Beruflich Dokumente
Kultur Dokumente
REPORT ON
Company Guide
Institute Guide
Submitted By
Name :
PSI NO:..
Batch:
ACKNOWLEDGEMENT
I take this as an opportunity to thank with bottom of my heart all those without
whom the journey of doing my project would not have been as pleasant as it
has been to me. Working on my project was a constant learning experience
with all sweat and tear which was its due but not without being richly
stimulating experience of life time.
I am very thankful to MR. ------------------------ ( Company guide) for giving me
their valuable advice and guidance towards fulfillment of the project
For any project to be a success, it is very important to get the right guidance
and support which I got from my Faculty Guide PROF. ------------------------------- I express my gratitude to my faculty guide for inspiring me throughout the
project.
Finally I would like to convey my heartiest thanks to all my well wishers for
their blessing and co-operation throughout my study. They boosted me up
every day to work with a new and high spirit.
CONTENTS
Acknowledgment3
Executive summary6
Objective of the study....9
CHAPTER-I
7-10
,,
i)
Introduction
ii)
iii)
iv)
Importance of study
v)
Research Methodology
10
CHAPTER-II
i)
ii)
iii)
iv)
v)
vi)
11-43
12
14
15
17
18
21
27
31
CHAPTER-III
43-69
i)
Data collection
43
ii)
46
CHAPTER-IV
69-74
3
i)
Findings of research
69
ii)
Recommendations
70
iii)
70
CHAPTER-V
i)
74-75
61
ANNEXURE(S)
i)
Questionnaire
Bibliography
62
62
67
EXECUTIVE SUMMARY
The report will help in understanding the concept of Project financing, its
methods and needs in the form of different committee recommendations.
Further this report is divided into various chapters depicting the study done.
Chapter 1 contains the basic introduction of the retail sector and the
introduction about the company, scope and also the importance of the study.
It also includes the research methodology. It gives the overall view of the
report.
Chapter 2 contains the theoretical perspective. Theoretical perspective is a
wide topic, giving the details of the project.
Chapter 3 contains the data which was collected and also the analysis and
the interpretations completed. This is the data collected from a sample size of
30 customers
Chapter 4 contains the findings of the research, recommendations and the
conclusion part of the previous chapter. It also contains the task assigned and
the learning part of the internship
Chapter 5 contains the limitations of the study.
Further the report concludes key learnings from summer Internship project,
experiences and conclusion of the report.
In this study I will try to find out the present scenario of retail market in India.
This project will give focus on the global scene to retail industry and what will
drive the growth of industry in the future.
CHAPTER - I
i)
Introduction
ii)
iii)
vi)
Importance of study
INTRODUCTION
1. To find out the buying behavior of the customers coming in to Big Bazaar in
Lucknow.
2. To determine the current status of Big Bazaar.
3. To find out the customers response towards Big Bazaar.
4. To study the satisfaction level of customers in different attributes of Big
Bazaar.
5. To identify main competitors of Big Bazaar.
SCOPE OF STUDY
The scope of this research is to identify the buying behavior of customers of
Big Bazaar in Lucknow. This research is based on primary data and
secondary data. Due to time constraint only limited number of persons
contacted. This study only focuses on urban buying behavior of customers
because the research conducted in Lucknow. The study does not say
anything about rural buying behavior of customer because rural
norms/status/attitude & acceptance of the rural customers differs with urban
customers. The scope of research is limited for Lucknow. It provides help to
further the research for organized retail sector in Lucknow. It aims to
understand the skill of the company in the area like technological
advancement, competition in management.
IMPORTANCE OF STUDY
The study shows customers buying pattern with Big Bazaar in Lucknow. Its
provide guideline for further research in Lucknow for organized retail.
Research says about customer buying behavior towards Big Bazaar in
Lucknow. The study shows rate of customer satisfaction level with Big Bazaar
for Lucknow. The research is also important to identify Market size, growth
8
and Market Potential of Big Bazaar in Lucknow. The research shows future
Scenario of Big Bazaar in current perspective. The study shows Opportunities
and challenges for Big Bazaar respect of internal & external environment.
Research says about main competitors in the field of organized retail sectors.
The study provide guideline to further extension of Big Bazaar in Lucknow
.The study provide help to know the customers satisfaction with Big Bazaar
stores.
RESEARCH METHODOLOGY
Technology, customers tastes and preferences play a vital role in todays
generation. Research Methodology is a set of various methods to be followed
to find out various information regarding market strata of different products.
Research Methodology is required in every industry for acquiring knowledge
of their products.
AREA OF STUDY
The study is exclusively done in the area of marketing. It is a process
requiring care, sophistication, experience, business judgment, and
imagination for which there can be no mechanical substitutes.
Research Design
Exploratory research
Sampling Design:
Non Probability sampling - Convenience sampling
Sample Size:
100 Customers who visited store
Data Collection:
Data is collected from 100 customers through personal interaction. Specific
questionnaire is prepared for collecting data. Data is collected with mere
interaction and formal discussion with different respondents. Some other
relevant information collected through secondary data
TOOLS OF ANALYSIS:
The market survey about the techniques of marketing and nature of
expenditure is carried out by personally interacting with the potential
customers in Big Bazaar.
CHAPTER-II
Theoretical Perspective
10
Theoretical Perspective
Retailing
The Indian consumer could well be crowned King with all economic indicators
in the right place. Queuing up for the coronation ceremony are a multitude of
global companies that are looking at India as the next consumer market
powerhouse. And it seems to be the retail sector that will give the desi
consumer royal status. Retailing is the final step in the distribution of
merchandise, the last link in supply chain connecting the bulk procedures of
commodities to the final consumers. Retailing in India is thoroughly
unorganized. There is no supply chain management perspective. According to
a survey b y AT Kearney, an overwhelming proportion of the Rs. 400,000
crore retail market is UNORGANISED. In fact, only a Rs. 20,000 crore
segment of the market is organized.
Many top developers are now toying with the idea of developing specialty
malls. Specialty malls are already a success in the West, whereas the
concept is in its infancy in India. One could venture so far as to say specialty
and theme based retailing will drive the growth of organized retailing in India.
Organized Retailing:
Organized retailing got a leg up with the opening of new format stores, rapid
growth of existing players, start-up of new-generation shopping malls, the
Government's intention of allowing a certain level of foreign direct investment
in retail and the formation of a retailers' association. With consumer sentiment
positive during most of 2004, it led to substantial spending across a number of
categories such as consumer durables, clothing and lifestyle, automobiles and
telecom products. At the beginning of this decade, organized retailing
accounted for a mere $2.9 billion in India. This is only 1.25 per cent of the
estimated total retail market. This share has already grown to 2 per cent.
Growth projections for retail business vary widely. Some studies estimate that
by 2007, the share of organized retail in the retail pie will jump three times to
reach 5-6 per cent.
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Retail in India is largest industry accounting for over 10% of the country GDP
and around 8% of the employment. Retail industry in India is at the cross
road. It has emerged as one of the most dynamic and fast paced industries
with several players entering the market. The future is promising the market is
growing government policies are becoming more favorable and emerging
technology and facilitating operations.
Some key facts retail in India largest industry accounting for over 10% of the
country GDP and around 8% of the employment.
The market size of Indian retail industry is about US $ 312 billion.
Indian Retail Industry Analysis
India's retailing industry is essentially owner manned small shops. In 2010,
larger format convenience stores and supermarkets accounted for about 4%
of the industry, and these were present only in large urban centers. India's
retail and logistics industry employs about 40 million Indians (3.3% of Indian
population).
Until 2011, Indian central government denied foreign direct investment (FDI)
in multibrand retail, forbidding foreign groups from any ownership in
supermarkets, convenience stores or any retail outlets. Even single-brand
retail was limited to 51% ownership and a bureaucratic process.
In November 2011, India's central government announced retail reforms for
both multi-brand stores and single-brand stores. These market reforms paved
the way for retail innovation and competition with multi-brand retailers such as
Walmart, Carrefour and Tesco, as well single brand majors such as IKEA,
Nike, and Apple. The announcement sparked intense activism, both in
opposition and in support of the reforms. In December 2011, under pressure
from the opposition, Indian government placed the retail reforms on hold till it
reaches a consensus.
In January 2012, India approved reforms for single-brand stores welcoming
anyone in the world to innovate in Indian retail market with 100% ownership,
but imposed the requirement that the single brand retailer source 30% of its
goods from India. Indian government continues the hold on retail reforms for
multi-brand stores.
IKEA announced in January that it is putting on hold its plan to open stores in
India because of the 30% requirement. Fitch believes that the 30%
requirement is likely to significantly delay if not prevent most single brand
majors from Europe, USA and Japan from opening stores and creating
associated jobs in India.
1. Franchise Agreements
It is an easiest track to come in the Indian market. In franchising and
commission agentsservices, FDI (unless otherwise prohibited) is allowed with
the approval of the Reserve Bank of India (RBI) under the Foreign Exchange
Management Act. This is a most usual mode for entrance of quick food
bondage opposite a world. Apart from quick food bondage identical to Pizza
13
a) FDI up to 100% for cash and carry wholesale trading and export trading
allowed under the automatic route.
b) FDI up to 51 % with prior Government approval (i.e. FIPB) for retail trade of
Single Brand products, subject to Press Note 3 (2006 Series)
c) FDI is not permitted in Multi Brand Retailing in India.
FDI in Multi-Brand Retail:
The government has also not defined the term Multi Brand. FDI in Multi Brand
retail implies that a retail store with a foreign investment can sell multiple
brands under one roof.
In July 2010, Department of Industrial Policy and Promotion (DIPP), Ministry
of Commerce circulated a discussion paper on allowing FDI in multi-brand
retail. The paper doesnt suggest any upper limit on FDI in multi-brand retail. If
implemented, it would open the doors for global retail giants to enter and
establish their footprints on the retail landscape of India. Opening up FDI in
multi-brand retail will mean that global retailers including Wal-Mart, Carrefour
and Tesco can open stores offering a range of household items and grocery
directly to consumers in the same way as the ubiquitous kirana store.
Structure of Indian Retail Sector:
Definition of Retail
In 2004, The High Court of Delhi defined the term retail as a sale for final
consumption in contrast to a sale for further sale or processing (i.e.
wholesale) thus, retailing can be said to be the interface between the
producer and the individual consumer buying for personal consumption. This
excludes direct interface between the manufacturer and institutional buyers
such as the government and other bulk customers. Retailing is the last link
that connects the individual consumer with the manufacturing and distribution
chain. A retailer is involved in the act of selling goods to the individual
consumer at a margin of profit.
Division of Retail Industry Organized and Unorganized Retailing
The retail industry is mainly divided into: - 1) Organized and 2) Unorganized
Retailing
Organized retailing refers to trading activities undertaken by licensed retailers,
that is, those who are registered for sales tax, income tax, etc. These include
the corporate-backed hypermarkets and retail chains, and also the privately
owned large retail businesses.
Unorganized retailing, on the other hand, refers to the traditional formats of
low-cost retailing, for example, the local kirana shops, owner manned general
stores, paan/beedi shops, convenience stores, hand cart and pavement
vendors, etc.
The Indian retail sector is highly fragmented with 97 per cent of its business
being run by the unorganized retailers. The organized retail however is at a
very nascent stage. The sector is the largest source of employment after
agriculture, and has deep penetration into rural India generating more than 10
per cent of Indias GDP.
Advantages of conventional and modern organized retail reforms:
Conventional Modern Organized
15
also contributes to the spiral of growth in this sector. Furthermore, the Internet
revolution is making the Indian consumer more accessible to the growing
influences of domestic and foreign retail chains.
One report estimates the 2011 Indian retail market as generating sales of
about $470 billion a year, of which a miniscule $27 billion comes from
organized retail such as supermarkets, chain stores with centralized
operations and shops in malls. The opening of retail industry to free market
competition, some claim will enable rapid growth in retail sector of Indian
economy. Others believe the growth of Indian retail industry will take time,
with organized retail possibly needing a decade to grow to a 25% share.
A 25% market share, given the expected growth of Indian retail industry
through 2021, is estimated to be over $250 billion a year: revenue equal to the
2009 revenue share from Japan for the world's 250 largest retailers.
The Economist forecasts that Indian retail wills nearly double in economic
value, expanding by about $400 billion by 2020.The projected increase alone
is equivalent to the current retail market size of France.
In 2011, food accounted for 70% of Indian retail, but was under-represented
by organized retail. A.T. Kearney estimates India's organized retail had a 31%
share in clothing and apparel, while the home supplies retail was growing
between 20% - 30% per year. These data correspond to retail prospects prior
to November announcement of the retail reform.
Challenges of Retailing in India:
In India the retailing industry has a long way to go and to become a truly
flourishing industry, retailing needs to cross various hurdles. The first
challenge facing the organized retail sector is the competition from
unorganized sector. Needless to say, the Indian retail sector is
overwhelmingly swarmed by the unorganized retailing with the dominance of
small and medium enterprises in contradiction to the presence of few giant
corporate retailing outlets.
The trading sector is also highly fragmented, with a large number of
intermediaries who operate at a strictly local level and there is no barrier to
entry, given the structure and scale of these operations. The tax structure in
India favors small retail business. Organized retail sector has to pay huge
taxes, which is negligible for small retail business. Thus, the cost of business
operations is very high in India. Developed supply chain and integrated IT
management is absent in retail sector. This lack of adequate infrastructure
facilities, lack of trained work force and low skill level for retailing management
further makes the sector quite complex. Also, the intrinsic complexity of
retailing- rapid price changes, threat of product obsolescence, low margins,
high cost of real estate and dissimilarity in consumer groups are the other
challenges that the retail sector in India is facing.
The status of the retail industry will depend mostly on external factors like
Government regulations and policies and real estate prices, besides the
activities of retailers and demands of the customers also show impact on retail
industry. Even though economy across the globe is slowly emerging from
recession, tough times lie ahead for the retail industry as consumer spending
17
still has not seen a consistent increase. In fact, consumer spending could
contract further as banks have been overcautious in lending. Thus, retailers
are witnessing an uphill task in terms of wooing consumers, despite offering
big discounts. Additionally, organized retailers have been facing a difficult time
in attracting customers from traditional kirana stores, especially in the food
and grocery segment.
Indian retail industry:
While in some sectors the restrictions imposed by the government are
comprehensible; the restrictions imposed in few others, including the retail
sector, are utterly baseless and are acting as shackles in the progressive
development of that particular sector and eventually the overall development
of the Indian Inc. The scenario is kind of depressing and unappealing, since
despite the on-going wave of incessant liberalization and globalization, the
Indian retail sector is still aloof from progressive and ostentatious
development. This dismal situation of the retail sector undoubtedly stems from
the absence of an FDI encouraging policy in the Indian retail sector.
Also FDI encouraging policy can remove the present limitations in Indian
system such as
1. Infrastructure
There has been a lack of investment in the logistics of the retail chain, leading
to an inefficient market mechanism. Though India is the second largest
producer of fruits and vegetables (about 180 million MT), it has a very limited
integrated cold-chain infrastructure, with only 5386 stand-alone cold storages,
having a total capacity of 23.6 million MT. 80% of this is used only for
potatoes. The chain is highly fragmented and hence, perishable horticultural
commodities find it difficult to link to distant markets, including overseas
markets, round the year. Storage infrastructure is necessary for carrying over
the agricultural produce from production periods to the rest of the year and to
prevent distress sales. Though FDI is permitted in cold-chain to the extent of
100%, through the automatic route, in the absence of FDI in retailing; FDI flow
to the sector has not been significant.
2. Intermediaries dominate the value chain
Intermediaries often flout mandi norms and their pricing lacks transparency.
Wholesale regulated markets, governed by State APMC Acts, have
developed a monopolistic and non-transparent character. According to some
reports, Indian farmers realize only 1/3rdof the total price paid by the final
consumer, as against 2/3rdby farmers in nations with a higher share of
organized retail.
3. Improper Public Distribution System (PDS)
There is a big question mark on the efficacy of the public procurement and
PDS setup and the bill on food subsidies is rising. In spite of such heavy
subsidies, overall food based inflation has been a matter of great concern.
The absence of a farm-to fork retail supply system has led to the ultimate
customers paying a premium for shortages and a charge for wastages.
4. No Global Reach
18
The Micro Small & Medium Enterprises (MSME) sector has also suffered due
to lack of branding and lack of avenues to reach out to the vast world markets.
While India has continued to provide emphasis on the development of MSME
sector, the share of unorganized sector in overall manufacturing has declined
from 34.5% in1999-2000 to 30.3% in 2007-08. This has largely been due to
the inability of this sector to access latest technology and improve its
marketing interface. Thus the rationale behind allowing FDI in Indian retail
sector comes from the fact, that it will act as a powerful catalyst to spur
competition in retail industry, due to current scenario of above listed
limitations, low completion and poor productivity.
Permitting foreign investment in food-based retailing is likely to ensure
adequate flow of capital into the country & its productive use, in a manner
likely to promote the welfare of all sections of society, particularly farmers and
consumers. It would also help bring about improvements in farmer income &
agricultural growth and assist in lowering consumer prices inflation.
Apart from this, by allowing FDI in retail trade, India will significantly flourish in
terms of quality standards and consumer expectations, since the inflow of FDI
in retail sector is bound to pull up the quality standards and costcompetitiveness of Indian producers in all the segments. It is therefore
obvious that we should not only permit but encourage FDI in retail trade.
Lastly, it is to be noted that the Indian Council of Research in International
Economic Relations (ICRIER), a premier economic think tank of the country,
which was appointed to look into the impact of BIG capital in the retail sector,
has projected the worth of Indian retail sector to reach $496 billion by 2011-12
and ICRIER has also come to conclusion that investment of big money
(large corporate and FDI) in the retail sector would in the long run not harm
interests of small, traditional, retailers.
In light of the above, it can be safely concluded that allowing healthy FDI in
the retail sector would not only lead to a substantial surge in the countrys
GDP and overall economic development, but would inter alia also help in
integrating the Indian retail market with that of the global retail market in
addition to providing not just employment but a better paying employment,
which the unorganized sector (kirana and other small time retailing shops)
have undoubtedly failed to provide to the masses employed in them.
Industrial organizations such as CII, FICCI, US-India Business Council
(USIBC), the American Chamber of Commerce in India, The Retail
Association of India (RAI) and Shopping Centers Association of India (a 44
member association of Indian multiband retailers and shopping malls) favors a
phased approach toward liberalizing
FDI in multi-brand retailing and most of them agree with considering a cap of
per cent to start with the international retail players such as Walmart,
Carrefour, Metro, IKEA, and TESCO share the same view and insist on a
clear path towards 100 per cent opening up in near future. Large multinational
retailers such as US-based Walmart, Germanys Metro AG and Woolworths
Ltd, the largest Australian retailer that operates in wholesale cash-and-carry
19
ventures in India, have been demanding liberalization of FDI rules on multibrand retail for some time.
Challenges and Attractions for Global Retailers:
Challenges:
History has witnessed that the concern of allowing unrestrained FDI flows in
the retail sector has never been free from controversies and simultaneously
has been an issue for unsuccessful deliberation ever since the advent of FDI
in India. Where on one hand there has been a strong outcry for the
unrestricted flow of FDI in the retail trading by an overwhelming number of
both domestic as well as foreign corporate retail giants; to the contrary, the
critics of unrestrained FDI have always fiercely retorted by highlighting the
adverse impact, the FDI in the retail trading will have on the unorganized retail
trade, which is the source of employment to an enormous amount of the
population of India. The antagonists of FDI in retail sector oppose the same
on various grounds, like, that the entry of large global retailers such as WalMart would kill local shops and millions of jobs, since the unorganized retail
sector employs an enormous percentage of Indian population after the
agriculture sector; secondly that the global retailers would conspire and
exercise monopolistic power to raise prices and monopolistic (big buying)
power to reduce the prices received by the suppliers; thirdly, it would lead to
asymmetrical growth in cities, causing discontent and social tension
elsewhere. Hence, both the consumers and the suppliers would lose, while
the profit margins of such retail chains would go up. Many trading
associations, political parties and industrial associations have argued against
FDI in retailing due to various reasons. It is generally argued that the Indian
retailers have yet to consolidate their position. The existing retailing scenario
is characterized by the presence of a large number of fragmented families
owned businesses, which would not be able to survive the competition from
global players.
The examples of south East Asian countries show that after allowing FDI, the
domestic retailers were marginalized and this led to unemployment. Another
apprehension is that FDI in retailing can upset the import balance, as large
international retailers may prefer to source majority of their products globally
rather than investing in local products. The global retailers might resort to
predatory pricing. Due to their financial clout, they often sell below cost in the
new markets. Once the domestic players are wiped out of the market foreign
players enjoy a monopoly position which allows them to increase prices and
earn profits. Indian retailers have argued that since lending rates are much
higher in India, Indian retailers, especially small retailers, are at a
disadvantageous position compared to foreign retailers who have access to
International funds at lower interest rates. High cost of borrowing forces the
domestic players to charge higher prices for the products. Another argument
against FDI is that FDI in retail trade would not attract large inflows of foreign
investment since very little investment is required to conduct retail business.
Goods are bought on credit and sales are made on cash basis.
20
were dropped from the Sears line. This could also be seen in case of Walmart
that places strict control on its suppliers. A contract with a big retailer like
Walmart can make or break a small supplier. In retail industry suppliers tend
to have very little power.
3. Power of Buyers:
Individually, consumers have very little bargaining power with retail stores. It
is very difficult to bargain with the clerk at Big Bazaar for better price on
grapes. But as a whole if customers demand high-quality products at bargain
prices, it helps keep retailers honest. Taking this from Porters side of the coin
we can say customers have comparatively high bargaining power in
unorganized sector than in organized sector. As the customer will demand
products from organized units he will be more focused towards quality aspect.
4. Availability of Substitutes:
The tendency in retail is not to specialize in one good or service, but to deal in
wide range of products and services. This means what one store offers is
likely to be same as that offered by another store. Thus threat from substitutes
is high.
5. Competitive Rivalry:
21
Retailers always face stiff competition and must fight with each other for
market share and also with unorganized sector. More recently, they have tried
to reduce cut throat pricing competition by offering frequent flier points,
memberships and other special services to try and gain the customers
loyalty. Thus retailers give each other stiff but healthy competition which is
evident from their aggressive marketing strategies and segment policies. The
arguments offered by critics against the retail sector reforms focus on one or
more of the following points
Independent stores will close, leading to massive job losses. Walmart
employs very few people in the United States. If allowed to expand in
India as much as Walmart has expanded in the United States, few
thousand jobs may be created but millions will be lost.
Walmart will lower prices to dump goods, get competition out of the
way, become a monopoly, and then raise prices. We have seen this in
the case of the soft drinks industry. Pepsi and Coke came in and wiped
out all the domestic brand
India doesn't need foreign retailers, since home grown companies and
traditional markets may be able to do the job.
Work will be done by Indians, profits will go to foreigners.
Remember East India Company. It entered India as a trader and then
took over politically.
There will be sterile homogeneity and Indian cities will look like cities
anywhere else.
The government hasn't built consensus.
Supporters claim none of these objections has merit. They claim:
Organized retail will need workers. Walmart employs 1.4 million people in
United States alone. With United States population of about 300 million, and
India's population of about 1200 million, if Walmart-like retail companies were
to expand in India as much as their presence in the United States, and the
staffing level in Indian stores kept at the same level as in the United States
stores, Walmart alone would employ 5.6 million Indian citizens. In addition,
millions of additional jobs will be created during the building of and the
maintenance of retail stores, roads, cold storage centers, software industry,
electronic cash registers and other retail supporting organizations. Instead of
job losses, retail reforms are likely to be massive boost to Indian job
availability.
India needs trillions of dollars to build its infrastructure, hospitals, housing and
schools for its growing population. Indian economy is small, with limited
surplus capital. Indian government is already operating on budget deficits. It is
simply not possible for Indian investors or Indian government to fund this
expansion, job creation and growth at the rate India needs. Global investment
capital through FDI is necessary. Beyond capital, Indian retail industry needs
knowledge and global integration. Global retail leaders, some of which are
partly owned by people of Indian origin can bring this knowledge. Global
integration can potentially open export markets for Indian farmers and
producers. Walmart, for example, expects to source and export some $1
22
billion worth of goods from India every year, since it came into Indian
wholesale retail market. Walmart, Carrefour, Tesco, Target, Metro, Coop are
some of over 350 global retail companies with annual sales over $1 billion.
These retail companies have operated for over 30 years in numerous
countries. They have not become monopolies. Competition between Walmartlike retailers has kept food prices in check. Canada credits their very low
inflation rates to Walmart effect.
Anti-trust laws and state regulations, such as those in Indian legal code, have
prevented food monopolies from forming anywhere in the world. Price inflation
in these countries has been 5 to 10 times lower than price inflation in India.
The current consumer price inflation in Europe and the United States is less
than 2%, compared to India's double digit inflation.
Comparing 21st century to 18th century is inappropriate. Conditions today are
not same as in the 18th century. India wasn't a democracy then, it is today.
Global awareness and news media were not the same in 18th century as
today. Consider China today. It has over 57 million square feet of retail space
owned by foreigners, employing millions of Chinese citizens. Yet, China hasn't
become a vassal of imperialists. It enjoys respect from all global powers.
Other Asian countries like Malaysia, Taiwan, Thailand and Indonesia see
foreign retailers as catalysts of new technology and price reduction; and they
have benefitted immensely by welcoming FDI in retail. India too will benefit by
integrating with the world, rather than isolating itself.
With 51% FDI limit in multi-brand retailers, nearly half of any profits will
remain in India. Any profits will be subject to taxes, and such taxes will reduce
Indian government budget deficit
States have a right to say no to retail FDI within their jurisdiction.
States have the right to add restrictions to the retail policy announced before
they implement them. Thus, they can place limits on number, market share,
style, diversity, homogeneity and other factors to suit their cultural
preferences. Finally, in future, states can always introduce regulations and
India can change the law to ensure the benefits of retail reforms reach the
poorest and weakest segments of Indian society, free and fair retail
competition does indeed lead to sharply lower inflation than current levels,
small farmers get better prices, jobs created by organized retail pay well, and
healthier food becomes available to more households.
Inbuilt inefficiencies and wastage in distribution and storage account for why,
according to some estimates, as much as 40% of food production doesn't
reach consumers. Fifty million children in India are malnourished.
Food often rots at farms, in transit, or in antiquated state-run warehouses.
Cost conscious organized retail companies will avoid waste and loss, making
food available to the weakest and poorest segment of Indian society, while
increasing the income of small farmers. Walmart, for example, since its arrival
in Indian wholesale retail market, has successfully introduced "Direct Farm
Project" at Haider Nagar near Malerkotla in Punjab, where 110 farmers have
been connected with Bharti Walmart for sourcing fresh vegetables directly,
thereby reducing waste and bringing fresher produce to Indian consumers.
23
Indian small shops employ workers without proper contracts, making them
work long hours. Many unorganized small shops depend on child labor. A
well-regulated retail sector will help curtail some of these abuses.
The claim that there is no consensus is without merit. Retail reforms
discussions are not new. Comments from a wide cross-section of Indian
society including farmers' associations, industry bodies, consumer forums,
academics, traders' associations, investors, economists were analyzed in
depth before the matter was discussed by the Committee of Secretaries. By
early August 2011, the consensus from various segments of Indian society
was overwhelming in favor of retail reforms. The reform outline was presented
in India's Rajya Sabha in August 2011. The announced reforms are the result
of this consensus process. The current opposition is not helping the
consensus process, since consensus is not built by threats and disruption.
Those who oppose current retail reforms should help build consensus with
ideas and proposals, if they have any. The opposition parties currently
disrupting the Indian parliament on retail reforms have not offered even one
idea or a single proposal on how India can eliminate food spoilage, reduce
inflation, improve food security, feed the poor, improve the incomes of small
farmers. Thus from the above contrasting views of critics and supporters; and
also with reference to Industry analysis using Porters five force model, it can
be inferred that opening of the Indian retail sector will advance the welfare of
nation as a whole.
SWOT Analysis of Indian Retail Sector:
1. Strengths:
Major contribution to GDP: the retail sector in India is hovering around 33
35% of GDP as compared to around 20% in USA.
High Growth Rate: the retail sector in India enjoys an extremely high growth
rate of approximately 46%.
High Potential: since the organized portion of retail sector is only 2-3%,
thereby creating lot of potential for future players.
High Employment Generator: the retail sector employs 7% of work force in
India, which is right now limited to unorganized sector only. Once the reforms
get implemented this percentage is likely to increase substantially.
2. Weaknesses (limitation):
Lack of Competitors: AT Kearneys study on global retailing trends found
that India is least competitive as well as least saturated markets of the world.
Highly Unorganized: The unorganized portion of retail sector is only 97% as
compared to US, which is only 20%.
Low Productivity: Mckinsey study claims retail productivity in India is very
low as compared to its international peers.
Shortage of Talented Professionals: the retail trade business in India is not
considered as reputed profession and is mostly carried out by the family
members (self-employment and captive business). Such people are not
academically and professionally qualified.
24
25
This will lead to massive job loss as most of the operations in big stores like
Walmart are highly automated requiring less work force.
Big players can knock-out competition: they can afford to lower prices in
initial stages, become monopoly and then raise prise later.
India does not need foreign retailers: as they can satisfy the whole domestic
demand.
Remember East India Company it entered India as trader and then took over
politically.
The government hasnt able to build consensus.
In view of the above analysis, if we try to balance opportunities and prospects
attached to the given economic reforms, it will definitely cause good to Indian
economy and consequently to public at large, if once implemented. Thus the
period for which we delay these reforms will be loss for government only,
since majority of the public is in favors of reforms. All the above mentioned
drawbacks are mostly politically created. With the implementation of this
policy all stakeholders will benefit whether it is consumer through quality
products at low price, farmers through more transparency in trading or Indian
corporate with 49% profit share remaining with Indian companies only.
FUTURE GROUP:
Future group, led its founder & group CEO Mr. Kishore Biyani is one of India
leading business house with multiple business spanning across the
consumption space. While retail firm the core business activity of future group,
group subsidiaries are present in consumer finance, capital, insurance, brand
development & entertainment. The first set of Big Bazaar store was opened in
2001 in Kolkata, Hyderabad and Bangalore.
The headquartered in Mumbai the company operates over 12 million square
feet of retail space as over one thousand stores across 71 cities in India and
employees over 35,000 people.
The companies leading formats include Pantaloons a chain of fashion outlet,
Big bazaar, uniquely Indian hypermarket chain, food Bazaar a supermarket
chain blends he look, touch and feel of Indian Bazaars with aspects of modern
retail like choice convenience and quality and control a chain of seamless
destination malls
Future Group is one of the countrys leading business groups present in retail,
asset management, consumer finance, insurance, retail media, retail spaces
and logistics. Future Group is present in 61 cities and 65 rural locations. The
groups flagship company, Pantaloon Retail (India) Limited operates over
10,000,000 square feet (930,000 m2) of retail space, has over 1,000 stores
and employs over 30,000 people. Some of its leading retail formats include
Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, eZone, Depot,
Future Money and online retail format www.futurebazaar.com.
26
BOARD OF DIRECTORS
Mr. Kishore Biyani, Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited
and the Group Chief Executive Officer of Future Group.
Mr. Gopikishan Biyani, Wholetime Director
Gopikishan Biyani, is a commerce graduate and has more than twenty years
of experience in the textile business.
Mr. Rakesh Biyani, Wholetime Director
Rakesh Biyani, is a commerce graduate and has been actively involved in
category management; retail stores operations, IT and exports. He has been
instrumental in the implementation of the various new retail formats.
Mr. Ved Prakash Arya, Director
Ved Prakash Arya, is an engineer by training and is a graduate of the Indian
Institute of Management, Ahmedabad. Prior to joining Pantaloon Retail, he
was the CEO of Globus.
Mr. Shailesh Haribhakti, Independent Director
Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a
Certified Internal Auditor. He is the Deputy Managing Partner of Haribhakti &
Co., Chartered Accountants and past president of Indian merchant Chambers.
He is on the Board of several Public Limited Companies, including Indian
27
fashion
accessories
5.5%
Telephone
1.8%
Enterainm
ent 7.9%
consumer
durable 4%
consumption
spending
$350 billion
furniture
3.4%
Health,
beauty &
pharama
3.8%
Fashion
9.5%
food 62%
Book &
music 1.1
29
BIG BAZAAR:
Big Bazaar
Parent Company
Future Group
Category
Retail
Sector
Tagline/ Slogan
USP
Affordable lifestyle
STP
Segment
Target Group
Positioning
ambassadors
30
minds
Competition
1. Reliance retail
2. Lifestyle Retail
3.Aditya Birla More
Competitors
4. Shoppers stops
4 Ps of Big Bazaar:
Product:
Big Bazaar offers a wide range of products which range from apparels, food,
farm products, furniture, child care, toys, etc of various brands like Levis, Allen
Solly, Pepsi, Coca- Cola, HUL, ITC, P&G, LG, Samsung, Nokia, HP etc.
Big Bazaar also promotes a number of in house brands like:
DJ & C
Tasty Treat
Clean Mate
Sensei
Care Mate
Pricing:
The pricing objective at Big Bazaar is to get Maximum Market Share. Pricing
at Big Bazaar is based on the following techniques:
Value Pricing (EDLP Every Day Low pricing): Big Bazaar promises
consumers the lowest available price without coupon clipping, waiting for
discount promotions, or comparison shopping.
Promotional Pricing: Big Bazaar offers financing at low interest rate. The
concept of psychological discounting (Rs. 99, Rs. 49, etc.) is also used to
attract customers. Big Bazaar also caters on Special Event Pricing (Close to
Diwali, Gudi Padva, and Durga Pooja).
Shakti card
Big Bazaar has come up with 3 catchy lines written on hoardings taking on
biggies like Westside, Shoppers stop and Lifestyle. They are:
Keep West- aSide. Make a smart choice!
People:
Well trained staff at stores to help people with their purchases
Employ close to 10,000 people and employ around 500 more per month.
Use scenario planning as a tool for quick decision making multiple counters
for payment, staff at store to keep baggage and security guards at every gate,
makes for a customer-friendly atmosphere.
Process:
Big Bazaar places a lot of importance on the process right from the purchase
to the delivery of goods. When customers enter the stores they can add the
products they which to purchase in their trolley from the racks. There are
multiple counters where bill can be generated for purchases made. Big
Bazaar also provides delivery of products over purchases of Rs. 1000.
Physical Evidence:
32
Products in Big Bazaar are properly stacked in appropriate racks. There are
different departments in the store which display similar kind of products.
Throughout the store there are boards/written displays put up which help in
identifying the location of a product. Moreover boards are put up above the
products which give information about the products, its price and offers. Big
Bazaar stores are normally U shaped and well planned & designed
MARKETING STRATEGIES OF BIG BAZAAR:
Big Bazaars Guerrilla Marketing
33
In order to do the same, Future Group have come up with 3 catchy/cocky and
cheeky ad campaign which surely does catches eyes (whether one changes
their loyalty or not, only time will tell) and surely one cant resist appreciating
the same..
Keep West-aSide. Make a smart choice
Shoppers! Stop. Make a smart choice
Change Your Lifestyle. Make a smart choice
Not surprisingly; according to the latest release in ET the campaign has made
the competition very uncomfortable because they somehow feel the ads
make a subtle reference to them.
With retail market in India especially in metros where standard of living and
disposable income is at an all time high, competitors will vie for the market
share and can stoop to any levels while marketing their products. Guerilla
marketing is just one of the strategies and surely one can learn a lot from the
ongoing battle, especially people interested in marketing/marketing
techniques.
Things have already started to boil coz of this ad campaign and both Lifestyle,
Shoppers Stop are analyzing the effect of the strategy used by Mr Biyani and
Future Group. Lifestyle is even planning to take Future Group and their ad
campaign to Advertising Standards Council of India (ASCI). Future Group
have done a very creative job and surely time will tell the effect of this
strategy.
KEY SUCCESS FACTOR OF BIG BAZAAR:
34
We have a store opening virtually every fortnight; I have lost count now of how
many I have opened."
- Kishore Biyani Big Bazaar: Brands Identity, Personality & Symbolism
Big Bazaar is Indian personification of retail. Its like an Indian bazaar or
mandi or mela, the environment created by traders to give shoppers a sense
of moment. Its personality is of being an entity away from fancy or pretty and
being authentically "no-frills". Kishore Biyani never hired any foreign
consultant for Big Bazaar which is evident from Indian-specific personality of
the brand. The brands personality is self-explanatory by its tag-line only. This
statement places Big Bazaar at the top of customers mind. It reflects that
entrepreneurship and simplicity are the essence of character of Big Bazaar.
To use predatory pricing is not in the personality of Big Bazaar, they never sell
goods below the price they have purchased it. Big Bazaar, the "Indian WalMart", is the modern Indian family's favorite store. Big Bazaar symbolizes
modern retail, the business which isnt looked up to in our country, is now in
the eyes of many multi-national biggies. Big Bazaar has shown a robust
growth in recent years.
Demerits of Marketing a Commodity Market:
Brands evolve from unbranded commodities to references, where the name
is used for identification. This is also evident from the Goodyears (1996)
chronological brand categorization.
There is lack of differentiation if marketing of commodity is done.
Commodities and differentiated products are the two ends of the product
spectrum. Each unit of a commodity is exactly like every other unit. A product
is a commodity when all units of production are identical, regardless of who
produces them. Commodities tend to be raw materials like corn, wheat,
copper, crude oil, etc. The stone marble is mined and sold by many
companies in Rajasthan; its like an unbranded commodity, where each
producer is selling identical product. This means that an individual producer
has no control over his/her price. On the other hand, people who are owners
of brands or differentiated products are "price-makers". Producer of a
differentiated product creates a separate market for his/her individual product.
Value of Branding: Branding plays a crucial role for all the products and
services. A successful brand is an identifiable product or service, and buyers
or users perceive values in it which matches their needs. There are certain
advantages of branding. They are:
Product dies but a good brand never dies:
The first car T-model is no more but the brand 'FORD' is still alive. 'Pears'
soap that was launched somewhere in the end of 1800 is still alive although
they have changed the product. Even they are looking for line extension but
basic brand names are the same.
Sales or market share:
A brand generates familiarity and trust, and hence, leads to greater sales.
Branded products have an edge over unbranded products.
Premium price:
35
Brands generate trust, a brand manager can charge extra price and people
pay for that trust.
Differentiation:
Creating a brand is nothing but creating a strong association. This association
clearly differentiates the branded product from the rest. As the value of brand
becomes stronger and more relevant to customers, the brand becomes more
involving, and thus, managers need to make their brand values more relevant
to increase customers involvement. This is explained by religion model also.
Products without any form of added value connected to the generic element.
Brand Culture Brand:
Brands that are so strong that they - in the eyes of the consumer have
become equated with the function they represent.
Brand Religion Brand:
The ultimate brand position is that of brands that - in the eyes of the consumer
- have become a "must", a faith to which they profess.
Big Bazaar: Positioning & Establishment
Big Bazaar has established itself in the first quadrant of Organization Value
and Customer Value Matrix of current strategy of Big Bazaar elaborates the
core competencies and areas of improvement. The key features that have
shaped in establishing of brand include:
Big Bazaar ensures that no other kirana store / departmental store are
offering considerable discount compared to its own price. This helped Big
Bazaar in being the "value for money" store.
Big Bazaar scores high on product mix as compared to kirana store.
Cheap and local products are heavily stocked in Big Bazaar which makes it
easier to attract lower middle class category of customers. Promotion of
kirana is rare event but Big Bazaar used this channel efficiently to establish
itself as national brand.
HELP DESK
KIDS ACCESSORIES
JACKETS
BABA SUITS
LADIES TOPS
TRIAL ROOM
PILLARS USED FOR DISPLAYING INFORMATION (SIZE CHART, SECTION
DESCRIPTION)
8. WOOLEN CLOTHS FOR KIDS
9. WINTER WEAR
10. KIDS CASUAL WEAR
11. KIDS JEANS AND SHORTS
36
DESCRIPTION
HELP DESK As you can see from the layout, the Help Desk is located in a
place where everyone has their first sight that is in front of the entrance. This
shows that when a person enters in to big bazaar it can get all information
about the stores of big bazaar from the person sitting in the help desk. Help
Desk uses paging service as a tool for the convenience of its employees and
customers.
KIDS SECTION The kids section is located just at the left corner of the
entrance of big bazaar. In the kids section kids accessories like diapers,
trolleys, suckers, water bottles are available in one part. Kids jackets and
baba suits are available in another part. Kids casual wear (jeans and shorts)
are placed in one part of it and infant shirts & t-shirts are also placed in
another part. In this section the pillars are used for displaying information like
size chart and section description. The apparels are available at a price of
Rs59 onwards.
MENS SECTION Next to it is the mens section that is in the center. It is
divided in to five parts. At one part men formal shirts are available. In other
parts men trousers, suits and blazers, fabrics and ethnics are available
respectively. Here the price ranges from a minimum of Rs99 to Rs899.
37
LADIES SECTION Next to it is the ladies section that is in the extreme right
side. The ladies section is segregated in to seven parts. Ladies section starts
from ladies ethnics, ladies western wear, ladies formals (office wear), ladies
accessories lingeries, ladies perfumeries, and ladies cosmetics
respectively. Here the price of the apparel ranges from Rs99 to Rs1000
approx.
38
LITERATURE REVIEW
BY SOUMEN CHATTERJEE
Unique customer perception (UCP): According to soumen, Unique
Customer Perception is what is required by companies instead of Unique
Selling Proposition. It is ultimately that customer look for satisfaction based on
the picture of perception derived from various sources. If these perceptions of
customer can be analyzed then promotion would be easier for customer
centric marketing. This has lead to the concept - Customer Perception is the
Rule and not Customer Satisfaction.
HUAWEI
Satisfy customers perception is the biggest challenge: In meeting
customers' requirements and measuring customers' satisfaction indexes,
customer perception should be definitely a key consideration. Qualified
services in the operation execution layer, technical management layer and
business development layer are necessary. It is more important to understand
customer expectations and make efforts to exceed their expectations. In
customer satisfaction management, the biggest challenge is customer
perception management, or customer perception satisfaction. The major
characteristics of service is intangible, hence the core value of services is not
like a physical product but the spiritual experience and perception of
customers. The final aim and ideal effect of service provisioning is to have
customers perceive and enjoy the service. Such perception is both at
psychological and behavior levels, and it is the contents of high quality life in
the modern society. Customers are seeking for material deliverables as well
as perceptive enjoyment when purchasing a service product. Since perceptive
enjoyment is a vital service objective, one of the key service management
objectives shall be meeting customers' perceptive enjoyment.
39
ORGANIZATIONAL CHART
40
Toys
Luggage
Cosmetics
Home Textiles
Linens
Crockery
Home Needs
Sarees
Stationery
Electrical Accessories
Household Plastics
41
Electronics
Hardware
Footwear
Home Decor
42
CHAPTER -III
i)
Data collection
ii)
43
Data Collection
Data can be classified under two categories depending upon the sources
utilized. These categories are,
i) Primary data
ii) Secondary data
DATA COLLECTION
Data is collected by using various methods. For the purpose of fulfilling the
objective of study and for completing the Research project Report, both
primary and secondary data collected.
PRIMARY SOURCES:
Questionnaire
Keeping in view the objective of study a questionnaire (as given Annexure)
was selected there is Twenty in all. All questions are small in size and
arranged logically. The language is simple to understand.
Interview
Information was also obtained by conversation with Customers they were
interviewed personally.
SECONDARY DATA: The second information is taken from company
document available on websites
The other related journals information and industry associations sites have
also been viewed.
S AM P L I N G D E S I G N
.
SAMPLE SIZE: 150 consumers was sample size and I contacted 30
customers during this research work. The nature of sampling is NON
PROBABITITY CONVINANCE SAMPLING helped in keeping the path of
research in focus throughout the work.
Collection of the questionnaire
Sufficient time was given to the respondents to answer the questionnaire.
Problem faced while collecting and filling questionnaire
Some of the respondents were hesitant to answer the questionnaire.
Some respondents did not want to answer the questionnaire, so they left it
unanswered.
Where the respondents did not find the relevant answer in his choice
provided, they added they added their own choice or left it unanswered.
Tabulation
After all the questionnaires were collected back, the responses were
tabulated.
Each answer of the respondent was tabulated to its respective category.
44
ANALYSIS
I have done a market field survey on big bazaar. I have surveyed around 30
respondents of Lucknow who come to visit big bazaar. A specific
questionnaire is prepared for the customers and data is obtained from them
by moving around big bazaar and personally interacting with them. The
customers gave me valuable information regarding their consumption pattern
in big bazaar. I collected all those information and a proper analysis is done.
All the analysis and its interpretations are discussed below. Each of the
analysis is done as per the information obtained from the customers and a
serious interpretation has been done to best of my effort.
45
INCOME GROUP
5%
Higher Income
Group (> Rs.60000)
25%
Middle Income
Group (Rs. 40000-60000)
50%
20%
Lower Income
Group(Rs.10000-40000)
No Income Group
(< Rs.10000)
46
29%
Weekly
34%
Monthly
Quarterly
1.2
On a unplanned basis
23%
Interpretation: From this I interpret that in big bazaar 34% customers visit
monthly, 29% customer visit weekly 23% customers visit quarterly and 14%
customers visit on planned basis , it means mostly customers visit weekly and
monthly basis for purchase their requirements.
47
64%
No
36%
70%
60%
50%
40%
30%
64%
20%
36%
10%
0%
yes
no
Interpretation: From this I interpret that 64% customers of big bazaar visit
other retail stores for their requirements and 36% customers of big bazaar
generally do not visit other retail stores. It shows that customers satisfaction
level is more in big bazaar.
48
60%
Outing
10%
Both
30%
PURPOSE
30%
Shopping
Outing
60%
Both
10%
Analysis: Out of the 350 respondents 60% of respondents visit big bazaar
for shopping, 10% for outing and 30% visit big bazaar for both the purposes.
Interpretation: From this I interpret that big bazaar is purely a shopping
complex but it also facilitates a certain kind of ambience and decorum to the
people that they also visit it for the purpose of outing. The infrastructure and
ambience of big bazaar is so that people even like to go there even also they
dont have to purchase anything. People enjoy doing shopping in big bazaar.
This is very nice for it as often customers.
49
Garment Outlet
65%
Footwear Outlet
20%
Food Court
30%
Entertainment
20%
Gift Corner
10%
10%
70%
60%
50%
40%
Series1
30%
20%
10%
Jewellery and
Watches Store
Gift Corner
Entertainment
Food Court
Footwear Outlet
Garment Outlet
0%
Analysis: The above graph shows that 65% of people visit garment outlet in a
mall other than that of big bazaar. 30% of people also prefer to visit food court
in a mall other than big bazaar. 20% of the people go to footwear outlet in a
mall other than big bazaar. 20% of people also go to mall for entertainment
purpose. Some people that are 10% each also visit gift corner store and
jewellery & watches store in a mall other than big bazaar.
Interpretation: From this analysis I come to know that most of the people
tend to visit garment outlets in a mall other than big bazaar as it has some
exclusive branded outlets. People also go for footwear stores as malls have
branded footwear stores in it. People go for watching movies to mall for
entertainment. Yet a few people visits gift corners and jewellery stores in a
mall. This is of course a threat for big bazaar that it is not able to attract
customers from other retail outlets and retain them with it. Big bazaar should
50
Clothes
60%
Grocery
70%
Food Item
50%
Leather Item
25%
Electronic Item
15%
Gift Item
10%
10%
Series1
Food Item
Grocery
Clothes
0%
Analysis: This chart clearly indicates that the demand for grocery that is 70%
is highest by the customers followed by clothes rated 60%. The next highest
demand is for food items that is 50%. 25% demand is for leather items in big
bazaar. Electronic items holds 15% of demand and gift items and other items
has a demand of only 10% by the customers of big bazaar.
Interpretation: From this analysis I interpret that customers demand are high
for grocery and clothes followed by food items in big bazaar. Electronic items
have a little demand by the customers. Gift items and other items are not
much in demand by the customers. I can interpret that clothes, grocery and
51
food items are the major products which hold maximum number of customers.
So big bazaar should maintain its low pricing and product quality to keep hold
of the customers and also it should keep more qualitative products of gift and
leather items so that people would go for more purchase of these items from
it. Big bazaar has many local branded products of grocery and cloths and it is
successfully selling it. It should also include branded products so that more
sales can take place.
Expenditure pattern of customers coming in to big bazaar
Below Rs.500 /single visit
500-1000 /single visit
1000-1500 /single visit
1500-2000 /single visit
More than 2000 /single visit
11%
16%
22%
22%
29%
EXPENDITURE PATTERN
11%
29%
16%
Below 500
500-1000
1000-1500
1500-2000
More than 2000
22%
22%
Analysis: We can clearly see from this graph that majority of the customers
spend a lot in big bazaar that is 29% of people spend more than Rs2000 in a
single visit to big bazaar. Equal number of people that is 22% of people each
spend Rs 1000-1500 and Rs 1500-2000 respectively in a visit to big
bazaar.16% of people spend Rs 500-1000 and only 11% of customers are
there who spends less than Rs500 in their visit to big bazaar.
Interpretation: From this I interpret that most of the customers purchase
goods in bulk which leads them to spend a lot. Volume sales are high in big
bazaar. Customers tend to purchase more goods from big bazaar as it
provides goods at a discounted rate. Probably those persons who spend more
in a visit to big bazaar are purchasing on a monthly basis. Those customers
52
who are spending very less money that is below Rs 500 are mostly coming in
just to move around big bazaar and spend time. In the process they used to
spend money on food items and also purchase some products while roaming
in it. Impulse buying behavior of customers comes in to play to a large extent.
More discounts shall be provided to people who does bulk purchase. This will
encourage people to purchase more products.
10%
15%
35%
22%
18%
35%
30%
25%
20%
35%
Series 1
15%
22%
10%
5%
15%
18%
10%
0%
Less than Half an hour 1 hour to 1
half an hour to 1 hour
1/2 hours
Analysis: People spend a lot of time in shopping in big bazaar. Majority of the
respondents (35%) said that they spend at least 1 hour to 1 hours in big
bazaar. 22% respondents also said that they spend 1 hours to 2 hours in
their visit to big bazaar. Only 10% of people said that they spend very little
time that is less than half an hour in big bazaar.
Interpretation: As per the given data I interpret that customers are very
product choosy now a days and thats why they spend a lot of time in
shopping in big bazaar. Probably customers might even be spending more
time in big bazaar as it provides a very nice ambience and atmosphere for the
53
people to shop in. Hence those persons who spend half an hour or less than
half an hour in big bazaar are those persons who just come to purchase
limited products and come only because of low pricing of products. People
also spend much time in it but purchase very few goods. The sales personnel
should focus on the people who take long time in shopping and purchases a
lot and provide special kind of service to them as they are the major
customers.
Comparison of footfalls in weekdays and weekends
Weeks days
40%
Weekends
60%
FOOTFALLS
40%
Weeks days
Weekends
60%
Analysis: The above graph shows that more number of people comes to big
bazaar in weekends than that of week days .40% of people visits big bazaar
in weekdays where as 60% of people visit big bazaar in weekends.
Interpretation: I can clearly interpret from this that most of the people tend to
visit big bazaar in weekends rather than that of week days. There are more
footfalls in big bazaar in weekends than that of week days. Though there is
not much difference as 40% of people visit big bazaar in week days hence in
weekends the footfall increases by 10%. As people come more in weekends,
so big bazaar should be kept opened for more time in weekends. The
infrastructure can be changed a bit in weekends so that customers can see
more products clearly and can move around comfortably. In order to bring in
more number of customers in week days big bazaar should provide some
schemes in week days which will encourage people to come in to it in week
days also. Hence the crowd is more in weekends and big bazaar should avail
more parking spaces for its customers in weekends. It can make some
54
temporary arrangement for parking every weekend. It should not spend much
money in advertising and displaying of products in weekdays rather it should
advertise and display products more in weekends as more number of people
comes in weekends.
10 A.M - 1 P.M
8%
1 P.M 3 P.M
17%
3 P.M 6 P.M
35%
6 P.M 10 P.M
40%
8%
17%
10 A.M - 1 P.M
40%
1 P.M 3 P.M
3 P.M 6 P.M
6 P.M 10 P.M
35%
Analysis: The above pie chart shows that most of the people prefer to visit
big bazaar in evening time than that of the day time. Only 25% of people tend
to visit big bazaar during day time while 75% of people tend to visit big bazaar
during after noon time.
Interpretation: From the above analysis I interpret that evening time is the
peak time for big bazaar and day time is the off peak time for big bazaar.
There is more number of people found in big bazaar during evening time than
that of day time. Probably more of products are being sold during evening
time in big bazaar than that of day time. Big bazaar shall provide some special
55
offerings during day time so that more people should come in during day time.
It could offer some special kind of product in daytime which will be not
available during evening time. In this way it will bring in more number of
people during day time for getting the special kind of products but along with
that it will be able to sale other products as people do a lot of impulse buying
at big bazaar.
Comparison of customers purchasing with planned list of products and
purchasing products on unplanned basis
Yes
50%
No
Ever
40%
10%
10%
yes
50%
no
ever
40%
56
to have chit chat among them. The customer who comes with a planned list of
products purchases more products than that of the customers who comes
without any planned list of products. So big bazaar should provide more
variety and essential goods so that more number of people should come in
with a planned list of products.
Brand preference of customers in big bazaar
Yes
No
Depends on category
10%
50%
40%
BRAND PREFERENCE
Yes
10%
40%
No
50%
Depends on
category
Analysis: As seen in the above chart it is clearly known that only 10% of
people come in to big bazaar with a list of brands in advance. 50% of people
completely deny that they dont prepare in list of brand in advance. 40% of
people told that they prepare a list of brand depending on the product
category.
Interpretation: From this I interpret that customers dont opt for much brand
preference while purchasing products in big bazaar. A few customers search
for brands but depending on the product category. Customers probably dont
decide for brands on products as there are not much of known branded
products available at big bazaar. On product categories like grocery and
clothes, big bazaar has many local branded products. Customers purchase a
lot of these as its cheap in price even though its quality is not so good. As
most of the customers belong to lower class and middle class people, they
purchase those local branded products as it gives them value for money.
Different products of the same category have different prices. Quality of
products varies with the price. This enables customization of products for
various types of customers. Customers search for brands mostly in apparel
section. Some customers also pre decides the brand on the local
manufactured grocery and food products of big bazaar. Big bazaar should
include more of the branded products in its each category so that customers
57
have more options to choose among the brands. This will bring in more
number of people to big bazaar which will definitely increase the sales.
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
C
lo
th
Le
s
at
he
E
rI
le
te
ct
m
ro
ni
c
Ite
m
s
G
ro
ce
ry
G
if t
Ite
A
ny
m
s
O
th
er
Ite
m
Series1
Analysis: This graph shows that cloths and grocery are the only two items on
which customers mostly prefer the brands that is 40% each. 33% brand
preference is on gift items and 25% is on electronic items. Brand preference
on leather items is 2% and 12% on any other item.
Interpretation: From this I interpret that some of the products brand are pre
decided in advance and for some of the products customers dont at all pre
decide any brand. As per electronic goods are concerned customers pre
decide the brand as many branded electronic products are available in big
bazaar. The customers pre decides brands on cloths and grocery most as big
bazaar produces much of local brands and also have some well known
branded products of clothes with it like flying machine jeans.
Mode of payment of customers in big bazaar
58
Cash Payment
55%
Credit Card
19%
Debit Card
26%
26%
Cash Payment
Credit Card
55%
Debit Card
19%
59
60%
Service
40%
Ambience
50%
Product Variety
65%
Product Quality
20%
Convenience
35%
bazaar
70%
60%
50%
40%
30%
20%
10%
65%
60%
50%
40%
35%
20%
0%
60
which leads them to come to big bazaar. Product quality is rated at very low
that is only 20% which encourages the customers to come to big bazaar.
Interpretation: From this analysis I interpret that big bazaar is a well known
for its variety options. People mostly come to big bazaar as they get various
kinds of products under one roof. It is also clearly known that big bazaar sales
its goods at a discounted price as compared to the market. Even it provides a
good service and ambience to its customers which encourages them to visit
big bazaar more and more times. I can also interpret from this that big bazaar
has located itself in a good place from where it is able to attract customers. As
a hypermarket which is to be located far off the city, big bazaar has located
itself in a good place from where it is convenient for people to visit big bazaar.
Big bazaar should try and produce more qualitative products so that
customers can get more satisfaction and would never think of not doing
shopping in big bazaar.
17%
Good
29%
Ok
36%
Poor
13%
Very poor
5%
40%
35%
30%
25%
20%
36%
29%
15%
10%
17%
13%
5%
5%
0%
Very good
Good
Ok
Poor
Very poor
10%
Two-wheeler
40%
45%
Four-wheeler
35%
Any Other
15%
15%
10%
Hired Vehicle
35%
40%
Two-wheeler
Four-wheeler
Any Other
Analysis: Around 40% of the total respondents come to big bazaar with their
own two wheelers. The second majority of people consist of people riding four
wheeler and coming in to big bazaar. Only 15% of people of the total
respondent visits big bazaar on hired vehicles. 10% customers of the total
respondent comes in any other mode of transport.
Interpretation: From the above data I interpret that there are more number of
four wheelers coming found in big bazaar than that of two wheelers. People
prefer more to go to big bazaar in four wheelers than that of two wheelers. A
few people are found who comes in to big bazaar with a hire vehicle. Probably
they might be the tourists.
Parking space availability in big bazaar
62
Adequate
45%
10%
Yes
65%
No
35%
AVAILABILITY OF PARKING SPACE
10%
Less than
adequate
45%
45%
Adequate
More than
adequate
Analysis: As it is shown in pie chart most of the people say big bazaar does
not provide adequate parking space. Equal number of people also says that
adequate space is provided for parking big bazaar. Only 10% of people say
that more than adequate space is available for parking in big bazaar.
Interpretation: Analyzing the above data, I interpret that customers are not
satisfied with the parking space availability provided by big bazaar. Hence its
a threat for big bazaar as it may loose its customers because of less parking
space availability. Even though many customers say adequate space is
available for parking in big bazaar but also it is a threat for big bazaar as it is
seen more number of people are expected to come in to big bazaar. In
holidays probably it will be very difficult for customers to park their vehicle in
big bazaar.
Customers preference towards Kirana store
63
35%
yes
no
65%
Shopping
Price
Big bazaar
Kirana store
70%
30%
Service
Variety
Quality
Convenience
Experience
Ambience
50%
100%
40%
25%
90%
95%
50%
0%
60%
75%
10%
5%
64
120
100
80
60
40
20
100
90
95
75
70
Big bazaar
60
50
Kirana store
40
30
25
10
ric
S e
er
vi
ce
V
ar
ie
ty
Q
S
ho Co ua
pp n lit
in ve n y
g
E ien
xp c
er e
ie
A nc
m e
bi
en
ce
Service
Variety
Quality
Convenience
Shopping
Ambience
65
Experience
Big bazaar
O. Org. Retails
45%
55%
50%
55%
52%
54%
46%
58%
50%
45%
48%
46%
54%
42%
60
55
50
45
40
35
30
66
CHAPTER-IV
FINDINGS
67
FINDINGS
1. Most of the customers buy their requirement in Big Bazaar on the basis of
Weekly and monthly basis. Customers realized that Big Bazaar stores provide
qualitative products/service with reasonable price.
2. At present time Big Bazaar provide different types of product assortments
to the customers.
3. Continuously opening of Big Bazaar chains in different major cities,
increasing quantities of the customers & profit show that Big Bazaar most
accepted name in organized retail chain in India.
4. Big Bazaar mainly deal with middle income group people who want
qualitative product with reasonable cost.
5. Big bazaar has a good reputation of itself in the market.
6. Big bazaar has positioned itself in the market as a discounted store.
7. Big bazaar holds a huge customer base. The majority of customers belong
to middle class family.
8. Impulse buying behavior of customers comes in to play most of the times in
big bazaar.
9. There are more than 50 big bazaars in different cities of India, it seems that
there is a vast growth of big bazaar lying as customers demand is increasing
for big bazaars.
10. Big bazaar is a hypermarket as it provides various kinds of goods like
apparels, grocery, stationary, food items, electronic items, leather items,
watches, jewellery, crockery, decorative items, sport items, chocolates and
many more. It competes with all the specialty stores of different products
which provide goods at a discounted rate all through the year.
11. The major players in retail industries are Big bazaar, The Tata Groups
(Croma), Vishal Retail Group, Reliance Retail, Kirana stores & Sabka Bazaar
etc.
68
PERSONAL SUGGESTIONS
Big bazaar should provide large parking space for its customers so that
they can easily park their vehicles.
During the off peak hours big bazaar should provide some offers to its
customers so that people would be encouraged to come to big bazaar
during off peak hours. The customers who are present in the mall
during the off peak hours of big bazaar will definitely go in to big bazaar
if surprise offers are made at that time.
TASK ASSIGNED:
Study of catchment area (3 km radius) of Big Bazaar
Study of competitors of Big Bazaar
Preparing promotional activities in the store
Preparing for arrangements for games in store
Interacting with customers and knowing their problems
Making proper schedule for games in store
69
Doing brainstorming and thinking about how to cut cost in the activities
to be done
EXPERIENCE:
Following are list of major learning which learn during these two months
project
Corporate working
Learned the approach of working in corporate, each time chain of
procedure were followed while communicating internally. Eventually I
observed the delegation of authority and responsibility in the work
Team work
Learned how to unite work with others, In the later week of SIP work on
promotional activities were performed and at that time I always looked
forward for guidance from the staff available for the detail about the
company according to ministry of corporate affairs.
Conclusion
Big bazaar is a major shopping complex for todays customers. It is a place
where customers find variety of products at a reasonable price. Big bazaar
has a good reputation of itself in the market. It has positioned itself in the
market as a discounted store. It holds a huge customer base. The majority of
customers belong to middle class family. The youth generation also likes
shopping and moving around big bazaar. Volume sales always take place in
big bazaar. Impulse buying behavior of customers comes in to play most of
the times in big bazaar.
70
71
CHAPTER V
LIMITATIONS OF STUDY
72
Limitations of study
Certain limitations do creep in a research study due to constraints of the time,
money and human efforts, the present study is also not free from certain
limitation, which were unavoidable.
Although all efforts were taken to make the result of the work as accurate as
possible as survey but the survey have following constraints.
I- Some customers were not willing to give appointment due to their busy
schedule.
II- only a selected sample of customer could be contacted.
III- Due to time constraint and other imperative work load during the t period it
could not be made possible to explore more area of concern pertaining to
study.
IV- Also impossible for company to prove information is confidential.
V-Due to fast pace of life, some customers were not able to do justification to
the questionnaire.
VI-Personal biases might have come while answer the questionnaire.
VII-As per company rule many information was not disclose as the manager
are busy in their daily schedule. It is not possible for us to spend more time in
interaction with them.
73
ANNEXURE(S)
Questionnaire
PART-1
1. Name: 2. Age: 3. Gender: 4. Address: 5. Qualification: 6. Profession: 7. Ph.
8. Whats your monthly income?
a) Below 10,000
b) 20,000 40,000
c) 40,000 60,000
d) More than 60,000
PART-2
1.How frequently do you visit Big Bazaar?
a) Weekly
b) Monthly
c) Quarterly
d) On unplanned basis
2.Apart from Big Bazaar do you intend to visit any other retail outlet in a Mall?
a) Yes
b) No
2.(a). If yes then what are the other retail outlets do you intend to visit in a mall?
e) Garment Outlet
f) Footwear Outlet
g) Food Court
h) Entertainment
i) Gift Corner
j) Jewellery and Watches store
74
4. On an average how much amount of money do you spend in a visit to Big Bazaar?
a) Below 500
b) 500 1000
c) 1000 1500
d) 1500 2000
e) More than 2000
7. Which time of the day do you mostly prefer to visit Big Bazaar?
a) 10am 1pm
b) 1pm - 3pm
c) 3pm-6pm
d) 6pm 10pm
10. Do you go with a planned list of products to be purchased from Big Bazaar?
a) Yes
b) No
c)some time
11. Do you prepare a list of brands in advance when you visit to Big Bazaar?
a) Yes
b) No
c) Depends on category
b) Credit Card
c)Debit Card
e. Convenience
15. How would you rate the services of the sales personnel in Big Bazaar on a 1
5 scale?
Very good
Good
Ok
Poor
Very poor
I.
1.
1.
1.
b) No
Big Bazaar
Big Bazaar
Big Bazaar
Big Bazaar
77
1.
Kirana store
II.
Big Bazaar
II.
Big Bazaar
II.
Big Bazaar
f) Shopping Experience
1.
Kirana store
g) Ambience
1.
Kirana store
20. Compare others organized retail stores with Big Bazaar on the following
parameters.
a) Price
1.Big Bazaar
II. Others Organized Retailer
b) Service
1.Big Bazaar
II. Others Organized Retailer
c) Variety
1.Big Bazaar
II. Others Organized Retailer
d) Quality
1.Big Bazaar
II. Others Organized Retailer
e) Convenience
1.Big Bazaar
II. Others Organized Retailer
f) Shopping Experience
1.Big Bazaar
II. Others Organized Retailer
g) Ambience
1.Big Bazaar
II. Others Organized Retailer
THANKING YOU
78
Bibliography
BOOKS
Kotler Philip, marketing management, (Pearson education, 12th edition)
INTERNET WEB PAGES
www.bigbazaar.com/
www.futuregroup.in/
www.cci.in/pdf/surveys_reports/indias_retail_sector.pdf
www.fibre2fashion.com/industry...retail-industry.../indian-retail-indu
www.slideshare.net/ResearchOnIndia/retail-market-in-india-2012
www.authorstream.com/.../ranjeet56-118758-india-6th-largest-emerg...
en.wikipedia.org/wiki/Retailing_in_India
www.docstoc.com Business Other
en.wikipedia.org/wiki/Future_Group
economictimes.indiatimes.com
articles.economictimes.indiatimes.com Collections Big Bazaar
yellowpages.sulekha.com Lucknow Retail Shopping Supermarkets
www.asklaila.com Lucknow Grocery
www.onyomo.com/s/Lucknow/retail/big%20bazaar
www.grotal.com/Lucknow/Big-Bazaar-C69/
consumer.admanya.com Super Market / Retail Big Bazaar
www.scribd.com/doc/.../SWOT-ANALYSIS-OF-BIG-BAZAAR-OM...
www.managementparadise.com/.../21355-swot-analysis-big-bazaar3...
www.mbaskool.com/brandguide/lifestyle-and.../4199-big-bazaar.htm...
www.angermann.de/.../SBICaps_IndianApparelRetailSector_Overvie...
www.oppapers.com/subjects/swot-analysis-on-big-bazaarpage1.html
www.slideshare.net/allenallaman/wholestratfinalweb
www.slideshare.net/sukeshgowda/big-bazaar-project-doc
www.chillibreeze.com/articles.../the-story-of-Big-Bazaar-611.asp
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