PROJECT REPORT ON

“MARKETING NEEDS
RETAILING , RETAILING NEEDS
MARKETING”

COMPILED BY :

NARENDRA
KASHYAP
NSHM, KOLKATA
 PROJECT REPORT
AT

A Project Report Submitted In Partial Fulfillment Of The Requirements For

the

Award Of The Degree Of

MASTER OF BUSINESS ADMINISTRATION

TO

PANJAB TECHNICAL UNIVERSITY

BY

NARENDRA KASHYAP

UNDER THE GUIDANCE OF

MRS. NEELANJANA SINHA

NSHM (KNOWLEDGE CAMPUS), KOLKATA

B.L. SAHA ROAD, KOLKATA – 53

2
 PROJECT REPORT
AT

BIG BAZAAR ( FUTURE GROUP )

A Project Report Submitted In Partial Fulfillment Of The Requirements

For the

Award Of The Degree Of

MASTER OF BUSINESS ADMINISTRATION

TO

PANJAB TECHNICAL UNIVERSITY

IS A RECORD OF BONAFIDE TRAINING CARRIED OUT BY

NARENDRA KASHYAP

UNDER MY SUPERVISION AND GUIDANCE AND THAT NO PART OF THIS

REPORT HAS BEEN

SUBMITTED FOR THE AWARD OF ANY OTHER DEGREE/ DIPLOMA

FELLOWSHIP OR SIMILAR TITLES OR PRIZES.

FACULTY GUIDE

SIGNATURE: ………………………………………

NAME: MRS. NEELANJANA SINHA

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SIGNATURE AND SEAL OF THE LEARNING CENTER:
……………………….....................

STUDENT’S DECLARATION

I DO HEREBY DECLARE THAT THE PROJECT CONDUCTED AT

THE BIG BAZAAR KOLKATA

UNDER THE GUIDANCE OF

MRS. NEELANJANA SINHA

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

THE

DEGREE OF

MASTER OF BUSSINESS ADMINISTRATION

TO

PANJAB TECHNICAL UNIVERSITY

IS MY ORIGINAL WORK AND THE SAME HAS NOT BEEN SUBMITTED FOR
THE AWARD OF ANY OTHER DEGREE/ DIPLOMA/ FELLOWSHIP OR OTHER
SIMILAR TITLES OR PRIZES.

PLACE:…………………………… NARENDRA
KASHYAP

DATE:……………………………. REG. NO.:

…………………………

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 ACKNOWLEDGEMENT

There are many people who have helped me to develop this project report, without their kind
help , will not be able to develop this project report. Firstly I want to express my heartily
gratitude to the team Big Bazaar for providing help & friendly environment. That was a kind
of catalyst for learning experience greatly. I am very grateful to them for this opportunity
which not only I came in contact with lots of practical issues of marketing concerned with
retail industry. But also grab a lot of knowledge through various activities which I will
discuss in my project later.

After that I would to thank Mr. raj Banarjee, area manager Kolkata, who had brought me in
marketing field of Big Bazaar and gave me some meaningful responsible work .i.e. being in
limited time with enthusiasm and courage.

Last but not least I am thankful to Shubhodeep Kundu, deeply indebted to Mr. Sandeep Jha,
store manager Hiland Park Kolkata and its all the employees , They guided me in each and
every aspects an provide me all the essential information those are required to built up this
entire project report. I have learnt basics of marketing activities form them, and they are the
one that I completed all the activities that were given to me on my way properly with great
support and confidence. And I would like to thank few more people the entire store manager
of all Big bazaar Kolkata. I want to thank my external project guide Mr. Anirban Kundu,
person behind my project works and achievements.
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I also want to thanks my internal guide Miss. Nilanjana Sinha for her great support and
kindness and above all I am grateful to my god and parents.

TABLE OF CONTENTS

Chapters page No.

Executive Summary…………………………………………………………………..8

Introduction…………………………………………………………………….….. 9 - 10

(a)Need to study……………………………………….……………………………9

(b)Objective of study……………… .…………….. ……………………………..… 9

(c)Scope of study…………………………………………………………………..…..9

(d) Limitations of study………………………………………………………….…….9

(e) Research methodology……………………………………………..………………10

Introduction to the Organization………………………………………………..11– 18

(a) Organization profile and Structure………………………………………..….11 -13

(b) Profile of the Parent Company……………………………………….………14 – 18

Glossary of activities at Big Bazaar during internship…………………….…….18 – 22

Introduction to the topic…………………………………………………………22 – 51

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(a)Retail and types of retail………………………………………………...…….24 - 28

(b) Global and Indian retail market scenario……………………………..…..…..29-35

(c)Challenges and opportunity in Indian market………………………...…….…35- 38

(d)Market Overview……………………………………………………………..38 – 42

(e)Trends of retail in India………………………………………………...……..42 – 43

(f)Marketing and its different aspects……………………………..……………..43 – 51

Analysis and interpretation and conclusion………………………………………53 – 54

Questionnaire and its analysis……………….…………………………….…..…56- 60

Bibliography……………………………………………………………………….60

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 EXECUTIVE SUMMARY
As we know retail marketing is a management process responsible for selecting i.e
identification ,anticipation and customer satisfaction requirements profitably .it isn”t about
providing products or services ,it is essentially about providing changing benefits to the
changing needs and demands of the customer.

The retail marketing helps to raise the standerd of living of aii community .the project of
mine completely goes around the marketing and its different activities which I actually did in
my 3 months project .through mine project I want to show and establish the fact that
marketing is very essential for a particular organization especially big bazaar stores ,project
place of mine and through this I would like to show how the productivity of a particular store
is changed with a great deal of marketing plan in a task oriented way .it is in the whole
details report on different activities on different exposure in different in different big bazaar
stores at different time throughout Kolkata and outside..

Whatever I have collected ,and learnt are the basic information of this project report and
with all these important facts I would like to show the connectivity of marketing with
operation in bi bazaar ,by which way boyh of them contribute to the maximization of profit
for revenues for the enhancement of the store .and we will see by these ,how actually the
productivity level is increased through various scales .

8
So ,these are the basics of this project and in the following pages we will see how i.e actually
established.

Institute Mentor: MRS. NEELANJANA SINHA

Industry Mentor: MR. ANIRBAN KUNDU.

INTRODUCTION
Need to study :

The study is taken to fulfill the requirement of MBA degree course of

Panjab Technical University. The training is undertaken during Winter and
the main purpose of training is to know the application of theoretical
aspects in our course in corporate environment and gain firsthand
experience and expose ourselves to corporate policies, procedures, facts
about the work culture and policies of the company.

Objective Of the Study :

To understand the work culture of the organization and organization hierarchy or,
organization structure.

To understand the working of various departments.

To understand the various responsibilities and carried out by each department.

9
The study is aimed at understanding the retail and to establish the relationship between
retailing and marketing and their interdependence over each other.

Scope of The Study :

This report is based on the study conducted in Big Bazaar, Kolkata.

This study can be taken as a basis for determining all the aspects of retail,
its need in current scenario and the mutual dependency of marketing and
retail over each other.

Limitations of the Study:

• Time limit is the major constraint.

• As per the company rules, many information were not disclosed.

• As the manager is busy in their daily schedules, it is not possible for us to spend more
time in interaction and discussion with them.

Methodology Adopted for the Study:

• Observing the working of various departments

• Discussion with the company executives, manager and employees.

• Visiting and surfing websites of the company.

Sources of Data : Data are nothing but facts and figures. Data are of great significance for
the purpose conducting research because they give an insight into the matter. The accuracy
of collected data is of great significance for drawing correct and valid conclusion from the
investigation.

Depending upon the sources, data can be classified into two categories:
a) Primary Data

10
 Data that are collected afresh and for the first time and thus happens to be original in
character. Most widely used methods for collecting primary data are observation
method, interview method , questionnaires and schedules.

b) Secondary Data

Those data which have already been collected by someone else and which have already
been passed through the statistical processes. Secondary data may either be published
or unpublished.

The published data are available in –

• Various publications of central, state or local government.

• Various publications of foreign governmental bodies and their subsidiary organizations

• Books magazines, newspapers, reports and publications of various associations of the

business.

• Reports of research scholars and public records. Sources of unpublished data may be
documents, diaries, letters, unpublished bibliography etc.

ORGANISATION PROFILE
Company Name : Big Bazaar

Type : Subsidiary of Future Group Ltd.

11
Founded: 2001

Headquarter: Multiple locations

Products: Department store

Employees: more than 2000

Parent : Future Group

Divisions: ~ 100

Tag line : “is se sasta aur accha aur kahin nahi .”

Website : bigbazaar.futurebazaar.com

Logo:

Board Of Directors :
Mr. Kishore Biyani : Managing Director

Mr. Gopal Krishna Biyani : Whole time Director

Mr. Rakesh Biyani : Whole time Director

Mr. Sailesh Haribhakti : Director

Mr. S. Doreswami : Director

Mr. Darlie Koshy : Director

Mr. Anil Harish : Director

Ms. Bala Deshpandey : Director

Mr. Vijay Kumar Chopra : Director

Future Group’s Vision :

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“To deliver everything, every where, every time, to every Indian customer in the most
profitable manner.”

Future Group’s Mission :

We share the vision and belive that our customer and stake holders shall be served only by
creating and executing future scenarios in the consumption space leading to economic
development.

We will be trend setter in evolving delivery formats , creating retail realty, making
consumption affordable for all customer segments, for classes and masses.

We shall infuse Indian brands with confidence and renewed ambition.

We shall be efficient and cost conscious and committed to quality in whatever we do.

We shall ensure that our positive attitude , security , 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.

• 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.

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 Organization Chart :

Store
Manager

Assistant
Store Manager

Deptt. Sales
HR administr
marketi mgr

Visual informat
Asst. ion
merchandisi
Deptt.mg CS
Cashi
maintenan
er
ce

Team
leader securit
Asst. DM
housekee
Team ping
member

Fig 1: organization structure

14
Profile of the Parent Company :
Corporate profile of future group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s
leading business houses with multiple businesses spanning across the consumption space.
While retail forms the core business activity of Future Group, group subsidiaries are present
in consumer finance, capital, insurance, leisure and entertainment, brand development, retail
real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon
Retail, the group operates over 16 million square feet of retail space in 73 cities and towns
and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail
employs around 30,000 people and is listed other Indian stock exchanges. The company
follows a multi-format retail strategy that captures almost the entire consumption basket of
Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail
chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big
Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with
the choice and convenience of modern retail.

In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a
hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and
Bangalore.

The group’s specialty retail formats include supermarket chain – Food Bazaar, sportswear
retailer - Planet Sports, electronics retailer - eZone, home improvement chain - Home Town
and rural retail chain, Aadhaar, among others. It also operates popular shopping portal
-www.futurebazaar.com.

Future Capital Holdings, the group’s financial arm provides investment advisory to assets
worth over $1 Billion that are being invested in consumer brands and companies, real estate,
hotels and logistics. It also operates a consumer finance arm with branches in 150 locations.

Other group companies include, Future Generali, the group’s insurance venture in partnership
with Italy’s Generali Group, Future Brands, a brand development and IPR company, Future

15
Logistics, providing logistics and distribution solutions to group companies and business
partners and Future Media, a retail media initiative.

The group’s presence in Leisure & Entertainment segment is led through, Mumbai-based
listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and
Bowling Co. and family entertainment centers, F123. Through its partner company, Blue
Foods the group operates around 100 restaurants and food courts through brands like
Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato.

Future Group’s joint venture partners include, US-based stationery products retailer, Staples
and Middle East-based Axiom Communications.

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

FUTURE RETAIL

Retail forms the core business activity at Future Group and most of its businesses in the
consumption space are built around retail. Future Group’s retail network touches the lives of
more than 200 million Indians in 73 cities and 65 rural locations across the country. The
group currently operates around 1,000 stores spread over 16 million square feet of retail
space. Present in the value and lifestyle segments, the group’s retail formats cater to almost
the entire consumption expenditure of a wide cross-section of Indian consumers.

Led by Pantaloon Retail, the group’s flagship company, the group manages some of India’s
most popular retail chains like Pantaloons - a chain of fashion destinations, Big Bazaar - a
uniquely Indian hypermarket chain, Food Bazaar - a supermarket chain that blends the look,
touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and
quality and Central - a chain of seamless destination malls. Some of its other formats include
Ethnicity- India's first concept store, which recreates the experience of a traditional ethnic
market in a modern retail format, Brand Factory, Planet Sports, all, Top 10 and Star and
Sitara. The group also operates India’s most popular online shopping portal
www.futurebazaar.com.

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Retailing of products and services related to home building and home improvement is led
through the group’s formats, Home Town, a large-format home solutions store, along with
specialized formats for home furniture and home furnishing through, Collection i and
Furniture Bazaar and consumer electronics through eZone and Electronics Bazaar.

The group also operates India’s leading rural retailing chain,Aadhaar that is present in over
65 locations in rural India. Aadhaar, an agri-service cum rural retail initiative, provides a
complete solution provider for the Indian farmer.

Big Bazaar is a chain of hypermarket in India, which caters to every family’s needs and
requirements. This retail store is a subsidiary of Future group, Pantaloons Retail India Ltd.
and is an answer to the United States’ Wal-Mart. Big Bazaar has released the doors for the
fashion world, general merchandise like sports goods, cutlery, crockery, utensils, and home
furnishings etc. at best economical prices.
Big Bazaar group offers more than 100 stores all over the country with an amalgamation of
Indian bazaars’ feel and touch with a convenience and choice of the modern retail facilities.
The retail format of the Big
Bazaar group includes Aadhar, Rural & Home-Town retail chain, Ezone home-improvement
chain, sportswear retailer, depot and music chain is few among others.
History of Big Bazaar
The worldwide country chain, Big Bazaar, is formed by CEO of Future Group, Mr. Kishore
Biyani. The group do not promises more than what it delivers. Their basic attraction
associated with reasonable prices is their Unique Selling Price.
Though, the products Big Bazaar stores stocks might not be advanced, but the customers are
assured to avail the worth of the money spent by them. In 2001, the group opened its first
store on the VIP Road, Calcutta, which was the primary departmental store offering regulated
services of parking, steel vessels, apparel, electronics etc under the one roof at the
competitive prices. Big Bazaar has become a massive hit with lower middle-class and middle
class people as a major client base.
• At present, the Future Group comprises various formats and brands like Pantaloons,
F123, Copper Chimney, Etam, Staples, One Mobile, Urbana, Brand Factory,
LootMart, HomeTown and Central. The Big Bazaar has several stores located all over

17
 the India, among that Chennai, Hyderabad, Ahmedabad, Bangalore, Kolkata, Pune,
Mumbai and Delhi is those metro cities where the stores of Big Bazaars are located.

• 2001 : Three Big Bazaar stores launched within a span of 22 days in Kolkata ,
Banglore , and Hydrabad.

• 2002 : Food Bazaar , the super market chain was launched.

• 2004 : Central India’s first seamless mallwas launched in Banglore.

• 2005 : Group moves beyond retail , acquires stake in Glaxy Entertainment, Indus
league clothing and planet retail.

• Set up India’s first real estate investment fund Kshitij to build a chain of shopping
malls.

• 2006 : Future capital holdings, the company’s financial is formed to manage over $
1.5 bn in real estate, private equity and retail infrastructure funds. Plans forays into
retailing of consumer financial products.

• Home town , a home building and improvement products retail chain was launched
along with consumer durable format, Ezone and furniture zone, furniture bazaar.

• 2007 : Future group crosses $ 1 bn turnover mark, marking one of the fastest ever
expansion of a hyper market format anywhere in world.

Companies under Future Group :

• Pantaloon Retail (India) Limited

• Home Solutions Retail India Limited

• Future Brands Limited

• Future Media (India) Limited

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• Future Supply Chain Solutions Limited

• Convergem Communication (India) Limited

• Pantaloon Food Product (India) Limited

• Future Knowledge Services Limited

• Future Capital Holdings Limited

• Future Generali India Insurance Company Limited

• Future Generali India Life Insurance Company Limited

• Futurebazaar India Limited

• Weavette Texstyles Limited

• Winner Sports Private Limited

• Staples Future Office Products Private Limited

• Talwalkars Pantaloon Fitness Private Limited

• ConvergeM

• Indus League Clothing

• Galaxy Entertainment Corporation Ltd

• Future Consumer Products Limited

• Future Ventures India Limited

• Foot Mart Retail

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Glossary of my work during three months of internship at Big

Bazaar…

1. Now I will move to the activities that I did during my 3 months project.

These are the following activities that I did during my project days in marketing

for Big Bazaar. Children’s Day Activity as coordinator with agency.

2. For 9th .Anniversary of Big Bazaar as coordinator with agency

3. Market Survey on 9th Anniversary of Big Bazaar..

4. Dustu- Misti & Drawing Competition

5. New Year Last Chance Best Offers Survey.

Children’s day activity as coordinator with agency ( hiland park Big Bazaar) :

In children day activity ,I had 1stly done the registration of the children by approaching the
guardian /parent who came to big bazaar and tell them regarding the activity and tell them
it’s the platform for your children to show their talent via participating in different activities
i.e drawing ,car racing , quiz and many more activities ,which are very exciting and
meaningful for them, and after their registration ,my work to coordinate in the events in all
aspects and I had done as per the demand and the event successful.

These are few more interesting things :

Why we celebrate children's day?

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On that particular day we give the children opportunity to promote their skills through
different activities other than their trendy way of study that is bookish way.

Mission and vision behind celebrating Children’s day………..

The mission to promote their skill and the vision with these activities the big bazaar wants to
make a relation with the children.

4p’s related to children's day party :

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 Fig 2 : children’s day activity at the store

Product: children’s day party in which there are lots of activities like quiz, workshop,
handwriting competition, by these competitions they will be rewarded .

Price : cost of advertisement and promotion through print and digital media.

Cost of gift and prices. Arrangement expenses i.e. Working staff expenses.

For the expenses big bazaar has collaborated with Disney and other sponsors.

Promotion : Through children’s party activity to promote a relationship between big

bazaar and children. Here at Big Bazaar we have children's stuffs book, toys , Playing

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 stuffs and yummy food items Which salivate your mouth. All these things are reliable
prices.

Place: Big Bazaar Hiland park .

9th Anniversary of Big Bazaar :

In this events there are lots of things are happening at a time for customers and at each store
4 events are there CHABHI MILLI KYA(CMK) ,NAIL ART(NA), CARNIVAL CUTOUT
(CC)and DHAKI,in these activities I have to coordinate with agency guys like in CMK ,paer
keys are distributed properly or not and people are coming to get the prize or not ,it is the
event basically to provide customer paper key and here inside store the paper key is
exchanged with lots of mixed original keys and you have to select one key and open a box
which is full of gifts ,if it will open the lock you can get the prize which are inside the box.

In nail art –you can color your nail via different colors according to your choice and design
as well without any charges .design is made by an expert nail art personnel.

In carnival cutout – you have to insert your face in a cutout of spider man catalog and we
had clicked their pics and deliver them instantly .

Dhaki-is nothing but dhol with heavy drumming with a particular format and many more
exciting offers for the customer on their buying capability, above all events are for the
enhancement of the foot fall and selling of the store.

PLACE-Hiland park.

Market Survey on 9th Anniversary of Big Bazaar.

It’s the survey about the offers we were providing and the events.
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QUESTIONNAIRE are at last.

Place-Sealdah big bazaar.

Dustu- Misti & Drawing Competition :

These are the events for children upto 12 years old. it is also for to enhance the footfall of
parents with their children .Dustu-misti ,the activity i.e the way to calculate the naughtiness
and sweetness of the children via different activity.

Drawing the the same as we know some characters ,the characters are given by us.

Place –salt lake Big bazaar

New Year Last Chance Best Offers Survey : Nothing but the survey of offers that are

provided by us is enough or not ,good or bad etc.

Place- Salt lake big bazaar.

INTRODUCTION TO THE TOPIC

Retail etymologically denotes the sale of ‘cut-off’ bits, hence sales in small quantities. It
comes from old French retail ‘piece cut off’, a derivative of retailer ‘cut up’. This was
a compound verb formed from the intensive prefix re- and taillier ‘cut’
(source of English tailor). It usein English for ‘sell in small quantities’ was probably
inspired by the Italian retagliare, which has the same meaning. The
figurative sense‘relate, tell’ appeared at the end of the 16th century.

Retailing includes all the activities in selling goods or services directly to final customers
for personal , non -business use. A retailer or retail store is any business enterprise whose
sales volume comes primarily from retailing.
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Any organization selling to the final customers – whether it is a manufacturer , wholesaler,
or, retailer – is doing retailing. Retail consists of the sale of goods or merchandise from a
fixed location, such as a department store, boutique or kiosk, or by mail, in small or
individual lots for direct consumption by the purchaser. Retailing may also include services,
such as delivery. Retail establishments are often called shops or stores. Retailers are at the
end of the supply chain. Manufacturing marketers see the process of retailing as a necessary
part of their overall distribution strategy. The term "retailer" is also applied where a service
provider services the needs of a large number of individuals, such as a public utility,
like electric power.

Levels Of Services Provided By Retailers :

Retailers position themselves by offering one of four levels of services.

1) Self - Service : Self services is the cornerstone of all discount operations. Many
customers are willing to carry out their own locate- compare – select process to save
money.

2) Self – Selection : customers find their own goods , although they can ask for
assistance.

3) Limited service : These retailers carry more shopping goods and services such as
credit and merchandise- return previlage. Customers need more information and
assistance.

4) Full Service : Salespeople are ready to assist in every phase of the locate – compare –
select process. Customers who like to be waited on prefer this type of store.

Positioning Strategies adopted by retailers based on these four levels of services

provided by retailers are :

Bloomingdale’s -

25
 Stores that feature a broad product assortment and high value added pay close
attention to store design, product quality , service and image. Their profit margin is
high , and if they have enough volume, they will be very profitable.

Tiffany –

Stores that feature a narrow product assortment and high value added cultivate an
exclusive image and operate on high margin and low volume.

Sunglass Hut –

Stores that feature a narrow line and low value added keep costs and prices low by
centralizing buying , merchandising, advertising and distribution.

Wal – Mart -

Stores that feature a broad line and low value added focus on keeping prices low and
have the image of a place for good buys. High volume makes up for low margin.
Broad

Bloomingdal Wal -
e’s Mart

Product

line
Tiffany Sunglass
Hut

Narrow

Value Added

26
 High Low

Fig3 : Retail Positioning map

Types of retail outlets

Fig4 : a retail outlet

A. Store Retail :

B. Non – store Retail :

C. Retail Organization :

Customers today can shop for goods and services at store retailers, non -store
retailers and retail organizations. Perhaps the best known type of retailer is the
department store.

The most important retail store types are described as follows –

Specialty Store: A typical specialty store gives attention to a particular category and
provides high level of service to the customers. A pet store that specializes in selling dog
food would be regarded as a specialty store. However, branded stores also come under this

27
format. For example if a customer visits a Reebok or Gap store then they find just Reebok
and Gap products in the respective stores.

Department Store: very large stores offering a huge assortment of "soft" and "hard goods;
often bear a resemblance to a collection of specialty stores. A retailer of such store carries
variety of categories and has broad assortment at average price. They offer considerable
customer service.

Superstore: Huge selling space , routinely purchased foods and household items , plus
service such a Pets mart , staples , Home depot ; Combination store such as Jewel-Osco :
hypermarket( huge stores that combine supermarket , discount and warehouse retailing.) such
as Carrefour in France.

Convenience store: is essentially found in residential areas often open 24/7. They provide
limited amount of merchandise at more than average prices with a speedy checkout. This
store is ideal for emergency and immediate purchases.7-Eleven, Circle - K

Discount Store: tend to offer a wide array of products and services, but they compete mainly
on price offers extensive assortment of merchandise at affordable and cut-rate prices.
Normally retailers sell less fashion-oriented brands. However the service is inadequate.

Off – price Retailer: Leftover goods, overruns, irregular merchandising sold at less than
retail. BJ’s wholesale. Filene’s Basement.

Supermarket : Is a self service store consisting mainly of grocery and limited products on
non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets
can be anywhere between 20,000-40,000 square feet. Example: SPAR™ supermarket, food
emporium, Kroger.

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Catalog Showroom : Broad section of high mark-up , fast moving, brand – name goods sold
by catalog at discount. Customers pick up merchandise at the store. Inside Edge Ski and
Bike.

Although 97 % of goods and services are sold through stores , non -store retailing has been
growing much faster than store retailing.Store retailing falls into four major categories

Direct Selling :Also called as multilevel selling and network marketing, is a multibillion –
dollar industry , with hundreds of companies selling door – to – door or at home sales parties.
A sales person goes to the home of the host who has invited friends ; the salesperson
demonstrates the products and take orders. This system works by recruiting independent
businesspeople who acts as distributors. the distributor’s compensation includes a percentage
of sales made by those he or she recruits , as well as earning on direct sales to customers.
Example – Avon , Electrolux etc.

Direct marketing : Direct marketing has roots in direct –mail and catalog marketing,
television direct response marketing and electronic shopping. As people become more
accustomed to shopping on the internet, they are ordering a greater variety of goods and
services from a wider range of website.

Automatic Vending : It offers a variety of merchandise , including impulse goods such as

cigarette , soft-drinks , coffee , candy , newspaper , magazines , and other products such as
hosiery , cosmetics , hot food , condoms and paperbacks.

Vending machines are found in factories , offices , large retail stores , gasoline stations ,
hotels , restaurants and many other places. They offer 24- hour selling , self services and
merchandise that is always fresh.

Buying services : Buying service is a storeless retailer serving a specific clientele – usually
employees of large organizations – who are entitled to buy from a list of retailers that have
agreed to give discount in return for membership.

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 Fig5 : Automatic vending machine

Retail Organizations are independently owned and aimed at achieving economies of

scale , greater purchasing power , have wider brand recognition and better trained employees
.

The major types of retail organizations are –

Corporate Chain Store : Two or more outlets owned and controlled , employing central
buying and merchandising and selling similar lines of merchandise.

Voluntary Chain : A wholesaler - sponsored group of independent retailers engaged in bulk

buying and common merchandise.

Retailer Cooperative : A retail firm owned by its customers .

Franchise Organization : Contractual association between a franchisor and franchise ,

popular in a number of products and service areas.

Merchandising Conglomerate : A corporation that combines several diversified retailing

lines and forms under central ownership with some integration of distribution and
management.

Retail is India’s largest industry , accounting for 11 % of country’s GDP and around 8 % of
the employment.
30
Retail has emerged as one of most dynamic and fast paced industries with several players
entering market but because of heavy initial investment , required break – even is difficult to
achieve and many of these player are not tasted success so far . However , future is promising
; the market is growing . government policies are becoming more favourable and emerging
technologies are facilitating operation.

Retailing in India is gradually inching its way towards becoming the next boom industry .
The whole concept of shopping has altered in terms of format and consumer buying behavior.
Modern retail has entered India as seen in sprawling shopping centers , multistoried malls
and huge complexes offer shopping entertainment under one roof. The Indian retailing sector
is at an inflexion point where the growth of organized retailing and growth in consumption
by the Indian population is going to take a higher growth trajectory.

The Facts :

Retailing in more developed countries are big business and better organized that what it is in
india . global retail business is worth a staggering $ 7 trillion . the ratio of organized retailing
to unorganized in US is around 80 to 20.

In India , the scenario is quite unique , organized retailing accounts for a mere 5 % of total
retail sector . Although there are around 5 million retail stores in India, 90 % of these have a
floor space area of 500 sq. ft. or, less. The emergence of organized retailing in India is a
recent phenomenon and is concentrated in the top 20 urban towns and cities.

The Reason:

The emergence of organized retailing has been due to the demographic and psychographic
changes taking place in the life of urban consumers. Growing number of nuclear families ,
working women , grater work pressure ,e changing values and lifestyles , increased
community times , influence of western way of life etc . Have meant that the needs and wants
of consumers have shifted from just being cost and relationship drive to brand and experience
driven while the value element still dominating the buying decision.

Global Retail industry:

Retail has played a major role world over in increasing productivity across a wide range of
Consumer goods and services .The impact can be best seen in countries like U.S.A., U.K.,
31
Mexico, Thailand and more recently China. Economies of countries like Singapore,
Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector.

Retail stores constitute 20 % 0f US GDP and are 3rd largest employer segment in USA.

China on the other hand has attracted several global retailers in recent times. Retail sector
employs 7 % of population in China. Major retailers like Wal – Mart and Carrefour have
already entered the Chinese market.

The top 200 retailers alone accounts for 30 % of worldwide demand. Retail turnover in EU is
approximately 2 lakh crore euros and the Asian economies (excluding Japan) are expected to
grow 7% till 2009- 10.

Top Retailers Worldwide

Rank Retailer Home Country

1. Wal-Mart Stores, Inc. U.S.A.

2. Carrefour Group, France

3. The Kroger Co., U.S.A.

4. The Home Depot, Inc. U.S.A.

5. Metro Germany

(Source: STORES / Deloitte Touché Tomahatsu)

Scenario of Retailing in India:

32
Retailing is the most active and attractive sector of last decade. While the retailing industry
itself has been present since ages in our country, it is only the recent past that it has witnessed
so much dynamism.

The emergence of retailing in India has more to do with the increased purchasing power of
buyers, especially, post – liberalization, increase in product variety and increase in economies
of scale, with the aid of modern supply and distribution solutions. The India Retail Report
2010, a survey conducted by business consultancy Technopak Advisors, yields that the
country's retail market is expected to touch 620 billion Euros (around Rs 37 lakh crore) by
2020 at a compounded annual growth rate (CAGR) of more than 25%.
The BMI India Retail Report for the first-quarter of 2011 forecasts that total retail sales will
grow from US$ 392.63 billion in 2011 to US$ 674.37 billion by 2014. Strong underlying
economic growth, population expansion, the increasing wealth of individuals and the rapid
construction of organized retail infrastructure are key factors behind the forecast growth.
With the expanding middle and upper class consumer base, there will also be opportunities in
India's tier II and III cities. Furthermore, according to a report titled 'India Organized Retail
Market 2010', published by Knight Frank India in May 2010 during 2010-12, around 55
million square feet (sq ft) of retail space will be ready in Mumbai, national capital region
(NCR), Bengaluru, Kolkata, Chennai, Hyderabad and Pune. Besides, between 2010 and
2012, the organized retail real estate stock will grow from the existing 41 million sq ft to 95
million sq ft. India has been ranked as the third most attractive nation for retail investment
among 30 emerging markets by the US-based global management consulting firm, A T
Kearney in its 9th annual Global Retail Development Index (GRDI) 2010.

Driven by the growth of organized retail coupled with changing consumer habits, food retail
sector in India is set to be more than double to US$ 150 billion by 2025, according to a report
by KPMG. Foreign direct investment (FDI) inflows between April 2000 and October 2010,
in single-brand retail trading, stood at US$ 197.04 million, according to the Department of
Industrial Policy and Promotion (DIPP).

100 per cent FDI is permitted under the automatic route for trading companies for cash &
carry trading wholesale trading/ wholesale trading.

FDI up to 51 per cent under the Government route is allowed in retail trade of Single Brand
products, according to the Consolidated FDI Policy document.

33
According to industry experts, the next phase of growth is expected to come from rural
markets.

According to a market research report published in June 2008 by RNCOS titled, 'Booming
Retail Sector in India', organized retail market in India is expected to reach US$ 50 billion by
2011. The key findings of the report are:

• Number of shopping malls is expected to increase at a CAGR of more than 18.9 per
cent from 2007 to 2015
• Rural market is projected to dominate the retail industry landscape in India by 2012
with total market share of above 50 per cent
• Driven by the expanding retail market, the third party logistics market is forecasted to
reach US$ 20 billion by 2011
• Apparel, along with food and grocery, will lead organized retailing in India

Future Group and Reliance Retail are some of the players who are already tapping into the
sector and have launched brands such as Staples and Office Depot.

The factors responsible for the development of the retail sector in India can be broadly
Summarized as follows:
• Rising incomes and improvements in infrastructure are enlarging consumer markets
And accelerating the convergence of consumer tastes.
Looking at income classification, the National Council of Applied Economic Research
(NCAER) classified approximately 50% of the Indian population as low income in 1994-
95; this is expected to decline to 17.8% by 2006-07.
• Liberalization of the Indian economy which has led to the opening up of the market for
consumer goods has helped the MNC brands like Kellogs, Unilever, Nestle, etc. to
Make significant inroads into the vast consumer market by offering a wide range of
Choices to the Indian consumers.
• Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.
• 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 is
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, watches more than 50 TV satellite channels,
34
And display the highest propensity to spend, will immensely contribute to the growth of
The retail sector in the country. As India continues to get strongly integrated with the
World economy riding the waves of globalization, the retail sector is bound to take big
leaps in the years to come.

The Indian retail sector can be broadly classified into:

a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector.
Traditional types of retailers, who operate small single-outlet businesses mainly
Using family labor, dominate this sector .In comparison, super markets account for
A small proportion of food sales in India. However the growth rate of super market
sales has being significant in recent years because greater numbers of higher income
Indians prefer to shop at super markets due to higher standards of hygiene
and attractive ambience.
b) HEALTH & BEAUTY PRODUCTS
With growth in income levels, Indians have started spending more on health and
beauty products .Here also small, single-outlet retailers dominate the market
.However in recent years, a few retail chains specializing in these products have
come into the market. Although these retail chains account for only a small share of
the total market , their business is expected to grow significantly in the future due to
the growing quality consciousness of buyers for these products .
c) CLOTHING & FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all
over India. Traditional outlets stock a limited range of cheap and popular items; in
contrast, modern clothing and footwear stores have modern products and attractive
displays to lure customers. However, with rapid urbanization, and changing patterns
of consumer tastes and preferences, it is unlikely that the traditional outlets will
survive the test of time.
d) HOME FURNITURE & HOUSEHOLD GOODS
Small retailers again dominate this sector. Despite the large size of this market, very
few large and modern retailers have established specialized stores for these
products. However there is considerable potential for the entry or expansion of
specialized retail chains in the country.
e) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period. A greater variety of consumer
electronic items and household appliances became available to the Indian customer.
35
Intense competition among companies to sell their brands provided a strong impetus
to the growth for retailers doing business in this sector.
f) LEISURE & PERSONAL GOODS
Increasing household incomes due to better economic opportunities have
encouraged consumer expenditure on leisure and personal goods in the country.
There are specialized retailers for each category of products (books, music products,
etc.) in this sector. Another prominent feature of this sector is popularity of franchising
agreements between established manufacturers and retailers.

Top five Indian Retailers :

Shopper’s Stop :

K. Raheja group of companies founded Shoppers' Stop on October 27, 1991. The
organization had already made its presence felt in the hospitality and real estate sector, and
now it has created a landmark in the Retail sector with Shoppers' Stop. Shoppers' Stop is
famous for the expertise and acumen relating to the current practices of the industry. It
provides quality services, products and the right kind of shopping environment. It has
developed itself as a household name and has set high standards for itself with the mission
statement, “Nothing But The Best”

Westside :

Tata group founded Trent Ltd. ( Westside) in 1998. The acquisition of a London based retail
chain Littlewoods by Tatas was followed by the establishment of Trent Ltd. , which was later
renamed as Westside .

It is one of the largest and fastest growing chains serving the customers in various
categories . the company offers products with a balance between style and price.

Trent had established a hypermarket business with Star India Bazaar which provides them
products at lower price and better shopping experience. Star India Bazaar offers customers a
variety of products in categories, such as staple foods, fruits, vegetables, consumer
electronics, health and beauty products and many more at affordable prices.

Pantaloon Retail (Big bazaar ) Limited:

Pantaloon Retail is the flagship enterprise of the Future Group. Pantaloon Retail (India)
Limited has spread across various businesses and cities in India. Pantaloon owns multiple
36
retail formats and is able to cater to a large section of the society. The company has over 140
stores across 32 cities in India and 14000 employees. The headquarters of the company are
situated at Mumbai. The organization made an incursion into the modern retail (fashion) in
1997. Big Bazaar, a hypermarket chain, was introduced in the year 2001, with an Indian
touch of convenience and hygiene. Food Bazaar, food and grocery chain, and Central Mall
located at various Metros are other important parts of the group.

Others include Collection (home improvement products), E-zone (consumer electronics),

Depot (books, music, stationery and gifts), Blue Sky (fashion accessories) and Shoe Factory
(footwear). The company has also launched a retailing venture known as futurebazaar.com.

The vision of Future group is to "Deliver Everything, Everywhere, Every time to Every
Indian Consumer in the most profitable manner."

National Retail Federation gave Pantaloon the 'International Retailer of the Year' Award.

Some of the awards given to Pantaloon Retail (India) Limited:

Images Retail Awards 2005

PRIL - Most admired retailer of the year

Central - Retail launch of the year

Mr. Kishore Biyani - Retail Face of the year

Big Bazaar - Best Value Retail Store

Readers Digest and Awaaz Consumer Award

Big Bazaar - Best Retail Destination

Readers Digest Platinum Trusted Brand Award

Big Bazaar - Earning a trusted Place in the everyday lives of consumers

Food Bazaar - Retailer of the year (food and grocery

Big Bazaar - Most preferred, large, Food and Grocery store

37
Lifestyle International :

Lifestyle is an international fashion store of Landmark Group , a Dubai based company.

Lifestyle created a revolution in the Indian Retail Industry by bringing a truly international
shopping experience. It was launched in Chennai , and now it is one of the largest
professional retailers spread across 325000 sq. ft. in various cities such as Chennai ,
Gurgaon, Mumbai , Hyderabad and Bangalore . It is a haven for shoppers with a vibrant and
spicy lifestyle. It provides a wide choice of products at affordable price with a convenient
world – class environment and a friendly layout.

RPG Retail:

The history of RPG enterprise goes back to 19th

century. In 1979 Mr. R P Goenka took the initiative to
set up RPG Enterprises. Presently it has a turnover of
US $ 1.65 bn. And assets worth US $ 1.8 bn . Among
the fastest growing groups in India , it is operating
successfully through more than 20 companies in 7
business sectors .

The organization believes in responding to business

opportunity, making optimum utilization of resources,
and inspiring people to foster teamwork .Quality is
another important parameter for enterprise to

Fig 6: Customers at Retail Store improve

continuously and satisfy customers in the
best possible manner.

Its largest chain of Spencers offers a complete array of products and durables. It is operating
through 80 stores spread in 20 cities, and is still growing rapidly. Every month nearly 2.6
million people walk in its stores. The stores are located in Bangalore, Mumbai, Delhi,
Chennai, Trivandrum, Hyderabad, Faridabad, Vizag, Aurangabad, Pune, Ghaziabad, Cochin,
etc.The music store of RPG Enterprises - Music World delivers its products through 170
outlets spread in 21 cities. The enterprise has also set up a training institute for Front Line
Staff and Staff Managers known as RPG Institute of Retail Management (RIRM).

38
Challenges of Retailing in India

Retailing as an industry in India has still a long way to go. To become a truly flourishing

industry, retailing needs to cross the following hurdle :

Retailers face many challenges in Indian market and some of the key challenges are :

a)Location :

“Right place , Right Choice”

Location decisions are harder to change because retailers have to either make sustainable
investment to buy and develop real estate or , commit to long term lease with developers .
When formulating decisions about where to locate , the retailer must refer to strategic plan.
**Investigate alternate trading areas
**Determine the type of desirable store location.
** Evaluate alternative specific store sites.

b)merchandise :
The primary goal of most retailers is to sell the right kind of merchandise . It consists
of activities involved in acquiring particular goods and services and making them
available at a place , time and quality that enables the retailer to reach its goals. It is
perhaps the most important function for any retail organization.
c) Pricing :
Pricing is a crucial strategic variable due to its direct relationship with a firm’s goal
and its interaction with other retailing elements. The importance of pricing decision is
growing because today’s customers are looking for good value when they buy
merchandise and service . Price is the easiest and quickest variable to change.

d)Target Audience :
“Consumer , the price mover”
39
 “Consumer pull” , however seems to be the most important driving factor behind the
sustenance of the industry. The purchasing power of the customer has increased to a
great extent with the influencing industry with a variety of other factors also seem to
fuel the retailing boom.

e)Scale of operation :
Scale of operation includes all the supply chain activities which are carried out in the
business . It is one of the challenges that the Indian retailers are facing. The cost of
business operation is very high in India.
Apart from the above challenges , other problems are
• Automatic approval is not allowed for foreign investment in retail.
• Regulations restricting real estate purchases, and cumbersome local laws.
• Taxation, which favors small retail businesses.
• Absence of developed supply chain and integrated IT management.
• Lack of trained work force.
• Low skill level for retailing management.
• Intrinsic complexity of retailing – rapid price changes, constant threat of
product obsolescence and low margins.

Opportunities in Indian market :

India has one of the largest number of retail outlets in the world. The sector is witnessing
exponential growth with retail development taking place not only in major cities and
metros, but also in Tier-II and Tier- III cities. The total retail spend is estimated to
double in the next five years, of which organized retail growing at a CAGR of 22 percent
is estimated to be c. 21 %
percent

In the next phase of the retail revolution in the country, retail companies are expected to tap
the rural segment further as their key engine of growth. FMCG players are focusing on the
rural market as it constitutes over 33 per cent of India’s FMCG consumer base. For example,
ITC is tapping into the rural retail market through its e-Choupal and Choupal Sagar rural
hypermarkets.

I India is also receiving greater attention in terms of its offering a

rcing g base for large retail players. Global retailers such as Wal-Mart,

40
 P E Penney, etc. , are stepping up their sourcing from India and moving
g offices t establishing their own wholly-owned/wholly-managed sourcing and

The Potential of the Indian Retail Sector

The high growth projected in domestic retail demand will be fuelled by:
�The migration of population to higher income segments with increasing per capita
Incomes.
�An increase in urbanization
� Changing consumer attitudes especially the increasing use of credit cards
� The growth of the population in the 20 to 49 years age band
There is retail opportunity in most product categories and for all types of formats
� Food and Grocery: The largest category; largely unorganised today
� Home Improvement and Consumer Durables: Over 20 per cent p.a. CAGR estimated
in the next 10 years
� Apparel and Eating Out: 13 per cent p.a. CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure: Cold chain and logistics
India also has significant potential to emerge as a sourcing base for a wide variety of goods
for
international retail companies
� Many international retailers including Wal-Mart, GAP, JC Penney etc. are already
procuring from India.

Market overview :

India’s retail market, valued at US$ 350 billion in 2008–09, is projected to grow at 13 per
cent per annum.

The country’s retail sector is the second-largest employer after agriculture, with retail trade
employing 35.06 million* and wholesale trade generating an additional employment of 5.48
million.

Food is the largest segment in terms of its contribution to the total value of the retail market,
followed by fashion and fashion accessories.

41
Fig7 : Indian retail market( www.ibef.org)

42
Fig8:(Sources : Pantaloon Retail India Ltd, 2008-09 annual results analyst presentation, Dt:
September 26, 2009)

Organised retail :
Organised retail penetration level
(in per cent)
India is at an early stage of evolution in
Organisedretail, with its current penetration USA 85
being 5 per cent, which indicates a huge France 80
potential for growth. Japan 66
Malaysia 55
The share of organized retail in total
Indian retail trade is projected to grow Brazil 36
at 40 per cent per annum. Russia 33
China 20
Organized retail formats including departmental India 5
Stores, hypermarkets, supermarkets and specialty
Stores are fast replacing traditional
Table 1. sources: The retailer, Ernst
43
&
Young, January 2009
Retail formats such as stores (small ‘mom-and-pop’
general stores) due to rising consumer expectations.
Organized retail formats in India…
Format Description Example

Hypermarkets • Average size varies between 50,000 sq. Spancer , Big Bazaar
ft and 100,000 sq. ft.
• Offer a basket of products ranging from
grocery, fresh and processed food ,
beauty and household products etc.
Cash and carry • Average size – 75,000 sq. ft. Metro , Bharti – Wal
• Offers several thousand stock keeping – Mart
units and generally have bulk buying
requirement.
Departmental store • Average size varies between 10000 sq. Shopper’s Stop ,
ft, and 60000 sq.ft. Lifestyle
• Offer a large layout with wide
merchandise mix.
Supermarkets • Large in size and typical in layout Apna Bazaar
• Offer not only house hold products but
also food as an integral part of their
services.
Shop – in – shop • Shops located within the premises of Infinity ( Magma
large shopping malls in big cities Group
Specialty store • Single category stores. Brand factory , food
• Focus on individual and group clusters bazaar
of same class with high product loyalty
Category killers • Average size -8000 sq. ft The loft ( footwear
• Large specialty stores focusing on a mall)
particular segment who are able to
provide a wide range of choice to
consumers.
Discount stores • Average size – 1000 sq. ft. Subhiksha, Levi’s
• Offers wide range of products mostly factory outlet
branded , at discounted prices.
Convenience stores • Average size – 800 sq. ft. In & Out , Safal, etc.

44
 • Relatively small retail stores located near
residential areas.

Table 2
Key players in Indian Market …

Player Store brands ( products )

Landmark(books and music), Croma(multi-brand electronics),

World of Titan (watches), Tanishq(jewellery), Titan Eye+ (eye
Tata group wear),Westside (lifestyle retail store), Star Bazaar (hypermarket
chain), Fashion Yatra(family fashion store)

Central (shopping mall), Big Bazaar (hypermarket), Pantaloons

(fashion outlet), Blue Sky (sunglasses), Brand Factory (multi-
Furure Group brand readymade garment), KB's Fair Price (essential products),
Navaras(jewellery), Planet Store (multi-brand sports and
lifestyle specialty retail), aLL(fashion garments), Ethnicity
(Indian ethnic wear), Home Town (home needs),
eZone(electronics), Furniture Bazaar (home furniture),
Electronics Bazaar (under Big Bazaar, electronics stores), Home
Bazaar (satellite version of Home Town), Collection I (lifestyle
furniture), Gen M & One Mobile (mobile phones), M-Port
(electronics), Shoe Factory (footwear) and Depot (books and
music)
Reliance Fresh (neighbourhood store), Reliance Mart
(supermarket), Reliance Super (mini-mart), Reliance Digital
(consumer durables and information technology), Reliance
Reliance Group Trends (apparel and accessories), Reliance Wellness (health,
wellness and beauty), iStore (Apple products), Reliance
Footprint (footwear), Reliance Jewels (jewellery), Reliance
TimeOut (books, music and entertainment), Reliance AutoZone
(automotive products and services) and Reliance Living (home
ware, furniture, modular kitchensand furnishings)
Spencers(multi-format retail store), Music World ( music and
45
 RPG Group home video store) and Books & Beyond (book store)

Shopper's Stop (clothing, accessories, fragrances, cosmetics,

K Rahrja Group footwear and home furnishing store), Crossword (book store),
InorbitMall (fashion, lifestyle, food and entertainment) and
Hyper City (hypermarket)
Field Fresh (fresh and processed fruits and vegetables —
Bharti Group multiple-format store)

Vishal Mega Mart (multiproduct stores)

Vishal Retail

Table 3

Trends in Retailing in India :

 Emergence of multiple franchisee model —This model is largely adopted by
companies offering products in value and semi-premium branded segments to
enable greater scale, limit dependence on a few players and leverage local
hands-on knowledge of the market. Jumbo King, the Mumbai-based snack
major, and PepsiCo India are following this model.

 Rural retailing —Rural India accounts for more than 70 per cent of all Indian
households and close to two-fifths of the total consumption pie. Retail
companies have realized the importance of tapping the rural consumer base. For
example, DCM Shriram'sHariyaliKisaanBazaarand ITC's ChaupalSagar.

46
 Collaborative model for international products —Joint ventures (JVs) are
emerging as the preferred model for new entrants, wherein foreign players
leverage the knowledge of the local player and focus on key issues such as
quality, pricing, promotions and brand management. Key examples include the
BhartiGroup JV with Wal-Mart for retail and wholesale retail and the Staples JV
with Pantaloon Retail Ltd to launch its products in the Indian market.

 Vertical integration —Retail companies are looking at integrating their business

models vertically to explore additional sources of revenues. For example,
DaburIndia Ltd’s retail foray into health and beauty retail business through a
retail chain known as ‘NewU’, and Nokia opening its concept stores.

 Collaboration in back-end resource sharing —Another interesting trend in the

Indian retail market is the collaboration of back-end resources by aligning their
sourcing operations and sharing private labels, logistics, warehouses and hiring
details on a transactional payment basis. For example, the Future Group, the
AdityaBirla Group, the RPG Group and the Reliance Group have come together
to reduce their operational costs and improve margins.

 Increasing market reach —Retail companies now seek to increase their footprint
in Tier II, III, IV cities and towns to capture the domestic demand. For example,
the Raymond Group has plans to open more than 200 stores across the country
by mid-2011 and the Tata Group's retail venture, Westside, is planning to
expand its franchisee base in Tier II and Tier III cities.

47
  Innovation in new retail formats —Retailers are not only investing in their
operations, but are also exploring the possibility of adopting new business
models or formats. For example, Reliance Retail has devised a new business
model under which it will open small employee-friendly retail outlets at the
premises of large corporate organisations. The Network18 group has ventured
into online and on-air retail marketing and distribution through HomeShop18.

Marketing is all about identifying and meeting human and social needs. One of the shortest
and best definitions of marketing is “meeting needs profitably” .

The American Marketing Association defines marketing as “ marketing is an organizational

function and a set of processe for creating , communicating and delivering values to
customers and for managing customer relationship in ways that benefit the organization and
its stakeholders. Marketing is a societal process by which individuals and groups obtain what
they need and want though creating, offering and freely exchanging products and services of
value with others.

What is marketed...?
Marketing people generally market ten types of entities and those are:

Goods:

Physical goods constitutes the bulk of most countries’ production and marketing efforts. Not
only do companies market their products, but thanks in part to internet , even individuals can
effectively market goods.

Services :

Services include the work of airline , hotels , car rental firm , barbers and beauticians ,
maintenance and repair people and accountants , bankers , lawyers , engineers , doctors,
software programmers and management consultants.

Events :
48
Marketers promote time – based events , such as trade shows , artistic performance ,
company advertisement , Olympics and world cup etc.

Experiences :

A firm can create , stage , and market experiences . Walt Diseny world’s Magic Kingdom
represents this kind of experiential marketing , allowing customers to visit a fairy kingdom.

Persons :

Celebrity marketing a major business .Artists , musicians , CEOs , physicians , high- profile
lawyers and financiers and other professionals all get help from celebrity marketers.David
Beckham , Oprah Winfrey are some of the world class celebrity.

Places :

Cities , states , regions and whole nation compete actively to attract tourist , factories ,
company headquarters and new residents. The Las Vegas Convention & Tourism Authority
spent about $ 80 million on a provocative ad campaign.

Properties :

Properties are intangible rights of ownership of either real property or financial property .
Real estate agents work for property owners or sellers or they buy and sell residential or
commercial real estate.

Organizations :

Organisations actively work to build a strong, favorable and unique image in the minds of
their target publics. Universities, museum, performing arts organizations and non – profit
organizations all use marketing to boost their public image and to compete for audience and
funds. Corporate identity campaigns are the result of intensive market pets for audiences and
funds.

Information:

49
Information is essentially with what books, schools and universities produce market and
distribute at a price to parents, students and communities. The production, packing and
distribution of information are some of our societies’ major industries.

Ideas:

Every market offering includes a basic idea. Products and services are platforms for
delivering some ideas or benefit.

Markets traditionally a market was a physical place where buyers and sellers gathered to
buy and sell goods. Economists describe a market as a collection of sellers and buyers who
transact over a particular product or product class. Modern economies abound in such
markets.

Marketers often use the term market to cover various grouping of customers. They view
sellers as constituting the industry and buyers as constituting the market.

Manufacturers go to resource markets, buy resources and turn them into goods and services
and then sell finished products to intermediaries, who sell them to consumers. Consumers sell
their labor and receive money with which they pay for goods andservices.The government
collects tax revenue to buy goods from resources , manufacturer and intermediary markets
and use these goods and services to provide public service.

Resources resources
Resource
Money Markets Money

Taxes, Survives

Goods money

Services, money taxes

Manufactur Government Consumer
er market
Taxes, goods market Services market

50
 Services, money taxes, goods

Money Intermediary Money

Goods and services goods and
market
services

Fig 9: Structure of flow in a modern Exchange economy

A simple marketing system:

Fig 10: simple

Marketing System

The above given figure shows the relationship between the industry and the market. Sellers
and buyers are connected by four flows viz. communication, goods and services, money and
information. The sellers send goods and services and communicate such as ads and
direct mail to the market ; in return they receive money and information such as customer
attitudes and sales data. The inner loop shows an exchange of information.

To completely understand the concept of marketing function, we need to understand the

following core set of concepts.

Needs, wants and demand:

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Need are the basic human requirements. These needs become wants when they are directed to
specific objects that might satisfy the need. Demands are wants for specific products backed
by an ability to pay.

We can further distinguish needs into five types which are Stated Needs, real needs, unstated
needs, delight needs and secret needs.

Target Markets, positioning and segmentation:

After the identification of market segments, the marketer decides which present the greatest
opportunities which are its target markets. For each, the firm develops a market offering that
it positions in the mind. Of target buyers as delivering some central benefits.

Offering and brands :

The intangible value proposition is made physical by an offering , which can be a

combination of product , services , information and experiences. A brand is an offering from
a known source .

Value and satisfaction :

The offerings will be successful if it delivers value and satisfaction to the target buyer. Value
reflects the sum of the perceived tangible and intangible benefits and cost of customers and
satisfaction reflects a person’s judgment of product’s received performance in relationship to
the expectation.

Marketing Channels :

Marketers use three kinds of marketing channels to reach a target market. The
communication channels deliver and receive messages from target buyers and include
newspapers , magazines , radio, television , mail , telephone , billibords , posters , CDs, and
internet. Marketers use distribution channels to display , sell or , deliver the physical product
or services to the buyers or user. Service channels are used by the marketers to carry out
transactions with potential buyers .

Supply Chain :

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The supply chain is a longer channel stretching from raw materials to components to final
products that are carried to final buyer. Each company captures only a certain percentage of
the total value generated by the supply chain’s value delivery system.

Competition :

Competition includes all the actual and potential rival offerings and substitutes a buyer might
consider.

Marketing Environment :

The marketing environment consists of the task environment and the broad environment .
The task environment includes the actors engaged in producing , distributing and promoting
the offering. The broad environment consists of six components : demographic environment
. economic environment , physical environment , technological environment , political – legal
environment and socio-cultural environment.

The Holistic marketing concept :

The holistic marketing concept is based on the development , design and implementation of
marketing programs, processes and activities that recognizes their breadth and
interdependencies . Holistic marketing recognizes that “everything matters” in marketing -
and that a broad , integrated perspective is often necessary.

Thus holistic marketing is the approach that attempts to recognize and reconcile the scope
and complexities of marketing activities.

Senior Management Product and Services

Marketing other

Department department communication Channels

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 IInterin
Internal Integrated

Marketing Marketing

Holistic
Marketin Relationship
Performance g

Marketing marketing

Sales Consumers Partners

Revenue Ethics Legal Community Channels

Brand & Environment

Customer equity

Fig11 : Holistic Marketing Dimensions.

Four Ps of Marketing Mix :

Marketing activities come in all forms. Mc Carthy classified these activities as marketing –
mix tools of four broad kinds, which he called the Four Ps of Marketing.
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These are:

1) Product : includes product quality , design,

Features, brand name, packaging, sizes,

Services, warranties and returns.

2) Price : Includes list price , discounts ,

3) allowances , payment period and credit terms.

4) Place : covers channels , coverage , assortments ,

Fig12 : Four Ps of the
locations , inventory and transport. marketing mix
5) Promotion: includes sales promotion ,

advertising , sales force , public relations and direct marketing.

The Different Marketing Functions :

 Buying
 Selling
 Transporting
 Storing
 Grading
 Financing
 Risk taking
 Market information

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 I went through lots of activities during my project days and among all these are written over
here. These all functions actually contribute collectively to the basic importance of the
marketing process to every organization.

Importance of Marketing :

There is several importance of marketing. Actually all the results can not be measured
directly but we can assume those results like,

 Marketing helps to aware the customers about the products, brand, store and so on.
 It helps to motivate the staffs to some extent.
 It generates the footfall and converts shoppers into
buyers.
Basically marketing is a set of activities of creating,
communicating and offering the values of products to
the customers. Value of products means the capability
of a product to satisfy the needs and wants of the
customers completely. We do marketing promotions for
a store or for a brand for the awareness of the
customers.

Analysis of interdependence of retailing and marketing over each

other :

RETAIL consists of the sale of goods or merchandise

from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or
individual lots for direct
Fig 13
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consumption by the purchaser. Retailing may also include subordinate services such as
delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods
or products in large quantities from manufacturers or importers, either directly or through a
wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often
called shops or stores. The term "retailer" is also applied where a service provider services
the needs of a large number of individuals, such as a public utility, like electric power.

MARKETING on the other hand is the process of performing market research, selling
products and/or services to customers and promoting them via advertising to further enhance
sales. It generates the strategy that underlies sales techniques, business communication, and
business developments. It is an integrated process through which companies build strong
customer relationships and create value for their customers and for themselves. Marketing is
used to identify the customer, to satisfy the customer, and to keep the customer.

Both Retail and marketing are inter-related and non of them can be overemphasized or ,
underestimated in order to gain market share or in making the business more profitable. If we
try to ignore any of the two then other will not remain productive for the Marketer.

Retail decisions are driven by what the shoppers’ need and want and we all know need and
want are the two important bases for carrying out marketing. Marketers try to know the
needs of the consumers and prospects and then accordingly make plan to market their
products.

Next , customer satisfaction is the main motto of marketing and retailing is also about
satisfying the customers to the full so that they will go for purchase again.Customer

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satisfaction arise if the customers’ demand and what he/she think of the product or, service
matches the service provided by the marketer.

Market research is being conducted to know the need , want , desire, taste, and preferences
of the consumers and then accordingly the product is being developed.

Successful marketing requires companies to have capabilities such as understanding

customer value ,customer delivery and sustaining customer value and thus brand building is
essential for successful marketing. This can be achieved by providing what the customers
want and this can be achieved by strategic planning. Strategic planning is the central
instrument for directing and coordinating market effort. In retailing also, strategic planning is
needed to fulfill the needs and wants of customers and then acting accordingly.

Customer feedback is of utmost importance to know what customers think of the product and
what he gets . This helps in overcoming the drawback if any in the marketing process and
leads to customer satisfaction.

The four Ps of marketing mix plays vital role in Retailing

The Products available at retail stores are of high quality ; they are designed keeping in view
, the demand of customers , the market trend, the target market , need of various customer
groups .The retailers product assortment must match the target market’s shopping
expectations and further retailers have to develop product differentiation strategy to exist in
the market and to further expand.

Price is the Key positioning factor in retailing and must be decided in relation to the target
market .They should also pay attention to pricing tactics. Research has shown that
supermarket chains practicing everyday low pricing can be more profitable than those
practicing hi – lo pricing but only in certain circumstances.

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The three Keys to successful retailing are “location , location and location” . Retailers
exercise a great care in selecting regions of country in which to open outlet , then particular
cities and then particular site .

Retailers must decide on the most advantageous locations for their outlet for which they have
to conduct market survey.

Various marketing Promotional tools such as advertising , public relation, sales promotion,

Etc are used for the promotion of retailing.

Further marketing plays a key role in managing various activities of retailing and on the
reverse , retailing is one of the best technique for distribution to the ultimate consumers in the
most convenient way,

Thus , marketing and retailing are inseparable and both of them are of equal importance and
dependent over each other. In recent times , the whole concept of retailing has been seeing a
drastic change in almost every aspect. There are various techniques of doing successful
marketing. And everyday some new one are being discovered by the marketers because in
this era of global economy , marketers have to face competition not only from the
competitors of the home country but also from foreign based companies , multinational
companies , transnational companies and MNCs. And further more the customers and the
prospects have become more aware about their needs and wants and before going to buy
something they go for gathering complete details related to various alternatives through
various media available viz. word of mouth , advertising , public relations , from news
papers and magazines , journals and various reports , and last but not the least the internet
which has become the most effective tool for gathering information of any kind related to any
thing , any where and any time . thus for marketers it has become a big deal to satisfy the
consumer demends to the full extent and to give them full satisfaction. And in order to
achieve that marketers have to take care of avery minute aspect related to marketing of
products and services and and this is done through various techniques by the marketers . The
main motto of marketers is to gain profit keeping in view the consumer satisfaction of the
present consumers, knowing the needs of prospects and and changing them into consumers
and also giving after sales services. All these things are to be kept in mind while marketing.
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Further the convenience and cost are the major factors deriving consumer satisfaction. The
mindsets of the Indian consumer is changing dramatically, with their focus shifting from low
price to convenience, value and a superior shopping experiencebecause with change of time,
the structure of families has been changing at a fast rate and the metropolitan culture is
becoming more prominent, nuclear families have become more common and joint families
are collapsing; women have started earning , they have to play multiple roles at the same
time, they have to work in the office , take care of the home and children and also the social
responsibilities. This has created scarcity of time thus they prefer to purchse at thos places
where they can get all the household items at the same place and it helps in saving time.
Money has not remain the main priority these days because both the spouse are earning and
thus the main thing is saving of time .

Here retail chains come as a solution to both the consumers and the marketers , consumers
get all the things at one place at convenient rate and with less effort while marketers also face
less problems because of saving of cost of delivery at small shops and there is less westage of
products. In retail store , various offers are being given on various occasions and this acts as a
catalyst to increase the sales and thus leads to more profit gain to the marketers.

In various retail stores catalogues are available to display the features of the products and
sales people are there to help the customrs to know about the products which make the
purchase more convenient for the new users . further for success of retailing , it is essential
to keep in mind people’s purchasing power and and willingness to spend which can be made
available to the retailers through marketing research. Now- a- days various innovative
marketing tolls are being adopted by the retailers. The rapid adoption and evolution of social
media networking sites such as Facebook nad twitter has become so important in terms of
influencing on consumer behavior and purchasing habits that the retail industry has started
paying attention. A large proportion of internet users agree that customer rating and reviews
help them to decide whether or not to purchase the product / service. Therefore retailers need
to adopt social media marketing practices on a wide spectrum. Further m – commerce can
also prove to be more beneficial for retailers because Indiahas second largest population of
the world who are connected through mobile .

A successful retail organization understands their market, their customers, and the
importance of strategic location. Because competition in the retail industry can be fierce,
such organizations need the best micromarketing tools available to analyze where to place
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new stores, establish customer profiles, and determine best marketing practices in order to
find new customers. Thus for a retailer to be successful he has to take care of various
aspects of marketing and act in accordance with that .

Retailing is an important part of a successful marketing function in recent time because the
customer taste and preferences are changing rapidly in present time and to target them
successfully and according to what they need and desire and then to fulfill their needs is not
an easy task . a single product has several alternatives and every one is claiming to be best
but can not suit to all customers . today customers want variety and they are not ready to
compromise with what they expect from the marketers for a service or a product. They are
ready to spend money for getting the best and to satisfy all the sections of the society and the
consumers according to their need , retailing is the best option because it gives customers
several alternatives of the same product and thus enable them to decide what they should go
for an the basis of their personal analysis of the product with the help of the retailer and thus
they feel satisfied with what they have purchased and consumer satisfaction is the key to
success for marketing because it helps in building brand image for the company and to make
the consumers brand loyal. Further adding to the benefit , products and services are available
at a cheaper rate at the retail stores and thus it is easier for even lower income group to go
for shopping their and experiment with the products of their desire and this in turn helps in
changing the prospects in to future customers which prove to be profitable for the retailers
and the marketers.

Even the newcomers in the market can get the help in launching their products in the market
through retail stores . retailers can manufacture and sell thei products and services without
paying extra money to the agencies for marketing, advertisement and sales promotion of the
products. The same functions are done in the retail stores through demos and sales
representatives present in the store. Customers are positively motivated through the various
offers given by the retailers at several occasions and also giving additional discount to
special category of the customers which make them buy at the stores rather than going any
where and also helps in brand building.

All these features of retailing clearly indicates that marketing can not without retailing in the
present era and the future is more promising than the present and at the same point of time
retailers can’t achieve success in their business if they will avoid the importance of

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marketing. Both of these two are closely related to each other and non of them can be
achieved in full on avoiding the importance of the other.

QUESTIONNAIRE FOR CUTOMER FEEDBACK DATA:

On 9th anniversary of big bazaar ------

1) Are you aware about what celebration is happening in big bazaar.(factor1)

2) Where did you come to know about the Kolkata anniversary?(a)tv (b)radio (c)store
(d)advertisement (e) friend (g)neighbor (h)outdoor

3) Did you find any exciting activities in the store(factor2)

4) Are you aware what big bazaar is offering in its anniversary? (a)lottery (b)money
(c)back offer (d)scratch card

5) Did you like the various in store offers?(factor4)

6) Any changes or improvement you would like?(factor5)

7) What you did not like?

FROM THE EXCEL SHEET

FACTOR 1

Awareness about the celebration…

Respon implicati Freque

se on ncy
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Aware Yes 237

Not No 241
aware

FACTOR2

Did you find any exciting activities in the store

Respo Implicat Frequen

nse ion cy

Aware yes 149

Not No 229
aware

FACTOR3

Are you aware about money back policy?

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Response Implication Frequency

No No 155
Response Feedback
Aware Yes 248

Not No 75
aware

FACTOR4

Did you like various offers?

Response Implication Frequency

Agreed Yes 201

Not No 185
agreed

No No 92
Response Feedback

FACTOR5

Any changes or improvement

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Response Implication Frequency

agreed Yes 140

Not No 230
agreed
No No 92
Response Feedback

FACTS-

The sample size of this survey is 478, the above data are taken from the main excel sheet.
Through big bazaar wants to know about their celebrations, offers, improvement if any
according to the customer and at anniversary time the offers which are given ,satisfied then
or not.

CINCLUSION-

From the above data I think customer are satisfied in every aspects but they want some
improvement like in quality of items , more csd counters etc.in awreness about the
celebration the media enrichment is not up to mark so if I have to enrich my message to
customer then store is the main media .as we know customers desires are always high that I
also expect.

BIBLIOGRAPHY

 Books Consulted :

Retailing Management – Swapna Pradhan

Marketing Management – Philip Kotler and Kevin Lane Kotler

 Various Magazines and journals

 News papers:

Times of India

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 Economic Times

 Websites :

www.futuregroup.in

www.furutebazaa.com

www.Ibef.org

www.google.com

www.bing.com

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