Indian Retail Industry Analysis and Future Outlook

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CONTENTS
CHAPTER NAME OF THE TOPIC PAGE NO
Chp-1  INTORDUCTION 8-9
Chp-2  INDUSTRY PROFILE 10-19
Chp-3  LITERATURE REVIEW 20-25
Chp-4  COMPANY PROFILE 26-29
Chp-5  METHODOLOGY 30-33
Chp-6  ANALYSIS &
INTERPRETATION
34-42
Chp-7  FINDING
 RECOMMENDATION
 CONCLUSION
43-49
ANNEXURE  APPENDIX
 BIBLIOGRAPHY
50-54

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INTRODUCTION
Marketing is the art of creating, satisfying customers by meeting the needs of
customers and by creating value satisfaction for them. As Peter Drucker says “the essence
of marketing is that the entire business has to be seen from the point given of the
customer”. However, customers face a vast array of product and brand choices prices,
supplies and to understand the needs and preferences of the customers it becomes
imperative for us to carry out research together information.
We believe that customers estimate which offer will deliver the most value to
them and which will deliver and maximize value, within the bounds of research costs and
limited knowledge, mobility, and income they form an expectation of value and act on it.
Whether or not the offer lives up to the value expectation affects both purchase and
repurchase probability.
The purpose of any Marketing research is to provide information at a specific time on
customer, trade, competition and the future brands, so as to enable marketers to formulate
successful strategies in their quest for customers mind share and market share.
The research helps the marketers to find out the attributes and variable that
influence the customers behavior towards a given product offering and it shapes the
attitudes of the customers favorably towards a specific product, thus by analyzing these
undertones the researcher can find out the levels of customer satisfaction, and the results
of the marketing research can help the marketers to analyze the weak spots in their
marketing strategies and can reformulate their strategies so that they can satisfy their
customers and maximize their brand loyalty and profitability.

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Retail Industry in India
The Indian retail industry has emerged as one of the most dynamic and fast-paced
industries due to the entry of several new players. It accounts for over 10 per cent of the
country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the
world’s fifth-largest global destination in the retail space. The Indian retail industry is one of the
fastest growing in the world. Retail industry in India is expected to grow to US$ 1.3 trillion by
2020, registering a Compound Annual Growth Rate (CAGR) of 16.7 per cent over 2015-20.
India is the fifth largest preferred retail destination globally. The country is among the highest in
the world in terms of per capita retail store availability. India’s retail sector is experiencing
exponential growth, with retail development taking place not just in major cities and metros, but
also in Tier-II and Tier-III cities. Healthy economic growth, changing demographic profile,
increasing disposable incomes, urbanization, changing consumer tastes and preferences are the
other factors driving growth in the organized retail market in India. India’s population is taking
to online retail in a big way. The online retail market is expected to grow from US$ 6 billion to
US$ 70 billion during FY15-FY20. Increasing participation from foreign and private players has
given a boost to Indian retail industry. India’s price competitiveness attracts large retail players
to use it as a sourcing base. Global retailers such as Walmart, GAP, Tesco and JC Penney are
increasing their sourcing from India and are moving from third-party buying offices to
establishing their own wholly-owned/wholly-managed sourcing and buying offices. The
Government of India has introduced reforms to attract Foreign Direct Investment (FDI) in retail
industry. The government has approved 51 per cent FDI in multi-brand retail and increased FDI
limit to 100 per cent (from 51 per cent) in single brand retail. India’s retail market is expected to
nearly double to US$ 1 trillion by 2020 from US$ 600 billion in 2015#, driven by income
growth, urbanization and attitudinal shifts. While the overall retail market is expected to grow at
12 per cent per annum, modern trade would expand twice as fast at 20 per cent per annum and
traditional trade at 10 percent. India’s Business to Business (B2B) e-commerce market is
expected to reach US$ 700 billion by 2020 whereas the Business to Consumer (B2C) e-
commerce market is expected to reach US$ 102 billion by 2020.## Online retail is expected to be
at par with the physical stores in the next five years. India is expected to become the world’s
fastest growing e-commerce market, driven by robust investment in the sector and rapid increase
in the number of internet users. Various agencies have high expectations about growth of Indian
e-commerce markets. Indian e-commerce sales are expected to reach US$ 120 billion! by 2020
from US$ 30 billion in FY2016.Further, India's e-commerce market is expected to reach US$
220 billion in terms of gross merchandise value (GMV) and 530 million shoppers by 2025, led
by faster speeds on reliable telecom networks, faster adoption of online services and better
variety as well as convenience@. India’s direct selling industry is expected to reach a size of Rs
23,654 crores (US$ 3.51 billion) by FY2019-20, as per a joint report by India Direct Selling
Association (IDSA) and PHD.

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EVOLUTION OF THE INDIAN RETAIL MARKET
Retailing goes back to centuries; it started as a very primitive business but today has
grown tremendously. First people were doing businesses with their neighbors. Goods were
exchanged between them. Gradually people began to collect themselves to a given
neighborhood, which provides a geographical place to do the exchange. This not only increases
the exposure of a given good but also helps a lot towards the development of a more formalized
system. Gradually, a few more start to get together to a place that in turn creates a need for a
common place. Later this common place was called a fair. With the passing of time the number
of people doing businesses in a given fair increased, issues like security, transportation becomes
a matter of concern. This semi-formalized system then gave birth to small-scale groceries, where
people start to provide more combinations in their own neighborhoods. Then came the issue of
choice in given grocery, the choices the customer had was limited, this was the beginning of the
concept of “everything under one roof”. As time passes, joint family changes into nuclear family.
There too both members started earning which resulted into a new way of lifestyle. From then
instead of mom-and-pop type of stores organized retail stores came into existence.
Fig 2.1

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Growth in the Indian Retail sector
• The retail sector in India is emerging as one of the largest sectors in the economy
• By 2015, the total market size is estimated to be around US$ 600 billion, thereby registering a
CAGR of 7.45 per cent since 2000.
• Retail industry is expected to grow to US$ 1.3 trillion by 2020, registering a CAGR of 9.7
percent between (2000 – 2020).
All Retail Sector In India
Fig 2.2

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Retail Penetration in India As on 2012 onward
Fig 2.3
India was ranked fifth in 2012 on the Global Retail Development Index, by AT Kearney;
highlight it as one of the key foreign investment destination worldwide. However I 203, the rank
fell to fourteen possibly due to slow spending and general economic slowdown, along with
policy concern over approval of multi-brand retail across several states in India. This trend is
expected to reverse soon supported by factors such as improving demographics, rising disposable
income levels, expansion of organized retail sector into tier 2 and tier 3 cities, changing
consumer habits, etc. This could provide a wide window of opportunities for national and
international players in the next five to ten years.

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Indian Retail: Analyzing the SWOT Matrix
 Strength:- The inherent strength of the Indian economy provides a boost to retail.
Following are some of the factors that strengthen the economy:
Purchasing Power:- An increasing number of Indian consumers are ascending the economic
pyramid to form an emerging middle class. Though they still earn modest income between 1.70
and 5 USD per capita, per day, in the coming decade, these consumers will collectively have
around 6 trillion USD worth of purchasing power annually. In 2010, there were about 470
million people in the emerging middle class. As per PwC estimate, this segment will grow to 570
million by 2021. This segment, existing between the lowest-income group and the middle class,
will constitute about 42% of India’s total population.
Population Demographics:- India’s working population is expected to be 117 million over the
next decade as compared to China’s four million. In the following decade, from 2020, the former
will add 98 million to its workforce, while China will contract 51 million. This is a big positive
for India.
Low Retail Penetration:- The penetration of organized retail in India is still very low at 6 to
8%, especially when compared to developed nations such as the US and the UK which have
retail penetration of 85% and 80%, respectively. With new policy reforms, increasing purchasing
power, and changing spending pattern, we are bound to see a difference in the coming years. As
per the Images Retail research, FY15 will witness a jump in the share of organized retail.
Aspiring Middle Class:- With a population of 100 million, the tier II and III cities in India are
larger than countries such as Germany and the UK. Besides, the untapped rural population holds
immense potential for retailers. It is estimated that by 2021, approximately 67% of Indians will
still live in rural areas.
 Weakness:- Despite the positives, there are certain facets of the sector that may
dampen growth. Following are the key areas to consider:
Political Uncertainty and Regulatory Requirements:- The announcement of FDI in retail has
stirred the political pot. The government faces stiff opposition with its allies threatening to
withdraw support. In case, this policy is finally implemented, there is another important aspect
for the companies to overcome. The way the policy is currently drafted, a retailer can set up

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stores only in those states which have agreed or will agree in the future to allow FDI in multi-
brand retail.
Poor Infrastructure and Supply Chain Management:- Apart from the political and regulatory
scenario, infrastructure will play an important role in deciding how this sector will evolve and
retailers will manage the supply chain. While the FDI regulation states that the retailer will have
to invest a substantial amount in building the infrastructure, this will take time. Meanwhile, due
to poor infrastructure, multiplicity of taxes, high cost of fuel, dependence largely on the road
transportation, etc. logistics still remains a high percentage of the cost of a product, in certain
cases going beyond 15 to 20%.
 Opportunity:- Retailers in India have been experimenting to arrive at a successful
formula, but there is no ‘one size fits all’ strategy. The market is still undergoing a lot of
changes, both from the regulatory as well as demand side. Following are some of the
winning factors that players could focus on:
Innovation:- During PwC’s 15th Annual Global CEO Survey, one of the questions posed to the
CEOs in the R&C sector was as follows: To what extent do you anticipate changes at your
company in any of the following areas over the next 12 months? Nearly 73% indicated that the
following two areas will change in the near-term: 1) R&D and innovation capacity.
2) Technology investments.
Digital Strategy:- Going digital is not only about e-commerce but the way interaction will
change in a few major areas including changing business models (e-commerce, e-payments and
mobile transactions), employee and customer engagement and investment in technology.
Customers are demanding an improved experience in terms of how to search, browse products
and conduct transactions online. R&C organizations need to engage with customers differently,
in terms of using a range of channels. However, the overall customer experience should be the
same-smooth and seamless. Social media is also becoming a popular tool for consumers to
educate themselves about offerings, seek advice about products and compare brands. For retail
companies it is important to define how social media can support sales activities throughout the
various channels, especially e-commerce. Social media analytics is the focus area for retailers.
Customer-centric Approach:- The retailer is no longer looking at product innovation at the

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merchandising level only but the entire store today is a product that needs to appeal to the
customer. The following are factors that will make a difference: 1) Experience design. 2) Digital
change. 3) Analytical insights.
Changing the Regulatory Scenario:- Recently, the Indian government made the following two
significant announcements that will go a long way in developing the Indian retail sector:
• Permitting foreign investment in multi-brand retail trading.
• Simplifying the rules for single brand retail trading to make it more business-friendly.
 Threat:- The retail sector is marred with many issues. The two most important threats
are as follows:
Availability of land and real estate:- Retail space and rentals are key considerations in multi-
brand retail and getting a feasible rate in the desired location is important. There are retailers
who have exited cities because of the high rentals that put more pressure on profitability.
Human Capital:- With attrition still very high in the industry, human capital management
continues to remain one of the top three agenda points for the retailer. The attrition in the
industry can be anywhere between 20 and 25% in non-food and grocery business to as high as
60% in the food and grocery segment. Thus, the Indian retail sector has its own set of strengths
and opportunities. However, the challenge lies in overcoming the weaknesses and providing an
environment that is conducive to the business, not only for the national players but also the
foreign retailers.
(Source: An article by PricewaterhouseCoopers (PwC) in India Retail Report 2013)

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LITERATURE OF REVIEW

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Theory of Marketing
1. WHAT IS THE MEANING OF MARKETING?
Marketing is "the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large."
Marketing is a management process or social process or an effective communication through
which goods and services move from concept to the customer and companies create value for
customers and build strong customer relationships in order to capture value from customers in
return, and also identifying, anticipating and satisfying customer requirements profitably. It
includes the coordination of four elements called the 4 P's of marketing:
1. identification, selection and development of a product,
2. determination of its price,
3. selection of a distribution channel to reach the customer's place, and
4. development and implementation of a promotional strategy.
For business to consumer marketing, it is "the process by which companies create value for
customers and build strong customer relationships, in order to capture value from customers in
return". For business to business marketing it is creating value, solutions, and relationships either
short term or long term with a company or brand. It generates the strategy that underlies sales
techniques, business communication, and business developments. It is an integrated process
through which companies build strong customer relationships and create value for their
customers and for themselves. Marketing is used to identify the customer, satisfy the customer,
and keep the customer. With the customer as the focus of its activities, marketing management is
one of the major components of business management. Marketing evolved to meet the stasis in
developing new markets caused by mature markets and overcapacities in the last 2-3 centuries.
The adoption of marketing strategies requires businesses to shift their focus from production to
the perceived needs and wants of their customers as the means of staying profitable. As a
philosophy, marketing is based on thinking about the business in terms of customer needs and
their satisfaction. Marketing differs from selling because (in the words of Harvard Business
School's emeritus professor of marketing Theodore C. Levitt) "Selling concerns itself with the
tricks and techniques of getting people to exchange their cash for your product. It is not
concerned with the values that the exchange is all about. And it does not, as marketing invariably
does, view the entire business process as consisting of a tightly integrated effort to discover,
create, arouse, and satisfy customer needs." There is even more confusion about what constitutes
"marketing." Marketing entails several functions that include:
1. Developing the products or services that customers want.
2. Pricing the products or services correctly.
3. Making the products or services readily available to the customers.
4. Promoting the product or service, which if done correctly, not only convinces customers
that the product or service is preferable to its competition, but that it is clearly the only
choice.
This is the field of marketing "communications" and of all the marketing components, it is
the one most likely to be outsourced and the one most likely to be neglected if a company is
making a profit.

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2. RETAIL MARKETING
Through the years retailing has evolved, competition has gotten stiff and therefore
marketing has become more integral in the direct selling of wares. From specialty mom-and-pop
shop to mass-merchants, the methods by which stores are getting their products into the hands of
customers are evolving. Because customers have more choices, stores have to reach them with
advertising, entice them with promotions, and secure them with branding—hence the ever-
growing need for marketing in retail outlets.
Advertising
There are two main functions of advertisements: to sell more products, and to inform the
customer. Through newspaper, TV, radio and internet advertisements, retailers can inform their
customers of the sales, promotions and in-store events. Moreover, since the media is flooded
with advertisements, the ability to create a more eye-catching or attention-grabbing ad directly
influences sales. Stores that advertise--as opposed to those that don’t--are kept at the top of their
potential shoppers’ mind, which can produce sales in the short and long term.
In-Store Promotions
Stores use promotions to prompt impulse buying behavior. A shopper may not intend to
buy a product, but if there is a promotion, there is an incentive for immediate action. For
example, a shopper may not need another dress shirt, but might still buy one if it is on sale.
Additionally, promotions can prompt consumers to recall a product and thus instigate a purchase.
Retailers also use promotional periods-- corresponding with national holidays or well-know sales
times--to sell off the previous season’s merchandise. Promotional periods spike sales, and are a
way retailers can reduce the loss of unsold inventory.
In-Store Atmosphere and Customer Relations
Store design and consumer relationship marketing (CRM) directly affected the way
customers purchase and retain goods. Things like the atmosphere, music, store layout, sales help,
and post-purchase support can influence things like shopping time (the longer they shop, the
more likely they are to buy), and how gratified they feel with their purchase. The more content a
buyer is with their shopping experience, the more likely they are to buy merchandise, and the
less likely they are to return it.
Branding Retail Outlets
It is necessary for retailers to develop their brand in order to stand out amongst the many
other stores. With local boutiques, specialty stores, department stores, mass-merchants and
internet stores, customers have more choices when it comes to buying. There is competition
within each category, and competition between categories. For example, a local boutique selling
dress shirts is competing with other local boutiques, and also with the mass-merchant who might
be selling dress shirts at a cheaper price. It is therefore necessary for the boutique to create a
brand position that a customer can identify with, to keep them loyal.

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Private Labeling
Solidifying a retail brand’s private label is the apex of the retail marketing evolution--and
the most recent trend in high-end retailing. This is not a new concept for low- to mid-priced retail
outlets, as everything from food to raincoats have been put under their brand's name. But what's
new is stores that build their brand to the point where they can sell merchandise at a premium
price. Doing so is more cost effective: they can reduce the costs associated with buying other
brand names, source cheaper goods from private manufacturers and reap higher profits. As an
added bonus, stores benefit from consumer loyalty to their stores and their products.
Salespeople
Personal selling is a more direct approach to marketing. Retailers that sell higher-end
products or promote themselves as tops in service often employ more active sales personal.
Companies that sell higher-end products often have to rely on salespeople to help customers
understand the benefits of paying more for better value. Salespeople can also make add-on or
cross-sales for more revenue.

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3. What is Marketing Mix?
The marketing mix definition is simple. It is about putting the right product or a
combination thereof in the place, at the right time, and at the right price. The difficult part is
doing this well, as you need to know every aspect of your business plan. As we noted before, the
marketing mix is predominately associated with the 4P’s of marketing, the 7P’s of service
marketing, and the 4 Cs theories developed in the 1990s.
Marketing Mix 4P’s
Fig 3.1
A marketing expert named E. Jerome McCarthy created the Marketing 4Ps in the 1960s. This
classification has been used throughout the world. Business schools teach this concept in basic
marketing classes.

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Marketing Mix 7P’s
The 7Ps model is a marketing model that modifies the 4Ps model. The 7Ps is generally used in
the service industries.
Here are the expansions from the 4Ps to the 7Ps marketing model:
Fig 3.2

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Future Group
Headquarters: Mumbai
CEO: Kishore Biyani (1987–present)
Founder: Kishore Biyani
Founded: 1987, India
Subsidiaries: Big Bazaar, Pantaloons Fashion & Retail, HomeTown,
Central…
Big bazaar is a chain of hypermarket in India. As of June 2, 2012 there are 214 stores
across 90 cities and towns in India covering around (16 million sq. ft) of retail space. Big Bazaar
is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range
of merchandise including fashion and apparels, food products, general merchandise, furniture,
electronics, books, fast food and leisure and entertainment sections. Big Bazaar is part of Future
Group, which also owns the Central Hypermarket, Brand Factory, Pantaloons, eZONE,
HomeTown, futurebazaar.com, KB's Fair Price to name a few and is owned through a wholly
owned subsidiary of Pantaloon Retail India Limited, that is listed on Indian stock exchanges.
History
Big Bazaar was launched in September, 2001 with the opening of its first four stores in Calcutta,
Indore, Bangalore and Hyderabad in 22 days. Within a span of ten years, there are now 161 Big
Bazaar stores in 90 cities and towns across India. Big Bazaar was started by Kishore Biyani, the
Group CEO and Managing Director of Pantaloon Retail India. Though Big Bazaar was launched
purely as a fashion format including apparel, cosmetics, accessory and general merchandise, over
the years Big Bazaar has included a wide range of products and service offerings under their
retail chain. The current formats include Big Bazaar, Food Bazaar, Electronic Bazaar and
HomeTown. The inspiration behind this entire retail format was from Saravana Stores, a local
store in T. Nagar, Chennai. The stores are customized to provide the feel of mandis and meals
while offering the modern retail
Features like Quality, Choice and Convenience. As the modern Indian family's favorite retail
store, Big Bazaar is popularly known as the "Indian Wal-Mart". On successful completion of ten
years in Indian retail industry, in 2011, Big Bazaar has come up a new logo with a new tag line:
‘Naye India Ka Bazaar’, replacing the earlier one: 'Isse Sasta Aur Accha Kahin Nahin'.

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Marketing Mix Concept of Future Group
1. Product:
Big Bazaar offers a wide range of products which range from apparels, food, farm
products, furniture, child care, toys, etc of various brands like Levis, Allen Solly, Pepsi,
Coca- Cola, HUL, ITC, P&G, LG, Samsung, Nokia, HP etc. Big Bazaar also promotes a
number of in house brands like:
a) DJ & C
b) Tasty Treat
c) Clean Mate
d) Sensei
e) Care Mate
f) Koryo and 44 other brands.
2. Pricing:
The pricing objective at Big Bazaar is to get “Maximum Market Share”. Pricing at Big
Bazaar is based on the following techniques:
a) Value Pricing (EDLP – Every Day Low pricing): Big Bazaar promises consumers the
lowest available price without coupon clipping, waiting for discount promotions, or
comparison shopping.
b) Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of
psychological discounting (Rs. 99, Rs. 49, etc.) is also used to attract customers. Big
Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga
Pooja).
c) Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak and
non-peak hours or days of shopping is also a pricing technique used in Indian retail,
which is aggressively used by Big Bazaar. E.g. Wednesday Bazaar.
d) Bundling:
It refers to selling combo-packs and offering discount to customers. The combo-packs
add value to customer and lead to increased sales. Big Bazaar lays a lot of importance on
bundling. e.g. 3 Good Day family packs at Rs 60(Price of 1 pack = Rs 22)5kg oil + 5kg
rice + 5kg sugar for Rs 599.
3. Place:
The Big Bazaar stores are operational across three formats — hypermarkets
spread over 40,000-45,000 sq ft, the Express format over 15,000-20,000 sq ft and the
Super Centers set up over 1 lakh sq ft. Currently Big Bazaar operates in over 34 cities
and towns across India with 116 stores. Apart from the Metros these stores are also doing
well in the tier II cities. These stores are normally located in high traffic areas. Big
Bazaar aims at starting stores in developing areas to take an early advantage before the
real estate value booms. Mr. Biyani is planning to invest around Rs 350 crore over the
next one year expansion of Big Bazaar. In order to gain a competitive advantage Big
Bazaar has also launched a website www.futurebazaar.com, which helps customers to

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orders products online which will be delivered to their doorstep. This helps in saving a
lot of time of its customers.
4. Promotion:
The various promotion schemes used at Big Bazaar include:
I. “Saal ke sabse saste 3 din”
II. Hafte ka sabse sasta din “Wednesday bazaar”
III. Exchange Offers “Junk swap offer”
IV. Future card(3% discount)
V. Advertisement (print ad, TV ad, radio)
VI. Big Bazaar has come up with 3 catchy lines written on hoardings taking on
biggies like Westside, Shoppers stop and Lifestyle. They are:
VII. “Keep West- aSide. Make a smart choice!”
VIII. “Shoppers! Stop. Make a smart choice!”
IX. “Change your Lifestyle. Make a smart choice!”
5. People:
I. Well trained staff at stores to help people with their purchases
II. Employ close to 10,000 people and employ around 500 more per month.
III. Well-dressed staff improves the overall appearance of store.
IV. Use scenario planning as a tool for quick decision making multiple counters for
payment, staff at store to keep baggage and security guards at every gate, makes for a
customer-friendly atmosphere.
6. Process:
Big Bazaar places a lot of importance on the process right from the purchase to the
delivery of goods. When customers enter the stores they can add the products they which
to purchase in their trolley from the racks. There are multiple counters where bill can be
generated for purchases made. Big Bazaar also provides delivery of products over
purchases of Rs. 1000.
7. Physical Evidence:
Products in Big Bazaar are properly stacked in appropriate racks. There are different
departments in the store which display similar kind of products. Throughout the store
there are boards/written displays put up which help in identifying the location of a
product. Moreover boards are put up above the products which give information about
the products, its price and offers. Big Bazaar stores are normally ‘U shaped’ and well
planned & designed.

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Research Methodology
Research in common pursuance refers to a search for knowledge in a scientific and
systematic way for pursuant information on a specified topic.
Once the objective is identified that next step is to collect the data which is relevance to the
problem identified and analyze the collected data in order to find out the hidden reasons for the
problem. There are two types of data namely.
1. Primary Data
2. Secondary Data
1. PRIMARY DATA
Primary data is to be collected by the concerned project researcher with relevance to his problem.
So the primary data is original in nature and is collected first hand.
Collection of primary data
There are several methods of collecting primary data particularly in surveys and descriptive
researches. Important ones are as follows:
A. Observation Method
B. Interview Method
C. Questionnaire
D. Schedules and
E. Other methods which include
Warranty needs
Distributor audits
Pantry audits
Consumer panels
Using mechanical devices
Through projective techniques
In depth interviews and

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1) OBSERVATION METHOD:
It is the most commonly used methods especially in studies relating to behavioral sciences. This
method implies the collection of information by way of investigators own observation, without
interviewing the respondents. The information obtained relates to what is currently happening
and is not complicated by either the past behavior or future intentions or attitudes of respondents.
2) INTERVIEW METHOD
The interview method of collecting data involves presentation of oral, verbal stimuli and reply in
terms of oral-verbal responses. This method can be used through personal interview and, if
possible, through telephone interview.
 Personal Interview: The method of collecting information through personal interview is
usually carried out in a structured way. As such we call this interview as structured
interviews. Such interviews involve the use of a set of predetermined questions and of
highly standardized techniques of recording. Thus, the interviewer in a structured
interview follows a rigid procedure laid down, asking questions in a given format and the
order prescribed. As against it, the unstructured interviews are characterized by flexibility
of approach to questioning. Unstructured interviews do not follow a system of pre-
determined questions and standardized techniques of recording information.
3) QUESTIONNAIRE
The researcher and the respondents do come in contact with each other if this method of survey
is adopted. Questionnaires are mailed to the respondents with a request to return after completing
the same. It is the most extensively used method in various economic and business surveys &
research. Questionnaire to be used must be prepared very carefully so that it may prove to be
effective in collecting the relevant information.
 Structured questionnaire: Using structured questionnaire method, which contains
close-ended questions, collected the primary data with respect the problem chosen. The
questions have some options, from which the respondents have to choose a choice. As the
answers lie within a specified range they are called close-ended questions.
 Sampling: A non-probability conclusive sampling method was used in the study for data
collection.
 Sample size: The sample was taken from the universe on random sampling basis. The
sample size designed for this project is 100 keeping in mind the paucity of time and also
the customer base of the organization in the research area.
Sources ofData
There are two types of data have been collected: 1. Primary Data & 2. Secondary Data.
I. Primary Data was collected from discussion with the Big Bazaar’s Corporate Managers
and others stuff of Kolkata Zonal Office, HomeTown, RajarHaat, and through
questionnaire survey.
II. Secondary Data was collected from Internet for company profile

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ResearchObjectives
1. Primary Objectives:
a) To identify performance of store operation.
b) To understand the buying behavior at Big Bazaar.
c) To analyze how the merchandising mix influences consumer satisfaction level.
d) To analyze the affectivity of Big Bazaar’s Marketing Strategies on consumer
psychology.
e) To understand loyalty pattern building of Big Bazaar.
2. Secondary Objectives:
a) To understand the quality of service maintained in the store.
b) To determine the performance of sales persons in the store.
c) To find out reasons of dis-satisfaction.
d) To find out which means of communication plays a vital role to persuade customer.
Scope and Uses
1. It will give information to prospective customers.
2. It will give information about Big Bazaar’s Marketing Strategies, Marketing Mix/Retail Mix.
3. It will help to gain independent knowledge about the consumer perception of the outlets
identified.
4. The study can help the companies to get additional research information.
Sampling for Consumers SatisfactionAnalysis
a) Sample Size – 100 customers/consumers.
b) Sample Unit – Consumers in the age group 18 to 50 years.
c) Sampling Technique- Convenience Sampling.
d) Sampling Tool/Instrument- Questionnaire and Interview.
LIMITATION OF THE STUDY
1. The sample size taken is only 100 and as such is very small as compared to the universe, this
is due to the constraints of time and effort, and as such may not be enough to generalize to
the entire population, however it is presumed that the sample represents the universe.
2. Respondents might have responded with the actual feelings of facts while giving responses
to the questionnaire.
3. Time being a limiting factor was not sufficient to gather opinions from majority of the
respondents, who form part of the universal sample.

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ANALYSIS
&
INTERPRETATION

29
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Analysis
AGE TOTAL PERCENTAGE
18 – 28 41 21.33 %
28 – 38 67 49.33 %
38 – 48 37 10.67 %
48 – 58 39 12.00 %
58 – 68 16 6.67 %
TOTAL 200 100%
Table 1:- Details of respondents as per age groups
Fig 4.1
Interpretation
From the above figure (Figure 4.1) it could be identified that the main visitors of the store belong
to the age group of 28-38 years.
0
10
20
30
40
50
60
70
18-28 28-38 38-48 48-58 58-68
No.of Respondant based on age

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No. of the respondents based on the sex
Sex Total Percentage
Male 87 43.5 %
Female 113 56.5 %
Total 200 100 %
Table:-2 Details of respondents as per sex group
Fig 4.2
Interpretation
From the above fig (4.2) there is more number of female respondents than male visitors, visiting
the store.
44%
56%
No.of Respondant as Age
Male Female

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Customers & Consumers Feedback Analysis
1. Do You Frequently Shop @ Big-Bazaar? (Options: Yes/No)
Yes 148 74%
No 52 26%
Total 200 100%
Table:-3 Details of frequently shop
Fig 4.3
Interpretation
From the above fig (4.3) the no of frequent visitors is more. There are 74% visitors who visit big
bazaar frequently for shopping.
0
20
40
60
80
100
120
140
160
Yes
No

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2. How Frequently You Shop @ Big-Bazaar? (Options: every week/once in 2 week/once in
week /once in a month).
Every week 44 22 %
Once in a 2 week 48 24 %
Once in a 3 week 32 16 %
Once in a month 76 38 %
Total 200 100 %
Table:-4 Details of frequently in months
Fig 4.4
Interpretation
From the above fig (4.4) it could be found that the visitors who visit once in a month are
maximum in number than the rest i.e. once in every week, once in 2 week, & once in 3 week.
Least number of people, who are visiting the store, belongs to the category of ‘once in three
weeks’.
Shopping Frequency
Every Month
Once in 2 week
once in 3 week
once in a month

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3. What comes to your mind when you think about Big-Bazaar? (Options: discount/
product variety/ brand/ quality/ offers/ others).
Discount 68 34 %
Product variety 48 24 %
Brand 8 4 %
Quality 16 8 %
Offer 56 28 %
Other 4 2 %
Total 200 100 %
Table:-5 Details of what respondents think about Big Bazaar
Fig 4.5
Interpretation
From the above fig (4.5) the visitors are more attracted towards discount and offer than other
promotional activity and brand assortments.
0
10
20
30
40
50
60
70
Discount Product
variety
Brand Quality Offer Other

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4. Do you feel you find different product variety in Big-Bazaar? (Options: yes/no).
Yes 132 66 %
No 86 % 34 %
Total 200 % 100 %
Table:-6 Details of different variety of products
Fig 4.6
Interpretation
From the above fig (4.6) the maximum consumers were satisfied with variety of products and the
assortments available in the store. Hence it could be interpreted that the marketing team of the
retail chain may not rearrange the assortment of available products with further experimentation.
.
0
20
40
60
80
100
120
140
Yes No

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5. What do you purchase @Big Bazaar on regular basis? (Option: groceries / sports and
toys equipment / beverages / cloths / electronic / others).
Groceries 105 52.5%
Sports and Toys
Equipment
10 5%
Beverages 27 13.5%
Cloths 31 15.5%
Electronic 22 11%
Others 5 2.5%
Total 200 100%
Table 7 different type of purchases
Fig 4.7
Interpretation
From the fig (4.7) shows that the customers are verily purchase the groceries products rather than
any other different type in higher quantity. The focuses are to be made largely on the daily
consumer able goods.
0
20
40
60
80
100
120
Groceries Sports & Toys Beverager Cloths Electronic Others
Type of Purchases

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6. What is the mode of payment do you use while making payment? (Option: Cash / Debit
Card / Credit Card).
Cash 130 65%
Debit Card 50 25%
Credit Card 20 10%
Total 200 100%
Table 8 mode of payment
Fig 4.8
Interpretation
The fig (4.8) indicates that the customers are most favorable to pay their shopping bill in cash
rather than any other mode of payment. This gives the clear idea that the employees in the cash
register should be efficient in dealing with cash.
0
20
40
60
80
100
120
140
Cash Debit Card Credit Card
Mode Of Payment

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FINDINGS
A. The coverage is limited to only urban areas hence effort should be made to increase
the coverage in semi urban and rural areas as it increases the number of subscribers
B. BIG BAZAAR should create awareness amongst its customers regarding various
services that are being offered by it by increasing its sales promotion reach.
C. Special promotional schemes to be launched especially to target youth segment who
take up the new product by having special packages
D. BIG BAZAAR try to focus on the after sales customer support as this is perceived to
be a weak spot, by the consume and should have responsive call centers to address the
needs of its customers.

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Recommendations for Marketing Strategies
1. Retail Stores should focus more on Store Ambience, Store Space & Selling Areas.
2. All the Retails Formats should have an effective Loyalty Program.
3. More focus on Direct Marketing should be given in order to attract more & more
customers.
4. Better after sales service & customer service should be provided in order to make
customers loyal.
5. To manage proper proportion of Convenience, Staple & Impulse goods.
6. Along with SMS the retails formats should use more innovative ways to alert customers.
7. The Retail store should replenish the goods on time (before the stock ends).
8. A proper proportion of Private & National Brands should be kept in Retail stores.

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Conclusion for marketing strategy.
1. To increase the footfall of the store during the weekday.
2. Customers are more attracted towards Discount Schemes & Sales
3. Various Product lines also attract customers to choose their retails stores.
4. Entertainment units & Kids zone should be provided in Retail stores in order to cater
more customers.
5. The after sales service of retail stores should be helpful & effective. This after sales
service creates loyal customers
6. Major steps should be taken to stop shoplifting in retail stores, as it is one of the
problematic
7. Characters for leading & large size retail stores.
The retail stores should provide various kinds of loyalty rights in order to provide more
customers.

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Advantages and Disadvantages
 Pros:
1. Variety: Big Bazaar offers a wide variety of products of different prices and different
qualities satisfying most of its customers.
2. Quality: Providing quality at low prices and having different types of products for
different income customers is another advantage.
3. Price: As noted the prices and offers in Big Bazaar have been one of the main attractions
and reasons for its popularity. The price ranges and the products offered are very
satisfying to the customers.
4. Location: The location of Big Bazaar has been mainly in the heart of the city or in the
out skirts giving a chance to both the City and the people living outside the city to shop.
5. Advertisements: Big bazaar has endorsed very popular figure like M S Dhoni and other
famous personalities which has attracted a lot of customers. This has resulted in increase
of sale and the outdoor advertising techniques have also helped Big Bazaar.
6. Middle class appeal: Considering the fact that there are a lot middle class families in
India, Big bazaar has had a huge impact on the middle class section of India, the prices,
quality and sales strategy has helped in getting the middle income groups getting
attracted towards Big Bazaar.
7. Attractive sales: Big bazaar has been known for its great sale and great offers. Big
bazaar has had long lines of people waiting to get into the store for the sale. Therefore,
the sales that Big Bazaar has had has increased sales in a huge way due to the sales and
offers, thus this has been one of the main advantages of Big Bazaar.
 Cons:
1. Store layout: The store layout and the assortment of goods is not the best at Big Bazaar,
as the quantity of goods sold is more the arrangement and assortment of goods in the
store is the greatest. Hence at times customers find it hard to find what they require, this
leads to dissatisfaction of customers.
2. Lower quality of goods: As Big bazaar aims more toward the middle income group, the
quality of goods is not of the highest quality, and this is sometimes a disadvantage as
some would prefer better quality to the price, making customers to search for different
places.
3. Not acclaimed for very good service: Big Bazaar is not known for high class service.
The staff recruited is not very well trained and the billing queues take a long time to
move, this irritates customers which makes them visit the store more seldom
4. Lower quality of goods: As the store is trying to concentrate on the middle income
group the type of products used is not of the most superior quality and most of the times
nor branded, this may dissatisfy certain customers
5. Consumer satisfaction: Long queues and lower quality leads to dissatisfaction of
customers. Due to factors mentioned above Big Bazaar shoppers are not always satisfied,
this is not a positive for the store.

45
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Questionnaire Sample for Consumers SatisfactionAnalysis
1. Do You Frequently Shop @ Big-Bazaar? (Options: Yes/No)
2. How Frequently You Shop @ Big-Bazaar? (Options: every week/once in 2 week/once in
3 week/once in a month.)
3. What comes to your mind when you think about Big-Bazaar? (Options: Discount/Product
Variety/Brand/Quality/Offers/Others)
4. Do you feel you find different product variety in Big-Bazaar.(Options: Yes/No)
5. Do you find the specific brand that you look in the Big-Bazaar? (Options: Yes/No)
6. In which section you spend more time while shopping? (Options: Food-
Bazaar/Apparels/Kitchen- Section/Electronics-Section/Children & Toys Section/Sports
Section/Others).
7. Are you satisfied with you product? (Options: Yes/No)
8. Do you think this store has good parking facility? (Options: Yes/No)
9. How would you rate the following in our store ambience?
a) Music – Good/ok/Bad
b) Temperature - Good/ok/Bad
c) Lighting - Good/ok/Bad
d) Cleanliness- Good/ok/Bad.
Name:_______________________________ Occupation: __________________
Contact:_____________________
Age: 18 - 24 25 – 35 36 – 45 46 – 55 56 – above
Gender: Male Female

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10. How did you find the following qualities of our store staff?
a) Courteousness - Good/ok/Bad
b) Grooming - Good/ok/Bad
c) Efficiency & Knowledge - Good/ok/Bad
11. How would you rate the following in our Products?
a) Range - Good/ok/Bad
b) Prices - Good/ok/Bad
c) Quality - Good/ok/Bad
d) Availability - Good/ok/Bad.
12. How would you rate the Navigation (Ease of moving around the store) in our store?
(Options:Good/ok/Bad)
13. How would you rate the Product Display, Finding any Product & Signage in our store?
(Options:Good/ok/Bad)
14. How would you rate the following in our store?
a) Cashier interaction - Good/ok/Bad
b) Cashier Speed - Good/ok/Bad
c) Check out counter - Good/ok/Bad
d) Customer Service Desk - Good/ok/Bad.
e) Loyalty Program – Good/ok/Bad.
f) Sales Persons - Good/ok/Bad.
15. How was your overall experience? (Options: Good/ok/Bad)
Would you visit Big-Bazaar again? (Options: Sure/Maybe/Never)

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Bibliography
Information has been sourced from namely, books, journals, management website,
and market. Accessing database help a me lot some are listed below………….
www.slideshare.net
https://in.linkedin.com/
www.managementparadise.com
www.roehampton.ac.uk
www.AllAnalytics.com
www.futuregroup.in
http://en.wikipedia.org
www.cci.in/pdf/surveys_reports/indias_retail_sector.pdf
www.rai.net.in/
www.futuregroup.in
www.indiaretailing.com
www.ibef.org

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