AMITY INTERNATIONAL BUSINESS SCHOOL

UK COUNTRY REPORT ANALYSIS AND COMPARISION OF TWO MAJOR

HYPERMARKETS TESCO IN UK AND BIG BAZAAR IN INDIA

RESEARCH TO BE SUBMITTED BY
Komal pal
Pritish jain
Harshita khandelwal
 INDEX

CHAPTER 1: INTRODUCTION ……………………………………..………………………………………3

CHAPTER 2: REVIEW OF LITERATURE ...…………………………………………………………….4

CHAPTER 3: OBJECTIVES AND METHODOLOGY………………………………………………….5

3.1: OBJECTIVIES………………………………………………………………………………………………….5

3.2: RESEARCH METHODOLOGY………………………………………………………….……………….5

CHAPTER 4: BRIEF ABOUT TESCO AND BIG BAZAAR………………………………………….6

4.1: TESCO…………………………………………………………………………………………………………….6

4.2: BIG BAZAAR…………………………………………………………………………………………………..6

CHAPTER 5: COMPARISION OF UK AND INDIA RETAIL INDUSTRY…………………….7

CHAPTER 6: SWOT ANALYSIS …………………………………..………………………………………..8

6.1: SWOT ANALYSIS OF TESCO………………………………………………………………………..8

6.2: SWOT ANALYSIS OF BIG BAZAAR……………………………………………………………….9

CHAPTER 7: MARKTING 4P’S OF TESCO AND BIG BAZAAR………………………………10

CHAPTER 8: PORTER’S FIVE FORCE MODEL………………………………………………………11

8.1: TESCO PORTER’S FIVE FORCE MODEL……………………………………………………….11

8.2 BIG BAZAAR PORTER’S FIVE FORCE MODEL……………………………………..……..12

CHAPTER 9: ANALYSIS……………………………………………………………………………….…13-15

CHAPTER 10: FINDINGS AND RECOMMENDATION……………………………………..16-17

10.1: FINDINGS…………………………………………………………………………………………………..16

10.2 RECOMMENDATIONS FOR TESCO AND BIG BAZAAR..……………………………..17

CHAPTER 11: CONCLUSION………………………………………………………………………………..18

CHAPTER 12: BIBLIOGRAPHY AND REFERENCE………………………………………………..19

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 CHAPTER.1
INTRODUCTION
rd
Tesco is the world’s 3 largest and UK’s no. 1 hypermarket and big bazaar
st
India’s 1 hypermarket, and being a student of marketing and international
business so that I took 2 major player of retail industry Tesco and Big
Bazaar of UK and India. Now day’s retail industry is into spotlight because
there are two reasons behind of this, liberalization of the world economy and
large players of the industry have entered into the retail business. Earlier
FDI in retail industry have been permitted by the Indian government so that
large numbers of international retailers interested to enter into Indian retail
industry because the retail business of India is more than 450 US$ and one
of the top 5 retail market in the world and 84% of India’s retail industry is
unorganized. In the world almost all the customers are very price conscious.
The main motive of all the hypermarkets is to provide products and services
at very low price than the others hypermarkets. Indian retail industry
environment is totally different from UK. The main difference I found is in
India customer are very price conscious, every item is with MRP by the
marketer of the particular product but in UK customer aren’t very much price
conscious and on the product there is no MRP by the marketer or
manufacturer of any product, the price decided by Tesco itself, there is no
MRP restrictions. In India, increasing in the disposable income of middle
class people and increasing the purchasing power of the people and
conditions for growth of organized retail, the large players of retail industry
like Wal-Mart, Carrefour, and Tesco etc keep an eye on Indian retail business
and they are ready to enter into Indian retail business. Retail industries play
a major and very important role in virtually all economies the world over, in
this report I have research on customer’s perception about the Tesco and I
did a primary research for this. I asked 13 questions about the Tesco to the
30 peoples of London. And I also have done this research according to my
objectives. The research is being done in the area of marketing. In this
research I also have done SWOT analysis, PESTLE analysis and porter’s 5
force model of Tesco and Big Bazaar. I compared the UK and Indian Retail
industry which is totally different from each other. It’s very clear that in UK
and India the retail sectors operate differently. So I tried to analyze and
comparison of UK and India Retail Industry and customer’s perception about
Tesco and according to my objectives.

3
 CHAPTER.2
REVIEW OF LITRATURE
Role of Retail in the world-
Retail play a very important and major role worldwide in increasing
productivity across a wide range of consumer goods and services. Retail
means to sale of goods and services from businesses or individuals to end
users. Retailers purchased goods in large quantities from manufacturers or
directly to wholesalers. Retailers are part of an integrated system that is
called Supply chain. Retailing can be done by door to door, online or fixed
locations like markets and stores. Retail can be identified into two forms;
one is organized retail and other unorganized retail. Organized retail is like
supermarkets, mall, and hypermarkets, unorganized like small shop, street
shop, general stores etc. Retail is classified by type of products like Food
products, durable goods (electronics, sporting goods appliances etc),
consumables goods (clothing, fabrics apparels etc) and types of retailers by
marketing strategy is department stores, warehouses stores, supermarkets,
hypermarkets, general stores, malls, Online business etc. Retail can be
identified into two forms; one is organized retail and other unorganized
retail. Organized retail is like which are registered, licensed like
supermarkets, mall, and hypermarkets, unorganized like small shop, street
shop, general stores etc.
Rising in GDP growth, increasing population, increasing in disposable
income, and increasing consumer purchasing power are combining to drive
the Global Retail industry and opportunities for retail segment players. The
retail market is forecast to reach an estimated $20,002 billion in 2017 with a
CAGR of 3.9% over the next six years (2012–2017).

Country Total Retail Sales Share of organized Share of unorganized

(USD) 2012 retail (%) retail (USD) 2012

USA $2,983,000,000,000 85% 15%

UK $515,000,000,000 70% 30%

INDIA $450,000,000,000 16% 84%

4
 CHAPTER.3
OBJECTIVES AND METHODOLOGY
Ch.3.1 OBJECTIVES:
It is very clear that being in two different countries the retail sectors operate
differently. India and United Kingdom both are huge nations with a lot of
available resources. And the retail industry is a very huge market of both the
nations. There is a huge scope for hypermarkets to establish a big feet in
market share, if strategies are in line. In the report I will try to analyze UK
and India’s hypermarkets, their culture impact on hypermarkets and various
aspects that influence consumer decisions in both the countries.

1. To analyze the 2 major player of retail industry of UK and India by

keeping an eye on strategies used by Big Bazaar in India & Tesco in
London.
2. To study the UK and India retail industry.
3. Comparison of marketing strategies adopted by Tesco and Big Bazaar.
4. To study the perception of customer about Tesco.
5. To study the different marketing strategies used in the organized sector
in both the countries & the kind of clients they serve.

Ch.3.2 METHODOLOGY:

In order to achieve my objectives I used this longitudinal exploratory study

took into account both qualitative and quantitative research strategies.

Ø The research is to achieve the objectives is qualitative and as well as

exploratory in nature, and is meant to provide the basic information
required by research objectives.
Ø Quantitative is being done, and also and qualitative research is being
done both using primary and secondary information that is gathered
and assembled specifically for this study.
Ø Qualitative secondary information from a variety of sources is gathered
like Tesco Case Studies, Tesco Brochures, Tesco Website, books,
online journals, Newspaper and Magazine (The Grocer) Articles,
Ø Primary data has been collected for the customer’s perception about
Tesco by making a questionnaire and visit in Tesco stores.
Ø The Study is done in the area of marketing.
 CHAPTER.4

BRIEF ABOUT TESCO AND BIG BAZAAR

Ch.4.1 TESCO:
Tesco was founded in 1919 by Jack Cohen from a market stall in London’s
East End. Over the years Tesco’s business has grown and Tesco now operate
in 14 countries around the world, employ over 500,000 people and serve
tens of millions of customers every week. They have always been committed
to providing the best shopping experience. Today they continue to focus on
doing the right thing for their customers, colleagues and the communities
they serve. Tesco Is a UK’s grocery and merchandise retailer and the biggest
hypermarket of UK, headquarter of Tesco in Cheshaunt, United Kingdom.
Tesco stores are the subsidiary of Tesco PLC in UK. Tesco stores are divided
in 6 formats like Tesco express, Tesco Metro, Tesco superstores etc. The
vision of Tesco is to be the most highly valued by the customers they serve
and the community in which they operate and their staff and the
shareholders, a modern and innovative co. and applying their skills globally.
In India Tesco is a joint venture with TATA group and the stores named as
‘Star Bazaar’. Tesco segments its store portfolio six four different store
formats. Express, Metro, Superstore, Extra, One-stop, Tesco and Home plus.

Ch.4.2 BIG BAZAAR:

Big Bazaar was founded in October 2001 by Kishore Biyani the Chairman
Pantaloon retail India limited, future group. Big Bazaar works on the same
economy model as Wal-Mart. And Big Bazaar had considerable success in
many Indian cities and small towns. The main vision of the Big Bazaar is
‘Everything at every place at every time for each Indian customer at a very
profitable manner. Big Bazaar is India’s number 1 hypermarket and there
are 214 stores in 90 cities of India till June 2, 2012. Big bazaar is the
fastest growing hypermarket of India. The tagline of Big Bazaar “isse sasta
aur kuch nahi!” which itself shows that Big Bazaar focus only those
customers who are very price conscious and they believe in low price. They
provide best product at the best price. Big Bazaar is situated near
transportation hubs to attract maximum customers. Big Bazaar with its
range of products and services offering reflects the aspirations of millions of
Indian.

6
 CHAPTER.5
COMPARISION OF RETAIL INDUSTRY OVERVIEW OF UK
AND INDIA
1. UK
1. In UK 11% of all VAT-registered
business are retailers. And
organized retail is 70% and
30% is unorganized or
traditional.
2. The retail industry of UK
generates almost 8% of the
GDP.
3. Hypermarkets dominate the UK
food retail market, with 56.0%
of its sales.
4. The retail industry of UK gives
employment of 2.9 million
people.
5. The UK retail sector makes up
approximately 10% of its all
employment. It is more than
half of people who work part
time in the retail sector and it’s
rd
compared to less than a 3
across the whole economy.
6. UK is the most international
retail market with the highest
proportion of international
retailers trading.
India
1. In India only 16% retail
industry is organized and
rest 84% is unorganized.
2. The retail industry of India
generates almost 14 to 15%
of its GDP.
3. The Indian retail market is
US$ 450 billion and comes
one of the top five retail
markets in the world.
4. It’s poised to become $1.3
trillion opportunity by 2020.
5. The Indian government
recently took a decision to
allow up to 100% FDI in
multi-brand retail and raise
the limit for overseas
investment in single-brand
retail to 100%.
6. In November 2011, India's
central government
announced retail reforms
for both multi- brand stores
and single-brand stores.
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 CHAPTER.6 SWOT ANALYSIS
Ch.6.1 SWOT ANALYSIS OF TESCO:
Strengths
1. Tesco is the number 1
supermarket chain in UK.
2. Tesco has strong brand name.
3. Financial power is very strong.
4. Presence of Tesco is
internationally.
5. Tesco is world’s Third largest
retailer.
Opportunities
1. The main opportunity is to open
new stores.
2. Asian market has huge retail
industry and in growing stage
so Tesco must enter into Asian
markets.
3. Tesco’s opportunity is in
strategic alliance with other
companies.
4. Tesco should try into non-food
retail because they’ve strong
financial power.
5. Tesco should also try in Health
& Beauty.
Weakness
1. Tesco is more dependent
on UK market.
2. In UK transport costs is
very high.
3. The strategy is single point
to serial acquisitions.
4. The main difficulty is
Increasing geographical
spread makes focus on
specific markets.
Threats
1. The main threat is
International expansion of the
business.
2. Lowest price war between
hypermarkets is main threat.
3. The competition is very high
from Asda & Wal-Mart.
4. Raw material cost is rising
day by day.
5. Innovation by other super
markets is a highly threat.
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Ch.6.2 SWOT ANALYSIS OF BIG BAZAAR:

Strengths Weakness

1. Big Bazaar offers a wide 1. Big Bazaar is restricted to Indian

range of products and market only it isn’t globally.
services. 2. Big Bazaar keep very thin
2. Big Bazaar is affordable for margin.
middle class & upper middle 3. There are long lines at billing
class. counters of Big Bazaar which is
3. Big Bazaar provides very time consuming.
attractive Promotional offers. 4. Because they believe in low price
4. The strategy of Big Bazaar is guarantee so that high branded
low price guarantee which products are still missing from big
attract customers. bazaar’s line of products.
5. Big Bazaar has high brand
equity.
Opportunities Threats

1. They’ve opportunity to 1. India is developing country

expand globally by tie–ups
other multinational
companies.
2. They must enter into high
premium segment.
3. Indian organized business is
only 16% so that there is a
lot of scope in Indian retail
industry.
4. In the rural area the whole
retail business are
unorganized so they’ve a
chance to enter into rural
markets of India
5. Mall culture is increasing in
India so they’ve chance to
expand their retail business
widely.
and their policies change
randomly so changing in
government policies is threat
for Big Bazaar.
2. After the FDI in retail industry
the main player of retail
industry like Wal-Mart, Tesco
have entered into Indian retail
industry.
3. The competition of Big Bazaar
is now with Wal-Mart and
other international stores so
that the threat is competitor’s
global presence.
4. High competition.

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 CHAPTER.7
MARKETING 4 P’S OF TESCO AND BIG BAZAAR
4 P’S TESCO
PRODUCT Tesco provides a wide range of
quality products like Food, Non-
food, personal finance, telecom,
online services, major brands,
and also include Tesco’s own
brand product.
PRICE Tesco sell best quality product
at a low price in order to have
a large audience to target.
PLACE Tesco has a store of every Pin
code of London they have 6
multi format stores to have a
better geographic cover of
market.
PROMOTION Tesco emphasize on the ethical
things like green, the supplier
care and social issues. Tesco
promotes their store “every
little help” the tagline of Tesco.
Tesco also provide their
customers loyalty scheme as
club card to reward their
customers.
BIG BAZAAR
Big Bazaar offers maximum
variety of each product it also
include own product of Big
Bazaar. Big Bazaar with its
range of products and services
offering reflects the aspirations
of millions of Indian.
Big Bazaar believes in low cost
guarantee. Big Bazaar considers
its discounted price it’s USP.
Price of product is low and they
give average 7-8% discount on
all items on their MRP.
Big Bazaar targets semi-urban
population. Big Bazaar
strategy is to find out a cheap
location Big Bazaar is situated
near transportation hubs to
attract maximum customers.
Big Bazaar use 2 types of
promotional strategies of Big
Bazaar One is the holistic
advertisement promotion like
‘Sabse Sasta Din” are a very
successful strategy to get
footfall and the second is the
particular store oriented
promotion like buy 2 get 1 free
etc. There are loyalty schemes
which reward customers.
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 CHAPTER.8 PORTER’S
FIVE FORCE MODEL
Ch.8.1 Tesco’s Porter’s five force model

Threat of
New
Entrants
(Medium)

Among
power of
Bargaining Rivalry Bargaining
power of rAmong
s buyers
power of
suppliers Competitors buyers
(Low) (High) (Medium)

Threats of
Substitute
products
(Low)

11
Ch.8.2 Big Bazaar Porter’s five force model

Threat of
New
Entrants
(High)

Rivalry
Bargaining Bargaining
Competito
suppliers power of
(Low) (Medium)
(High)

Threats of
Substitute
products
(High)

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 CHAPTER.9
ANALYSIS
According to the questionnaire I found this result.
Q.1:- How often do you visit Tesco?

How often visit to tesco?

Daily Twice in a week Once in a week Twice in a month

3% 17%

47%
33%

Q.2:- Are you satisfied with Tesco’s services (in store)?

Satisfied with Tesco Services (in stores)

No
20%

Yes
80%

Q.3:- Range of products available in Tesco satisfactory?

Product available in tesco satisfactory?

Yes No

23%

77%

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Q.4: Does the Tesco provide quality standard products?

Quality standard product?

Yes No

17%

83%

Q.5:- Rate the customer service according to your experience.

Customer Service

Excellent Good Average Poor

10% 3%
10%

77%

Q.6:- Do you think the price range fixed by Tesco for its products reasonable
compared to other retail store?

Locations easily accessible?

Yes No
17%

83%

14
Q.7:- Do you think the price range fixed by Tesco for its products reasonable
compared to other retail store?

Price Reasonables?

Yes No

30%

70%

Q.8:- Are you a loyalty program (Club card) member of Tesco?

Clubcard Member?

Yes No

47%
53%

Q.9:- How much would you rate Tesco?

Rate Tesco
Excellent Good Average poor

10% 0%
23%

67%

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 CHAPTER.10
FINDINGS AND RECOMMENDATION
Ch. 10.1 FINDINGS:
After all the research work I’ve done I found some interesting facts about
Tesco and Big Bazaar, If we talk about Tesco and Big Bazaar marketing
strategies than these are different in many ways:
Ø Tesco operates globally but Big Bazaar is in India only, so that Tesco’s
strategy’s is different for different countries, Tesco has more than
5000 stores in UK but Big Bazaar has only 300 stores in India.
Ø At Big Bazaar waiting time in terms of Billing is a concern and more so
during the weekends. And during my personal observation when I saw
in India (Though it was for 3-4 hours which is a short period of time),it
was noted by me that few customers who had little to purchase, left
their trolleys due to long queue at the counter.
Ø Opposite of this Tesco has a competitive benefit, Tesco has its store at
every pin code of UK, Tesco has huge network. So that people find
Tesco very easily.
Ø In India price of any product decided by the manufacturer or marketer
of the particular product, no one can sell a product more than the MRP
decided by the manufacturer but in UK things are totally different price
of any product decided by the seller, so Tesco has right to sell a
product as he want but Big Bazaar can’t sell any product of maximum
of the MRP.
Ø Retail industry play a very important role in both countries, retail
industry of UK generates 8% GDP and in India its 14 to 15% of its
GDP.
Ø Main difference is that UK’s retail industry is 70% organized and Indian
retail industry is only 16% organized which makes a huge difference.
Ø Indian retail industry comes in top 5 of the world, and the chances of
growing of this retail business is very high in India because mall
culture is growing in India, Indian customers are more price conscious
than the UK, and Indian government allows 100% FDI in retail
business and there are so many reasons so that we can say Indian
retail industry will grow faster than the UK retail industry.

16
 Ch.10.2 RECOMMENDATION

Recommendation for Tesco:

Ø More dependency on UK market isn’t good for Tesco. Ø Competition
is very high so they should get competitive advantage
because of their network.
Ø Tesco needs to focus on his club card loyalty program so that
customer can get benefit of that and they can retain the customer
again and again.

Recommendation for Big Bazaar:

Ø At Big Bazaar they should they should be increased billing counters
and employees so that customers do not face any problem regarding
their purchase goods and waiting long queues which force them to
leave their purchased goods.
Ø Big Bazaar must do something new than others, must bring
technologies, new innovations and different offers.
Ø They need to focus their CRM.

17
 CHAPTER.11
CONCLUSION

Tesco and Big Bazaar is no.1 hypermarkets of UK and India, the strategy of
both the stores to give best product at best price, price war has been begun
between all the hypermarkets and the profit of this getting to the customers
directly. There are the many government policies which affects these stores
different from each others. Big Bazaar is limited to India while Tesco is
rd
globally and world’s 3 largest hypermarket so that the working style,
marketing strategy are different. Tesco stores were developed at different
locations which was a serving advantage to different consumer demands.
These out of town, edge of town super stores offer one-stop shopping
services for weekly outings, the smaller in town stores offer top up shopping
facilities. Thus the Tesco’s portfolio was complemented. And Big Bazaar is
situated near transportation hubs of India to attract maximum customers.
Big Bazaar’s strategy is only for the middle class customers of India by
giving those attractive offers and low price guarantee.
The main weakness of both the stores is that Tesco’s dependency only on UK
markets and as well as Big Bazaar is depends only on India market. Tesco
has its strength is very constructive and competitive against his competitors
Asda and Sainsbury’s etc. In India after the 100% FDI investment in retail
industry, competition is going to very high for the Big Bazaar, because the
big players like Wal-Mart, Carrefour is ready to enter into Indian retail
industry. My conclusion after all my research work is Tesco and Big Bazaar is
big player of retail industry of UK and India, and retail industry play a very
important role for the growth of economy of any country. And low price war
between all the hypermarkets is benefited to the customer ultimately.

18
 CHAPTER.12

BIBLIOGRAPHY AND REFERENCE

Websites:
Web1: philip clarke. (may 2011). Tesco strategy. Available:
http://www.tescoplc.com/index.asp?pageid=12. Last accessed 27th feb 2012.
Web 2:Tesco PLC - About us - Our history. 2013. Tesco PLC - About us - Our
history. [ONLINE] Available at: http://www.tescoplc.com/index.asp?pageid=11.
[Accessed 19 March 2013].

Web 3: India's retail industry to grow to $1.3 trillion by 2020: FICCI - Economic
Times. 2013. India's retail industry to grow to $1.3 trillion by 2020: FICCI
-Economic Times. [ONLINE] Available
at:http://articles.economictimes.indiatimes.com/2012-11-
18/news/35185252_1_back-end-infrastructure-retail-industry-fdi. [Accessed 20
March 2013].

Web 4: Future Group's key managers moving out: D Mall joins Reliance Retail
-Economic Times. 2013. Future Group's key managers moving out: D Mall joins
Reliance Retail - Economic Times. [ONLINE] Available
at:http://economictimes.indiatimes.com/news/news-by-company/corporate-
trends/future-groups-key-managers-moving-out-d-mall-joins-reliance-
retail/articleshow/18823192.cms. [Accessed 20 March 2013]

Web 5: India Leading Retailer, Million Square Feet Retail Space – Pantaloon.
2013.India Leading Retailer, Million Square Feet Retail Space – Pantaloon.
[ONLINE] Available at: http://www.pantaloonretail.in/about-us/overview-
retail.html. [Accessed 20 March 2013].
Web 6: Big Bazaar, India’s Hypermarket Chain: Can its Ambitious Future Plans
Succeed? Case Study | Vision, Mission and Goals Case Studies. 2013. Big Bazaar,
India’s Hypermarket Chain: Can its Ambitious Future Plans Succeed? Case Study |
Vision, Mission and Goals Case Studies. [ONLINE] Available
at:http://ibscdc.org/Case_Studies/Strategy/Vision,%20Mission%20and%20Goals/V
MG0015IRC.htm. [Accessed 20 March 2013].

Web 7: The Indian Retail Industry 2012 - Research and Markets. 2013. The Indian
Retail Industry 2012 - Research and Markets. [ONLINE] Available
at:http://www.researchandmarkets.com/reports/2126249/the_indian_retail_industr
y_2012. [Accessed 20 March 2013].
Web 8: Profile: Tesco - the UK’s largest retailer | Analysis | Retail Week. 2013.
Profile: Tesco - the UK’s largest retailer | Analysis | Retail Week. [ONLINE]
Available at: http://www.retail-week.com/home/profile-tesco-the-uks-largest-
retailer/5046179.article. [Accessed 20 March 2013].
 CHAPTER.13
Q.7:- Rate the customer service according to your experience.

Excellent AN NEXURE
Good
Average poor
Questionnaire:
I'm making
Q.8:- a country
Are you specificallresearch
aware about reportline
the product foroffered
Master by
of Tesco?
Business Administration in International
business and I am interested in analyzing your thoughts and opinion about Tesco. May I kindly take
few minutes
Yesof your time and ask you to fill out this? Your answersNo will be kept confidential and would
be used only for my educational purpose. I must appreciate your participation and honest answer for
the survey.
Q.9:- Do you think the price range fixed by Tesco for its products reasonable compared to
Name: ____________________________Contact no.:________________ Age: _____________
other retail store?
Gender: _________________
Yes No

Q.1:- How often do you visit Tesco?

Q.10:- Are you a loyalty program (Club card) member of Tesco?
Daily Twice in a week
Yes No
Once in a week Twice in a month

Q.11:-Are
Q.2:- Areyou
thesatisfied
staff friendly & helpful
with Tesco’s of Tesco?
services (in store)?
Yes No
Yes No

Q.12:- How much would you rate Tesco?

Q.3:- Why do you prefer Tesco over the other retail store?
Excellent Good
Average Poor

Q.13:- Any recommendation

Q.4:- Range or comment.
of products available in Tesco satisfactory?

Yes No

Q.5:- Does the Tesco provide quality standard products?

Yes No
JJJJJJ

Q.6:- Are the locations easily accessible?

Yes No

20
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