International management of future group

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Project Report on
INTERNATIONAL MANAGEMENT OF FUTURE GROUP
In partial fulfilment of requirement for the
Award of Degree of M.Com
Subject:
International Marketing
Submitted By:
Mr. Hitesh Rohra
Roll No. 117
M.Com. Part – II, Semester - IV
Under the Guidance of:
Prof. Mr. PrakashMulchandani
SMT. CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE
ULHASNAGAR – 421003
UNIVERSITY OF MUMBAI
2015 – 2016

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International
Management Of Future
Group

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DECLARATION
I, Mr. Hitesh Rohra student of SMT. CHANDIBAI HIMATMAL
MANSUKHANI COLLEGE, ULHASNAGAR studying in M.Com Part –
II, Semester – IV, hereby declare that I have completed this project on
“International Management Of Future Group” for the subject
“International Marketing” in the academic year 2015-16.The information
submitted is true and original to the best of my knowledge.
_______________
Mr. Hitesh Rohra

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ACKNOWLEGEMENT
To list who all have helped me is difficult because they are so
numerous and the depth is so enormous.
I would like to acknowledge the following as being idealistic
channels and fresh dimensions in the completion of this project
I take this opportunity to thank the University of Mumbai
forgiving me chance to do this project.
I would like thank my Principal, Dr. Manju Lalwani Pathak for
providing the necessary facilities required for completion of this
project.
I would also like to express my sincere gratitude towards my
project guide Prof. Mr. Prakash Mulchandani whose
guidance and care made the project successful.
I would like to thank my college library, for having provided
Various reference books and magazines related to my project.
Lastly I would like to thank each & every person who directly or
indirectly helped me in completion of the project especially my
parents & peers who supported me throughout my project.

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EXECUTIVE SUMMARY
The Indian retail industry, one of the fastest growing industries in the country over
the past couple of years is no exception. There is no doubt that the Indian retail scene
is booming. India’s retailing boom is the result of rapid globalization and the
recognition of being a very potential market by big giants and foreign companies
making the market more competitive. This has caused existing retailer’s tore-tailor
their strategies to suit the new landscapes.
This retail industry deals Food Bazaar and various sections which help the society
with their daily needs. After interaction with customers I found that they are more
satisfied with the food bazaar rather than any other products.
While working on this project various topics and concepts came to the knowledge
which was unheard and unknown before. A survey was also conducted for this project
which mainly focuses on the consumer behaviour towards Big Bazaar. It would also
help in knowing the various factors that are influence consumer behaviour and
understand consumer behaviour towards Big Bazaar. Big Bazaar has brought about
many changes in the buying habits of people.
It has created formats, which provide all items under one roof. Big Bazaar has
maintained that uniqueness& succeeded in attracting customers.
Big Bazaar is not just another hypermarket. It caters to every need of your family. Big
Bazaar scores over other stores is its value for money proposition for Indian
Customers. With the ever-increasing array of private labels, it has opened doors in the
world of fashion and general merchandise, including home furnishings, utensils,
crockery, sport goods and much.

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OBJECTIVES OF THE STUDY
The main objective is to determine the current consumer behavior levels of the customers
with regards to Big Bazaar.
 To study and analyze consumer shopping behavior towards Big Bazaar.
 To assess the behavior level of different type of customers shopping at Big Bazaar.
 To identify what type of strategies are suitable for the company to reach the
targeted customers.
 To find out the factors which influence the consumption of the products in Big
Bazaar.
 To identify effective advertising sources which are influencing
customer purchasing behavior at Big Bazaar.

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Sr no. Title Page no.
1 INTRODUCTION OF COMPANY 02
2 PRODUCT PORTFOLIO 07
3 COMPANY ORIENTATION TOWARDS
MARKET PLACE
08
4 ANALYZING THE
MACROENVIRONMENT
13
5 CUSTOMER PERCEIVED VALUE 16
6 ANALYZING CONSUMER BEHAVIOR 19
7 BASES FOR MARKET
SEGMENTATION
21
8 FIVE PATTERNS OF TARGET
MARKET SELECTION
26
9 BRAND ELEMENTS 27
10 PRODUCT LIFE CYCLE 31
11 PRODUCT STRATEGIES 36
12 PRICING STRATEGIES 47
13 DISTRIBUTION STRATEGIES 49
14 PROMOTION MIX 50
15 PACKAGING AND LABELING 51
16 FINDINGS , CONCLUSION &
REFERENCES
52

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INTRODUCTION OF COMPANY
Future Group is India’s largest retailer and one of the leading CEO is Mr. Kishore
Biyani.
Future Group India was established in 1994 with a vision to provide diverse
services in Indian and Global markets. The business areas of Future Group cover BPO
(Business Process Outsourcing), New Media, Security Management, and Construction.
Through their strategic investment and services, the future of Future Group shows a
rising star in the business sky of India.
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 modern retail.
Lines of Business
The company is present across several lines of business which have various formats
(stores) operational under it. These include:
 Food - Food Bazaar, Chamosa, Spoon, Brew Bar, Sports Bar & Sports Bar Express,
Cafe Bollywood.
 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

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 Home & Electronics - Home Town, eZone, Collection i
 E-tailing (Online Shopping) - www.futurebazaar.com
 Books & Music - Depot
 Leisure & Entertainment - Bowling Co., F123
 Wellness - Star & Sitara, Tulsi
 Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeM
FUTURE RETAIL:
The retails businesses of Future Group in India are divided into three main categories:
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.
Pantaloon Retail India Limited
The leading retail formats under this include:
 Pantaloons Stores -lifestyle segments and fashion segment.
 Big Bazaar - a uniquely Indian hypermarket chain
 Central - a chain of seamless destination malls
 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
 Home Town - , a large-format home solutions store
 E Zone - consumer electronics
 Depot - consumer electronics
 Health & Beauty Malls
 Online retail through futurebazaar.com

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 Aadhaar- India’s leading rural retailing chain, 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.
 Furniture Bazaar - specialized formats for home furniture and home furnishing
 Ethnicity - India's first concept store, which recreates the experience of a traditional
ethnic market in a modern retail format,
Joint Ventures with International Brands
 Indus League Clothing that owns leading apparel brands like Indigo Nation, Scullers
and Urban Yoga
 Galaxy Entertainment Limited that operates Bowling Co, Sports Bar, F123 and Brew
Bar
 French retailer ETAM group, US-based stationary products retailer, Staples and UK-
based Lee Cooper.
 Franchisee of international brands like Marks & Spencer, Next, Debenhams and
Guess in India.
Indian Joint Venture Partners
 Manipal Healthcare
 Talwalkar's
 Blue Foods
 Liberty Shoes.
FUTURE CAPITAL HOLDINGS
The financial services of Future Group are taken care by Future Capital Holdings. These
include:
 Asset Management and consumer credit are the prime focus financial services.
Around 1 billion USD have been invested in retail real estate and consumer brands
outlets and hotels.

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 Future Money - It is a financial supermarket format providing consumer credit
 Joint venture with Italian insurance major General Insurance for providing general
insurance services.
 Venture Capital Funds and Private Equity Funds through kshitijfund.com
 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.
BPO (BUSINESS PROCESS OUTSOURCING)
Future Group has made major investments in BPO industry as a venture into the
Information Technology Enabled services (ITES) industry. Future Group has subsidiaries
offering IT based solutions. These include:
 Language Services
 Software Development
 Content Engineering
NEW MEDIA
Future Group has invested in digital media and computer technology for creating
innovative and interactive multimedia presentations. These include:
 Multimedia Production
 Broadcasting
 Publishing
 Designing
SECURITY MANAGEMENT
Future Group is considered as a reliable tailor-made business and security services
provider. They develop their own software and machines for security services. These
include:

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 Access Control Systems
 Time Attendance Systems
 CCTV
 Alarm Management Systems
CONSTRUCTION
Future Group brings to you their past experience in quality construction for building and
renovating buildings for leasing to business. Future Group is also involved in the
designing, financing and legal considerations of the project undertaken. The construction
activities of Future Group in India include:
 Leasing
 Landscaping
SUPPLY CHAIN
Future Supply Chain Solutions Limited (FSCS), a specialized subsidiary, offers
strategic, focused and consolidated approach to meet the group’s large supply chain
requirements as well as those of select supply and business partners.
The Future Supply Chain Solutions team currently oversees the operations of an
existing fleet of over 600 dedicated trucks, contracted from established regional and
national transport carriers, most of which are now equipped with GPS sets.
In addition it provides integrated end-to-end SCM, warehousing and distribution,
multi-modal transportation and container freight station.
The total consolidated warehouse space that the company intends to have
operational by 2010-11 is nearly 7.50 million square feet.

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PRODUCT PORTFOLIO OF FUTURE GROUP
As mentioned in the introduction of the company, Future Group’s core business
activity is retail, along with BPO (Business Process Outsourcing), New Media, Security
Management, and Construction. So here below are the logos of their various brands.
Please see the IMPORTANT NOTE given below the brand images.
IMPORTANT NOTE:- From the various brands of the company we have mainly
focused on BIG BAZAAR in relating the marketing management concepts.

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COMPANY ORIENTATION TOWARDS MARKET PLACE
There are mainly five concepts related to company orientation towards market place
which are:
1. The Production concept
2. The Product concept
3. The Selling concept
4. The Marketing concept
5. The Holistic marketing concept
 The concept which applies to Big Bazaar is The Selling concept.
 The concept says that the consumer if left alone will not buy enough. This is true and
Big Bazaar applies this concept by displaying all the product of different brand and its
private brand on the shelves.so that the customer have a huge variety of products and
can select the best out of it and some schemes are also available which attracts the
customer to buy more and even purchase other product.
 Their need to be aggressive communication with the customer. There is sales person
at the counter which helps the customer in finding out the best product for himself.
Sometimes the customer might be in confusion whether to buy a product or not, at
that time the salesperson tell them about the product and its requirement in their lives.
After communicating all this about the product the customer then finally makes a
decision of making a purchase. So aggressive communication is required with the
customer.
 This concept also says that their needs to be aggressive marketing of the product so
that buyer make a purchase.
 The main purpose of this concept is to sell more and earn more.
 This concept overall means that sell what you want to instead of what the customer
want to buy.

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 Another concept which relates to Big Bazaar is The Marketing concept.
 The concept says that “Create the best and deliver the best” and Big Bazaar does the
same through their SACH brand. They try to create the best by the name of Sachin
Tendulkar and deliver the quality product.
 Next concept comes the “HOLISTIC MARKETING” which means “Everything
matters in this market”
 It is an approach to recognize the scope of Marketing Activities.
 These are the four major themes on which any companies' overall position can be
judged.
 This concept helps companies to have a complete approach towards their
requirement.
 The integrated marketing includes all the following:
Holistic
Marketing
Integrated
Marketing
Relationship
Marketing
Performance
Marketing
Internal
Marketing

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 The integrated marketing includes the four P’s i.e. Product, price, Place and
Promotion. Big Bazaar takes due care of its product quality, it provide the product
lower than its cost to the customer, Big Bazaar is set up at such a place which is
convenient for the customer and for the business and it does promotion through
different media i.e. television, print etc.
Integrated
Product
Price
Place
Promotion

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 Performance marketing :-
 Performance includes sales revenue of Big Bazaar, Legal that is the legal aspects of
the business, ethics which they follow and environment of the business.
Performance
Sales
Revenue
Legal
Environment
Ethics

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 Relationship marketing :-
 Relationship:- which includes maintaining relationship with the customers,
employees, partners and the channel.
 Internal marketing :-
 Internal :- which means one department share profit with other departmental of same
organisation is called profit internal sharing.
Relationship
Customers
Employees
Channel
Partners
Internal
Marketing Department Senior Management Other Departments

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ANALYZING THE MACROENVIRONMENT
 NEEDS and TRENDS
 Successful companies recognize and respond profitably to needs and trends which
could not be carried out earlier.
 Enterprising individuals and companies manage to create new solutions to unmet
needs. Similarly, Big Bazaar identified the need for cheap and discounted products.
They started the operation with the tag line “Is se sasta aur accha kahin nahin” by
providing best products at best price.
 We distinguish among fads, trends and megatrends.
 A fad is unpredictable, short-lived, and without social, economic, and political
significance. A company can cash in on a fad, but this is more a matter of luck and
good timing than anything else. E.g. Beanie Babies.
 A trend is a direction or sequence of events that has some momentum and durability.
Trends are more predictable and durable than fads. A trend reveals the shape of the
future and provides many opportunities. The percentage of people who value physical
fitness and well-being has risen steadily over the years, especially in the under-30
group, the young women and upscale group.
 Mega trends have been described as large social, economic, political and
technological changes that are slow to form, and once in place, they influence us for
some time between seven and ten years, or longer.

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 From the above, study we would say that the concept of Mega Trends applies to Big
Bazaar as people of India are not used to Big Bazaar (Retail Model). It takes time to
adopt it. People are still buying the products from the open market in traditional way.
 Identifying the Major Forces
 Companies and their suppliers, marketing intermediaries, customers, competitors,
publics all operate in a macro environment of forces and trends that shape
opportunities and pose threats. These forces are not controllable but the company
must monitor and respond timely to these forces. In the economic arena, companies
and consumers are increasingly affected by global forces.
 The beginning of the new century brought a series of new challenge: the steep decline
of the stock market, which affected savings, investment, and retirement funds;
increasing unemployment; corporate scandals; and of course, the rise of terrorism.
These dramatic events were accompanied by the continuation of other, already-
existing longer-term trends that have profoundly influenced the global landscape.
 Within the rapidly changing global picture, the firm must monitor six major forces:
demographic, economic, social-cultural, natural, technological, and political-legal.
 Technological:
 One of the most dramatic forces shaping people’s lives is technology. Technology has
released such wonders as penicillin, open-heart surgery, and the birth-control pill.
 Big Bazaar planning and design used advance technologies like scenario-planning
and story-telling. These techniques were mainly used for store-design layout, store-
location selection. The strategy to use user-focused, prototype-based development
tool made the brand adapt to the fast-changing external environment.

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 Social Cultural:
 Society shapes our beliefs, values, and norms. People absorb, almost unconsciously, a
worldview that defines their relationship to themselves, to others, to organizations, to
society, to nature, and to the universe.
 Similarly, Big Bazaar launched a campaign Des Badla Ab Vesh Badlo (nation is
changing, so change the way you dress), Sone ki Chidiya two years ago. It also
follows consumer segmentation according to social-cultural factors. It also promotes
environment friendly carry bags with easy to dispose. It also undertakes various
activities for the welfare of the society popularly known as corporate social
responsibility.
 Political-Legal:
 Marketing decisions are strongly affected by developments in the political and legal
environment. This environment is composed of laws, government agencies, and
pressure groups that influence and limit various organizations and individuals.
Sometimes these lows are creating new opportunities for business.
 Big bazaar is following various laws like labour law and consumer law. It also
regulates various safety measures in the store.
 Big bazaar is also following various government policies, tax policies with regularly
paying tax and filling return.

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CUSTOMER PERCEIVED VALUE
Consumers are more educated and informed than ever, and they have the tools to
verify companies’ claims and seek out superior alternatives.
How then do customers ultimately make choices ? they tend to be value
maximizers, within the bounds of search costs and limited knowledge, mobility and
incomes. Customers estimate which offer will deliver the most perceived value and act on
it. Whether the offer lives up to the expectations affects customer satisfaction and the
probability that the customer will purchase the products again.
Customer-perceived value is the difference between the prospective customer’s
evaluation of all the benefits and all the costs of an offering and the perceived
alternatives.
Total customer benefits is the perceived monetary value of the bundle of
economic, functional and psychological benefits customers expect form a given market
offering because of the products, services, personnel and image involved.
Total customer cost is the perceived bundle of costs customers expect to incur in
evaluating, obtaining, using and disposing of the given market offering, including
monetary, time, energy and psychological costs.
CONSUMER INSIGHT AND PERCEPTION
Big Bazaar is based on 3-C theory of Kishore Biyani. The three C symbolize Change,
Confidence and Consumption and according to this theory “change and confidence is
leading to rise in consumption”. They divided Indian customers in three categories:-
India One
 Consuming class, constitute only 14% of Indian Population
 They are upper middle class and most of customers have substantial disposable
income
 Initial focus of Big Bazaar

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India Two
 Serving Class which includes people like drivers, household helps, office peons,
washer man etc.
 For every India One, there are at least India two and have around 55% of Indian
population.
India Three
 Struggling class, remaining population of India.
 Cannot afford to inspire for better living, have hand-to-mouth existence.
 Needs cannot be addressed by current business models
The potential customers of Big Bazaar are India One and India Two. The customer
insights were developed by close observation of the target set. The insights that came out
were:-
 The clean and shiny environment of modern retail stores creates the perception that
such store are too expensive and exclusive, and are not meant for India two.
 India two find moves and find a lot of comfort in crowds, they are not individualistic.
They prefer to be in queues.
 Indian-ness is not about swadeshi, it’s about believing in Indian ways of doing things.
 Indian customers prefer to purchase grains, grams etc. after touching them, so it’s
better not to sell in polythene packs. Big Bazaar has counters where you can touch
wheat, rice, sugar etc. before purchasing.
 Advertisements about schemes and offers through local newspapers, radio in local
languages inspires customer more than the traditional ways.
 The guards, salesman at the Big Bazaar outlets should not look smarter than
customer, so they prefer not to have tie etc. in their uniform.
 Hypermarkets in India should be situated in city unlike western countries where they
are located away from city.

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 Purchased Bags/goods should be sealed at checkout as customer can enter and exit
multiple times.
 For Indians, shopping is an entertainment; they come in groups, with families so Big
Bazaar should offer
 something to every section of family. That also led separate section for clothes,
vegetables, food etc. i.e. Multiple clusters within a bazaar.
 Developed a diversity tracing.

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ANALYZING CONSUMER BEHAVIOR
Consumer behavior is the study of how individuals, groups and organizations select,
buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and
wants.
A consumer’s buying behavior is influenced by cultural, social, and personal factors.
Cultural factors exert the broadest and deepest influence.
 Factors affecting consumer behaviour :-
 Cultural factors :-
 Culture, subculture and social class are particularly important influences on consumer
buying behaviour.
 In the case of big bazaar, the frequency of visits by the customer and the kind of
products they buy influence their buying behaviour pattern.
 The cultural values of the customer also influence their visit to buy the required
products at the big bazaar.
 Social factors :-
 Social factors such as reference groups, family and social roles, statuses affect our
buying behaviour.
 Reference groups involve family, friends and neighbours.
 Customers of big bazaar might influence others persons of their reference groups to
buy products from big bazaar.
 Social status of the people influences their buying behaviour.
 For example, high class people go to big bazaar for shopping.
 Personal factors :-
 Age and stage in the life cycle are the personal factors which influence customer
buying behaviour.

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 Children will buy different products from big bazaar according to their choice and
middle-aged persons and old-aged persons buy different products.
 So the products for all the groups of the family are available at big bazaar, this
influence their buying behaviour.
 Lifestyles of the people also influence buying behaviour.
 Some people are uneasy to go to the small kiryana shop for their shopping.
 Buying Behaviour process :-
 The above chart shows the buying behaviour process of the customers.
 From the total set of Big bazaar, V-mart, Star bazaar, Reliance super and a local
departmental store.
 The customers are aware about Big bazaar, Reliance super, V-mart and Star bazaar.
 To buy their required products and for shopping they consider Big bazaar, Reliance
super and V-mart.
 Finally customers have a choice to make either to visit Big bazaar or Reliance super.
 At last consumers take the decision to visit Big Bazaar for the shopping.
Total set
•Big Bazaar
•V-mart
•Reliance
super
•Star Bazaar
•Local
department
al store
Awareness
set
•Big Bazaar
•V-mart
•Reliance
Super
•Star Bazaar
Consideration
set
•Big Bazaar
•Reliance
Super
•V-mart
Choice set
Big Bazaar
Reliance
Super
Decision
BIG BAZAAR

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BASES FOR MARKET SEGMENTATION
1. GEOGRAPHIC SEGMENTATION:- In this segmentation company calls for
division to the market into different geographical units such as nation, state, regions,
countries, cities, or neighborhoods. As we are taking one product of our company
future group we are going to discuss various segmentations on big bazaar.
I. City:- big bazaar is situated in different city like it is in Ahmedabad, Vapi,
Vadodara, Rajkot, Surat, Nashik, Nasik, Bharuch, Bhopal, Hyderabad. It is
most of situated in metro city where the population is more.
II. Rural areas and Urban area:- future group has segmented its retail into two
area rural and urban area for rural area they made aadhaar retail by this they
targeted that market also those people who all are living over there.
Rural area

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Now in urban area big bazaar is there so that people can get all things in
one place by saving their precious time and by giving attractive discount on so
much durable and non-durable goods plus they are offering service also.
These two segmentations are related with future group so that they can
target mass of people easily.
2. DEMOGRAPHIC SEGMENTATION:- Big bazaar has done full segmentation on
demographic bases they are as follows:-
 Age
 Family size
 Gender
 Income
 Occupation
 EXPLANATION:-
 Age:-
Big bazzar has targeted there customer age wise for kids like they have different
section for kids toys, shoes, garments etc. For teenagers they have different
section they have café shops in big bazzar malls so they that can refresh them self
by doing shopping. For house wife they give different discount or they have

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different type days like sabse sastein 4 din or 5 din maha bachat. In this way they
segmented it age wise.
 Family size:- big bazaar also consider family size in its segmentation they
provide all quantity of product there were 10 kgs bags are also available and 5 kgs
1kgs bags are also available so that neutral family can also fulfill their need and
joint family people will also satisfied there need and if customer want more
quantity then they also give different discount our they give buy one get one free
offer to them.
 Gender:- big bazaar fulfill the need of both gender they get things whatever they
need whether they are male or female they had also celebrate some special days
for male and female that is “sabse chikna kaun campaign”, “ detergent mela”, “
india beverage league”, “ dal chawl mela” etc.
 Income:- big bazaar target higher, middle and lower class people so that all
kind of people come in there segmentation in India higher class people are
less then lower class people so for them big bazaar brings some days so that

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mass of people get attracted and buy many things from there retail shop. Like
sabse sastein 3 din, 5 din maha bachat.
 Occupation:- big bazaar specifically targets working women and home
makers who are the primary decision makers. The large and growing young
working population is a preferred customer segment. So that they get
convenience goods for them easily and at one place.
3. Psychographic:-
 Lifestyle:- big bazaar enrich the life style of the people they can fulfill needs
of whole life in less price by getting different discounts nd skims for them
and they fell their status has also been increase by doing shopping in mall.
4. Behavioral:-
 Occasions
 User status

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 EXPLANATION:-
 Occasions:- big bazaar celebrates days and give special offer for the customer
like on every last week of the year the clear there stock or they give special winter
or summer offer for their customer to buy more and spend less.
 User status:- there were some user status who came to big bazaar for first time
and there were some people who go many time big bazaar. Like they go every
weekend or some go in one month.

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FIVE PATTERNS OF TARGET MARKET SELECTION
 Single segment concentration
 Selective specialization
 Product specialization
 Market specialization
 Full market coverage
In big bazaar there prevails full market coverage and market specialization. They
cover full market by income, age, gender, family size.
 Full Market Coverage:-
M1 M2 M3
Age
Gender
Income
 Market Specialization:-
M1 M2 M3
Retail
In market specialization big bazaar has their market specialization in retail.

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BRAND ELEMENTS
 Meaning of Brand:-
 “A brand is a name, term, sign, symbol or design or combination of them,
intended to identify the goods or services of one seller or group of sellers and to
differentiate them from those of competitors”.
 A brand is a product which has earned a place in consumer’s life through
perception, experience and beliefs .It is the sum of how consumers feel about a
product.
 Brand Elements:-
 Brand elements are those trademark devices that identify and differentiate the
brand.
 Brand elements are mainly brand name, slogan, character, symbols, URL, person
and logos.
 Our company “FUTURE GROUP” consists of the following brand elements
which differentiate it from others.
1. Brand Slogan: ‘India Tomorrow’ and ‘Udna hai aj, abhi’ of Future Group and ‘Is
se sasta aur accha kahin nahi!, of Big bazaar.
2. Character: Future group, Big Bazaar
3. Logo: Bird

~ 34 ~
4. Person: Cricketer M.S Dhoni and Bollywood actress Asin for Fashion at big
bazaar.
 There are some private brands of future group which includes FUTURE
GROUP’s tie up with Sachin Tendulkar for the brand “SACH” and some of its
private brands.
 Future Group has successfully launched a series of private brands ranging in
foods with Tasty Treat, Home and personal care range with Clean mate & Care
mate, staples with Fresh & Pure and Premium Harvest, and Sach is a big leap for
the company in the direction building its private brands portfolio through its
association with an iconic figure like Sachin Tendulkar, will be setting the tone
based on Sachin’s values and mass appeal.
 Future Group private brands have always launched their products keeping
“Indianness” in mind through consumer insights. Launch of Tasty Treat soups
with a mug and Tasty Treat Cornflakes with a bowl are some of the success
stories in past . Past one year has seen aggressive roll-outs from private brands
with products like Sach toothbrush, Clean mate Diapers, Tasty Treat noodles and

~ 35 ~
soups with both classic and Chinese range, Fresh and pure Desi ghee which has
helped in giving consumer quality products at great value.
 Future group also have tie up with other companies which are as follows:

~ 37 ~
PRODUCT LIFE CYCLE
 A company’s positioning and differentiation stratergy must change as the product,
market and competitors change over the Product life cycle (PLC).
 Prodcut life cycle is made up of four things:
1) Products have a limited life.
2) Product sales pass through distinct stages, each posing different challenges,
opportunities and problems to the seller.
3) Profit rise and fall at different stages of the product life cycle.
4) Products require different marketing, financing, manufacturing, purchasing and
human resource stratergies in each life-cycle stage.
 The life of a product passess through four different stages mainly:-
1. INTRODUCTION STAGE:-
 The seller tries to stimulate demand regarding his product.
 He makes promotion campaigns to increase public awareness regarding his
product.
 He tries to explain the consumers how the product is to be used and also explains
the product features, advantages and benefits (FAB).
 The seller at this stage might lose money, but can expect to make profits in the
future. As the product is just introduced in the market there are chances that it
might be a failure or a winner.
 Sales are low and profits are below the line because the costs incurred by the
seller on the product at this stage are greater than the amount of money he makes
after selling the product.
 The seller might have “negative” profit i.e loss. Mainly the product at this stage
faces more of loss then earning profit for as the product is just introduced and
people are unaware regarding the product.

~ 38 ~
 Need to spend a lot of money on promotion. For the product which is just
introduced in the market it is impossible to compete which the similar type of
product, so it is important to make people aware of the product by promoting it
through different mediums and heavy expenditure is incurred on promotion at this
stage.
 Limited Product Model
 At this stage their might be penetration pricing which means low price of the
product or skimming pricing which means high price of the product at its
introduction stage.
2. GROWTH STAGE:-
 Next comes the growth stage wherein the cosumers are aware of the
product, its usage, benefit, features etc.
 At the growth stage the seller tries to sell a lot and he tries to sell as much
as he can to cover up his loss incurred at the introduction stage .
 As the product is well known by the consumer other competitor companies
watch it and tries to introduce a competitor product.
 E.g. Men’s Cosmetic. When the company firstly introduce the Men’s
Cosmetic cream many people were not aware of it but slowly and gradually
as people became aware another company launched the competitor product
of it to capture the market.
 Growth of a product continues until too many competitors are in the market
- and the market is saturated.
 At the end of the growth stage, profits start to decline because when
competition arises seller spends more money on promotion to keep sales
going.
 Spending money on promotion cuts into your profit. As a competitor
product comes in the market its important to keep our product sales go and
for that promotion of it becomes important which ultimately cuts our profit.

~ 39 ~
 Large company may acquire small pioneering firms.
 Gaining wide distribution is a key goal.At this stag it is important that our
product is available at every place, so that our consumer don’t find any
difficulty in getting it.
 At this stage the product achieves sales volume which createseconomies of
scale.
3. MATURITY SATGE:-
 When a product achieves the growth which includes increase profit and sales the
next stage from which it passes through is the MATURITY STAGE.
 At this stage there are many competitors who have joined and the market is
saturated.
 The only way to sell the product is to lower the price and so the profits decrease.
 It is difficult to tell the difference in our product since most of the competitor
product has the same F.A.B. - Features, Advantages & Benefits.
 At this stage competition can get “Horrible” and commercials are intense.
 That is to say, we have commercials almost begging the customer to still buy your
product because you still make it just as good.
 An emphasis on product style rather than function.
 The marketplace is approaching saturation.
4. DECLINE STAGE:-
 Newer products are now more attractive - even a low-low price does not
make consumers want to buy.
 Profit margin declines - and so the only way to make money is to sell a high
volume.
 The rate of decline is governed by:
 How rapidly consumer testes change or
 How rapidly substitute product are adopted
 To increase volume you try to

~ 40 ~
 Increase the number of customers - get new customers
 Increase the amount each customer uses
 The above is the chart showing the four stages of product life cycle. Big Bazaar
comes under the RETAIL head of Future Group and it is at the maturity stage. The
following points can be considered:-
1. Big Bazaar keeps many offers to attract its potential customer like “Buy one, get
one free”, ‘Best deals’ and ‘sabse saste 3 din’.

~ 41 ~
2. It does more of promotional campaigning through print media, television media to
get it customer aware regarding the offers available by them. It also does
promotion through celebrities like Dhoni and Asin for the fashion at big bazaar
which help them to increase their sales and the other points are explained above.
3. There’s an increased competition of big bazaar with its competitors.
4. Big bazaar after coming at this stage want to stabilize it profit without making any
losses.

~ 42 ~
PRODUCT STRATEGIES
 Product Levels: customer value Hierarchy
 Product is not only an offering but it is something beyond that. Is is something
which can satisfy the wants and need, which includes special services or goods,
events, persons, etc.
 Product Levels are categorized in five levels which any marketer has to follow
which adds more value to customers and these five create customer value
hierarchy.
 These four are the first four levels of customer value hierarchy. Core Benefit is
what actually a customer wants. It is also known as fundamental level. Marketers
have to see themselves as benefit providers and thus this first step is called core
benefit.
Augmented Product
Expected
Product
Basic Product
Core Benefit

~ 43 ~
 Basic Product is the job of marketer to convert core benefit into basic
requirement. Providing any service or product with more facility is the role of
basic product.
 The third level is Expected Product. Wherein marketer is serving the product with
those particular conditions & expectations which customer have when they buy
any product.
 At the fourth level stands Augmented Product. It is that level where it exceeds all
the expectations of the customers. On this level tough competition starts and the
main focus of marketers is to survive in this competition and give their product a
position in the market.
 The fifth level is Potential Product. This stage is where a product exceeds even
augmentation. It transforms the product in the future in such a way that customer
had never expected or even thought of it. Potential Product is a stage where
companies have to continuously find something new for the customers to be
served so as to satisfy them. In the above mentioned chart we have not shown
potential product as still many companies are trying to reach this level. Future
Group’s Big Bazaar is on the fourth level. Let us see in more detail:-

~ 44 ~
 Here we can see that the first level core benefit of Big Bazaar is to provide daily
needs of the people at one place. As we know that Big Bazaar is very wide and
has all products like food items, perishable products, clothing, apparels etc.
 Second is Basic Product wherein Big Bazaar tries to serve all these with wide
range of options to choose. For e.g. If a customer wants to buy a shampoo, in Big
Bazaar they will have lots of choices of all the brands like Head & Shoulders,
Pantene, Dove etc… Customer here gets wide range of any product what they
want to buy.
 The third is Expected Product. Here the customer expects discounts, allowances,
additional benefits as they think that this is such a big place wherein all the
products are available, so some discounts can be offered to them. For e.g. If a
customer purchases many items of his home needs and personal needs, then they
will expect to get some discounts and off on some products.
Exceeding the
expectations
Discounts &
Allownaces
Serving them
more widely
Providing
Daily Needs

~ 45 ~
 Fourth is Augmented Product. Here Big Bazaar is on the level of serving the
Augmented Product. As we know something which exceeds customer
expectations that is known as Augmented Product. Here Big Bazaar give the
facility of home delivery to the customers at their convenient time at their home.
This is something which customers of Big Bazaar had never expected. And they
are very well satisfied with this service provided to them.
 And now Potential Product, which is not shown in that diagram because still Big
Bazaar has not yet reached that level of exceeding the Augmented service
provided by them to their customers. In future they can undergo some more
transformations of their products and services and then it can reach the fifth level.
 There many companies including Big Bazaar who are trying to find something
new for the customers. Potential Product is something very different from what
they provide. Companies are still between Expected & Augmented product level.
As any company including Big Bazaar reaches the Augmented Level that is very
soon accepted by the customers and they start expecting to get this service for the
lifetime and thus this augmented product turned into expected product. Thus again
they have to search for new Augmented product to be served to the customers
which exceed their expectation.
 On this level continuous competitions is to be faced by the marketers to sell their
product and maintain their position in the market. Also they have to maintain trust
and expectations of their customers. They cannot afford to lose their customers on
this level.
 Product Classifications
 Marketers have classified the product into different categories:-

~ 46 ~
 As we can see in the above diagram that products are classified in three categories
that is Durability, Tangibility and Consumer or Industrial. All these have an
appropriate marketing strategy.
Product
Durability Tangibility
Consumer
or Industrial
Durability
Durable Nondurable Service
Tangibility

~ 47 ~
 Nondurable Goods: These are tangible goods and are consumed in one or few
uses, for e.g. Soft Drinks, Juices, Soaps, Shampoos, Milk etc…
 These goods are purchased more frequently and therefore marketers decide to
make them available in lots of quantity and with lots of options available to
customers. This helps customers to choose from wide range available.
 Durable:- These also are tangible and survive for many uses. Like Refrigerator,
tools, clothing etc…
 Services :- These are intangible.
 Big Bazaar provides all the kind of products durable and non durable. Food items,
perishable products, clothing, apparel etc…
 Then use of goods that is consumer or industrial. Big Bazaar provides goods
which are Consumer goods. Convenience goods are purchased more frequently by
customers as it takes minimum effort to buy. Also it provides shopping goods
which customers buy after comparing the price, quality, style. Then comes
unsought goods which customer knows about but they don’t think much of buying
those kind of goods. For e.g. Life Insurance.
 Product Mix
 A product system is a group of different but related items that function in a
compatible manner. Under this product system there is product mix.
 A Product Mix is set of all the product and items a particular seller offers to sell.
It is also called Product Assortment. A company’s product mix has certain length,
width & depth of its products.

~ 48 ~
 Firstly let us see what is length, width and depth of the product with an example.
Here we will take the example of Future Group.
Product Mix
Length Width Depth
Width of
Future
Group
Retail
Services
Finance
Partnership

~ 49 ~
 As we can see in the above diagram that there are four things in width of future
group.
 Now let us see Length of each:-
 Length of Retail:
 Lifestyle includes Brand Factory, Central, Home Town, Planet Sports, Pantaloons
fresh fashion.
 Value includes Big Bazaar, Food Bazaar, Fairprice.
 Digital includes Future Bazaar.com. This is online shopping facility provided to
the customers to get more benefit.
Lifestyle
Value
Digital

~ 50 ~
 Length of Finance:-
 Finance has different section that is Future capital holdings. In this capital is
provided to small companies who require finance.
 Future Generali has two sectors General Insurance & Life Insurance.
 Future Venture has tie ups with many other brands to make it more popular and
give customers a wide range to choose from. The most popular venture of Future
Group was with Aadhar Retailing Limited. This was a venture for rural areas and
to serve people of rural areas.
Finance
Future
Capital
Holdings
Future
Generali
Future
Venture.

~ 51 ~
 Length of Services:-
 Future Group has many learning programs for the people in tie up with IGNOU.
 It has also launched India’s first owned retail channel named Future Tv
 Also it has launched a magazine named My World.
 It has tie up with many Brands to widen the range and give people many options.
 It has tie up with Tata Docomo and is serving T24.
 Length of Partnership:- This is different types covered of future group in which ways
they carry over their partnerships.
Logistics &
supply
Learning &
Development
Media
Brands Telephony

~ 52 ~
 Here they Collaborate with many service providers & other big names of
products. They join hands to build the brand and widen the range of their product
list.
Collaborations
Assistnace
Brand Building

~ 53 ~
PRICING STRATEGIES
 PRICE MIX:-
 Value pricing
 Psychological pricing
 Loss leader
 Explanation:-
 Value pricing:- value pricing means company wants to win loyal customers by
changing a fairly low price for a high-quality offering. Same way big bazaar do
the same thing big bazaar give lots of discount to attract the customer so that they
can get good quality product in low price.
 Psychological value:- psychological value pricing means that the seller use this
to attract its customer by keeping less numerical value so that psychologically
customer thing that there they are saving some amount then other place eg they
are getting thing in 111,999,9999 or they use that by giving high and low price of
the commodity and saying save Rs 2 or 3 there they are playing with the mind of
the customer very easily.

~ 54 ~
 Loss leader:- big bazaar is also applying loss leader value in loss leader the
company is bearing loss of one product for selling the another product like big
bazaar give so many time offer like buy one get one free and they are doing this
because some time they have to clear there dead stock so that by not getting any
price of the commodity at least they get something of the commodity or prod


~ 55 ~
DISTRIBUTION STRATEGIES
 The producer and the ﬁnal customer are part of every channel. We will use the
number of intermediary levels to designate the length of a channel. Figure illustrates
several consumer-goods marketing channels of different lengths.
 A zero-level channel (also called a direct-marketing channel) consists of a
manufacturer selling directly to the ﬁnal customer through Internet selling, door-to-
door sales, home parties, mail order, telemarketing, TV selling, manufacturer-owned
stores, and other methods.
 A one-level channel contains one selling intermediary, such as a retailer.
 A two-level channel contains two intermediaries; a three-level channel contains three
intermediaries. From the producer’s point of view, obtaining information about end
users and exercising control becomes more difficult as the number of channel levels
increases.
 Big Bazaar is following one level distribution channel in which it performs role of
retailer and purchase goods directly from producer and then sell it to the customer.
Distribution channel is one of the reason why Big Bazaar is able to sell product at
lower cost. The chart given below shows the following:-

~ 56 ~
PROMOTION MIX
 Promotion Mix is a system wherein different types of methods are followed to
promote a product and make it popular. Future Group also undertakes Promotion
Mix for Big Bazaar. There is thin line difference between Advertisement and
Promotion. Let us see each in detail:-
 For Advertisement Big Bazaar choose Television Ads, pamphlets, FM radio in
metro cities. They keep showing about new offers for the customers. Also with
the help of Internet, Brochures & Direct Mail Big Bazaar try to attract their
customers more and more.
 The second is Promotion of the product. It has to be decided how to promote the
product in what ways and with different tools available. Big Bazaar choose to
promote themselves by providing its customers discount coupons, Membership
Cards, On time Home Delivery, cash refund offers, Price Packs, Gifts, Points
redeem option to get more discount, Organizing different contest, Product
warranties. All these are opted by Big Bazaar to promote themselves.
 Big Bazaar provides some or other scheme and offers for the customer every time
one after other to attract the customers and maintain their value with them.
 Promotion Mix plays a very important role for any companies development. This
helps to establish themselves and maintain their position in the market.

~ 57 ~
PACKAGING AND LABELING
 PACKAGING:-
Packaging is defined as all the activities of designing and producing the container
for a product. Packages might include up to three levels of material. Like big bazaar have
their packaging of their polybag which they give to their customer when they shop from
there store and go home packaging is also a sign of remembrance or for promotion of the
shopping centre name or product name. For some company they take packaging very
seriously and they say that packaging is very crucial part of their product.
 LABELING:-
The label may be a simple tag attached to the product or an elaborately designed
graphic that is part of the package. It might carry only the brand name, or a great deal of
information. Even if the seller prefers a simple label, the law may require more. As big
bazaar has some of their brands name sach, treat etc. They also contains label on the back
side which is shown in picture of sach toned milk label helps the customer to now that
whether the product is healthy or not and what kind of ingredients it contain.

~ 58 ~
FINDINGS
 Fbb have a very vast scope in future ,It has built very emotional & cordial
relationship with its customers.
 Customer’s are looking for more of premium brands in store.
 Sometimes customers gets confused in the store as the store layout is ambiguous
and no one is there to help them.
 Most of the Customers are unknown about the special offers , so more
advertisement is needed for them.
 Many customers are dissatisfied with the unsupportive behavior of staff members.
 Salesmen are not approaching to the customers as they are always busy with
maintenance of their sections.
 Stock for various sizes is not sufficient.
CONCLUSION
The conclusion of my one week research is that fashion at Big Bazaar stores have a very
wide scope for future in India. Fbb stores have cordial relationship with customers . Most
of the customers are satisfied with Fbb products and people like its schemes very much.
Fbb have created a very good image in the minds of its customers so they have a very
high expectation level from Fbb. Moreover Fbb can fly on the path of ultimate growth if
they can bring more premium brands and variety of quality products at a decent cost. Fbb
stores can retain customers if they use many loyalty programs & IT techniques.
Customers will only become loyal if they would be provided with more pleasant and
satisfactory service experiences in stores and Fbb will be able to bring it by adopting
more innovative strategies as recommended.
REFERENCES
Search engine :- WWW.GOOGLE.COM
WEBSITES :- WWW.FUTUREGROUP.IN
HTTP://EN.WIKIPEDIA.ORG/WIKI/FUTURE_GROUP

International management of future group

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