SUMMER TRAINING PROJECT REPORT ON “EFFECTIVENESS OF RETAILING MIX IN BIG BAZAAR "Under the supervision of :MR.SOBHAN BANERJEEHR-HEADBig Bazaar, Ranchi Submitted By: Shiv Mohan Singh PGRM/02/42 SMS, Varanasi In partial fulfillment of the requirement of POST GRADUATE DIPLOMA IN RETAIL MANAGEMENT course Session :2008-10 School of Management Sciences
DECLARATION I hereby declare that the information presented here istrue to the best of my knowledge. Also, the report has not been published any where else. SHIV MOHAN SINGH
PREFACE PGDM is the one of the most reputed professional coures in thefield of Retail Management.It include theory as well as its practicalapplication.Summer Training is an integral part of PGDM-retailprogramme, for sucessful completion of this programme require twomonths summer training in retail organisation.So after completion of second semester each student at School ofManagement Sciences,Varanasi need to under go two months trainingin an organisation. This training serves the purposes of acquainting the student withenvironment of an organisation in which student have to work hard infuture .Only theoretical knowledge is not enough but its practicalapplication is also required to be learned.
I was fortunate enough to have an opportunity of doing summer trainingat BIGBAZAAR,RANCHI. Every trainee was required to prepare areport of his working in the organisation. I was assigned a project on“EFFECTIVENESS OF RETAILING MIX IN BIGBAZAAR.”In this report,all the important findings of the project are included ,overand above an overall profile of the company(PANTALOON) is alsogiven.It is hoped that this report will make the readers familiar with thestore and also give the idea about the product and services offered bythe company.
ACKNOWLEDGEMEN T AcknowledgementThe project of this magnitude would not have been completed singly. Firstly I want to give my hearty thanks to all mighty who made the world and me also. There are many other people without whom the completion of theproject would not have been possible. Some have contributed towards this directly while other have provided indirectly. It gives me immense pleasure to thank
Mr.Swapline Dutta.(Store Manager) and Mr. Sobhan Banerjee(HR) for providing me summer training in his reputed organization and giving me a chance to have the experience of actual retail operations. I am indebted to Mr.Bishnath jha (Department Manager)of BIG BAZAAR for his guidance and cooperation in completing this project.Last but not the least I would like to convey my heartiest gratitude to all Members of BIG BAZAAR who helped a lot during my summer training. SHIV MOHAN SINGH TABLE OF CONTENTS
TABLE OF CONTENTSS.NO. Contents Page no 1 COMPANY PROFILE 9-25 2 Group vision, mission and values 26-27 3 Organization Structure 28-29
4 Management style 305 Strategy 306 Department and Products 31-327 Introduction 33-408 Research Objective 41-429 Research methodology 4310 Analysis and Interpretation 44-6111 Findings 62-6312 Recommendations 64-6513 Limitations 66-6714 Bibliography 68-6915 Annexure 70-7216 Location 73-7417 Competitors 75
Company profilePantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formatsin both the value and lifestyle segment of the Indian consumer market. Headquartered inMumbai (Bombay), the company operates over 10 million square feet of retail space, has over1000 stores across 61 cities in India and employs over 30,000 people.The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, auniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touchand feel of Indian bazaars with aspects of modern retail like choice, convenience and qualityand Central, a chain of seamless destination malls. Some of its other formats include, Depot,Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star andSitara. The company also operates an online portal, futurebazaar.com. A subsidiary company,Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutionsstore, Collection i, selling home furniture products and E-Zone focused on catering to theconsumer electronics segment.Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 atthe World Retail Congress held in Barcelona.Pantaloon Retail is the flagship company of Future Group, a business group catering to theentire Indian consumption space. Pantaloon is not just an organization - it is an institution, a
centre of learning & development. We believe that knowledge is the only weapon at ourdisposal and our quest for it is focused, systematic and unwavering.At Pantaloon, we take pride in challenging conventions and thinking out of the box, in travellingon the road less traveled. Our corporate doctrine ‘Rewrite Rules, Retain Values’ isderived from this spirit. Over the years, the company has accelerated growth through its ability to lead change. Anumber of its pioneering concepts have now emerged as industry standards. For instance, thecompany integrated backwards into garment manufacturing even as it expanded its retailpresence at the front end, well before any other Indian retail company attempted this. It was thefirst to introduce the concept of the retail departmental store for the entire family throughPantaloons in 1997. The company was the first to launch a hypermarket in India with BigBazaar, a large discount store that it commissioned in Kolkata in October 2001. And thecompany introduced the country to the Food Bazaar, a unique bazaar within a hypermarket,which was launched in July 2002 in Mumbai. Embracing our leadership value, the companylaunched aLL in July 2005 in Mumbai, making us the first retailer in India to open a fashionstore for plus size men and women.Today we are the fastest growing retail company in India. The number of stores is going toincrease many folds year on year along with the new formats coming up. The way we work isdistinctly "Pantaloon". Our courage to dream and to turn our dreams into reality – that changepeople’s lives, is our biggest advantage. Pantaloon is an invitation to join a place where thereare no boundaries to what you can achieve. It means never having to stop asking questions; itmeans never having to stop raising the bar. It is an opportunity to take risks, and it is thispassion that makes our dreams a reality.Come enter a world where we promise you good daysand bad days, but never a dull moment!
Future GroupFuture Group is one of the country’s leading business groups present in retail, assetmanagement, consumer finance, insurance, retail media, retail spaces and logistics. The group’sflagship company, Pantaloon Retail (India) Limited operates over 10 million square feet ofretail space, has over 1,000 stores and employs over 30,000 people. Future Group is present in61 cities and 65 rural locations in India. Some of its leading retail formats include, Pantaloons,Big Bazaar, Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retailformat, futurebazaar.com.Future Group companies includes, Future Capital Holdings, Future Generali India Indus LeagueClothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. FutureCapital Holdings, the group’s 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 andconsumer-related brands and hotels.The group’s joint venture partners include Italian insurance major, Generali, French retailerETAM group, US-based stationary products retailer, Staples Inc and UK-based Lee Cooper andIndia-based Talwalkar’s, Blue Foods and Liberty Shoes.Future Group’s vision is to, “deliverEverything, 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.
Mr. Kishore BiyaniManaging Director (FUTURE GROUP)
Major Milestones1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand.1991 Launch of BARE, the Indian jeans brand.1992 Initial public offer (IPO) was made in the month of May.1994 The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation.1995 John Miller – Formal shirt brand launched.1997 Pantaloons – India’s family store launched in Kolkata.2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain launched.2002 Food Bazaar, the supermarket chain is launched.2004 Central – ‘Shop, Eat, Celebrate In The Heart Of Our City’ - India’s first seamless mall is launched in Bangalore.2005 Fashion Station - the popular fashion chain is launched aLL – ‘a little larger’ - exclusive stores for plus-size individuals is launched2006 Future Capital Holdings, the company’s financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and Generali.
Our cultureAt Pantaloon, Empowerment is what you acquire and Freedom at Work is what you get. Webelieve our most valuable assets are our People. Young in spirit, adventurous in action, with anaverage age of 27 years, our skilled & qualified professionals work in an environment wherechange is the only constant.Powered by the desire to create path-breaking practices and held together by values, work in thispeople intensive industry is driven by softer issues. In our world, making a difference toCustomers’ lives is a Passion and performance is the key that makes it possible. Out of the Boxthinking has become a way of life at Pantaloon and living with the change, a habit.Leadership is a value that is followed by one and all at Pantaloon. Leadership is the quality thatmotivates us to never stop learning, stretching to reach the next challenge, knowing that we willbe rewarded along the way. In the quest of creating an Indian model of retailing, Pantaloon hastaken initiatives to launch many retail formats that have come headed for serve as a benchmarkin the industry. Believing in leadership has given us the optimism to change and be successful atit. We do not predict the future, but create it.At Pantaloon you will get an opportunity to handle multiple responsibilities, and therein, thegrooming to play a larger role in the future. Work is a unique mix of preserving our core Indianvalues and yet providing customers with a service, on par with international standards.At Pantaloon you will work with some of the brightest people from different spheres of industry.We believe it’s a place where you can live your dreams and pursue a career that reflects yourskills and passions.New discoveries in retailIn the financial year 2006-07, the company’s retail businesses discovered new categories acrossformats, new sets of consumers and fresher and contemporary merchandise. We have been ableto offer more in the established businesses and gain favourable acceptance with new concepts. Inaddition, concerted expansion plans saw retail space increase to over 5.2 million square feet atthe end of 2006-07. This expansion mode was characterized by a twopronged approach. Bydominating the cities the company was already present in and by bringing the benefits of modern
retail to towns and cities like Mangalore, Palakkad, Surat, Indore, Kanpur, Haldia, Agra,Coimbatore, Jaipur and Panipat. The company has also undertaken significant privatelabel initiatives in food, in general merchandise and in the consumer durables andelectronicscategories. Strategic alliances have also been forged with established domestic and internationalbrands. However, the most significant development was the internal realignment the companyundertook within each of its retail businesses. To embark on a more detailed approach towardsvalue creation and increasing efficiency, the company reviewed its business operations andadopted a more focused approach by creating an integrated support unit or Line of Business. Augmenting the retail front-end team, Line of Business (LoB) units have beencreated in the three most critical businesses – food, fashion and general merchandise. Formedduring the second half of 2006-07 these business units focus on introducing optimum operationalefficiencies. Thus, these units ensure that back - end measures are appropriately taken care ofand the right kind of merchandise reaches the stores in the best possible time, at the right price.These teams focus on product consolidation and suitability, margin improvement, and vendorrationalization, thereby ensuring that the sourcing benefits are made available to the front - endteam.The company’s efforts over the next couple of years would entail a combination ofexpansion and process upgradation and implementation.The emphasis will be on the next discoveries to be made in the retail space that will lead toexpansion. At the same time, there will be an increased focus on micro detailing aspectsincluding process, product and operational efficiencies thereby contributing positively to thecompany’s bottom-line.discovering fresh fashion
It was the first Pantaloons store in Kolkata that set off a chain of discoveries that have led us towhere we are today. Ten years later, we have launched our largest Pantaloons store inKankurgachi in Kolkata. Spread across 85,000 square feet, the store is the first among a series oflarge format stores that will be launched across the nation. After consolidating its Fresh Fashionpositioning, Pantaloons embarked on a major expansion during the year 2006-07. In 8 cities,11Pantaloons stores were opened with 7 of them opening in the single month of March 2007. Thetotal count of Pantaloons stores as on 30th June 2007 stood at 31 with the total area under retail
close to 1 million square feet. In order to maintain the top of the mind association with fashion inIndia, Pantaloons continued to be the title sponsor for the Femina Miss India 2007 pageant. Inaddition, Bipasha Basu and Zayed Khan were roped in as brand ambassadors in the month ofAugust 2006. The success of this initiative was evident in the increased sales for the ‘HaldiGulal’ range as well as the ‘Svayam Utsav’ summer collection that were endorsed by Bipashaand Zayed. The private label apparel share during the year was in excess of 70 percent. The yearalso witnessed categories like Winter-wear and Ethnic Ladies-wear strengthening their presencein the stores. The increasing success of the store brand is evident from the fact that the store’sloyalty programme, Green Card, added 200,000 new members.Pantaloons will see a significant expansion during the coming year with an increase of nearly0.50 million square feet of retail space and an addition of about 15 stores. Pantaloons will look atdominating cities where it has a first entrant advantage and will scale up sizeably with largerstores, additional categories and retail formats. The year 2007-08 will witness considerable focusin the North and East regions. Delhi and the NCR area along with Punjab, Chandigarh andLudhiana will see the next stage of expansion. Cities like Ranchi, Guwahati and Siliguri in theEast will also discover Fresh Fashion.discovering more value
In 2006-2007, more Indians discovered the value of shopping in Big Bazaar. And with thelaunch of each store, we discovered more value in terms of operational efficiency. Big Baazaarlaunched 27 new stores in 22 cities, covering over 1.40 million square feet. As of June 2007,there were 56 Big Bazaar stores across 43 cities. While Big Bazaar continued to expand in thelarge cities, it also tapped consumption potential in smaller cities like Agra, Allahabad,Coimbatore, Surat, Panipat, Palakkad, Kanpur and olhapur.The year under review also witnessed realigning of business teams with sharedexperience in category management, sourcing, front-end operations and business planning. Inaddition, separate teams have been formed to look into all aspects of new store launches and tomanage mature stores. This provides more flexibility and focus in expansion plans.The increase in SKUs in existing categories and the introduction of new categories encouragedthe opening of larger stores or Super Centres, measuring 100,000 square feet or more. There arenow 5 Big Bazaar Super Centres. Considering this scale of expansion, technologyplays a significant facilitating role. The introduction of SAP in 2005-06 and its rollout during the year, positively impacted the business. Big Bazaar has initiated the process of Auto Replenishments Systems, thus improvingoperational efficiencies and productivity. The company has also rationalized nearly 250 vendors
through better vendor management in terms of potential to expand, and for inclusion andupgradation to the online B2B platform. The company plans to open over 60 stores across Indiain FY 2008, and the opening of the 100th Big Bazaar store will mark the fastestever expansionby a hypermarket format.discovering the new consumerBased on the company’s in-house consumer data and research, and in cognizance withobservations on customer movements and the shopping convenience factor, Food Bazaar hasinitiated certain refurbishments and layout design across all stores. The intention is tocontinuously change with the times and demands of the evolving Indian consumer.Food Bazaar also witnessed healthy expansion during the year 2006-07, making its presence feltin nearly 26 cities and adding 40 stores during the year under review. The total count of FoodBazaars as on 30th June 2007 stood at 86 stores. The year under review witnessed the company’sprivate label programme gaining significant traction. The brands have been very competitive vis-
à-vis the established brands in quality and price terms, and have in fact scored better thannational or international players in certain categories.The share of private labels as a percentage of total Food Bazaar revenues has increasedsignificantly and comprise nearly 50 merchandise categories.While Fresh & Pure brand entered categories like cheese slices, frozen peas, honey, packageddrinking water and packaged tea, the Tasty Treat brand received a very favorable response innew categories like namkeens and wafers. In the home care category, Caremate launchedaluminum foil and baby diapers while Cleanmate launched detergent bars and scrubbers. A new format ‘BB Wholesale Club’ was launched and 4 such stores have been opened sofar. To be managed by Food Bazaar from the ensuing financial year, this format sells only multi-packs and bulk packs of a select range of fast moving categories and caters to price sensitivecustomers and smaller retailers.The company has also forged tie-ups with established companies like ITC, Adanis, DCM Group,USAID and other farm groups in Maharashtra and Madhya Pradesh to source directly from them.These alliances are expected to drive efficiencies as well as bring better products to consumers.By the end of FY 07-08, the total number of Food Bazaar stores is expected to be 200.Future ideasDiscovering new opportunitiesFuture Ideas is the Innovation, Design & Incubation cell within Pantaloon Retail that stems from
the core proposition - ‘Protecting and preserving the soul of a small business orenterprise within a large organisation.’ Future Ideas deals with the whole aspect ofidea creation, scenario planning activities, alternate approaches to an issue, providingvaried outcomes and solutions to a problem and handholding the activity till its successparameters are satisfied.A unique initiative in corporate India, Future Ideas rests on a tripod that canbe classified as Innovation driven, Design Management approach and an Incubation chamber,each with its own uniqueness, yet with common objectives. The Design Management team looksat each observation made by the Innovation team, and brainstorms by using a collaborative andholistic approach. The resultant ideas are then nurtured within the Incubation cell. TheIncubation team comprises of business teams, mentored by the Innovation and Design teams.They are people who are released from their original businesses or concepts and made part of theentire ideation process at Future Ideas. They remain at Future Ideas till project completion stagewhen the success parameters for running the business are met.Future Ideas draws inspiration for most of its activities and projects, keeping in mind the newgenre of aspirational Indians. At any point of time Future Ideas would work on about 20 variedprojects within the Future Group.Some of the formats that are now being incubated by this team include Top10, Depot, Star &Sitara and Talwalkars’ Fit & Active. The team is also working on ideas around small format no-frills stores, rural retailing, fashion for the masses and on projects involving women and self-helpgroups.Discovering new segments
Depot, in many cities, is the first modern retailer in books and music and theresponse has been overwhelming. The core differentiators of Depot are its young, colorful andvibrant stores, strong regional range, affordability and a private label publishing program - DepotExclusives. In its first year of operation, Depot has launched 6 stand-alone stores and 50 cut-ins.Along with its expansion in major cities, Depot debuted in smaller towns like Rajkot, Vadodara,Haldia, Thrissur, Palakkad and Tiruvanantharam.The Depot Exclusives (released solely inDepot) catalogue expanded rapidly with over 100 titlesacross genres like children’s books, cookery, regional literature etc. Reputed authors/ imprintslike Nita Mehta and Sanjeev Kapoor in cookery, Disney in children’s books etc., have beenassociated with the company. Depot has also tied-up with the UK based publisher ofchildren’s books, Small World, to co-publish a series of toddlers’ interactive books. In FY 2007-08, the total Depot footprint should cross over 100 stores.The Health, Beauty & Wellness business opened 35 new outlets in the beauty products, servicesand holistic health care formats Multiple formats operate in this segment, including Tulsi, thepharmacy chain and Star & Sitara, the beauty products cut-ins and Star & Sitara Salons. Thelargest format, Beauty Free offers unique combination of products, services and holistic healthofferings.
To capture the increasing consumption spend on wellness and preventive health care, the jointventure between Pantaloon Retail (I) Limited and Talwalkar Better Value Fitness opened its first‘Talwalkars Fit & Active’ health centre at Orchid City Centre, Mumbai in April 2007. Spreadover 5,200 square feet, it is the country’s first health centre to offer health, fitness and gymservices within a modern retail and consumption environment.The venture is also looking at innovative value added offerings in the fitness space as well asdeveloping a Spa model for the Fit & Active brand across the country, by increasing its presenceto nearly 50 such centers in the near future.Human ResourcesDiscovering talent diversityThe company strongly believes that its sustainable competitive advantage lies in the values that itcherishes, the culture that it imbibes and spirit of enterprise that resides within theorganization. Talent management therefore continues to be the core focus for thecompany. Considering themultiple businesses and rapid expansion expected across the business, the company saw merit intaking a fresh guard to the way in which business would run in order to meet the next leg ofexpansions.During the year 2006-07, the company conducted an extensive review of in-house talentmanagement, which involved mapping every managerial position in the organization for theirskill sets, competence and attitudinal aspects as well as taking an inventory check of the existingtalent base and addressing their development needs. Development Centres were created with in-house assessors, which further aided in identifying potential resources and helped chalk out postassessment development plans.Continuing with its policy of strategic alliances, the company is collaborating on joint degreeprograms with 15 management schools, design institutes and institutes of higher learning in areaslike food business, supply chain management, design experience management etc. This ‘Seekho’
programme for external and internal candidates has ensured a steady stream of mid level, welltrained retail professionals every year.The company’s ‘Gurukool’ programme provides the front-end employees an opportunity toimbibe the company’s values and a sense of ownership to the company. The company has alsocreated an Employee Growth Trust Fund that was launched during the last financial year for thesenior management.Equal OpportunityThe company believes that in order to build a sustainable business environment, the compositionof its talent base needs to reflect the diversity that exists in our country and among its customers.Therefore the company ensures that the proportional representation of different communities inthe Indian population is mirrored in its employee profile. The majority of employees in thecompany come from socially and economically marginalized sections of the society. Close to46% of the employees in the organization are women and the average age within theorganization is 27 years.The effectiveness of its talent management initiatives is reflected in the fact that the annual rateof attrition is 8.12%, much below industry levels. The company plans to strengthen its employeeplatform to about 30,000 people by FY 08, from nearly 18,000 people as on FY 07.Human Resource InitiativesPantaloon Retail believes that one of its sustainable competitive advantages will continue to bethe people who are part of the organization. Being in service industry, the Company places a lotof focus is placed on attracting, training, incentivising and retaining talent. The vision is "Toprovide an environment that creates happy people who have a meaningful life and add value tobusiness and society." With over 18000 employees at an average age of 27 years, the Companyprides itself on being a young and energetic organization, driven through the The PantaloonPeople Management System. This is
built on 5 pillars of people based growth, namely - Culture Building, Performance Managementthrough Balanced Scorecard, People Processes, Management Processes and LeadershipBrilliance. Training A competent Learning & Development Team is responsible for trainingemployees at all the levels across the countr y, focusing on primary and secondary research intovarious aspects of retail and assessment of training needs across Knowledge, Skills & Attitudeareas. The emphasis is on creating product and process knowledge through well definedprograms like Praarambh and Parikrama. For the critical front line staff, the Companysunique outbound residential training program Gurukool focuses on integrating the mind, bodyand soul and brings about measurable attitudinal and behavioral changes.The program has covered nearly 4,500 employees. The SMILE initiative for training of newStore Managers has been created and disseminated to over 100 store managers by this team Future Group Manifesto “Future” – the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn, our ability to evolve. We, in Future Group, will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our customers, employees, shareholders, associates and partners.Our customers will not just get what they need, but also get them where, how and when theyneed. We will not just post satisfactory results, we will write success stories. We will not just operate efficiently in the Indian economy, we will evolve it. We will not just spot trends, we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow. It is this understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing.
Rewrite Rules. Retain Values.Group Vision Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.
Group Mission • We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. • We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. • We shall infuse Indian brands with confidence and renewed ambition. • We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.Core ValuesIndianness:Confidence in ourselves.Leadership:To be a leader, both in thought and business.Respect & Humility:To respect every individual and be humble in our conduct.Introspection:Leading to purposeful thinking.Openness:To be open and receptive to new ideas, knowledge and information.Valuing and Nurturing Relationships:To build long term relationships.Simplicity & Positivity:
Simplicity and positivity in our thought, business and action.Adaptability:To be flexible and adaptable, to meet challenges.Flow:To respect and understand the universal laws of nature.
SALES PERSONSDEPARTMENT ASSISTANT TEAM STORE ASSISTANTDEPARTMENT LEADER MANAGER STORE MANAGER MANAGER Or PROMOTERS MANAGER
MANAGEMENT STYLEThe organization structure for Big bazaar is flat in nature. For Big bazaar, the divisions areapparel, non apparel and the new business division, which includes gold, footwear and the shop-in-shops. For Food Bazaar, a separate teem has been created which again works independently.About 1,800 people work for Big bazaar directly. Support and ancillary services compriseanother 400 people. A new trainee is put through a basic three day training program before goingon the shop floor. Evaluation is done every six months.THE STRATEGYSaving is key to the Indian middle class consumer. The store, which would be created, had tooffer value to the consumer. Keeping this in mind, the concept of Big bazaar was created.In India, when a customer needs some thing for the home, a typical thought is to seek it from thebazaar. A bazaar is a place where a complete range of products is always available to theconsumer. This is true across India. As the store would offer a large mix of products at adiscounted price, the name Big bazaar was finalized. The idea was to re-create a completebazaar, with a large product offering (at times modified to suit local needs) and to offer a gooddepth and width in terms of range. The mind to market for the first store was just six months.Price was the basic value proposition at Big bazaar. The Big bazaar outlets sold a variety ofproducts at prices, which were 5 to 60 percent lower than the market price. The line“Isse sasta aur achha kahin nahin” emphaised this.
LINE OF BUSINESSLine of Business Sub Department Under the BrandBB-Fashion BF-Children’s BIG BAZAAR BF-Kids Acc BIG BAZAAR BF-Ladies BIG BAZAAR BF-Ladies Acc BIG BAZAAR BF-Men’s BIG BAZAAR BF-Men’s Acc BIG BAZAAR FashionBB-GM-Fashion Accessories BIG BAZAAR Footwear BIG BAZAAR GF-Luggage BIG BAZAAR GF-New Business BIG BAZAAR GF-Sport Goods BIG BAZAAR GF-Toys BIG BAZAARBB-GM-Home ware GH-Home décor BIG BAZAAR GH-Household crockery BIG BAZAAR GH-Household Plastic BIG BAZAAR GH-Household utensil BIG BAZAAR SS-PersonalBeauty & health Grooming BIG BAZAAROneMobile(communication) CM-Accessories ONE MOBILE CM-Carriers ONE MOBILE CM-Hardware ONE MOBILE CC-Noncure &care Prescription SIS CC-Prescription SIS
Depot DP-Book DEPOT DP-Multimedia DEPOT DP-Stationery DEPOT EE-Cd&eElectronics Accessories HOME BAZAAR EE-Computer &Acces HOME BAZAAR EE-Consumer Durable HOME BAZAAR EE-Electronics HOME BAZAAR EE-Personal Electro HOME BAZAARFood Bazaar FB-Chef Zone FOOD BAZAAR FB-Chill Station FOOD BAZAAR FB-Fabricleen FOOD BAZAAR FB-Fruits & Vegetable SIS FB-Golden Harvest FOOD BAZAAR FB-Head to toe FOOD BAZAAR FB-Hungry kya FOOD BAZAAR FB-Spic N Span FOOD BAZAARFurniture FR-Furniture HOME BAZAARHome Fashion Home Fashion HOME BAZAARHome Improvement HI-Carpentry HOME BAZAAR HI-Electricals HOME BAZAAR HI-Improvement HOME BAZAARLootmart Ladies BIG BAZAAR Mens BIG BAZAAR Mens Accessories BIG BAZAAR NR-PreciousNavras Jeweelle Navras BB SIS FashionSIS Accessories SIS
INTRODUCTIONA retailer or retail store is any business enterprise whose sales volume comes primarily fromretailing. Retail organizations exhibit great variety and new forms keep emerging. There arestore retailers, non store retailers, and retail organizations. Consumers today can shop for goodsand services in a wide variety of stores. The best-known type of retailer is the department store.Japanese department stores such as Takashimaya and Mitsukoshi attract millions of shopperseach year. These stores feature art galleries, cooking classes, and children’s playgrounds.
A retailer is at the end of the distributive channel. He provides goods and service to theultimate consumers. This he does through his small organization, with the help of a fewpersonnel. In an individual retail store there is not much scope for organization except in thesense that the shopkeeper has to organize apportions his time and resources. The need fororganization becomes essential as soon as he hires people o enters into partnership or takes thehelp of members of his family in running his store. A retailer deals in an assortment of goods tocater to the needs of consumers. His objective is to make maximum profit out of his enterprise.With that end in view he has to pursue a policy to achieve his objective. This policy is called retailingmix. A retailing mix is the package of goods and services that store offers to the customers forsale. It is the combination of all efforts planned by the retailer and embodies the adjustment ofthe retail store to the market environment. Retailing mix, a communication mix and adistribution mix. The maximum satisfaction to the customers is achieved by a properblend of all three. The success of the retail stores, therefore, depends on customers’ reaction to the retailingmix which influences the profits of the store, its volume of turnover, its share of the market, itsimage and status and finally its survival.RETAILRetailing is the set of business activities that adds value to the products and services sold to theconsumer for their personal or family use.
a "retailer" buys goods or products in large quantities from manufacturers or importers, eitherdirectly or through a wholesaler, and then sells smaller quantities to the end-user. Retailestablishments are often called shops or stores. Retailers are at the end of the supply chain.Manufacturing marketers see the process of retailing as a necessary part of their overalldistribution strategy. The term "retailer" is also applied where a service providerservices the needs of a large number of individuals, such as a public utility, likeelectric power. • Retailing is an important institution in our society, • Retailing provides considerable value to consumers while giving people opportunities for rewarding and challenging careers. • Retail formats and companies are now major factors in the industry. • The key to successful retailing is offering the right product, at the right price, in the right place, at the right time, and making a profit. • Retailers must understand what customers want and what competitors are offering now and in the future.The World of Organized Retailing • Retailers are using sophisticated communications and information systems to manage their business. The use of new technologies helps retailers reduce their operations costs, while better serving their customers.
• To compete against non-store retailers, stores are now becoming more than just places to buy products. They are offering entertaining and educational experiences for their customers. • In this dynamic environment, entrepreneurs are launching new companies and concepts and becoming industry leaders, while traditional firms have had to rethink their business. • Retail managers today must make complex decisions on selecting target markets and retail locations, determining what merchandise and services to offer, negotiating with supplier and distributing merchandise to stores, training and motivating sales associates, and deciding how to price, promote and present merchandise.RETAIL MIX.The retail mix is the combination of factors retail used to satisfied customer needs and influencestheir purchase decision. Its include the type of merchandise and services offered, merchandisepricing, advertising, promotional programs store design merchandise display, assistance tocustomer provided by salespeople, and convenience of the store’s location. Retail mix is the term used to describe the various elements and methods required to formulate and execute retail marketing strategy.
Retail managers must determine the optimum mix of retailing activities and co- ordinate the elements of the mix. The aim of such coordination is for each store to have a distinct retail image in consumers’ mind. The mix may vary greatly according to the type of the retailer is in, and the type of product/services.While many elements may make up a firm’s retail mix, the essential elements may include: Store location, merchandise assortments Store ambience, customer service, price, Communication with customer Personal selling Store image Store design Sales incentives People Process
Physical evidenceComposition of retail mix • Place • Product • Price • Promotion • People • Process • Physical EnvironmentKey element 1)Place (store location) 2)Product (merchandise) Target market Product development Channel structure Product management Channel management Product features and benefits Retailer image Branding Retail logistics Packaging Retail distribution 3)Price 4)Promotion
Costs Developing promotional mixes Profitability Advertising management Value for money Sales promotion Competitiveness Sales management Incentives Public relations Quality Direct marketing Status After-sales services5)People element 6)Process element Staff capability Order processing Efficiency Database management Availability Service delivery Effectiveness Queuing system Customer interaction Standardisation Internal marketingRetail mix planning
Retail mix plan consists of: Setting objectives Systematic way of identifying a range of options. Formulation of plans for achieving goals Logical sequence of retailing activities.Importance of Retail mix planning Hostile and complex retail environment External and internal retail organisation factors interact – Maximising revenue – Maximising profit – Maximising return on investment – Minimising costs Each element has conflicting needs All these variables interact All these variables result in optimum compromise.Approaches to planningTop down approach Retail management sets goals and plans for all levels of management.
Bottom up approach Various units prepare own goals and plans sent up for approval. It is the effective blending of all the elements of retail mix activities within the retailorganization that determines the success of retail management. Discuss this statement andexplain with retail examples how the elements of retail mix could be blended to ensure thesuccess of retail operation.
OBJECTIVEPRIMARY OBJECTIVE :To study the effectiveness of retailing mix in the store.SECONDARY OBJECTIVES : 1. To identify the performance of store operations. 2. To understand the quality of services maintained in the store. 3. To determine the performance of sales persons in the store. 4. To understand the availability of products in the store. 5. To identify the effectiveness of atmospherics in the store.
RESEARCH METHODOLOGY• Type of researchDescriptive• Type of dataPrimary data• Data collection methodData is collected through structuredquestionnaire.• SamplingConvenient sampling• Sample size100• Data analysis techniqueQuantitative
• Data analysis toolBar charts, pie charts. ANALYSIS AND INTERPRETATION
ANALYSIS AND INTERPRETATION Q1. In a month how many times you visit big bazaar? a) Once 7 b) Twice 23 c) Thrice 8 d) More than thrice 25 e) As per requirement 37INTERPRETATION: Out of 100 respondent, 37% people visit the store when they have some requirement and 25%are visited more than thrice, 23% visited two times in month and 7% & 8% people visited oneand three times in a month respectively. Most of them regularly visit big bazaar. Maximum number of people visited store frequently. Q2. Your shopping experience in big bazaar is always!
a) outstanding 1 b) Excellent 21 c) Good 43 d) Average 32 e) Bad 3INTERPRETATION:Out of 100 respondent, 43% people has good shopping experience in big bazaar,32% hasaverage and 21% people has excellent. But 1% has outstanding shopping experience and 3% hasbad shopping experience.Maximum numbers of people has a better experience of shopping in bigbazaar. Q3. Brands and products availability in big bazaar is ! a) outstanding 3 b) Excellent 28 c) Good 44 d) Average 22
e) Bad 3INTERPRETATION:Out of 100 respondents, Over all 31% customer are satisfied by the availability of brand andproducts in big bazaar,66% customer product availability is average rest said it is bad.Some people think there is no good brands and products availability in big bazaar. Especially inapparels. Q4. Ambience & atmosphere inside the store is ! a) outstanding 5 b) Excellent 27 c) Good 41 d) Average 21 e) Bad 6INTERPRETATION:
Out of 100 respondents, Ambience & atmosphere inside the store is good feel by 41% customers,27% feel it is excellent and only 3% feel outstanding. But 27% customers are not satisfied by theambience & atmosphere inside the store of big bazaar.Due to much noisy and unpleasant environment some of the customer irritates.Atmosphere is really good. Q5. Discounts and offers served in big bazaar is ! a) outstanding 7 b) Excellent 32 c) Good 36 d) Average 23 e) Bad 2INTERPRETATION:Out of 100 respondents, Discounts and offers served in big bazaar is good said by 36%customers, 32% feel it is excellent and only 7% feel outstanding. But 25% customers are notsatisfied by Discounts and offers served in the big bazaar. Maximum Customers are satisfied by Discounts and offers served in the big bazaar.
Discounts and offers served in the big bazaar are excellent.(Especially in Big day)Q6. Home delivery services of big bazaar is !a) outstanding 7b) Excellent 19c) Good 38d) Average 28e) Bad 8INTERPRETATION:Out of 100 respondents, Maximum number of respondent i.e. 64% is satisfied by Home deliveryservices of big bazaar rest 36% is not satisfied. Some customer never used this facility. Q7. Location 0f big bazaar in your city is ! a) outstanding 29 b) Excellent 32
c) Good 22 d) Average 13 e) Bad 4INTERPRETATION:Out of 100 respondents, 61% is highly satisfied with location of big bazaar in city, 22% issatisfied and only 17% is not satisfied.Location of big bazaar is outstanding. It is situated central business district (CBD). Q8. Product display and signage in the store is ! a) outstanding 8 b) Excellent 36 c) Good 40 d) Average 14 e) Bad 2
INTERPRETATION:Product display and signage in the store is highly satisfactory according to 44% of therespondent, satisfactory according 40% of the respondent rest 16% are not satisfied with it.Customers are satisfied with Product display and signage in the store. Q9. In offer days the shopping experience in the store is! a) outstanding 3 b) Excellent 29 c) Good 39 d) Average 25 e) Bad 4INTERPRETATION:Out of 100 respondent, 39% people has good shopping experience in big bazaar, 25% hasaverage and 29% people has excellent. But 3% has outstanding shopping experience and 4% hasbad shopping experience.Maximum numbers of people has a better experience of shopping in offerdays.
Some customer do not enter in store due to heavy rush. Q10. How do you feel about sales persons and promoters? a) Outstanding 4 b) Excellent 21 c) Good 49 d) Average 23 e) Bad 3INTERPRETATION:74% of the respondents are satisfied by the sales persons and promoters in the store rest 26%respondents are not satisfied by the sales persons and promoters in the store.Sales persons and promoters behave well with customer. Q11.The parking facility in bag bazaar is! a) outstanding 17 b) Excellent 29
c) Good 32 d) Average 17 e) Bad 5INTERPRETATION:78% of the respondents are satisfied by the parking facility in bag bazaar, rest 22% respondentsare not satisfied by the parking facility in bag bazaar.Maximum customer satisfied with the parking facility in bag bazaar. Q12. The quality of the product served by big bazaar is! a) outstanding 3 b) Excellent 19 c) Good 47 d) Average 26 e) Bad 5
INTERPRETATION:21% of the respondents are highly satisfied with the quality of the products at big bazaar, rest74% are said the quality of the products in big bazaar is averaged, only 5% said its not good.Maximum number of people is not satisfied with quality of the product. Q13. The cleanliness and hygiene maintained in the store is ! a) outstanding 13 b) Excellent 41 c) Good 28 d) Average 13 e) Bad 5INTERPRETATION:According to maximum number of respondent i.e. 82% feels that cleanliness and hygienemaintained in the store is up to the mark rest 18% feel it is not up to the mark.Cleanliness and hygiene maintained in the store is up to the mark.
Q14. Are you satisfied with the billing facility at the store? a) YES 72 b) NO 28INTERPRETATION:72% of the respondents are satisfied by the billing facility in the store, rest 28 % are not satisfied.Some customer are not satisfied by billing facility(Especially in offer day and rush hours ). Q15. Is it easy to move with the trolley in the store? a) YES 74 b) NO 26
INTERPRETATION:According to 74% of the respondents it is easy to move in the store with trolley only 26% said itis not.The space management in the store is up to mark. Q16. Do you feel that shopping in big bazaar has made you a more knowledgeable conscious and aware customer? a) YES 63 b) NO 37INTERPRETATION:
According to 63% of the respondents they feel that shopping in big bazaar has made moreknowledgeable conscious and aware customer, and 37% they are already knowledgeableconscious and aware customer.“Big bazaar has made customer a more knowledgeable conscious and aware customer” Q17.Do you feel that big bazaar provide you value for money? a) YES 85 b) NO 15INTERPRETATION:Out of 100 respondent, 85% of the respondents feel that big bazaar provide you value for money,15% feel not.“discovering more value” The above statement is true spotted by the above data.
FINDINGS✔ Store performing well in attracting the customers.✔ Big bazaar provides better shopping experience.✔ Brands and products availability in big bazaar is not up to the mark. Especially in apparels.✔ Noisy and unpleasant environment is irritates customer. Air conditioning is really good.✔ Discounts and offers doing well in the store.✔ In offer days the store management is good.✔ Home delivery services are not used by customer.✔ Product display and signage is good.✔ Quality in products is not up to the mark.✔ Location of big bazaar is outstanding. It is situated central business district (CBD)✔ Parking facility in big bazaar is good.✔ Cleanliness and hygiene maintained in the store is up to the mark “discovering more value” The above statement is true spotted by the above data.
RECOMMENDATIONS➢ Create awareness & manage home delivery services properly.➢ There should be proper assortment of various product categories.➢ Proper signage should be there so that customer can locate the products easily.➢ Cleanliness and hygiene should be maintained regularly.➢ Proper training should be provided to sales person so that they can deal with the customer efficiently.➢ Various schemes and offers can be provided to them and attract new customers (Use pull strategy).➢ No. of cash counter needs to be increased keeping in view customer traffic intensity.➢ Quality in products should be increased up to mark.
LIMITATIONLimitations of the study 1. Time limit is the major constraint. 2. Some respondents refuse to co-operate. 3. Some respondents replied half heartedly. 4. Some respondents gave incomplete information. 5. The survey was conducted in very general way as no other variable such as their education level, occupation and sex.
ANNEXURE QUESTIONNAIREPERSONAL INFORMATIONDear sir/ Madam, I Shiv Mohan Singh student of School of management sciences, Varanasi conducting asurvey on “Effectiveness of retailing mix in Big Bazaar’’ This survey is a part of my partial fulfillment of PGDM (RM) course. Please provide relevantinformation by filling this questionnaire to make my survey more comprehensive. All details from your partwill be kept confidential. Name:- …………………………………………………………..
Sex:- a) Male b) Female Contact no.:- …………………………………………………………Q1. In a month how many times you visit big bazaar ?a) Ones b) twice c) Thriced) more than thrice e) As per requirementQ2. Your shopping experience in big bazaar is always!a) Outstanding b) Excellent c) Goodd) Average e) BadQ3. Brands and products availability in big bazaar is !a) Outstanding b) Excellent c)Goodd) Average e) BadQ4. Ambience & atmosphere inside the store is !a) Outstanding b) Excellent c)Goodd) Average e) BadQ5. Discounts and offers served in big bazaar is !a) Outstanding b) Excellent c)Goodd) Average e) BadQ6. Home delivery services of big bazaar is !a) Outstanding b) Excellent c)Goodd) Average e) Bad Q7. Location 0f big bazaar in your city is !a) Outstanding b) Excellent c)Goodd) Average e) BadQ8. Product display and signage in the store is !a) Outstanding b) Excellent c)Goodd) Average e) BadQ9. In offer days the shopping experience in the store is!
a) Outstanding b) Excellent c)Goodd) Average e) BadQ11. How do you feel about sales persons and promoters ?a) Outstanding b) Excellent c)Goodd) Average e) BadQ13.The parking facility in bag bazaar is!a) Outstanding b) Excellent c)Goodd) Average e) BadQ14. The quality of the product served by big bazaar is !a) Outstanding b) Excellent c)Goodd) Average e) BadQ15. The cleanliness and hygiene maintained in the store is !a) Outstanding b) Excellent c)Goodd) Average e) BadQ12. Are you satisfied with the billing facility at the store ?a) Yes b) NoQ10. Is it easy to move with the trolley in the store?a) Yes b) NoQ16. Do you feel that shopping in big bazaar has made you a more knowledgeable conscious and aware customer?a) Yes b) noQ17.Do you feel that bag bazaar provide you value for money?a)yes b)No (Signature) Thanking you for filling up this questionnaire