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    Adept Foundation

    ADEPT INSTITUTE OF MANAGEMENT STUDIES,

    MBA DHARWAD.

    (Approved by SMU UNIVERSITYMANIPAL)

    STUDY ON

    A STUDY ON THE EFFECTIVE PROMOTIONAL STRATEGY

    WHICH INFLUENCES CUSTOMER TO PURCHASE A PRODUCT

    OF BIG BAZAAR

    A Report Submitted in Partial Fulfillment ofThe Requirement for the Award of

    MASTERSDEGREEIN BUSINESSADMINISTRATION

    2009-2010

    Submitted by

    Manjunath Reddy.

    Exam No. 520864273

    Institute Guide: CompanyGuide:

    Mr. Nityanand. Mr. Arif.Faculty Asst Department Manager

    AIMS College, BIG BAZAAR,Dharwad. Hubli.

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    Adept Foundation

    Adept Institute of Management Studies, MBA Dharwad.

    (Recognized by ISO, & Affiliated to SMU University, Manipal)

    This is to certify that Mr.Manjunath Reddy.student of Adept Institute of Management Studies, bearing

    Registration No. 520864273 of MBA 3rd Semester has successfully

    completed his summer in plant training 2009-2010.

    Project Guide Dean

    Date: ______________

    INDEX

    AIMS COLLEGE, Dharwad.2

    CERTIFICATECERTIFICATE

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    AIMS COLLEGE, Dharwad.

    CHAPTER

    NO.TOPIC

    PAGE NO.

    I Summary 5

    II Acknowledgement 6

    IIIDeclaration

    7

    IVIndustry Profile

    8

    V Competition In Retail 15

    VI Board of Director 31

    VIICompany Profile

    32

    VIII Store Study 37

    IX Future Plans Of Big Bazaar 51

    X Organizational Structure 53

    XI Store Structure 54

    XII Vision & Mission 55

    XIII Supply Chain Management 59

    XIV My Learning 60

    XV Research Methodology 61

    XVI Analysis & Interpretation 64

    XVII Findings 74

    XVIII Recommendations 76

    XIX Conclusion 77

    XX Limitations 78

    XXI Annexure 79

    XXII Bibliography 81

    4

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    EXECUTIVE SUMMARY

    Indian retail sector is witnessing one of the most hectic Marketing activities of all

    times. The companies are fighting to win the hearts of customer who is God said by the

    business tycoons. There is always a first mover advantage in an upcoming sector. In

    India, that advantage goes to BIG BAZAAR. It has brought about many changes in the

    buying habits of people. It has created formats, which provide all items under one roof at

    low rates, or so it claims. In this project, we will study its marketing strategies and

    promotional activities.

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    The research titled A Study on the effective promotional strategy which influences

    customer to purchase a product of Big Bazaar helps us to understand the effect of

    promotional strategy which is responsible for attracting customer towards big bazaar

    This study helpful to top level management to improve the present promotional strategy

    of BIG BAZAAR.

    The report deals with the impact of promotional activity which attracting customer

    towards big bazaar.

    The research was carried out as per the steps of Marketing Research. The well

    supportive objectives were set for the study. To meet the objectives primary research

    was undertaken. The data collection approach adopted was experimental research &

    survey research. The instrument used for the data collection was observation &

    questionnaire. The target respondents were the visitors of BIG BAZAAR, with the

    sample size of 100 for the study of sales management of the company. Tables & charts

    were used to translate responses into meaningful information to get the most out of the

    collected data. Based on those the inferences have been drawn with peer supportive data.

    ACKNOWLEDGEMENT

    The report what I have presented is not the made outcome of my labor alone. There are

    dozens of hands buttressed me all through the programme it doesnt go without thanking

    all of those who constantly keep me on the move.

    I would like to give heartily thanks to Adept Institute of Management Studies Dharwad

    who have given us an opportunity to learn something practical apart from books by

    including the in-plant training in our MBA Programme.

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    I express my gratitude to our Dean Mr. Mahesh Masal who has supported me to

    complete this project. My sincere thanks to Prof. Nityanand K, Internal Guide for

    guiding me to work on this project.

    I would like to express my most sincere thanks and gratitude to External guideMr. Arif

    ADM (Assistant Department manager) who have given a good support to grab the

    external exposure and to complete a project in Big Bazaar.

    I give my sincere token of thanks to all my faculties, relatives and friends who have

    gathered me the wisdom of knowledge. This work is dedicated to my parents who have

    supported me throughout my study.

    DECLARATION

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    I the undersigned have completed the project entitled A Study on the

    effective promotional strategy which influences customer to purchase a product of

    Big BazaarHubli submitted in partial fulfill of the requirement for the

    award of the Degree in Master of Business Administration to the

    Sikkim Manipal University, .

    The project work is original & the conclusions drawn are based on the

    data & information collected by me.

    Place: Hubli

    Date: Manjunath.Reddy.

    INDUSTRY PROFILE

    Introduction

    Retail means selling goods and services in small quantities directly to customers.

    Retailing consists of all activities involved in marketing of goods and services directly to

    consumer for their personnel family and household use.

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    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.

    Sector details

    1. Introduction to retail industries.

    2. Retail word is derived French word retailer means to cut off a piece.

    3. Retailing includes all the activities involved in selling goods or services to the

    final customer for personnel or non-business use.

    4. Supermarket is a retailing of a wide variety of consumer products under one roof,

    ample stock, stock of several brands & extended business hours.

    History of retailing

    Retail concept is old in India. Worlds first departmental store started in Rome.

    Todays kirana stores are based on Manusmriti & Kautilyas arthshastra.

    Haats, Melas, Mandis & door to door salesmen are traditional Indian retail.

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    Vishal Mega Mart is a retail sector, which is providing good quality of products in very

    reasonable price than its competitors. Retailing and wholeselling consist of many

    organizations designed to bring goods and services from the point of production to the

    point of use.

    Retailing includes all the activities involved in selling goods or services directly to final

    consumers for their personal, non-business use. Retailers can be classified in terms of

    store retailers, non-store retailing, and retail organizations.

    Store retailers include many types, such as specialty stores, department stores,

    supermarkets, convenience stores, superstores, combination stores, hypermarkets,

    discount stores, warehouse stores, and catalog showrooms. These store forms have had

    different longevities and are at different stages of the retail life cycle. Depending on the

    wheel-of-retailing, some will go out of existence because they cannot compete on a

    quality, service, or price basis.

    Non-store retailing is growing more rapidly than store retailing. It includes direct selling

    (door-to-door, party selling), direct marketing, automatic vending, and buying services.

    Much of retailing is in the hands of large retail organizations such as corporate chains,

    voluntary chain and retailer cooperatives, consumer cooperatives, franchise

    organizations, and merchandising conglomerates. More retail chains are now sponsoring

    diversified retailing lines and forms instead of sticking to one form such as the

    department store.

    Retailers, like manufacturers, must prepare marketing plans that include decisions on

    target markets, product assortment and services, store atmosphere, pricing, promotion,

    And place. Retailers are showing strong signs of improving their professional

    management and their productivity, in the face of such trends as shortening retail life

    cycles, new retail forms, increasing intertype competition, and polarity of retailing, new

    retail technologies, and many others.

    Wholesaling includes all the activities involved in selling goods or services to those who

    are buying for the purpose of resale or for business use. Wholesalers help manufacturers

    deliver their products efficiently to the many retailers and industrial users across the

    nation. Wholesalers perform many functions, including selling and promoting, buying

    and assortment-building, bulk-breaking, warehousing, transporting, financing, risk

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    bearing, supplying market information, and providing management services and

    counseling. Wholesalers fall into four groups. Merchant wholesalers take possession of

    the goods and include full-service wholesalers (wholesale merchants, industrial

    distributors) and limited-service wholesalers (cash-and- carry wholesalers, truck

    wholesalers, drop shippers, rack jobbers, producers' cooperatives, and mail-order

    wholesalers). Agents and brokers do not take possession of the goods but are paid a

    commission for facilitating buying and selling. Manufacturers' and retailers' branches

    and offices are wholesaling operations conducted by non-wholesalers to bypass the

    wholesalers. Miscellaneous wholesalers include agricultural assemblers, petroleum bulk

    plants and terminals, and auction companies.

    Wholesalers, too, must make decisions on their target market, product assortment and

    services, pricing, promotion, and place. Wholesalers who fail to carry adequate

    assortments and inventory and provide satisfactory service are likely to be bypassed by

    manufacturers. Progressive wholesalers, on the other hand, are adapting marketing

    concepts and streamlining their costs of doing business.

    CURRENT SCENARIO

    India rank first in terms of emerging market potential in retail sector. Current retail

    market is US $ 215 billion. Growth rate of retail sector in India is 8-10% per annum.

    Near about 12 million retail outlets are spread across India.

    FDI in retail sector increases from US $ 3.1 billion in 2003 to over US $7.6 billion in

    2009.

    TYPES OF RETAILERSRetailers are broadly classified into 3 categories

    Food Retailers.

    General Merchandise Retailers.

    Service Retailers.

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    OTHER SERVICES PROVIDED BY RETAILERS

    Retail not only provides products to the customer but also gives different types of

    services like:

    Airlines & travel agents

    Banks

    Health clubs

    Hotel & Restaurants

    Movie theatres

    TECHNOLOGIES USED IN RETAILING SECTOR

    In-store technologies-

    Interactive kiosks

    Virtual display case

    Radio Frequency identification tags

    Self-scanning & self-checkout system

    Body scanning

    Online technology-

    Online display of products

    Online shopping

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    CHALLENGES

    Largely urban phenomenon, pace of growth is still slow.

    Not being recognized as an industry in India so availability of finance is low tonew market players.

    High cost of real estate.

    High stamp duties.

    Lack of infrastructure.

    Multiple & complex taxation system.

    Protest against retail sector.

    FUTURE STRATEGY

    It is projected that up to 2010 retail sector will be worth around US $ 300 billion.

    FDI is going to increase rapidly, up to 2010 retail sector will become biggest

    industry in India.

    Retail sector is expected to create 2 million jobs up to 2010.

    According to Indian Retail Report top 10 players in modern retail trade are going

    to invest US $ 18-20 billion in next five years.

    Sector Details

    In India, the most of the retail sector is unorganized. In India, the retail business

    contributes around 10 percent of GDP. Of this, the organized retail sector accounts only

    for about 5 percent share, and the expected annual growth rate is 5% per annum and

    remaining share is contributed by the unorganized sector. The main challenge facing the

    organized sector is the competition from unorganized sector. Unorganized retailing has

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    been there in India for centuries, theses are named as mom-pop stores. The main

    advantage in unorganized retailing is consumer familiarity that runs from generation to

    generation. It is a low cost structure, they are mostly operated by owners, has very low

    real estate and labor costs and has low taxes to pay. And it also gives 8% Employment

    to the country annually.

    In late 1990's the retail sector has witnessed a level of transformation. Retailing is being

    perceived as a beginner and as an attractive commercial business for organized business

    i.e. the pure retailer is starting to emerge now. Organized retail business in India is very

    small but has tremendous scope. The total in 2005 stood at $225 billion, accounting for

    about 10% of GDP. In this total market, the organized retail accounts for only $8 billion

    of total revenue. According to A T Kearney, the organized retailing is expected to be

    more than $23 billion revenue by 2010.

    In organized retailing will grow faster than unorganized sector and the growth speed will

    be responsible for its high market share, which is expected to be $ 17 billion by 2010-11.

    The organized sector is expected to grow faster than GDP growth in next few years

    driven by favorable demographic patterns, changing lifestyles, and strong income

    growth. This organized retail sector mix includes supermarkets, hypermarkets

    discounted stores and specialty stores, departmental stores. For example, Spencer

    network has 69 stores, which includes seven Spencer hypermarkets, three Spencer super

    markets and 49 Spencer Dailys. Now the company is planning to open 20 stores in 10

    cities in six months. The top 10 retailers account only for 2% of total market, today

    modern retailing is expected to enter a boom phase, which has major players and these

    players might capture 10% of total market, within next five years. The retail sales in

    India for future are shown below (data from 2005-2008 is based on estimates)

    The trend in the Industry

    1. Low share of organized retailing2. Falling real estate prices3. Increase in disposable income and customer aspiration

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    Increase in expenditure for luxury items (CHART)

    Another credible factor in the prospects of the retail sector in India is the increase in the

    young working population. In India, hefty pay packets, nuclear families in urban areas,

    along with increasing working-women population and emerging opportunities in the

    services sector. These key factors have been the growth drivers of the organized retail

    sector in India which now boast of retailing almost all the preferences of life - Apparel &

    Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & OfficeProducts, Travel and Leisure and many more. With this the retail sector in India is

    witnessing rejuvenation as traditional markets make way for new formats such as

    departmental stores, hypermarkets, supermarkets and specialty stores.

    Existing competition

    Reliance fresh.

    Aditya Birla group.

    Shoppers Shoppe.

    Subhiksha.

    Big bazaar.

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    Mark and Spencers.

    The untapped scope of retailing has attracted superstores like Wal-Mart into India,

    leaving behind the kiranas that served us for years. Such companies are basically IT

    based. The other important participants in the Indian Retail sector are Bata, Big Bazaar,

    Pantaloons, Archies, Cafe Coffee Day, landmark, Khadims, Crossword, to name a few.

    Evolution of Indian Retail Industry

    Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take

    place. The inception of the retail industry dates back to times where retail stores were

    found in the village fairs, Melas or in the weekly markets. These stores were highly

    unorganized. The maturity of the retail sector took place with the establishment of retailstores in the locality for convenience. With the government intervention the retail

    industry in India took a new shape. Outlets for Public Distribution System, Cooperative

    stores and Khadi stores were set up. These retail Stores demanded low investments for

    its establishment. International Brand Outlets, Hyper or Super markets, shopping malls

    and departmental stores

    Retailing in India: a forecast

    Future of organized retail in India looks bright. According to recent researches it is

    projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will

    capture a share of 10% of the total retailing by the end of 2010.

    INDIA: A Hot Spot

    India retail industry is the largest industry in India, with an employment of around 8%

    and contributing to over 10% of the country's GDP. Retail industry in India is expected

    to rise 25% yearly being driven by strong income growth, changing lifestyles, and

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    favorable demographic patterns.

    It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200

    billion. India retail industry is one of the fastest growing industries with revenue

    expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A

    further increase of 7-8% is expected in the industry of retail in India by growth in

    consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has

    further been predicted that the retailing industry in India will amount to US$ 21.5 billion

    by 2010 from the current size of US$ 7.5 billion.

    Shopping in India has witnessed a revolution with the change in the consumer buying

    behavior and the whole format of shopping also altering. Industry of retail in India which

    have become modern can be seen from the fact that there are multi- stored malls, huge

    shopping centers, and sprawling complexes which offer food, shopping, and

    entertainment all under the same roof.

    India retail industry is expanding itself most aggressively; as a result a great demand for

    real estate is being created. Indian retailers preferred means of expansion is to expand

    to other regions and to increase the number of their outlets in a city. It is expected that by

    2010, India may have 600 new shopping centers.

    In the Indian retailing industry, food is the most dominating sector and is growing at a

    rate of 9% annually. The branded food industry is trying to enter the India retail industry

    and convert Indian consumers to branded food. Since at present 60% of the Indian

    grocery basket consists of non- branded items.

    As the contemporary retail sector in India is reflected in sprawling shopping centers,

    multiplex- malls and huge complexes offer shopping, entertainment and food all under

    one roof, the concept of shopping has altered in terms of format and consumer buying

    behavior, ushering in a revolution in shopping in India. This has also contributed to

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    large-scale investments in the real estate sector with major national and global players

    investing in developing the infrastructure and construction of the retailing business.

    Growth Drivers

    Growth drivers in India for retail sector

    Rising incomes and improvements in infrastructure are enlarging consumer

    markets and accelerating the convergence of consumer tastes.

    Liberalization of the Indian economy

    Increase in spending Per capital Income.

    Advent of dual income families also helps in the growth of retail sector.

    Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.

    Consumer preference for shopping in new environs

    The Internet revolution is making the Indian consumer more accessible to the growing

    influences of domestic and foreign retail chains. Reach of satellite T.V.

    Channels are helping in creating awareness about global products for local

    markets.

    About 47% of India's population is under the age of 20; and this will increase to

    55% by 2015. This young population, which is technology-savvy, watch more than

    50 TV satellite channels, and display the highest propensity to spend, will

    immensely contribute to the growth of the retail sector in the country.

    Availability of quality real estate and mall management practices

    Foreign companies' attraction to India is the billion-plus population.

    Employment opportunities in retail sector in India

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    India's retail industry is the second largest sector, after agriculture, which provides

    employment. According to Associated Chambers of Commerce and Industry of India

    (ASSOCHAM), the retail sector will create 50,000 jobs in next few years.

    Retail companies are starting retail management courses in partnership with management

    institutes, roping in talent from other sectors and developing comprehensive career

    growth and loyalty plans for existing employees.

    Top players like Pantaloon Retail India Limited, Trent, Shopper's Stop, RPG Group and

    ebony are virtually on their toes.

    Consider the plans of largest player, The Pantaloon Retail India Ltd, the company has

    developed a comprehensive strategy, where in it expects that in 2years, it will not recruit

    any new managers from outside.

    "The estimated need is 1 lakh of employees till 2011", said Mr. Sanjoy Jog, HR Head at

    Pantaloon Retail India Ltd. Pantaloon has the concept of partnership with educational

    Institute to run retail courses across the entire chain. Trent has also started in-house

    learning programmers and now goes to under graduate colleges to recruit students.

    Since, the job market is hugely receptive to this with more and more business schools

    focusing on the sector and large retailers setting up retail academics.

    Challenges of Retailing in India

    In India the Retailing industry has a long way to go, and to become a truly flourishing

    industry, retailing needs to cross the following hurdles:

    * The first challenge facing the organized retail sector is the competition from

    unorganized sector.

    * In retail sector, Automatic approval is not allowed for foreign investment.

    * Taxation, which favors small retail businesses.

    * Developed supply chain and integrated IT management is absent in retail sector.

    * Lack of trained work force.

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    Low skill level for retailing management.

    Intrinsic complexity of retailing- rapid price changes, threat of product

    obsolescence and low margins.

    * Organized retail sector has to pay huge taxes, which is negligible for small retailbusiness.

    Many agencies have estimated differently about the size of organized retail market in

    2010. The one thing that is common amongst these estimates is that Indian organized

    retail market will be very big in 2010. The status of the retail industry will depend

    mostly on external factors like Government regulations and policies and real estate

    prices, besides the activities of retailers and demands of the customers also show

    impact on retail industry.

    Competition in retail

    India RetailBiz attempts to capture excitement of Retail Business in India by aggregating

    the best in news, views, research, analysis, trends, technology, and competition dents

    retail sector growth.

    The performance of the retail sector in the last quarter of financial year 2008-09 has been

    a gloomy one. Not only has the quarter-on-quarter growth declined by 700 basis point,

    on year-on-year (YoY) basis, sales growth fell drastically from 67.8% to 49.1%.

    Including the recently listed Koutons and Vishal Retail, all big retailers continue to be on

    an aggressive expansion mode. This kind of competition is having a negative impact on

    margins of retailers, as the target audience for all of them, more or less, remains the

    same.

    The slowdown has triggered a volume game in the industry. Strategies like promotional

    campaigns, freebies, promoting private labels and online discounts are just some of the

    avenues that retailers are looking at to lure customers. According to analysts, this is a

    knee-jerk reaction by the industry to fight the inflation-induced dent in the purchasing

    power of customers. As they say, retail is a number game, so, big retailers are trying to

    push volumes. For some, it comes at the cost of profit. Meanwhile, in contrast to YoY

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    sales growth of 49% for the sector, the interest cost has registered a whopping 96%

    growth. Though growing at a lesser 39%, depreciation cost has also been impacting

    margins.

    The cost factor too is adding to the woes. For instance, during the quarter, Shoppers Stop

    opened its new stores in various formats. Provogue and Pantaloon followed soon. The

    companies are increasing their geographical presence in the wake of increasing

    competition. Launch of new formats continues to catch the attention of these retailers. In

    fact, a couple of these new formats are already generating profit at the operating level,

    thus showing a positive sign towards growth.

    Like for Shoppers Stop, the average transaction size increased by about 7% for the

    current quarter over the same quarter in the previous year. Players like Provogue and

    Pantaloons too have witnessed a similar upward movement. Also, though growth in total

    expenses as a whole has almost been equivalent to the growth in sales at about 47%,

    some individual cost items like staff costs, selling and administration costs are under

    control. On a YoY basis, staff cost has grown at 26% against 44% in the corresponding

    quarter of the previous year.

    Nonetheless, raw material cost continues to remain high - it grew by 66% in the last

    quarter and now is equivalent to 74% of the industry's aggregate net sales. This is the

    reason why operating margins have reduced to 4.8% of the revenue sale compared with

    5.7% during the corresponding quarter of the previous year.

    Among individual retailers, Pantaloon Retail continues to outgrow the industry - it

    recorded 57% a YoY growth in net sales during March 2008 quarter. Although it is

    lower compared with the 63% growth recorded during the December quarter,

    momentum continues to favour the company. New stores drove the growth in value-for-

    money format - strategies such as KB's Fair Price and online shopping are picking up.

    Their home store division has also been doing well. Next on growth charts is Provogue,

    which grew 40% in the last quarter, similar to the previous quarter.

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    In short, setting up of new stores has resulted in higher working capital funding, which

    has raised the industry's interest outgo. For Pantaloon, interest cost has almost doubled

    during the current quarter - as a proportion of sales, it has increased from 2.7% to 3.2%

    on a YoY basis. Provogue seems to be an exception in this as it recorded the highest

    increase of 100 basis points in interest cost for March 2008. Overall, the profitability

    margin has seen a sharp decline.

    Only Shoppers Stop has registered some profit compared with its performance in the

    corresponding quarter of the previous year. The company's net profit margin now stands

    at 0.7% of net sales as compared to -1% in March 2007 quarter. It can be concluded that

    margins of retail companies seem to have been hit by costs related to their ambitious

    expansion programmer. Expansion plans for some of them are running behind schedule.

    It has led to higher interest cost, yet retail companies are trying hard to cut costs by

    keeping inventory and carrying costs under control.

    July 8, 2008

    Source: Economic Times

    Big retailers at loggerheads with MNCs over brands

    A serious conflict is brewing between Indian retailers and multinationals over imports of

    global brands. To stay afloat in the dog-eat-dog world of retail, local retailers have

    reached arrangements with overseas players to bring in some international brands,

    rattling many MNCs who manufacture or market these products locally. In some cases,

    these brands have not yet been introduced in India.

    Several major MNCs with a long presence in India are invoking the Intellectual Property

    Rights (imported goods) Enforcement Rules 2007 to stop retailers from importing

    foreign brands. Hindustan Unilever, LOreal, Lancome Perfumes, Oakley Inc, Nivea and

    Mico have already registered several brands with the Customs department. Sources said

    other MNCs are expected to follow suit.

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    Market circles perceive this as a move to prevent Indian retailers from getting first

    access to these brands. Some of the retailers are debating plans to legally contest the

    move, since they possess a free sale certificate from the source of import. Retailers like

    Big Bazaar & Food Bazaar, Reliance Retail, Spencers and Sankalp Retail

    (MyDollarStore), among others, have begun importing sizeable consignments of leading

    consumer brands and their variants for better fill rates, product variety and higher

    margins.

    However, the multinationals are not amused, and claim that it leads to loss of business

    opportunity, unfair competition and product cannibalization. The fundamental issue

    here, according to analysts, is that the Indian arms of the leading FMCG companies

    would like to control the way their brands are marketed and sold. They would also like

    to determine when new products and variants of existing products should be introduced

    in India.

    A key reason for retailers to step up imports is bottom lines. Profit margins on imported

    products are around 20% more than local brands, where producers and retailers are at

    loggerheads over sharing margins.

    We are concerned over issues like protecting the properties of our brands, including

    quality and consumer perception. Such unplanned imports create brand confusion in the

    minds of consumers, since the properties of an imported brand are completely different

    from the domestic ones, which are localized to suit the specific regions requirements.

    An unpleasant experience may work against our brand, said a high-ranking official in a

    leading multinational, which makes personal care products.

    Retailers claim they are creating demand in advance for the multinationals, which

    would otherwise have to invest heavily in marketing and ad spends to promote the

    brands. Analysts say the developments are the natural effects of a globalised market that

    India is moving towards, which upsets the conventional distribution and trade practices.

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    July 7, 2008

    Source: Economic Times

    Big players - plans and investments

    State of Competition in the Wholesale and Retail Sector

    The study assesses the state of competition in the Philippine wholesale and retail sector,

    focusing on the distribution of specialized goods and pharmaceutical products. It uses

    the traditional tools of analysis like concentration ratios and price-cost margins in

    determining the competitive state of the sector. The study also analyzes the other

    dimensions in retail competition like price, geographical location, and retail product and

    retail service. Industry data from the National Statistics Office were used in the analysis,

    aided by a small-scale survey conducted in the Metro Manila area.

    The department store and grocery sub sector appears to operate in a competitive

    environment despite the presence of two big dominating firms in the market. No price or

    quantity leader-follower behavior was observed, as validated by the tools used in the

    analysis. On the other hand, one firm, whose strategic advantages include economies of

    scope and space, retail image and consumer loyalty, dominates the distribution of

    pharmaceutical products. Potential market entrants face these forms of challenges--

    factors that are not regarded as anti-competitive and are welfare enhancing to the general

    public.

    The need for competition policy is recommended to guard against possible merger of the

    giant firms in the department store and grocery sub sector. Any possible collusion

    between the big firms could result to a monopolistic outcome.

    The study observes that the apparent high price of pharmaceutical products is mainlyattributed to the manufacturing process, and not at the distribution of these goods.

    Hence, it is recommended that a study analyzing the state of competitiveness of

    manufacturing pharmaceutical products be conducted. Thing else that is timely,

    authentic Electronics retail sector could get new competition

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    Types of Retailing

    There are several types we can see in Retailing. They are like:

    Specialty Store:

    Narrow product line with deep assortment, viz apparel stores, book stores etc. A clothingstore would be a single line store, men's clothing store would be limited line store&men's custom-shirt store would be a super specialty store.

    Example: The limited, The Body Shop.

    Departmental Store:

    Several products lines-typically clothing, household goods, home furnishings- with each

    line operated as a separate department managed by specialist buyers or merchandisers.

    Example: Sears, Bloomingdale's.

    Supermarkets:

    Relatively large, low-cost, low-margin, high volume, self-service operation designed to

    serve total needs for food, laundry & household maintenance products.

    Example: Kroger, Safeway.

    Convenience Stores:

    Relatively small store located near residential area, open long hours, seven days a week

    and carrying a limited line of high-turnover convenience products at slightly higher

    prices.

    Example: 7-Eleven, Circle K.

    Discount Store:

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    Standard merchandise sold at lower prices with lower margins and higher volumes. True

    discount stores regularly sell merchandise at lower prices and offer mostly national

    brands.

    Example: Wal-Mart, Kmart.

    Off-price retailer:

    Merchandise bought at less than regular wholesale prices & sold at less than retail;

    often-leftover goods, overruns and irregulars obtained at reduced prices from

    manufacturers or other retailers.

    Factory outlets are owned and operated by manufacturers and normally carry the

    manufacturer's surplus, discontinued or irregular goods.

    Example: Mikasa (dinnerware), Dexter (shoes)

    Independent off-price retailers are owned & run by entrepreneurs or by divisions of

    larger retail corporations.

    Example: T.J.Maxx, Filene's Basement.

    Superstore:

    Averages 35,000 square feet of selling space traditionally aimed at meeting consumers'

    total needs for routinely purchased food and non-food items. Usually offer services such

    as laundry, dry cleaning, shoe repair, check cashing & bill paying.

    A new group called "category killers" carries a deep assortment in a particular category

    & a knowledgeable staff.

    Example: Borders books & Music, IKEA.

    Combination stores are a diversification of the supermarket store into the growing drug-

    and-prescription field. Combination food & drug stores average 55,000 square feet of

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    selling space.

    Example: Jewel & Osco stores.

    Hypermarkets range between 80,000 and 220,000 square feet and combine supermarket,

    discount & warehouse retailing principles. Product assortment goes beyond routinely

    purchased goods & includes furniture, large & small appliances, clothing items and

    many other items. Bulk display & minimum handling by store personnel with discounts

    offered to customers who are willing to carry heavy appliances and furniture out of the

    store. Hypermarkets originated in France.

    Example: Carrefour and Casino (France), Pyrca, Continente and Alcampo (Spain).

    Emerging trends in Indian organized retail sector

    BPO industry in India

    BPO (Business Process outsourcing) is one of the fastest growing segments of the

    Information Technology Enabled Services (ITES) industry in India. Business Process

    Outsourcing refers to the delegation of one or more IT-intensive business process to an

    external provider that in turn owns administers and manages the selected process based

    on defined and measurable performance criteria. The Indian BPO industry is constantly

    growing and a lot of fortune 500 companies are outsourcing services to India. There are

    several reasons for Indias emergence as one of leading outsourcing destinations. India is

    very rich in educated and talented human resource. India is one of the pioneers in

    software development. India has an excellent technical facilities and infrastructure for

    setting up call centers. Time zone difference between India and America has also worked

    to the advantage of Indian BPO industry. India has an 8-12 hour time zone difference

    with respect to the US and other developed markets. Most of the Indian cell centers

    servicing American customers have timings between 5:30 pm to 9:30 am this time zonedifference allows Indian companies BPOs to service American clients by working in the

    nights. last but not the least India has huge pool of English speaking workforce that

    provides excellent voice based services at extremely competitive costs resulting in huge

    savings for companies. Some of the leading BPO companies in India are

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    GE capital.

    Converges

    Wipro Spectra mind.

    Dell

    ICICI One Source

    MphasiS.

    Inflation in India

    Inflation in India is at an acceptable level and remains much lower than in many other

    developing countries. But off late prices of essential commodities such as food grain,

    edible oil, vegetables etc have risen sharply and in the process driving up the inflation

    rate.

    Inflation is defined as a sustained increase in the general level of prices for goods and

    services. It is measured as an annual percentage increase. As inflation rises the value of

    currency goes down. The current rise in inflation has its roots in supply-side factors.

    There was shortfall in domestic production vis--vis domestic demand and hardening ofinternational pieces, prices of primary commodities, mainly food items. Wheat, pulses,

    edible oils, fruits and vegetables, and condiments and spices have been the major

    contributors to the higher inflation rate of primary articles. The inflation was also

    accompanied by buoyant growth of money and credit. While GDP growth zoomed to 9.0

    per cent per annum, the board money (M3) grew by more than 20 per cent.

    Inflation is calculated on the bases of Wholesale Price Index (WPI) while in other

    countries it is calculated on Consumer Price Index (CPI).

    The emerging trends in the Indian organized retail sector would help the economic

    growth in India.

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    There is a fantastic rise in the Indian organized retail sector in a very short period of time

    between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector,

    India has a chance of tremendous economic growth, both in India and abroad.

    The emerging trends in the Indian organized retail sector are also adding up to the

    development of the Indian organized retail sector. The relaxation by the government on

    regulatory controls on foreign direct investments has added to the process of the growth

    of the Indian organized retail sector.

    The infrastructure of the retail sector will evolve radically in the recent future. The

    emergences of shopping malls are increasing at a steady pace in the metros and there are

    further plans of expansion which would lead to 150 new ones coming up in India by

    2008. As the count of super markets is going up much faster than rate of growth in retail

    sector, it is taking the lions share in food trade.

    The growth of the Indian organized retail sector is anticipated to be heavier than the

    growth of the gross domestic product. Alterations in people's lifestyle, growth in income

    levels, and encouraging conventions of demography are proving favorable for the new

    emerging trends in the Indian organized retail sector.

    The success of this retail sector would also lie in the degree of penetration into the lower

    income strata to tap the possible customers in the lowest levels of society. The demands

    of the buyers would also be enhanced by more access to credit facilities.

    With the arrival of the Transnational Companies (TNC), the Indian retail sector will

    undergo a transformation. At present the Foreign Direct Investments (FDI) is not

    encouraged in the Indian organized retail sector but once the TNC'S get in they

    inevitably try to oust their Indian counterparts. This would be challenging to the retail

    sector in India.

    The trends to follow in the future:

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    The Indian Organized retail sector will grow up to 10% of total retailing by 2010.

    No one single format can be assumed, as there is a huge difference in cultures

    regionally. The most encouraging format now would be the hyper marts.

    The hyper mart format would be further encouraged with the entry of the TNCs

    Current Scenario

    A glimpse of the International Retail

    One of the world's largest industries exceeding US$ 9 trillion

    47 global fortune companies & 25 of Asia's top 200 companies are retailers

    Dominated by developed countries

    US, EU & Japan constitute 80% of world retail sales.

    Biggest player in India is Pantaloon Retail India Limited.

    Percentage of Organized RetailUSA - 85%

    Taiwan - 81%

    Malaysia - 55%

    Thailand - 40%

    Brazil - 36%

    Indonesia - 30%

    Poland - 20%

    China - 20%

    India - 3%

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    Key players

    The existing players like Big Bazaar, More Retail outlay, Vishal Mega Mart,

    Shoppers' Stop, Piramyd are expanding to smaller towns and cities. Many other

    business houses are planning to enter the retail sector either on their own or through

    partnerships. New entrants like Reliance Retail Ltd and Wal-Mart are going to enter

    the market soon. Even rural areas will provide a huge opportunity to be explored.

    BOARD OF DIRECTOR

    Mr. Kishore Biyani, Managing Director

    Mr. Gopikishan Biyani, Whole time Director

    Mr. Rakesh Biyani, Whole time Director

    Mrs. Veda Prakash Arya, Director

    Mr. Shailesh Haribhakti, Independent Director

    Mr. S Doreswamy, Independent Director

    Dr. D O Koshy, Independent Director

    Mrs. Anju Poddar, Independent Director

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    Mrs. Bala Deshpande, Independent Director

    Mr. Anil Harish, Independent Director

    Company Profile

    Pantaloon Retail (India) Limited, is India's leading retail company with presence across

    multiple lines of businesses. The company owns and manages multiple retail formats

    that cater to a wide cross-section of the Indian society and is able to capture almost the

    entire consumption basket of the Indian consumer. Headquartered in Mumbai (Bombay),

    the company operates through 5 million square feet of retail space, has over 331 stores

    across 40 cities in India and employs over 17,000 people. The company registered a

    turnover of Rest 2,019 crore for FY 2007-08

    It owns and operates multiple retail formats including Pantaloons, Big Bazaar, Food

    Bazaar, Central, E-Zone, Fashion Station, Depot and many others.

    Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail

    chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain that

    combines the look and feel of Indian bazaars, with aspects of modern retail, like choice,

    convenience and hygiene. Food Bazaar, food and grocery chain and launch Central, a

    first of its kind seamless mall located in the heart of major Indian cities, followed this.

    Some of its other formats include, Collection i (home improvement products), E-Zone

    (consumer electronics), Depot (books, music, gifts and stationary), All (fashion apparel

    for plus-size individuals), Shoe Factory (footwear) and Blue Sky (fashion accessories). It

    has recently launched its retailing venture, futurebazaar.com.

    AIMS COLLEGE, Dharwad.32

    http://futurebazaar.com/http://futurebazaar.com/
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    The group's subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon

    Industries Ltd, Galaxy Entertainment and Indus League Clothing. The group also has

    joint venture companies with a number of partners including French retailer Etam group,

    Lee Cooper, Manipal Healthcare, Jaywalkers, Gini & Jony and Liberty Shoes. Planet

    Retail, a group company owns the franchisee of international brands like Marks &

    Spencer, Debenhams, Next and Guess in India.

    Pantaloon Retail is listed on BSE and NSE with a turnover of Rs 2,018 crores for

    financial year ended 2007-08. Pantaloon Retail was selected as the Best of Best Retailers

    in Asia by Retail Asia-Pacific Top 500 magazine in 2006.

    Future Group

    Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned to

    cater to the entire Indian consumption space. The Future Group operates through six

    verticals: Future Retail (encompassing all retail businesses), Future Capital (financial

    products and services), Future Brands (management of all brands owned or managed by

    group companies), Future Space (management of retail real estate), Future Logistics

    (management of supply chain and distribution) and Future Media (development and

    management of retail media).

    Future Capital Holdings, the group's financial arm, focuses on asset management and

    consumer finance. It manages two real estate investment funds (Horizon and Kshitij) and

    consumer-related private equity fund, Indecision. It also plans to get into insurance,

    consumer credit and other consumer-related financial products and services in the near

    future.

    Future Group's vision is to, "Deliver Everything, Everywhere, Every time to EveryIndian Consumer in the most profitable manner." One of the core values at Future Group

    is, 'Indians' and its corporate credo is - Rewrite rules, Retain values.

    Future Group Manifesto

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    Future the word which signifies optimism, growth, achievement, strength, beauty,

    rewards and perfection. Future encourages us to explore areas yet unexplored, write

    rules yet unwritten; create new opportunities and new successes. To strive for a glorious

    future brings to us our strength, our ability to learn, unlearn and re-learn, our ability to

    evolve.

    We, in Future Group, will not wait for the Future to unfold itself but create future

    scenarios in the consumer space and facilitate consumption because consumption is

    development. Thereby, we will effect socio-economic development for our customers,

    employees, shareholders, associates and partners.

    Our customers will not just get what they need, but also get them where, how and when

    they need.

    We will not just post satisfactory results, we will write success stories.

    We will not just operate efficiently in the Indian economy, we will evolve it.

    We will not just spot trends; we will set trends by marrying our understanding of the

    Indian consumer to their needs of tomorrow.

    It is this understanding that has helped us succeed. And it is this that will help us succeed

    in the Future. We shall keep relearning. And in this process, do just one thing.

    Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by the

    Pantaloon Group. It works on same the economy model as Wal-Mart and has had

    considerable success in many Indian cities and small towns. The idea was pioneered by

    entrepreneurKishore Biyani, the head of Pantaloon Retail India Ltd.

    Big Bazaar stores in Metros have a gaming area and kids play area for entertainment.

    Cities where stores are located are,

    AIMS COLLEGE, Dharwad.34

    http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pantaloon_Grouphttp://en.wikipedia.org/wiki/Pantaloon_Grouphttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/w/index.php?title=Kishore_Biyani&action=edithttp://en.wikipedia.org/w/index.php?title=Kishore_Biyani&action=edithttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pantaloon_Grouphttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/w/index.php?title=Kishore_Biyani&action=edit
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    Agra, Ahmadabad, Allahabad, Ambala, Asansol, Bangalore, Bhubaneswar, Chennai,

    Coimbatore,Palakkad, Kolkata, Delhi, Durgapur, Ghaziabad, Gurgaon,Hyderabad,

    Indore, Lucknow,Kanpur, Mangalore, Mumbai, Nagpur, Nasik, Panipat, Pune, Rajkot,

    Surat, Thane, Thiruvananthapuram, Vishakhapatnam.

    Big Bazaar is not just another hypermarket. It caters to every need of customers family.

    Where Big Bazaar scores over other stores is its value for money proposition for the

    Indian customers.

    At Big Bazaar, customer will definitely get the best products at the best prices -- thats

    what Big Bazaar 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 customer. And this is just the beginning. Big Bazaar plans to add much more to

    complete customers shopping experience.

    Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by the

    Pantaloon Group. It works on it the economy model as Wal-Mart and has had

    considerable success in many Indian cities and small towns. The idea was pioneered by

    entrepreneurKishore Biyani, the head of Pantaloon Retail India Ltd.

    Big Bazaar stores in Metros have a gaming area and kids play area for entertainment.

    Cities where stores are located

    Agra

    Ahmedabad

    Allahabad

    Ambala

    Asansol

    Bangalore

    AIMS COLLEGE, Dharwad.35

    http://en.wikipedia.org/wiki/Agrahttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Allahabadhttp://en.wikipedia.org/wiki/Ambalahttp://en.wikipedia.org/wiki/Asansolhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bhubaneswarhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Coimbatorehttp://en.wikipedia.org/wiki/Palakkadhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Durgapurhttp://en.wikipedia.org/wiki/Ghaziabadhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Hyderabad_(India)http://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Mangalorehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Nagpurhttp://en.wikipedia.org/wiki/Nasikhttp://en.wikipedia.org/wiki/Panipathttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Rajkothttp://en.wikipedia.org/wiki/Surathttp://en.wikipedia.org/wiki/Thanehttp://en.wikipedia.org/wiki/Thiruvananthapuramhttp://en.wikipedia.org/wiki/Vishakhapatnamhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pantaloon_Grouphttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/w/index.php?title=Kishore_Biyani&action=edithttp://en.wikipedia.org/w/index.php?title=Kishore_Biyani&action=edithttp://en.wikipedia.org/wiki/Agrahttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Allahabadhttp://en.wikipedia.org/wiki/Allahabadhttp://en.wikipedia.org/wiki/Ambalahttp://en.wikipedia.org/wiki/Asansolhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Agrahttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Allahabadhttp://en.wikipedia.org/wiki/Ambalahttp://en.wikipedia.org/wiki/Asansolhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bhubaneswarhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Coimbatorehttp://en.wikipedia.org/wiki/Palakkadhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Durgapurhttp://en.wikipedia.org/wiki/Ghaziabadhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Hyderabad_(India)http://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Mangalorehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Nagpurhttp://en.wikipedia.org/wiki/Nasikhttp://en.wikipedia.org/wiki/Panipathttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Rajkothttp://en.wikipedia.org/wiki/Surathttp://en.wikipedia.org/wiki/Thanehttp://en.wikipedia.org/wiki/Thiruvananthapuramhttp://en.wikipedia.org/wiki/Vishakhapatnamhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pantaloon_Grouphttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/w/index.php?title=Kishore_Biyani&action=edithttp://en.wikipedia.org/wiki/Agrahttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Allahabadhttp://en.wikipedia.org/wiki/Ambalahttp://en.wikipedia.org/wiki/Asansolhttp://en.wikipedia.org/wiki/Bangalore
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    Bhubaneswar

    Chennai

    Coimbatore

    Palakkad

    Kolkata

    Delhi

    Durgapur

    Ghaziabad

    Gurgaon

    Hyderabad

    Indore

    Lucknow

    Kanpur

    Mangalore

    Mumbai

    Nagpur

    Nasik

    Panipat

    Pune

    Rajkot

    Surat

    Thane

    Thiruvananthapuram

    AIMS COLLEGE, Dharwad.36

    http://en.wikipedia.org/wiki/Bhubaneswarhttp://en.wikipedia.org/wiki/Bhubaneswarhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Coimbatorehttp://en.wikipedia.org/wiki/Palakkadhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Durgapurhttp://en.wikipedia.org/wiki/Ghaziabadhttp://en.wikipedia.org/wiki/Ghaziabadhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Hyderabad_(India)http://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Mangalorehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Nagpurhttp://en.wikipedia.org/wiki/Nasikhttp://en.wikipedia.org/wiki/Panipathttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Rajkothttp://en.wikipedia.org/wiki/Surathttp://en.wikipedia.org/wiki/Thanehttp://en.wikipedia.org/wiki/Thiruvananthapuramhttp://en.wikipedia.org/wiki/Bhubaneswarhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Coimbatorehttp://en.wikipedia.org/wiki/Palakkadhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Durgapurhttp://en.wikipedia.org/wiki/Ghaziabadhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Hyderabad_(India)http://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Mangalorehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Nagpurhttp://en.wikipedia.org/wiki/Nasikhttp://en.wikipedia.org/wiki/Panipathttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Rajkothttp://en.wikipedia.org/wiki/Surathttp://en.wikipedia.org/wiki/Thanehttp://en.wikipedia.org/wiki/Thiruvananthapuram
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    Vishakhapatnam

    Big Bazaar is not just another hypermarket. It caters to

    every need of customers family. Where Big Bazaar scores

    over other stores is its value for money proposition for the

    Indian customers.

    At Big Bazaar, customer will definitely get the best products

    at the best prices -- thats what Big Bazaar 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

    customer. And this is just the beginning. Big Bazaar plans to

    add much more to complete customers shopping experience.

    Store study

    Big Bazaar

    Akshay centre, Akshay Park

    GOKUL ROAD, HUBLI-580030

    Phone No: 0836-4266555

    AIMS COLLEGE, Dharwad.37

    http://en.wikipedia.org/wiki/Vishakhapatnamhttp://en.wikipedia.org/wiki/Vishakhapatnam
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    This store is of 2 flour and divided into 2 levels based on the

    nature of products. There are 21 departments in this store

    and 120 Human Resource employed.

    As this store is big enough with 2 levels and 21 departments

    has long product range and product depth. Ones a customer

    get inside the store he will find all kinds of products

    available that may be Food item, Cosmetic, Electronic,

    Garments, Furniture etc.

    Because of these features it has a very good reputation in

    that area and customers who are residing far away and in

    other areas they also visit the store.

    Level 1

    Departments with their Products

    1) Depot:

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    General books

    Office stationary

    Children stationary

    Film VCDs & DVD

    Major Brands in this department

    For VCDs & DVDs:

    Moser bear

    T-Series

    Yesh Raj Films

    Anand Audio

    Jhankar

    Sarvotham

    For Office stationary

    Stick

    Apsara

    Kores

    Fiber Castle

    Depo exposes

    Park

    Cello

    3 M

    Kangaroo

    Built

    Matrix

    For Books

    Penguin

    Roopa

    Bentam

    Classic

    2) NBD (New Business Development)

    This is the department, which is introduced because the

    space is available in the store after making arrangement for

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    other department and this department consists of the

    products, which are not introduced and are not regular

    goods.

    Wrist Watches

    Fashion Jewelry

    Sunglasses

    Auto accessories

    Major Brands in this department

    For Wrist Watches

    Escort

    Lumax

    3) Gold Bazaar

    Navaras Gold Jewelry

    This is the separate unit not related to Big Bazaar they share

    profits on percentage basis

    4) Mobile Bazaar

    All kinds of Handsets ranging from Rs 1000 to 25000 of

    different companies

    Mobile accessories

    Coddles phones & land line phones

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    Major Brands in this department

    Nokia

    Sony Ericson

    Motorola

    Samsung

    Beetal

    Pacetel

    5) Star Sitara

    Cosmetics

    Fragrances

    Herbals

    Pharmaceuticals

    Major Brands in this department

    For Fragrances

    MKD distributors

    G R fragrances

    BCPL

    Nabed

    Intercraft

    Indo French

    For Herbals

    Lotus

    VLCC

    Shehnaaz Hussain

    Biotech

    For Cosmetics

    Color Bar

    Lakme

    May Billine

    Revlon

    Streets wear

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    Vega and roof

    6) Shringar

    Bangles

    Jewelry sets

    Bracelets

    Hair Accessories

    Bindies

    Chains

    7) Ladies Department

    Sarees

    Dress materials

    Under garments

    Nightwears

    Western wears

    Major brands in this

    department

    Shila

    Shristhi

    Kalakruthi

    MSIL

    Jeans

    Bretni

    DJ & C

    Ruff & Tuff

    Gelluse

    Accessories

    Johnson and Johnson

    Paris beauty

    VIP

    8) Mens Department

    Formals (Shirts & Pants)

    Casuals (Shirts & pants)

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    Party wears

    Jeans T-Shirts

    Others Accessories (Lungi Dhoti etc)

    Fabrics (Cut pieces)

    Suits & Blazers

    Levis Signature garments

    Major brands in this department

    DJ & C

    Ruff & Tuff

    Levis

    Night hood

    Peter England

    Raymonds

    9) Furniture Department

    Dining Table

    Bedroom Accessories

    Hall accessories (Sofa sets, Chairs, Computer table etc)

    Mattresses

    10) Footwear Bazaar

    Sports Shoes

    Formal Shoes

    Casual Shoes

    Mens Sandals

    Ladies Sandals

    Ladies Casuals

    Ladies Chapple

    Ladies fancy Sleepers

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    Ladies Sports shoes

    Major brands in this department

    Reebok

    Nike

    Puma

    Loto

    Van hussain

    Hallen solly

    New balance

    11) Home Dcor

    Flower vase

    Artificial Flowers

    Religious gifts

    Candle stand

    Umbrellas

    Photo Frames

    Assorted color Stones

    Frame Paintings

    Water falls (artificial)

    Birthday items

    12) Home line

    bed sheets, Pillows , bed spreads

    Towels, Yellow dust

    Razai , Carpets, Cushion covers

    Chair bags

    Major brands in this department

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    Riviera

    Oriental

    Orchid

    Home collection

    Home expression

    Sameera

    Home style

    Sweet dreams

    Modern

    13) Toys Dept

    Soft toys

    Educational toys

    Board games, Action figures

    Dolls

    Major brands in this department

    Fun school

    Venus

    Mitashi

    Creatives

    United

    Shadilal & Sons

    Flamingo

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    14) Kids department

    Boys section

    T-Shirts, Trousers, jeans

    Cotton shirts, Cargo, Cod raw

    Ethic wears

    Co ordinates

    Rain cotes

    Girls Section

    Ethic wears

    Co- ordinates

    Cotton frocks

    Western wears

    Major brands in this department

    Tara Rum Pum collection

    Disney

    Pink And Blue

    Power ranges

    Promo

    Infants

    Jhablas

    Vests

    Bibs feedings

    Bed items

    Baba suits

    Frocks

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    15) Electronic Bazaar

    Televisions

    Sound System

    Refrigerators

    Washing machines

    Microwave

    Rice cookers

    Juicers

    Irons, Mixers & Grinders

    Major Brands in this department

    Sony

    Vidiocon

    LG

    HCL

    IBM

    Creative

    Philips

    Samsung

    Onida

    Whirlpool

    16) Luggage

    Travel bags

    Trolleys

    Bags: Schools, Collage

    Ladies purse

    Suitcase

    VIP

    American Tourist

    Aristocrat

    Safari

    Milestone

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    Level 2

    Food Bazaar

    1) Beverages

    Soft drinks

    Mineral water

    Juices

    Health drinks

    2) Confectionaries

    All kinds of Chocolates & Confectionaries

    3) Fruits & Vegetables

    4) Staples

    Dal, Rice, Atta, Rava items

    Oils, Masala items

    Dry fruits

    Spicy items

    Ready meals

    Breakfast cereals

    5) Process Dept

    Health drinks

    Ready to eat

    Corn flaks, Chips

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    Instant mixes

    Soups, Bread items, pickle

    Spreads

    Major brands in this department

    For Beverages

    Maaza

    Slice

    Bisleri

    Cocacola

    Pepsi

    Thumps up

    Apply

    For confectionaries

    Dairy Milk

    Nestle

    Parle

    For Staples

    Ashirwad

    Pillsbury

    Dhara

    Sunflower

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    Non-food Dept6) Home care

    Phenyl, Detergents

    Dish wash, Tissue papers, Scratch

    Shoe cases, Fresh wrap,

    7) Personal care

    Soaps, toothpaste, Shampoo

    Deodorants, Body spry

    Baby food, Talcum powder

    Mens apparel

    Major Brands in this department

    For Home care

    Lysole

    HLL

    Nirma

    For Personal care:

    Colgate

    Pepsodent

    Parachute

    Lux International

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    8) Plastics, Utensils, Crockery (PUC)

    a) Plastics

    Buckets

    Casseroles

    Containers

    Boxes

    Flasks

    Bowls

    Jugs & sippers

    Bottles & Mugs

    Major brands in this department

    Milton

    Dream Line

    Cello

    Poly set

    Chetan

    b) Utensils

    Plates, Bowls, Glasses

    Non-stick Cookwares

    Kitchen tools

    Tiffin Boxes

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    c) Crockery

    Crockery cutlery

    Table Materials / Napkins

    Casseroles

    Dinner sets

    Wine, Juice Glasses

    Future Plans of BIG BAZAAR

    Recently they are interested to expand their retail business

    in Mysore and along with that they are interested to

    establish two retail outlets in Gulbarga District.

    Big Bazaar plans 300 stores by 2010-11

    20 May, 2009, 1722 hrs IST, PTI

    NEW DELHI:

    Kishore Biyani-promoted Future Group's retail chain Big Bazaar is planning to have 300

    hypermarkets in the country by 2010-11.

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    The company is also mulling to increase its annual turnover to Rs 13,000 crore by 2010-

    11, up from Rs 3,600 crore last fiscal on the back of its expansion.

    "We started with our first store in October 2001 and have now crossed the hundred mark

    with three stores opened today in Pune, Cut tack and Delhi. Our plan is to increase the

    number of our stores to 300 by end of the 2010-11 fiscal," Big Bazaar Chief Executive

    Officer Rajan Malhotra said.

    He said the company would have another 35 odd stores by end of its fiscal in June 2009

    to take the total number to 135.

    "We are targeting a turnover of Rs 5,000 crore this year and have plans for reaching a

    figure of Rs 13,000 crore by 2010-11 fiscal," Malhotra said.

    He added that the company would be looking at both the metros and Tier I cities, besides

    Tier II and smaller cities, for the expansion.

    The Big Bazaar hypermarkets had a footfall of 11 crore last fiscal and the company is

    aiming for an increase in the numbers up to 14 crore this year. The size of its

    hypermarkets on average is 30,000 sq ft to one lakh sq ft.

    The company is also launching a special festive season 'One in a Lifetime' offer across all

    its stores on October 1-5. The offer would run in all Big Bazaar format stores on apparels,

    footwear, accessories and general merchandise, he added.

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    Organizational Structure (Zonal)

    President

    Vice President

    Marketing HR Category Manager FinanceManager Operation

    Manager ManagerHead

    Marketing HR Category FinanceHead Store manager

    Head Head Head

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    Store Structure

    Store Manager

    Assist Store Manager

    Dept Manager Human ResourceAdministration Info Tech

    Visual Merchandise Marketing

    Assist DMCashing Dept

    Maitanance

    Team Leader Assistant HR

    Security

    Team MembersCashier

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    Housekeeping

    CSD(Customer Service desk)

    VISSION

    TO EMERGE AS THE BEST AND THE

    MOST PROFITABLE RETAILER IN INDIA

    MISSION

    "TO SPEARHED HIS COMPANY TO BE THE

    FINEST AND THE MOST PREFERRED

    CHAIN IN RETAILING

    Big Bazaar on an expansion spree

    Countries leading retail chain Future Group is going for a

    major expansion of its Big Bazaar chain of outlets, with the

    company planning to take the total number of stores to150 by June 2009.

    Big Bazaar presently has 92 outlets across the country and

    has plans to add over 45 stores by the end of June 2009,

    Future Group Director Rakesh Biyani said. Besides, the

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    company is also exploring for a 50:50 joint venture with

    International Group for its kidsWear segment.

    "We are exploring various proposals and options to

    maximize our efficiency and operations," he said on the

    sidelines of the Pure & Play Retail Summit here. When

    asked

    About the media reports regarding Future Group plans' to

    split the company into two specialized segment consisting of

    front - end and back - end retail, Biyani refused to

    Comment on the issue.

    "The company cannot comment on speculated stories run by

    sources. There is no official

    Announcement or decision in this regards," Biyani said.

    He added that the companys expansion would be fully

    funded, with its own capital.

    "The funding plans are being done by preferential allotment

    and we have already decided about the amount, " he said.

    Future Group is also starting its own ethnic women's

    wear stores and the first one will start by August this year.

    "A total ethnic in the women' wear category will come up in

    various cities and the stores will be on 15,000-16,000 sq

    feet," Biyani added that the company is planning to grow

    by 15-20 per cent in apparel wear and double itssales of

    ethnic women wear in the next few years. The company is

    also looking for an increase of 50-55 per cent in its total

    sales over the next five years.

    SECURITY MEASURES

    Pantaloon Apparel, food, etc. POS: Home-grown solution

    SAP Retail

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    BI and Data warehouse: Congos (process of evaluation)

    handheld scanners at Food Bazaar

    VPN: Company-wide network linking all the branches

    They have loss prevention cell (LPC) that will be lookingafter the safety measures in the organizations. There are 5

    members in each store.

    They have 3 types of tags

    4. Hard tag

    5. Soft tag

    6. String tag

    These tags will be attached to the materials. If any personwill take that without paying bill some process will be taken

    by the LPC.

    Process: In case any theft is done in big bazaar they will

    catch the person & they will fine him and they will fill one

    form that he had done the mistake & they will take all 10

    fingers thumb impression.

    Departmental Managers

    There are 24 departments in this store like Electronic dept,

    Depot dept, NBD dept, Mobile Bazaar Dept, Star sitar Dept,

    PUC Dept, Ladies Dept, Mens Dept, Furniture Dept,

    Footwear Dept, and Home Dcor Dept. Each department

    will be assigned with targets, which have to be achieved

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    within the assigned period that may be of Daily, Weekly,

    monthly and yearly.

    Each department has a department Manager & Assist DM.

    Their job is concerned mainly with sales. They look after

    customers orders delivery post sale service if any etc. All

    Dept managers ADM, Team members work under

    coordination & cooperation.

    They are also responsible for the placing orders of the goods

    incase of shortage here they have to send indent specifying

    the amount of products needed at the store. They have to

    report periodically the performance of the department to the

    store manager.

    Administration

    Store administration comes under Store Manager its

    functions are store maintenance, House Keeping, Security

    etc. Store manager has to control all the activities within the

    store. He has to communicate all the departmental managers

    and assistance departmental managers regarding any new

    offers, regarding their targets etc. Sore manager has to see

    the operation at the store is being performed in coordination

    and cooperation he has to communicate with the corporate

    office regarding any changes being applied at the store.

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    Information Technology

    This department is responsible for the maintenance of the

    systems of the stores. All billing machines their functioning

    networking with the master machine etc. If there is any

    problem with the machine then this department comes into

    function.

    Cashing Dept

    This department is responsible for the collection of sales

    amount i.e. cash sales, Credit sales, etc under this

    department all billing machines of the stores comes. The

    sales amount collected throughout the day by the cashiers

    has to be submitted to this department.

    Marketing

    This dept is responsible for the marketing of the store in

    different media like Television, Newspaper, and Holdings

    etc. the authorized person has to visit different companies

    and has to look after for tie-ups etc. The executives arranges

    rallys

    Visual Merchandise

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    This department is responsible for the product arrangement

    at the store with respect to their nature. The basic function

    of this dept is it divides the store into several departments

    based on the nature of the product and within the department

    it decides how the products should be arranged by keeping

    in mind the customer should not suffer.

    Human Resource

    Human Resource basically works for the welfare of the

    employees. It acts to organize the manpower and work to

    increase productivity of the employees. Basically Human

    Resource performs the functions of Recruitment, Hiring,

    Induction, Training and development, Performance

    appraisal of the employees. Human Resource studies and

    involves in inter life cycle of the employee from his joining

    the organization to till his end from the organization.

    CSD (Customer Service Desk)

    This is the separate unit, which is mainly focuses on

    customer service like if the customer find difficulty in

    finding any product, Customer complaints any

    replacement, Customer assistance etc.

    Supply chain management:

    Companys supply chain was split into the broad categories

    of fashion, food and general merchandise, leading to a more

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    focused approach to businesses, improved service levels,

    better customization of logistic and supply chain related

    needs, and finally deliverables. Further, with new concepts

    and lines of business being included during the year, as well

    as strategic alliances with other companies, the process of

    gradually integrating them have either been completed or

    close to completion.

    The existing supply chain design consists of a Master

    Distribution Centre (MDC) and city warehouses upgraded to

    Regional Distribution Centers (RDCs) and additional

    Distribution Centers (DCs). The company had one MDC

    and 16 RDCs and DCs

    The company has also appointed leading international and

    domestic players in the warehouse infrastructure and

    technology front.

    The company also introduced the concept of reverse logistics

    that looks at setting up a process to transfer finished goods

    from the consumption point to the point of origin.

    This reduces wastage and can lead to significant cost

    savings. On the technology front, all the existing MDCs,

    RDCs and DCs are live on SAP, thereby facilitating

    standardization, real time data management and reporting,

    as well as optimum operational efficiencies.

    My Learning Experience in the company

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    I am very happy to express my practical experience at Big

    Bazaar. Before going to share my practical feelings

    regarding project work. I would like to say heartily thanks to

    Adept Institute of Management studies. Who have given one

    of the good opportunity to learn a knowledge in practical

    environment and along with that I would like to say heartily

    thanks to company guide Mr.Arif ADM (Assistant

    Department Manager) of big Bazaar.

    I had under gone a glorious 30 days project at Big Bazaar.

    And along with that I had learn a lot of practical things from

    the corporate world. From this project i came to know that

    customer buying behavior and taste and priority preferences

    of customer towards retail sector and competition level in

    the sector and along with that i had learn how management

    is responsible for increasing sales and revenue of the

    company And also i learned what management make to

    attract the customer there are several promotional strategy

    which influencing purchase decision of buyers and also I

    learned functional department like HR, Finance and

    Marketing.

    From this project now I came to know that how to carried

    out business process in a systematic manner in the

    competition level.

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    This practical knowledge of project made me to perfect in

    future to stand in a any corporate world. And Finally I

    thanks to AIMS College Dharwad and company guide

    Mr.Arif

    Research Methodology

    Since the study is on retail sector first the detail study of the

    store is been conducted about its Management team its

    structure the number of departments which all brands does

    the store has, who are its suppliers about its warehouses.

    Based on the topic objectives were set and to arrive at the

    opinion on objectives a set of 100 questionnaires were

    designed of 10 questions and response is collected from the

    customers who are visiting the store. For data collection

    Random Convenient sampling method was adopted

    For this project the area of research is Hubli.

    Objective of the project

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    To know the effective promotional strategy

    which influence customer to purchase a product

    of Big Bazaar.

    Sub-objectives

    1) To know the promotional strategy of big bazaar

    2) To know the relationship between promotional

    strategy and buying decision

    Data Collections Methods

    Market research requires two types of data i.e. secondary

    data and primary data. Primary data has been used

    abundantly for the study. Well-structured questionnaires

    were prepared & the survey was undertaken. Feedback for

    the display has been taken by asking questions &

    observation has also done to gather primary information.

    There is also a use of secondary data, collected from the

    various journals, books, and websites & from company

    managers.

    Primary data Field Survey

    Secondary data Big Bazaar records

    Text Books and journals

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    Company Websites

    Area of research: Hubli

    Research approach: Survey method

    Sampling Method

    Since the study is restricted to Retail sector, all the

    functional Departments of Big Bazaar and the respondents

    are found at the store only so according to the convenience

    randomly they are being picked so sampling method is used

    in this study is Random Convenient Sampling.

    Sampling

    Sample size : 100 respondents

    Sampling Method : Random Convenience sampling

    Sample Unit : Customer of Big bazaar

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    Measuring Tool : Questionnaire

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    ANALYSIS AND

    INTERPRETATION

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    Q No 1: Which store first comes to your mind when you

    think of purchasing a product?

    RESPONSE NO OF RESPONDENTS PERCENTAGE

    Big bazaar 77 77%

    Vishal mega mart 15 15%

    Others retailer 8 8%

    Total 100 100%

    ANALYSIS:

    From the survey, from 100 respondents, 77% of them gave

    1st preference to Big Bazaar 15% of them gave preference

    to Vishal Mega Mart and 8% were gave to other retailer .

    INTERPRETATION

    Most of the customers are given 1st preference to Big

    Bazaar compare to other retailers

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    2) From which source did you come to know about BigBazaar outlet.

    RESPONSE NO OF RESPONDENT PERCENTAGE

    T .V Advertisement 23 23%

    Hoardings 34 34%News paper 31 31%Buspaintings 12 12%

    Total 100 100%

    ANALYSIS:

    From the above graph i can come to know that, among 100

    respondents, 23% of them come to know about Big Bazaar

    through TV advt., 34% of the respondents told that through

    Hoardings, 31% of them through news paper , and 12%

    came to know through bus painting

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    INTERPRETATION. Hoarding is the most influencing

    factor which is responsible for awareness of Big Bazaar.

    3) Are you aware of promotional offers conducted by

    big bazaar?

    Response No of respondents PercentageYes 87 87%

    No 13 13%

    Total 100 100%

    ANALYSIS: Among the 100 respondents, 87% of them

    they are aware of promotional offers, 13% told they have

    told that they are not aware.

    INTERPRETATION: