A.

STUDY ON
“EMPLOYEE MOTIVATION”
AT
BIG BAZAAR

IN PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE AWARD OF DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

BY

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 PARTICULARS PAGE:NO
CHAPTERS
INTRODUCTION
1

 OBJECTIVES OF THE STUDY

 SCOPE OF THE STUDY
 METHODOLOGY OF THE STUDY
 LIMITATIONS OF THE STUDY

REVIEW OF LITERATURE:

3 COMPANY PROFILE

INDUSTRY PROFILE
DATA ANALYSIS &INTERPREATION
4

5 FINDINGS, CONCLUSIONS SUGGESTIONS

QUESTIONNAIRES
BIBLIOGRAPHY

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 ABSTRACT
Employee motivation shall be defined by Robbins (as cited in Ramlall, 2004) as:
“the willingness to exert high levels of effort toward organizational goals, conditioned by
the effort’s ability to satisfy some individual need.” To engage in the practice of
motivating employees, employers must understand the unsatisfied needs of each of the
employee groups. This study desires to provide practitioners in the restaurant industry the
ability to recognize motivators for these different employment groups and their
relationship to organizational commitment. The restaurant industry consists of two types
of employees: salaried and hourly. This study focuses on hourly employees, and their
subdivision: tipped employees. For the purpose of this research hourly employees shall be
defined as employees that depend on their hourly wage as their main source of income
and tipped employees shall be defined as employees that depend on the receipt of tips as
their main source of income. The purpose of this study desires to provide practitioners in
the restaurant industry a comparison and analysis of employee motivation between the
two employment groups and their level of organizational commitment. After formulating
a thorough research review, a questionnaire instrument was assembled. The sample for
this study was a convenience sample consisting of 104 restaurant hourly tipped and non-
tipped, front of the house personnel employed in a single branded, national restaurant
chain located in the metropolitan area of Orlando, Florida. The research instrument was a
survey questionnaire instrument comprised of three sections: 1.) twelve motivational
factors derived from Kovach (1995), 2.) nine questions from the reduced OCQ from
Mowday, Steers, and Porter (1979), and a section iv concerning demographic information
of gender, age, race, education level, marital status, job type and tenure in the industry.

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 CHAPTER 1

INTRODUCTION

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 INTRODUCTION

The project work entitled a Study On Employee Motivation with special reference to
BIGBAZAAR.. is mainly conducted to identify the factors which will motivate the
employees and the organizational functions in Hyderabad
Management’s basic job is the effective utilization of human resources for achievements
of organizational objectives. The personnel management is concerned with organizing
human resources in such a way to get maximum output to the enterprise and to develop
the talent of people at work to the fullest satisfaction. Motivation implies that one
person, in organization context a manager, includes another, say an employee, to engage
in action by ensuring that a channel to satisfy those needs and aspirations becomes
available to the person. In addition to this, the strong needs in a direction that is
satisfying to the latent needs in employees and harness them in a manner that would be
functional for the organization.
Employee motivation is one of the major issues faced by every organization. It is the
major task of every manager to motivate his subordinates or to create the ‘will to work’
among the subordinates. It should also be remembered that a worker may be immensely
capable of doing some work; nothing can be achieved if he is not willing to work. A
manager has to make appropriate use of motivation to enthuse the employees to follow
them. Hence this studies also focusing on the employee motivation among the
employees of BIGBAZAAR..
The data needed for the study has been collected from the employees through
questionnaires and through direct interviews. Analysis and interpretation has been done
by using the statistical tools and data’s are presented through tables and charts.

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 Determinants of Motivation:
Traditionally it is believed that employees are motivated by the opportunity to
make as much as money as possible and will act rationally to maximize their earnings.
The assumption is that money, because what it can buy, is the most important motivator,
of all people. According to the pluralistic approach, men work to fulfill a variety of
needs. Three types of forces generally influence human behavior:
i. Forces operating within the individual.
ii. Forces operating within the organization and
iii. Forces operating in the environment.

a. The individual: Human needs are both numerous and complex. Some of these needs
cannot be described and identified because people hide their real needs under the
cover of socially accepted behavior. It is the duty of the manager to match individual
needs and expectations to the type of rewards available in the job setting.
b. The organization: The climate in the organization must be conducive to human
performance. Climate plays an important part in determining worker’s motivation.
The climate in an organization is determined by a number of variables such as its
leadership style, autonomy enjoyed by members, growth prospects, emotional
support from members, rewards structure, etc.

C.The environment: A worker does not live in two separate worlds, one inside the
factory and the other outside it. The troubles and pleasure of off-the-job life cannot be put
aside when reporting for work in the morning, nor can factory matters be dropped when
returning home after work.

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 IMPORTANT TECHNIQUES AND PROGRAMMES OF MOTIVATING
EMLPLOYEES
REWARDS:
People join organization expecting rewards. Firms give rewards in the form of money
and other benefits in exchange of employee’s availability, competencies and behaviors.
Types of Rewards:
1. Membership and Seniority Based Rewards:
In this system a senior employee receives more benefits than his junior.
Advancement, pay rises, Retirement benefits and perquisites depends on seniority of
employees.
2. Job Status Based Rewards:
In this system the firm rewards employees on the status of the job they are holding. Jobs
that require more skill and effort, have more responsibility and have difficult working
conditions consequently these type of employees would be placed in higher pay grades.
3. Competency based Rewards:
In this system organization links to competencies of employees. Competencies are
reflected through skills, knowledge and traits that to desirable behavior.
4. Performance Based Rewards:
In this type of system pay is linked to performance
Profit sharing
Team rewards
Individual rewards

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 JOB ENLARGEMENT, ENRICHMENT AND ROTATION
1. Job Enlargement
Add similar asks so that job will have more variety and be more interesting.
2. Job Enrichment:
Gives the job holder more decision making, planning and controlling power.
3. Job Rotation:
Shifting employee from one job to another when a job is no more changeling in order
to reduce boredom.
EMPOWERMENT:
Empowerment is what young aspirants are looking for in organization. More than
monetary rewards it is the feeling that employee ‘owns’ the job that motivates him.
Empowered employees are energetic and passionate.
GOALSETTING:
Goal setting is one of the most effective and widely practiced techniques of
motivation. It is the process motivating employees by establishing performance goals
so that it will guide their behavior which is accepted by them and others.

QUALTY OF WORKLIFE
It has different meanings to the different levels of workers.

Factors which contribute to QWL are

 Adequate and fair compensation
 Safe and healthy working conditions
 Security and growth opportunities
 Opportunity to be creative and develop creativity
MANGEMENT BY OBJECTIVE:
MBO means a set of procedures that begins with goal setting and contributes through
performance reviews. In this system participants become ego-involved in decisions they
made and tend to accept decisions as their own and feel personality responsible for
implementing them.
FLEXIBLE WORKING HOURS:
To suit the convenience of the employees which leads to reduce absenteeism, increased
productivity, reduce over time expenses and reduce traffic congestion near worksites.
TWO TIER PAY SYSTEM:

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In this system lower wage is offered to newly hired employees than those already
employed in the same job this will induce the new entrant to stick the same organization.
FLEXIBLE BENEFITS:
This system allows individuals to choose from a menu of benefit packages that is
individually tailored to employee’s needs and situations.
This system seeks to replace the traditional fringe benefits which are uniformed to
all employees.
PARTICIPATIVE MANAGEMENT:
It means associating representatives of workers at every stage of decision making which
amounts to workers having share in reaching the final managerial decision in an
enterprise.

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 NEED & IMPORTANCE OF THE STUDY
The success of an organization ultimately depends on how effectively managers are able
to motivate their subordinates. In the words of Allen, “poorly motivated people can
nullify the soundest organization”. The following points bring out the importance of
motivation
1. Motivated employees always look for better ways of doing a job.
2. Motivated employee is quality oriented.
3. Motivated employees are more productive.
4. Motivated employees remain in the organizations for a longer period of time.
5. To stimulate employee to accomplish desired goals.
6. To boost the employee morale.
7. To develop sound human relations.
8. To develop sound team spirit.
9. To inspire employee for responsible and challenging jobs.

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 OBJECTIVES:
The objectives of the study are as follows:
1. To understand the present motivational techniques of BIGBAZAAR.
2. To identify the shortcomings in the motivational practices.
3. To assess the motivation level of the Employees.
4. To know and suggest relevant motivational techniques which will increase
motivational level and performance.
5. To suggest suitable motivational techniques.

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 SCOPE OF THE STUDY
The scope of the study is to understand the present motivational techniques practiced in
the organization and how BIGBAZAAR.. can enhance the present motivational level by
adopting suitable motivational techniques.
The study will be undertaken at its BIGBAZAAR.. showrooms with a special focus
on motivational practices adopted by BIGBAZAAR.. with respect to its EMPLOYEES.
Motivation is the process which starts with psychological or physiological needs that
initiates behavior that is aimed at achieving the goals. The objective of motivation is to
exploit the unused potential in people that are to be motivated so that such exploitation
results in greater efficiency, higher production and better standard of living of the people.
Motivated employees always look for better ways of doing a job, quality oriented, more
production, stimulated to accomplish desired goals, boost the employee morale, etc.
motivation in simple terms may be understood as a set of forces that cause people to
behave in a goal oriented way.

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 RESEARCH DESIGN OF THE STUDY

Employees would benefit an organization to improve its HR productivity.

Methodology:
 Data Base:
This study is based on both primary data and secondary data. A structured interview
schedule would be used to collect the primary data from the EMPLOYEES of The
secondary data for the study of annual reports of Larsen and Toubro published
literature including internet.
 PRIMARY
A multi- stage random sampling procedure would be followed to select the sample
respondents. At the first stage, the sample units would be chosen. Larsen and
Toubro equisearch.ltd in Hyderabad 3 outlets each from the north, south, east and
west zones of Larsen and Toubro would be chosen. Larsen and Toubro has 320
FM. The sample size comprises of 60 respondents ie 5 respondents from each sample
outlet.
 SECONDARY
Appropriate but simple analytical methods like cross tabulation, pie-charts, bar
charts, chi-squares, etc would be employed to analyze and interpret the data
collected.

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 LIMITATIONS:
The limitations in this study are:
1. Details regarding monetary remuneration provided by the respondents may
not be accurate. But this limitation could be overcome by referring to
industry average of BIGBAZAAR.
2. The research cannot be generalized because findings are relevant to
BIGBAZAAR.

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 CHAPTER 2
THEORETICAL FRAME WORK

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 THEORETICAL FRAME WORK
Human resource management (HRM or simply HR) is the management of
an organization's workforce, or human resources. It is responsible for
the attraction,selection, training, assessment, and rewarding of employees, while also
overseeing organizational leadership and culture, and ensuring compliance with
employment. In circumstances where employees desire and are legally authorized to
hold a collective bargaining agreement, HR will typically also serve as the company's
primary liaison with the employees' representatives (usually a labor union).

HR is a product of the human relations movement of the early 20th century, when
researchers began documenting ways of creating business value through the strategic
management of the workforce. The function was initially dominated by transactional
work such as payroll and benefits administration, but due to globalization, company
consolidation, technological advancement, and further research, HR now focuses on
strategic initiatives like acquisitions, talent, succession planning, industrial and labor
relations, and diversity and inclusion.

Whereas in startup companies HR's duties may be performed by a handful of trained

professionals or even by non-HR personnel, larger companies typically house an entire
functional group dedicated to the discipline, with staff specializing in various HR tasks
and functional leadership engaging in strategic decision making across the business. To
train practitioners for the profession, institutions of higher education, professional
associations, and companies themselves have created programs of study dedicated
explicitly to the duties of the function. Academic and practitioner organizations likewise
seek to engage and further the field of HR, as evidenced by several field-specific
publications.

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 Rensis Likerthas called motivation as the core of management. Motivation is the core
of management. Motivation is an effective instrument in the hands of the management in
inspiring the work force .It is the major task of every manager to motivate his
subordinate or to create the will to work among the subordinates .It should also be
remembered that the worker may be immensely capable of doing some work, nothing
can be achieved if he is not willing to work .creation of a will to work is motivation in
simple but true sense of term.

Motivation is an important function which very manager performs for actuating the
people to work for accomplishment of objectives of the organization .Issuance of well
conceived instructions and orders does not mean that they will be followed .A manager
has to make appropriate use of motivation to enthuse the employees to follow them.
Effective motivation succeeds not only in having an order accepted but also in gaining a
determination to see that it is executed efficiently and effectively.

In order to motivate workers to work for the organizational goals, the managers must
determine the motives or needs of the workers and provide an environment in which
appropriate incentives are available for their satisfaction .If the management is
successful in doing so; it will also be successful in increasing the willingness of the
workers to work. This will increase efficiency and effectiveness of the organization
.There will be better utilization of resources and workers abilities and capacities.

2.1 The concept of motivation

The word motivation has been derived from motive which means any idea, need or
emotion that prompts a man in to action. Whatever may be the behavior of man, there is
some stimulus behind it .Stimulus is dependent upon the motive of the person concerned.
Motive can be known by studying his needs and desires.

There is no universal theory that can explain the factors influencing motives which
control mans behavior at any particular point of time. In general, the different motives
operate at different times among different people and influence their behaviors. The
process of motivation studies the motives of individuals which cause different type of
behavior.

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2.2 Definition of Motivation.
According to Edwin B Flippo, “Motivation is the process of attempting to influence
others to do their work through the possibility of gain or reward.

2.3 Significance of Motivation

Motivation involves getting the members of the group to pull weight effectively, to give
their loyalty to the group, to carry out properly the purpose of the organization. The
following results may be expected if the employees are properly motivated.

1. The workforce will be better satisfied if the management provides them with
opportunities to fulfill their physiological and psychological needs. The workers will
cooperate voluntarily with the management and will contribute their maximum
towards the goals of the enterprise.

2. Workers will tend to be as efficient as possible by improving upon their skills and
knowledge so that they are able to contribute to the progress of the organization. This
will also result in increased productivity.

3. The rates of labor’s turnover and absenteeism among the workers will be low.

4. There will be good human relations in the organization as friction among the workers
themselves and between the workers and the management will decrease.

5. The number of complaints and grievances will come down. Accident will also be
low.

6. There will be increase in the quantity and quality of products. Wastage and scrap will
be less. Better quality of products will also increase the public image of the business.
2.4 Motivation Process.
1. Identification of need
2. Tension
3. Course of action
4. Result –Positive/Negative
5. Feed back

2.5 Theories of Motivation.

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Understanding what motivated employees and how they were motivated was the focus of
many researchers following the publication of the Hawthorne study results (Terpstra,
1979). Six major approaches that have led to our understanding of motivation are
Mcclelland’s Achievement Need Theory, Behavior Modification theory; Abraham H
Mallows need hierarchy or Deficient theory of motivation. J.S. Adam’s Equity Theory,
Vrooms Expectation Theory, Two factor Theory.

2.5.1 McClelland’s Achievement Need Theory.

According to McClelland’s there are three types of needs;

Need for Achievement (n Ach);

This need is the strongest and lasting motivating factor. Particularly in case of persons
who satisfy the other needs. They are constantly pre occupied with a desire for
improvement and lack for situation in which successful outcomes are directly correlated
with their efforts. They set more difficult but achievable goals for themselves because
success with easily achievable goals hardly provides a sense of achievement.
Need for Power (n Pow)
It is the desire to control the behavior of the other people and to manipulate the
surroundings. Power motivations positive applications results in domestic leadership
style, while it negative application tends autocratic style.

Need for affiliation (n Aff)

It is the related to social needs and creates friendship. This results in formation of
informal groups or social circle.
2.5.2 Behavioral Modification Theory;
According to this theory people behavior is the outcome of favorable and unfavorable
past circumstances. This theory is based on learning theory. Skinner conducted his
researches among rats and school children. He found that stimulus for desirable behavior
could be strengthened by rewarding it at the earliest. In the industrial situation, this
relevance of this theory may be found in the installation of financial and non financial
incentives.

More immediate is the reward and stimulation or it motivates it. Withdrawal of reward
incase of low standard work may also produce the desired result. However, researches
show that it is generally more effective to reward desired behavior than to punish
undesired behavior.

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2.5.3 Abraham H Maslow Need Hierarchy or Deficient theory of Motivation.

The intellectual basis for most of motivation thinking has been provided by behavioral
scientists, A.H Maslow and Frederick Heizberg, whose published works are the “Bible of
Motivation”. Although Maslow himself did not apply his theory to industrial situation, it
has wide impact for beyond academic circles. Douglous Mac Gregor has used Maslow’s
theory to interpret specific problems in personnel administration and industrial relations.

The crux of Maslow’s theory is that human needs are arranged in hierarchy composed of
five categories. The lowest level needs are physiological and the highest levels are the
self actualization needs. Maslow starts with the formation that man is a wanting animal
with a hierarchy of needs of which some are lower ins scale and some are in a higher
scale or system of values. As the lower needs are satisfied, higher needs emerge. Higher
needs cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a
motivator. This resembles the standard economic theory of diminishing returns. The
hierarchy of needs at work in the individual is today a routine tool of personnel trade and
when these needs are active, they act as powerful conditioners of behavior- as
Motivators.
Hierarchy of needs; the main needs of men are five. They are physiological needs, safety
needs, social needs, ego needs and self actualization needs, as shown in order of their
importance.

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 Self-
Actualization

Ego Needs

Social Needs

Safety Needs

Physiological Needs
Fig (2.1)

The above five basic needs are regarded as striving needs which make a person do
things. The first model indicates the ranking of different needs. The second is more
helpful in indicating how the satisfaction of the higher needs is based on the satisfaction
of lower needs. It also shows how the number of person who has experienced the
fulfillment of the higher needs gradually tapers off.

Physiological or Body Needs: - The individual move up the ladder responding first to
the physiological needs for nourishment, clothing and shelter. These physical needs must
be equated with pay rate, pay practices and to an extent with physical condition of the
job.

Safety: - The next in order of needs is safety needs, the need to be free from danger,
either from other people or from environment. The individual want to assured, once his
bodily needs are satisfied, that they are secure and will continue to be satisfied for
foreseeable feature. The safety needs may take the form of job security, security against
disease, misfortune, old age etc as also against industrial injury. Such needs are generally
met by safety laws, measure of social security, protective labor laws and collective
agreements.

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Social needs: - Going up the scale of needs the individual feels the desire to work in a
cohesive group and develop a sense of belonging and identification with a group. He
feels the need to love and be loved and the need to belong and be identified with a group.
In a large organization it is not easy to build up social relations. However close
relationship can be built up with at least some fellow workers. Every employee wants
too feel that he is wanted or accepted and that he is not an alien facing a hostile group.

Ego or Esteem Needs: - These needs are reflected in our desire for status and
recognition, respect and prestige in the work group or work place such as is conferred by
the recognition of ones merit by promotion, by participation in management and by
fulfillment of workers urge for self expression. Some of the needs relate to ones esteem

e.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this
means praise for a job but more important it means a feeling by employee that at all
times he has the respect of his supervisor as a person and as a contributor to the
organizational goals.

Self realization or Actualization needs: - This upper level need is one which when
satisfied provide insights to support future research regarding strategic guidance for
organization that are both providing and using reward/recognition programs makes the
employee give up the dependence on others or on the environment. He becomes growth
oriented, self oriented, directed, detached and creative. This need reflects a state defined
in terms of the extent to which an individual attains his personnel goal. This is the need
which totally lies within oneself and there is no demand from any external situation or
person.

2.5.4 J.S Adams Equity Theory

Employee compares her/his job inputs outcome ratio with that of reference. If the
employee perceives inequity, she/he will act to correct the inequity: lower productivity,
reduced quality, increased absenteeism, voluntary resignation.

2.5.5 Vrooms Expectation Theory

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Vroom’s theory is based on the belief that employee effort will lead to performance and
performance will lead to rewards (Vroom, 1964). Reward may be either positive or
negative. The more positive the reward the more likely the employee will be highly
motivated. Conversely, the more negative the reward the less likely the employee will be
motivated.

2.5.6 Two Factor Theory

Douglas McGregor introduced the theory with the help of two views; X assumptions are
conservative in style Assumptions are modern in style.

X Theory
 Individuals inherently dislike work.
 People must be coerced or controlled to do work to achieve the objectives.
 People prefer to be directed

Y Theory
 People view work as being as natural as play and rest
 People will exercise self direction and control towards achieving objectives they
are committed to
 People learn to accept and seek responsibility.

2.6 Types of Motivation.

Intrinsic motivation occurs when people are internally motivated to do something
because it either brings them pleasure, they think it is important, or they feel that what
they are learning is morally significant.
Extrinsic motivation comes into play when a student is compelled to do something or act
a certain way because of factors external to him or her (like money or good grades)
Incentives
An incentive is something which stimulates a person towards some goal. It activates
human needs and creates the desire to work. Thus, an incentive is a means of motivation.
In organizations, increase in incentive leads to better performance and vice versa.

NEED FOR INCENTIVES

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Man is a wanting animal. He continues to want something or other. He is never fully
satisfied. If one need is satisfied, the other need need arises. In order to motivate the
employees, the management should try to satisfy their needs. For this purpose, both
financial and non financial incentives may be used by the management to motivate the
workers. Financial incentives or motivators are those which are associated with money.
They include wages and salaries, fringe benefits, bonus, retirement benefits etc. Non
financial motivators are those which are not associated with monetary rewards. They
include intangible incentives like ego-satisfaction, self-actualization and responsibility.
INCENTIVES

Financial Incentives Non-financial incentives

- Wages and Salaries. - Competition

- Bonus - Group recognition
- Medical reimbursement - Job security
- Insurance - Praise
- Housing facility - Knowledge of result
- Retirement benefits. - Workers participation.
- Suggestion system.
- Opportunities for
growth

2.8 Motivation is the key to performance improvement

There is an old saying you can take a horse to the water but you cannot force it to drink;
it will drink only if it's thirsty - so with people. They will do what they want to do or
otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory
tower' they must be motivated or driven to it, either by themselves or through external
stimulus.

Are they born with the self-motivation or drive? Yes and no. If no, they can be
motivated, for motivation is a skill which can and must be learnt. This is essential for
any business to survive and succeed.

Performance is considered to be a function of ability and motivation, thus:

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  Job performance =f(ability)(motivation)

Ability in turn depends on education, experience and training and its improvement is a
slow and long process. On the other hand motivation can be improved quickly. There are
many

options and an uninitiated manager may not even know where to start. As a guideline,
there are broadly seven strategies for motivation.

There are broadly seven strategies for motivation.

 Positive reinforcement / high expectations

 Effective discipline and punishment
 Treating people fairly
 Satisfying employees needs
 Setting work related goals
 Restructuring jobs
 Base rewards on job performance

Essentially, there is a gap between an individual’s actual state and some desired state and
the manager tries to reduce this gap. Motivation is, in effect, a means to reduce and
manipulate this gap.

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 CHAPTER 3

COMPANY PROFILE
INDUSTRY PROFILE

26
 COMPANY PROFILE
“Future” – the word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. Future encourages us to explore areas yet unexplored, write rules
yet unwritten; create new opportunities and new successes. To strive for a glorious future
brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.
We, in Future Group, will not wait for the Future to unfold itself but create future
scenarios in the consumer space and facilitate consumption because consumption is
development. Thereby, we will effect socio-economic development for our customers,
employees, shareholders, associates and partners.
Our customers will not just get what they need, but also get them where, how and when
they need.
We will not just post satisfactory results, we will write success stories.
We will not just operate efficiently in the Indian economy, we will evolve it.
We will not just spot trends; we will set trends by marrying our understanding of the
Indian consumer to their needs of tomorrow.
It is this understanding that has helped us succeed. And it is this that will help us
succeed in the Future. We shall keep relearning. And in this process, do just one thing.
Rewrite Rules. Retain Values.
Group Vision
Future Group shall deliver Everything, Everywhere, Everytime for Every Indian
Consumer in the most profitable manner.
Group Mission
We share the vision and belief that our customers and stakeholders shall be served only
by creating and executing future scenarios in the consumption space leading to economic
development.
We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments – for classes and for masses.
We shall infuse Indian brands with confidence and renewed ambition.
We shall be efficient, cost- conscious and committed to quality in whatever we do. We
shall ensure that our positive attitude, sincerity, humility and united determination shall
be the driving force to make us successful.
Core Values
Indianness: confidence in ourselves.
Leadership: to be a leader, both in thought and business.
Respect & Humility: to respect every individual and be humble in our conduct.

27
Introspection: leading to purposeful thinking.
Openness: to be open and receptive to new ideas, knowledge and information.
Valuing and Nurturing Relationships: to build long term relationships.
Simplicity & Positivity: Simplicity and positivity in our thought, business and
action.
Adaptability: to be flexible and adaptable, to meet challenges.
Flow: to respect and understand the universal laws of nature.
Pantaloon is not just an organization – it is an institution, a centre of learning &
development. We believe that knowledge is the only weapon at our disposal and our
quest for it is focused, systematic and unwavering.
At Pantaloon, we take pride in challenging conventions and thinking out of the box, in
travelling on the road less travelled. Our corporate doctrine, ‘Rewrite Rules, Retain
Values’ is derived from this spirit.
Over the years, the company has accelerated growth through its ability to lead
change. A number of its pioneering concepts have now emerged as industry
standards. For instance, the company integrated backwards into garment
manufacturing even as it expanded its retail presence at the front end, well before
any other Indian retail company attempted this. It was the first to introduce the
concept of the retail departmental store for the entire family through Pantaloons in
1997. The company was the first to launch a hypermarket in India with Big
Bazaar, a large discount store that it commissioned in Kolkata in October 2001.
And the company introduced the country to the Food Bazaar, a unique 'bazaar'
within a hypermarket, which was launched in July 2002 in Mumbai. Embracing
our leadership value, the company launched aLL in July 2005 in Mumbai, making
us the first retailer in India to open a fashion store for plus size men and women.
Today we are the fastest growing retail company in India. The number of stores is
going to increase many folds year on year along with the new formats coming up.
The way we work is distinctly "Pantaloon". Our courage to dream and to turn our
dreams into reality – that change people’s lives, is our biggest advantage.
Pantaloon is an invitation to join a place where there are no boundaries to what
you can achieve. It means never having to stop asking questions; it means never
having to stop raising the bar. It is an opportunity to take risks, and it is this
passion that makes our dreams a reality.
Come enter a world where we promise you good days and bad days, but never a
dull moment!

28
Joint Ventures Companies:
CapitaLand Retail India
The group is a joint venture partner in CapitaLand Retail India, along with Singapore-
based Capital and Limited. The company provides retail management services to retail
properties owned or managed by various group companies and investment funds.
Footmark Retail
Foot mart Retail is a joint venture with Liberty Shoes and is engaged in the retailing of
footwear products in India.
Planet Retail Holdings Ltd.
The group is a joint venture partner in Planet Retail Holdings Ltd., which operates
sports, lifestyle and leisure retail chain. It also owns the franchisee and distribution rights
of brands like Marks & Spencer, Guess, Debenhams and Puma in India.

LINES OF BUSINESS
E-tailing: Futurebazaar.com.
Food: Brew Bar, Café Bollywood, Chamosa, Sports Bar, Food Bazaar
Fashion: aLL, Big Bazaar, Central, Fashion Station, Ginny & Jony, Pantaloons, Lee
Cooper.
Home & Electronics: Home Town, Furniture Bazaar, Electronics Bazaar, E-zone,
Collection i.
Telecom & IT: Gen M, M bazaar, M-Port.
General Merchandise: Central, Brand Factory, Fashion Station, Shoe Factory,

29
 COMPANY TIMELINE
Major Milestones
1987
Company incorporated as Manz Wear Private Limited. Launch of Pantaloons
trouser, India’s first formal trouser brand.
1991
Launch of BARE, the Indian jeans brand.
1992
Initial public offer (IPO) was made in the month of May.
1994
The Pantaloon Shoppe – exclusive menswear store in franchisee format launched
across the nation. The company starts the distribution of branded garments
through multi-brand retail outlets across the nation.
1995
John Miller – Formal shirt brand launched.
1997
Pantaloons – India’s family store launched in Kolkata.
2001
Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain
launched.
2002
Food Bazaar, the supermarket chain is launched.

2004
Central – ‘Shop, Eat, Celebrate in the Heart of Our City’ - India’s first seamless
mall is launched in Bangalore.
2005
Fashion Station - the popular fashion chain is launched

aLL – ‘a little larger’ - exclusive stores for plus-size individuals is launched

2006
30
Future Capital Holdings, the company’s financial arm launches real estate funds
Kshitij and Horizon and private equity fund Indivision. Plans forays into
insurance and consumer credit.
2007

Future Group crosses $1 billion turnover mark.

Specialized companies in retail media, logistics, IPR and brand

development and retail-led technology services become
operational.

Pantaloon Retail wins the International Retailer of the Year at US-

based National Retail Federation convention in New York and
Emerging Retailer of the Year award at the World Retail Congress
held in Barcelona.

Futurebazaar.com becomes India’s most popular shopping portal.

2015 Future Capital Holdings becomes the second group company to

make a successful Initial Public Offering in the Indian capital
markets.

Big Bazaar crosses the 100-store mark, marking one of the

fastest ever expansion of a hypermarket format anywhere in the
world.

Total operational retail space crosses 10 million square feet mark.

Future Group acquires rural retail chain, Aadhar present in 65

rural locations.

AWARDS & RECOGNITION

31
2009
Images Fashion Forum 2009

 Most Admired Fashion Group Of The Year - Future Group.

 Most Admired Private Label - Pantaloons, the lifestyle
format.
 Critics Choice for Pioneering Effort in Retail Concept
Creation - Central.

Coca-Cola Golden Spoon Awards 2009

 Most Admired Food & Grocery Retailer Of The Year .

 Most Admired Food Court.

 Most Admired Food Professional.

2015

 Most Admired Retail Company of the year - Future Group.

 Retail Face of the Year - Kishore Biyani.
 Best Retailer Of The Year ( Hypermarket) - Big Bazaar .

Coca-Cola Golden Spoon Awards 2015

 Most Admired Food & Grocery Retail Visionary of the

Year: Kishore Biyani.
 Most Admired Food & Grocery Retailer of the Year –
Supermarkets: Food Bazaar
 Most Admired Food & Grocery Retailer of the Year -
Hypermarkets: Big Bazaar
 Most Admired Retailer of the Year - Dynamic Growth in
Network Expansion across Food, Beverages & Grocery:
Future Group
 Most Admired Food & Grocery Retailer of the Year -
Consumer's Choice: Big Bazaar

2007

 National Retail Federation Awards International Retailer for the Year 2007
– Pantaloon Retail (India) Ltd.
32
  World Retail Congress Awards Emerging Market Retailer of the Year 2007
– Pantaloon Retail (India) Ltd.

 Hewitt Best Employers 2007 Best Employers in India (Rank 14th) –

Pantaloon Retail (India) Ltd.

 PC World Indian Website Awards Best Indian Website In The Shopping

Category -Futurebazaar.com

 Reader’s Digest Trusted Brands Platinum Awards Trusted Brands Platinum

Award (Supermarket Category) – Big Bazaar

2006

 Retail Asia Pacific Top 500 Awards Asia Pacific Best of the Best Retailers
– Pantaloon Retail (India) Ltd Best Retailer in India – Pantaloon Retail
(India) Ltd.

 Asia money Awards Best Managed Company in India (Mid-cap) –

Pantaloon retail (India) Ltd.

 Ernst & Young Entrepreneur of the Year Award Ernst & Young
Entrepreneur of the Year (Services) – Kishore Biyani

 CNBC Indian Business Leaders Awards The First Generation Entrepreneur

of the Year – Kishore Biyani

Images Retail Awards

 Best Value Retail Store – Big Bazaar Best Retail Destination – Big Bazaar
Best Food & Grocery Store – Food Bazaar Retail Face of the Year – K.
Biyani

 Readers’ Digest Awards Platinum Trusted Brand Award -Big Bazaar

 CNBC Awaaz Consumer Awards Most Preferred Large Food & Grocery
Supermarket – Big Bazaar
 Reid & Taylor Awards for Retail Excellence Retail Entrepreneur of the
Year – Kishore Biyani
2005
Images Retail Awards 2005

 PRIL- Most Admired Retailer of the Year.

 Food Bazaar- Retailer of the Year (Food and Grocery).

 Big Bazaar-Retailer of the Year (Value Retailing).
 Central-Retail Launch of the Year.

33
 Voted by Business Today magazine as one of the

 Top 20 Companies in India to watch in 2005.

 India’s most investor-friendly companies in the top 75.
 India’s Biggest wealth creators in the top 100.

DAKS London

 PRIL- Brand Builder of the Year.

Images Retail Awards 2004

 PRIL- Most Admired Retailer of the Year.

 Food Bazaar- Retailer of the Year (Food and Grocery).
 Big Bazaar-Retailer of the Year (Value Retailing).
 Central-Retail Launch of the Year.

Reid & Taylor and DLF Awards

 PRIL - Retailer of the year.

2003
Indian Express Award

 PRIL –Marketing Excellence and Excellence in Brand Building.

Hierarchy of Pantaloon (Future Group)

Mr. Kishore Biyani, Managing Director

Mr. Gopikishan Biyani, Whole time Director

Mr. Rakesh Biyani, Whole time Director

Mr. Ved Prakash Arya, Director

Mr. Shailesh Haribhakti, Independent Director

Mr. S Doreswamy, Independent Director

Dr. D O Koshy, Independent Director

Ms. Anju Poddar, Independent Director

34
 Ms. Bala Deshpande, Independent Director

Mr. Anil Harish, Independent Director

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, Whole time Director

Gopikishan Biyani is a commerce graduate and has more than twenty years of
experience in the textile business.

Mr. Rakesh Biyani, Whole time 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. Vijay Kumar Chopra, Independent Director

V.K.Chopra is a fellow member of The Institute of Chartered Accountants of India

(ICAI) by profession and is a Certified Associate of Indian Institute of Bankers
(CAIIB). His banking career spans over 31 years and he has served senior management
positions in Central Bank of India, Oriental Bank of Commerce, SIDBI, Corporation
Bank and SEBI.

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

35
several Public Limited Companies, including Indian Petrochemicals Corporation Ltd.,
Ambuja Cement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999.

Mr. S Doreswamy, Independent Director

S. Doreswamy, is a former Chairman and Managing Director of Central Bank of India

and serves on the board of DSP Merrill Lynch Trustee Co and Ceat Limited among
others.

Dr. D O Koshy, Independent Director

D. O. Koshy holds a doctorate from IIT, Delhi and is the Director of National Institute
of Design (NID), Ahmedabad. He has over 24 years of rich experience in the textiles
and garment industry and was instrumental in the setting up of NIFT centres in Delhi,
Chennai and Bangalore. He is a renowned consultant specializing in international
marketing and apparel retail management.

Ms. Bala Deshpande, Independent Director

Bala Deshpande is Independent Director, Pantaloon Retail (India) Ltd. and also serves
on the boards of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus
League Clothing Ltd, among others.

Mr. Anil Harish, Independent Director

Anil Harish is the partner of DM Harish & Co. Associates & Solicitors and an LLM
from University of Miami. He also serves on the board of Mahindra Gesco, Unitech,
IndusInd Bank and Hinduja TMT, among others.
Future group major format and its CEO’S

36
Rakesh Biyani CEO – Retail
Anshuman
CEO - Value Fashion
Singh
Damodar Mall CEO - Incubation & Innovation
Hans Udeshi CEO - General Merchandising
Hemchandra
CEO - Home Solutions Retail (India) Ltd.
Javeri
Kailash Bhatia CEO - Integrated Merchandising Group
Madhumati
CEO - Services
Lele
Sadashiv
CEO - Big Bazaar
Nayak
Sadashiv
CEO - Food Bazaar
Nayak
Sanjeev
CEO – Pantaloons
Aggarwal

37
Vishnu Prasad CEO - Central & Brand Factory
Kruben
President- Operations (Value Retailing)
Moodliar
Mayur
Head - Operations (North Zone)
Toshniwal
Rajesh Joshi Head - Operations (West Zone)
Rohit Malhotra Head - Operations (South Zone)
Sandeep
Head - Operations (East Zone)
Marwaha
Sanjay Jog Head - Human Resources
Ushir Bhatt Executive Board Member
Atul Takle Head - Corporate Communications
Prashant Desai Head - Group IR & New Ventures (PE)
Vinay Shroff Head - Supply Chain Management

38
 BIG BAZAAR PROFILE
Big Bazaar-A paradigm shift to the Modern Retail Bazaar

Big Bazaar PRIL’s Hypermarket format that truly heighten up the expectation
of value conscious Indian customer to a new level ever before, it’s Head
quarter in Jogeshwari, Mumbai. It has changed the customer’s perception to
that extent that they have already started to realize that Big Bazaar can
provide real value for their money. The first store opened in Kolkata in 2001 at
VIP and was followed by stores in Hyderabad and Bangalore in short span of
22 days. These stores contributed over Rs.43 crores to the company’s business
and over Rs. 2.89 crores to the profit in first year itself. With giving actual
value of the money big bazaar fully came true on the expectation of the Indian
common man. Actually big bazaar targets lower middle class customer so by
seeing Indian economic prospective it is very popular among the its target
market. At this time Mahindra shing dhoni, Asain is a brand ambassador of big
bazaar. • Its tagline is “Isse sasta aur accha kahin nahin” First Food Bazaar
format was added as Shop- In-Shop within Big Bazaar in the year 2002 • Big
Bazaar and Food Bazaar -blend the look, feel and touch of Indian bazaars with
modern retail concepts of choice, convenience and quality. By observing the
customer big bazaar announce Wednesday as a cheapest day of the week .with
all this popularity of big bazaar is touching a land mark every and because of
this within a span of eight year the total no. of store has gone up to 113.
Mainly big bazaar has been established at busy street and it has been designed
in such a manner so that may look crowded.

39
 SWOT ANALYSIS OF BIG BAZAAR

STRENGTH

 High brand equity in evolving retail markets.

 State of art infrastructure of the big bazaar outlets.
 Point of purchase promotions to increase the purchase.
 Variety of stuff under single roof increasing customer, time and
available choices.
 Every day low price.

WEEKNESS

 Unable to meet store opening target.

 Falling revenue per square fit.

OPPORTUNITY

 Organised retails are just 4.15% of total pie of Indian retail market.
 Evolving customer preferences in recent years
 Targeting Area more prone to.
 Economic condition development.
 Store experience improvements.

40
THREAT

 Competitors, Big global players are planning to foray into the market.
 Unorganized retail market of India.
 Government policies are not defined in emerging market like India.

41
 INDUSTRY PROFILE

Retail means selling goods and services in small quantities directly to customers.
Retailing consists of all activities involved in marketing of goods and services directly
to consumer for their personnel family and household use.

The Indian retailing industry is becoming intensely competitive, as more and more
payers are Vying for the same set of customers. The major retail players are Pantaloon
Retail, Shoppers Stop, Reliance, etc.,

Retailing is one of the biggest sectors and it is witnessing revolution in India. The new
entrant in retailing in India signifies the beginning of retail revolution. India's retail
market is expected to grow tremendously in next few years. According to AT Kearney,
The Windows of Opportunity shows that Retailing in India was at opening stage in
1995 and now it is in peaking stage in 2006. India's retail market is expected to grow
tremendously in next few years. India shows US$330 billion retail market that is
expected to grow 10% a year, with modern retailing just beginning. India ranks first in
2005. In fact, in 2005 and 2006, India is the most compelling opportunity for
retailers, because now India is in peaking stage.

Sector details
1. Introduction to retail industries.
2. Retail word is derived French word retailer means to cut off a piece.
3. Retailing includes all the activities involved in selling goods or services to the
final customer for personnel or non-business use.
4. Supermarket is a retailing of a wide variety of consumer products under one
roof, ample stock, stock of several brands & extended business hours.

History of retailing

42
Retail concept is old in India. World’s first departmental store started in Rome.
Today’s kirana stores are based on Manusmriti & Kautilya’s arthshastra.
Haats, Melas, Mandis & door to door salesmen are traditional Indian retail.
Vishal Mega Mart is a retail sector, which is providing good quality of products in
very reasonable price than its competitors. Retailing and wholeselling consist of many
organizations designed to bring goods and services from the point of production to the
point of use.
Retailing includes all the activities involved in selling goods or services directly to
final consumers for their personal, non-business use. Retailers can be classified in
terms of store retailers, non-store retailing, and retail organizations.
Store retailers include many types, such as specialty stores, department stores,
supermarkets, convenience stores, superstores, combination stores, hypermarkets,
discount stores, warehouse stores, and catalog showrooms. These store forms have
had different longevities and are at different stages of the retail life cycle. Depending
on the wheel-of-retailing, some will go out of existence because they cannot compete
on a quality, service, or price basis.
Non-store retailing is growing more rapidly than store retailing. It includes direct
selling (door-to-door, party selling), direct marketing, automatic vending, and buying
services.
Much of retailing is in the hands of large retail organizations such as corporate chains,
voluntary chain and retailer cooperatives, consumer cooperatives, franchise
organizations, and merchandising conglomerates. More retail chains are now
sponsoring diversified retailing lines and forms instead of sticking to one form such as
the department store.
Retailers, like manufacturers, must prepare marketing plans that include decisions on
target markets, product assortment and services, store atmosphere, pricing, promotion,
And place. Retailers are showing strong signs of improving their professional
management and their productivity, in the face of such trends as shortening retail life
cycles, new retail forms, increasing intertype competition, and polarity of retailing,
new retail technologies, and many others.
Wholesaling includes all the activities involved in selling goods or services to those
who are buying for the purpose of resale or for business use. Wholesalers help
manufacturers deliver their products efficiently to the many retailers and industrial
users across the nation. Wholesalers perform many functions, including selling and

43
promoting, buying and assortment-building, bulk-breaking, warehousing,
transporting, financing, risk bearing, supplying market information, and providing
management services and counseling. Wholesalers fall into four groups. Merchant
wholesalers take possession of the goods and include full-service wholesalers
(wholesale merchants, industrial distributors) and limited-service wholesalers (cash-
and- carry wholesalers, truck wholesalers, drop shippers, rack jobbers, producers'
cooperatives, and mail-order wholesalers). Agents and brokers do not take possession
of the goods but are paid a commission for facilitating buying and selling.
Manufacturers' and retailers' branches and offices are wholesaling operations
conducted by non-wholesalers to bypass the wholesalers. Miscellaneous wholesalers
include agricultural assemblers, petroleum bulk plants and terminals, and auction
companies.
Wholesalers, too, must make decisions on their target market, product assortment and
services, pricing, promotion, and place. Wholesalers who fail to carry adequate
assortments and inventory and provide satisfactory service are likely to be bypassed
by manufacturers. Progressive wholesalers, on the other hand, are adapting marketing
concepts and streamlining their costs of doing business.
CURRENT SCENARIO
India rank first in terms of emerging market potential in retail sector. Current retail
market is US $ 215 billion. Growth rate of retail sector in India is 8-10% per annum.
Near about 12 million retail outlets are spread across India.
FDI in retail sector increases from US $ 3.1 billion in 2003 to over US $7.6 billion in
2009.

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

44
OTHER SERVICES PROVIDED BY RETAILERS

Retail not only provides products to the customer but also gives different types of
services like:
 Airlines & travel agents
 Banks
 Health clubs
 Hotel & Restaurants
 Movie theatres
TECHNOLOGIES USED IN RETAILING SECTOR
 In-store technologies-
 Interactive kiosks
 Virtual display case
 Radio Frequency identification tags
 Self-scanning & self-checkout system
 Body scanning

 Online technology-
 Online display of products
 nline shopping
CHALLENGES

 Largely urban phenomenon, pace of growth is still slow.

 Not being recognized as an industry in India so availability of finance is low to
new market players.
 High cost of real estate.
 High stamp duties.
 Lack of infrastructure.
 Multiple & complex taxation system.
 Protest against retail sector.

45
FUTURE STRATEGY
 It is projected that up to 2010 retail sector will be worth around US $ 300
billion.
 FDI is going to increase rapidly, up to 2010 retail sector will become biggest
industry in India.
 Retail sector is expected to create 2 million jobs up to 2010.
 According to Indian Retail Report top 10 players in modern retail trade are
going to invest US $ 18-20 billion in next five years.

Sector Details

In India, the most of the retail sector is unorganized. In India, the retail business
contributes around 10 percent of GDP. Of this, the organized retail sector accounts
only for about 5 percent share, and the expected annual growth rate is 5% per
annum and remaining share is contributed by the unorganized sector. The main
challenge facing the organized sector is the competition from unorganized sector.
Unorganized retailing has been there in India for centuries, theses are named as mom-
pop stores. The main advantage in unorganized retailing is consumer familiarity that
runs from generation to generation. It is a low cost structure, they are mostly operated
by owners, has very low real estate and labor costs and has low taxes to pay. And it
also gives 8% Employment to the country annually.

In late 1990's the retail sector has witnessed a level of transformation. Retailing is
being perceived as a beginner and as an attractive commercial business for organized
business i.e. the pure retailer is starting to emerge now. Organized retail business in
India is very small but has tremendous scope. The total in 2005 stood at $225 billion,
accounting for about 10% of GDP. In this total market, the organized retail accounts
for only $8 billion of total revenue. According to A T Kearney, the organized retailing
is expected to be more than $23 billion revenue by 2010.

In organized retailing will grow faster than unorganized sector and the growth speed
will be responsible for its high market share, which is expected to be $ 17 billion by
2010-11.

46
The organized sector is expected to grow faster than GDP growth in next few years

driven by favorable demographic patterns, changing lifestyles, and strong income

growth. This organized retail sector mix includes supermarkets, hypermarkets

discounted stores and specialty stores, departmental stores. For example, Spencer

network has 69 stores, which includes seven Spencer hypermarkets, three Spencer

super markets and 49 Spencer Daily’s. Now the company is planning to open 20

stores in 10 cities in six months. The top 10 retailers account only for 2% of total

market, today modern retailing is expected to enter a boom phase, which has major

players and these players might capture 10% of total market, within next five years.

The retail sales in India for future are shown below (data from 2005-2015 is based on

estimates)

The trend in the Industry

1. Low share of organized retailing
2. Falling real estate prices
3. Increase in disposable income and customer aspiration

Increase in expenditure for luxury items (CHART)

47
Another credible factor in the prospects of the retail sector in India is the increase in
the young working population. In India, hefty pay packets, nuclear families in urban
areas, along with increasing working-women population and emerging opportunities
in the services sector. These key factors have been the growth drivers of the organized
retail sector in India which now boast of retailing almost all the preferences of life -
Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home &
Office Products, Travel and Leisure and many more. With this the retail sector in
India is witnessing rejuvenation as traditional markets make way for new formats
such as departmental stores, hypermarkets, supermarkets and specialty stores.

Existing competition

 Reliance fresh.
 Aditya Birla group.
 Shopper’s Shoppe.
 Subhiksha.
 Big bazaar.
 Mark and Spencer’s.

The untapped scope of retailing has attracted superstores like Wal-Mart into India,
leaving behind the kiranas that served us for years. Such companies are basically IT
based. The other important participants in the Indian Retail sector are Bata, Big
Bazaar, Pantaloons, Archies, Cafe Coffee Day, landmark, Khadims, Crossword, to
name a few.

EVOLUTION OF INDIAN RETAIL INDUSTRY

Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take
place. The inception of the retail industry dates back to times where retail stores
were found in the village fairs, Mela’s or in the weekly markets. These stores were
highly unorganized. The maturity of the retail sector took place with the establishment
of retail stores in the locality for convenience. With the government intervention the
retail industry in India took a new shape. Outlets for Public Distribution System,
Cooperative stores and Khadi stores were set up. These retail Stores demanded low
investments for its establishment. International Brand Outlets, Hyper or Super
markets, shopping malls and departmental stores

48
Retailing in India: a forecast
Future of organized retail in India looks bright. According to recent researches it is

projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2015. It will

capture a share of 10% of the total retailing by the end of 2010.

INDIA: A Hot Spot

India retail industry is the largest industry in India, with an employment of around
8% and contributing to over 10% of the country's GDP. Retail industry in India is
expected to rise 25% yearly being driven by strong income growth, changing
lifestyles, and favorable demographic patterns.

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

Shopping in India has witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering. Industry of retail in India
which have become modern can be seen from the fact that there are multi- stored
malls, huge shopping centers, and sprawling complexes which offer food, shopping,
and entertainment all under the same roof.

India retail industry is expanding itself most aggressively; as a result a great demand
for real estate is being created. Indian retailers preferred means of expansion is to
expand to other regions and to increase the number of their outlets in a city. It is
expected that by 2010, India may have 600 new shopping centers.

In the Indian retailing industry, food is the most dominating sector and is growing at a
rate of 9% annually. The branded food industry is trying to enter the India retail

49
industry and convert Indian consumers to branded food. Since at present 60% of the
Indian grocery basket consists of non- branded items.

As the contemporary retail sector in India is reflected in sprawling shopping centers,

multiplex- malls and huge complexes offer shopping, entertainment and food all
under one roof, the concept of shopping has altered in terms of format and consumer
buying behavior, ushering in a revolution in shopping in India. This has also
contributed to large-scale investments in the real estate sector with major national and
global players investing in developing the infrastructure and construction of the
retailing business.

Growth Drivers

Growth drivers in India for retail sector

 Rising incomes and improvements in infrastructure are enlarging consumer

markets and accelerating the convergence of consumer tastes.
 Liberalization of the Indian economy
 Increase in spending Per capital Income.
 Advent of dual income families also helps in the growth of retail sector.
 Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic,
etc.
 Consumer preference for shopping in new environs

The Internet revolution is making the Indian consumer more accessible to the
growing influences of domestic and foreign retail chains. Reach of satellite T.V.
 Channels are helping in creating awareness about global products for local
markets.
 About 47% of India's population is under the age of 20; and this will increase to
55% by 2015. This young population, which is technology-savvy, watch more
than 50 TV satellite channels, and display the highest propensity to spend, will
immensely contribute to the growth of the retail sector in the country.
 Availability of quality real estate and mall management practices
 Foreign companies' attraction to India is the billion-plus population.

Employment opportunities in retail sector in India

50
India's retail industry is the second largest sector, after agriculture, which provides
employment. According to Associated Chambers of Commerce and Industry of India
(ASSOCHAM), the retail sector will create 50,000 jobs in next few years.

Retail companies are starting retail management courses in partnership with

management institutes, roping in talent from other sectors and developing
comprehensive career growth and loyalty plans for existing employees.

Top players like Pantaloon Retail India Limited, Trent, Shopper's Stop, RPG Group
and ebony are virtually on their toes.

Consider the plans of largest player, The Pantaloon Retail India Ltd, the company has
developed a comprehensive strategy, where in it expects that in 2years, it will not
recruit any new managers from outside.

"The estimated need is 1 lakh of employees till 2011", said Mr. Sanjoy Jog, HR Head
at Pantaloon Retail India Ltd. Pantaloon has the concept of partnership with
educational Institute to run retail courses across the entire chain. Trent has also started
in-house learning programmers and now goes to under graduate colleges to recruit
students.

Since, the job market is hugely receptive to this with more and more business schools
focusing on the sector and large retailers setting up retail academics.

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 the following hurdles:

* The first challenge facing the organized retail sector is the competition from
unorganized sector.
* In retail sector, Automatic approval is not allowed for foreign investment.
* Taxation, which favors small retail businesses.
* Developed supply chain and integrated IT management is absent in retail sector.
* Lack of trained work force.
 Low skill level for retailing management.

51
  Intrinsic complexity of retailing- rapid price changes, threat of product
obsolescence and low margins.
* Organized retail sector has to pay huge taxes, which is negligible for small retail
business.
Many agencies have estimated differently about the size of organized retail market
in 2010. The one thing that is common amongst these estimates is that Indian
organized retail market will be very big in 2010. 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.

Competition in retail

India RetailBiz attempts to capture excitement of Retail Business in India by

aggregating the best in news, views, research, analysis, trends, technology, and
competition dents retail sector growth.

The performance of the retail sector in the last quarter of financial year 2015-09 has
been a gloomy one. Not only has the quarter-on-quarter growth declined by 700 basis
point, on year-on-year (YoY) basis, sales growth fell drastically from 67.8% to 49.1%.
Including the recently listed Koutons and Vishal Retail, all big retailers continue to be
on an aggressive expansion mode. This kind of competition is having a negative
impact on margins of retailers, as the target audience for all of them, more or less,
remains the same.

The slowdown has triggered a volume game in the industry. Strategies like
promotional campaigns, freebies, promoting private labels and online discounts are
just some of the avenues that retailers are looking at to lure customers. According to
analysts, this is a knee-jerk reaction by the industry to fight the inflation-induced dent
in the purchasing power of customers. As they say, retail is a number game, so, big
retailers are trying to push volumes. For some, it comes at the cost of profit.
Meanwhile, in contrast to YoY sales growth of 49% for the sector, the interest cost has
registered a whopping 96% growth. Though growing at a lesser 39%, depreciation
cost has also been impacting margins.

52
The cost factor too is adding to the woes. For instance, during the quarter, Shoppers
Stop opened its new stores in various formats. Provogue and Pantaloon followed
soon. The companies are increasing their geographical presence in the wake of
increasing competition. Launch of new formats continues to catch the attention of
these retailers. In fact, a couple of these new formats are already generating profit at
the operating level, thus showing a positive sign towards growth.

Like for Shoppers Stop, the average transaction size increased by about 7% for the
current quarter over the same quarter in the previous year. Players like Provogue and
Pantaloons too have witnessed a similar upward movement. Also, though growth in
total expenses as a whole has almost been equivalent to the growth in sales at about
47%, some individual cost items like staff costs, selling and administration costs are
under control. On a YoY basis, staff cost has grown at 26% against 44% in the
corresponding quarter of the previous year.

Nonetheless, raw material cost continues to remain high - it grew by 66% in the last
quarter and now is equivalent to 74% of the industry's aggregate net sales. This is the
reason why operating margins have reduced to 4.8% of the revenue sale compared
with 5.7% during the corresponding quarter of the previous year.

Among individual retailers, Pantaloon Retail continues to outgrow the industry - it

recorded 57% a YoY growth in net sales during March 2015 quarter. Although it is
lower compared with the 63% growth recorded during the December quarter,
momentum continues to favour the company. New stores drove the growth in value-
for-money format - strategies such as KB's Fair Price and online shopping are picking
up. Their home store division has also been doing well. Next on growth charts is
Provogue, which grew 40% in the last quarter, similar to the previous quarter.

In short, setting up of new stores has resulted in higher working capital funding,
which has raised the industry's interest outgo. For Pantaloon, interest cost has almost
doubled during the current quarter - as a proportion of sales, it has increased from
2.7% to 3.2% on a YoY basis. Provogue seems to be an exception in this as it recorded
the highest increase of 100 basis points in interest cost for March 2015. Overall, the
profitability margin has seen a sharp decline.

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Only Shoppers Stop has registered some profit compared with its performance in the
corresponding quarter of the previous year. The company's net profit margin now
stands at 0.7% of net sales as compared to -1% in March 2007 quarter. It can be
concluded that margins of retail companies seem to have been hit by costs related to
their ambitious expansion programmer. Expansion plans for some of them are running
behind schedule. It has led to higher interest cost, yet retail companies are trying hard
to cut costs by keeping inventory and carrying costs under control.

Big retailers at loggerheads with MNCs over brands

A serious conflict is brewing between Indian retailers and multinationals over imports
of global brands. To stay afloat in the dog-eat-dog world of retail, local retailers have
reached arrangements with overseas players to bring in some international brands,
rattling many MNCs who manufacture or market these products locally. In some
cases, these brands have not yet been introduced in India.

Several major MNCs with a long presence in India are invoking the Intellectual
Property Rights (imported goods) Enforcement Rules 2007 to stop retailers from
importing foreign brands. Hindustan Unilever, L’Oreal, Lancome Perfumes, Oakley
Inc, Nivea and Mico have already registered several brands with the Customs
department. Sources said other MNCs are expected to follow suit.

Market circles perceive this as a move to prevent Indian retailers from getting first
access to these brands. Some of the retailers are debating plans to legally contest the
move, since they possess a free sale certificate from the source of import. Retailers
like Big Bazaar & Food Bazaar, Reliance Retail, Spencer’s and Sankalp Retail
(MyDollarStore), among others, have begun importing sizeable consignments of
leading consumer brands and their variants for better fill rates, product variety and
higher margins.

However, the multinationals are not amused, and claim that it leads to loss of business
opportunity, unfair competition and product cannibalization. The fundamental issue
here, according to analysts, is that the Indian arms of the leading FMCG companies
would like to control the way their brands are marketed and sold. They would also

54
like to determine when new products and variants of existing products should be
introduced in India.

A key reason for retailers to step up imports is bottom lines. Profit margins on
imported products are around 20% more than local brands, where producers and
retailers are at loggerheads over sharing margins.

“We are concerned over issues like protecting the properties of our brands, including
quality and consumer perception. Such unplanned imports create brand confusion in
the minds of consumers, since the properties of an imported brand are completely
different from the domestic ones, which are localized to suit the specific region’s
requirements. An unpleasant experience may work against our brand,” said a high-
ranking official in a leading multinational, which makes personal care products.

Retailers claim they are creating ‘demand in advance’ for the multinationals, which
would otherwise have to invest heavily in marketing and ad spends to promote the
brands. Analysts say the developments are the natural effects of a globalised market
that India is moving towards, which upsets the conventional distribution and trade
practices.

Big players - plans and investments

State of Competition in the Wholesale and Retail Sector

The study assesses the state of competition in the Philippine wholesale and retail

sector, focusing on the distribution of specialized goods and pharmaceutical products.

It uses the traditional tools of analysis like concentration ratios and price-cost margins

in determining the competitive state of the sector. The study also analyzes the other

dimensions in retail competition like price, geographical location, and retail product

and retail service. Industry data from the National Statistics Office were used in the

analysis, aided by a small-scale survey conducted in the Metro Manila area.

55
The department store and grocery sub sector appears to operate in a competitive

environment despite the presence of two big dominating firms in the market. No price

or quantity leader-follower behavior was observed, as validated by the tools used in

the analysis. On the other hand, one firm, whose strategic advantages include

economies of scope and space, retail image and consumer loyalty, dominates the

distribution of pharmaceutical products. Potential market entrants face these forms of

challenges--factors that are not regarded as anti-competitive and are welfare

enhancing to the general public.

The need for competition policy is recommended to guard against possible merger of

the giant firms in the department store and grocery sub sector. Any possible collusion

between the big firms could result to a monopolistic outcome.

The study observes that the apparent high price of pharmaceutical products is mainly

attributed to the manufacturing process, and not at the distribution of these goods.

Hence, it is recommended that a study analyzing the state of competitiveness of

manufacturing pharmaceutical products be conducted. Thing else that is timely,

authentic Electronics retail sector could get new competition

Types of Retailing

There are several types we can see in Retailing. They are like:

Specialty Store:

Narrow product line with deep assortment, viz apparel stores, book stores etc. A
clothing store would be a single line store, men's clothing store would be limited line
store &men's custom-shirt store would be a super specialty store.
Example: The limited, The Body Shop.

Departmental Store:

Several products lines-typically clothing, household goods, home furnishings- with

each line operated as a separate department managed by specialist buyers or

56
merchandisers.
Example: Sears, Bloomingdale's.

Supermarkets:

Relatively large, low-cost, low-margin, high volume, self-service operation designed

to serve total needs for food, laundry & household maintenance products.
Example: Kroger, Safeway.

Convenience Stores:

Relatively small store located near residential area, open long hours, seven days a
week and carrying a limited line of high-turnover convenience products at slightly
higher prices.
Example: 7-Eleven, Circle K.

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 CHAPTER 4
DATA ANALYSIS

58
 ANALYSIS AND INTERPRETATION OF DATA

Table 4.1
Distribution of respondents according to age

Factors No of respondents Percentage (%)

Below 25 20 33.33

26-35 26 43.33
36-45 10 16.67

46 and above 4 6.67

Total 60 100

From the above table it is found that 33.33% are in the age group of below 25,
43.33% are in the age group of 26-35, 16.67% of respondents are in the age group of
36-45, and the remaining 6.67% of respondents are in the age group of 46 and above.
From the above study it is found that maximum respondents are in the age
group of 26-35.

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Table 4.2
Distribution of respondents according to gender

Factors No of respondents Percentage (%)

Male 35 58.33
Female 25 41.67
Total 60 100
Sources: Primary Data

From the above table it is found that 58.33% are male and remaining are female.

From the above study it is found that maximum respondents are male.

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Table 4.3
Distribution of respondents according to designation

Factors No of respondents Percentage (%)

Cashier 5 8.33
Sales man 40 66.67
Asst. manager 10 16.67
Manager 5 8.33
Total 60 100

Sources: Primary Data

From the above table it is found that 8.33% are cashier, 66.67% are sales man,
16.67% are asst. manager and remaining are manager.
From the above study it is found that maximum respondents are sales man.

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Table 4.4
Distribution of respondents according to average income

Factors No of respondents Percentage (%)

Below 60000 5 8.33
60000-80000 5 8.33
80000-100000 35 58.33
100000 and above 15 25.01
Total 60 100

From the above table it is found that 8.33% are below 60000, 8.33% of
respondents have an average income of 60000-80000, 58.33% of respondents have an
average income of 80000-100000, and remaining 25.01% of respondents have an
average income of 100000 and above.
From the above study it is found that maximum respondents have an average
income of 80000-100000

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Table 4.5
Distribution of respondents according to family size

Factors No of respondents Percentage (%)

One 15 25
Two 15 25
Three 10 16.66
Four 10 16.67
Five and above 10 16.67
Total 60 100

From the above table it is found that 25% of respondents are single, 25% are
two members, 16.66% of respondents having family size of three, 16.77% are having
family size of four and remaining respondents are having family size 5 and above.
From the above study it is found that maximum respondents are having family size of
one and two.

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Table 4.6
Distribution of respondents according to number of years of service

Factors No of respondents Percentage (%)

1 20 33.33
2 18 30
3 12 20
4 and above 10 16.67
Total 60 100

Sources: Primary Data

From the above table it is found that 33.33% have 1year of service, 30% are in
2 years of service, 20% of respondents have 3 years of service and the remaining
6.67% of respondents have 4 and above years of service.

From the above study it is found that maximum respondents have a tenure of
service of 1 year

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Table 4.7
Distribution of respondents according to no of promotion

Factors No of respondents Percentage (%)

Zero 40 66.66
One 10 16.66
Two 6 10
Three & above 4 6.67
Total 60 100

Sources: Primary Data

From the above table it is found that 66.66% have no promotion, 16.67% have one
promotion, 10% of respondents have 2 and the remaining 6.67% of respondents have
3 and above
From the above study it is found that maximum respondents did not receive
any promotions.

65
Table 4.8
Distribution of respondents according to orders per day

Factors No of respondents Percentage (%)

10 40 66.67
9 15 25
8 5 8.33
Total 60 100

Sources: Primary Data

From the above table it is found that 40% of respondents meet the target of 10
orders per day, 25% meets 9, and 8.33% of respondents meets 8 orders

From the above study it is found that maximum respondents meet the order of
10 per day.

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Table 4.9
Distribution of respondents according to working hours

Factors No of respondents Percentage (%)

9 40 66.67
8 20 33.33
Total 60 100

Sources: Primary Data

From the above table it is found that 66.67% of respondents have 9 working
hours and remaining respondents have 8 working hours.

From the above study it is found that maximum respondents are having 9
working hours.

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Table 4.10
Distribution of respondents according to no of leaves availed?

Factors No of respondents Percentage (%)

Five 24 40
Six 18 30
Seven 15 25
Eight and above 3 5
Total 60 100

Sources: Primary Data

From the above table it is found that 40% of respondents have availed 5
leaves, 30% have 6, 25% of respondents have 7 and remaining respondents have 8
and above leaves availed.

From the above study it is found that maximum respondents have availed 5
leaves.

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CHAPTER -5
QUESTIONNAIRE

69
 QUESTIONNAIRE

PART – A
1. Name : ………………………………………………………
2. Branch: ……………………………………………………….
3. Age :
a. below 25 b. b/w 26-35
c. b/w 36-45 d. 46 & above
4. Sex:
a. Male b. Female
5. Designation: …………………………………………………………..
6. Average income:
a. Below 60000 b. b/w 60000-80000
c. b/w 80000-100000 d. 100000 & above
7. Family size:
a. One b. Two c. Three
d. Four e. Five & above
8. No of years of service: ……………………………………………….
9. No of promotions: ………………………………………………………….
10. No of orders per day: ………………………………………………………….
11. No of working hours in a day : …………………………………………………
12. No of leaves availed: ……………………………………………………………

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 PART-B
.13. What is the reason for selecting your present job?
a. Good salary b. Multi National Company

c. Job Security d. Friendly atmosphere

e. Better career f. Closer to residence

g. Incentives/ Rewards g. Challenging

14. What are the types of rewards practiced in the organization?

a. Membership & Seniority based rewards

b. Job status based rewards

c. Competency based rewards

d. Performance based rewards

15. What is your opinion about the remuneration offered by the company?
a. Highly satisfactory b. Satisfactory

c. Undecided d. Dissatisfactory

16. What is your opinion about the incentives offered by the company?
a. Excellent b. Very good c. Moderate

d. Poor e. Very poor

17. How is the leave policy practiced by the organization?
a. Highly satisfactory b. Satisfactory c. Moderate
d. Dissatisfactory

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18. What is your opinion about the medical allowance benefit offered by the
company?
a. Excellent b. Very good c. Moderate
d. Poor
19. What is your opinion about the system of introducing flexible working hours in
the company?
a. Very important b. Important c. Undecided
d. Not so important
20. Do you think that the practice of individual target setting helps in better
performance?
a. Strongly agree b. Agree c. Undecided
d. Disagree
21. Do you feel that the team rewards increases the efficiency of members?
a. Yes b. No
22. If yes, then to what extent does the team rewards helps in increasing the efficiency
of the members?
a. To full extent b. Partially c. Not known
d. Very little e. Not at all
23. Does the fringe benefits programme presently practiced promotes and protects
your well being?
a. Yes b. No
24. If the company wants to offer additional fringe benefits in either cash or kind,
please indicate your preference?
Cash Kind
25. Do you feel that the system of suggestion scheme adopted by the organization has
helped in deriving benefits?
a. Yes b. No

26. What is your opinion about the extent of job facilities offered by the company?
a. Delightful b. Satisfactory c. Moderate

d. Not satisfactory e. Poor

72
27. What do you feel about the level of discounts offered by the company?
a. Very high b. High c. Medium

d. Low e. Very low

28. Pick out the most important motivating factor for the employee performance from
the following:
a. Remuneration offered

b. Incentives given
c. Leave policy practiced
d. Medical allowance benefit

e. Introduction of flexible working hours

f. Individual target setting

g. Team rewards

h. Fringe benefits

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CHAPTER -6
FINDINGS:
SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY

74
 SUGGESTIONS

The relationship managers of BIGBAZAAR.are exerting a great effort to perform

because the present motivational techniques adopted by the company are proving to
be in the desired direction.
From my study I have found some facts and some recommendations which may be
beneficial for the company to keep the motivational levels at desired position.
 As the company practices employee suggestions schemes, there is a felling among
the Employees that they suggestion offered by them if proved to be beneficial for
the organization do not lead to rewards hence the company should keep the
employees motivated by giving them suitable rewards and recognition for
effective suggestions.
 The benefits offered by the organization are proving to be effective in motivating
the employees as most of the Employees are satisfied with the benefit system,
however the organization can adopt the system of flexible benefits which will give
Employees a menu of benefits from which they can choose or tailor their benefits
according to their individuals needs and wants.
 The system of job rotation will also keep the motivation level as repetation of
same type of job may lead to boredom.
 BIGBAZAAR. should organize programmes for representatives which will help
them develop close relationships and give them a chance to interact with other
members of the company.

75
 FINDINGS:

In today’s global environment organizations strive towards having a productive group

of employees, but this cannot happen only by selecting and developing personal in a
proper way. Individuals with extra ordinary competence can be hired but still un
organization cannot be sure that they will perform satisfactorily.
The major ingredient is motivation which activates the potential of employees.
From the data analysis the findings are as follows:
 Most of the relationship managers are the age group of 26-35
 The average income of maximum relationship managers exceeds
Rs.1,00,000/-
 The majority of relationship managers selected the job considering good salary
offered by
 Maximum damat relationship managers are satisfied with the remuneration
being offered. BIGBAZAAR..
 The majority of relationship managers agree the salary offered by
BIGBAZAAR.. Is own path with that of the industry standards.
 Maximum relationship managers are satisfied by the incentive scheme being
practiced.

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 CONCLUSION

The footwear industry is one of the fastest and ever growing industry in the world
many multi national companies are operating in this sector one of the important
peculiarities about this industry is that it is low margin industry.

India with its position of second largest populated country in the world is the most
attractive market for all industrial giants.

Motivation is an important concept that has been receiving considerable attention

from organization the increasing attention paid to motivation is justified because of
various reasons, such as
 Motivated employees come out with new ways of doing jobs
 Motivated employees are quality oriented
 Motivated employees are more productive
 Any new technology needs motivated employees to adapt it successfully
However any motivation technique adopted will have its own merits and
demerits that is where the role of human resources management is at its
prime to decide what technique to adopt and what not to.

77
 BIBLIOGRAPHY
Books
 Robin P Stephen(2000) Organisation Behaviour New Delhi Prentice
Hall of India.

 Luthans Fred(1998) Organisation Behaviour, Eighth Edition, McGraw-

Hill International.

 K Ashwathappa (2002) Human Resource and Personel Management,

Third Edition, Tata McGraw-Hill

 P. Subba Rao(2004) Management and Organisation Behaviour

 Kothari C.R(2004) Research Methodology Methods and Techniques.

Websites
www.l and t.com
www.google.com

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