BIG BAZAAR

A REPORT ON MERCHANDISING PHILOSOPHY

Submitted by: Suneel Akula Submitted to: Mr.Hitesh Manocha

TABLE OF CONTENTS
SL NO. 1 2 3 4 5 6 7 8 INTRODUCTION COMPANY PROFILE STRATEGIES INVOLVED THEORITICAL BACKGROUND RESEARCH METHODOLOGY FINDINGS & OBSERVATIONS RECOMMENDATIONS BIBLIOGRAPHY PARTICULARS PAGE NO. 3 4 6 10 12 13 14 16

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INTRODUCTION:
Retailing involves all activities incidental to selling to ultimate consumer for their personnel family and household use. It does this by organizing their availability on a relatively large scale and supplying them to a customer on a relatively small scale. Retailer is any person/organization instrumental in reaching the goods or merchandise or services to the end users. Retailer is a must and cannot be eliminated. The Indian retailing industry is becoming intensely competitive, as more and more payers are Vying for the same set of customers. The major retail players are Pantaloon Retail, Shoppers Stop, Reliance etc. Retailing is one of the biggest sectors and it is witnessing revolution in India. The new entrant in retailing in India signifies the beginning of retail revolution. India's retail market is expected to grow tremendously in next few years. According to AT Kearney, the Windows of Opportunity shows that Retailing in India was at opening stage in 1995 and now it is in peaking stage in 2006. India's retail market is expected to grow tremendously in next few years. India shows US$330 billion retail market that is expected to grow 10% a year, with modern retailing just beginning. India ranks first in 2005. In fact, in 2005 and 2006, India is the most compelling opportunity for retailers, because now India is in peaking stage.

The trends that are driving the growth of the retail sector in India are

Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items (CHART)

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COMPANY PROFILE

BIG BAZAAR
Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 7 millions square feet of retail space, has over 1000 stores across 53 cities in India and employs over 25,000 people.

The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian Hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, bazaar and Star and Sitara. The company also operates an online portal, futurebazaar.com. Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, you will definitely get the best products at the best prices - thats what they guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including Home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping experience.

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FUTURE GROUP:
Future group is one of the countrys leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The groups flagship company, pantaloon Retail (India) Limited operates over 7 million square feet of retail space, has over 1000 stores of its leading retail formats include, Pantaloon, Big Bazaar, Central, Food Bazaar, Home Town, Ozone, Depot, future Money and online retail format, futurebazaar.com.

Future group includes, Future Capital Holding, Future Generally India Indus league clothing and Galaxy Entertainment that manages sports Bar, Brew Bar and Bowling Co. Future Capital Holding, the group s financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The groups joint venture partners include Italian insurance major, generally. French retailer ETAM group. Us-based stationery products retailers, Staples Inc. and UK-based Lee Cooper and India-based Talwalkars, Blue Foods and Liberty Shoes. Future Groups vision is to, deliver Everything, Everywhere, Every time to every Indian consumer in the most profitable manner. The group considers as a core value and its corporate credo is- Rewrite rules, Retain values.

OBJECTIVE
To perform a Management Thesis there must be certain objectives in front of the student, which will show a specific way to work on Management Thesis. In reality objectives is nothing but a part of future planning and effective planning is half work done, when we see objectives for working on Management Thesis we can effectively utilize our strength, time and tem management. For the betterment of Management Thesis I also set some objectives in front of me, this proved very helpful in Management Thesis. I have performed work according these objectives. The objectives, which we have selected, are as bellow.

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1. 2. 3. 4. 5.

To identify and understand the significance of retailing in the current business environment To develop guidelines to build a retailing business To identify the competition in the market and develop strategies for retailing business accordingly To identify significant characteristics of the end consumer, understand its significance for the retailing business and develop strategies accordingly To identify the paradigm shifts in retailing business with increasing scope of technology / e-business and develop strategies accordingly

6. 7. 8. 9.

To know the growth of retail industry with respect to big bazaar. To know the factors affecting for retail industry. To find the factors which are behind the change of Indian Retailing Industry? To understand the benefits to customers, manufactures, wholesalers, and the economy from Retail sector.

10. 11. 12. 13. 14. 15. 16. 17. 18.

To know about Big Bazaar. To know about its competitors. To know about its customers To know about its Promoters & Organizational structure. To know about its strengths, weaknesses, opportunities & threats. To earn practical knowledge. To analyze problems which I am facing while working on field. To know about marketing strategies. Last but not the least to know about retail business

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Analysis
India is standing in the threshold of a retail revolution. The Indian consumer class consists of a 300 million strong bourgeoning middle-class, expected to grow to 600 million by 2010. Overall economic growth and increasing disposable incomes have boosted double-digit growth in consumer spending, enabling retail sales o grow by 50-100% in 2006. According to the India Retail Report 2007, total private consumption reached INR 20,000 billion at current prices in 2006. The share of organized retail stood at 4.6 per cent of the total Indian Retail Value of INR 12,000 billion ($270 billion). However, the organized sector is expected to grow at 35-40% in the next few years as compared to overall retail growth of 7-8%. The potential for introducing international brands, ability to make huge capital investment and ease of setting shop in India is luring foreign players to the industry. Thus, the retail sector will experience an influx of international retail models and quality outlets in the coming few years.

Description of the concept

Manufacturers can look at the following alternatives to increase sales volume:

1) Sales promotion and advertising in malls

Most supermarkets and hypermarkets promote in-house offers to attract customers. They also spend a lot on visual display of promotions. These costs can be shared by the company, thus increasing their stake in the sales of the mall. a) Retail outlets will be supportive of sales promotion and advertising by companies inside malls for two reasons: - it increases sales of the entire category as such - it reduces burden on malls to attract/educate consumers towards particular products. For the FMCG companies, return on advertising in terms of increased sales (or market share) will be more pronounced due to point-of-purchase promotion. b) Manufacturers can share costs of advertising and make sections of the store more attractive in return for slightly lower margins to the retailers. They can set up small kiosks or shelves to

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display their own products. This involvement of the company in the operation of the mall will also help build a strategic relationship between the two.

2) Use malls to target niche segments

Malls and supermarkets typically attract the middle and upper-middle class consumers who have considerable spending power as well as brand awareness. Thus manufacturers can use this channel effectively to launch specific variants of existing products or niche products for which they are able to Concept Paper Indian Institute of Management Ahmadabad attract a premium from such consumers. These products should be launched exclusively in the malls and not through Kirana stores. The presence of a larger product range will increase the attractiveness of shopping at a mall for the consumer, making it a win-win situation for both.

Benefits to customers
Retailers act as a buying agent for consumers. They perform various business activities that increase the value of the goods and the service they sell to the end users. As buying agents a retailer performs various activities to satisfy the end consumers. These activities include Breaking bulk

o Providing assortment o Holding inventory o Providing after sales services o Providing information

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ENVIRONMENTAL SCANNING FOR BIG BAZAAR

INTERNAL SCANNING
The SWOT analysis of Big Bazaar is as follows: Strengths: The strengths of Big Bazaar are it is leading and growing at the faster pace. It has many outlets all over India. It has a good customer base. They launched Big-Bazaar a hypermarket with over 1, 70,000 products as the first offering in value retailing segment. Products are cheaper than the market price by as much as 5 to 60%. Apparels are cheaper by 25 to 60% while the price difference on the other products varies between 5 to 20%. The Big-Bazaar has been positioned to the customer as a place where the customer can shop for each & everything for which if goes to a market. Weakness: Big Bazaar has not yet trapped the whole market. Facing problems due to political environment Opportunities Huge untapped market Threats Competition from organized retail players which are in market and emerging like Reliance, shoppers stop, Wal-Mart Competition from local retailers.

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EXTERNAL ENVIRONMENTAL SCANNING Analysis of political and legal factors:

In India there is a political triangle this consist of the municipal corporation which belongs to Indira congress, the other is MLA which belongs to Shivsena and BJP and MP which belongs to the national congress. The congress political people are having contacts with common people and not much concerned with merchants but contradictory to this that the BJP and Shivsena they are having more concern about merchants of the city. As Municipal Corporation is in the hands of congress party and they are ready to have big bazaar in India that is the reason they are ready to provide some kind of perks to big bazaar they are as follows: Subsidy from octroi, different taxes like land tax and water tax Help in taking over properties and real estate Some concessions from labor laws

Socio-cultural factors: Now a days in India also proportion of working womens is increasing and the literacy rate has also increased this will lead into increase in standard of living of people. As people are aware about western culture through various Medias they are very much eager to follow the western culture. People from talukas are coming to India as it is a district place for shopping, taking education, for working etc. this also creates demand. There is a majority of middleclass people in India and it is a most populated district consisting 13 talukas. The major communities in India city are Hindus, Muslims, Christians, Jain, Sindhi and Punjabi.

Economic environment:
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As this district is having 13 talukas and most of them are having good agricultural base which ultimately leads to higher seasonal income. Another one is that most of the people who are residing in India they are engaged in various jobs and businesses they is the part of regular income group. So this will lead to higher purchasing power and a huge potential market. One more advantage to big bazaar coming to India is availability of cheap labor. From the external analysis we came to know that the people residing the India city are in the favor of Big Bazaar coming to India. The location preferred by them is Savedi as it is highly developed and accessible area to all the people.

STRATEGIC FORMULATION FOR BIG BAZAAR:

Big Bazaar will form some strategies for the long-term goals. First of all it will find out what are the opportunities present in the market so that they can grab it so as to expand their business, trap a particular segment of people, and establish a good client base and to generate good revenues. They will also keep in mind the threats that they have from their competitors and also form the small grocery shops. They will find out some strategies to overcome the threat and to sustain in the market for a longer period of time. They will also try to utilize their strengths and overcome the weaknesses.

THE STRATEGY:

Savings is the key to the Indian middle class consumer. The Concept of Big Bazaar as the store offers large mix of products at a discounted price, the name Big Bazaar was finalized. The idea was to recreate a complete bazaar, with a large product offering & offer a good depth & width in terms of range. Price was the basic value proposition at Big Bazaar Big Bazaar outlets sold a variety of products at prices; which were 5 to 70% lower than the Market Price. The catch line Is se sasta aur kahi nahi emphasized the value of the Mall.

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SELECTING THE LOCATION: The main consideration while selecting the location was whether the low margin on the products would allow the company to sustain growth.

The group conducted a study & it was found that for a store like Big Bazaar, a large catchment area is needed.

THE MERCHANDISE MIX:

Large Product mix offered by Big Bazaar was the main attachment. The World stocked about 105000 items in over 18 product Categories. In first year apparel accounted for 70% of the off take & the price was largely responsible for the success. Price range starts from Rs 49 to Rs 250,000 according to the needs of customers. Buying Process for most of the categories at big Bazaar is largely price driven.

STORES DESIGN:

It tells the customer what the store is all about. It creates an image in the minds of Customer .It is the starting point of all marketing efforts. For a customer store needs to be easy to navigate, it must appeal to his sensory Perceptions & must create a sense of belonging sense of relationship. The environment created in retail store is a combination of exterior look, store interiors, the atmosphere in the store & events promotions & themes which form a part of retail store.

EXTERIOR DESIGN:It is a function of location of the store site & other facilities like parking & ease of access. Store fronts is an important factor , it should be inviting & it should have good lighting & other
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facilities in total it should entice potential customers into store. The world is ideally located at Patia Square 4km away from Jaydev Vihar.
It is easily accessible either from Jaydev Vihar.

It has got a spacious parking lot also.

It has got a massive appeal, exterior look justifies its name Big Bazaar

INTERIOR STORE DESIGN:It is a function of aesthetics within the store, the merchandise sold within the space used & the overall layout of the store. Space planning: the amount of space allocate within the store. Location of Various department. Creation of planogram. Relationship of space of profitability. Big Bazaar is the three storied building, the ground floor with food & beverages. The first floor is completely apparels & home & personal care. The Second floor is completely with jewellery & decoration materials & the third floor is all about shoes, casuals, child care & toys.

PRODUCT MIX:APPARELS FOOD CHILL PRODUCTS STATION CHILD & & CARE PERSONAL JEWELLERY & HOME FASHION

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CAR E Formal Staple Soft Sham Wear s drink poos s Denim Ready Pack Deter Tto eat aged gent shirts Juice Soap s Fabrics Ready Milk Liqui & to items d Cut cook wash piece Access Spice Froz Crea ories s en m food s Under Impor Ice- Deod garme ted crea orants nt Bazaa m r Night Tea & Utens wear Coffe ils e Party Plasti wear cs Sarees Crock ery

TOY S Footwe Kids ar wear Beauty Care Bindre Toy Baza ar Stati oner y Child Care

PROMOTION: The main idea behind every effort is to make a bulk purchase. Saal ke sabse sasta Teen Din is the slogan of BIG BAZAAR. 15 | P a g e

 Advertisement (Print AD,TV AD,Radio AD) Point of purchase Promotion.

FINDINGSAND OBSERVATIONS:
1. We found out that most of the people were affected and attracted with offers and

schemes.
2. It has been found out that most of the people in delhi city visit malls for refreshment and

enjoy.
3. Consumers choose malls to stop because they all want variety and brands and shopping

at malls according to the consumers is economic as compared to shopping at other places.

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4. Most of the people are brand loyal and most of them stack to the brand they like. 5. Advertising plays a very crucial part in the consumer decision making process and Big

Bazaar is Known for Advertisement. 6. Most of the respondents take on the spot decision of buying different products because of the various attractive product displays and pretty combination which the store tries on the mannequins is mostly dependent by the customers, show that most of the consumers are attracted towards different fancy displays. 7. For most of the respondents quality plays a very important role because most of the respondents said that they want quality products and thats also one reason for most of the respondents sticking to particular brands.

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8. We can also say that location, variety convenience and economical products are not the only things which attract the customer but there are some other factors which play a major role in attracting the customers as mentioned. 9. BIG BAZAAR FOR THE GREAT INDIAN MIDDLE CLASS 10. It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class. It

was started as a hypermarket format in Mumbai with approx. 50,000 sqft of space. Its values and missions are to be the best in Value Retailing by providing the cheapest prices and hence go the tag-line Is se sasta aur achcha kahin nahin 11. It sells variety of merchandise at affordable rates, the prices of which it claims are lowest

in the city but the level of services offered is also very low. 12. The following graph shows the retail life cycle and we can say that Big Bazaar is currently

at the Growth Stage.

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Cash flow Flows

Maturity

Growt h

Decline

Introductio n Time

POSITIONING STRATEGY

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RECOMMENDATIONS:
Customers are becoming price conscious they are having many options in the market considering the consumer buying behavior the malls and other shopping centers should take certain definite steps like retaining customers by giving those schemes discounts and better service. So Big Bazaar should opt for the following steps: Should follow more of High low pricing rather than Everyday low pricing.

Should go for weekly coupon system as it holds more of the loyal customers
As it is near fostiima business school so it must give more emphasis on students choice

products like apparels, fooding, pillow, bed sheets etc. The trend today has been to combine shopping with various offerings for ex in a mall apart from shopping a customer enjoys food courts and many others services which todays modem malls provide. Shopping has made people spend not just on their requirements of goods to be bought but to look on the totality of the experience have a quick bite at Mc Donalds in the mall are let the kids play fun games while one is busy shopping or even taking the family out to movie and having a dinner ALL UNDER ONE ROOF The benefits of this totality offering are that many vendors get to have people patronized their offerings while the shopping experience i.e. being enhanced more business is got by the stores at the venue. Shopping is no longer a onetime agenda for people. Various options are opening up.

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BIBLIOGRAPHY

BOOKS AND MAGAZINES:

Consumer Behavior - Fourth edition by David L. London & Albert J. Delia Bitta. Research methodology (Methods & Technology)

Revised Second edition by C.R.Kothari Retail Management ( A Strategic Approach) Joel R Evans - Barry Berman &

NET RESOURCES:

www.google.com www.wikipedia.com www.answers.com

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