SUMMER TRAINING PROJECT REPORT ON

COMPETITIVE ANALYSIS OF COLGATE AND PROBLEM OF VENDORS REGARDING DELIVERY OF GOODS

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF POST GRADUATION DIPLOMA IN MANAGEMENT (MARKETING)
UNDER THE GUIDANCE OF: UNDER THE SUPERVISION OF:

Mrs. Nidhi Natrajan

Mr. Yogesh Rai SUBMITTED BY: Ankit Arora

Enrollment No: 10PGDM-M007 PGDM 2010-12

GALGOTIAS BUSINESS SCHOOL

APPROVED BY AICTE, M N STRY OF HRD, GOVT. OF IND A) 1, KNOWLEDGE PARK, PHASE II, GREATER NO DA. (U.P.)
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Certificate

CERTIFICATE This is to certify that the project work done on Competitive analysis of colgate and Problems of vendor regarding delivery of goods is a bonafide work carried out by Mr. ANKIT ARORA under my supervision and guidance. The project report is submitted towards the partial fulfillment of 2-year, full time Post Graduate Diploma in Management.

This work has not been submitted anywhere else for any other degree/ diploma. The original work was carried during April 15,2011 to June 15,2011 in Big Bazaar (Future Group).

Prof. Nidhi Natrajan Date:

ACKNOWLEDGEMENT On completion of my project, I would like to extend my thanks to Dr. Renu Luthra (Director of Galgotias Business School) and Prof. Nidhi Natrajan (Faculty of Galgotias Business School) who spared their time for me from their busy schedule to light and guide my way in darkness infect, she is the cause of successful completion of my work. I also express gratitude all the faculty members, who with valuable guidance always proved very profitable and made my effort successful.

I am thankful to BIG BAZAAR, for allowing me to undergo the study of Competitive analysis of Colgate and problem of vendors regarding delivery of goods in the Big Bazaar as a part of my summer training for the partial fulfillment of requirement of my PGDM course. It enables me to see the practical aspect of management, which will help me in long run. I take this opportunity express my deep sense of gratitude to Mr. Manav Thakur (Store manager), Mr. Pallav Dubey (H.R), Mr.Yogesh Rai (Sr. warehouse Executive) and Mr. Radhey Mohan Sharma (warehouse Executive) for having given his kind consent to undergo project at Big Bazaar. I cannot fail to give my cordial thanks to all the staff of Big Bazaar for making the atmosphere very pleasant and helpful during my project Work. I am also deeply indebted to my parents and my friends whose valuable help always proved worthy in completion of my project.

Ankit Arora
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Declaration

I, Ankit Arora, Roll no-10PGDM-M007, student of PGDM the

of

Galgotias Business School,,Greater Noida , hereby declare that project report on Competitive analysis of Colgate and problem of vendors regarding delivery of goods at Big Bazaar (Future Group) is an original and authenticated work done by me. I further declare that it has not been submitted else where by any other person in any of the institutes for the award of any degree or diploma.

(ANKIT ARORA) Date:

PREFACE
At GALGOTIAS BUSINESS SCHOOL, the PGDM programme has been designed keeping in mind require of company in the world at large. We, the students of of GALGOTIAS BUSINESS SCHOOL are required to undergo 2 months company project study after completing 3th trimester. Where the students have to prepare a project report during a particular field/area of specialization. Then, the students have to give presentation of their two months training project report to the panel of faculty. The objective of the training module is to help the students to understand the business environment well and equip us with the work culture of companies in the present era. I ANKIT ARORA have done my two months (15th April to 15th June 2011) of project training on Competitive analysis of colgate and problem of vendors regarding delivery of goods During my training with BIG BAZAAR, Noida, I was able to enhance my knowledge to a large extent in the field of operations as well as marketing.

CONTENTS
Chapter No. 1. Chapter-I Topic Executive Summary Introduction  Establishment, vision, mission, aim, policies  Objective of study  Hypothesis Company Profile  Introduction  Conglomerate  Core Values  Timeline  Board of Directors  SWOT analysis  7 Ps of marketing  Future expectations Research Methodology  Objective of research  Research design  Data collection  Sample design  Limitation of research Comparative study  Findings  Data Interpretation  Graphical Presentation  Customer Feedback  Suggestions  Recommendations Conclusion and Suggestion  Appendix A- Questionnaires of customers  Appendix - B- Questionnaires for customer satisfaction  Appendix - C- Questionnaires for vendors  Appendix - D- Questionnaires for receiver Appendices & Bibliography Page No. 8-12

13-20

Chapter-II

21-64

Chapter- III

65-66

Chapter-IV

67-88

Chapter-V

89-93

Chapter-VI

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Big Bazaar

Type Industry Founded Headquarters Products Parent Website

Subsidiary Retailing 2001 Jogeshwari, Mumbai, India Department store Future Group Bigbazaar.com

Executive Summary
Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are fighting to win the hearts of customer who is God said by the business tycoons. There is always a first mover advantage in an upcoming sector. In India, that advantage goes to BIG BAZAAR. It has brought about many changes in the buying habits of people. It has created formats, which provide all items under one roof at low rates, or so it claims. In this project, we will study the perception of consumers regarding the success of Big Bazaar. The research titled To study the competitive analysis of colgate at Big Bazaar helps to understand the contributing elements which has won the hearts of consumers and led to the success if Big Bazaar stores. The study of perception, attitude and satisfaction level of those people is taken into consideration. Retailing consists of all activities involved in selling goods and services to consumers for their personal, family or household use. It covers sales of goods ranging from automobiles to apparel and food products and services ranging from hair cutting to air travel and computer education. Introduction for the reason of project: The project titled Competitive analysis of colgate and problem of vendors regarding delivery of goods is basically the study of oral care preference that how customer perceive the brand in oral care section and this study also includes the problem of vendors in Big Bazaar (Noida). My study also includes feedback from customers regarding store of big-bazaar and suggestions to improve the effectiveness of store. Sales of goods to intermediaries who resell to retailers or sales to manufacturers are not considered a retail activity. Retailing can be examined from many perspectives. A manufacturer of white goods like washing machine and refrigerators has many options to reach out to consumers. It can sell through dealers, the company showrooms (Sony World, Videocon Plaza) or hypermarkets (Big Bazaar). The retail sector in India is highly fragmented with organized retail contributing to only 2% of total retail sales. The retail sector in developed countries was also highly fragmented at the beginning of the last century but the emergence of large chains like Wal Mart, Sears, and Mc Donalds led to rapid growth of organized retail and growing consolidation of the retail industry in the developed countries. Today, in India we see a rise in the purchasing power and growth of a middle class which follows the western lifestyle. Hence, conditions are conducive for the rapid growth of organized retail in India. Organized retail is growing rapidly and we see the emergence of large organized retail chains like Shoppers Stop, LifeStyle and Westside. 9

We also find retail malls mushrooming all over the country. The opportunities in retail industry in India will increase since Indian retailing is on the threshold of a major change. However, with the rapid growth in organized retail and increased emphasis of manufacturers on understanding sales at the retail level, the study of retailing has become increasingly relevant. Research Design: Taking the research objectives into account the research is exploratory and descriptive in nature. collection method and Exploratory research helps determine the best research design, data selection of subjects. Descriptive research, also known

as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how... Sample size: 160 questionnaires (100 by customers, 30 from vendors and 30 from receivers) Sampling technique: Convinient Sampling

FINDINGS:
 Related to oral care preference study:  There are 9 brands of oral-care.  Colgate is offering 11 brands- Max Fresh, Cibacca, Max white, Total, Herbal, Bubble fruit etc.  Customers are price conscious according to their rankings.  Colgate is the leader in the market.  70% of customers rush to big bazaar on weekly basis.  Colgate provides more brands and offers  Colgate is more reliable than other brands  Colgate provides more freshness and smell.  30% customers are influenced by advertisement  Close-up and pepsodent is strong competitor of colgate.  Colgate offers more than other brands.

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 Related to customer satisfaction:  Customers do not like music played at Big-Bazaar store.  Customers are happy about hygiene environment of big bazaar.  Majority of customers are facing billing problems such as wrong items in bill, wrong billing amount.  Customers have to wait in long queues for billing  Free gifts are not available at CSD.  Customers are not happy with staffs response to their queries.  Customers are not happy with technical support .  Customers are satisfied with range, prices and availability of products.  Customers are not happy with the quality of products  Therefore, customers are not happy with overall management  Related to vendors:  80% of vendors approach twice a week to deliver goods.  Majority of vendors carry 5-10 bills at one time  Average bills carried by vendors in a month is 400 bills  Average amount of bills in a month is about Rs. 1 crores.  Average quantity rejected in a month is 1200 pieces.  Average amount of quantity rejected in a month is Rs. 300000  Time taken for receiving is More than 2 hours.  Credit period allowed by vendors is 15-30 days.  Payment is not done within specified period  Payment is not done of whole amount.  Major vendors are satisfied with the quality of service they get in store.  Major vendors are JMD Enterprises, Mukta Enterprises, Pharmage India, Gapl Agencies etc.

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 Related to receiver:  Damaged goods is a major cause for returning of goods.  Damage problem is mainly with Mukta enterprises, GAPL Agencies, Brijnandan Enterprises and Symbol Marketing.  Immediate delivery of goods is never done by Mukta Enterprises.  Pooja Agencies, Jade Farms, Pharmage India never deliver goods within specified time on assigned days.  Goods with approaching expiry date is an issue with Kegg Farms, Grow Well Marketing, AD store etc.  Wrong MRP is a problem associated with Aggarwal associates, Grow well marketing.

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1.1 Introduction to the organization:

a) ESTABLISHMENT OF THE COMPANY Future Group India was established in 1994 by Kishore Biyani with a vision to provide diverse services in Indian and Global markets. The business areas of Future Group cover BPO (Business Process Outsourcing), New Media, Security Management, and Construction. Through their strategic investment and services, the future of Future Group shows a rising star in the business sky of India. Future the word that signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.

b) GROUP VISION
Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.

c) GROUP MISSION Future Group shares the vision and belief that their customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. y They will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments - for classes and for masses. y y y They shall infuse Indian brands with confidence and renewed ambition. They shall be efficient, cost- conscious and committed to quality in whatever they do. They shall ensure that their positive attitude, sincerity, humility and united determination shall be the driving force to make them successful.

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d) AIM:BIG BAZAAR - FOR THE GREAT INDIAN MIDDLE CLASS

Kishore Biyani led the companys venture into organized retail with the opening up of the Big Bazaar in the year 2001. It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class. It was started as a hypermarket format in Mumbai with approx. 50,000 sqft of space. Its values and missions are to be the best in Value Retailing by providing the cheapest prices and hence goes the tag-line

Is se sasta aur achcha kahin nahin

It sells variety of merchandise at affordable rates, the prices of which it claims are lowest in the city. Usually the items are clubbed together for offers as on the lines of Wal-mart and Carrefour and it also offers weekend discounts. It currently operates out of more than 100 stores and top 25 stores register a cumulative footfall of 30 lakh a month on an average.

e) Policies of BIG BAZAAR:

Policies related to customers: y y y y y y y y Issuing free gifts to customers Wednesday bazaar- sabse sasta din Issuing gift vouchers to customers Issuing coupons such as sadexo, diwali coupon etc. Organising The Great India festival Promoting sales by giving gifts on sales exceeding certain amount Customer service desk for solving any complaints of customers Feedback form for suggestions of customers. 14

Policies related to employees: y y Performance Management system- Karma Phala scheme for starring employees Benefits and entitlements :

 Car Hire  Mobile Phone  Travel  Visiting Cards  Salary Advance  Shishya  Seekho  Special Privilege Scheme  Group Insurance  Life Security Plan  Transfer  Relocation  The Future Outpost  Health Check Up  Mediclaim  Long Service Awards  Leave Travel Assistance  Laptop and Data Card 15

f) Factors that Shaped Big Bazaar During its Life Cycle Life Cycle of Big Bazaar

The Big Bazaar brand name is in its growth stage. Pantaloon Group faced various small and large scales troubles in the introductory stage of the brand. Present years are the high growth years in retail sphere as market has high potential to sustain growth. The sales are increasing, more and more Big Bazaars are coming to market, foreign players are entering into retail sector, and pie of organized retail is increasing in retail sector. The factors that shaped the brand during its life cycle are: Influence of Easyday and other stores such as Reliance fresh on sales of Big Bazaar: Many people think that Big Bazaar was inspired by Wall-Mart but the truth is that Kishore Biyani and his team members are neither inspired by US ways of doing retailing nor they have been to US much. The credit for foundation and inspiration goes to Easyday store, a joint venture of bharti- walmart whose philosophy was - low margin, high turnover. In that store, food, groceries, clothes, everything had a separate section. These stores are the template for Big Bazaar.

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Observing Customers Regularly

Regular customer feedback is also an influential factor for the success of Big Bazaar. The Big Bazaar has a separate team that looks for customers purchasing pattern and how they like or dislike products, how they approach particular products. For example, unlike other stores where the most expensive and catchy item is placed at the front display, Big Bazaar places the "Value for Money" items at check-out points.

Imbibed Entrepreneurial Spirit in Big Bazaar

Decision making power is given to every level of employees at Big Bazaar. Kishore Biyani has given risk-taking power, which led to exposure of entrepreneurial spirit in every employee. Everybody in Big Bazaar operates with speed and confidence when it comes to decision making.

Building on Core Values

Core values of Indian-ness, valuing and nurturing relationships, and simplicity shaped the brand. Kishore Biyani always believes in long-term relationships, with customers, suppliers and employees. Once thinking about offering gifts to employees close to Diwali, Kishore Biyani suggested giving them wall-paints to keep their house clean. The paint is used in Indian culture to keep house clean and brings freshness. The motive behind this was to keep everything clean and bring freshness in Big Bazaar.

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g)

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APPARELS Denims & T-Shirts Fabric & Cut piece Formal Wear Casual Wear Party Wear Ethnic Wear Accessories Under Garments Night Wear Dress Materials Sarees

FOOD Staples Ready to eat Ready to cook International Food Spices Imported Bazaar Tea & Coffee

FARM PRODUCT Fruits Vegetables Imported Fruits Dairy Products

CHILL STATION Soft Drinks Packaged Juices Milk Items Frozen Foods Ice Creams

HOME & PERSONAL CARE Shampoos Detergents Soaps Liquid wash Creams Deodorants Home cleaners Utensils Plastics Crockery Sundries

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1.2 Objective of the study:

y y y y y y y To study the competitive analysis of colgate To know the process of stock inwarding and outwarding To study the scheduling of vendors and to know the problems of vendors To understand the working of the various departments. To enable us to gain an insight into the corporate world. To know warehouse management To learn receiving process

1.3 Hypotheses:
"Competitive analysis of Colgate" Null hypothesis: Demand of colgate is same compared to other brands Alternate hypothesis: Demand of colgate is different from other brands.

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II. LITERATURE VIEW

2.1

COMPANY INTRODUCTION

Future Group
Future Group is Indias leading business group that caters to the entire Indian consumption space. Led by Mr. Kishore Biyani, the Future Group operates through six verticals: operates through six verticals: Retail, Capital, Brands, Space, Media and Logistics. Apart from Pantaloon Retail, the groups presence in the retail space is complemented by group companies, Indus League Clothing, which owns leading apparel brands like Indigo Nation, Scullers and Urban Yoga, and Galaxy Entertainment Limited that operates Bolwing Co, Sports Bar and Brew Bar. The groups joint venture partners include French retailer ETAM group, US-based stationary products retailer, Staples and UK-based Lee Cooper. Group Company, Planet Retail, owns and operates the franchisee of international brands like Marks & Spencer, Next, Debenhams and Guess in India. The groups Indian joint venture partners include, Manipal Healthcare, Talwalkars, Blue Foods and Liberty Shoes. Future Capital Holdings, the groups financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The group has launched a consumer credit and financial supermarket format, Future Money and soon plans to offer insurance products through a joint venture with Italian insurance major, Generali.

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The group is currently developing over 50 malls and consumption centers across the country and has formed a joint venture company focusing on mall management with Singapore-based CapitaLand, one of Asias largest property companies Future Groups vision is to, deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner. The group considers Indian-ness as a core value and its corporate credo is - Rewrite rules, Retain values.Future the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve. The motto of Future Group, to not to wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, it will effect socio-economic development for their customers, employees, shareholders, associates and partners. Their customers will not just get what they need, but also get them where, how and when they need. They are not just posting satisfactory results, they are writing success stories. The Future Group will invest Rs 600 crore over 18 months to open 60-odd Big Bazaar stores with a floor space between 40,000 sq ft and 60,000 sq ft, said Rakesh Biyani, director and CEO, Retail, Future Group at the launch of new 70,000-sq ft family store format Big Bazaar at Express avenue in Chennai. FutureBazaar.com is India's favorite online shopping site. Future Bazaar is the online venture of the Future Group, owner of India's largest retail brands Big Bazaar, Pantaloons, Central and eZone. Future Bazaar sells a wide range of products like Fashion including Men's apparel, Women's apparel, Mobiles, Mobile accessories, Electronics like LCD TVs, Flat TVs, DVD players, Home Theatres, iPods, MP3 players, MP4 players, Digital Cameras, Video Cameras, Music systems, Home appliances, Kitchen Appliances, Dreamline Kitchen ware, Hindi movies, English movies, DVDs, VCD, Gold jewellery, Diamond jewelry, Fiction Books, Non-Fiction Books, Car Acccessories and others. Big Bazaar sales such as Sabse Sasta 3 Din and Mahabachat are also available for shopping online at Future Bazaar. Whether you want to buy mobiles or buy electronics from Future Bazaar, you can do so with complete confidence as Future Bazaar only sells genuine products with manufacturers' warranty. 22

From its beginning in 1987, they have today evolved as one of the leading retailer and are among the pioneers in setting up a nation- wide chain of large format stores in India. They believe that the various initiatives taken by them in the standards of retail in the country. They believe their focus on customers supported by systems and processes and a committed work force are the key factors that have contributed to our success and will help us scale up as we embark on our strategic growth plan. Pantaloons is the first organized departmental store format targeting the Indian middle class and upper class customers across age and gender. Future Group is Indias leading business group that caters to the entire Indian consumption space. Led by Mr. Kishore Biyani, the Future Group operates through six verticals: Retail, Capital, Brands, Space, Media and Logistics:

 Future Retail (encompassing all lines of retail business).  Future Capital (financial products and services).  Future Brands (all brands owned or managed by group companies).  Future Space (management of retail real estate).  Future Logistics (management of supply chain and distribution).  Future Media (development and management of retail media. The groups flagship company, Pantaloon Retail (India) Limited operates over 5 million square feet through 400 stores in 40 cities. Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, EZone, Depot, Health & Beauty Malls and online retail format, futurebazaar.com. Future Groups vision is to, deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner. The group considers Indian-ness as a core value and its corporate credo is - Rewrite rules, Retain values.

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2.2

Future Group India

Future Group India was established in 1994 with a vision to provide diverse services in

Indian and Global markets. The business areas of Future Group cover BPO (Business Process Outsourcing), New Media, Security Management, and Construction. Through their strategic investment and services, the future of Future Group shows a rising star in the business sky of India. Future the word that signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve. They, in Future Group, will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our customers, employees, shareholders, associates and partners. Their customers will not just get what they need, but also get them where, how and when they need. They will not just post satisfactory results, They will write success stories. They will not just operate efficiently in the Indian economy, we will evolve it. They will not just spot trends; They will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow.

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2.3

FUTURE RETAIL

The retails businesses of Future Group in India are divided into three main categories:

Pantaloon Retail India Limited

The leading retail formats under this include:
 Pantaloons Stores  Big Bazaar  Central  Food Bazaar  Home Town  E Zone  Depot  Health & Beauty Malls  Online retail through futurebazaar.com

Joint Ventures with International Brands

 Indus League Clothing that owns leading apparel brands like Indigo Nation,

Scullers and Urban Yoga

 French retailer ETAM group, US-based stationary products retailer, Staples and

UK-based Lee Cooper.

 Franchisee of international brands like Marks & Spencer, Next, Debenhams and

Guess in India

Indian Joint Venture Partners

y y y

Manipal Healthcare Talwalkar's Blue Foods

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Future Capital Holdings

The financial services of Future Group are taken care by Future Capital Holdings. These include:
y

Asset Management and consumer credit are the prime focus financial services. Around 1 billion USD have been invested in retail real estate and consumer brands outlets and hotels. Future Money - It is a financial supermarket format providing consumer credit Joint venture with Italian insurance major Genaral Insurance for providing general insurance services. Venture Capital Funds and Private Equity Funds through kshitijfund.com

y y

BPO (BUSINESS PROCESS OUTSOURCING)

Future Group has made major investments in BPO industry as a venture into the Information Technology Enabled services (ITES) industry. Future Group has subsidiaries offering IT based solutions. These include:
y y y

Language Services Software Development Content Engineering

New Media
Future Group has invested in digital media and computer technology for creating innovative and interactive multimedia presentations. These include:
y y y y

Multimedia Production Broadcasting Publishing Designing

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Security Management

Future Group is considered as a reliable tailor-made business and security services provider. They develop their own software and machines for security services. These include:
y y y y

Access Control Systems Time Attendance Systems CCTV Alarm Management Systems

CONSTRUCTION
Future Group bring to you're their past experience in quality construction for building and renovating buildings for leasing to business. Future Group is also involved in the designing, financing and legal considerations of the project undertaken. The construction activities of Future Group in India include:
y y

Leasing Landscaping

The latest business activity of Future Group is an investment of Rs. 140 crores in the next three years in cricket-related marketing. The CEO of Future Group Mr. Kishore Biyani has planned out association with cricket and to encash the popularity of cricket in India and globally. Future Group has also organized one-day international cricket series between India and Australia called "The Future Cup". For any further info about the careers and recruitment procedure at Future Group and details on the annual report or history of the company also refer the official website of Future Group India.

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2.4

FUTURE GROUP CONGLOMERATE

Future Group has six business pillars: Future Retail

All the retail lines of business like food fashion and home will come under this vertical.

Future Brand
Custodian of all the present and future brands that are either developed or acquired by the group.

Future Space
Will have a presence in property and mall management.

Future Capital
Will provide consumer credit and micro finance services, including marketing of MFs and insurance policies, and management of real estate and consumer fund.

Future Media
Will focus on revenue generation through effective selling of retail media spaces.

Future Logistic
To drive efficiencies across businesses via better storage and distribution.

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2.5

CORE VALUES: Indian ness: Confidence in themselves.  Leadership: To be a leader, both in thought and business.  Respect and Humility: To respect every individual and be humble in their 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 and Positivity: Simplicity and positivity in their 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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2.6 COMPANY TIMELINE

Major Milestones 1987 1991 1992 1994 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, Indias first formal trouser brand. Launch of BARE, the Indian jeans brand. Initial public offer (IPO) was made in the month of May. The Pantaloon Shoppe exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation. John Miller formal shirt brand launched. Pantaloons Indias family store launched in Kolkata. Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain launched. Food Bazaar, the supermarket chain is launched. Central Shop, Eat, Celebrate In The Heart Of Our City - Indias first seamless mall is launched in Bangalore. Fashion Station the popular fashion chain is launched

1995 1997 2001 2002 2004 2005

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

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2006

Future Capital Holdings, the companys financial is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Plans forays into retailing of consumer finance products. Home Town, a home building and improvement products retail chain is launched along with consumer durables format, Ezone and furniture chain, Furniture Bazaar. Future Group enters into joint venture agreements to launch insurance products with Italian insurance major, Generali. Forms joint ventures with French retailer, ETAM Group and US office stationery retailer, Staples. Future Group crosses $1 billion turnover mark. Specialised companies in retail media, logistics, IPR and brand development and retail-led technology services become operational. Pantaloon Retail wins the International Retailer of the Year at US-based National Retail Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona. Futurebazaar.com becomes Indias most popular shopping portal. Future Capital Holdings becomes the second group company to make a successful Initial Public Offering in the Indian capital markets. Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a hypermarket format anywhere in the world. Total operational retail space crosses 10 million square feet mark. Future Group acquires rural retail chain, Aadhar present in 65 rural locations.

2007

2008

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2.7

BOARD OF DIRECTORS

Mr. Kishore Biyani, Managing Director

Mr. Kishore Biyani is the Chief Executive Officer of Future Group and Managing Director, Pantaloon Retail India Ltd.He started off his entrepreneurial career with manufacturing and distribution of branded mens wear products .In 1997 Kishore Biyani led the groups foray into modern retail with the opening up of the first department store Pantaloons in Kolkata.In 2001 he created and evolved a pan-Indian, class-less model Big Bazaar a hyper market chain followed by Food Bazaar, a super market chain which blended the look ,touch and feel of Indian Bazaars with western hygiene. This was followed by Central, a first of its kind seamless mall located in the heart of major Indian cities. As the CEO of Future Group, Kishore Biyani leads the groups presence across the Indian consumption space. Kishore Biyani prides in being an Indian. Kishore Biyani, Founder and CEO, Future group, is quite fond of number 30 or similarly sounding 13. He has set the group target of Rs 30,000 crore ($6.5 billion) in sales, from 30 million sq ft by 2013. Biyani revealed the agenda for growth of his group.

Mr. Gopikishan Biyani, Whole Time Director Gopi Kishan Biyani is Commerce graduate and has more than twenty years of experience in the Textile Business.

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Mr. Rakesh Biyani, CEO Retail Rakesh Biyani is Commerce graduate and has been actively involved in category management; retail stores operations, IT and exports. He has been instrumental in the implementation of the various new retail formats. Ved Prakash Arya, Independent Director He is an MBA from IIM- Ahmedabad, AMP from Harvard University and ESSEC-France. His previous assignments were CEO - Globus, H&R Johnson, Asia net Satellite Communications, Hathway Investments. Mr. Shailesh Haribhakti, Independent Director Shailesh Haribhakti is a Chartered Accountant, Cost Accountant, and a Certified Internal Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered Accountants and past president of Indian merchant Chambers. He is on the Board of several Public Limited Companies, including Indian Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999. Mr. S.Doreswamy, Independent Director S.Doreswamy is a former Chairman and Managing Director of Central Bank of India and serves on the Board of DSP Merrill Lynch Trustee and Co and Ceat Ltd. among others. Dr. D.O.Koshy, Independent Director Dr. D.O.Koshy holds a doctorate from IIT, Delhi and is the Director of National Institute of Design (NID), Ahmedabad .HE was over 24 year rich experience in the textiles and garment industry and was instrumental in setting up of NIFT centers in Delhi, Chennai and Bangalore. He is renowned consultant specializing in international marketing and apparel retail management. Ms. Anju Poddar, Independent Director Anju Poddar holds a bachelor of Engineering from university of Oklahoma and is a Director of, NIFT; Hyderabad chapter .She also serves on the board of Maharishi commerce Ltd. and Samay Books Ltd among others. 33

Ms.Bala Deshpande, Independent Director Ms.Bala Deshpande is Executive Director ICICI Venture Funds and also serves on the Boards of Deccan Aviation, Nagarjuna Construction Welspun India and Shoppers Stop Ltd among others. Mr.Anil Harish, Independent Director Anil Harish is the partner of DM Harish & Co. Associates and solicitors and LLM from university of Miami. He also serves the Board of Mahindra Gesco, Unitech, Induslnd bank and Hinduja TMT, among others.

2.8

AFFILIATE COMPANIES:

Home

Solutions

Retail

(India)

Limited

Home Solutions Retail (India) Limited (HSRIL) offers complete retailing solutions for all products and services related to home building and home improvement. The key product categories are Consumer Durable & Electronics (CDE), Furniture, Home furnishing & decor, Home improvement and Home services. HSRIL operates retail format Collection-i, Furniture Bazaar, Electronics Bazaar, Home Town and e-zone.

Future

Brands

Limited

Future Brands Limited (FBL) has been incorporated on November, 2006 and is involved in the business of creating, developing, managing, acquiring and dealing in consumer-related brands and IPRs (Intellectual Property Rights).

34

Future

Media

(India)

Limited

Future Media (India) Limited (FMIL) was incorporated as the Groups media venture, aimed at creation of media properties in the ambience of consumption and thus offers active engagement to brands and consumers. FMIL offers relevant engagement through its media properties like Visual Spaces, Print, Radio, Television and Activation.

Future

Supply

Chains

Solutions

Limited

Future Supply Chains Solutions Limited (FSCSL) has been incorporated as a separate entity and is involved in the business of providing logistics, transportation and warehousing services for all group companies and third-parties.

Future

Axiom

Telecom

Limited

Future Axiom Telecom Limited is a Joint Venture with Axiom Telecom LLC, UAE. The Company has a 50% stake in Future Axiom Telecom Limited (FATL) which is a joint venture Company with Axiom Telecom LLC, UAE. The Company would be engaged in sourcing and wholesale distribution of mobile handsets, accessories and in setting up service centres for mobile handsets in India.

Pantaloon

Food

Product

(India)

Limited

Pantaloon Food Product (India) Limited (PFPIL) was incorporated with the object of sourcing and backward integration of food business of the Company. PFPIL has sourcing and distribution bases at all key cities across the country.

Future

Knowledge

Services

Limited

Future Knowledge Services Limited (FKSL) was incorporated on January, 2007 and is engaged in the business of business process outsourcing and knowledge process outsourcing.

35

Future

Capital

Holdings

Limited

Future Capital Holdings Limited (FCH) was formed to manage the financial services business of Pantaloon Retail (India) Limited and other group entities. FCH is one of the fastest growing financial services company in India, with presence in Asset Advisory, Retail Financial Services and Proprietary Research. The company operates a consumer finance retail format, Future Money and manages assets worth over US$ 1 Billion through Indivision, Kshitij, Horizon and Future Hospitality Funds. FCH subsidiary companies include Kshitij Investment Advisory Company Ltd., Ambit Investment Advisory Company Ltd., and Indivision Investment Advisors Ltd.

Future

Generali

India

Insurance

Company

Limited

Future Generali India Insurance Company Limited (FGIICL) was incorporated on October 30, 2006 to undertake and carry on the business of general insurance. The approval for carrying on General Insurance Business has been received from the Insurance Regulatory and Development Authority of India (IRDA) on September 4, 2007.

Future

Generali

India

Life

Insurance

Company

Limited

Future Generali India Life Insurance Company Limited (FGILICL) was incorporated on October 30, 2006 to establish and conduct the business of life insurance in India, which comprises of whole life insurance, endowment insurance, double benefit and multiple benefits insurance etc. The approval for carrying on Life Insurance Business has been received from the IRDA in September, 2007.

Future bazaar India Limited: Future bazaar India Limited (FBIL) is set up as the e-Retailing arm of the Future Group for providing on-line shopping experience. Futurebazaar.com was launched on January 2, 2007, and has emerged as one of the most popular online shopping portals in India. It was awarded with the Best Indian Website award, in the shopping category, by the PC World Indian Website Awards. 36

Staples

Future

Office

Products

Private

Limited

Staples Future Office Products Private Limited (SFOPPL) was incorporated on January, 2007 and is involved in the business of dealing in all kinds of office supplies, office equipments and products. SFOPPL is a joint venture between the Company and Staples Asia Investment Limited (a subsidiary of Staples Inc USA). The companys first retail outlet opened in Bangalore in December, 2007.

2.9

AWARDS AND ACHIEVEMENTS

2009: CNBC Awaaz Consumer Awards 2009 y Most Preferred Multi Product Chain - Big Bazaar y Most Preferred Multi Brand Food & Beverage Chain - Big Bazaar Images Fashion Forum 2009 y Most Admired Fashion Group Of The Year - Future Group y Most Admired Private Label - Pantaloons, the lifestyle format y Critics Choice For Pioneering Effort In Retail Concept Creation - Central Coca-Cola Golden Spoon Awards 2009 y Most Admired Food & Grocery Retailer Of The Year y Most Admired Food Court y Most Admired Food Professional

2008: Indian Retail Forum Awards 2008 y Most Admired Retail Company of the year - Future Group y Retail Face of the Year - Kishore Biyani y Best Retailer Of The Year ( Hypermarket) - Big Bazaar Future Group was awarded the Most Admired Retail Company of the year by the Indian Retail Forum at a glittering ceremony organised in Mumbai. Mr Kishore Biyani also won Retail Face of the Year. India Retail Forum (IRF) is a platform for intellectual insights and information exchange for the retail business in the Indian subcontinent. The forum presents the business of retail in the region to a global audience, with the express aim of facilitating understanding about and encouraging investment in this massive marketplace. Big Bazaar, the value format of Future Group bagged the Best Retailer Of The Year ( Hypermarket).

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The INDIASTAR Award 2008 y Food Bazaar: Best Packaging Innovation Food Bazaar bagged the INDIASTAR Award for Best Packaging Innovation in India, for its private label brand Fresh And Pure Chakki Atta. INDIASTAR Award is a biennial event which aims to promote and encourage excellence in packaging design, innovation and technology. The contest was established in 1972 and is considered as the most popular and premier event for Indias packaging fraternity. This year there were around 357 entries and the participants had to submit a sample of their designs for selection. With this award, Pantaloon Retail (India) Limited becomes the first Indian Retailer to win the prestigious INDIASTAR Award. Retail Asia Pacific 500 Top Awards 2008 y Gold Winner -Top Retailer 2008 Asia Pacific Retail Asia Publishing Pte, the institutor of these awards, aims to set a platform that appraise, raises and recognizes the development and growth of retailing throughout the Asia Pacific region. Coca-Cola Golden Spoon Awards 2008 y Most Admired Food & Grocery Retail Visionary of the Year: Kishore Biyani y Most Admired Food & Grocery Retailer of the Year Supermarkets: Food Bazaar y Most Admired Food & Grocery Retailer of the Year - Hypermarkets: Big Bazaar y Most Admired Retailer of the Year - Dynamic Growth in Network Expansion across Food, Beverages & Grocery: Future Group y Most Admired Food & Grocery Retailer of the Year - Consumer's Choice: Big Bazaar

The Coca-Cola Golden Spoon Awards 2008, were given away for the first time as a culmination of the Food Forum India 2008 a two day convention, which saw the participation of leading brands, retailers & retail support organizations from across the globe. The awards were presented to honour enterprise, innovation and achievement in the food retailing business as a benchmark of excellence. The Reid & Taylor Awards For Retail Excellence 2008 y Retail Leadership Award: Kishore Biyani y Retail Best Employer of the Year: Future Group y Retailer of The Year: Home Products and Office Improvements: HomeTown The Reid & Taylor Awards for Retail Excellence are an important feature of the Asia Retail Congress, Asias single most important global platform to promote world-class retail practices. These awards are aimed at honouring the best, in the Asian Retail scenario. India played host to Asia Retail Congress 2008. 38

2007: Images Retail Awards Most Admired Retail Face of the Year: Kishore Biyani Most admired retailer of the year: Large format, multi product store: Big Bazaar Most admired retailer of the year: Food and Grocery: Food Bazaar Most admired retailer of the year: Home & office improvement: HomeTown Most admired Retail Company of the year: Pantaloon Retail (India) Ltd. y Images Retail Forum followed strict international benchmarks in deciding the top honours for Images Retail Awards 07, with IRIS as knowledge partner and global consulting firm AT Kearney as the Process Approver. National Retail Federation Awards International Retailer for the Year 2007 Pantaloon Retail (India) Ltd The National Retail Federation is the worlds largest retail trade association with over 1.4 million members in the US and across the world. Some of the past winners of the award include Metro AG (Germany), Carrefour (France), Zara (Spain), Boticario (Brazil) and Ito Yokado (Japan). The award was presented at the Retails Big Show held in January 2007 in New York. World Retail Congress Awards Emerging Market Retailer of the Year 2007 Pantaloon Retail (India) Ltd The inaugural World Retail Congress held in Barcelona, Spain in March 2007 attracted over one thousand retail professionals from over sixty countries. The awards were decided by a multinational Grand Jury. Winners in other categories included Inditex, Mall of Emirates, Marks & Spencer and IKEA. Hewitt Best Employers 2007 Best Employers in India (Rank 14th) Pantaloon Retail (India) Ltd Leading human resources consultancy, Hewitt Associates conducts an annual survey of the best employers in India, as part of its global initiative. It is based on CEO interview, People Practices Inventory and Employee Opinion Surveys. Pantaloon Retail became the only retailer to feature among the twenty-five best employers in India. PC World Indian Website Awards Best Indian Website In The Shopping Category Futurebazaar.com PC World, a leading consumer technology magazine selected the best Indian websites in various categories based on use of technology for delivering solutions, information being presented in an intuitive and concise manner and overall experience aided by design. Readers Digest Trusted Brands Platinum Awards Trusted Brands Platinum Award (Supermarket Category) Big Bazaar The Readers Digest awards are based on surveys done among consumers by independent research agency, Nielsen Media Research. This is the second consecutive time Big Bazaar has won this award.

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2006: Retail Asia Pacific Top 500 Awards Asia Pacific Best of the Best Retailers Pantaloon Retail (India) Ltd Best Retailer in India Pantaloon Retail (India) Ltd The Retail Asia publication in association with EuroMonitor and KPMG honours the best retailers in 14 countries across the Asia Pacific region. The awards were presented in Singapore in October, 2006. Asiamoney Awards Best Managed Company in India (Mid-cap) Pantaloon retail (India) Ltd. The Asiamoney publication conducts a poll among fund manages and investors and does a quantitative analysis of financial performance to select best managed companies in Asian countries. Ernst & Young Entrepreneur of the Year Award Ernst & Young Entrepreneur of the Year (Services) Kishore Biyani Considered to be one of the most prestigious business awards in India, a jury comprising leading names in Indian business selected the winners based on courage, creativity, passion, endurance and vision. CNBC Indian Business Leaders Awards The First Generation Entrepreneur of the Year Kishore Biyani Organized by CNBC-TV18, the twelve awardees in various categories are decided by a high profile jury, along with research partners - The University of Chicago Graduate School of Business, Development Dimensions International (DDI) and AC Neilson ORG MARG. Lakshmipat Singhania IIM Lucknow National Leadership Awards Young Business Leader Kishore Biyani The award recognizes and honors individuals who have contributed consistently to the betterment of our country through their pursuit of excellence. The awards were presented in New Delhi by the Prime Minister Dr. Manmohan Singh in December, 2006. Images Retail Awards y Best Value Retail Store Big Bazaar y Best Retail Destination Big Bazaar y Best Food & Grocery Store Food Bazaar y Retail Face of the Year Kishore Biyani The IRA awards are decided through a nationwide consumer & industry poll and nominations followed by performance assessment by team of analysts and jury. Readers Digest Awards Platinum Trusted Brand Award - Big Bazaar The Readers Digest awards are based on surveys done among consumers by independent research agency, Nielsen Media Research. CNBC Awaaz Consumer Awards

40

Most Preferred Large Food & Grocery Supermarket Big Bazaar Conducted in association with AC Nielsen-ORG Marg across 21 major cities, nearly 10,000 consumers were asked to choose their most preferred brands. Reid & Taylor Awards for Retail Excellence Retail Entrepreneur of the Year Kishore Biyani 2005: Readers Digest and Awaaz Consumer Award y Big Bazaar - Most preferred, large, Food and Grocery store Readers Digest Platinum Trusted Brand Award y Big Bazaar - Earning a trusted Place in the everyday lives of consumers Images Retail Awards 2005 y PRIL Most admired retailer of the year y Food Bazaar - Retailer of the year (food and grocery) y Big Bazaar Retailer of the year (value retailing) y Central Retail launch of the year Business Today selected PRIL among: y Top 20 companies in India to watch in 2005 y Indias most investor-friendly companies in the top 75 y Indias biggest wealth creators in the top 100 2004: Images Retail Awards 2004 y PRIL Most admired retailer of the year y Food Bazaar - Retailer of the year (food and grocery) y Big Bazaar Retailer of the year (value retailing) y Central Retail launch of the year Reid & Taylor and DLF Awards y PRIL Retailer of the year 2003: Indian Express Award y PRIL- Marketing excellence and excellence in brand building

41

2.10 BIG BAZAAR: OVERVIEW

Big Bazaar, is the chain of retail stores of the big banner Pantaloon Retail (India) Ltd., which in turn is a segment of the Kishore Biyani, regulated Future Group of Companies. Moreover the customer friendly ambiance and the organized retailing of products also makes Big Bazaar one of the successful retail companies in India. Big Bazaar is a chain of department stores in India currently with 100 outlets. It is owned by Pantaloon Retail India Ltd, Future Group. It works on the same economy model as Wal-Mart and has been successful in many Indian cities and small towns. The idea was pioneered by entrepreneur Mr. Kishore Biyani, the CEO of Future Group. Currently Big Bazaar stores are located only in India. It is the fastest growing chain of department stores and aims at having 350 stores by 2010. 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. Retail is Indias largest industry, accounting for over 10 percent of the countrys GDP and around 8 percent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted success so far. However the future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations. India has one of the highest savings rate in the world with Rs 29 of every Rs 100 of its national income being saved. These extremities leaves a lot of opportunity for marketers, both Indian and international. One of the key growth factors has been the shift to service sector, which accounts for 50% of the total GDP. Led by services such as IT, telecommunication, healthcare and retailing, the services sector is likely to play an even more important role in the Indian economy.

42

Big Bazaar, a part of the Pantaloon Group, is a hypermarket offering a huge array of goods of good quality for all at affordable prices. Big Bazaar with over 50 outlets in different parts of India, is present in both the metro cities as well as in the small towns. Big Bazaar has no doubt made a big name in the retail industry of India, moreover shopping here is further made a memorable experience with the varied rates of discounts on products as well as discount vouchers available in a variety of amounts, like INR 2000, INR 3000, INR 4000, INR 5000 and INR 10000 on all Big Bazaar products and accessories. This large format store comprise of almost everything required by people from different income groups. It varies from clothing and accessories for all genders like men, women and children, playthings, stationary and toys, footwear, plastics, home utility products, cosmetics, crockery, home textiles, luggage gift items, other novelties, and also food products and grocery. The added advantage for the customers shopping in Big Bazaar is that there are all time discounts and promotional offers going on in the Big Bazaar on its salable products. "We have a store opening virtually every fortnight; I have lost count now of how many I have opened." Kishore Biyani

43

2.11

BIG BAZAAR: BRANDS IDENTITY, PERSONALITY & SYMBOLISM Chosen Brand: Big Bazaar

44

Big Bazaar is Indian personification of retail. Its like an Indian bazaar or mandi or mela, the environment created by traders to give shoppers a sense of moment. Its personality is of being an entity away from fancy or pretty and being authentically "no-frills". Kishore Biyani never hired any foreign consultant for Big Bazaar which is evident from Indian-specific personality of the brand. The brands personality is self-explanatory by its tag-line only. This statement places Big Bazaar at the top of customers mind. It reflects that entrepreneurship and simplicity are the essence of character of Big Bazaar. To use predatory pricing is not in the personality of Big Bazaar, they never sell goods below the price they have purchased it. Big Bazaar, the "Indian Wal-Mart", is the modern Indian family's favorite store. Big Bazaar symbolizes modern retail, the business which isnt looked up to in our country, is now in the eyes of many multi-national biggies. Big Bazaar has shown a robust growth in recent years. Growth Story of Big Bazaar

45

2.12 BIG BAZAAR: POSITIONING AND ESTABLISHMENT

Big Bazaar Value & Customer Value Matrix

46

2.13

SWOT ANALYSIS:

Big Bazaar has established itself in the first quadrant of Big Bazaar Value and Customer Value Matrix. The SWOT Analysis of current strategy of Big Bazaar elaborates the core competencies and areas of improvement.
SWOT Analysis of Big Bazaar

The key features that have shaped in establishing of brand includes:  Big Bazaar ensures that no other kirana store / departmental store are offering considerable discount compared to its own price. This helped Big Bazaar in being the "value for money" store.  Big Bazaar scores high on product mix as compared to kirana store.  Cheap and local products are heavily stocked in Big Bazaar which make it easier to attract lower middle class category of customers.  Promotion of kirana is rare event but Big Bazaar used this channel efficiently to establish itself as national brand. Customer loyalty resulting in high up sell, i.e., selling to existing customers. Big Bazaar refrains from high-end locations for business which reduces its rental budget and provides competitive advantage over competitors. Kishore Biyani has taken "early movers advantage" in many retail spaces. 47

2.14 ADVERTISING: THE ESSENTIAL OF BRAND BUILDING PROCESS

The advertisement and brand building is done through various ways, the techniques used are: Tag-line:- Big Bazaar tag-lines are the key components of advertising. These tag-lines are modified according to demographic profile of customers. These catch-phrases appeared on hoardings and newspapers in every city where Big Bazaar was launched. Everybody understood and connected easily with these simple one-liners. The catch-liners include "Hindi - Chane ke bhaw kaaju", "Bengali - Rui er dame illish", "Hindi - Stall ke bhaw balcony", etc. Print Ads:- Big Bazaar newspaper advertisements are present just before launch of any new scheme. This creates aura about the Big Bazaar brand in the minds of customers. TV Ads:- Kishore Biyani spends a lot of money in brand building exercise. Big Bazaar commercials are shown on various channels in India. Presently, Fashion@Big Bazaar commercial is aired. Road-side Advertisements:- Big Bazaar bill-boards are displayed on prime locations in various cities as a brand building exercise. They display the catch-phrases now-a-days. Radio Ads:- This technique is used in cities like Sangli (Tier 1 / Tier 2 cities). Now-a-days, it is replaced by advertisements on FM channels. This informs customers about all new happenings at Big Bazaar. Fashion Shows:- "FASHION @ BIG BAZAAR - Desh Badla, Bhesh Badlo" is the latest invention of the Indian iconic brand. In an effort to take the Fashion to the masses, Big Bazaar, the flagship hypermarket brand of retail chain of Future Group, organized a three-day Fashion Show on the streets of Bandra, Mumbai. Brand Endorsement by Celebrity:- Big Bazaar is always associated with celebrities for advertising and marketing of its brand name. The current campaign is starred by Brand Ambassador and Indian Cricket ODI Captain Mahendra Singh Dhoni. Earlier Himesh Reshammiya and Sanath Jaisuriya were associated with Big Bazaar.

48

2.15

STRATEGIC DECISIONS TAKEN TO BUILD THE BIG BAZAAR BRAND

The strategic decisions that lead to building of Big Bazaar were: Real Estate Game For a retailer, location is one of the most important things. According to Kishore Biyani, real estate cost should be less than 5% of total sales of store in order to provide maximum benefits to customer. The strategic decisions to secure spaces before other retailers join in have resulted in cost-saving. Also, it has created early presence in market. Nurturing Relationships Kishore Biyani follows strategy to develop trust and nurture relationships with suppliers. This trust led to strategically correct decisions most of the time. Whoever works with Future Group, either leaves in initial deals or continues forever. Use of Technology, Scenario-Planning & Story-Telling Big Bazaar planning and design used advance technologies like scenario-planning and storytelling. These techniques were mainly used for store-design layout, store-location selection. The strategy to use user-focused, prototype-based development tool made the brand adapt to the fastchanging external environment. Design Management Design-led thinking helped Big Bazaar to achieve customer-first objective and ultimately led to better financial performance. Big Bazaar strategy to focus on design led to creation of Idiom, an independent design and consultancy Big Bazaar, based in Bangalore. They are one of the few Big Bazaars in India having economists, ethnographers and sociologists working across various teams as a part of Design Management team.

49

Back-end Operations, Supply Chain Harvard Business School just did a case study on Pantaloons' Supply Chain and it says that Pantaloons' is the most cost-effective supply chain in the world. India may not have a modern supply chain but it definitely has a cost-effective one. Retailers have made use of the existing supply chain.

2.16 THE SIGNIFICANT FEATURES OF BIG BAZAAR :Shopping in the Big Bazar is a great experience as one can find almost everything under the same roof. It has different features which caters all the needs of the shoppers. Some of the significant features of Big Bazar are:
y y y y y

The Food Bazar or the grocery store with the department selling fruits and vegetables There is a zone specially meant for the amusement of the kids Furniture Bazar or a large section dealing with furnitures Electronics Bazar or the section concerned with electronic goods and cellular phones FutureBazaar.com or the online shopping portal which makes shopping easier as one can shop many products of Big Bazar at the same price from home

Well regulated customer care telecalling service

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2.17 TECHNOLOGY USED IN BIG BAZAAR:Over the years as the consumer demand increased and the retailers geared up to meet this increase, technology evolved rapidly to support this growth. The hardware and software tools that have now become almost essential for retailing can be into 3 broad categories.

1- Customer Interfacing Systems



Bar Coding and Scanners:- Point of sale systems use scanners and bar coding to
identify an item, use pre-stored data to calculate the cost and generate the total bill for a client. Tunnel Scanning is a new concept where the consumer pushes the full shopping cart through an electronic gate to the point of sale. In a matter of seconds, the items in the cart are hit with laser beams and scanned. All that the consumer has to do is to pay for the goods.

Payment:- Payment through credit cards has become quite widespread and this enables
a fast and easy payment process. Electronic cheque conversion, a recent development in this area, processes a cheque electronically by transmitting transaction information to the retailer and consumer's bank. Rather than manually process a cheque, the retailer voids it and hands it back to the consumer along with a receipt, having digitally captured and stored the image of the cheque, which makes the process very fast.

 Internet:- Internet is also rapidly evolving as a customer interface, removing the need of

a consumer physically visiting the store.

2-Operation Support Systems  ERP System:- Various ERP vendors have developed retail-specific systems
which help in integrating all the functions from warehousing to distribution, front and back office store systems and merchandising. An integrated supply chain helps the retailer in maintaining his stocks, getting his supplies on time, preventing stock-outs and thus reducing his costs, while servicing the customer better. 51

CRM Systems:- The rise of loyalty programs, mail order and the Internet has
provided retailers with real access to consumer data. Data warehousing & mining technologies offers retailers the tools they need to make sense of their consumer data and apply it to business. This, along with the various available CRM (Customer Relationship Management) Systems, allows the retailers to study the purchase behavior of consumers in detail and grow the value of individual consumers to their businesses.

Advanced Planning and Scheduling Systems:- APS systems can

provide improved control across the supply chain, all the way from raw material suppliers right through to the retail shelf. These APS packages complement existing (but often limited) ERP packages. They enable consolidation of activities such as long term budgeting, monthly forecasting, weekly factory scheduling and daily distribution scheduling into one overall planning process using a single set of data. Leading manufactures, distributors and retailers and considering APS packages such as those from Manugistics, Bann, MerciaLincs and StirlingDouglas.

Strategic Decision Support Systems



Store Site Location:- Demographics and buying patterns of residents of an

area can be used to compare various possible sites for opening new stores. Today, software packages are helping retailers not only in their locational decisions but in decisions regarding store sizing and floor-spaces as well.

Visual Merchandising:- The decision on how to place & stack items in a

store is no more taken on the gut feel of the store manager. A larger number of visual merchandising tools are available to him to evaluate the impact of his stacking options. The SPACEMAN Store Suit from AC Neilsen and ModaCAD are example of products helping in modeling a retail store design.

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2.18 NOIDA BIG BAZAAR STORE

Big Bazaar, the hyper market format store of Kishore Biyani-led Future Group, has opened a new outlet in Noida, Uttar Pradesh. Spread over 53,000 square feet area, the newly launched Big Bazaar store located at The GIP Mall in Noida Sec-18. Big Bazaar opened its first outlet in Noida in 2006 and received an overwhelming response. Since Noida is a growing city, its our Endeavour to reach out to more and more homemakers in the city, and give them an opportunity to save maximum while they shop for their monthly requirements. Indian retail sector is witnessing one of the most hectic marketing activities of all times. The companies are fighting for mind share and heart share which can finally be converted to market share. There is always a first mover advantage in an upcoming sector. In India, that advantage goes toBig Bazaar. It has brought about many changes in the buying habits of people. It has created formats which provide all items under one roof at low rates, or so it claims. In this project, we will study its marketing strategies. Big Bazaars main competitors are other business houses which are planning to enter the market as well as long established Kirana stores which feel threatened by huge retail chains. Other shops-in-shops that form a part of Big Bazaar store at The GIP Mall are Food Bazaar, Fashion@Big Bazaar, Electronics Bazaar, Furniture Bazaar, One Mobile, Navaras and Depot. Besides, the store also offers a wide collection of accessories such as sunglasses, watches and handbags; general merchandise products including plastics, crockery, utensils, home care and home fashion products, footwear, toys, luggage, sports goods and gift items.

The store will also house Star & Sitara - a shop-in-shop for wellness, beauty and salon soon Big Bazaar currently operates 188 outlets across the country and retails over 1.6-lakh product ranges, added the release.

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2.19 SUPPLY CHAIN MANAGEMENT AT BIG BAZAAR

Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption

Importance of Supply Chain and Logistics Management

One of the most important challenge in organized retail in India is faced by poor supply chain and logistics management. The importance can be understood by the fact that the logistics management cost component in India is as high as 7% -10% against the global average of 4% 5% of the total retail price. Therefore, the margins in the retail sector can be improved by 3% 5% by just improving the supply chain and logistics management. In India, with demand for endto-end logistics solutions far outstripping supply, the logistics market for organized retail is pegged at $50 million and is growing at 16%. It is expected to reach $120-$130 million by 2010. Organized retail on the other hand is growing at 400% and is expected to reach around $30 billion by 2010.Even supply chain and logistics Big Bazaars like Hong Kong based Heng Tai Consumables and ABS Procurement Co and ACM China (the greenhouse specialist) is also eying the opportunity for managing the supplies. The supply chain management is logistics aspect of a value delivery chain. It comprises all of the parties that participate in the retail logistics process: Manufacturers, Wholesalers, Third Party Specialists like Shippers, Order Fulfillment House etc. and the Retailer. Here, logistics is the total process of planning, implementing and coordinating the physical movement of merchandise from manufacturer to retailer to customer in the most timely, effective and cost efficient manner possible. Logistics regards order processing and fulfillment, transportation, warehousing, customer service and inventory management as interdependent functions in the value delivery chain. It oversees inventory management decisions as items travel through a retail supply chain. If a logistics system works well, the retail Big Bazaar reduces stock outs, hold down inventories and improve customer service all at the same time. Logistics and Supply Chain enables an organized retailer to move or store products more effectively. Efficient logistics management not only prevents needless movement of goods, vehicles transferring products back and forth; but also frees up 54

storage space for more productive use. Retail analysts say on-time order replenishment will become even more critical once the Wal-Mart/ Bharti combine begins operations - the American retailer works almost entirely on cross-docking and is likely to demand higher service levels, including potential levies for delays in shipment. The efficiency and effectiveness of supply chain and logistics management can also be understood by the fact that modern retail stores maintain lower inventories than traditional retail. In India, generally in the traditional kirana stores, three weeks inventories are kept; while in a modern retail store like Hyper city, it's nine days and it's under two weeks for Food Bazaar. Now, it is beneficial for both the manufacturer as well as the retailer. If we go through the following food supply chain in India, we find that a lot can be improved by maintaining the supply chain and logistics. As supply chain Management involves procuring the right inputs (raw materials, components and capital equipments); converting them efficiently into finished products and dispatching them to the final destinations; there is a need to study as to how the company's suppliers obtain their inputs. The supply chain perspective can help the retailers identify superior suppliers and distributors and help them improve productivity, which ultimately brings down the customers costs. At the same time, Market logistics helps planning the infrastructure to meet demand, then implementing and controlling the physical flows of material and final goods from point of origin to points of use, to meet customer requirements at a profit. Till now most retailers in India have invested majorly into the front end, but relatively little on the back end and supply chain. Even in countries like the USA, Germany and England, where organized retail is highly developed; supply chain efficiency is a major concern. The nature of retail sector in India is different from other countries around the world. The organized retail sector in India is highly fragmented and there are huge inefficiencies in the supply chain. The most important part of retailing business is to find a balance between investing in front-end and back-end operations. The channel dynamics is going to change over next couple of years as the retailers start growing in size and their bargaining power is likely to increase. Probably that would bring some kind of mutual understanding between manufactures and retailers to develop strong supply chain network. In such a scenario, both the existing operators and new operators must put collaborative efforts to phase out inefficiencies in the supply chain network. Now, let us try to find out what efforts are being taken up by the big retailer in India like Future Group with retail stores like Big Bazaar and Pantaloons. 55

Future Logistics
The Future Group has also launched Future Logistics initially aimed at handling the supply chain logistics of the group. However, sensing immense opportunity in this area, the company is now looking to offer its services to its 1000-odd vendors, spread across consumer related goods, to reach a targeted turnover of about Rs.700 crore by 2010.The thrust at present will be on modes of surface transport like roads and rail only. However, at a later stage, sea and air modes might also be considered as per the requirement, said sources.

In India, Future group derives significant economies of scale in managing their supply chain. With more than 170000 products, the company maintains a strong supplier relationship in a partnership mode, avoiding the exploitative supplier buyer transactional philosophy. The IT enabled back-end operations and supply chain management increases the reliability and efficiency of the business.

As part of the operation, Future Group is also undertaking to reduce its warehousing costs through a consolidation process. In a country like India, where most retail stores are located in the heart of the citywhere rents are high and storage space is scarcesupply chain management has even more serious business implications. Future Logistics now handles twoand-a-half million SKUs (or stock keeping units) a day across the Future Group's various retail formats around the country. By 2010, this number is expected to increase to more than 30 million SKUs a day. Even with 98% accuracy, some 600,000 pieces will not be delivered correctly, resulting in an estimated sales loss of more than Rs 4 crores a day. The biggest driver in consumer logistics is going to be zero defect in managing the supply chain. While infrastructure, technology, automation, processes and people will all play an important role, zero defect can only be achieved through vertical integration across the entire supply chainfrom raw material supply, production, wholesale and retail. The different parts of the supply chain will no longer be able to work in silos as they do today.

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2.20

7PS ANALYSIS OF BIG BAZAAR

Marketing" is the promotion of products, especially advertising and branding. Marketing practice tends to be seen as a creative industry, which includes advertising, distribution and selling. Marketing mix is a deciding factor in formulating marketing techniques for the success of a particular brand, commodity or company. 7P Marketing Mix is more useful for services industries and knowledge intensive industries. Successful marketing depends on number of key issues. The seven keys issues are explained as: -

1. Product Range of Products Available at Big Bazaar

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Big Bazaar offers a wide range of products which range from apparels, food, farm products, furniture, child care, toys, etc. Big Bazaar offers the maximum variety for each category of product. The
product is the same in every store in the city but the brand options are more in Big Bazaar. Also, the quantity for each product is not limited to large packs only. The commodities sold by the retail chain also includes its own products which get a ready distribution network. The own products of Big Bazaar include My World fashion magazine which is not available anywhere else. So costs are low for such products. Products of all the major

brands are available at Big Bazaar. Also, there are many in house brands promoted by Big Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD-players and 25,000 microwave-ovens. In all, the fashion, electronics and travel segments made up about 70% of sales. Last year, these categories made up only about 60%.

Major Brands at Big Bazaar

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2 Price
The tag-line is "Is se sasta aur accha aur kahin nahi". They work on the model of economics of scale. There pricing objective is to get "Maximum Market Share". Price is the critical point in a
competitive industry. Big Bazaar works on a low cost model. It considers its discounted price as its USP. There is an average discount of 7-8% on all items in respect to their MRP. Prices of products are low because it is able to secure stock directly from the manufacturer. There are huge synergies in terms of bulk purchasing, central warehousing and transportation. These all factors help the retailer to keep low price of internet. It has launched a merchandise retailing website www.futurebazaar.com which targets high-end customers ready to use credit cards. The promotion of this website is done through advertisement on Google. The website is put as sponsored link.

The various techniques used at Big Bazaar are: -

Value Pricing (EDLP - Every Day Low Pricing):- Big Bazaar promises consumers
the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping.

Promotional Pricing:- Big Bazaar offers financing at low interest rate. The concept of
psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga Pooja).

Differentiated Pricing:- Time pricing, i.e., difference in rate based on peak and nonpeak hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar.

Bundling:- Selling combo-packs and offering discount to customers. The combo-packs add
value to customer.

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Big Bazaar - Pricing Strategies

Today is the market for creating turnovers; the more company does the turnover, more profits it would earn. Seeing that in the view, Big Bazaar has its Saying Isse sasta aur accha kahin nahin which means, nothing cheaper and nor the quality to found anywhere else. The Pricing Strategy that the Company uses is basically Every Day Low Pricing. In survey it was noticed that people use to represent price with Big Bazaar, thus it has been chosen as the basic strategy of the company. This strategy stresses the use of a pricing policy with the continuity of prices at a level. The Big Bazaar, which operate on EDLP does not believe in markdown policies and sales but attempt to generate all year round demand by setting the prices at the lowest.
The result of these strategies adopted by Big Bazaar have also been elucidately discussed in the project report.

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3 Place
Big Bazaar stores are located in 50 cities with 75 outlet. Big Bazaar has presence in almost all the major Indian cities. They are aggressive on their expansion plans.

Places at which Big Bazaar is Located

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4 Promotion
Big Bazaar started many new and innovative cross-sell and up-sell strategies in Indian retail market. The various promotion techniques used at Big Bazaar include "saal ke sabse saste teen din", Future Card (the card offers 3% discount), Shakti Card, Brand Endorsement by M. S. Dhoni, Exchange Offer - Junk Swap Offer, Point-of-Purchase Promotions. Advertising has played a crucial role in building of the brand. Big Bazaar advertisements are seen in print media, TV, Radio (FM) and road-side bill-boards. Big Bazaar has huge promotion budgets. The biggest idea behind all advertisements is to make people do bulk shopping. There are 2 types of promotional strategies of Big Bazaar. One is the holistic advertisement which promotes the brand and creates awareness among people. It is not targeted at promoting each store but only creates an image of Big Bazaar as low-cost shopping option. The store has advertised through TV, road shows and also started reality show-typed promotional campaign The Big Bazaar Challenge. Promotions like Sabse Sasta Din are a very successful strategy to get footfall. In this products across categories such as apparels, furniture, electronics, utensils and food products at the lowest possible prices, coupled with attractive promotional schemes. Some of the most attractive offers being a 20-litre branded microwave oven with grill for Rs 2,499, jeans and trousers for Rs 199 and HCL laptops for Rs 22,990. Other type of promotion is the particular store oriented promotion which includes speaking on the loudspeaker in nearby blocks. Leaflets are given in local newspaper. There are promotional efforts even inside the store. Buy 2 Get 1 Free type of promotions are very common. Original prices are cut down and new prices are shown, of which customer takes quick notice. There are loyalty schemes which reward regular clients. Promotion is also done through co-branded credit cards with ICICI bank.

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5 People
They are one of the key assets for any Big Bazaar. The salient features of staff of Big Bazaar are: Well-trained staff, the staff employed by Big-Bazaar are well-suited for modern retail. Well-dressed staff improves the overall appearance of store. Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so staff is empowered to take innovative steps. Employs close to 10,000 people and recruits nearly 500 people every month. Use of technology like scenario planning for decision making. Multiple counters for payment, staff at store to keep baggage and security guards at every gate, makes for a customer-friendly atmosphere.

6 Process
The goods' dispatch and purchasing area has certain salient features which include: Multiple counters with trolleys to carry the items purchased. Proper display / posters of the place like (DAL, SOAP, etc.). Home delivery counters also started at many places.

7 Physical Evidence
It deals with the final deliverable or the display of written facts. This includes the current system and available facilities.

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2.21

Future Expectations:

Big Bazaar is planning to have 300 hypermarkets in the country by 2010- 11. The company may also increase its annual turnover to Rs. 13,000 crore by 2010-11, up from Rs. 3,600 crore last fiscal on the back of its expansion. The company has also gone on record saying that it would have another 35 stores by the end of its fiscal in June 2009 to take the total number to 135. To achieve this they are targeting a turnover of Rs. 5,000 crore in the current fiscal year and have formulated plans for reaching a figure of Rs. 13,000 crore by 2010-11 fiscal. For the expansion, the company would be looking at both the metros and Tier I cities, besides Tier II cities & smaller cities. The marketing strategy seems to be perfectly on track as the Big Bazaar hypermarkets had a footfall of 11 crore last fiscal and the company is aiming for an increase in the numbers up to 14 crore this year. The average

size of a Big Bazaar hypermarket is 30,000 sq ft to one lakh sq ft.

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III. Research Methodology

1. Research Design: Taking the research objectives into account the research is exploratory and descriptive in nature. collection method and Exploratory research helps determine the best research design, data selection of subjects. Descriptive research, also known

as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how... 2. Sampling Design: Random sampling technique is used in order to collect the information. 3. Source of Data: To gather the required information for this study, primary source of data was used. Active primary data was collected from the customers of Big Bazaar. Questionnaires were prepared and filled according to the opinions of the customers. Unstructured personal interviews of vendors and customers were taken to know their opinions. These vendors and customers were selected through random sampling. . 4. Data Collection Tools: Tools like unstructured interviews and observation techniques were used to describe the various aspects of Distribution Gap. Unstructured Interview was used because the vendors were uneducated and customers do not have enough time to fill questionnaires. 5. Methods of Data Collection: The customers and vendors were met personally for Data Collection

6. Sample Size: 160 questionnaires

(100 questionnaires- customers 30 questionnaires- vendors 30 questionnaires- receiver)

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LIMITATION OF STUDIES Every research has its limitations; this research is not an exception in this manner there are certain factors in conducting this research also, These are: Time constraint - as we are using interview method that is more time consuming especially when sample is scattered in large geographical area.  Skilled manpower required - in interview method the interviewer has to visit the individuals, put question to them, which elicit the relevant information about the subject of enquiry. This requires skilled manpower.   Biasness As data is collected from sample size of 100 from large population of customers. So, it may lead to bias results of customers. Mindset of customers and vendors: Mindset of customers and vendors is another limitation of study. It depends upon the mood and eagerness of customers and vendors at time of filling questionnaire.

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Tools and techniques of analysis of Data:

Q.1) Competitive analysis of Colgate:

Null hypothesis: Demand of colgate is same as that of other brands Alternate hypothesis: Demand of colgate is different from other brands
ANOVA Factor ratings Sum of Squares Between Groups Within Groups Total 3918.019 14687.587 18605.606 df 8 405 413 Mean Square 489.752 36.266 F 13.505 Sig. .000

For = 0.05 the significance value is .000 Interpretation: As the significance value is less than 0.05 at 95 % confidence level, thus Null hypothesis is rejected. It means demand of colgate is different from demand of other brands.

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Post Hoc Tests

Multiple Comparisons

Factor ratings LSD

(I) Name of brands 1

(J) Name of brands 2 Mean Difference (I-J) .913 1.913 3.565

*

95% Confidence Interval Std. Error 1.256 1.256 1.256 1.256 1.256 1.256 1.256 1.256 Sig. .468 .128 .005 .133 .002 .000 .000 .000 Lower Bound -1.56 -.56 1.10 -.58 1.51 2.68 3.66 8.25 Upper Bound 3.38 4.38 6.03 4.36 6.45 7.62 8.60 13.19

3 4 5 6 7 8 9

1.891 3.978
*

5.152* 6.130
*

10.717*

Interpretation: According to LSD post hoc test, Demand of colgate is different from demand of Promise, Sensodyne, Himalaya and Sach depending on various factors such as Price, Smell, Freshness, Packaging, Offers etc. We come to know about difference through their significance values as they are below 0.05 (95% confidence level).

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Means Plots

Interpretation: Mean of colgate is very high (i.e. 31.24) in the market whereas mean of Sach is very low (i.e. 20.52). This shows the effectiveness of colgate in the market as compared to other brands.

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Ques. 2) Customer Satisfaction at Big Bazaar:

Hosmer and Lemeshow Test Step 1 Chi-square 6.879 df 8 Sig. .550

The Hosmer and Lameshow test shows lack of significance, indicating that the model pridictions are not significantly different from observed values. In other words, the model fits well.
Classification Table
a

Predicted VAR00001 Observed Step 1 VAR00001 0 1 Overall Percentage a. The cut value is .500 0 13 4 1 4 29 Percentage Correct 76.5 87.9 84.0

The classification table above shows that overall correct classification rate of the model is 84%. The model predicts that customer is not satisfied with overall management of big-bazaar.

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Variables in the Equation B Step 1a music lighting Temperature Cleanliness Service Speed Time Range Prices Quality Availability Constant 1.453 1.196 -.858 -1.105 1.835 .403 1.280 .819 -2.209 2.696 2.431 -12.328 S.E. .907 1.437 1.270 1.026 1.202 1.434 1.293 1.264 1.563 1.379 1.238 4.898 Wald 2.564 .692 .457 1.158 2.331 .079 .979 .420 1.997 3.821 3.856 6.334 df 1 1 1 1 1 1 1 1 1 1 1 1 Sig. .109 .405 .499 .282 .127 .779 .322 .517 .158 .051 .050 .012 Exp(B) 4.275 3.306 .424 .331 6.265 1.496 3.596 2.269 .110 14.814 11.373 .000

a. Variable(s) entered on step 1: music, lighting, Temperature, Cleanliness, Service, Speed, Time, Range, Prices, Quality, Availability.

Interpretation: Walds test shows that there are some variables variables in the model which are insignificant. As per their significance values- Music, Service, Cleanliness, prices, availability do not have main impact in the customer satisfaction. Log ( customer satisfaction)= -12.328+1.453(music)+1.196(lighting)-0.858(temperature) -1.105(cleanliness)+1.835(service)+.403(speed)+1.280(time)+0.819(range)2.209(prices)+2.696(quality)+2.431(availability)

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Ques. 3) Problem of vendors: Factor analysis:

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .582 93.895 36 .000

As per the KMO and Bartletts test, measure of sampling adequacy is 0.582 which means that the test is relevant.

Total Variance Explained

Compon ent 1 2 3 4 5 6 7 8 9 Total 3.254 1.624 1.083 .876 .810 .650 .375 .217 .112

Initial Eigenvalues % of Variance 36.157 18.040 12.034 9.735 8.999 7.217 4.166 2.411 1.241 Cumulative % 36.157 54.197 66.231 75.966 84.965 92.182 96.348 98.759 100.000

Extraction Sums of Squared Loadings Total 3.254 1.624 1.083 % of Variance 36.157 18.040 12.034 Cumulative % 36.157 54.197 66.231

Extraction Method: Principal Component Analysis.

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Component Matrix

Component 1 VAR00001 VAR00002 VAR00003 VAR00004 VAR00005 VAR00006 VAR00007 VAR00008 VAR00009 Extraction Method: Principal Component Analysis. a. 3 components extracted. .853 .906 .805 .447 .405 .171 .310 .255 .709 2 -.082 -.134 -.145 -.533 .268 .647 -.419 .684 .399 3 -.335 -.182 .095 -.097 .730 -.210 .555 .168 -.080

Interpretation: The output of factor analysis is obtained by requesting principal component analysis and specifying the rotation. There are two stages in factor analysis. Stage one being the factor extraction process, where the objective is to identify how many factors are to be extracted from the data. The most popular method for this is called principal component analysis. As evident from above table, we find that the three factors extracted together accounts for 66.23% of the total variance (information contained in the original 9 variables). Hence we have reduced the no. of variables from 9 to 3 underlying factors. Looking at the table, we find that the variables: Quantity of goods extra from PO, Quantity of goods short from bill, Wrong item in the bill, VAT problem in bill and Immediate delivery of goods are grouped in factor 1. Therefore, this factor can be interpreted as Deficiency of goods. Now for factor 2 , we see that Wrong MRP of goods and Delivery within specified time are grouped together. Therefore, this factor can be named as Non-availability of goods As for factor 3, it is evident that Damage and Goods with approaching expiry date have the highest lodging. This factor can be termed as Defective goods.

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1.) Quantity of goods delivered are extra from PO:

No. of respondents
14 12 10 8 6 4 2 0 Very unlikely Unlikely Moderate No. of respondents Likely Very Likely

Analysis: From the above graph, it is concluded that Quantity of goods delivered extra from PO is not a big issue in the organization related to vendors . As 60 % response is in favour of vendors. In the above graph, 13.33% vendors have never deliver goods extra from PO, 46.67% vendors delivers extra from PO to some extent but it is not a big reason for discrepancies of bill. 30% vendors have a moderate view to this problem that neither it is positive nor negative to organization. Only 10% vendors have serious problem in delivering extra quantity. This problem is mainly with GAPL Agencies, Pharmage India and Mukta Enterprises.

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2.) Quantity of goods delivered are short from bill:

No. of respondents
16 14 12 10 8 6 4 2 0 Very unlikely Unlikely Moderate No. of respondents Likely Very Likely

Analysis: From the above graph, it is concluded that Quantity of goods delivered are short from bill is not a big issue in the organization related to vendors . As 60 % response is in favour of vendors. In the above graph, 10 % vendors have never deliver goods short from bill, 50 % vendors delivers short from bill to some extent but it is not a big reason for discrepancies of bill. 30% vendors have a moderate view to this problem that neither it is positive nor negative to organization. Only 10% vendors have serious problem in delivering short quantity from bill. This problem is mainly with GAPL Agencies, Pharmage India and Mukta Enterprises.

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3.) Wrong item from the bill (Wrong article no./ Item not found in system):

No. of respondents
18 16 14 12 10 8 6 4 2 0 Very unlikely Unlikely Moderate No. of respondents Likely Very Likely

Analysis: From the above graph, it is concluded that Quantity with wrong item no. is not a big issue in the organization related to vendors . As 70 % response is in favour of vendors. In the above graph, 13.33% vendors have never deliver wrong item goods , 46.67% vendors delivers extra from PO to some extent but it is not a big reason for discrepancies of bill. 13.33% vendors have a moderate view to this problem that neither it is positive nor negative to organization. Only 16.67% vendors have serious problem in delivering wrong items. This problem is mainly with GAPL Agencies, JMD Enterprises, Kusum distributers, Surya fresh foods and Mukta Enterprises.

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4.) VAT Problem in the bill:

No. of respondents
16 14 12 10 8 6 4 2 0 Very unlikely Unlikely Moderate No. of respondents Likely Very Likely

Analysis: From the above graph, it is concluded that Quantity constituting VAT (tax) problem is not a big issue in the organization related to vendors . As 80 % response is in favour of vendors. In the above graph, 26.67 % vendor do not have tax problem in their bills , 53.33% vendors have tax problem to some extent but it is not a big reason for discrepancies of bill. 16.67% vendors have a moderate view to this problem that neither it is positive nor negative to organization. Only 3.33% vendors have serious problem of tax in their bills. This problem is mainly with Kudos Laboratories.

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5.) Damage in goods delivered:

No. of respondents
12 10 8 6 4 2 0 Very unlikely Unlikely Moderate No. of respondents Likely Very Likely

Analysis: From the above graph, it is concluded that Damage in goods delivered is a big issue in the organization related to vendors . As only 26.67 % response is in favour of vendors. In the above graph, 3.33% vendors have never delivered damaged goods , 23.33% vendors delivers damaged goods sometimes but it is not a major cause for discrepancies of bill. 30% vendors have a moderate view to this problem that neither it is positive nor negative to organization. 36.67% vendors have serious problem of delivering damaged goods whereas 6.67% is habitual of delivering damaged goods which is not a good sign for vendors as well as it costs to organisation. This problem is mainly with Mukta Enterprises, JMD Enterprises, Brijnandan enterprises and Symbol marketing.

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6.) Wrong MRP (MRP on product is different from PO)

No. of respondents
16 14 12 10 8 6 4 2 0 Very unlikely Unlikely Moderate No. of respondents Likely Very Likely

Analysis: From the above graph, it is concluded that Goods delivered with wrong MRP is not a big issue in the organization related to vendors . As 60 % response is in favour of vendors. In the above graph, 10 % vendor do not have MRP problem in their bills , 50% vendors have MRP problem to some extent but it is not a major cause for discrepancies of bill. 30% vendors have a moderate view to this problem that neither it is positive nor negative to organization. 6.67% vendors have serious problem of tax in their bills whereas 3.33% (one vendor) have major cause of MRP problem. This problem is mainly with Agarwal associates, Grow well marketing and Amarpali Biotech.

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7.) Goods delivered with approaching expiry date:

No. of respondents
16 14 12 10 8 6 4 2 0 Very unlikely Unlikely Moderate No. of respondents Likely Very Likely

Analysis: From the above graph, it is concluded that goods with approaching expiry date is not a big issue in the organization related to vendors . As 70 % response is in favour of vendors. In the above graph, 16.67 % vendor do not have near expiry date problem in their bills , 53.33% vendors have near expiry date problem to some extent but it is not a big reason for discrepancies of bill. 10% vendors have a moderate view to this problem that neither it is positive nor negative to organization. 20% vendors have serious problem of approaching expiry date with their products. This problem is mainly with Kegg Farms, AD store, Pharmage India, Grow well Marketing etc..

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8.) Delivery of goods within time on specified day:

No. of respondents
18 16 14 12 10 8 6 4 2 0 Very unlikely Unlikely Moderate No. of respondents Likely Very Likely

Analysis: From the above graph, it is concluded that Quantity constituting VAT (tax) problem is not a big issue in the organization related to vendors . As 66.67% response is in favour of vendors. In the above graph, 10 % vendors always deliver goods on the days assigned to them , 56.67 % vendors usually deliver goods on the days specified. 20% vendors sometimes deliver goods on specified day which neither effects positively or negatively to the organization. 10% vendors have serious cause of not delivering goods on their assigned days whereas 3.33% never deliver on their specified days. This problem is mainly with Pooja Agencies, Accuman marketing, Jade farms and Mukta enterprises.

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9.) Immediate delivery of goods, when required:

No. of respondents
14 12 10 8 6 4 2 0 Very unlikely Unlikely Moderate No. of respondents Likely Very Likely

Analysis: From the above graph, it is concluded that Immediate delivery of goods is not a big issue in the organization related to vendors . As 56.67% response is in favour of vendors. In the above graph, 10 % vendor deliver goods at same time it is asked to deliver without any problem,, 47.67% vendors also delivers to some extent but it is not a big reason to worry for vendors. 40% vendors have a moderate view to this problem that neither it is positive nor negative to organization. Only 6.67% vendors do not make immediate delivery of goods at the time of requirement. This problem is mainly with Mukta enterprises.

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FINDINGS:  Related to oral care preference study:  There are 9 brands of oral-care.  Colgate is offering 11 brands- Max Fresh, Cibacca, Max white, Total, Herbal, Bubble fruit etc.  Customers are price conscious according to their rankings.  Colgate is the leader in the market.  70% of customers rush to big bazaar on weekly basis.  Colgate provides more brands and offers  Colgate is more reliable than other brands  Colgate provides more freshness and smell.  30% customers are influenced by advertisement  Close-up and pepsodent is strong competitor of colgate.  Colgate offers more than other brands.  Related to customer satisfaction:  Customers do not like music played at Big-Bazaar store.  Customers are happy about hygiene environment of big bazaar.  Majority of customers are facing billing problems such as wrong items in bill, wrong billing amount.  Customers have to wait in long queues for billing  Free gifts are not available at CSD.  Customers are not happy with staffs response to their queries.  Customers are not happy with technical support .  Customers are satisfied with range, prices and availability of products.  Customers are not happy with the quality of products  Therefore, customers are not happy with overall management

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 Related to vendors:  80% of vendors approach twice a week to deliver goods.  Majority of vendors carry 5-10 bills at one time  Average bills carried by vendors in a month is 400 bills  Average amount of bills in a month is about Rs. 1 crores.  Average quantity rejected in a month is 1200 pieces.  Average amount of quantity rejected in a month is Rs. 300000  Time taken for receiving is More than 2 hours.  Credit period allowed by vendors is 15-30 days.  Payment is not done within specified period  Payment is not done of whole amount.  Major vendors are satisfied with the quality of service they get in store.  Major vendors are JMD Enterprises, Mukta Enterprises, Pharmage India, Gapl Agencies etc.  Related to receiver:  Damaged goods is a major cause for returning of goods.  Damage problem is mainly with Mukta enterprises, GAPL Agencies, Brijnandan Enterprises and Symbol Marketing.  Immediate delivery of goods is never done by Mukta Enterprises.  Pooja Agencies, Jade Farms, Pharmage India never deliver goods within specified time on assigned days.  Goods with approaching expiry date is an issue with Kegg Farms, Grow Well Marketing, AD store etc.  Wrong MRP is a problem associated with Aggarwal associates, Grow well marketing.

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CUSTOMERS FEEDBACK  Problems are solved in very less time at CSD.  Trolleys are not available on weekends.  Technical support of billing system should be improved  Customers grievances should be solved immediately  The staff is not trained.  The vegetables and fruits are not fresh.  There is lack of good brands in apparels.  The announcements are not audible.  Some goods are at very high price mostly Food Bazaar items.  Lack of employees in the store.  The merchandise is good but display is not good.

VENDORS FEEDBACK
 Receiving time should be less  Increase number of staff at receiving  Parking facilities for transporter should be provided  Take due care of goods and reduce damage goods  Payment should be done within credit period  Payment should be done of whole amount  Increase the space of receiving  Proper warehouse management for goods.

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SUGGESTIONS
 Store has frequent meeting with the staff members where discussions regarding development is held. The outcome from these meeting is presented to area managers who forward the information to the head office.  Customers must be treated as customers on a regular basis and this should not be affected by whether they buy products or not.  The staff members of the store should have eye contact, a good welcoming phrase and an excellent closure.  Little attention to cleanliness. Dust on shelves as well as some product items.  Inhouse packaging not efficiently done.  Crowded store interiors. Items are arranged in a cluttered way. Tried to stock maximum number in limited area.  Sign boards should be prominent. Lack of direction creates confusion.  Food Bazaar should be efficiently managed.  Shelf space is used very well to stock products with clear distinction.  Personal connection results in customer loyalty. Make them feel special and they will come back for more.  Entry gate guards should get more training on behaviour.  Increase the range of other company product, especially in apparels and food items.  Do not put rotten vegetables and fruits.  There should be some refreshment inside the store.  Increase the sound of announcements more than songs so that one can hear clearly the offers.  Make some arrangements to avoid long queues.  Big Bazaar should appoint better staff  There should be a customer care number to solve any problems faced by customers.  Home delivery should provide with area limitations.

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RECOMMENDATIONS
 Related to oral care:  Product should be manufactured as per the requirement of customer.  Factors such as smell, packaging, freshness etc. should be considered.  Different products should be manufactured for different categories like different for kids, different for men, different for women and different for old-age persons.  Colgate should offer dental check ups at different stores in india and promotes sales.  Colgate should offer different sizes or tubes of toothpaste.  Colgate must manufacture candy or toffee which act like oral care.

 Related to Vendors:  There should be more focus on major vendors such as Mukta Enterprises, Pharmage India, JMD Enterprises etc.  Strict warnings were given to vendors that goods after specified time will not be accepted.  Due care of goods should be done.  Warehouse management should be in proper manner so as to avoid damage.  Goods should be protected from rat bitting.  Staff should be well tarinned to carry goods with proper care.

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MY LEARNINGS
 Learning of Inventory management  Learning about various aspects of warehouse management  Learning of receiving process.  Promoting Wednesday Bazaar.  Coordination with other functions such as Marketing, VM, IT, CSD, HR etc.  Learning about various aspects of CSD.  Problem solving by personal meeting of aggrieved customers.  Participated in promotional sales activity.

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Annexures
Questionnaire for Oral Care preference study Name________________ Age__________________ Dear Sir/ Madam, We are doing a brief survey to find out more about consumer preferences regarding oral care. We would be grateful if you could spare a few minutes to participate in it. Thank you for your cooperation. Occupation_____________________ No. of family members________________

1. How often you visit to big bazaar? a) Daily c) Monthly b) Weekly d) Occasionally

2. What purchases you make at Big Bazaar? a) Grocery c) Toiletries e) Clothes and shoes g) Furniture b) Fruits and vegetables d) Drinks and eatables f) Crockery h) Other___________________

3. What item in toiletries you buy at big bazaar? a) Toothpaste and brush c) Toilet care b) Soaps d) Other_________________

4. Can you locate toothpaste section easily? a) Yes b) No

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5. Rate the following factors on 5 scale basis: (1= Worst, 2= Poor, 3=OK, 4=Good and 5= Best) Product Colgate Close-up Pepsodent Meswak Babool Promise Sensodyne Himalaya Sach Price Ingredients Offers Packaging Advertisement Availability Freshness Sizes Smell

6.

Rank the following:

Factors

Rank

Price Ingredients Offers Packaging Advertisement Availability Freshness Sizes Smell

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2.

Name______ Age_______ Dear Sir/ Madam, We are doing a brief survey to find out more about consumer satisfaction in Big Bazaar store. We would be grateful if you could spare a few minutes to participate in it. Thank you for your cooperation. 1. How often you visit to Big Bazaar: a) Daily c) Monthly 2. Rate the following according to your preference: y Music Good Moderate y Lighting Good Moderate y Temperature Good Moderate y Cleanliness Good Moderate

Questionnaire for customer satisfaction Occupation_________ Income_____________

b) Weekly d) Occasionally

Bad Bad Bad Bad

3. Do you face any problem related to billing system in Big Bazaar: a) Yes b) No c) Cant say (if yes, specify the reason__________________________________________________) 4. Are you satisfied with the overall service you received: a) Yes b) No

c) Cant say

5. Are you satisfied with the speed in which the service/product was delivered: a) Yes b) No c) Cant say 6. Are you satisfied with the time taken to respond to your queries: a) Yes b) No c) Cant say 7. Rate the following related to products according to your preference: y Range Good Moderate y Prices Good Moderate y Quality Good Moderate y Availability Good Moderate 8. Are you satisfied with the total management of the store: a) Yes b) No

Bad Bad Bad Bad

c) Cant say

9. Any change you want in system: ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

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3. Questionnaire for employees Name of organization:________________________________________ Dear Sir/ Madam, We are the student of Galgotias Business School, Greater Noida, conducting the survey, as a part of my project in the field of Market Research. The purpose of this activity is to know the problems of employees arising from the vendors. Rate the following questions according to the problem: 1. Quantity of goods delivered are extra from PO: Very unlikely Very likely (1) (2) (3) (4) (5) 2. Quantity of goods delivered are short from bill: Very unlikely Very likely (1) (2) (3) (4) (5) 3. Wrong item from the bill (Wrong article no./ Item not found in system): Very unlikely Very likely (1) (2) (3) (4) (5) 4. VAT problem in the bill: Very unlikely Very likely (1) (2) (3) (4) (5) 5. Damage in goods delivered: Very unlikely Very likely (1) (2) (3) (4) (5) 6. Wrong MRP? (MRP on product is different from MRP in PO) Very unlikely Very likely (1) (2) (3) (4) (5) 7. Goods delivered with approaching expiry date: Very unlikely Very likely (1) (2) (3) (4) (5) 8. Delivery of goods within time on specified day: Very unlikely Very likely (1) (2) (3) (4) (5) 9. Immediate delivery of goods, when required: Very unlikely Very likely (1) (2) (3) (4) (5)

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4.

Name____________________ ________________________ Dear Sir/Madam, We are the student of Galgotias Business School, Greater Noida, conducting the survey, as a part of my project in the field of Market Research. The purpose of this activity is to know the problems of vendor arising in the store. 1. How often you visit for delivery of goods: a) Daily b) Once a week c) Twice a week d) Once a month 2. No. of bills at one time: a) Less than 5 c) 11-20

Questionnaire for Vendors Organization

b) 5-10 d) More than 20

3. Average bills and amount in a month: ________________________________________________________________________ 4. Quantity rejected in a month (No. and amount): ________________________________________________________________________ 5. Reason for quantity rejected: a) Quantity extra from PO c) Damage 6. Average time taken in receiving process: a) Within 30 minutes c) 1-2 hours 7. Credit period allowed by vendor for payment: a) Less than 15 days c) 31-60 days 8. Is amount paid within credit period? a) Yes 9. Is payment done of whole amount? a) Yes

b) MRP problem d) Other _______________(Specify)

b) 30 mins -1 hour d) More than 2 hours

b) 15-30 days d) More than 60 days

b) No

b) No

10. Are you satisfied with the service provided in the store? a) Yes b) No (if no, specify reason______________________________________________________)
11. Any change you want in system: ____________________________________________

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Webliography & Bibliography  www.futurebytes.com  www.pantaloon.com  www.retailindia.com  www.google.com  Principles of Marketing management (Philip Kotler)  Marketing Research (Rajendra Nargundkar )

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