Specialization project on

“Consumer perception about Big Bazaar”

Submitted in partial fulfillment for the award of the degree of

Master of Management Studies (MMS)

(Under University of Mumbai)

Submitted by

Sharad H. Yadav

Marketing

(Roll No. 171249)

Under The Guidance of

Prof.

2017-2019

Pillai Institute of Management Studies and Research

 Executive Summary
The Retail business in India is at its peak and growing at a very high speed. With the
proliferation of the idea that shopping is just not a routine but an experience, the retail industry
has something to work on. For starters, providing the customers with a wide variety of products
thus widening his choice and providing top-notch service. Among other requirements I came to
the conclusion that customers need an environment conducive to shopping.

Big bazaar is a chain of shopping malls in India. Currently, there are 210 big bazaar stores
across 80 cities and towns in India. Big Bazaar is designed as an agglomeration of bazaars or
Indian markets with clusters offering a wide range of merchandise including fashion and
apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure
and entertainment sections.
Sr.No Contents Page

1 Introduction of Industry

1.1 Research Methodology

1.2 Research Objective

1.3 Sampling Design and sampling size

1.4 Scope and limitation

1.5 Method of Data collection
1.6 Literature review
2 Company profile
About Big Bazaar
2.1 KEY PLAYERS IN INDIAN RETAIL
SECTOR
2.2 CHALLENGES FACING THE INDIAN
ORGANISED RETAILER
2.3 Strategy: - 3-C Theory
3 DATA ANALYSIS & FINDINGS
3.1 Findings
3.2 Conclusion
3.3 Suggestion and future research
3.4 Personal learning
3.5 Reference
3.6 Annexure
INTRODUCTION

The word retail derived from the French word “retailler”, meaning to cut the bulk. In other word,
it implies a firsthand transaction with the customer.
Retailing can be defined as the buying and selling of goods and services. It can also be defined as
the timely delivery of goods and services demanded by consumers at price that are competitive
and affordable.
Retailing is the transaction between the seller and consumer for personal consumption .It does
not include transaction between the manufacturer, corporate purchase, government purchase and
other wholesale purchase. A retailer stocks the goods from the manufacturer and then sells the
same to the end user for a marginal profit. In the supply chain that also consists of manufacturing
and distribution, retailing is the last link before the product reaches the consumer. Different
forms of retailing
 Hyper marts

 Large supermarkets, typically (3,500 - 5,000 sq. ft)

 Mini supermarkets, typically (1,000 - 2,000 sq. ft)

 Convenience store, typically (7,50 - 1,000 sq. ft)

 Discount/shopping list grocer

Traditional retailers trying to reinvent by introducing self-service formats as well as value-added

services such as credit, free home delivery etc. The Indian retail sector can be broadly classified
into –
 food retailers
 health and beauty products
 clothing and footwear
 home furnishing and household goods
 durable good
 leisure and personal goods

The retail industry is a phenomenon that has taken India by storm. It has revolutionalized the
way we shop. Today the total retail industry is worth Rs. 7, 00,000 – 8, 00,000 Crores.
However the organized sector is currently worth Rs.13, 300crores and is expected to grow at a
mind Blowing rate of 28% per annum over next 5 years.
This industry saw the light of the day in 1980‟s when India first begin opening up its economy.
Textiles, which included company like Bombay Dyeing, Raymond‟s, S Kumar‟s & Grasim was
the first sector to see the emergence of retail chains. Titan makers of premium watches
successfully created a retailing concept in hitherto uncharted territory on India establishing its
series of elegant showrooms. The later half of the 1990‟s saw a fresh wave of entrance in the
retail business. Creating Brand Equity and adding value to the product through innovative
services has become the key issue in the industry.

Some Amazing Facts

 Retail is currently the biggest industry in the world with Sales of $7.2 trillion.

 Every 10th billionaire in the world is a retailer.

 25 of the top 50 Fortune 500 companies are in retail.

RETAIL INDUSTRY IN INDIA
India has one of the largest numbers of retail outlets in the world. Of the 12 million retail outlets
present in the country, nearly 5 million sell food and related products. Thought the market has
been dominated by unorganized players, the entry of domestic and international organized
players is set to change the scenario.

Organized retail segment has been growing at a blistering pace, exceeding all previous estimates.
According to a study by Deloitte Haskins and Sells, organized retail has increased its share from
5 per cent of total retail sales in 2006 to 8 per cent in 2007. The fastest growing segments have
been the wholesale cash and carry stores (150 per cent) followed by supermarkets (100 per cent)
and hypermarkets (75-80 per cent). Further, it estimates the organized segment to account for 25
per cent of the total sales by 2011.

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 has 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. India retail industry is progressing
well and for this to continue retailers as well as the Indian government will have to make a
combined effort. It is expected that India may have 600 new retail outlets till 2010.

Since, retail revolutions took place in the more developed markets much earlier, the feeling is
that India can draw form their experiences. Although, given India’s own unique characteristics,
expectations are that as the retail scenario, which has evolved rapidly over the period of 4-5 yrs.
The country has emerged with its own Retail Model as well.

Yet consultant say that there are enough models out there in the developed part of the world that
will find acceptance here, even though they may find some modifications to suit local need
better.
1.1 Research Methodology

Quantitative research was carried out in the form of questionnaire. Questionnaire was distributed
to customers who are regular at Big bazaar by use of internet. Target group were all who visit big
bazaar at least once or twice in a month.

1.2 Research Objective:-

A Study on Customer Perception of Big Bazaar

 To find out buying behavior of the customer coming in the Big Bazaar.
 To find out customer response towards Big Bazaar
 To study the satisfaction level of customer in different attributes of Big Bazaar

1.3 Sampling Design and Sample Size

 Sample was designed by collecting basic factors which were important from shopper’s
perspective and expert guidance from faculty. Sample size of 50 was distributed to varied
demographic customer base.

1.4 Scope and Limitations

 Research is restricted to Mumbai city only and is not the representative of other cities in
India.
 Limitation of time restricted the sample size and face to face interaction with respondent
.
Limitation
 Limitation of time restricted the sample size and face to face interaction with respondent
 As this survey was restricted to Mumbai this cannot be stated as an in depth research on
this subject.
 The consumer behavior varies according to different products.

1.5 Method of data collection

 The data was collected online questionnaire
1.6 Literature review

M.Ramakrishnan (2010) The study aims to analyze the Consumer Perception towards
Private Label Brands on Big Bazaar, Coimbatore. The objective of the study is to
understand the possibility of success when retailers introduce private brands. The
research is aimed to explore if buying choices are made based on brand loyalty and to
analyze whether customers actively seek for new brands or strict to the old brands.
From this study, one can come to the conclusion that private labels are able to position
themselves significantly in the mind of customers and are gaining acceptance. Growth in
specific private label segments like food and apparel segments are growing at a faster
rate. While, the future of private labels is dependent on the retailer’s ability to overcome
key challenges such as adaptive supply chain practices, quality infrastructure, accelerated
growth in new categories, blurring dividing lines between private label and national
brands. From the study, it was found that good quality, price, trustworthy, large variety
are the most influencing factor which drive the customer to buy the private label brand.
Therefore, these are the factors which should be considered while coming with the future
private brand. This in return it will help the retail stores to increase sales.

Rajaguru and Matanda (2006) examined ‘Consumer Perception of Store and

Product Attributes and its Effect on Customer Loyalty within the Indian Retail
Sector’ and observed that except product price, other store and product attributes have
positive effects on customer loyalty. Further research is needed to identify retail
managers focus on product quality, store convenience as well as assure quality and
availability of new products in order to enhance customer loyalty and also to compare
consumers using various retail formats and consumers‟ perception of product and store
attributes on retail formats keeping in view demographic correlates.
2 Company Introductions

BIG BAZAAR

Big bazaar is a chain of shopping malls in India. Currently, there are 210 big bazaar stores across
80 cities and towns in India. Big Bazaar is designed as an agglomeration of bazaars or Indian
markets with clusters offering a wide range of merchandise including fashion and apparels, food
products, general merchandise, furniture, electronics, books, fast food and leisure and
entertainment sections.

Big Bazaar has clearly emerged as the favorite shopping destination for millions of its
consumers, across the country, its success is a true testament to the emotional bonding it has
established with the Indian consumer, on account of its value offerings, aspirational appeal and
service levels.

Shop till you drop! Big Bazaar has democratized shopping in India and is so much more than a
hypermarket. Here, you will find over 170,000 products under one roof that cater to every need
of a family, making Big Bazaar India’s favorite shopping destination.

At Big Bazaar, you will get the best products at the best prices from apparel to general
merchandise like plastics, home furnishings, utensils, crockery, cutlery, sports goods, car
accessories, books and music, computer accessories and many, many more. Big Bazaar is the
destination where you get products available at prices lower than the MRP, setting a new level of
standard in price, convenience and quality.

If you are a fashion conscious buyer who wants great clothes at great prices, Big Bazaar is the
place to be. Leveraging on the company’s inherent strength of fashion, Big Bazaar has created a
strong value-for-money proposition for its customers. This highlights the uniqueness of Big
Bazaar as compared to traditional hypermarkets, which principally revolve around food,
groceries and general merchandise.
2.1 KEY PLAYERS IN INDIAN RETAIL SECTOR

Indian apparel retailers are increasing their brand presence overseas, particularly in developed
markets. While most have identified a gap in countries in West Asia and Africa, some majors are
also looking at the US and Europe. Arvind Brands, Madura Garments, Spykar Lifestyle and
Royal Classic Polo are busy chalking out foreign expansion plans through the distribution route
and standalone stores as well. Another denim wear brand, Spykar, which is now moving towards
becoming a casualwear lifestyle brand, has launched its store in Melbourne recently. It plans to
open three stores in London by 2008-end.

The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans
to focus on lifestyle products. The Mahindra Group is the fourth large Indian business group to
enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group, and Bharti
Enterprises Ltd. The other three groups are focusing either on perishables and groceries, or a
range of products, or both.

 Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, and Viveks Safe
Deposit Lockers
 PGC Retail -T-Mart India, Switcher , Respect India , Grand India Bazaar ,etc.,
 REI AGRO LTD Retail-Formats: 6TEN Hyper & 6TEN Super
 RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s Super,
Daily & Fresh
 Pantaloons Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion
Station, Brand Factory, Depot, aLL, E-Zone etc.
 The Tata Group-Formats: Westside, Star India Bazaar, Steeljunction, Landmark, Titan
Industries with World of Titans showrooms, Tanishq outlets, Chroma.
 K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit
 Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International
Franchise brand stores.
 Pyramid Retail-Formats: Pyramid Megastore, TruMart
 Nilgiri‟s-Formats: Nilgiris supermarket chain
 Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain
 Vishal Retail Group-Formats: Vishal Mega Mart
 Reliance Retail-Formats: Reliance Fresh
 Reliance ADAG Retail-Format: Reliance World
 German Metro Cash & Carry
 Shoprite Holdings-Formats: Shoprite Hyper
 Paritala stores bazar: honey shine stores
 Aditya Birla Group - more Outlets
2.2 CHALLENGES FACING THE INDIAN ORGANISED RETAILER

The challenges facing the Indian organized retail sector are various and these are stopping
the Indian retail industry from reaching its full potential. The behavior pattern of the Indian
consumer have undergone a major change. This have happened for the Indian consumer is
earning more now, western influences, women working force is increasing, desire for luxury
items and better quality. He now wants to eat, shop, and get entertained under the same roof. All
these have lead the Indian organized retail sector to give more in order to satisfy the Indian
customer.

The biggest challenge facing the Indian organized retail sector is the lack of retail space. With
real estate prices escalating due to increase in demand from the Indian organized retail sector, it
is posing a challenge to its growth. With Indian retailers having to shell out more for retail space
it is effecting there overall profitability in retail.

Trained manpower shortage is a challenge facing the organized retail sector in India. The Indian
retailers have difficulty in finding trained person and also have to pay more in order to retain
them. This again brings down the Indian retailers profit levels.

The Indian government has allowed 51% foreign direct investment (FDI) in the India retail
sector to one brand shops only. These have made the entry of global retail giants to organized
retail sector in India difficult. This is a challenge being faced by the Indian organized retail
sector. But the global retail giants like Tesco, Wal-Mart, and Metro AG are entering the
organized retail sector in India indirectly through franchisee agreement and cash and carry
wholesale trading. Many Indian companies are also entering the Indian organized retail
sector like Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing
stiff competition from these global retail giants. As a result discounting is becoming an accepted
practice. This too brings down the profit of the Indian retailers. All these are posing as challenges
facing the Indian organized retail sector.

The challenges facing the Indian organized retail sector are there but it will have to be dealt with
and only then this sector can prosper.
2.3 Strategy: - 3-C Theory
According to Kishore Biyani's 3-C theory, Change and Confidence among the entire population
is leading to rise in Consumption, through better employment and income which in turn is
creating value to the agricultural products across the country.Big Bazaar has divided India into
three segments:

India one: Consuming class which includes upper middle and lower middle class (14% of India's
population).

India two: Serving class which includes people like drivers, household helps, office peons,
liftmen, washer men, etc. (55% of India's population).

India three: Struggling class (remaining 31% of India's population).

While Big Bazaar is targeted at the population across India one and India two segments, Aadhaar
Wholesale is aimed at reaching the population in India three segment. With this, Future Group
emerged as a retail destination for consumers across all classes in the Indian society.

Innovations:-

Wednesday Bazaar

Big Bazaar introduced the Wednesday Bazaar concept and promoted it as “Hafte Ka Sabse Sasta
Din”. It was mainly to draw customers to the stores on Wednesdays, when least number of
customers are observed. According to the chain, the aim of the concept is "to give home makers
the power to save the most and even the stores in the city don a fresh look to make customers
feel that it is their day".

Sabse Sasta Din

With a desire to achieve sales of Rs 26 Crore in a one single day, Big Bazaar introduced the
concept of "Sabse Sasta Din". The idea was to simply create a day in a year that truly belonged
to Big Bazaar. This was launched on January 26, 2006 and the result was exceptional that police
had to come in to control the mammoth crowd. The concept was such a huge hit that the offer
was increased from one day to three days in 2009 (24 to 26 Jan) and to five days in 2011 (22-26
Jan).
Maha Bachat

Maha Bachat was started off in 2006 as a single day campaign with attractive promotional offers
across all Big Bazaar stores. Over the years it has grown into a 6 days biannual campaign. It has
attractive offers in all its value formats such as Big Bazaar, Food Bazaar, Electronic Bazaar and
Furniture Bazaar - catering to the entire needs of a consumer.

The Great Exchange Offer

On February 12, 2009 Big Bazaar launched "The Great Exchange Offer", through with the
customers can exchange their old goods in for Big Bazaar coupons. Later, consumers can redeem
these coupons for brand new goods across the nation.
 CHAPTER 4
DATA ANALYSIS & FINDINGS
1) How frequently do you visit Big Bazaar?

Analysis:
From the survey it was found that amongst 50 respondents.
46.7% consumer visit monthly in Big bazaar

2) What is the purpose behind visiting Big Bazaar?

Analysis:
From the survey it was found that amongst 50 respondents.
73.3% visitor comes for shopping and 13.3% come for outing and entertainment
in big bazaar.
3) What type of product do you mostly purchase in Big Bazaar?

Analysis:
From the survey it was found that amongst 50 respondents.
64.3% customer mostly purchases grocery in big bazaar and 28.6% purchase cloths.

4) What encourages you to visit Big Bazaar?

Analysis:
From the survey it was found that amongst 50 respondents.

53.3% consumer prefer big bazaar because of it price an 20% of them prefer big bazaar because
of quality of product.
5) Which days of week do you prefer to visit Big Bazaar?

Analysis:
From the survey it was found that amongst 50 respondents.
66.7% customer prefers to visit big bazaar on weekdays.

6) Do you go with planned list of product to be purchased in Big Bazaar?

Analysis:
From the survey it was found that amongst 50 respondents.
73.3% consumer go big bazaar with plan list of product to be purchased.
7) Services of sales personnel in Big Bazaar?

Analysis:
From the survey it was found that amongst 50 respondents.
73.3% customer satisfied with big bazaar sales personnel.

8) Convenience of car parking in Big Bazaar?

Analysis:
From the survey it was found that amongst 50 respondents.
66.7% customer satisfied with car parking facility in big bazaar.
9) Shopping Experience in Big Bazaar?

Analysis:
From the survey it was found that amongst 50 respondents.
66.7% customer satisfied in shopping experience.

10) Loyalty Programs in Big Bazaar?

Analysis:
From the survey it was found that amongst 50 respondents.
60% customer satisfied with loyalty programs in big bazaar
11) Do you satisfied with the billing system of Big Bazaar?

Analysis:
From the survey it was found that amongst 50 respondents.
100% customer satisfied with the billing system of big bazaar.

12) Do you think that the service of discount offered by Big Bazaar attracts you for impulse
buying?

Analysis:
From the survey it was found that amongst 50 respondents.
60% customer agrees the discount offered by big bazaar attracts them for impulse
buying.
13) What is your mode of payment in Big Bazaar?

Analysis:
From the survey it was found that amongst 50 respondents.
60% customer preferred to make cash payment in big bazaar.
 Findings

 75% of respondents were in the age group of 15-25 and the remaining 25% respondents
were in the age group of 25-35.
 68.8% respondents are male and 31.3% are female.
 73.3% of respondents visit big bazaar for shopping.
 73.3% of respondents visit big bazaar without any plan.
 64.3% of customers visit big bazaar for buying grocery.
 Around 53.3% respondents visit big bazaar because of good prices.
 Around 66.7% respondents like to visit big bazaar on weekends.
 66.7% of respondents are satisfied by the shopping experience of big bazaar.
 60% of respondents have a neutral response on loyalty programmers of big bazaar.
 73.3% of respondents are satisfied by the service of sales personal of big bazaar.
 Conclusion

The overall perception of the big bazaar store is good except in some areas like billing system
during the weekends, and parking facility. The target market f o r t h e b i g b a z a a r h yp e r
m a r k e t i s t h e g r o w i n g m i d d l e c l a s s s e g m e n t . Customers found the prices are
affordable with a good variety of the products available under one roof. Customers responded positively to
the promotions offered at the store, with the sales during the weekends and festive seasons picking up
nicely. The quality of the products offered at the store was also very well accepted by the
customers, and customers also enjoyed the food offered at the food stop.

Reasonable price of the products at the store was the driving factor for the customers to shop in
the store. Most of the customers found it convenient to visit the store once in a week. So we can
conclude that the overall perception of the customers towards the store is positive and are
satisfied with the way the store is managed.
 Suggestion for future research

 Big Bazaar should improve the quality, variety and price of other products like apparels,
consumer durables etc.
 Big Bazaar should make the car parking of customers more convenient as number of
people visiting store with their cars is going to increase.
 Big Bazaar should come up with some more schemes, promotion offers on weekdays.
 Big Bazaar should come up with some more efficient loyalty programs.
 Big Bazaar should help people get shopping experience and not just shopping facility.
 We have seen from research that most purchased product is grocery. Hence promotion on
non-grocery items like electronic goods should be promoted as it will lead to complete
shopping experience.
 Factors other than price should also be used to draw more customers.
 Store design should be made more convenient for customers.
 The quality of private labels should be good to compete with global brands.
Personal learning
 Reference

https://en.wikipedia.org/wiki/Big_Bazaar

https://www.slideshare.net/hemanthcrpatna/a-study-of-consumer-perception-on-big-bazaar

https://www.scribd.com/doc/81825649/Consumer-Perception-Toward-Big-Bazaar

https://www.academia.edu/5602775/CUSTOMER_SATISFACTION_TOWARDS_B_IG_BAZAAR-66-18

https://issuu.com/babasabpatil/docs/a_project_report_on__perception_of_
 Annexure

1) How frequently do you visit Big Bazaar?

o Weekly
o Monthly
o Quarterly
o Yearly
o Unplanned

2) What is the purpose behind visiting Big Bazaar?

o Shopping
o Outing
o Entertainment
o Option

3) What type of product do you mostly purchase in Big Bazaar?

o Cloths
o Grocery
o Electronic items
o White Goods

4) What encourages you to visit Big Bazaar?

o Price
o Service
o Ambience
o Product Quality

5) Which days of week do you prefer to visit big Bazaar?

o Weekdays
o Weekends

6) Do you go with planned list of products to be purchased in Big Bazaar?

o Yes
o No
7) Services of Sale Personnel in Big Bazaar?
o Highly Satisfied
o Satisfied
o Neutral
o Unsatisfied
o Highly Unsatisfied

8) Convenience of car parking in Big Bazaar?

o Highly Satisfied
o Satisfied
o Neutral
o Unsatisfied
o Highly Unsatisfied

9) Shopping Experience in Big Bazaar?

o Highly Satisfied
o Satisfied
o Neutral
o Unsatisfied
o Highly Unsatisfied

10) Loyalty Programs in Big Bazaar?

o Highly Satisfied
o Satisfied
o Neutral
o Unsatisfied
o Highly Unsatisfied

11) Do you satisfied with the billing system of Big Bazaar?

o Yes
o No
12) Do you think that the service of discount offered by Big Bazaar attracts you for impulse buying?
o Yes
o No
o Maybe

13) Which promotional services do you expect from Big Bazaar?

o Discount Offer
o Coupons
o Free Gifts
o Credit Card

14) What is your mode of payment in Big Bazaar?

o Cash payment
o Card payment

15) Age
o 15-25
o 25-35
o 35-45
o 45-55
o 60 above

16) Sex
o Female
o Male