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A Study on Category Management
With reference to Big Bazaar, KACHIGUDA
A project report submitted in partial fulfillment of the requirements
For the award of the degree of
MASTERS OF BUSINESS ADMINISTRATION
Submitted by
Darapureddi.Pradeep Kumar (PG141501038)
Under the esteemed guidance of
Mr.K.V.V.Devi Prasad
Asst. Professor
Department of Management Studies
Gayatri Vidya Parishad College for Degree & PG Courses (Autonomous)
Affiliated to Andhra University
Gayatri valley, Rushikonda campus
Visakhapatnam-530045
(2014-2016)
1
DECLARATION
I hereby declare that the project report entitled “A Study on Category Management with
reference to Big Bazaar, Kachiguda” submitted by me to Department of Management Studies,
Gayatri Vidya Parishad College for Degree & PG Courses (Autonomous), Affiliated to Andhra
University is a bonafide work done by me for the partial fulfillment of MASTER OF
BUSINESS ADMINISTRATION and has not been submitted to any other university or
published at any time before.
Place: VISAKHAPATNAM D.PRADEEP KUMAR
Date:
2
CERTIFICATE
This is to certify that the Project report entitled “A Study on Category Management with
reference to Big Bazaar, Kachiguda” being submitted by Mr.D.PRADEEP KUMAR is a bonafide
work done for partial fulfillment of the award of Degree of MASTER OF BUSINESS
ADMINISTRATION during 2014-16 in Department of Management Studies, Gayatri Vidya
Parishad College for Degree & PG Courses (Autonomous) under my guidance and supervision.
Place: VISAKHAPATNAM K.V.V.DeviPrasad
Date:
3
ACKNOWLEDGEMENTS
I would like to take this opportunity to express my heartiest concern of work to all those who
have helped me in various ways to complete this project.
I express my sincere thanks to Prof. S.K.V.Suryanarayana Raju, Principal, Gayatri Vidya Parishad
College for Degree and PG Courses (A), Visakhapatnam, for his encouragement throughout academic.
I take the privilege of extending my gratitude to Prof.S.Rajani, Director, Department of Management
Studies, Gayatri Vidya Parishad College for Degree & P.G courses (A), Visakhapatnam, for giving me opportunity
to work on this project.
I immensely thank, Dr.K.V.V.Murali Someswara Rao, Associate Professor and Head of the
Department, Department of Management studies, Gayatri Vidya Parishad College for Degree & P.G courses (A),
Visakhapatnam, for his valuable guidance, suggestions in completion of this project successfully.
I profoundly thank Mr.K.V.V.Devi Prasad, Asst. Professor, Dept. of Management studies, Gayatri Vidya
Parishad College for Degree & P.G courses (A), Visakhapatnam, for his encouragement and helped me at various
stages that have been instrumental in materialization of this project.
I would like to express my sincere gratitude to Mrs.Tanuja Reddy, H.R Manager at Big Bazaar,
KACHIGUDA for giving me guidance and cooperation during the course of the project. He provided me with his
assistance and support whenever needed.
I extend my sincere thanks to all my faculty members and my parents for their valuable support and
encouragement throughout the course.
PRADEEPKUMAR.D
(PG141501038)
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CONTENTS
5
TITLE PAGE NO.
CHAPTER-I 1-7
INTRODUCTION 1
NEED FOR THE STUDY 3-4
OBJECTIVES OF THE STUDY 5
METHODOLOGY 6-7
LIMITATIONS 7
CHAPTER-II 8-15
PROFILE OF RETAIL INDUSTRY 9-15
CHAPTER-III 16-35
PROFILE OF BIGBAZAAR 17-35
CHAPTER-IV 36-49
THEORETICAL FRAME WORK ON
CATEGORY MANAGEMENT
37-49
CHAPTER-V 50-76
DATA ANALYSIS AND INTERPRETATION 51-76
CHAPTER-VI 77-79
SUMMERY 78-79
FINDINGS 80-81
SUGGESTIONS 82
ANNEXURES 83-86
BIBLIOGRAPHY 87
•
•
CHAPTER – I
• INTRODUCTION
• NEED FOR THE STUDY
• OBJECTIVES OF THE STUDY
• METHODOLOGY
• LIMITATIONS
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INTRODUCTION
Category management is a retailing and purchasing concept in which the range of products
purchased by a business organization or sold by a retailer is broken down into discrete groups of
similar or related products; these groups are known as product categories (examples of grocery
categories might be: tinned fish, washing detergent, toothpastes). It is a systematic, disciplined
approach to managing a product category as a strategic business unit.
Each category is run as a "mini business" (business unit) in its own right, with its own set of
turnover and/or profitability targets and strategies. Introduction of Category Management in a
business tends to alter the relationship between retailer and supplier: instead of the traditional
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adversarial relationship, the relationship moves to one of collaboration, with exchange of
information, sharing of data and joint business building.
The focus of all supplier negotiations is the effect on turnover of the category as whole, not just the
sales of individual products. Suppliers are expected, indeed in many cases mandated, to only suggest
new product introductions, a new planogram or promotional activity if it is expected to have a
beneficial effect on the turnover or profit of the total category and be beneficial to the shoppers of
that category.
One key reason for the introduction of category management was the retailers' desire for suppliers to
add value to their (i.e. the retailer's) business rather than just the supplier's own. For example, in a
category containing brands A and B, the situation could arise such that every time brand A promoted
its products, the sales of brand B would go down by the amount that brand A would increase,
resulting in no net gain for the retailer. The introduction of category management imposed the
condition that all actions undertaken, such as new promotions, new products, re-vamped planogram,
introduction of point of sale advertising etc. were beneficial to the retailer and the shopper in the
store.
A second reason was the realization that only a finite amount of profit could be milked from price
negotiations and that there was more profit to be made in increasing the total level of sales.
A third reason was that the collaboration with the supplier meant that supplier's expertise about the
market could be drawn upon, and also that a considerable amount of workload in developing the
category could be delegated to the supplier.
NEED FOR THE STUDY:
• Big Bazaar, Kachiguda is an infant retail shopping mall. Since the incorporation it Involved
verity of category management because in future it would be a market leader in all Over India.
So the researcher wants to do project work in this organization to practical Knowledge point of
view.
• Keeping in mind the rapid growth of Indian retail industry and its bright future, this has always
been a thrust area for me. Big Bazaar is at the top position in Indian retail industry. That is why it
8
attracted me to have a study in Big Bazaar, Kachiguda. Big Bazaar is the retail chain of Future
Retail (India) Ltd. And it provides a wide range of products availability for the customers.
• As a matter of fact, retail is the buzz word of the Indian economy today. As retail industry is
growing at a high pace I wanted to have an overview of the subject. I have chosen Big Bazaar
retail chain for the project work, because Big Bazaar retail is very upcoming retail company
which is continuously changing its activities with the change of time. I wanted to understand
their marketing activities and liked to relate how similar or dissimilar it is from what I have
studied in marketing management.
• The introduction of category management imposed the condition that all actions undertaken,
such as new promotions, new products, re-vamped planogram, introduction of point of
sale advertising etc. were beneficial to the retailer and the shopper in the store.
• It helps collaboration with the supplier meant that supplier's expertise about the market could be
drawn upon, and also that a considerable amount of workload in developing the category could
be delegated to the supplier.
• Here the need of this study is to know what the customers of big bazaar are perseving about the
category management in the store. And impact of category management on customers purchase.
When a customer is making a buying decision on a specific product of a category whether he is
looking correct product, price, large assortments.
• The company following category management to influence the customers to make a buying
decision, where my study is to know how much impact making a buying decision and what
elements looking for in a category management to attract customers towards a product of a
particular category.
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• To study how customers reacts towards the category management in big bazaar, kachiguda. To
study category management influence on customers to make a decision. To find out which
element is need to get most customer attention.
• To know that is category management really impact on customer buying decisions. To know to
what extent category management helps in increasing sales.
OBJECTIVES OF THE STUDY:
• The main objective of the study is to find out customers’ satisfaction levels on category
management in Big bazaar, Kachiguda, Hyderabad.
• To know the socio-economic profile of the customers of big bazaar.
• To know the shopping behavior of the customers of Big bazaar.
• To look at the current trends in the Indian organized retail industry.
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• To offer suggestions for effective Category management in Big bazaar.
RESEARCH METHODOLOGY:
Research methodology is a way to systematically solve the research problem. In it, step-by-step
Research Methodology is a way to systematically solve the research problem. In it, step-by-step methods
are followed to solve a particular problem. It refers to a search for knowledge. It can also be defined as a
scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of
scientific investigation.
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The methodology adopted for the present study was focus discussion, interview and close observation
through in-house study. Since the project is based on action research it was necessary to build rapport to
collect maximum information from the Customers. Hence the research spent considerable time with the
people who reside in city. The main focus was to do with the assessing the satisfaction level of customer
and explore the possibility of more sound arrangement of disseminating outlook information system.
Data Source:
Primary data:
Primary data is the new or fresh data collected from the respondents through direct
interview using a pre-structured questionnaire.
 Personal Interview
 Close observation
 Survey conduction
Secondary data:
Secondary data may be obtained from many sources, including literature, industry
surveys, compilations from computerized databases and information systems, and computerized
or mathematical models of environmental processes.
I collected them by following method –
 Internet
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 Books
 Records
 Company website
Study design:
Data collection structure:
 Data Collection Instrument: Structured questionnaire
 Sample size : 300
 Sampling technique : Convenience sampling
 Study area : Bigbajaar ,kachiguda,Hyderabad
 Study period :27th
April 2015 to 27th
June 2015
Limitations of the study:
 The survey is limited to a particular area i.e.Kachiguda big bazaar.
 Collection of data is dependent on the information given by the respondents.
 The respondents are sometimes not giving exact information.
 Data is insufficient.
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Chapter-2
Profile of Retail Sector
Retailing:
The word ‘retail’ is derived from the French word ‘retailer’, meaning ‘to cut a piece off’ or
‘to break bulk’. In simple terms, it implies a first-hand transaction with the customer.
Retailing involvers a direct interface with the customer and the coordination of business
activities right from the concept or design stage of a product or offering to its delivery and post-delivery
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service to the customer. The industry has contributed to the economic growth of many countries and is
undoubtedly one of the fastest changing and dynamic industries in the world today.
Indian retail industry:
The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over
the last few years. Though initially, the retail industry in India was mostly unorganized, however with
the change of tastes and preferences of the consumers, the industry is getting more popular these days
and getting organized as well. With growing market demand, the industry is expected to grow at a pace
of 25-30% annually. The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to
Rs. 109,000 crore by the year 2010.
The retail scenario in India is unique. Much of it is in the unorganized sector, with over 12 million
retail outlets of various sizes and formats. Almost 96% of these retail outlets are less than 500 square
feet in size, the per capital retail space India being 2 squre feet compared to the US figure of 16 square
feet India’s per capital retailing space is thus the lowest in the world.
With more than 9 outlets per 1000 people, India has the largest number in the world. Most of them
are independent and contribute as much as 96% to total retail sales. Because of the increasing number of
the nuclear families, working women, greater work pressure and increased commuting time,
convenience has become a priority for Indian consumers. They want everything under one roof for easy
access and multiplicity of choice. This offers an excellent opportunity for organized retailers in the
country which account for just 2% and modern stores 0.5% of the estimated US Dollar 180 billion worth
of goods that are retailed in India every chain, Wal-Mart.
Growth of Indian retail industry:
According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India
retail industry is the most promising emerging market for investment. In 2007, the retail trade in
India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to
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12%. It is also expected to reach 22% by 2010.
According to a report by North bride Capita, the India retail industry is expected to grow to US$
700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It
can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market.
India is rapidly evolving into a competitive marketplace with potential target consumers in the niche
and middle class segments. The market trends indicate tremendous growth opportunities. Global majors
too are showing a keen interest in the Indian retail market. Over the years, international brands like
marks and spencer, Samsonite, Lacoste, McDonald’s, Swarovski, Domino’s among a host of others have
come into India through the franchise route following the relaxation of FDI (Foreign Direct Investment)
restrictions. Large Indian companies- among them the Tata, Goenka and the Piramal groups are
investing heavily in this industry.
Major Retailers in India:
Pantaloon:
Pantaloon is one of the biggest retailers in India with more than 450 stores across the country.
Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the country. It's
growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001,
Pantaloon launched country's first hypermarket ‘Big Bazaar’. It has the following retail segments:
• Food & Grocery: Big Bazaar, Food Bazaar
• Home Solutions: Hometown, Furniture Bazaar, Collection-I
• Consumer Electronics: e-zone
• Shoes: Shoe Factory
• Books, Music & Gifts: Depot
• Health & Beauty Care: Star, Sitara
• E-tailing: Futurebazaar.com
• Entertainment: Bowling Co.
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Tata Group:
Tata group is another major player in Indian retail industry with its subsidiary Trent, which
operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and
music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lake sq. ft retail space across the country.
RPG Group:
RPG Group is one of the earlier entrants in the Indian retail market, when it came into food &
grocery retailing in 1996 with its retail Food world stores. Later it also opened the pharmacy and beauty
care outlets ‘Health & Glow’.
Reliance:
Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores
and Reliance Mart are quite popular in the Indian retail market. It’s expecting its sales to reach Rs.
90,000 crores by 2010.
AV Birla Group:
AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Philippe,
Allen Solly, Van Heusen, and Peter England are quite popular. It's also investing in other segments of
retail. It will invest Rs. 8000-9000 crores by 2010.
Another big player in the segment will be the Bharti group. Overhauling this part of the supply
chain will be the key to the success of any retail venture in food and groceries segment.Wal-Mart, the
world’s largest retailer, and Bharti Enterprises have signed a Memorandum of Understanding (MoU) to
explore business opportunities in the Indian retail industry. This joint venture will mark the entry of
Wal-Mart into the Indian retailing industry a retail chain like Future Group’s Big Bazaar may be
clocking heady sales (growing at 100% year- on- year), but the dozen odd shops operating in its
proximity wear a deserted look, giving a somewhat hollow ring to the much- talked- about retail boom
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in the country. The key players currently operating in the Indian retail industry includes Future Group,
Trent Ltd, RPG Enterprise, Vishal Retail Ltd, Shoppers Stop Ltd, Bata India Ltd, Provogue India Ltd,
Videocon Appliances Ltd, ITC Ltd, Godrej Agrovert Ltd, and DCM-Hariyah Kissan Bazaar.
Retailers ranging from Pantaloon to RPG to Piramal’s or the Tata’s are working towards exploiting
this model, perceived by consumers as more value enhancing. But in the long run, what is most likely to
succeed is a more balanced multi-format strategy. Finally, while in the first flush of the retail boom, the
elimination of traditional intermediaries may bring windfall gains (as well as bring welcome and much-
needed relief to the producers), this source will increasingly dry out as competition intensifies and
margins come under pressure a few years down the line. What would set the survivors apart from those
who are forced to sell out or go belly-up will be differentiators like location, value-added services
(convenience), private labels and customer loyalty programs other than price. The last, a result of
retailer-manufacturer tie-ups, state-of-the-art supply chain infrastructure, global sourcing and scale will
be a key factor. And, if experience in other markets is anything to go by, an uncanny ability to read
shifting trends.
Retail formats in India:
Hyper marts /supermarkets:
large self-servicing outlets offering products from a variety of categories.
• Mom-and-pop stores: they are family owned business catering to small sections; they are
individually handled retail outlets and have a personal touch.
• Departmental stores: are general retail merchandisers offering quality products and services.
• Convenience stores: are located in residential areas with slightly higher prices goods due to the
convenience offered.
• Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of
products and services including entertainment and food under a single roof.
• E-trailers: are retailers providing online buying and selling of products and services.
• Discount stores: these are factory outlets that give discount on the MRP.
• Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small
items can be bought via vending machine.
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• Category killers: small specialty stores that offer a variety of categories. They are known as
category killers as they focus on specific categories, such as electronics and sporting goods. This
is also known as Multi Brand Outlets or MBO's.
• Specialty stores: are retail chains dealing in specific categories and provide deep assortment.
Mumbai's Crossword Book Store and RPG's Music World is a couple of examples.
Challenges facing Indian retail industry:
• The tax structure in India favors small business
• Lack of adequate infrastructure facilities
• High cost of real estate
• Dissimilarity in consumer groups
• Restrictions in Foreign Direct Investment
• Shortage of retail study options
• Shortage of trained manpower
• Low retail management skill
The retail industry in India is currently growing at a great pace and is expected to go up to
US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at
a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone
up and is also expected to go up further in the future. In the last four year, the consumer spending in
India climbed up to 75%. As a result, the India retail industry is expected to grow further in the
future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.
Categories of Indian Retailers:
Corporate Houses:
 Tata’s: Tata Trent
 RPG group: Food World, Health and Glow etc.
 ITC: Wills Life Style
 Raheja group: (Shoppers’ Stop), DLF (DT cinemas).
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 Nike, Rbk. Zodiac
 Multi-brand outlets
 Vijay Sales, Viveks etc.
 Manufacturers/ Exporters
 Pantaloons, Bata, Weekender
Classifying Indian Retailers:
1. Modern Format Retailers:
 Supermarkets (food World)
 Hypermarkets (Big Bazaar)
 Department Stores (shopper’s Stop)
 Specialty Chains (Ikea)
 Company Owned Company Operated
2. Traditional Format Retailers:
 Kiranas: traditional Mom and Pop Stores
 Kiosks
 Street Market
 Exclusive /Multiple Brand Outlets
3).Hypermarket:
 Big Bazaar
 Giants
 Shoprite
 Star
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4).Department:
 Lifestyle
 Pantaloons
 Pyramids
 Shoppers Stop
 Trent
5).Entertainment
 Fame Ad labs
 Fun Republic
 Inox
 PVR
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CHAPTER-3
COMPANY PROFILE
COMPANY PROFILE:
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading
business houses with multiple businesses spanning across the consumption space. While retail forms the
core business activity of Future Group, group subsidiaries are present in consumer finance, capital,
22
insurance, leisure and entertainment, brand development, retail real estate development, retail media and
logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million square feet
of retail space in 73 cities and towns and 65 rural locations across India. Headquartered in Mumbai
(Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges.
The company follows a multi-format retail strategy that captures almost the entire consumption basket
of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and
Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket
format that combines the look, touch and feel of Indian bazaars with the choice and convenience of the
customers.
In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a
hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore.
The group’s speciality retail formats include supermarket chain – Food Bazaar, sportswear retailer -
Planet Sports, electronics retailer - eZone, home improvement chain - Home Town and rural retail chain,
Aadhaar, amongothers.
Future Capital Holdings, the group’s financial arm provides investment advisory to assets worth
over $1 Billion that are being invested in consumer brands and companies, real estate, hotels and
logistics. It also operates a consumer finance arm with branches in 150 locations
Other group companies include, Future Generali, the group’s insurance venture in partnership with
Italy’s Generali Group, Future Brands, a brand development and IPR company, Future Logistics,
providing logistics and distribution solutions to group companies and business partners and Future
Media, a retail media initiative.
The group’s presence in Leisure & Entertainment segment is led through, Mumbai-based listed
company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and
family entertainment centres, F123. Through its partner company, Blue Foods the group operates
around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle
Bar, The Spoon, Copper Chimney and Gelato.
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Future Group’s joint venture partners include, US-based stationery products retailer, Staples and
Middle East-based Axiom Communications. Future Group believes in developing strong insights
on Indian consumers and building businesses based on Indian ideas, as espoused in the group’s core
value of ‘Indianness.The group’s corporate credo is, ‘Rewrite rules, Retain values.’
Future Retail:
Retail forms the core business activity at Future Group and most of its businesses in the
consumption space are built around retail. Future Group’s retail network touches the lives of more than
200 million Indians in 73 cities and 65 rural locations across the country. The group currently operates
around 1,000 stores spread over 16 million square feet of retail space. Present in the value and lifestyle
segments, the group’s retail formats cater to almost the entire consumption expenditure of a wide cross-
section of Indian consumers.
Led by Pantaloon Retail, the group’s flagship company, the group manages some of India’s most
popular retail chains like Pantaloons - a chain of fashion destinations, Big Bazaar - a uniquely Indian
hypermarket chain, Food Bazaar - a supermarket chain that blends the look, touch and feel of Indian
bazaars with aspects of modern retail like choice, convenience and quality and Central - a chain of
seamless destination malls. Some of its other formats include Ethnicity - India's first concept store,
which recreates the experience of a traditional ethnic market in a modern retail format, Brand Factory,
Planet sports, Star and Sitar.
Retailing of products and services related to home building and home improvement is led through
the group’s formats, Home Town, a large-format home solutions store, along with specialized formats
for home furniture and home furnishing through, Collection i and Furniture Bazaar and consumer
electronics through eZone and Electronics Bazaar.
The group also operates India’s leading rural retailing chain, Aadhaar that is present in over 65
locations in rural India. Aadhaar, an agri-service cum rural retail initiative, provides a complete solution
provider for the Indian farmer.
In 2007, Pantaloon Retail was awarded the International Retailer of the Year by the US-based
National Retail Federation (NRF) and the Emerging Market Retailer of the Year at the World Retail
Congress held in Barcelona.
24
Corporate Statements:
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, it 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 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 they need.
We will not just post satisfactory results, we will create 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.
Rewrite Rules, retain Values
Vision:
“Future Group shall deliver Everything, Everywhere, Every time for Every Indian consumer in the most
profitable manner.”
Mission:
25
 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 segment- for classes and for masses.
 We shall infuse Indian brand 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 Values:
 Indianness: confidence in ourselves.
 Leadership: to be a leader, both in thought and business.
 Respect & Humility: to respect every individual and be humble in our conduct.
 Introspection: Leading to purposeful thinking.
 Openness: to be open and respective to new ideas, knowledge and information.
 Valuing and nurturing relationship: 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.
Board of Directors:
Mr. Kishore Biyani, Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief
Executive Officer of Future Group.
26
Mr. Gopikishan Biyani, Whole time Director
Gopikishan Biyani is a commerce graduate and has more than twenty years of experience in the
textile business.
Mr. Rakesh Biyani, Whole time Director
Rakesh Biyani is a 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.
Mr. Vijay Biyani, Whole time Director
Vijay Biyani has more than twenty years of experience in manufacturing, textiles and retail industry
and has been actively involved in the financial, audit and corporate governance related issues within
the company.
Mr. Vijay Kumar Chopra, Independent Director
V.K.Chopra is a fellow member of The Institute of Chartered Accountants of India (ICAI) by
profession and is a Certified Associate of Indian Institute of Bankers (CAIIB). His banking career
spans over 31 years and he has served senior management positions in Central Bank of India,
Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI.
Mr. Shailesh Haribhakti, Independent Director
Shri 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 Co and Ceat Limited among others.
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Dr. D O Koshy, Independent Director
Dr. Darlie Koshy, a PhD from IIT Delhi and rank holder in MBA headed NID (Ministry of
Commerce, GOI) as Director for 2 terms of office prior to which he was the founding Chairperson of
Fashion Management at the National Institute of Fashion Technology (Ministry of Textiles, GOI).
He is currently the Director General & CEO of ATDC Network of 58 Institutes / Centers and two
premier campuses of Institute of Apparel Management under the aegis of AEPC (Sponsored by
Ministry of Textiles, GOI). Dr. Koshy received the Delhi IIT Alumni Award for contribution of
National Development in 2008. Dr. Darlie Koshy was also conferred with the “Star of Italian
Solidarity” one of the highest civilian awards of the Government of Italy. Dr. Koshy is the author of
three pioneering books including the much acclaimed “Indian Design Edge”.
Ms. Bala Deshpande, Independent Director
Bala Deshpande is Independent Director, Pantaloon Retail (India) Ltd. and also serves on the boards
of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing Ltd, among
others.
Mr. Anil Harish, Independent Director
Anil Harish is the partner of DM Harish & Co. Associates & Solicitors and an LLM from University of
Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bank and Hinduja TMT,
among others.
Company Timeline:
1987 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
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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 Company enters modern retail with the launch of the first 8000 square feet store,
Pantaloons in Kolkata.
2001 Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore
and Hyderabad.
2002 Food Bazaar, the supermarket chain is launched.
2004 Central - India’s first seamless mall is launched in Bangalore.
2005 Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League
Clothing and Planet Retail.Sets up India’s first real estate investment fund Kshitij to
build a chain of shopping malls.
2006 Future Capital Holdings, the company’s financial is formed to manage over $1.5
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 US office stationery
retailer, Staples.
2007 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 India’s most popular shopping portal.
2008 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.
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Companies of future group:
 Future Retail (India) Limited
 Home Solutions Retail India Limited
 Future Brands Limited
 Future Media (India) Limited
 Future Supply Chain Solutions Limited
 Convergem Communication (India) Limited
 Pantaloon Food Product (India) Limited
 Future Knowledge Services Limited
 Future Capital Holdings Limited
 Future Generali India Insurance Company Limited
 Future Generali India Life Insurance Company Limited
 Future bazaar India Limited
 Winner Sports Private Limited
 Staples Future Office Products Private Limited
 Talwalkars Pantaloon Fitness Private Limited
 ConvergeM
 Indus League Clothing
 Galaxy Entertainment Corporation Ltd
 Future Consumer Products Limited
 Future Ventures India Limited
Future Brands:
The Future Group has built a strong portfolio of some of the fastest growing consumer brands in India.
This activity is led through Future Brands India Limited, a specialized subsidiary company that was set
up to create and build powerful brands that address the aspirations of the new Indian consumer.
Some of the key brands in this portfolio include, John Miller, Lombard, Bare, DJ&C, Buffalo and RIG
in the fashion and apparel space. Dream line, present in the home segment, offers a wide range of
products in kitchenware, bed & bath linen, and Home Décor categories.
In the food and home care segment brands include Tasty Treat, Premium Harvest, Fresh & Pure, Care
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Mate and Clean Mate.
In consumer durables and electronics space, the group’s brands include Koryo and Sensei.
Line of Business:
The company is present across several lines of business which have various formats (stores) lywood,
The Doller store(JV).
 Fashion – Pantaloons, Central, All, Brand Factory, Blue Sky, Top 10, Fashion Station, Big
Bazaar, Lee Cooper (JV).
 General Merchandise – Big Bazaar, Shoe Factory, Navras, Electronics Bazaar, Furniture Bazaar,
KB’s Fair Price.
 Electronics- e-Zone, Staples (JV).
 Home improvement- Home Town
 Furniture – Collection I, Furniture Bazaar, Home Bazaar.
 E-tailing (Online Shopping).
 Books & Entertainment – Bowling Co., F123.
 Wellness – Star & Sitara, Tulsi.
 Telecom & IT – Gen M, M-bazaar, M-Port, and Converge M.
 Consumer Durables – Koryo, Sensei.
 Service – E-Care.
 Malls – TGIP, Central Gurgaon.
Big Bazaar India’s Real Retail Story:
Big Bazaar, the flagship retail chain of the Future Group, is on the verge of achieving a unique
milestone in the History of World retail- by being the first hypermarket format in the globe to rollout
fastest 101 stores in a short span of seven years.
Big bazaar’s journey began in October 2001, when the young first generation entrepreneur Kishore
Biyani opened The country’s first hypermarket retail outlet in Kolkata [Then Calcutta] .In the same
month, Two more stores were added – one each in Hyderabad and Mumbai, thus starting on a successful
sojourn which began the chapter of organized retailing in India.
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Speaking on this momentous occasion and remembering the days of conceptualizing the
hypermarket idea Mr. Kishore Biyani said, ‘’We initially decided to name the format as ‘’ Bazaar’’
because we had designed the store keeping the Indian mandi style in mind . since the size of the
hypermarket was big than an average mandi, the thought came to name it as ‘’ Big Bazaar ‘’ . However
we had freezed on the punch line ‘’ Is Se Sasta Aur Accha kahin Nahi’’ much before we met the creative
agency to design the final logo of Big Bazaar’.’
Though, Big Bazaar was started purely as a fashion format including apparel cosmetics, accessory
and merchandise, the First food bazaar format was added as shop-In shop within big bazaar in the year
2002. Today, Big Bazaar, with its wide range of products and service offering, reflects the aspirations of
millions of Indians.
The journey of Big Bazaar can be divided into two phases –one pre and the other post January 26th
,
2005 when the company rewrote the retail chapter in India, with the introduction of a never –before
sales campaign ‘’ Sasbe Sasta Din’’ In just one day , almost the whole of India descended at various
Big Bazaar stores In the country to shop at their favorite shopping destination. Further, what followed
was the time and again rewriting of the Indian Retail experience wherein understanding of the Indian
consumers reflected in the products and services offered, creating innovative deals, expanding in the tier
II and tier III towns, tying up with branded merchandise to offer exclusive products and services to its
customers.
Big Bazaar is present today in 59 cities and occupying over 5 million sq. ft. retail space and
driving over 110 million footfalls into its stores. The format is expecting the number of footfall in the
stores to increase by over 140 million by this financial year . Over the years , Mr. Biyani for his vision
and leadership, and Big Bazaar for its unique proposition to its customers’, have received every
prestigious consumer awards both nationally and internationally.
Says Rajan Malhotra, President, Strategy & Convergence, Big Bazaar, “what is important in our
journey is not the number of stores, but the customers’ faith in us. It’s the India and the Indians, which
have helped us, reach this feat in such a short time span and today our country is creating a history in the
word organized retail.
Rajan Malhotra, who is also the first employee of Big Bazaar, joining the organization in early 2001
adds, “Since beginning, we have kept Big Bazaar as a soft brand, which reflects the India and the
Indianness. We believed in growing with the society, participating and celebrating all regional and local
community festivals, giving customers preferences above everything else.”
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Every Big Bazaar is a small family by its own and the head of the family – Karta- is the store
manager. Kishore Biyani, the CEO of the Future Group, has a vast understanding of the consumer’s
insight, has inculcated the habit of observing, understanding customers, in every employee of the group.
Future Group is confident of the Indian Retail Story. The group has not slowed down its expansion
plans depite the fiscal woes in the economy present today. Future Group plans to have 300 stores and is
expecting revenues of Rs 13,000 crore by year 2011.
About Big Bazaar:
Type : Hypermarket type
Founded : 2001
Industry : Retail
Product : Department store
MD & CEO: Mr. Kishore Biyani
Parent : Future Group
Website : www.bigbazaar.com
Big Bazaar is a chain of hypermarkets in India, with more than 100 stores in operations. It is a
subsidiary of Pantaloon Retail India Ltd, Future Group, offers a wide range of products including
clothing, footwear, electronic appliances, groceries and kitchen utensils. You can also buy branded
stuff from Reebok, Nike and Puma here. It caters to every need of your family. Where Big Bazaar
scores over other stores is its value for money proposition for the Indian customers.
The word hypermarket is derived from the French word hypermarket, which is a combination of a
supermarket and department store.
The stores occupy an area which ranges from anywhere between 80000 to 220000 sq. ft. and offer a
variety of food products like clothes, jewelry, hardware, sports equipment, books, CDs, DVDs, TVs,
electrical equipment and computers etc.
Hypermarkets are today synonymous with one stop shopping. The cheapest prices will normally
be found in these stores. Across three world, hypermarkets are usually part of a retail park, along with
other shops, cafeterias and restaurants. A key element of differentiation between the hypermarket and
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the other retail formats is that they typically have destination locations. The hypermarkets are
designed to attract customers from a significantly large area with their low price offers, unique range
and offers. It is the largest form of organized retailing today. It is an ideal shopping experience with
an amalgamation of product, service and entertainment all under of a common roof.
The company has been able to leverage on its multi-formats-multi-brand stores, secure prime
locations at the best possible prices and command a strong bargaining power with suppliers, which
provide it an edge over its competitors.Customers come in Big Bazaar for purchasing, entertainment
and pacing here and there.It gives many facility to the customers like; Helpline, Baggage Counter,
Parking, Exchange etc. big Bazaar trying to provide customer with 3V’s
• Value
• Variety
• Volume
Big Bazaar has different categories; such as
• Food Bazaar
• Apparels
• General Merchandise:- At Big Bazaar, you will definitely get the best products at the best prices-
that’s what it guarantees. With the ever increasing array of private labels, it has opened the doors
into the world of fashion and general merchandise including home gurnishings, utensils,
crockery, cutlery, sports goods and much more at prices that surprise us. Here we talk about the
department stores, because Big Bazaar based on the departments.
Department Stores:
Carry broad variety and deep assortment organized into separate deparment for displaying
merchandise.
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Major departments includes:
• Utensils
• Plastics
• Home décor
• Luggage
• Toys
• Footwear etc.
Chains are very diverse and appeal to different markets. They are unique in terms of the shopping
experience they offer, the services they provide and the atmosphere of the store. They are promotion-
oriented. They increase competition with discount and specialty stores creating problems.
Store Organization:
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MARKETING MIX OF BIG BAZAR:
Retail Marketing Mix:
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Store
Manager
Assistant
Store Manager
Operational
Manager
Department
Manager
Additional
Department Manager
Team Leader
Team Member
The basic function of retail is to provide the right goods to the consumer, at the right place and time.
Through the retail marketing mix we can compete with our competitors and achieve the sales target. The
marketing tools that a retail organization uses to pursue its marketing objectives are termed as the retail
marketing mix.
The channels are illustrated in figure given below:
Product:
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Retail
Marketing
Mix
People
Product
Place Presentation
Promotion
Customer
Service
Price
One of the main elements of the retail marketing mix is the products and /or services that store offers
to the customer.
Products are also termed as merchandise. The different products that the store offers are together termed
as the merchandise mix.
For example, if we consider the Fashion at department store, the merchandise line comprises:
• Mans wear
• Mans accessory
• Party wear
• Ladies wear
• Kids wear
• Home fashion
Price:
Pricing is an integral part of the retail marketing mix. The price policy that the organization decides to
follow depends on the customer profile of the target audience for its range of products. Big Bazaar gives
the good price to the customer .price makes the good relationship to the customers. Big Bazaar has a
punch line “Isse Sasta Aur Accha Kahin Nahi”
It gives the high discount on the price like; foods products (20%, 25%, 35%), non food products
(10%, 20%, 35%), buy one get one free Top Price, buy 3 get one free Park Avenue soap, etc.
Big Bazaar gives many offers to the customer like; the great Indian festival Big Days, Sabse Saste 3 Din,
etc. In these types of days it gives the huge discount on the products.
Place:
The location of the retail store was considered to be the most important element of the retail marketing
mix.Big Bazaar is situated at premier location in kachiguda, Hyderabad, where Levis, E-Zone, Cafe
Coffee Day, and Reebok like stores are situated. It is the best place for Big Bazaar.
Promotion:
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The advertising budget, sales promotion, publicity and the public relations play a very important role in
the competitive world of retailing .these help the store to achieve the short term goals. Promotion may
be price led or occasional led, in which case special merchandise offered by the stores only for the
occasion. Most retail organization run promotions during festival seasons Big Bazaar also provides the
promotional offers on festival like Diwali, New Year, ID, Valentine day, etc. Discounts depend on the
products.
Presentation:
The manner in which the merchandise is presented at the store level is very important. This aspect not
only deals with the store layout and the ambience created, but also with visual merchandising. Visual
merchandising is the orderly, systematic way of putting stock on display in the retail store.
Big Bazaar presents the store as per the season and occasions like; on Diwali store is decorated
with candles and flowers, on Christmas store is decorated with stars, ribbons, balloons, Christmas tree
and on Independence Day and Republic Day store is decorated with green, orange, and white balloons,
etc. that attract the customers.
Customer Service:
The support services that a retailer offers have become very important today. The credit policies and the
product returns policies need to be clear marketing, buzzwords in the industry today and all these are
aimed at enhancing customer service.
In the Big Bazaar, the product range is good and availability of the products is very easy. Bag
Bazaar provides the low price comparison to the other retailers. Big Bazaar provides the good services
to their customer like; baggage counter, parking, product, help line, etc.
People
Retailers operate in a unique environment. The retail industry is characterized by a large number of
inexperienced workers, who need to put in long hours of work. Most of the time, these employees are in
direct contact with the customer and may face irate or unreasonable customer.
The people who work at the front-end of a retail organization are very important, as they are the
manners and products knowledge plays a very important role in building long –term relations with the
customer
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SWOT Analysis of Big bazaar:
Strengths:
• Better understanding of customers helping the company to serve them better.
• Vast range of products under one roof helping in attracting customer and their family to shop
together and enjoy the experience.
• Benefit of early entry into the retail industry.
• Diversified business operating all over India in various retail formats.
• Ability to get products from customers at discounted price due to the scale of business.
Weaknesses:
• High cost of operation due to large fixed costs.
• Very thin margin.
• High attrition rate of employee
Opportunities:
• Lot of potential in the rural market.
• Can enter into production of various products due to its in depth understanding of customers’ tastes
and preferences.
• Can expand the business in smaller cities as there is a lot of opportunity.
Threats:
• High business risk involved.
• Lot of competitors coming up to tap the market potential.
• Margin of business reducing all the time.
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CHAPTER-IV
THEORETICAL FRAME WORK ON
CATEGORY MANAGEMENT
THEORETICAL FRAME WORK ON CATEGORY MANAGEMENT:
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Categories:
• A group of products with similar attributes
• Distinct from other products but not necessarily among themselves
• Can be substituted by each other
• Stores, stacked and sold in a similar manner
We can therefore Sum up :
A category is a group of products which meet a similar consumer need so that the products are
inter-related or substitutable.
Examples – Juices, Shaving products, Inner wear, Toys and Games
A Category is a group of similar or related items which the customer would ideally like to find
together in a store. Categories are mainly used as organizational aids to better manage and monitor
predefined groups of products.
Category Management:
Category management is the process by which a retail business is managed with the objective of
maximizing the sales and profits of a category.
It is a distributor/supplier process of managing categories as strategic business units, producing
enhanced business results by focusing on delivering consumer value.
• Categories are managed as strategic business units
• Categories are managed strategically through category plans and strategic roles
• Category Managers control their share of company assets
• Asset Returns measure performance and establish priorities
• In a competitive business just organized and proficient chains will stay on the market.
• A huge complexity behind the workflows imposes to approach the business considering each
category as a single business, in order to decrease the whole complexity.
• So it's important ensure a managing system for each category through strategies of pricing,
promotion, assortment and exposure aiming achieve results of sales and margins.
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• Category Management is a process of maximizing sales and profits while enhancing product
value and customer experience.
• It is achieved through active involvement of all stake holders Manufacturer, retailer and
customer
• While it is a business requirement for the retailer and manufacturer to partner with each other,
the customer is engaged by the retailer in order to understand buying behavior and preferences
to achieve more from less.
• The value thus captured is retained partially by the retailer and is passed on in good measure to
the customer to gain competitive advantage
• Category management is not an event but a continuous process of course correction through
performance measurement and action.
Category Management includes:
1) Space Planning:
Considerations for Layout Decisions:
• High margin items should be placed in high traffic areas.
• High demand items should be placed in low traffic areas.
• Complementary items should be placed near each other.
• Seasonal needs should be considered.
• Items needing frequent restocking should be placed near storerooms or cash registers.
• Larger departments should be placed in lower traffic areas.
• Impulse items should be placed in closer to billing.
• Shopping behavior and operational considerations should be recognized.
Benefits of Space Planning:
• Inviting store layout improves walkins into the store.
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• Improved circulation space within the store allowing for accessibility to all products. Improved
conversion rates by better product visibility and display.
• Reduction in shrinkage.
• The store layout can impact the customer’s perception of the store’s positioning.
2) Assortment Planning:
Assortment Plan or the Merchandise Mix is rated around the globe as the second most important
factor for a store, after its location. The assortment plan defines the revenue stream, impacting not
only the top lines and bottom lines but also the working capital locked in inventory.
Key Deliverables of an Assortment Plan:
• Required Average Revenue/sft.
• Required Gross Margin
• Required Average Ticket size
• Required Stock cover based on demand forecast
• Suitable product as per catchment analysis and target customer profile. Based on competition
study, merchandise mix should define the store’s USP.
3) Visual Merchandising:
“Visual merchandising”, the art of attracting patrons with visual cues, is central to a retailer’s
ability to generate sales. Visual Merchandising got its start at the turn of the century, when
department stores began using theatrical set design and lighting to create exotic displays. Today,
the way the departments are arranged, the location of the escalators, the lighting--all are carefully
planned to earn the store more sales per square foot.
Store Display Decisions:
• Shelving
• Hanging
• Pegging
• Folding
• Stacking
• Dumping
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• Value/fashion image
• Angles and sightlines
• Vertical color blocking
• Fixture Types
• Merchandise Presentation Planning
• Selecting Fixtures for Merchandise
• Visual Merchandising
4) Visual communication:
• Category signage:
Category signage helps consumers negotiate thought the store to find the product
categories they are looking for. The size of the category signage varies widely from a lettering
that is a few feet in height to merely inches.
• Plannogramming:
A planogram is a diagram that shows how and where specific retail products should be
placed on retail shelves or displays in order to increase customer purchases. Planogramming is
a skill used in merchandising and retail space planning.
Planogramming Benefits:
• Improved sales presentations & closure results.
• Increased consumer appeal of product displays
• Better brand awareness through consistency
• Improved efficiency of shelf space allocations
• Improved financial performance of assortments
• Faster, more accurate replenishments
• Quicker inventory resets
• Much better marketing through targeted displays
5) Inventory management:
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There are two types of systems in inventory management.
 Inventory in a PUSH system is managed at the corporate level where all buying decisions
are made and then pushed to the distribution centers for allocation to stores.
 Inventory in a PULL system involves store requirements to be consolidated at the
corporate level via the distribution center an then procured.
Six Components of Category Management:
 Core Components(essential):
• Strategy
• Business Process
 Enabling Components (assisting)
• Scorecard
• Organization Capability
• Information Technology
• Collaborative Relationships
•
1. Strategy:
Categories are strategic business units,
Overall company strategies provide a infrastructure for category level strategies,
Strategies must be clearly understood throughout the Retailer’s organization.
The Strategic Promotional Process:
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2. Organizational Capability:
• Development of the organization’s core competency
• Through organizational structure
• Roles/Responsibilities
• Skill/Knowledge development
• Reward Systems
3. Information Technology:
• Critical elements of the Category Business Planning Process
• Need data-driven, fact-based analysis and performance measurement
4. Collaborative Relationships:
• Relationships with suppliers who acquire unique perspectives, resources and skills
• Common objective -- delivering superior consumer value more profitability.
The Category Management Process:
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Category Management is underpinned by a structured process which provides a framework for
retailer & supplier to work together strategically. A formal 8-step category management process was
developed just over a decade ago by the Partnering Group.
1).Category Definition:
• Category Definition is the 1st step in the procedure. The definition of the category has a
significant impact on the subsequent steps. A category definition ought to be based on how the
customer buys, and not on how the retailer buys.
• The trading partners need to define the new category with a name
What is it?
What are the sub-categories?
• By Brand:
Branded
National Brand
Local Brand
• Private Label
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Economy/Value
Premium
• By Usage
Fresh
Canned
Juice concentrates
2. Category Role:
• The distributor (with supplier input) would define the overall role the selected category is
going to play in the distributor’s total business
How important is the category?
How to leverage the importance?
• The category role determines the priority and the importance of the numerous categories in the
overall enterprise. These aids in resource allocation. Traditionally, four categories have been
identified. They are:
 Destination category:
To be the primary category provider and help define the retailer as the store of choice by
delivering consistent, superior target consumer value.
 Routine category:
To be one of the preferred category providers and help develop the retailer as the store of
choice by delivering consistent, competitive target consumer value
 Occasional/Seasonal category:
To be a major category provider, help reinforce the retailer as the store of choice by
delivering frequent, competitive target consumer value.
 Convenience category:
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To be a category provider and help reinforce the retailer as the store of choice by delivering
good target consumer value
3. Category Assessment:
In this step, the existing performance of the category is evaluated with respect to the turnover,
profits and return on asses in the category. It involves an assessment of the buyers, the
marketplace, the retailer and the suppliers.
Comparing internal and external data it is possible to find points of strength and points of
weakness:
- Market Share for each category (Fair Share);
- Market Share for leader brands;
- Market Share for private labels;
- Frequency and Sales in cut prices;
- Number of SKUs in each Category;
- Price Average;
- Margins;
- SKUs opportunities in the market.
• Identifying Gap between current and potential sales:
We can understand clearly with the following example
The following points are considered in a category assessment
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Category Fruits and vegetables
Market Bangalore
Store Food world
Total sales:Bengalore market(millions) INR3,ooo
Total sales: Food world store(millions) INR54
Food world market share: Total groceries 6%
Food world market share: Fruits and Vegetables 1.8%
Gap (%) 4%
• Who is the Target customer?
• What Inventory is required to sell profitably
• How Much Shelf Space is allotted
• If we use the same space for something else what margins can be generated
• Is there an impact on sale of other categories
• How much stock is sold on promotion
• Shrinkage and pilferage constitute what percentage of margin
• Is there any Non Sales Revenue being Generated
• Is there a Potential for growth.
4. Scorecard or Category Performance Measures:
• Establishment of the performance measures by which the category manager will
measure the quality of the execution of the plan
• What are the goals & objectives?
• How is the progress?
• The development of category performance measures involves the setting of
measurable targets in terms of sales, margins and Gross Margin Returns on
Investment (GMROI).
5. Category Strategies:
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Typical Category performance
measures include:
• Sales
• Profits
• Market Share
• Inventory Turnover
• Changes in the Assortment
• Consumer Transactions
Good performance measures
are characterized by:
• A balanced Architecture of
Measurement
• Total system
• Allow for comparison of
Performance Over time
• Timely, Accurate,
The purpose of this step is to help the retailer and supplier to develop methods that capitalize on
category opportunities by means of creative and efficient use of the resources that are accessible to
the category. Category strategies can be aimed at developing traffic or transactions, generating
cash, generating profit, enhancing the image or developing excitement. Every strategy aims to
decrease market share of unprofitable brands, improving share of profitable ones. How? Defining
promotions, prices, and exposures in order to influence the consumer choice.
The seven most typical category marketing strategies are:
• Traffic Building
• Transaction Building
• Turf Defending
• Profit Generating
• Cash Generating
• Excitement Creating
• Image Enhancing (Price, Quality, Service & Variety)
Every strategy should be declined in 4 kinds of actions:
Assortment, Price, Promotion, Exposure. Depending of the role we can identify:
Price: Medium competitiveness Price: High competitiveness
compared with compared with all the competitors
main competitors
Promotion focus on cut prices Promotion deep cut prices
Exposure spaces in line with sales. Exposure overdimension the spaces.
focus on margins. focus on the niches.
best areas.
Assortment number of products in line with the Assortment Number of products higher
market. specific role for cheaper than the market.
products and private labels. Many premium brands and
exclusive ones.
Price: Less competitive than Price: Medium competitiveness
main competitors
Promotion No promotions Promotion few promotions
good margin
Exposure Worst store areas Exposure correctly dimension the spaces.
good areas.
Assortment narrow assortment Assortment narrow assortment
no private label private label in core segments
no premium prices deep of premium prices
Routine
Destination
Convenience
Occasional
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Category Targets :
We have to set targets in terms of gross margin (sales x margin%). Managing the sales mix is
the best way to achieve our targets. So we need to influence the sales of every brand .
6. Category Tactics:
• Specific activities supporting the category strategies which would include item variety,
every day and feature price targets, shelf presentation, etc.
• Category tactics are developed in the areas of assortment pricing, promotions and the
presentation of the merchandise in the store
Category Tactics Components:
 Assortment
 Pricing
 Promotion
 Shelf Presentation
 Product Supply
• Product based Tactics
 Pack of 3 briefs @ Rs 99 with 10 % margin
 Rs. 20000 wedding collection Sherwani
 Exclusive range of Leather footwear
 Fast Moving Consumer goods – Toothpaste, Diapers
• Operational Tactics
 High stacks in the action alley to give feel of plenty
 Exclusive Boutique look with pictures of Models
 Wide range of Leather Shoes in all possible color, size and brand options
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7. Category Plan implementation:
A specific implementation schedule is developed and responsibilities are assigned. Accurate
implementation is the key to the success of the Category Management.
Key Components of Plan Implementation
 Approval Process
 Strategic Fit
 Scorecard Impact
 Resource Allocation
 Impact on Other Areas
 Assigning Responsibilities
 Scheduling
8. Category Review:
Ongoing review and measurement of the progress of the plan toward the category role and
scorecard, and modification of the plan when appropriate.
Can be a 3 stage process:
 Research and opportunity identification
 Creation and implementation
 Metrics, correction and learning
The Category Captain:
 Category captains is a supplier who forms an alliance with the retailer to enable the latter to
develop consumer insight , satisfy consumers and improve performances and profit across
the entire category.
 Category captains receive downstream data for all SKUs, including competitor products, in
the category they manage. The category captain advises the retailer on the best way to
price, display, and promote all products in a category, including those of competitors.
54
While this arrangement ensures retail efficiency, it does raise concerns about possible
misuse of power by the category captain.
After the category review step again they go to first step and it is a cyclical process.
Objectives of the category management:
• Remove unnecessary costs by re-engineering promotional practices.
• Aligning supplier and distributor operations to retailer’s marketing strategy to support changes
in demand.
• Joint business planning.
• Shared data on consumers, sales and products.
• Retailer knowledge of customers, and purchasing behaviour.
• Supplier knowledge of who purchases, their wants, and behaviours.
• Mind-set change; suppliers focus on growth of whole category, including competitor brands,
• Combine knowledge and skills to provide ideal category offer at point of purchase
• Communication between managers at all supply chain levels
• Balance customer needs with commercial, financial and strategic objectives.
55
CHAPTER-V
DATA ANALYSIS AND INTERPRETATION
56
Data Analysis:
The tools and methods of data collection identified earlier were employed to gather data on the
consumer perception on Big Bazaar. The data accrued, especially from the interviews and questionnaires
circulated, are tabulated and depicted on graphs in the following pages. The data thus gathered and
tabulated is analyzed. The data is then scrutinized and relevant interpretations are drawn.
The major objectives of analysis of data are:
1. To evaluate and enhance data quality
2. Examine effects of other relevant factors
3. Customer satisfaction ratio,
4. Level of satisfaction,
5. Causes of dis-satisfaction,
6. Customer responses regarding services.
The data collection plan, including procedures, instruments, and forms, was designed and pre-tested to
maximize accuracy. All data collection activities were monitored to ensure adherence to the data
collection protocol and to prompt actions to minimize and resolve missing and questionable data.
Monitoring procedures were instituted at the outset and maintained throughout the study, since the faster
irregularities can be detected. The greater the likelihood that they can be resolved in a satisfactory
manner and the sooner preventive measures can be instituted.
57
Q. 1) Gender:
Table No -1:
S.NO OPTIONS No. of Respondents % of Respondents
1 Male 114 38%
2 Female 186 62%
3 Total 300 100%
Graph No-1:
Interpretation:
It can be seen from the table no.1, out of the total respondents 38% of the respondents are males,
62% of the respondents are females.Most of the respondents are females.
58
Q. 2) Age of the respondents:
Table No-2:
Graph No-2:
59
S.NO OPTIONS No. of Respondents % of Respondents
1 13-19 years 61 20%
2 20-30years 180 60%
3 30-40years 38 13%
4 40-50years 17 6%
5 Above 50years 4 1%
6 Total 300 100%
Interpretation:
It can be interpreted from the table no.2,out of the of the total respondents 20% of the respondents
age is 13-19 years ,60% of the respondents are 20-30 years,13% of the respondents are 30-40 years ,
6% of the respondents are 40-50 years and only 1% of the respondents are above 50 years age. Most
of the respondents age group is 20-30 years.
Q.3) Occupation:
Table No-3:
sssS.no OptionsoOccupation No.of Respondents % % of
Respondentsdents
1 Unemployed/Students 98 33%
2 Employed 132 44%
3 Business People 70 23%
4 Total 300 100%
Graph No-3:
60
Interpretation:
It can be observed from the table no.3,out of the of the total respondents 33% respondents are
Unemployed/students ,44% respondents are Employed and 23% respondents are
Business people .Most of the respondents are Employed.
Q. 4) Education of Respondents:
Table No-4:
S.no Options No.of respondents %of Respondents
1 Primary Education 6 2%
2 Secondary Education 29 10%
3 Higher Secondary/Diploma/ITI 51 17%
4 Graduation( UG) 110 37%
5 Post graduation( PG) 92 31%
6 Higher than PG 12 4%
7 Total 300 100%
Graph No-4:
61
Interpretation:
It can be seen from the table no.4,out of the of the total respondents 2% of the respondents education
is primary education ,10% of the respondents education is secondary education,,17% of the
respondents are higher secondary education ,37% of the respondents are graduates,31% of the
respondents are post graduates and 4% of the respondents education is higher than Pg.Most of the
respondents age Graduates.
Q 5) Income of the Respondents:
Table No-5:
Graph No-5:
62
S.no Options Respondents %of Respondents
1 Less than Rs.15000/- 3 1%
2 Between Rs.15000/-and Rs.30000/- 23 8%
3 Between Rs.30000/-and Rs.50000/- 90 30%
4 More than Rs.50000/- 184 61%
5 Total 300 100%
Interpretation:
It can be observed from the table no.5, out of the total respondents 1% of the respondents annual
income level less than Rs.15,000/- , 8% of the respondents annual income level Rs.15,000/-
-Rs.30,000/-, 30% of the respondents annual income levels between Rs.30,000/- and Rs.50,000/-,
61% of the respondents annual income levels are above Rs.50,000/-.Most of the respondents are
more than Rs.50,000/- annual level income customers.
Q.6) Size of the family:
Table No-6:
S.no Options No of Respondents % of Respondents
1 Two 28 9%
2 Three 45 15%
3 Four 119 40%
4 Five 69 23%
63
5 Six 39 13%
6 Total 300 100%
Graph No-6:
Interpretation:
It can be interpreted from the table no.6,out of the of the total respondents 9% of the respondents family
size is two ,15% of the respondents family size is three,40% of the respondents family size is
four,23% of the respondents family size is five,13% of the respondents family life cycle is six. Most
of the respondents family size is four.
Q.7) Frequency of Shopping:
Table No-7:
S.no Options No.of Respondents %of Respondents
1 Daily 5 2%
2 Weekly 52 17%
3 Biweekly 64 21%
4 Monthly 39 13%
5 Bimonthly 88 29%
6 as per requirement 52 17%
7 Total 300 100%
64
Graph No-7:
Interpretation:
It can be seen from the table no.7, out of the of the total respondents 2% of the respondents shopping
frequency is Daily,17% of the respondents shopping frequency is Weekly,21% of the respondents
shopping frequency is Biweekly,13% of the respondents shopping frequency is Monthly,29% of the
respondents shopping frequency is Bimonthly, 17% of the respondents shopping frequency is as per
their requirement. Most of the respondents do shopping bimonthly.
Q.8) most preferred time of shopping:
Table No-8:
S.no Options No.of respondents % Of Respondents
1 First week of month 128 43%
2 2nd week of month 89 30%
3 Lastweek of month 32 11%
4 As per requirement 51 17%
5 Total 300 100%
65
Graph No-8:
Interpretation:
It can be observed from the table no.8,out of the of the total respondents are 43% of the respondents
preferred time of shopping is First week of month,30% of the respondents prefers to shop in 2nd
week
of the month ,11% of the respondents prefer to shop on Last week of the month ,17% of the
respondents prefer to shop as per their requirement. Most of the respondents prefer to shop on first
week of the month.
9) Amount spent for month:
Table No-9:
S.no Options No.of Respondents %of Respondents
1 Less than Rs.1000/- 39 13%
2 Between Rs.1000/-toRs.5000/- 152 51%
3 Between Rs.5000/-toRs.10000/- 61 20%
4 More than Rs.10000/- 48 16%
5 Total 300 100%
Graph No-9:
66
Interpretation:
It can be interpreted from the table no.9,out of the of the total respondents are 13% of the respondents
spent Less than Rs.1000/- for shopping, 51% of the respondents spent between Rs.1000/- - Rs.5,ooo
for shopping, 20% of the respondents spent between Rs.5,000/- - Rs.10,ooo for shopping,16% of the
respondents spent more than Rs.,10000/-for shopping. Most of the respondents spent between
Rs.1000/- - Rs.5,ooo for shopping.
10) Distance from outlet:
Table No-10:
S.no Options No.of Respondents %Of Respondents
1 Less than 1 k.m 62 21%
2 Between 1k.m-3 k.m 82 27%
3 Between 3k.m-5 k.m 102 34%
4 5 k.m-10 k.m 43 14%
5 More than 10 k.m 11 4%
6 Total 300 100%
67
Graph No-10:
Interpretation:
It can be seen from the table no.10,out of the of the total respondents are 21% of the respondents are
Less than 1km distance from outlet, 27% of the respondents are between 1km-3km distance from
outlet, 34% of the respondents are between 3km-5km distance from outlet, 14% of the respondents
are between 5km-10km distance from outlet and 4% of the respondents are more than 10km distance
from outlet. Most of the respondents are between 3km-5km distance from outlet.
11) Family Lifecycle Stage:
Table No-11:
S.no Options No.of respondents %of Respondents
1 Younge couple with no children 28 9%
2 Couple with Children 79 26%
3 Couple with working Children 69 23%
4 Old couple working children with kids 34 11%
5 Old couple staying away from children 29 10%
6 Any other 61 20%
7 Total 300 100%
68
Graph No-11:
Interpretation:
It can be observed from the table no.11,out of the of the total respondents are 9% of the
respondents family life cycle stage is Young couple with no children, 26% of the respondents
family life cycle stage is couple with children, 23% of the respondents family life cycle stage is
couple with working children, 11% of the respondents family life cycle stage is old couple
working children with kids, 10% of the respondents family life cycle stage is old couple staying
away from children , and 20% of the respondents family life cycle stage is any other. Most of
the respondents family life cycle stage is couple with children.
12) Number of product categories available in the store are good?
Table No-12:
S.no Options No.of Respondents % of Respondents
1 Strongly agree 66 22%
2 Agree 152 51%
3 Slightly agre 44 15%
4 Disagree 38 13%
5 Strongly disagree 0 0%
6 Total 300 100%
Graph No-12:
69
Interpretation:
It can be interpreted from the table no.12, out of the of the total respondents are 22% of the
respondents are strongly Agreed, 51% of the respondents are Agreed, 15% of the respondents
are slightly agreed, 13% of the respondents are Disagreed, no one of the respondents are
Strongly Disagreed with that the Number of product categories available in the store are
good .Most of the respondents are Agreed with this statement
.
13) I know where the category is starting on the shop floor .
Table No-13:
S.no Options No.of Respondents % of Respondents
1 Strongly agree 31 10%
2 Agree 141 47%
3 Slightly agree 77 26%
4 Disagree 46 15%
5 Strongly disagree 5 2%
6 Total 300 100%
70
Graph No-13:
Interpretation:
It can be seen from the table no.13, out of the of the total respondents are 10% of the
respondents are strongly agreed, 47% of the respondents are Agreed, 26% of the respondents
are slightly agreed, 15% of the respondents are Disagreed, 2% of the respondents are Strongly
Disagreed with the question “I know where the category is starting on the shop floor”.Most of
the respondents are Agreed to this question.
14) I know where the category is ending on the shop floor.
Table No-14:
71
S.no Options No.of Respondents %of Respondents
1 Strongly agree 31 10%
2 Agree 131 44%
3 Slightly agree 87 29%
4 Disagree 46 15%
5 Strongly agree 5 2%
6 Total 300 100%
Graph No-14:
Interpretation:
It can be observed from the table no.14, out of the of the total respondents are 10% of the
respondents are strongly agreed, 44% of the respondents are Agreed, 29% of the respondents
are slightly agreed, 15% of the respondents are Disagreed, 2% of the respondents are Strongly
Disagreed with the question “I know where the category is ending on the shop floor”. Most of
the respondents are agreed to this question.
15) There is a good identification /Signage boards about categories
which are available.
Table No-15:
72
Graph No-15:
Interpretation:
It can be interpreted from the table no.15, out of the of the total respondents are 9% of the
respondents are strongly agreed, 26% of the respondents are Agreed, 46% of the respondents
73
S.no Options No.of Respondents %of Respondents
1 Strongly agree 26 9%
2 Agree 78 26%
3 Slightly agree 138 46%
4 Disagree 49 16%
5 Strongly disagree 9 3%
6 Total 300 100%
are slightly agreed, 16% of the respondents are Disagreed, 3% of the respondents are Strongly
Disagreed with the Identification/Signage boards about categories which are available are good.
Most of the respondents are agreed to this.
16) There are clear price tags on each product on a category.
Table No-16:
Graph No-16:
74
S.no Options No.of Respondents %of Respondents
1 Strongly agree 3 1%
2 Agree 56 19%
3 Slightly agree 148 49%
4 Disagree 88 29%
5 Strongly disagree 15 5%
7 Total 300 100%
Interpretation:
It can be seen from the table no.16, out of the of the total respondents are 1% of the
respondents are strongly agreed, 19% of the respondents are Agreed, 49% of the respondents
are slightly agreed, 29% of the respondents are Disagreed, 5% of the respondents are Strongly
Disagreed with that the price tags on each product of each category are good. Most of the
respondents are slightly agreed with this.
17) There are good numbers of brands available in each category.
Table No-17:
75
S.no Options No.of Respondents %of Respondents
1 Strongly agree 89 30%
2 Agree 153 51%
3 Slightly agree 46 15%
4 Disagree 12 4%
5 Strongly disagree 0 0%
6 Total 300 100%
Graph No-17:
Interpretation:
It can be observed from the table no.17, out of the of the total respondents are 30% of the
respondents are strongly agreed, 51% of the respondents are Agreed, 15% of the respondents
are slightly agreed, 4% of the respondents are Disagreed, no one of the respondents are
Strongly Disagreed with that there are good number of brands available in each category. Most
of the respondents are agreed with this.
18) The products in each category are arranged in a systematic manner like price
wise,brand wise,quantity wise etc.
Table No-18:
76
Graph No-18:
Interpretation:
It can be interpreted from the table no.18, out of the of the total respondents are 8% of the
respondents are strongly agreed, 26% of the respondents are Agreed, 38% of the respondents
77
S.no Options No.of Respondents %of Respondents
1 Strongly agree 23 8%
2 Agree 79 26%
3 Slightly agree 115 38%
4 Disagree 72 24%
5 Strongly disagree 11 4%
6 Total 300 100%
are slightly agreed, 24% of the respondents are Disagreed, 4% of the respondents are Strongly
Disagreed with that there are good number of brands available in each category. Most of the
respondents are slightly agreed with this.
19) The store provides all required product categories as far as my
needs and wants are concern.
Table No-19:
Graph No-19
78
S.no Options No.of Respondents %of Respondents
1 Strongly agree 81 27%
2 Agree 156 52%
3 Slightly agree 43 14%
4 Disagree 20 7%
5 Strongly disagree 0 0%
6 Total 300 100%
Interpretation:
It can be seen from the table no.19, out of the of the total respondents are 27% of the
respondents are strongly agreed, 52% of the respondents are Agreed, 14% of the respondents
are slightly agreed, 7% of the respondents are Disagreed, no one of the respondents are
Strongly Disagreed with that there are good number of brands available in each category. Most
of the respondents are agreed with this.
20) The space available for customer shopping in the outlet is according to the number
of categories available in the outlet .
Table No-20:
79
S.no Options No.of Respondents %of Respondents
1 Strongly agree 36 12%
2 Agree 60 20%
3 Slightly agree 112 37%
4 Disagree 70 23%
5 Strongly disagree 22 7%
6 Total 300 100%
Graph No-20:
Interpretation:
It can be observed from the table no.20, out of the of the total respondents are 12% of the
respondents are strongly agreed, 20% of the respondents are Agreed, 37% of the respondents
are slightly agreed, 23% of the respondents are Disagreed, 7% of the respondents are Strongly
Disagreed with that The space available for customer shopping in the outlet is according to the
number of categories available in the outlet . Of the respondents are slightly agreed with this.
21) All products in the categories are accessible for the customer.
Table No-21:
80
Graph No-21:
Interpretation:
It can be interpreted from the table no.21, out of the of the total respondents are 7% of the
respondents are strongly agreed, 25% of the respondents are Agreed, 48% of the respondents
are slightly agreed, 19% of the respondents are Disagreed, 2% of the respondents are Strongly
81
S.no Options No.of Respondents %of Respondents
1 Strongly agree 20 7%
2 Agree 74 25%
3 Slightly agree 145 48%
4 Disagree 56 19%
5 Strongly disagree 5 2%
6 Total 300 100%
Disagreed with that the space available for customer shopping in the outlet is according to the
number of categories available in the outlet .Most of the respondents are agreed with this.
22) There is a mechanism in the outlet which notices the categories
which are required by the customer but unavailable in the store.
Table No-22:
Graph No-22:
82
S.no Options No.of Respondents %of Respondents
1 Strongly agree 22 7%
2 Agree 41 14%
3 Slightly agree 61 20%
4 Disagree 132 44%
5 Strongly disagree 44 15%
6 Total 300 100%
Interpretation:
It can be seen from the table no.22, out of the of the total respondents are 7% of the
respondents are strongly agreed, 14% of the respondents are Agreed, 20% of the respondents
are slightly agreed, 44% of the respondents are Disagreed, 15% of the respondents are Strongly
Disagreed with that There is a mechanism in the outlet which notices the categories which are
required by the customer but unavailable in the store.Most of the respondents are Disagreed
with this.
23) Effective Category Management motivates the customer to shop in an outlet.
Table No-23:
83
S.no Options No.of Respondents %of Respondents
1 Strongly agree 68 23%
2 Agree 120 40%
3 Slightly agree 77 26%
4 Disagree 26 9%
5 Strongly disagree 9 3%
6 Total 300 100%
Graph No-23:
Interpretation:
It can be observed from the table no.23, out of the of the total respondents are 23% of the
respondents are strongly agreed, 40% of the respondents are Agreed, 26% of the respondents
are slightly agreed, 9% of the respondents are Disagreed, 3% of the respondents are Strongly
Disagreed with that There is a mechanism in the outlet which notices the categories which are
required by the customer but unavailable in the store.Most of the respondents are agreed with
this.
24) Effective Category Management retains the customer with an outlet.
Table No-24:
84
Graph No-25:
Interpretation:
It can be interpreted from the table no.24, out of the of the total respondents are 32% of the
respondents are strongly agreed, 42% of the respondents are Agreed, 17% of the respondents are
slightly agreed, 7% of the respondents are Disagreed, 2% of the respondents are Strongly Disagreed
85
S.no Options No.of Respondents %of Respondents
1 Strongly agree 97 32%
2 Agree 125 42%
3 Slightly agree 51 17%
4 Disagree 21 7%
5 Strongly disagree 6 2%
6 Total 300 100%
with that The Effective Category Management retains the customer with an outlet.Most of the
respondents are agreed with this.
25) Overall Category Management in the outlet is good.
Table No-25:
Graph No-25:
86
S.no Options No.of Respondents %of Respondents
1 Strongly agree 53 18%
2 Agree 148 49%
3 Slightly agree 75 25%
4 Disagree 21 7%
5 Strongly disagree 3 1%
6 Total 300 100%
Interpretation:
It can be seen from the table no.25, out of the of the total respondents are 18% of the
respondents are strongly agreed, 49% of the respondents are Agreed, 25% of the
respondents are slightly agreed,7% of the respondents are Disagreed ,1% of the respondents
are Strongly Disagreed with that The Overall Category Management in the outlet is good.
Most of the respondents are agreed with this.
CHAPTER-VI
• SUMMERY
• FINDINGS
• SUGGESTIONS
87
• ANNEXURES
• BIBLIOGRAPHY
SUMMARY
Category management is a retailing and purchasing concept in which the range of products
purchased by a business organization or sold by a retailer is broken down into discrete groups of similar
or related products; these groups are known as product categories.
Here the need of this study is to know what the customers of big bazaar are perseving about the
category management in the store. And impact of category management on customers purchase. When
88
a customer is making a buying decision on a specific product of a category whether he is looking correct
product, price, large assortments.
Because company following category management to influence the customers to make a buying
decision, where my study is to know how much impact making a buying decision and what elements
looking for in a category management to attract customers towards a product of a particular category.
To study how customers reacts towards the category management in bigbazaar, kachiguda. To
study category management influence on customers to make a decision. To find out which element is
need to get most customer attention. To know that is category management really impact on customer
buying decisions. To know to what extent category management helps in increasing sales.
Primary data is the new or fresh data collected from the respondents through direct
interview using a pre-structured questionnaire. Secondary data may be obtained from many sources,
including literature, industry surveys, compilations from computerized databases and information
systems, and computerized or mathematical models of environmental processes.
Most of the customers in the big bazaar are female customers, most of the respondents age
group is 20-30 years, most of the respondents are employed and graduates, and their family income is
more than Rs.50,000/-.they shop bimonthly, their preferred time of the shopping is First week of the
month with spending amount between Rs.1,000 –Rs.5,000.And most of the customers come within the
distance of 3km-5km.
Most of the customers agreed that the number of product categories available in the kachiguda
big bazaar is good. Most of the customers of big bazaar know that know where the category is starting
89
and ending on the shop floor. There are good identification / Signage boards about categories which are
available in the big bazaar kachiguda.But, the price tags on the products are not much good. Sometimes
price of the product becomes change at the time of billing instead of the discount price given on the
product. There are good numbers of brands available in each category, products in each category are
arranged in a systematic manner like price wise, brand wise, quantity wise etc. The Store provides all
required product categories as far as customer needs and wants are concern. All products in the
categories are accessible for the customer. Effective Category Management motivates the customer to
shop in an outlet and retains the customer with the outlet. And finally we can conclude that the overall
category management in Kachiguda big bazaar store is good and effective.
FINDINGS
• Majority of the respondents are females.
• Majority of the respondents are in the age between 20-30 years.
• Majority of the respondents are Employed.
90
• Majority of the respondents are graduates.
• Majority of the respondents income is more than Rs.50,000/-
• Majority of the respondents are with the family size of 4 members.
• Majority of the respondents come for shopping Bimonthly.
• Majority of the respondents most preferred of shopping is First week of the month.
• Majority of the respondents spend the amount between Rs.1,000/- to Rs.5,000/-
• Majority of the respondents reside with the distance between 3km-5km from the outlet.
• Majority of the respondents Family lifecycle stage is couple with children.
• Majority of the respondents Agreed that the number of products available in the
kachiguda store are good.
• Majority of the respondents agreed to that they know where the category is starting and
ending on the shop floor.
• Majority of the respondents are slightly agreed that there is a good identification/signage
boards about categories which are available in the store.
• Majority of the respondents are slightly agreed that there are clear price tags on each
product on a category in the store.
• Majority of the respondents agreed that there are good numbers of brands are available
in each category.
• Majority of the respondents are slightly agreed that the products in each category are
arranged in a systematic manner like price wise, brand wise, quantity wise etc.
• Majority of the respondents are agreed that the store provides all required product
categories as far as my needs and wants are concern.
• Majority of the respondents are slightly agreed that the space available for customer
shopping in the outlet is according to the number of categories available in the outlet.
• Majority of the respondents are slightly agreed that all the products in the categories are
accessible for the customer.
• Majority of the respondents disagreed that there is a mechanism in the outlet which
notices the categories which are required by the customer but unavailable in the store.
91
• Majority of the respondents agreed that the effective category management motivates the
customer to shop in an outlet.
• Majority of the respondents agreed that Effective category management retains the
customer with an outlet.
• Majority of the respondents agreed that the overall category management in the outlet is
good.
SUGGESTIONS
• Clear price tags on each product on a category in the store should be maintained. So
that the customer can take buying decision.
92
• Allowing more space between the entrance of a store and a product gives it more
time in the shopper’s eye as he or she approaches it. It builds a little visual
anticipation towards the specific category.
• Most respondents take on the spot decision of buying different products because of the
various attractive products displays. So pretty combination with good services should be
done to retain customers.
• Arrange the products in each category in a systematic manner like price wise, brand
wise, quantity wise etc. to attract customers towards a specific product category.
93
ANNEXURE
A STUDY ON CATEGORY MANAGEMENT IN KACHIGUDA BIGBAZAAR
Socio-Economic Profile
S.No. Variable Categories Please TICK [ √ ]
1 Gender
Male
Female
94
2 Age
13 - 19 years
20 - 30 years
31 - 40 years
41 - 50 years
above 50 years
3 Occupation
Unemployed / Students
Employed
Business people
4 Education
Primary Education
Secondary Education
Higher Secondary / Diploma / ITI
Graduation (UG)
Post Graduation (PG)
Higher than PG
5 Income
Less than Rs.15,000/-
Between Rs.15,000/- and
Rs.30,000/-
Between Rs.30,000/- and
Rs.50,000/-
More than Rs.50,000/-
6
Size of
Family
Two
Three
Four
Five
Six
Shopping Behavior of Customers
S.No. Variable Categories Please TICK [ √ ]
7 Frequency
of
shopping
Daily
Weekly
Biweekly
Monthly
Bimonthly
95
as per requirement
8
Most
preferred
Time of
shopping
first week of month
2nd week of month
last week of month
as per requirement
9
amount
spent
per month
less than Rs.1000/-
between Rs.1000/- to Rs.5000/-
between Rs.5000/- to Rs.10000/-
more than Rs.10000/-
10
distance
from home
to outlet
less than 1 k.m.
between 1 k.m. - 3 k.m.
between 3 k.m. - 5 k.m.
5 k.m. - 10 k.m.
more than 10 k.m.
11
Family
Life Cycle
Stage
Young Couple with no children
Couple with children
Couple with working children
Old Couple-working children with
kids
Old Couple staying away from
children
Please TICK [ √ ] in any appropriate box
S.No
.
Category Management Practices
Strongly
Agree
Agree
Slightly
Agree
Disagree
Strongly
Disagree
12
The number of product categories
available in the store is good.
13
I know where the category is
starting on the shop floor.
14
I know where the category is ending
on the shop floor.
96
15
There is a good identification /
Signage boards about categories
which are available.
16
There are clear price tags on each
product in a category.
17
There are good numbers of brands
available in each category.
18
The products in each category are
arranged in a systematic manner like
price wise, brand wise, quantity
wise etc.
19
The Store provides all required
product categories as far as my
needs and wants are concern.
20
The space of available for customer
shopping in the outlet is according
to the number of categories
available in the outlet.
21
All products in the categories are
accessible for the customer.
22
There is a mechanism in the outlet
which notices the categories which
are required by the customer but
unavailable in the store.
23
Effective Category Management
motivates the customer to shop in
an outlet.
24
Effective Category Management
retains the customer with an
outlet.
25
Overall Category Management in
the outlet is good.
BIBLIOGRAPHY
References:
 Philip Kotler, marketing management,
97
 Research design,
 (Prentice hall of India pvt. 5th edition)
o Berman B and Evans J.R, Retail Management
 (Pearson education, 10th edition
o Service Marketing by M.K Rampal
o Integrated service marketing (4th edition) by Zeithmal
Internet web sites:
 bigbazaar.co.in
 literature review on bigbazaar.com
 retailseminar.in
 organizedretail.co.in
 google.com
 www.futuregroup.com
98

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A study on category management in bigbazaar,kachiguda

  • 1. A Study on Category Management With reference to Big Bazaar, KACHIGUDA A project report submitted in partial fulfillment of the requirements For the award of the degree of MASTERS OF BUSINESS ADMINISTRATION Submitted by Darapureddi.Pradeep Kumar (PG141501038) Under the esteemed guidance of Mr.K.V.V.Devi Prasad Asst. Professor Department of Management Studies Gayatri Vidya Parishad College for Degree & PG Courses (Autonomous) Affiliated to Andhra University Gayatri valley, Rushikonda campus Visakhapatnam-530045 (2014-2016) 1
  • 2. DECLARATION I hereby declare that the project report entitled “A Study on Category Management with reference to Big Bazaar, Kachiguda” submitted by me to Department of Management Studies, Gayatri Vidya Parishad College for Degree & PG Courses (Autonomous), Affiliated to Andhra University is a bonafide work done by me for the partial fulfillment of MASTER OF BUSINESS ADMINISTRATION and has not been submitted to any other university or published at any time before. Place: VISAKHAPATNAM D.PRADEEP KUMAR Date: 2
  • 3. CERTIFICATE This is to certify that the Project report entitled “A Study on Category Management with reference to Big Bazaar, Kachiguda” being submitted by Mr.D.PRADEEP KUMAR is a bonafide work done for partial fulfillment of the award of Degree of MASTER OF BUSINESS ADMINISTRATION during 2014-16 in Department of Management Studies, Gayatri Vidya Parishad College for Degree & PG Courses (Autonomous) under my guidance and supervision. Place: VISAKHAPATNAM K.V.V.DeviPrasad Date: 3
  • 4. ACKNOWLEDGEMENTS I would like to take this opportunity to express my heartiest concern of work to all those who have helped me in various ways to complete this project. I express my sincere thanks to Prof. S.K.V.Suryanarayana Raju, Principal, Gayatri Vidya Parishad College for Degree and PG Courses (A), Visakhapatnam, for his encouragement throughout academic. I take the privilege of extending my gratitude to Prof.S.Rajani, Director, Department of Management Studies, Gayatri Vidya Parishad College for Degree & P.G courses (A), Visakhapatnam, for giving me opportunity to work on this project. I immensely thank, Dr.K.V.V.Murali Someswara Rao, Associate Professor and Head of the Department, Department of Management studies, Gayatri Vidya Parishad College for Degree & P.G courses (A), Visakhapatnam, for his valuable guidance, suggestions in completion of this project successfully. I profoundly thank Mr.K.V.V.Devi Prasad, Asst. Professor, Dept. of Management studies, Gayatri Vidya Parishad College for Degree & P.G courses (A), Visakhapatnam, for his encouragement and helped me at various stages that have been instrumental in materialization of this project. I would like to express my sincere gratitude to Mrs.Tanuja Reddy, H.R Manager at Big Bazaar, KACHIGUDA for giving me guidance and cooperation during the course of the project. He provided me with his assistance and support whenever needed. I extend my sincere thanks to all my faculty members and my parents for their valuable support and encouragement throughout the course. PRADEEPKUMAR.D (PG141501038) 4
  • 5. CONTENTS 5 TITLE PAGE NO. CHAPTER-I 1-7 INTRODUCTION 1 NEED FOR THE STUDY 3-4 OBJECTIVES OF THE STUDY 5 METHODOLOGY 6-7 LIMITATIONS 7 CHAPTER-II 8-15 PROFILE OF RETAIL INDUSTRY 9-15 CHAPTER-III 16-35 PROFILE OF BIGBAZAAR 17-35 CHAPTER-IV 36-49 THEORETICAL FRAME WORK ON CATEGORY MANAGEMENT 37-49 CHAPTER-V 50-76 DATA ANALYSIS AND INTERPRETATION 51-76 CHAPTER-VI 77-79 SUMMERY 78-79 FINDINGS 80-81 SUGGESTIONS 82 ANNEXURES 83-86 BIBLIOGRAPHY 87
  • 6. • • CHAPTER – I • INTRODUCTION • NEED FOR THE STUDY • OBJECTIVES OF THE STUDY • METHODOLOGY • LIMITATIONS 6
  • 7. INTRODUCTION Category management is a retailing and purchasing concept in which the range of products purchased by a business organization or sold by a retailer is broken down into discrete groups of similar or related products; these groups are known as product categories (examples of grocery categories might be: tinned fish, washing detergent, toothpastes). It is a systematic, disciplined approach to managing a product category as a strategic business unit. Each category is run as a "mini business" (business unit) in its own right, with its own set of turnover and/or profitability targets and strategies. Introduction of Category Management in a business tends to alter the relationship between retailer and supplier: instead of the traditional 7
  • 8. adversarial relationship, the relationship moves to one of collaboration, with exchange of information, sharing of data and joint business building. The focus of all supplier negotiations is the effect on turnover of the category as whole, not just the sales of individual products. Suppliers are expected, indeed in many cases mandated, to only suggest new product introductions, a new planogram or promotional activity if it is expected to have a beneficial effect on the turnover or profit of the total category and be beneficial to the shoppers of that category. One key reason for the introduction of category management was the retailers' desire for suppliers to add value to their (i.e. the retailer's) business rather than just the supplier's own. For example, in a category containing brands A and B, the situation could arise such that every time brand A promoted its products, the sales of brand B would go down by the amount that brand A would increase, resulting in no net gain for the retailer. The introduction of category management imposed the condition that all actions undertaken, such as new promotions, new products, re-vamped planogram, introduction of point of sale advertising etc. were beneficial to the retailer and the shopper in the store. A second reason was the realization that only a finite amount of profit could be milked from price negotiations and that there was more profit to be made in increasing the total level of sales. A third reason was that the collaboration with the supplier meant that supplier's expertise about the market could be drawn upon, and also that a considerable amount of workload in developing the category could be delegated to the supplier. NEED FOR THE STUDY: • Big Bazaar, Kachiguda is an infant retail shopping mall. Since the incorporation it Involved verity of category management because in future it would be a market leader in all Over India. So the researcher wants to do project work in this organization to practical Knowledge point of view. • Keeping in mind the rapid growth of Indian retail industry and its bright future, this has always been a thrust area for me. Big Bazaar is at the top position in Indian retail industry. That is why it 8
  • 9. attracted me to have a study in Big Bazaar, Kachiguda. Big Bazaar is the retail chain of Future Retail (India) Ltd. And it provides a wide range of products availability for the customers. • As a matter of fact, retail is the buzz word of the Indian economy today. As retail industry is growing at a high pace I wanted to have an overview of the subject. I have chosen Big Bazaar retail chain for the project work, because Big Bazaar retail is very upcoming retail company which is continuously changing its activities with the change of time. I wanted to understand their marketing activities and liked to relate how similar or dissimilar it is from what I have studied in marketing management. • The introduction of category management imposed the condition that all actions undertaken, such as new promotions, new products, re-vamped planogram, introduction of point of sale advertising etc. were beneficial to the retailer and the shopper in the store. • It helps collaboration with the supplier meant that supplier's expertise about the market could be drawn upon, and also that a considerable amount of workload in developing the category could be delegated to the supplier. • Here the need of this study is to know what the customers of big bazaar are perseving about the category management in the store. And impact of category management on customers purchase. When a customer is making a buying decision on a specific product of a category whether he is looking correct product, price, large assortments. • The company following category management to influence the customers to make a buying decision, where my study is to know how much impact making a buying decision and what elements looking for in a category management to attract customers towards a product of a particular category. 9
  • 10. • To study how customers reacts towards the category management in big bazaar, kachiguda. To study category management influence on customers to make a decision. To find out which element is need to get most customer attention. • To know that is category management really impact on customer buying decisions. To know to what extent category management helps in increasing sales. OBJECTIVES OF THE STUDY: • The main objective of the study is to find out customers’ satisfaction levels on category management in Big bazaar, Kachiguda, Hyderabad. • To know the socio-economic profile of the customers of big bazaar. • To know the shopping behavior of the customers of Big bazaar. • To look at the current trends in the Indian organized retail industry. 10
  • 11. • To offer suggestions for effective Category management in Big bazaar. RESEARCH METHODOLOGY: Research methodology is a way to systematically solve the research problem. In it, step-by-step Research Methodology is a way to systematically solve the research problem. In it, step-by-step methods are followed to solve a particular problem. It refers to a search for knowledge. It can also be defined as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. 11
  • 12. The methodology adopted for the present study was focus discussion, interview and close observation through in-house study. Since the project is based on action research it was necessary to build rapport to collect maximum information from the Customers. Hence the research spent considerable time with the people who reside in city. The main focus was to do with the assessing the satisfaction level of customer and explore the possibility of more sound arrangement of disseminating outlook information system. Data Source: Primary data: Primary data is the new or fresh data collected from the respondents through direct interview using a pre-structured questionnaire.  Personal Interview  Close observation  Survey conduction Secondary data: Secondary data may be obtained from many sources, including literature, industry surveys, compilations from computerized databases and information systems, and computerized or mathematical models of environmental processes. I collected them by following method –  Internet 12
  • 13.  Books  Records  Company website Study design: Data collection structure:  Data Collection Instrument: Structured questionnaire  Sample size : 300  Sampling technique : Convenience sampling  Study area : Bigbajaar ,kachiguda,Hyderabad  Study period :27th April 2015 to 27th June 2015 Limitations of the study:  The survey is limited to a particular area i.e.Kachiguda big bazaar.  Collection of data is dependent on the information given by the respondents.  The respondents are sometimes not giving exact information.  Data is insufficient. 13
  • 14. Chapter-2 Profile of Retail Sector Retailing: The word ‘retail’ is derived from the French word ‘retailer’, meaning ‘to cut a piece off’ or ‘to break bulk’. In simple terms, it implies a first-hand transaction with the customer. Retailing involvers a direct interface with the customer and the coordination of business activities right from the concept or design stage of a product or offering to its delivery and post-delivery 14
  • 15. service to the customer. The industry has contributed to the economic growth of many countries and is undoubtedly one of the fastest changing and dynamic industries in the world today. Indian retail industry: The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010. The retail scenario in India is unique. Much of it is in the unorganized sector, with over 12 million retail outlets of various sizes and formats. Almost 96% of these retail outlets are less than 500 square feet in size, the per capital retail space India being 2 squre feet compared to the US figure of 16 square feet India’s per capital retailing space is thus the lowest in the world. With more than 9 outlets per 1000 people, India has the largest number in the world. Most of them are independent and contribute as much as 96% to total retail sales. Because of the increasing number of the nuclear families, working women, greater work pressure and increased commuting time, convenience has become a priority for Indian consumers. They want everything under one roof for easy access and multiplicity of choice. This offers an excellent opportunity for organized retailers in the country which account for just 2% and modern stores 0.5% of the estimated US Dollar 180 billion worth of goods that are retailed in India every chain, Wal-Mart. Growth of Indian retail industry: According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 15
  • 16. 12%. It is also expected to reach 22% by 2010. According to a report by North bride Capita, the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market. India is rapidly evolving into a competitive marketplace with potential target consumers in the niche and middle class segments. The market trends indicate tremendous growth opportunities. Global majors too are showing a keen interest in the Indian retail market. Over the years, international brands like marks and spencer, Samsonite, Lacoste, McDonald’s, Swarovski, Domino’s among a host of others have come into India through the franchise route following the relaxation of FDI (Foreign Direct Investment) restrictions. Large Indian companies- among them the Tata, Goenka and the Piramal groups are investing heavily in this industry. Major Retailers in India: Pantaloon: Pantaloon is one of the biggest retailers in India with more than 450 stores across the country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the country. It's growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloon launched country's first hypermarket ‘Big Bazaar’. It has the following retail segments: • Food & Grocery: Big Bazaar, Food Bazaar • Home Solutions: Hometown, Furniture Bazaar, Collection-I • Consumer Electronics: e-zone • Shoes: Shoe Factory • Books, Music & Gifts: Depot • Health & Beauty Care: Star, Sitara • E-tailing: Futurebazaar.com • Entertainment: Bowling Co. 16
  • 17. Tata Group: Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lake sq. ft retail space across the country. RPG Group: RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Food world stores. Later it also opened the pharmacy and beauty care outlets ‘Health & Glow’. Reliance: Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It’s expecting its sales to reach Rs. 90,000 crores by 2010. AV Birla Group: AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Philippe, Allen Solly, Van Heusen, and Peter England are quite popular. It's also investing in other segments of retail. It will invest Rs. 8000-9000 crores by 2010. Another big player in the segment will be the Bharti group. Overhauling this part of the supply chain will be the key to the success of any retail venture in food and groceries segment.Wal-Mart, the world’s largest retailer, and Bharti Enterprises have signed a Memorandum of Understanding (MoU) to explore business opportunities in the Indian retail industry. This joint venture will mark the entry of Wal-Mart into the Indian retailing industry a retail chain like Future Group’s Big Bazaar may be clocking heady sales (growing at 100% year- on- year), but the dozen odd shops operating in its proximity wear a deserted look, giving a somewhat hollow ring to the much- talked- about retail boom 17
  • 18. in the country. The key players currently operating in the Indian retail industry includes Future Group, Trent Ltd, RPG Enterprise, Vishal Retail Ltd, Shoppers Stop Ltd, Bata India Ltd, Provogue India Ltd, Videocon Appliances Ltd, ITC Ltd, Godrej Agrovert Ltd, and DCM-Hariyah Kissan Bazaar. Retailers ranging from Pantaloon to RPG to Piramal’s or the Tata’s are working towards exploiting this model, perceived by consumers as more value enhancing. But in the long run, what is most likely to succeed is a more balanced multi-format strategy. Finally, while in the first flush of the retail boom, the elimination of traditional intermediaries may bring windfall gains (as well as bring welcome and much- needed relief to the producers), this source will increasingly dry out as competition intensifies and margins come under pressure a few years down the line. What would set the survivors apart from those who are forced to sell out or go belly-up will be differentiators like location, value-added services (convenience), private labels and customer loyalty programs other than price. The last, a result of retailer-manufacturer tie-ups, state-of-the-art supply chain infrastructure, global sourcing and scale will be a key factor. And, if experience in other markets is anything to go by, an uncanny ability to read shifting trends. Retail formats in India: Hyper marts /supermarkets: large self-servicing outlets offering products from a variety of categories. • Mom-and-pop stores: they are family owned business catering to small sections; they are individually handled retail outlets and have a personal touch. • Departmental stores: are general retail merchandisers offering quality products and services. • Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered. • Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of products and services including entertainment and food under a single roof. • E-trailers: are retailers providing online buying and selling of products and services. • Discount stores: these are factory outlets that give discount on the MRP. • Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought via vending machine. 18
  • 19. • Category killers: small specialty stores that offer a variety of categories. They are known as category killers as they focus on specific categories, such as electronics and sporting goods. This is also known as Multi Brand Outlets or MBO's. • Specialty stores: are retail chains dealing in specific categories and provide deep assortment. Mumbai's Crossword Book Store and RPG's Music World is a couple of examples. Challenges facing Indian retail industry: • The tax structure in India favors small business • Lack of adequate infrastructure facilities • High cost of real estate • Dissimilarity in consumer groups • Restrictions in Foreign Direct Investment • Shortage of retail study options • Shortage of trained manpower • Low retail management skill The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%. Categories of Indian Retailers: Corporate Houses:  Tata’s: Tata Trent  RPG group: Food World, Health and Glow etc.  ITC: Wills Life Style  Raheja group: (Shoppers’ Stop), DLF (DT cinemas). 19
  • 20.  Nike, Rbk. Zodiac  Multi-brand outlets  Vijay Sales, Viveks etc.  Manufacturers/ Exporters  Pantaloons, Bata, Weekender Classifying Indian Retailers: 1. Modern Format Retailers:  Supermarkets (food World)  Hypermarkets (Big Bazaar)  Department Stores (shopper’s Stop)  Specialty Chains (Ikea)  Company Owned Company Operated 2. Traditional Format Retailers:  Kiranas: traditional Mom and Pop Stores  Kiosks  Street Market  Exclusive /Multiple Brand Outlets 3).Hypermarket:  Big Bazaar  Giants  Shoprite  Star 20
  • 21. 4).Department:  Lifestyle  Pantaloons  Pyramids  Shoppers Stop  Trent 5).Entertainment  Fame Ad labs  Fun Republic  Inox  PVR 21
  • 22. CHAPTER-3 COMPANY PROFILE COMPANY PROFILE: Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, 22
  • 23. insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million square feet of retail space in 73 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of the customers. In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore. The group’s speciality retail formats include supermarket chain – Food Bazaar, sportswear retailer - Planet Sports, electronics retailer - eZone, home improvement chain - Home Town and rural retail chain, Aadhaar, amongothers. Future Capital Holdings, the group’s financial arm provides investment advisory to assets worth over $1 Billion that are being invested in consumer brands and companies, real estate, hotels and logistics. It also operates a consumer finance arm with branches in 150 locations Other group companies include, Future Generali, the group’s insurance venture in partnership with Italy’s Generali Group, Future Brands, a brand development and IPR company, Future Logistics, providing logistics and distribution solutions to group companies and business partners and Future Media, a retail media initiative. The group’s presence in Leisure & Entertainment segment is led through, Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and family entertainment centres, F123. Through its partner company, Blue Foods the group operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato. 23
  • 24. Future Group’s joint venture partners include, US-based stationery products retailer, Staples and Middle East-based Axiom Communications. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group’s core value of ‘Indianness.The group’s corporate credo is, ‘Rewrite rules, Retain values.’ Future Retail: Retail forms the core business activity at Future Group and most of its businesses in the consumption space are built around retail. Future Group’s retail network touches the lives of more than 200 million Indians in 73 cities and 65 rural locations across the country. The group currently operates around 1,000 stores spread over 16 million square feet of retail space. Present in the value and lifestyle segments, the group’s retail formats cater to almost the entire consumption expenditure of a wide cross- section of Indian consumers. Led by Pantaloon Retail, the group’s flagship company, the group manages some of India’s most popular retail chains like Pantaloons - a chain of fashion destinations, Big Bazaar - a uniquely Indian hypermarket chain, Food Bazaar - a supermarket chain that blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central - a chain of seamless destination malls. Some of its other formats include Ethnicity - India's first concept store, which recreates the experience of a traditional ethnic market in a modern retail format, Brand Factory, Planet sports, Star and Sitar. Retailing of products and services related to home building and home improvement is led through the group’s formats, Home Town, a large-format home solutions store, along with specialized formats for home furniture and home furnishing through, Collection i and Furniture Bazaar and consumer electronics through eZone and Electronics Bazaar. The group also operates India’s leading rural retailing chain, Aadhaar that is present in over 65 locations in rural India. Aadhaar, an agri-service cum rural retail initiative, provides a complete solution provider for the Indian farmer. In 2007, Pantaloon Retail was awarded the International Retailer of the Year by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year at the World Retail Congress held in Barcelona. 24
  • 25. Corporate Statements: 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, it 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 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 they need. We will not just post satisfactory results, we will create 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. Rewrite Rules, retain Values Vision: “Future Group shall deliver Everything, Everywhere, Every time for Every Indian consumer in the most profitable manner.” Mission: 25
  • 26.  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 segment- for classes and for masses.  We shall infuse Indian brand 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 Values:  Indianness: confidence in ourselves.  Leadership: to be a leader, both in thought and business.  Respect & Humility: to respect every individual and be humble in our conduct.  Introspection: Leading to purposeful thinking.  Openness: to be open and respective to new ideas, knowledge and information.  Valuing and nurturing relationship: 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. Board of Directors: Mr. Kishore Biyani, Managing Director Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief Executive Officer of Future Group. 26
  • 27. Mr. Gopikishan Biyani, Whole time Director Gopikishan Biyani is a commerce graduate and has more than twenty years of experience in the textile business. Mr. Rakesh Biyani, Whole time Director Rakesh Biyani is a 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. Mr. Vijay Biyani, Whole time Director Vijay Biyani has more than twenty years of experience in manufacturing, textiles and retail industry and has been actively involved in the financial, audit and corporate governance related issues within the company. Mr. Vijay Kumar Chopra, Independent Director V.K.Chopra is a fellow member of The Institute of Chartered Accountants of India (ICAI) by profession and is a Certified Associate of Indian Institute of Bankers (CAIIB). His banking career spans over 31 years and he has served senior management positions in Central Bank of India, Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI. Mr. Shailesh Haribhakti, Independent Director Shri 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 Co and Ceat Limited among others. 27
  • 28. Dr. D O Koshy, Independent Director Dr. Darlie Koshy, a PhD from IIT Delhi and rank holder in MBA headed NID (Ministry of Commerce, GOI) as Director for 2 terms of office prior to which he was the founding Chairperson of Fashion Management at the National Institute of Fashion Technology (Ministry of Textiles, GOI). He is currently the Director General & CEO of ATDC Network of 58 Institutes / Centers and two premier campuses of Institute of Apparel Management under the aegis of AEPC (Sponsored by Ministry of Textiles, GOI). Dr. Koshy received the Delhi IIT Alumni Award for contribution of National Development in 2008. Dr. Darlie Koshy was also conferred with the “Star of Italian Solidarity” one of the highest civilian awards of the Government of Italy. Dr. Koshy is the author of three pioneering books including the much acclaimed “Indian Design Edge”. Ms. Bala Deshpande, Independent Director Bala Deshpande is Independent Director, Pantaloon Retail (India) Ltd. and also serves on the boards of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing Ltd, among others. Mr. Anil Harish, Independent Director Anil Harish is the partner of DM Harish & Co. Associates & Solicitors and an LLM from University of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bank and Hinduja TMT, among others. Company Timeline: 1987 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 28
  • 29. 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 Company enters modern retail with the launch of the first 8000 square feet store, Pantaloons in Kolkata. 2001 Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad. 2002 Food Bazaar, the supermarket chain is launched. 2004 Central - India’s first seamless mall is launched in Bangalore. 2005 Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing and Planet Retail.Sets up India’s first real estate investment fund Kshitij to build a chain of shopping malls. 2006 Future Capital Holdings, the company’s financial is formed to manage over $1.5 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 US office stationery retailer, Staples. 2007 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 India’s most popular shopping portal. 2008 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. 29
  • 30. Companies of future group:  Future Retail (India) Limited  Home Solutions Retail India Limited  Future Brands Limited  Future Media (India) Limited  Future Supply Chain Solutions Limited  Convergem Communication (India) Limited  Pantaloon Food Product (India) Limited  Future Knowledge Services Limited  Future Capital Holdings Limited  Future Generali India Insurance Company Limited  Future Generali India Life Insurance Company Limited  Future bazaar India Limited  Winner Sports Private Limited  Staples Future Office Products Private Limited  Talwalkars Pantaloon Fitness Private Limited  ConvergeM  Indus League Clothing  Galaxy Entertainment Corporation Ltd  Future Consumer Products Limited  Future Ventures India Limited Future Brands: The Future Group has built a strong portfolio of some of the fastest growing consumer brands in India. This activity is led through Future Brands India Limited, a specialized subsidiary company that was set up to create and build powerful brands that address the aspirations of the new Indian consumer. Some of the key brands in this portfolio include, John Miller, Lombard, Bare, DJ&C, Buffalo and RIG in the fashion and apparel space. Dream line, present in the home segment, offers a wide range of products in kitchenware, bed & bath linen, and Home Décor categories. In the food and home care segment brands include Tasty Treat, Premium Harvest, Fresh & Pure, Care 30
  • 31. Mate and Clean Mate. In consumer durables and electronics space, the group’s brands include Koryo and Sensei. Line of Business: The company is present across several lines of business which have various formats (stores) lywood, The Doller store(JV).  Fashion – Pantaloons, Central, All, Brand Factory, Blue Sky, Top 10, Fashion Station, Big Bazaar, Lee Cooper (JV).  General Merchandise – Big Bazaar, Shoe Factory, Navras, Electronics Bazaar, Furniture Bazaar, KB’s Fair Price.  Electronics- e-Zone, Staples (JV).  Home improvement- Home Town  Furniture – Collection I, Furniture Bazaar, Home Bazaar.  E-tailing (Online Shopping).  Books & Entertainment – Bowling Co., F123.  Wellness – Star & Sitara, Tulsi.  Telecom & IT – Gen M, M-bazaar, M-Port, and Converge M.  Consumer Durables – Koryo, Sensei.  Service – E-Care.  Malls – TGIP, Central Gurgaon. Big Bazaar India’s Real Retail Story: Big Bazaar, the flagship retail chain of the Future Group, is on the verge of achieving a unique milestone in the History of World retail- by being the first hypermarket format in the globe to rollout fastest 101 stores in a short span of seven years. Big bazaar’s journey began in October 2001, when the young first generation entrepreneur Kishore Biyani opened The country’s first hypermarket retail outlet in Kolkata [Then Calcutta] .In the same month, Two more stores were added – one each in Hyderabad and Mumbai, thus starting on a successful sojourn which began the chapter of organized retailing in India. 31
  • 32. Speaking on this momentous occasion and remembering the days of conceptualizing the hypermarket idea Mr. Kishore Biyani said, ‘’We initially decided to name the format as ‘’ Bazaar’’ because we had designed the store keeping the Indian mandi style in mind . since the size of the hypermarket was big than an average mandi, the thought came to name it as ‘’ Big Bazaar ‘’ . However we had freezed on the punch line ‘’ Is Se Sasta Aur Accha kahin Nahi’’ much before we met the creative agency to design the final logo of Big Bazaar’.’ Though, Big Bazaar was started purely as a fashion format including apparel cosmetics, accessory and merchandise, the First food bazaar format was added as shop-In shop within big bazaar in the year 2002. Today, Big Bazaar, with its wide range of products and service offering, reflects the aspirations of millions of Indians. The journey of Big Bazaar can be divided into two phases –one pre and the other post January 26th , 2005 when the company rewrote the retail chapter in India, with the introduction of a never –before sales campaign ‘’ Sasbe Sasta Din’’ In just one day , almost the whole of India descended at various Big Bazaar stores In the country to shop at their favorite shopping destination. Further, what followed was the time and again rewriting of the Indian Retail experience wherein understanding of the Indian consumers reflected in the products and services offered, creating innovative deals, expanding in the tier II and tier III towns, tying up with branded merchandise to offer exclusive products and services to its customers. Big Bazaar is present today in 59 cities and occupying over 5 million sq. ft. retail space and driving over 110 million footfalls into its stores. The format is expecting the number of footfall in the stores to increase by over 140 million by this financial year . Over the years , Mr. Biyani for his vision and leadership, and Big Bazaar for its unique proposition to its customers’, have received every prestigious consumer awards both nationally and internationally. Says Rajan Malhotra, President, Strategy & Convergence, Big Bazaar, “what is important in our journey is not the number of stores, but the customers’ faith in us. It’s the India and the Indians, which have helped us, reach this feat in such a short time span and today our country is creating a history in the word organized retail. Rajan Malhotra, who is also the first employee of Big Bazaar, joining the organization in early 2001 adds, “Since beginning, we have kept Big Bazaar as a soft brand, which reflects the India and the Indianness. We believed in growing with the society, participating and celebrating all regional and local community festivals, giving customers preferences above everything else.” 32
  • 33. Every Big Bazaar is a small family by its own and the head of the family – Karta- is the store manager. Kishore Biyani, the CEO of the Future Group, has a vast understanding of the consumer’s insight, has inculcated the habit of observing, understanding customers, in every employee of the group. Future Group is confident of the Indian Retail Story. The group has not slowed down its expansion plans depite the fiscal woes in the economy present today. Future Group plans to have 300 stores and is expecting revenues of Rs 13,000 crore by year 2011. About Big Bazaar: Type : Hypermarket type Founded : 2001 Industry : Retail Product : Department store MD & CEO: Mr. Kishore Biyani Parent : Future Group Website : www.bigbazaar.com Big Bazaar is a chain of hypermarkets in India, with more than 100 stores in operations. It is a subsidiary of Pantaloon Retail India Ltd, Future Group, offers a wide range of products including clothing, footwear, electronic appliances, groceries and kitchen utensils. You can also buy branded stuff from Reebok, Nike and Puma here. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. The word hypermarket is derived from the French word hypermarket, which is a combination of a supermarket and department store. The stores occupy an area which ranges from anywhere between 80000 to 220000 sq. ft. and offer a variety of food products like clothes, jewelry, hardware, sports equipment, books, CDs, DVDs, TVs, electrical equipment and computers etc. Hypermarkets are today synonymous with one stop shopping. The cheapest prices will normally be found in these stores. Across three world, hypermarkets are usually part of a retail park, along with other shops, cafeterias and restaurants. A key element of differentiation between the hypermarket and 33
  • 34. the other retail formats is that they typically have destination locations. The hypermarkets are designed to attract customers from a significantly large area with their low price offers, unique range and offers. It is the largest form of organized retailing today. It is an ideal shopping experience with an amalgamation of product, service and entertainment all under of a common roof. The company has been able to leverage on its multi-formats-multi-brand stores, secure prime locations at the best possible prices and command a strong bargaining power with suppliers, which provide it an edge over its competitors.Customers come in Big Bazaar for purchasing, entertainment and pacing here and there.It gives many facility to the customers like; Helpline, Baggage Counter, Parking, Exchange etc. big Bazaar trying to provide customer with 3V’s • Value • Variety • Volume Big Bazaar has different categories; such as • Food Bazaar • Apparels • General Merchandise:- At Big Bazaar, you will definitely get the best products at the best prices- that’s what it guarantees. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home gurnishings, utensils, crockery, cutlery, sports goods and much more at prices that surprise us. Here we talk about the department stores, because Big Bazaar based on the departments. Department Stores: Carry broad variety and deep assortment organized into separate deparment for displaying merchandise. 34
  • 35. Major departments includes: • Utensils • Plastics • Home décor • Luggage • Toys • Footwear etc. Chains are very diverse and appeal to different markets. They are unique in terms of the shopping experience they offer, the services they provide and the atmosphere of the store. They are promotion- oriented. They increase competition with discount and specialty stores creating problems. Store Organization: 35
  • 36. MARKETING MIX OF BIG BAZAR: Retail Marketing Mix: 36 Store Manager Assistant Store Manager Operational Manager Department Manager Additional Department Manager Team Leader Team Member
  • 37. The basic function of retail is to provide the right goods to the consumer, at the right place and time. Through the retail marketing mix we can compete with our competitors and achieve the sales target. The marketing tools that a retail organization uses to pursue its marketing objectives are termed as the retail marketing mix. The channels are illustrated in figure given below: Product: 37 Retail Marketing Mix People Product Place Presentation Promotion Customer Service Price
  • 38. One of the main elements of the retail marketing mix is the products and /or services that store offers to the customer. Products are also termed as merchandise. The different products that the store offers are together termed as the merchandise mix. For example, if we consider the Fashion at department store, the merchandise line comprises: • Mans wear • Mans accessory • Party wear • Ladies wear • Kids wear • Home fashion Price: Pricing is an integral part of the retail marketing mix. The price policy that the organization decides to follow depends on the customer profile of the target audience for its range of products. Big Bazaar gives the good price to the customer .price makes the good relationship to the customers. Big Bazaar has a punch line “Isse Sasta Aur Accha Kahin Nahi” It gives the high discount on the price like; foods products (20%, 25%, 35%), non food products (10%, 20%, 35%), buy one get one free Top Price, buy 3 get one free Park Avenue soap, etc. Big Bazaar gives many offers to the customer like; the great Indian festival Big Days, Sabse Saste 3 Din, etc. In these types of days it gives the huge discount on the products. Place: The location of the retail store was considered to be the most important element of the retail marketing mix.Big Bazaar is situated at premier location in kachiguda, Hyderabad, where Levis, E-Zone, Cafe Coffee Day, and Reebok like stores are situated. It is the best place for Big Bazaar. Promotion: 38
  • 39. The advertising budget, sales promotion, publicity and the public relations play a very important role in the competitive world of retailing .these help the store to achieve the short term goals. Promotion may be price led or occasional led, in which case special merchandise offered by the stores only for the occasion. Most retail organization run promotions during festival seasons Big Bazaar also provides the promotional offers on festival like Diwali, New Year, ID, Valentine day, etc. Discounts depend on the products. Presentation: The manner in which the merchandise is presented at the store level is very important. This aspect not only deals with the store layout and the ambience created, but also with visual merchandising. Visual merchandising is the orderly, systematic way of putting stock on display in the retail store. Big Bazaar presents the store as per the season and occasions like; on Diwali store is decorated with candles and flowers, on Christmas store is decorated with stars, ribbons, balloons, Christmas tree and on Independence Day and Republic Day store is decorated with green, orange, and white balloons, etc. that attract the customers. Customer Service: The support services that a retailer offers have become very important today. The credit policies and the product returns policies need to be clear marketing, buzzwords in the industry today and all these are aimed at enhancing customer service. In the Big Bazaar, the product range is good and availability of the products is very easy. Bag Bazaar provides the low price comparison to the other retailers. Big Bazaar provides the good services to their customer like; baggage counter, parking, product, help line, etc. People Retailers operate in a unique environment. The retail industry is characterized by a large number of inexperienced workers, who need to put in long hours of work. Most of the time, these employees are in direct contact with the customer and may face irate or unreasonable customer. The people who work at the front-end of a retail organization are very important, as they are the manners and products knowledge plays a very important role in building long –term relations with the customer 39
  • 40. SWOT Analysis of Big bazaar: Strengths: • Better understanding of customers helping the company to serve them better. • Vast range of products under one roof helping in attracting customer and their family to shop together and enjoy the experience. • Benefit of early entry into the retail industry. • Diversified business operating all over India in various retail formats. • Ability to get products from customers at discounted price due to the scale of business. Weaknesses: • High cost of operation due to large fixed costs. • Very thin margin. • High attrition rate of employee Opportunities: • Lot of potential in the rural market. • Can enter into production of various products due to its in depth understanding of customers’ tastes and preferences. • Can expand the business in smaller cities as there is a lot of opportunity. Threats: • High business risk involved. • Lot of competitors coming up to tap the market potential. • Margin of business reducing all the time. 40
  • 41. CHAPTER-IV THEORETICAL FRAME WORK ON CATEGORY MANAGEMENT THEORETICAL FRAME WORK ON CATEGORY MANAGEMENT: 41
  • 42. Categories: • A group of products with similar attributes • Distinct from other products but not necessarily among themselves • Can be substituted by each other • Stores, stacked and sold in a similar manner We can therefore Sum up : A category is a group of products which meet a similar consumer need so that the products are inter-related or substitutable. Examples – Juices, Shaving products, Inner wear, Toys and Games A Category is a group of similar or related items which the customer would ideally like to find together in a store. Categories are mainly used as organizational aids to better manage and monitor predefined groups of products. Category Management: Category management is the process by which a retail business is managed with the objective of maximizing the sales and profits of a category. It is a distributor/supplier process of managing categories as strategic business units, producing enhanced business results by focusing on delivering consumer value. • Categories are managed as strategic business units • Categories are managed strategically through category plans and strategic roles • Category Managers control their share of company assets • Asset Returns measure performance and establish priorities • In a competitive business just organized and proficient chains will stay on the market. • A huge complexity behind the workflows imposes to approach the business considering each category as a single business, in order to decrease the whole complexity. • So it's important ensure a managing system for each category through strategies of pricing, promotion, assortment and exposure aiming achieve results of sales and margins. 42
  • 43. • Category Management is a process of maximizing sales and profits while enhancing product value and customer experience. • It is achieved through active involvement of all stake holders Manufacturer, retailer and customer • While it is a business requirement for the retailer and manufacturer to partner with each other, the customer is engaged by the retailer in order to understand buying behavior and preferences to achieve more from less. • The value thus captured is retained partially by the retailer and is passed on in good measure to the customer to gain competitive advantage • Category management is not an event but a continuous process of course correction through performance measurement and action. Category Management includes: 1) Space Planning: Considerations for Layout Decisions: • High margin items should be placed in high traffic areas. • High demand items should be placed in low traffic areas. • Complementary items should be placed near each other. • Seasonal needs should be considered. • Items needing frequent restocking should be placed near storerooms or cash registers. • Larger departments should be placed in lower traffic areas. • Impulse items should be placed in closer to billing. • Shopping behavior and operational considerations should be recognized. Benefits of Space Planning: • Inviting store layout improves walkins into the store. 43
  • 44. • Improved circulation space within the store allowing for accessibility to all products. Improved conversion rates by better product visibility and display. • Reduction in shrinkage. • The store layout can impact the customer’s perception of the store’s positioning. 2) Assortment Planning: Assortment Plan or the Merchandise Mix is rated around the globe as the second most important factor for a store, after its location. The assortment plan defines the revenue stream, impacting not only the top lines and bottom lines but also the working capital locked in inventory. Key Deliverables of an Assortment Plan: • Required Average Revenue/sft. • Required Gross Margin • Required Average Ticket size • Required Stock cover based on demand forecast • Suitable product as per catchment analysis and target customer profile. Based on competition study, merchandise mix should define the store’s USP. 3) Visual Merchandising: “Visual merchandising”, the art of attracting patrons with visual cues, is central to a retailer’s ability to generate sales. Visual Merchandising got its start at the turn of the century, when department stores began using theatrical set design and lighting to create exotic displays. Today, the way the departments are arranged, the location of the escalators, the lighting--all are carefully planned to earn the store more sales per square foot. Store Display Decisions: • Shelving • Hanging • Pegging • Folding • Stacking • Dumping 44
  • 45. • Value/fashion image • Angles and sightlines • Vertical color blocking • Fixture Types • Merchandise Presentation Planning • Selecting Fixtures for Merchandise • Visual Merchandising 4) Visual communication: • Category signage: Category signage helps consumers negotiate thought the store to find the product categories they are looking for. The size of the category signage varies widely from a lettering that is a few feet in height to merely inches. • Plannogramming: A planogram is a diagram that shows how and where specific retail products should be placed on retail shelves or displays in order to increase customer purchases. Planogramming is a skill used in merchandising and retail space planning. Planogramming Benefits: • Improved sales presentations & closure results. • Increased consumer appeal of product displays • Better brand awareness through consistency • Improved efficiency of shelf space allocations • Improved financial performance of assortments • Faster, more accurate replenishments • Quicker inventory resets • Much better marketing through targeted displays 5) Inventory management: 45
  • 46. There are two types of systems in inventory management.  Inventory in a PUSH system is managed at the corporate level where all buying decisions are made and then pushed to the distribution centers for allocation to stores.  Inventory in a PULL system involves store requirements to be consolidated at the corporate level via the distribution center an then procured. Six Components of Category Management:  Core Components(essential): • Strategy • Business Process  Enabling Components (assisting) • Scorecard • Organization Capability • Information Technology • Collaborative Relationships • 1. Strategy: Categories are strategic business units, Overall company strategies provide a infrastructure for category level strategies, Strategies must be clearly understood throughout the Retailer’s organization. The Strategic Promotional Process: 46
  • 47. 2. Organizational Capability: • Development of the organization’s core competency • Through organizational structure • Roles/Responsibilities • Skill/Knowledge development • Reward Systems 3. Information Technology: • Critical elements of the Category Business Planning Process • Need data-driven, fact-based analysis and performance measurement 4. Collaborative Relationships: • Relationships with suppliers who acquire unique perspectives, resources and skills • Common objective -- delivering superior consumer value more profitability. The Category Management Process: 47
  • 48. Category Management is underpinned by a structured process which provides a framework for retailer & supplier to work together strategically. A formal 8-step category management process was developed just over a decade ago by the Partnering Group. 1).Category Definition: • Category Definition is the 1st step in the procedure. The definition of the category has a significant impact on the subsequent steps. A category definition ought to be based on how the customer buys, and not on how the retailer buys. • The trading partners need to define the new category with a name What is it? What are the sub-categories? • By Brand: Branded National Brand Local Brand • Private Label 48
  • 49. Economy/Value Premium • By Usage Fresh Canned Juice concentrates 2. Category Role: • The distributor (with supplier input) would define the overall role the selected category is going to play in the distributor’s total business How important is the category? How to leverage the importance? • The category role determines the priority and the importance of the numerous categories in the overall enterprise. These aids in resource allocation. Traditionally, four categories have been identified. They are:  Destination category: To be the primary category provider and help define the retailer as the store of choice by delivering consistent, superior target consumer value.  Routine category: To be one of the preferred category providers and help develop the retailer as the store of choice by delivering consistent, competitive target consumer value  Occasional/Seasonal category: To be a major category provider, help reinforce the retailer as the store of choice by delivering frequent, competitive target consumer value.  Convenience category: 49
  • 50. To be a category provider and help reinforce the retailer as the store of choice by delivering good target consumer value 3. Category Assessment: In this step, the existing performance of the category is evaluated with respect to the turnover, profits and return on asses in the category. It involves an assessment of the buyers, the marketplace, the retailer and the suppliers. Comparing internal and external data it is possible to find points of strength and points of weakness: - Market Share for each category (Fair Share); - Market Share for leader brands; - Market Share for private labels; - Frequency and Sales in cut prices; - Number of SKUs in each Category; - Price Average; - Margins; - SKUs opportunities in the market. • Identifying Gap between current and potential sales: We can understand clearly with the following example The following points are considered in a category assessment 50 Category Fruits and vegetables Market Bangalore Store Food world Total sales:Bengalore market(millions) INR3,ooo Total sales: Food world store(millions) INR54 Food world market share: Total groceries 6% Food world market share: Fruits and Vegetables 1.8% Gap (%) 4%
  • 51. • Who is the Target customer? • What Inventory is required to sell profitably • How Much Shelf Space is allotted • If we use the same space for something else what margins can be generated • Is there an impact on sale of other categories • How much stock is sold on promotion • Shrinkage and pilferage constitute what percentage of margin • Is there any Non Sales Revenue being Generated • Is there a Potential for growth. 4. Scorecard or Category Performance Measures: • Establishment of the performance measures by which the category manager will measure the quality of the execution of the plan • What are the goals & objectives? • How is the progress? • The development of category performance measures involves the setting of measurable targets in terms of sales, margins and Gross Margin Returns on Investment (GMROI). 5. Category Strategies: 51 Typical Category performance measures include: • Sales • Profits • Market Share • Inventory Turnover • Changes in the Assortment • Consumer Transactions Good performance measures are characterized by: • A balanced Architecture of Measurement • Total system • Allow for comparison of Performance Over time • Timely, Accurate,
  • 52. The purpose of this step is to help the retailer and supplier to develop methods that capitalize on category opportunities by means of creative and efficient use of the resources that are accessible to the category. Category strategies can be aimed at developing traffic or transactions, generating cash, generating profit, enhancing the image or developing excitement. Every strategy aims to decrease market share of unprofitable brands, improving share of profitable ones. How? Defining promotions, prices, and exposures in order to influence the consumer choice. The seven most typical category marketing strategies are: • Traffic Building • Transaction Building • Turf Defending • Profit Generating • Cash Generating • Excitement Creating • Image Enhancing (Price, Quality, Service & Variety) Every strategy should be declined in 4 kinds of actions: Assortment, Price, Promotion, Exposure. Depending of the role we can identify: Price: Medium competitiveness Price: High competitiveness compared with compared with all the competitors main competitors Promotion focus on cut prices Promotion deep cut prices Exposure spaces in line with sales. Exposure overdimension the spaces. focus on margins. focus on the niches. best areas. Assortment number of products in line with the Assortment Number of products higher market. specific role for cheaper than the market. products and private labels. Many premium brands and exclusive ones. Price: Less competitive than Price: Medium competitiveness main competitors Promotion No promotions Promotion few promotions good margin Exposure Worst store areas Exposure correctly dimension the spaces. good areas. Assortment narrow assortment Assortment narrow assortment no private label private label in core segments no premium prices deep of premium prices Routine Destination Convenience Occasional 52
  • 53. Category Targets : We have to set targets in terms of gross margin (sales x margin%). Managing the sales mix is the best way to achieve our targets. So we need to influence the sales of every brand . 6. Category Tactics: • Specific activities supporting the category strategies which would include item variety, every day and feature price targets, shelf presentation, etc. • Category tactics are developed in the areas of assortment pricing, promotions and the presentation of the merchandise in the store Category Tactics Components:  Assortment  Pricing  Promotion  Shelf Presentation  Product Supply • Product based Tactics  Pack of 3 briefs @ Rs 99 with 10 % margin  Rs. 20000 wedding collection Sherwani  Exclusive range of Leather footwear  Fast Moving Consumer goods – Toothpaste, Diapers • Operational Tactics  High stacks in the action alley to give feel of plenty  Exclusive Boutique look with pictures of Models  Wide range of Leather Shoes in all possible color, size and brand options 53
  • 54. 7. Category Plan implementation: A specific implementation schedule is developed and responsibilities are assigned. Accurate implementation is the key to the success of the Category Management. Key Components of Plan Implementation  Approval Process  Strategic Fit  Scorecard Impact  Resource Allocation  Impact on Other Areas  Assigning Responsibilities  Scheduling 8. Category Review: Ongoing review and measurement of the progress of the plan toward the category role and scorecard, and modification of the plan when appropriate. Can be a 3 stage process:  Research and opportunity identification  Creation and implementation  Metrics, correction and learning The Category Captain:  Category captains is a supplier who forms an alliance with the retailer to enable the latter to develop consumer insight , satisfy consumers and improve performances and profit across the entire category.  Category captains receive downstream data for all SKUs, including competitor products, in the category they manage. The category captain advises the retailer on the best way to price, display, and promote all products in a category, including those of competitors. 54
  • 55. While this arrangement ensures retail efficiency, it does raise concerns about possible misuse of power by the category captain. After the category review step again they go to first step and it is a cyclical process. Objectives of the category management: • Remove unnecessary costs by re-engineering promotional practices. • Aligning supplier and distributor operations to retailer’s marketing strategy to support changes in demand. • Joint business planning. • Shared data on consumers, sales and products. • Retailer knowledge of customers, and purchasing behaviour. • Supplier knowledge of who purchases, their wants, and behaviours. • Mind-set change; suppliers focus on growth of whole category, including competitor brands, • Combine knowledge and skills to provide ideal category offer at point of purchase • Communication between managers at all supply chain levels • Balance customer needs with commercial, financial and strategic objectives. 55
  • 56. CHAPTER-V DATA ANALYSIS AND INTERPRETATION 56
  • 57. Data Analysis: The tools and methods of data collection identified earlier were employed to gather data on the consumer perception on Big Bazaar. The data accrued, especially from the interviews and questionnaires circulated, are tabulated and depicted on graphs in the following pages. The data thus gathered and tabulated is analyzed. The data is then scrutinized and relevant interpretations are drawn. The major objectives of analysis of data are: 1. To evaluate and enhance data quality 2. Examine effects of other relevant factors 3. Customer satisfaction ratio, 4. Level of satisfaction, 5. Causes of dis-satisfaction, 6. Customer responses regarding services. The data collection plan, including procedures, instruments, and forms, was designed and pre-tested to maximize accuracy. All data collection activities were monitored to ensure adherence to the data collection protocol and to prompt actions to minimize and resolve missing and questionable data. Monitoring procedures were instituted at the outset and maintained throughout the study, since the faster irregularities can be detected. The greater the likelihood that they can be resolved in a satisfactory manner and the sooner preventive measures can be instituted. 57
  • 58. Q. 1) Gender: Table No -1: S.NO OPTIONS No. of Respondents % of Respondents 1 Male 114 38% 2 Female 186 62% 3 Total 300 100% Graph No-1: Interpretation: It can be seen from the table no.1, out of the total respondents 38% of the respondents are males, 62% of the respondents are females.Most of the respondents are females. 58
  • 59. Q. 2) Age of the respondents: Table No-2: Graph No-2: 59 S.NO OPTIONS No. of Respondents % of Respondents 1 13-19 years 61 20% 2 20-30years 180 60% 3 30-40years 38 13% 4 40-50years 17 6% 5 Above 50years 4 1% 6 Total 300 100%
  • 60. Interpretation: It can be interpreted from the table no.2,out of the of the total respondents 20% of the respondents age is 13-19 years ,60% of the respondents are 20-30 years,13% of the respondents are 30-40 years , 6% of the respondents are 40-50 years and only 1% of the respondents are above 50 years age. Most of the respondents age group is 20-30 years. Q.3) Occupation: Table No-3: sssS.no OptionsoOccupation No.of Respondents % % of Respondentsdents 1 Unemployed/Students 98 33% 2 Employed 132 44% 3 Business People 70 23% 4 Total 300 100% Graph No-3: 60
  • 61. Interpretation: It can be observed from the table no.3,out of the of the total respondents 33% respondents are Unemployed/students ,44% respondents are Employed and 23% respondents are Business people .Most of the respondents are Employed. Q. 4) Education of Respondents: Table No-4: S.no Options No.of respondents %of Respondents 1 Primary Education 6 2% 2 Secondary Education 29 10% 3 Higher Secondary/Diploma/ITI 51 17% 4 Graduation( UG) 110 37% 5 Post graduation( PG) 92 31% 6 Higher than PG 12 4% 7 Total 300 100% Graph No-4: 61
  • 62. Interpretation: It can be seen from the table no.4,out of the of the total respondents 2% of the respondents education is primary education ,10% of the respondents education is secondary education,,17% of the respondents are higher secondary education ,37% of the respondents are graduates,31% of the respondents are post graduates and 4% of the respondents education is higher than Pg.Most of the respondents age Graduates. Q 5) Income of the Respondents: Table No-5: Graph No-5: 62 S.no Options Respondents %of Respondents 1 Less than Rs.15000/- 3 1% 2 Between Rs.15000/-and Rs.30000/- 23 8% 3 Between Rs.30000/-and Rs.50000/- 90 30% 4 More than Rs.50000/- 184 61% 5 Total 300 100%
  • 63. Interpretation: It can be observed from the table no.5, out of the total respondents 1% of the respondents annual income level less than Rs.15,000/- , 8% of the respondents annual income level Rs.15,000/- -Rs.30,000/-, 30% of the respondents annual income levels between Rs.30,000/- and Rs.50,000/-, 61% of the respondents annual income levels are above Rs.50,000/-.Most of the respondents are more than Rs.50,000/- annual level income customers. Q.6) Size of the family: Table No-6: S.no Options No of Respondents % of Respondents 1 Two 28 9% 2 Three 45 15% 3 Four 119 40% 4 Five 69 23% 63
  • 64. 5 Six 39 13% 6 Total 300 100% Graph No-6: Interpretation: It can be interpreted from the table no.6,out of the of the total respondents 9% of the respondents family size is two ,15% of the respondents family size is three,40% of the respondents family size is four,23% of the respondents family size is five,13% of the respondents family life cycle is six. Most of the respondents family size is four. Q.7) Frequency of Shopping: Table No-7: S.no Options No.of Respondents %of Respondents 1 Daily 5 2% 2 Weekly 52 17% 3 Biweekly 64 21% 4 Monthly 39 13% 5 Bimonthly 88 29% 6 as per requirement 52 17% 7 Total 300 100% 64
  • 65. Graph No-7: Interpretation: It can be seen from the table no.7, out of the of the total respondents 2% of the respondents shopping frequency is Daily,17% of the respondents shopping frequency is Weekly,21% of the respondents shopping frequency is Biweekly,13% of the respondents shopping frequency is Monthly,29% of the respondents shopping frequency is Bimonthly, 17% of the respondents shopping frequency is as per their requirement. Most of the respondents do shopping bimonthly. Q.8) most preferred time of shopping: Table No-8: S.no Options No.of respondents % Of Respondents 1 First week of month 128 43% 2 2nd week of month 89 30% 3 Lastweek of month 32 11% 4 As per requirement 51 17% 5 Total 300 100% 65
  • 66. Graph No-8: Interpretation: It can be observed from the table no.8,out of the of the total respondents are 43% of the respondents preferred time of shopping is First week of month,30% of the respondents prefers to shop in 2nd week of the month ,11% of the respondents prefer to shop on Last week of the month ,17% of the respondents prefer to shop as per their requirement. Most of the respondents prefer to shop on first week of the month. 9) Amount spent for month: Table No-9: S.no Options No.of Respondents %of Respondents 1 Less than Rs.1000/- 39 13% 2 Between Rs.1000/-toRs.5000/- 152 51% 3 Between Rs.5000/-toRs.10000/- 61 20% 4 More than Rs.10000/- 48 16% 5 Total 300 100% Graph No-9: 66
  • 67. Interpretation: It can be interpreted from the table no.9,out of the of the total respondents are 13% of the respondents spent Less than Rs.1000/- for shopping, 51% of the respondents spent between Rs.1000/- - Rs.5,ooo for shopping, 20% of the respondents spent between Rs.5,000/- - Rs.10,ooo for shopping,16% of the respondents spent more than Rs.,10000/-for shopping. Most of the respondents spent between Rs.1000/- - Rs.5,ooo for shopping. 10) Distance from outlet: Table No-10: S.no Options No.of Respondents %Of Respondents 1 Less than 1 k.m 62 21% 2 Between 1k.m-3 k.m 82 27% 3 Between 3k.m-5 k.m 102 34% 4 5 k.m-10 k.m 43 14% 5 More than 10 k.m 11 4% 6 Total 300 100% 67
  • 68. Graph No-10: Interpretation: It can be seen from the table no.10,out of the of the total respondents are 21% of the respondents are Less than 1km distance from outlet, 27% of the respondents are between 1km-3km distance from outlet, 34% of the respondents are between 3km-5km distance from outlet, 14% of the respondents are between 5km-10km distance from outlet and 4% of the respondents are more than 10km distance from outlet. Most of the respondents are between 3km-5km distance from outlet. 11) Family Lifecycle Stage: Table No-11: S.no Options No.of respondents %of Respondents 1 Younge couple with no children 28 9% 2 Couple with Children 79 26% 3 Couple with working Children 69 23% 4 Old couple working children with kids 34 11% 5 Old couple staying away from children 29 10% 6 Any other 61 20% 7 Total 300 100% 68
  • 69. Graph No-11: Interpretation: It can be observed from the table no.11,out of the of the total respondents are 9% of the respondents family life cycle stage is Young couple with no children, 26% of the respondents family life cycle stage is couple with children, 23% of the respondents family life cycle stage is couple with working children, 11% of the respondents family life cycle stage is old couple working children with kids, 10% of the respondents family life cycle stage is old couple staying away from children , and 20% of the respondents family life cycle stage is any other. Most of the respondents family life cycle stage is couple with children. 12) Number of product categories available in the store are good? Table No-12: S.no Options No.of Respondents % of Respondents 1 Strongly agree 66 22% 2 Agree 152 51% 3 Slightly agre 44 15% 4 Disagree 38 13% 5 Strongly disagree 0 0% 6 Total 300 100% Graph No-12: 69
  • 70. Interpretation: It can be interpreted from the table no.12, out of the of the total respondents are 22% of the respondents are strongly Agreed, 51% of the respondents are Agreed, 15% of the respondents are slightly agreed, 13% of the respondents are Disagreed, no one of the respondents are Strongly Disagreed with that the Number of product categories available in the store are good .Most of the respondents are Agreed with this statement . 13) I know where the category is starting on the shop floor . Table No-13: S.no Options No.of Respondents % of Respondents 1 Strongly agree 31 10% 2 Agree 141 47% 3 Slightly agree 77 26% 4 Disagree 46 15% 5 Strongly disagree 5 2% 6 Total 300 100% 70
  • 71. Graph No-13: Interpretation: It can be seen from the table no.13, out of the of the total respondents are 10% of the respondents are strongly agreed, 47% of the respondents are Agreed, 26% of the respondents are slightly agreed, 15% of the respondents are Disagreed, 2% of the respondents are Strongly Disagreed with the question “I know where the category is starting on the shop floor”.Most of the respondents are Agreed to this question. 14) I know where the category is ending on the shop floor. Table No-14: 71 S.no Options No.of Respondents %of Respondents 1 Strongly agree 31 10% 2 Agree 131 44% 3 Slightly agree 87 29% 4 Disagree 46 15% 5 Strongly agree 5 2% 6 Total 300 100%
  • 72. Graph No-14: Interpretation: It can be observed from the table no.14, out of the of the total respondents are 10% of the respondents are strongly agreed, 44% of the respondents are Agreed, 29% of the respondents are slightly agreed, 15% of the respondents are Disagreed, 2% of the respondents are Strongly Disagreed with the question “I know where the category is ending on the shop floor”. Most of the respondents are agreed to this question. 15) There is a good identification /Signage boards about categories which are available. Table No-15: 72
  • 73. Graph No-15: Interpretation: It can be interpreted from the table no.15, out of the of the total respondents are 9% of the respondents are strongly agreed, 26% of the respondents are Agreed, 46% of the respondents 73 S.no Options No.of Respondents %of Respondents 1 Strongly agree 26 9% 2 Agree 78 26% 3 Slightly agree 138 46% 4 Disagree 49 16% 5 Strongly disagree 9 3% 6 Total 300 100%
  • 74. are slightly agreed, 16% of the respondents are Disagreed, 3% of the respondents are Strongly Disagreed with the Identification/Signage boards about categories which are available are good. Most of the respondents are agreed to this. 16) There are clear price tags on each product on a category. Table No-16: Graph No-16: 74 S.no Options No.of Respondents %of Respondents 1 Strongly agree 3 1% 2 Agree 56 19% 3 Slightly agree 148 49% 4 Disagree 88 29% 5 Strongly disagree 15 5% 7 Total 300 100%
  • 75. Interpretation: It can be seen from the table no.16, out of the of the total respondents are 1% of the respondents are strongly agreed, 19% of the respondents are Agreed, 49% of the respondents are slightly agreed, 29% of the respondents are Disagreed, 5% of the respondents are Strongly Disagreed with that the price tags on each product of each category are good. Most of the respondents are slightly agreed with this. 17) There are good numbers of brands available in each category. Table No-17: 75 S.no Options No.of Respondents %of Respondents 1 Strongly agree 89 30% 2 Agree 153 51% 3 Slightly agree 46 15% 4 Disagree 12 4% 5 Strongly disagree 0 0% 6 Total 300 100%
  • 76. Graph No-17: Interpretation: It can be observed from the table no.17, out of the of the total respondents are 30% of the respondents are strongly agreed, 51% of the respondents are Agreed, 15% of the respondents are slightly agreed, 4% of the respondents are Disagreed, no one of the respondents are Strongly Disagreed with that there are good number of brands available in each category. Most of the respondents are agreed with this. 18) The products in each category are arranged in a systematic manner like price wise,brand wise,quantity wise etc. Table No-18: 76
  • 77. Graph No-18: Interpretation: It can be interpreted from the table no.18, out of the of the total respondents are 8% of the respondents are strongly agreed, 26% of the respondents are Agreed, 38% of the respondents 77 S.no Options No.of Respondents %of Respondents 1 Strongly agree 23 8% 2 Agree 79 26% 3 Slightly agree 115 38% 4 Disagree 72 24% 5 Strongly disagree 11 4% 6 Total 300 100%
  • 78. are slightly agreed, 24% of the respondents are Disagreed, 4% of the respondents are Strongly Disagreed with that there are good number of brands available in each category. Most of the respondents are slightly agreed with this. 19) The store provides all required product categories as far as my needs and wants are concern. Table No-19: Graph No-19 78 S.no Options No.of Respondents %of Respondents 1 Strongly agree 81 27% 2 Agree 156 52% 3 Slightly agree 43 14% 4 Disagree 20 7% 5 Strongly disagree 0 0% 6 Total 300 100%
  • 79. Interpretation: It can be seen from the table no.19, out of the of the total respondents are 27% of the respondents are strongly agreed, 52% of the respondents are Agreed, 14% of the respondents are slightly agreed, 7% of the respondents are Disagreed, no one of the respondents are Strongly Disagreed with that there are good number of brands available in each category. Most of the respondents are agreed with this. 20) The space available for customer shopping in the outlet is according to the number of categories available in the outlet . Table No-20: 79 S.no Options No.of Respondents %of Respondents 1 Strongly agree 36 12% 2 Agree 60 20% 3 Slightly agree 112 37% 4 Disagree 70 23% 5 Strongly disagree 22 7% 6 Total 300 100%
  • 80. Graph No-20: Interpretation: It can be observed from the table no.20, out of the of the total respondents are 12% of the respondents are strongly agreed, 20% of the respondents are Agreed, 37% of the respondents are slightly agreed, 23% of the respondents are Disagreed, 7% of the respondents are Strongly Disagreed with that The space available for customer shopping in the outlet is according to the number of categories available in the outlet . Of the respondents are slightly agreed with this. 21) All products in the categories are accessible for the customer. Table No-21: 80
  • 81. Graph No-21: Interpretation: It can be interpreted from the table no.21, out of the of the total respondents are 7% of the respondents are strongly agreed, 25% of the respondents are Agreed, 48% of the respondents are slightly agreed, 19% of the respondents are Disagreed, 2% of the respondents are Strongly 81 S.no Options No.of Respondents %of Respondents 1 Strongly agree 20 7% 2 Agree 74 25% 3 Slightly agree 145 48% 4 Disagree 56 19% 5 Strongly disagree 5 2% 6 Total 300 100%
  • 82. Disagreed with that the space available for customer shopping in the outlet is according to the number of categories available in the outlet .Most of the respondents are agreed with this. 22) There is a mechanism in the outlet which notices the categories which are required by the customer but unavailable in the store. Table No-22: Graph No-22: 82 S.no Options No.of Respondents %of Respondents 1 Strongly agree 22 7% 2 Agree 41 14% 3 Slightly agree 61 20% 4 Disagree 132 44% 5 Strongly disagree 44 15% 6 Total 300 100%
  • 83. Interpretation: It can be seen from the table no.22, out of the of the total respondents are 7% of the respondents are strongly agreed, 14% of the respondents are Agreed, 20% of the respondents are slightly agreed, 44% of the respondents are Disagreed, 15% of the respondents are Strongly Disagreed with that There is a mechanism in the outlet which notices the categories which are required by the customer but unavailable in the store.Most of the respondents are Disagreed with this. 23) Effective Category Management motivates the customer to shop in an outlet. Table No-23: 83 S.no Options No.of Respondents %of Respondents 1 Strongly agree 68 23% 2 Agree 120 40% 3 Slightly agree 77 26% 4 Disagree 26 9% 5 Strongly disagree 9 3% 6 Total 300 100%
  • 84. Graph No-23: Interpretation: It can be observed from the table no.23, out of the of the total respondents are 23% of the respondents are strongly agreed, 40% of the respondents are Agreed, 26% of the respondents are slightly agreed, 9% of the respondents are Disagreed, 3% of the respondents are Strongly Disagreed with that There is a mechanism in the outlet which notices the categories which are required by the customer but unavailable in the store.Most of the respondents are agreed with this. 24) Effective Category Management retains the customer with an outlet. Table No-24: 84
  • 85. Graph No-25: Interpretation: It can be interpreted from the table no.24, out of the of the total respondents are 32% of the respondents are strongly agreed, 42% of the respondents are Agreed, 17% of the respondents are slightly agreed, 7% of the respondents are Disagreed, 2% of the respondents are Strongly Disagreed 85 S.no Options No.of Respondents %of Respondents 1 Strongly agree 97 32% 2 Agree 125 42% 3 Slightly agree 51 17% 4 Disagree 21 7% 5 Strongly disagree 6 2% 6 Total 300 100%
  • 86. with that The Effective Category Management retains the customer with an outlet.Most of the respondents are agreed with this. 25) Overall Category Management in the outlet is good. Table No-25: Graph No-25: 86 S.no Options No.of Respondents %of Respondents 1 Strongly agree 53 18% 2 Agree 148 49% 3 Slightly agree 75 25% 4 Disagree 21 7% 5 Strongly disagree 3 1% 6 Total 300 100%
  • 87. Interpretation: It can be seen from the table no.25, out of the of the total respondents are 18% of the respondents are strongly agreed, 49% of the respondents are Agreed, 25% of the respondents are slightly agreed,7% of the respondents are Disagreed ,1% of the respondents are Strongly Disagreed with that The Overall Category Management in the outlet is good. Most of the respondents are agreed with this. CHAPTER-VI • SUMMERY • FINDINGS • SUGGESTIONS 87
  • 88. • ANNEXURES • BIBLIOGRAPHY SUMMARY Category management is a retailing and purchasing concept in which the range of products purchased by a business organization or sold by a retailer is broken down into discrete groups of similar or related products; these groups are known as product categories. Here the need of this study is to know what the customers of big bazaar are perseving about the category management in the store. And impact of category management on customers purchase. When 88
  • 89. a customer is making a buying decision on a specific product of a category whether he is looking correct product, price, large assortments. Because company following category management to influence the customers to make a buying decision, where my study is to know how much impact making a buying decision and what elements looking for in a category management to attract customers towards a product of a particular category. To study how customers reacts towards the category management in bigbazaar, kachiguda. To study category management influence on customers to make a decision. To find out which element is need to get most customer attention. To know that is category management really impact on customer buying decisions. To know to what extent category management helps in increasing sales. Primary data is the new or fresh data collected from the respondents through direct interview using a pre-structured questionnaire. Secondary data may be obtained from many sources, including literature, industry surveys, compilations from computerized databases and information systems, and computerized or mathematical models of environmental processes. Most of the customers in the big bazaar are female customers, most of the respondents age group is 20-30 years, most of the respondents are employed and graduates, and their family income is more than Rs.50,000/-.they shop bimonthly, their preferred time of the shopping is First week of the month with spending amount between Rs.1,000 –Rs.5,000.And most of the customers come within the distance of 3km-5km. Most of the customers agreed that the number of product categories available in the kachiguda big bazaar is good. Most of the customers of big bazaar know that know where the category is starting 89
  • 90. and ending on the shop floor. There are good identification / Signage boards about categories which are available in the big bazaar kachiguda.But, the price tags on the products are not much good. Sometimes price of the product becomes change at the time of billing instead of the discount price given on the product. There are good numbers of brands available in each category, products in each category are arranged in a systematic manner like price wise, brand wise, quantity wise etc. The Store provides all required product categories as far as customer needs and wants are concern. All products in the categories are accessible for the customer. Effective Category Management motivates the customer to shop in an outlet and retains the customer with the outlet. And finally we can conclude that the overall category management in Kachiguda big bazaar store is good and effective. FINDINGS • Majority of the respondents are females. • Majority of the respondents are in the age between 20-30 years. • Majority of the respondents are Employed. 90
  • 91. • Majority of the respondents are graduates. • Majority of the respondents income is more than Rs.50,000/- • Majority of the respondents are with the family size of 4 members. • Majority of the respondents come for shopping Bimonthly. • Majority of the respondents most preferred of shopping is First week of the month. • Majority of the respondents spend the amount between Rs.1,000/- to Rs.5,000/- • Majority of the respondents reside with the distance between 3km-5km from the outlet. • Majority of the respondents Family lifecycle stage is couple with children. • Majority of the respondents Agreed that the number of products available in the kachiguda store are good. • Majority of the respondents agreed to that they know where the category is starting and ending on the shop floor. • Majority of the respondents are slightly agreed that there is a good identification/signage boards about categories which are available in the store. • Majority of the respondents are slightly agreed that there are clear price tags on each product on a category in the store. • Majority of the respondents agreed that there are good numbers of brands are available in each category. • Majority of the respondents are slightly agreed that the products in each category are arranged in a systematic manner like price wise, brand wise, quantity wise etc. • Majority of the respondents are agreed that the store provides all required product categories as far as my needs and wants are concern. • Majority of the respondents are slightly agreed that the space available for customer shopping in the outlet is according to the number of categories available in the outlet. • Majority of the respondents are slightly agreed that all the products in the categories are accessible for the customer. • Majority of the respondents disagreed that there is a mechanism in the outlet which notices the categories which are required by the customer but unavailable in the store. 91
  • 92. • Majority of the respondents agreed that the effective category management motivates the customer to shop in an outlet. • Majority of the respondents agreed that Effective category management retains the customer with an outlet. • Majority of the respondents agreed that the overall category management in the outlet is good. SUGGESTIONS • Clear price tags on each product on a category in the store should be maintained. So that the customer can take buying decision. 92
  • 93. • Allowing more space between the entrance of a store and a product gives it more time in the shopper’s eye as he or she approaches it. It builds a little visual anticipation towards the specific category. • Most respondents take on the spot decision of buying different products because of the various attractive products displays. So pretty combination with good services should be done to retain customers. • Arrange the products in each category in a systematic manner like price wise, brand wise, quantity wise etc. to attract customers towards a specific product category. 93
  • 94. ANNEXURE A STUDY ON CATEGORY MANAGEMENT IN KACHIGUDA BIGBAZAAR Socio-Economic Profile S.No. Variable Categories Please TICK [ √ ] 1 Gender Male Female 94
  • 95. 2 Age 13 - 19 years 20 - 30 years 31 - 40 years 41 - 50 years above 50 years 3 Occupation Unemployed / Students Employed Business people 4 Education Primary Education Secondary Education Higher Secondary / Diploma / ITI Graduation (UG) Post Graduation (PG) Higher than PG 5 Income Less than Rs.15,000/- Between Rs.15,000/- and Rs.30,000/- Between Rs.30,000/- and Rs.50,000/- More than Rs.50,000/- 6 Size of Family Two Three Four Five Six Shopping Behavior of Customers S.No. Variable Categories Please TICK [ √ ] 7 Frequency of shopping Daily Weekly Biweekly Monthly Bimonthly 95
  • 96. as per requirement 8 Most preferred Time of shopping first week of month 2nd week of month last week of month as per requirement 9 amount spent per month less than Rs.1000/- between Rs.1000/- to Rs.5000/- between Rs.5000/- to Rs.10000/- more than Rs.10000/- 10 distance from home to outlet less than 1 k.m. between 1 k.m. - 3 k.m. between 3 k.m. - 5 k.m. 5 k.m. - 10 k.m. more than 10 k.m. 11 Family Life Cycle Stage Young Couple with no children Couple with children Couple with working children Old Couple-working children with kids Old Couple staying away from children Please TICK [ √ ] in any appropriate box S.No . Category Management Practices Strongly Agree Agree Slightly Agree Disagree Strongly Disagree 12 The number of product categories available in the store is good. 13 I know where the category is starting on the shop floor. 14 I know where the category is ending on the shop floor. 96
  • 97. 15 There is a good identification / Signage boards about categories which are available. 16 There are clear price tags on each product in a category. 17 There are good numbers of brands available in each category. 18 The products in each category are arranged in a systematic manner like price wise, brand wise, quantity wise etc. 19 The Store provides all required product categories as far as my needs and wants are concern. 20 The space of available for customer shopping in the outlet is according to the number of categories available in the outlet. 21 All products in the categories are accessible for the customer. 22 There is a mechanism in the outlet which notices the categories which are required by the customer but unavailable in the store. 23 Effective Category Management motivates the customer to shop in an outlet. 24 Effective Category Management retains the customer with an outlet. 25 Overall Category Management in the outlet is good. BIBLIOGRAPHY References:  Philip Kotler, marketing management, 97
  • 98.  Research design,  (Prentice hall of India pvt. 5th edition) o Berman B and Evans J.R, Retail Management  (Pearson education, 10th edition o Service Marketing by M.K Rampal o Integrated service marketing (4th edition) by Zeithmal Internet web sites:  bigbazaar.co.in  literature review on bigbazaar.com  retailseminar.in  organizedretail.co.in  google.com  www.futuregroup.com 98