies to sell goods on retail basis. The basic purpose is to eliminatemiddlemen andobtain their requirements at lower price. The capital is subscribed bythe members through the purchaseof shares of small

denominations. Cooperative stores purchase their requirements in bulk, from manufacturers or wholesalers. Thisenables thecooperative stores to sell their products somewhat lower prices than theordinary retailers. The stores usually sell on cash basis and thus avoid the are

loss due to bad debts. Some example of department stores run of cooperative bass

Super Bazar and Central Government Employees Consumercooperatives stores in Delhi in Kamdhenu, TUCS and Amudhan in Madras.

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Advantages 1. Consumer can be sure of the quality of gods in the s e n s e that there is no possibility of an adulteration practiced by some retailers in the Private s ec t or. These stores areable tooffer variousproducts atmore reasonable prices than most retailers. Consumers are assured of availability of certain products even when there is an overallshortage in the market and that too at reasonableprices. Retailers usuallytake advantage of such situation by either increasing prices of earmarking supplies theirfavored customers. Weakness 1. Customers donot patronizethese stores regularly, coming tothese stores only in times of shortages. 2. Large cooperative stores tend to suffer formal drawbacks of bureaucratic management.

In Delhi, the two large cooperative stores mentioned above have usually thrived on the basis of purchases made by Government departments, Governmentscontrolled autonomous institutionsa public sector undertaking. Consumer research The research is done taking the consumer into account.i.e being consumer centric. Nowadays consumers are treated as kings in the market and it is highly important to know about the target audience .To know about the target audience it is very important to know the market and that can be only done when an in-depth research is done taking into account the lifestyle, the psyche of the consumer into account.

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Promotion Nowadays with the increase of competition in the market and the customer being very choosy, in order to attract them companies have started introducing various incentive schemes, these incentive schemes are called as promotion. Nowadays many retail outlets have come with their own membership scheme where if you are a member in that retail outlet you get heavy discounts against your purchases. Strategy It is a step by step process of planning implementing of a game plan in order to increase the market share in comparison to their competitors. Advertising Any paid form of no personal presentation and promotion of Big Bazaar s, goods or servoces by an identified sponsor. Location Another key marketing-mix tool stands for the various activities the company undertakes to make the product accessible and available to target customers. Atlas must identify, recruit, and link various middle-men and marketing facilitators so that its products and service are efficiently supplied to the target market. It must understand the various types of retailers, wholesalers, and physical-distribution firms and how key make their decision. Supply chain Supply chain management is typically viewed to lie between fully vertically integrated firms, where a single firm, and those own the entire material flow where each channel member operates independently. Therefore coordination between the various players in the chain is
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key in its effective management. Different marketing gurus have compared supply chain management to a well-balanced and well-practiced relay team. Such a team is more competitive when each player knows how to be positioned for the hand-off. The relationships are the strongest between players who directly pass the baton, but the entire team needs to make a coordinated effort to win the race.

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INDUSTRY PROFILE

TYPES OF RETAIL FORMAT

Convenience store Chain of stores Franchise Specialty store Departmental store Supermarket Hypermarket Shopping mall Shopping plaza Factory outlet

CONVENIENCE STORE

Ideally located close to residential areas to enable target customers have easy accessibility and select convenient merchandise such as beverages ,ready to eat snacks , grocery etc.

EX;- Friendly neighbour hood grocery stores

CHAIN OF STORES

A single retailer establishes a chain of stores with its exclusive store design, synergistic merchandising plan, promotion and service strategy and so on.

EX;- Raymond chain

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FRANCHISE

Retail stores owned and operated by individual on behalf of and licensed by a big supporting organization.

EX;- Pizza hut, NIIT, Mc Donald s

SPECIALITY STORE

Retail shops displaying merchandise which have narrow product lines specializing in a particular type of merchandise and offering specialized services to customers.

EX;-Park Avenue (By Raymond ,it is a men speciality store)

DEPARTMENTAL STORE

A store having several departments such as clothing, personal care & cosmetics, books and stationaries, house ware goods, electronics etc .All under a single roof, although individually functioning as a strategic business unit (SBU).

EX;-Life style , Pantaloon

SUPERMARKET

A store which is departmentalized, with self service offering groceries, limited non-food items such as health & beauty related items & general merchandise.

EX;- Food world outlets , Nilgiris

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HYPERMARKET

Hypermarket are very large in size, carry grocery , hardware ,appliances and other general merchandise , with self service facilities usually located in warehouse type structure with large parking facilities.

EX;- Big bazaar (Pantaloon Retail India)

SHOPPING MALL

A shopping mall is an arrangement of retail stores and providing the right mix of shopping, food courts & entertainment & parking facilities.

EX;-In Bangalore The Forum , Central ,Sigma mall

SHOPPING PLAZA

The shopping plaza wil be a configuration of many tenants using space of 1000 sq. ft as so far putting up stores within a single building.

EX;-Fountain Plaza

FACTORY OUTLETS

Factory outlets or stores are owned and operated by the manufacturers who sell discounted merchandise or factory seconds or cancelled orders to consumer at low price.

EX;- Bata factory outlet

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COMPANY PROFILE

ABOUT BIG BAZAAR

About Big Bazaar Out let

Chain of Retail store in India 132 out lets Located in India

Parent group Owner Founded Head quarter Industry Website Tag line

Future group Kishore Biyani (CEO) 2001 Jogeswari , Mumbai Retail www.bigbazar.com Is se sasta aur achha kahin nahi.

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 we 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,

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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 your shopping experience.

Big bazaar is the subsidiary of future froup.

About The Future Group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India's leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in over 71 cities and towns and 65 rural locations across India. The group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central. Pantaloon Retail was awarded the International Retailer of the Year 2007, by the US-based National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona.

Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group's core value of 'Indianness'. The group's corporate credo is, 'Rewrite rules, Retain values'.

About FUTURE BAZAR.com

FUTURE BAZAR.com is the e-commerce arm of the Future Group. Future Bazaar provides an integrated shopping site where consumers are able to buy products from our flagship stores including eZone, Pantaloons and Big Bazaar online and get home delivery of products.
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FUTURE BAZAR delivers across more than 1500 cities and towns in India covering 16,000 pin codes. FUTURE BAZAR carries genuine products and offers manufacturer's warranty (as opposed to Seller's warranty) which most other sites offer. FUTURE BAZAR offers products where the complete supply chain is managed by Future Group entities unlike other sites that are marketplaces.

By the virtue of being a part of Future Group, FUTURE BAZAR is able to offer a wide range of genuine products at very competitive prices, confidence of buying from a trusted source and the convenience of returning in our physical stores.

VISION OF BIG BAZAAR-

To deliver everything, everywhere, every time, to every Indian customer in the most profitable manner

CUSTOMER SEGMENTATION

Big bazaar targets higher and upper middle class customer. The large and young working population is a preferred customer segment. Big bazaar specially targets working women.

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FUNCTIONAL DEPARTMENT OF THE ORGANISATION

o HR AND TRAINING o PROJECT AND BUSINESS DEVELOPMENT o COMMERCIAL AND ACCOUNTS o ADMINISTRATION o IT o LEGAL o LOSS PREVENTION AND RISK MANAGEMENT o MARKETING o SUPPLY CHAIN

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Organizational Structure & Organizational Chart

ORGANIZATIONAL STRUCTURE:

CHAIRMAN CEO SUPERMARKET HYPERMARKET 4 REGIONAL HEADS 2 ZONAL HEADS 2 TERRITORY MANAGERS 10 CLUSTOR MANAGERS STORE MANAGERS SUPERVISOR ASSISTANT SUPERVISOR CSA

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ORGANIZATIONAL CHART

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MARKET RESEARCH ON BIG BAZAAR 7 P Analysis of Big Bazaar 7 Ps OR BIG BAZAAR-

Price
Physical Evidence

Place

7 ps
Process

prod uct
Promo tion

People

Product Big Bazaar offers a wide range of products which range from apparels, food, farm products, furniture, child care, toys, etc. Products of all the major brands are available at Big Bazaar. Also, there are many in house brands promoted by Big Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD-players and 25,000 microwave-ovens. In all, the fashion, electronics and travel segments made up about 70% of sales. Last year, these categories made up only about 60%.
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Apparels

Food

Chill station

Denim & t-shirts

Staples

Soft drinks

Formal wear

Ready to eat

Packaged juices

Casual wear

Ready to cook

Milk items

Party wear

International food

Frozen foods

Sarees

Spices

Ice creams

Night wear

Tea and coffees

undergarments

Farm products

Electonic bazaar

Furniture bazaar

personal care

fruits

Tv sets

Living room

Shampoos

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Vegetables

Washing machine

Bedrooms

Soaps

Dairy products

Refrigerator

Kitchen

Creams

Imported fruits

Micro waves

Dining rooms

Home cleaners

Laptops

Paintings

Deodrants

A.C.

Detergents

Child cares &toys

Fashion and jewellery

Others services

Kids wear

Beauty care

Bakery

Toy bazaar

Foot wear bazaar

Mr.right

Stationary

Star parivar

Tulsi

Child care

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DISTRIBUTION CHANNEL

PROMOTION Big Bazaar started many new and innovative cross-sell and up-sell strategies in Indian retail market. The various promotion techniques used at Big Bazaar include saalke sabse saste teen din, Future Card (the card offers 3% discount), Shakti Card, Wednesday bazaar.etc,. Brand Endorsement by M. S. Dhoni, Exchange Offer - Junk Swap Offer, Point-ofPurchase Promotions. Advertising has played a crucial role in building of the brand. Big Bazaar advertisements are seen in print media, TV, Radio (FM) and road-side bill-boards

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Below the line Promotion

Coupon Discount, more of the products at normal price, gift with purchase, competitions and prizes, money back offers and exchange offers, special occasions.

Above the line Promotion

Giving advertisement in news papers, TV, Internet, (own website which gives online shoping services) Partnership with Bigflix, Big FM 92.7

PEOPLE

They are one of the key assets for any organization. The salient features of staff of Big Bazaar are: -

Well-trained staffs, the staff employed by Big-Bazaar are well-suited for modern retail.

Well-dressed staff improves the overall appearance of store. Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so staff is empowered to take innovative steps.

Employs close to 10,000 people and recruits nearly 500 people every month. Use of technology like scenario planning for decision making. Multiple counters for payment, staff at store to keep baggage and security guards at every gate, makes for a customer-friendly atmosphere
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PROCESS The goods dispatch and purchasing area has certain salient features which include: Multiple counters with trolleys to carry the items purchased. Proper display / posters of the place like (DAL, SOAP, etc.). Home delivery counters also started at many places.

PHYSICAL EVIDENCE

It deals with the final deliverable or the display of written facts. This includes the current system and available facilities. PORTERS FIVE FORCE MODEL

1. Our competitors

Relience retail, adityabirla group, vishal retail, Bharti&walmart

International players looking to foray india 2. Threats of entrants Domestic conglomerates looking o retail chains

Unorganized retail 3. Threats of substitutes Consumer are price sensitive 4.Bargaining power of buyers Availability of more choices

The unorganized sector have dominant position 5. Bargaining power of suppliers

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COMPETITORS

COMPETITORS OF BIG BAZAAR: 1) RELIANCE FRESH

Reliance Fresh is the convenience store format which forms part of the retail business of of Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to invest in excess of Rs 25000 crores in the next 4 years in their retail division. The company already has in excess of 560 reliance fresh outlets across the country. These stores sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products.

A typical Reliance Fresh store is approximately 3000-4000 square. feet and caters to a catchment area of 1-2 km.

Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various

formats that Reliance has rolled out.

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2) SPENCERS RETAIL:

Spencer's Retail is one of Indias fastest growing retail stores. It has multiple formats for retailing food, apparel, fashion, electronics, lifestyle products, music and books.

It is owned by the RPG Group, a major business house. Established in 1996, Spencers is one of the popular destination for shoppers in India with supermarkets, hypermarkets and dailies spread all over India.

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3) SUBHIKSHA :

Subhiksha is an Indian retail chain with more than 1400 outlets selling groceries, fruits, vegetables, medicines and mobile phones. It was started and is managed by R Subramaniam, IIM Ahmedabad alumni. Subhiksha plans to open 1000 outlets by December 2008. He also plans to invest Rs.500 crore to increase the number of outlets to 2000 across the country by 2009. The name Subhiksha means prosperity in Sanskrit. It opened its first store in Thiruvanmiyur in Chennai in March, 1997 with an investment of about Rs. 5 lakhs. The retail chain has seen a considerable growth by offering goods at cheaper rates and thereby increasing its customer base.

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4) Trent (Westside) :

Trent is the retail arm of the Tata group. Started in 1998, Trent operates Westside, one of the many growing retail chains in India. The foresight of the Tata group, which invested in retail relatively early is paying high dividends as retail is one of the booming sectors in India. The company has a turnover of Rs. 357.6 crores (FY 2011-2012) and currently operates 22 stores in the major metros and mini metros of India. An international shopping experience, a perception of values, and offering the latest styles, has created a loyal following for Westside's own brand of merchandise. Westside operates stores in Mumbai, Ahmedabad, Bangalore, Delhi, Chennai, Kolkata, Hyderabad, Pune, Surat, Vadodara, Indore, Noida, Gurgaon, Ghaziabad, Mysore, Jaipur, Lucknow, Nagpur.
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5) BhartiWalmart

BhartiWalmart Private Limited is a joint venture between Bharti Enterprises, one of India's leading business groups with interests in telecom, agri-business, insurance and retail, and Wal-Mart, the worlds leading retailer, renowned for its efficiency and expertise in logistics, supply chain management and sourcing. The joint venture is establishing wholesale cash-andcarry stores and back-end supply chain management operations in line with Government of India guidelines. Under the agreement, Bharti and Walmart hold 50:50 stakes in BhartiWalmart Private Limited.The first Wholesale Cash-and-carry facility named "Best Price Modern Wholesale" Opened in Amritsar in May 2009 and subsequently in Zirakpur (Near Chandigarh), Jalandhar, Kota, Bhopal, Ludhiana, Raipur, Indore, Vijaywada, Meerut, Agra, Lucknow, Jammu, Guntur, Aurangabad ,Bathinda, Amravati ,Hyderabad and Rajahmundry.

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SWOT ANALYSIS

Strengths Vast range of products under one roof helping in attracting customer and their family to shop together and enjoy the experience. Benefit of early entry into retail industry. Diversified business operating all over India in various retail formats. Ability to get products from suppliers at discounted price due to scale of business.

Weakness High cost of operation due to large fixed cost. Very thin Margin. High attrition rate of employees.

\Opportunities Lot of potential in the rural market. Can expand the business in smaller cities as there is a lot of opportunity.

Threats Lot of competitors coming up to tap the market. Margin of business reducing all the time.

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OBJECTIVES OF THE STUDY The purpose of research is to discover answers to the questions through the application of scientific procedure. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Each research study has its own specific purpose, we may think of research objectives as failing into a number of following broad grouping1. To study the consumer perception towards Big Bazaar 2. To analyze the company profile of Big Bazaar 3. To understand the various products and services of Big Bazaar. 4. To understand the different marketing strategies being followed by Big Bazaar. 5. To learn their marketing mix. 6. Proper understanding and analysis of Big Bazaar 7. Conduct a survey on a sample selected from the customers of Big Bazaar and to obtain their opinions 8. To know the strategy to make a customer retention. 9. To know the consumers expectations from Big Bazaar.

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RESEARCH METHODOLOGY Research Research is a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. Redman and Mory defines research, As a systematic effort to gain new knowledge. According to Clifford Woody research comprises defining and redefining problems, formulating hypothesis or suggested solution; collecting, organizing and evaluating data; making deduction and reaching conclusion and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis.

Research Process Research process consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps. The following order concerning various steps provides a useful procedural guideline regarding the research process: 1. Formulating the research problemThere are two types of research problems viz., those which relate to states of nature and those which relate to relationship between variables. At the very outset the researcher must single out the problem he wants to study i.e. he must decide the general area of interest or aspect of a subject manner that he wants to study. 2. Extensive literature survey-

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Once the problem is formulated, a brief summary of it should be written. It is compulsory for a research worker writing a hypothesis. At this juncture the researcher should undertake extensive literature summary. 3. Development of working hypothesisAfter second step, researcher should state in clear terms the working hypothesis. Working hypothesis is tentative assumption made in order to draw out and test its logical or empirical consequences. 4. Preparing research designAfter developing hypothesis, we prepare the research design according to our hypothesis of problem. 5. Determining sample designThe researcher must decide the way of selecting a sample of what is popularly known as the sample design. There are different types of sample designs. Simple random sampling Systematic sampling Stratified sampling Quota sampling Cluster sampling Sequential sampling

6. Collecting the data After using sampling technique, the researcher should collect the primary and secondary data.

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7. Execution the projectExecution of the project is very important step in the research process. If the execution of the project proceeds on correct lines, the data to be collected would be adequate and dependable. The researcher should see that the project is executed in a systematic manner and in time. 8. Analysis of dataAfter the data have been collected, the researcher turns to the task of analyzing them. The analysis of data requires a number of closely related operations such as establishments of categories, the application of these categories to raw data through coding, tabulation, and then drawing statistical inferences. 9. Hypothesis testing After analysis of data as stated above, the researcher is in the position to test the hypothesis. 10. Generalizations and interpretations If a hypothesis is tested and upheld several times, it may be possible for the researcher to arrive as generalization, i.e. to build a theory. If the researcher had no hypothesis to start with, he might seek to explain his findings on the basis of some theory. It is known as interpretation. 11. Preparation the report of the thesisFinally, the researcher has to prepare the report of what has been done by him.

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Research Methodology Research methodology is a way to systematically solve the research problems. It may be understood as a science of studying how research is done scientifically. Research Design A research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible yielding maximal information with minimal expenditure of effort, time and money. Types of Research design There are three types of res design1. Exploratory 2. Descriptive 3. Experimental

Descriptive research includes surveys and facts findings enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present.

Sampling Design Sampling technique is the procedure of selection of respondents from the population.

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Types of Sampling Two types of sampling design is there. 1. Nonprobability Non probability sampling is that procedure which does not afford any basis for estimating the probability that each item in the population has of being included in the sample. It is also called as deliberate, purposive, judgments sampling. 2. Probability samplingIs also known as random sampling or chance sampling. Under this design, every item of the universe has an equal chance of inclusion in the sample.

Data collection In dealing with any real life problem it is often found that data in hand are inadequate , and hence it becomes necessary to collect data that are appropriate .there are several technique of collecting the data.

Types of data The type of data that has to be collected for completion of any type of research. Secondary data

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Tools and technique for data collection Secondary data can be collected through the newspaper, journal, existing our research. Survey area Survey area is that place from where the samples are drawn for the study.

Sample size Sample size is the number of samples which are drawn from the population for the study.

Research methodology for this study: Research design Descriptive Research Sampling design Simple Random Sampling (Probability Sampling) Secondary data collection tool Websites, News papers

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CONCLUSION

While writing this project report, I got myself confronted with the question of whether the shopping mall has regionalized to the Indian conditions whether it has transformed itself according to the existing Indian user habits. And if it has then, what are the criteria in which shopping mall has regionalized? After completing the detailed study of the Big Bazaar, I found that there is only marginal regiorialization has happened in the architecture of the Big Bazaar. Most of the aspects of the shopping mall hasnt really adapted or taken reference from the existing Indian market place. This fixed nature of certain criterias of shopping mall also has something to do with the fact that there are some characteristics which if taken away from the shopping mall, then the market left wont be a shopping mall. Certain characteristics like overall bowl-like structure, verticality, internal environment etc. are some of the criteria are which if taken away from the Big Bazaar, then it wont really be a Big Bazaar Looking at each criterion separately and testing it with the Indian scenario, I found that the Big Bazaar havent really regionalized in terms of the user habits of the Indian customer except in the fact that all the shops are not exactly sales man free. Even in this criteria, the shopping mall havent regionalized completely. There is a mix of shops out of which some have the salesman and some havent, the shops selling fast moving consumer products also have the salesman which is a regional phenomenon. The Indian people like to buy the things on the advice of the salesman as they are better known to all the products available. It also creates an intimate place. The Big Bazaar havent really regionalized in their zoning and functional distribution. But, they seem to have taken reference from the Indian market place while placing them. For

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example, the placing of specialized products together is very common in Indian market places and the placing of informal activities in the centre and not the FMCG is also a sign of regionalization. But, on the whole the shopping malls havent fully taken into account the Indian shopping environment.

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SUGGESTIONS AND RECOMMENDATIONS 1. Company need to spend a lot on advertising and promotion to create brand image of its product. 2. Make frequent advertisements in both print and electronic media. 3. Making stalls in corporate melas like trade fair, maybe beneficial to create brand image of its product. 4. Need to provide additional offers and discounts as per customer requirements. 5. Need to include varieties of similar item. 6. Provide more discounts on FMCG. 7. Provide better customer service. 8. Maintained proper display to create impulse. (It is assumed that near about 70% sales comes from impulse marketing and if proper display is not maintained impulse cannot be created). 9. Better if we provide filtered information about More Megastore.

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BIBLIOGRAPHY The data has been collected from the following sources . Kothari, C.R., Research Methodology, Second Revised Edition, New age International Publishers, 2004, New Delhi. Malhotra, Naresh K., Marketing Research, Fifth Edition, Pearson Education, 2008, New Delhi

WEB SITES www.google.com www.futuregroup.com www.bigbazaar.com www.morestore.com

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