big bazaar
TRANSCRIPT
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Summer internship project
Company:
Pantaloon retail India LTD.
(big bazaar)
Summer Training report submitted in partial fulfilment
Of the requirements for the PGD programme.
At
IILM INSTITUTE OF HIGHER EDUCATION
ACHEDEMIC GUIDE: SUBMITTED BY:
PROF. KAWITA SHUKLA PANKAJ CHANDEL
COMPANY GUIDE: ROLL NO. PG 2007 1319 MR. ANOOP NAIDU PGP 2007-09
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Summer Project Certificate
This is to certify that PANKAJ CHANDEL Roll No. PG 20071319 a student of PGP has worked on Summer project titled SUPPLY CHAIN
MANAGEMENT OF BIG BAZAAR at PANTALOON RETAIL INDIA LTD.(BIG BAZAAR)after trimester-III in partial fulfilment of the requirement for the programme. This is his/her original work to the best of my knowledge.
Date: - _______ Signature __________
Seal: Name of Faculty________
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Declaration
I hereby declare that the project report titled ‘’Supply chain management of Big Bazaar’’ in Indore (Treasure Island )is my own work and has been carried under the guidance of Mr. ANOOP NAIDU INDUSTRY GUIDE and Mrs. kavita shukla faculty IILM. Report is submitted in partial fulfilment for the award of post graduate program. All care has been taken to keep this report error free and I sincerely regret for any unintended discrepancies that might have crept into this report. I shall be highly obliged if errors (if any) be brought to my attention.
Thanking you.
Pankaj chandel
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Acknowledgement
Undertaking any project in life proves to be a milestone in more ways than one. Its successful completion reifies on a myriad of people & their priceless help.
Project work in never the work of an individual, it is more of a combination of views, suggestions &contribution of many individuals. Thus one of the most pleasant parts of doing this project is the opportunity to thank all these who have contributed towards successful completion of this project.
I take this opportunity to thank the Pantaloon Retail India Ltd.( BIG BAZAAR) to give me this chance to know about the back bone of the retail industry. It has been a pleasurable experience filled with knowledge & awareness to take part in this project. This project would not have been successful without the guidance of my industrial project guide Mr. ANOOP NAIDU. Who has provided me time, out of his busy schedule. Further I would also like to thank whole team of Big Bazaar for their co operation & guidance at field. Without the support of these wonderful people I would never had completed my internship successfully & learning would never have turned interesting.
Last but not the least I would like to thank the whole team of Pantaloon Group Retail India Ltd for so much supportive nature.
Pankaj chandel
PGP-2007-09
PG 200071319
IILM INSTITUTE OF HIGHER EDUCATION
GURGAON(N.C.R. DELHI)
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Executive summary
I have undertaken my summer internship with supply chain department of Pantaloon Retail India Ltd. (Big Bazaar) Indore a unit of future group.
As supply chain is a very big area to cover in just sixty days, so I formulate a complete supply chain of Big Bazaar and divide my work in store ware house, floor, and central ware house. Firstly I spend some time on floor and see the customer buying behaviour, customer preference, customer need etc.,the visualisation part done by the V.M. and floor team arrangement of the material on the floor to attract the customers.
In current business scenario S.C.M. is very big and major problem for retail industry. Second part of my job was to work in store ware house where I have seen the complete receiving of the material and documentation process by following all the rules of S.O.P. In the store ware house I have seen the in warding of the material on SAP with different commands, how to make G.R.N. of the material and post all the documents to the commercial office. Here I have seen how to make S.T.O.
Third part of my job was to work with Central Ware House team. In ware house I try to understand whole process of supply chain and logistics, their way of working. Here I have seen in warding, racking, out warding, segregation and maintenance of the stock physically as well as in SAP.
Then finally I have done market research on buying behaviour of customers towards three main players of the retail industry.Questionaire is customer oriented in spite of vendor oriented because according to me customer is the king of supply chain. Supply chain circulates with the flow of information in terms of need of the customers. I made questionnaire and did a survey by filling the questionnaires and get findings from the result of these questionnaires. By the help of these findings I came to know that before entering in to a retail outlet customer weighs that retail outlet on some parameters. By the help of findings from questionnaires I came to know the sequence and weighing of these parameters preferred by the customers. Big Bazaar is on the right track by using these parameters for being customer oriented.
After the above studies and insight of the workings a few hindrances where spotted but on an
overall we can say that the store is quite well maintained.
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Content
Topic Page no. 1.Executive summary 5
2. What is retailing 7
3. Company introduction (Pantaloon Retail India Ltd.) 10
4. Supply Chain Management 15
4.1 Supply Chain process 16
4.2 Supply chain of Big Bazaar 18
5. No. of register maintain in store wear house 25
6. Documents 26
7....................... 29
8. Three flows in supply chain 31
9. Transportation of material in Big Bazaar 32
10. Concept of ware housing in Big Bazaar 33
11. Material handling cost 37
12. Three type of distribution centre in Big Bazaar supply chain 38
13. Central ware house Indore 38
14. Some terms in supply chain of Big Bazaar 43
15. Research Objective 51
16. Analysis 54
17. Findings 62
18. Objective with questionnaire 63
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What is RetailingRetailing is the distribution channel function where on organisation buys products from supplying firms and manufacture the product themselves and then sell these directly to consumers. Retailer is also reseller-obtain the product from one party in order to sell to other. The term "Retailing" refers to any activity that involves a sale to an individual customer. In India, the unorganized retailing sector comprises of 96.5% while that of organized sector just 3.5% that is mainly in major metropolitan and urban areas. Indian retailing traditionally dominated by a small family run "Kirana" store. Retailing in India is the second largest untapped market after China. Professional management and strong customer focus characterize organized retailing.
Concept- To woo the customer to the store retailers are providing a wide range of product, Quality, and value for money, apart from creating a memorable shopping experience. Organized retailing has made a considerable headway in product like food & groceries, clothing books, and music.
Five things for the retailer-
1. Customer satisfaction2. Ability to acquire right product3. Product presentation4. Traffic building5. Keeping pace with technology
The leading Indian retail player are-
1. Westside (Tata)2. Pantaloon3. Big Bazaar4. food bazaar(PRIL)5. Food world(RPG) 6. Shopper's stop(Raheja Group)7. Reliance fresh8. Visual mega mart9. Life style10. Ebony11. Hyper city12. Honey well13. Subhiksha
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Different format of retail-
1. Mom-and-pop stores: These are generally family-owned businesses catering to small sections of society. They are small, individually run and handled retail outlets.
2. Category killers: Small specialty stores have expanded to offer a range of categories. They have widened their vision in terms of the number of categories. They are called category killers as they specialize in their fields, such as electronics (Best Buy) and sporting goods (Sport Authority).
3. Department stores: These are the general merchandise retailers offering various kinds of quality products and services. These do not offer full service category products and some carry a selective product line. K Raheja's Shoppers Stop is a good example of department stores. Other examples are Lifestyle and Westside. These stores have further categories, such as home and décor, clothing, groceries, toys, etc.
4. Malls: These are the largest form of retail formats. They provide an ideal shopping experience by providing a mix of all kinds of products and services, food and entertainment under one roof. Examples are Sahara Mall, TDI Mall in Delhi.
5. Specialty Stores: The retail chains, which deal in specific categories and provide deep assortment in them are specialty stores. Examples are RPG's Music World, Mumbai's bookstore Crossword, etc.
6. Discount stores: These are the stores or factory outlets that provide discount on the MRP items. They focus on mass selling and reaching economies of scale or selling the stock left after the season is over.
7. Hypermarkets/ Supermarkets: These are generally large self-service outlets, offering a variety of categories with deep assortments. These stores contribute 30% of all food and grocery organized retail sales. Example: Big Bazaar.
8. Convenience stores: They are comparatively smaller stores located near residential areas. They are open for an extended period of the day and have a limited variety of stock and convenience products. Prices are slightly higher due to the convenience given to the customers.
9. E-tailers: These are retailers that provide online facility of buying and selling products and services via Internet. They provide a picture and description of the product. A lot of such retailers are booming in the industry, as this method provides convenience and a wide variety for customer. But it does not provide a feel of the product and is sometimes not authentic. Examples are Amazon.com, eBay.com, etc.
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10. Vending: Smaller products such as beverages, snacks are some the items that can be bought through vending machines. At present, it is not very common in India.
View of a retail store-
To have a clear picture and understanding of any matter it is
very important to approach it from the grass root level therefore to understand retail in depth it
becomes important to deal first hand with the customers to whom you shall be catering to.
Moreover the retail store is the final destination of all retail operations, so it again becomes
important to know the handling, operations and various dealings at the basic store level. The
employees, from the sales staff to the store manager, need to be highly customer driven and have
the efficiency to meet the ever rising customer expectations. How can employees meet these
rising customer expectations and alongside maintain efficiency of resources. The employees
need to be well informed about stock availability, reorder points, latest trends, customer
expectations, competitor strategies etc.
To meet such stiff competition retailers need to follow a hybrid approach which involves both
standardization and customization of processes and services respectively as and when the need
arises.
The retail staff needs to be highly customer driven and their efforts should not be aimed at
making a sale but at earning a loyal customer for it is rightly said that 80% of the sale comes
from 20% of the customers.
Retail is all about size. If you look at retail companies, margins are thin. So it is important to
grow to such a size that even if margins improve by ten basis points, the impact on the bottom-
line is large.
Therefore the processes need to be consumer friendly and apt according to the cost reduction and
revenue generation policies of the company. Though the consumer behaviour is something that is
highly unpredictable it needs to be motivated continuously for the benefit of the organization and
definitely the customer too.
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Why retail is booming in India-
1. Cultural habits changing –people are acquiring Western look
2. New retail format development to incorporate, Changing attitudes like
“Having a good time” attitude driving growth of pubs, clubs, coffee bars, fast food joints
etc.
3. Increasing awareness and spending on grooming and lifestyle.
4. High disposable incomes
5. Reduction in import tariffs, excise duty
6. More competition leading to fall in prices
7. Before liberalization many consumer durables were not available – Government
disallowed imports of most products – Luxury items banned/had high import tariffs
8. Post liberalization
Enhanced availability of superior quality goods at affordable prices
9. Two incidental factors
Spread of cable and satellite television influencing consumer behavior.
Changing retail scenario-
Demand = Ability + willingness to spend;
Market = Demand + supply
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Growing affluence
Retail boom Economic development
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Company introduction
Pantaloon Retail India Ltd.
Pantaloon Retail (India) Limited, is India’s 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 10 million square feet of retail space, has over 1,000 stores across 61 cities in India and employs over 30,000 people.
The company’s 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, and Star and Sitara. The company also operates an online portal, futurebazaar.com.
A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to the consumer electronics segment.
Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona.
Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.
Future group-
Future Group is one of the country’s leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The group’s flagship company, Pantaloon Retail (India) Limited operates over 10 million square feet of retail space, has over 1,000 stores and employs over 30,000 people. Future Group is present in 61 cities and 65 rural locations in India
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Some of the awards given to Pantaloon Retail (India) Limited:
Images Retail Awards 2005PRIL - Most admired retailer of the yearCentral - Retail launch of the yearMr. Kishore Biyani - Retail Face of the year Big Bazaar - Best Value Retail Store Readers Digest and Awaaz Consumer AwardBig Bazaar - Best Retail Destination Readers Digest Platinum Trusted Brand AwardBig Bazaar - Earning a trusted Place in the everyday lives of consumers Food Bazaar - Retailer of the year (food and groceryBig Bazaar - Most preferred, large, Food and Grocery store
Partner companies
Pantaloon Industries Ltd. Home Solutions Retail (India) Ltd.Future Capital HoldingsConverge M Retail (India) Ltd. Indus League Clothing Ltd. Galaxy Entertainment Corporate Ltd.
Joint Ventures Companies
Planet Retail Holdings Ltd. Foot mart RetailGJ Future FashionsCapitaLand Retail India ETAM Future Fashions India Pvt. Ltd.
Lines of Business
The company is present across several lines of business which have various formats (stores) operational under it. These include:
Food – Food Bazaar, Chamosa, Spoon Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10 General Merchandise - Big Bazaar, Shoe Factory, Navras, Electronics Bazaar,
Furniture Bazaar Home & Electronics - Home Town, eZone, Collection 1 E-tailing (Online Shopping) - www.futurebazaar.com Books & Music - Depot Leisure & Entertainment - Bowling Co., F123 Wellness - Star & Sitara, Tulsi
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BIG BAZAAR
Big Bazaar is a hypermarket consists of extremely large self-service retail outlet with a warehouse appearance, currently with 75 outlets in India. It is owned by the Pantaloon Retail India Ltd, Future Group. It works on the same economy model as Wal-Mart and has considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore Biyani the CEO of Future Group. Currently Big Bazaar stores are located only in India. It is the biggest and the fastest growing chain of hypermarket stores and aims at being 350 stores by the end of year 2010.
Tag line-Is se sasta aur achha kahin nahi
Different categories-
1. Apparel, fashion and accessories2. Books and magazines3. Bike and automotive4. Camera and photo5. Desk top, lap top and accessories6. Furniture and decor7. Gift and credit card vouchers8. Health beauty and personal care9. Jewellory and watches10. Kitchen and home appliances11. Mobile and service provider12. Music and mp3 player13. Software cds and vcds14. Toys sports and video games15. Other miscellaneous items
Big Bazaar’s Commitment
Our commitment is to deliver sustained growth, through empowered people, acting with responsibility and building trust with customers. Here’s I am explaining what this means:
Sustained Growth is fundamental to motivating and measuring our success. Big Bazaar’s quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether today’s actions will contribute to our future. It is about growth of people and company performance. It prioritizes making a difference and getting things done.
Empowered People means we have the freedom to act and think in ways that you feel will get the job done, while being consistent with the processes that ensure proper governance and being mindful of the rest of the company’s needs.
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Responsibility and Trust form the foundation for healthy growth. It’s about earning the confidence that other people place in us as individuals and as a company. Our responsibility means we take personal and corporate ownership for all we do, to be good stewards of the resources entrusted to us. We build trust between ourselves and customers by talking not by mouth but by our superior customer service and being committed to succeeding together.
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Supply chain process -
As we know supply chain is the back bone of any industry. A supply chain consists of all parties involved directly or indirectly in fulfilling a customer request. The supply chain includes not only the manufacturer or supplier part but also transporter, ware house and customer part. In retail especially supply chain begins with the customer and his or her need for the product. In retail supply chain involved in receiving and filling a customer request.
As we know customer is an integral part of the supply chain.In fact the primary part of any supply chain is to satisfy customer needs and in precess generate profit for itselfThe term supply chain conjures u[ images of product or supply moving from to manufacturer to distributer to retailer to customer along a chain.This is certainly part of supply chain,but it is also important to visualize information,funds and products flows along both directions of this chain.
In reality a manufacturer may receive material from several supplier and then supply several distributers.A supply chain ,may includes a variety of stages;
1. Customer2. Retailer3. Wholesaler/distributer4. Manufacturer5. Component/raw material supplier
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SUPPLIER
MANUFACTURERTRANSPORT
RETAILER CUSTOMER
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Supply chain process- Supplier
Manufacturer
Distributor
Retailer
Customer
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Customer order cycle
Procurement cycle
Manufacturing cycle
Replenishment cycle
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Supply Chain Management
Supply Chain Management covers the planning and management of all activities involved in sourcing, procurement, conversion, logistics and Distribution. It also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.
Objective of every supply chain should be to maximize the overall value generated. The value a supply chain generates is the difference between what the final product is worth to the customer and the costs the supply chain incurs in filling the customer’s request.
Three macro processes in the supply chain of Big Bazaar-
In the Big Bazaar supply chain activities belong to one of three macro processes;
1. C.R.M.-All processes that focus on interface between the firm and its customersa. Marketb. Pricec. sell
2. I.S.C.M.-All processes those are internal to the firm.a. Strategic planningb. Demand planningc. Supply planningd. Fulfilmente. Field service
3. S.R.M.-All processes that focus on the interface between the firm and its suppliers.a. Sourceb. Negotiatec. Buyd. Design collaboratione. Supply collaboration
In the supply chain of any retailer the supplier does not play any role. Supply chain design, planning and operation decisions play a significant role in the success or failure of Big Bazaar. From its beginning, the Big Bazaar invested heavily in transportation and information infrastructure to facilitate the effective flow of goods and information. Big Bazaar designed its supply chain with clusters of stores around distribution centres to facilitate frequent replenishment at its retail stores in a cost effective manner. Frequent replenishment allows stores to match supply and demand more effectively than the competition.
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Supply chain of Big Bazaar
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Raising a purchase order to the vendor by the category (In head office and zonal office)
Delivery of the required (negotiated) stock to the store or ware house by the help of transporter (at company’s expense)
Receiving of the material at the store with all the required documents
Receiving of the material at the central ware house (C.D.C.) Indore
Weighing, counting of cartoons, generation of I.R. no. by putting information on SAP
Stamp on P.O.D. copy and return to the transporter
Document check by the security at the gate and in ward register is maintained by following all the rules of S.O.P.
Compare the material with the documents, stamp the documents, write information with signature of the security and then unload the truck
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Pre in- warding by scanning the material against the inbound no. by E.A.N. and article no.
Post in warding by generating G.R.N. of the in warded stock.
Segregation of the material (M.C. wise and category wise)
Racking of the material by giving location to the rack as well as to the box (for the maintenance of the W.M.S. sheet)
Out warding of the material from central ware house to the store, after receiving S.T.O. from the store.
Transfer of the material to the store ware house
Generation of the G.R.N. of the material after the scanning on S.A.P. as well as on REM against article no. or EAN
Maintain in ward register by putting all the required information
Send the stock to the flour as per the requirement
Send all the documents to the commercial office for the preparation of MIRO sheet (send to head office for payment purpose) and for the records
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1) Raising a purchase order to vendor-
Big Bazaar category maintains the flow of material from vendor to store or from vendor to ware house to store. Category does not receive any demand order from store or ware house. Actually category keeps the record of movement of flow of material from ware house to store & also per day & per week sale on the flour. On the basis of this data & also from market research, category estimates the demand of customer & makes purchase order to the vendor.
When we open a store we call different vendors then after negotiation with vendor on prices & other condition & schemes we provides them, vendor registration no. so purchase order is made against this vendor no.& then vendor give us information about no. of items presents in their manufacturing ware house for supply and we register those items by vender code.
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Posting of all the documents comes with the stock from vendor, as well as comes with S.T.N. to the commercial office for the payment purpose and record.
Receiving of the material at the store against S.T.N.
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Mapping
The process of determining locations and adjacencies of departments and merchandise inside a store.
2. Delivery of the required (negotiated) stock to the store or ware house by the help of transporter (at Big Bazaar expense)-
After receiving purchase order from the category, vendor delivers the material to the given location (store or ware house) by the help of transporter hired by the vendor (transportation at vendor’s expense) with the invoice copy and purchase order copy.
Document bring by the transporter with the stock are-
1. Consignee copy
2. P.O.D. copy
3. Purchase order
4. Invoice copy
5. A.S.N. copy
6. Quality check
7. Way bill (Out of state)
Conditions- 1.material should be according to the quantity given in the purchase order.
2. Delivery should be at time.
3. Vehicle should be sealed pack at the time of delivery.
Packing guidelines-
1. Net weight of the packet should not be more than 25 kg.2. BOPP tapes should be printed3. Packaging with stretched wrapping4. Packaging should be dry5. Label pasted on the packages should be clearly visible
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3. Receiving of the material at the Big Bazaar (Indore) store with all the required documents-
Category makes purchase order for the store directly in case of immediate requirement and local vendor. Especially in case of mobiles the material comes against invoice. Generally at store material is received against S.T.N. Material is received from vendor against invoice by following all the rules of S.O.P. Firstly gate keeper check all the documents necessary at the gate & compare the material with the invoice.
Paper check-
1. Receiving site2. Supplying site3. Invoice no.4. H.U. no.5. Material on paper6. Gate pass 7. Cartoon counting
Gate keeper sign & stamp the document (invoice copy and purchase order copy) .After that transfer the material to store ware house where G.R.N. of the material is done after scanning by the ware house person. This G.R.N. no. is written on the invoice copy with date and quantity .According to S.O.P., date of receiving has been written on the cartoon received by the ware house person .Scanning of the material is done against each EAN no. and article no. in REM as well as in SAP. An inward register is maintained by the ware house people as well as by the security guard to keep the record of the inward material. Then after counting of material, it is send to the store to sell. For the security purpose security tags stitched on the material. Different types of tags with sensor are punched on the items. Tags are punched on items having cost more than Rs.99
1. Hard tags-on cloths(Magnetic tags)2. String tag-on cloths3. Soft tags-especially on plastic, crockery, electronics etc.
All the material is designed on the Racks and
1. Gandola2. Gap table3. D- unit4. Four arms unit5. Eight arms unit6. Step table7. Bins8. Hyper bins9. Wall hanging
V.M. plays an important role in designing and visualization of the material on floor.
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What is visual merchandisation?
Visual merchandisation is briefly defined as presentation of a store and its merchandise in ways that will attract the attention of potential customers and motivates them to make purchase.
Purpose of visual merchandising-
1. Increase turnover
2. Image building
3. Influence buying behavior
4. Satisfy customers
Role of visual merchandising-
To put forward the best of merchandise highlight in terms of colour, quality, and price in the most aesthetically appealing way with 100% clarity.
To ensure that all the information is communicated in an informed, friendly and helpful and selling mode.
Arranged merchandise Easy to find Easy to pick
Aesthetically pleasing
Easy to buy
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4. Documents to commercial-
After the whole process in Big Bazaar (Indore) store ware house, the entire documents send to local commercial office for the payment purpose as well as for the record. Commercial people maintain a MIRO sheet and send this sheet to head office where category and commercial make cheque and send to local commercial and then commercial pay to the vendor only by cheque. Payment by the local commercial is done only in case of invoice.
5. Receiving of the material at the central ware house (C.D.C.) Indore –
Material is delivered (out ward) by vendor to the CDC Indore (central ware house) by the hired transporter with all the documentation. This time transporter is at the expense of vendor. Material is received by the central ware house C.D.C. Indore by follow all the rules of S.O.P. After that they do in warding of the material followed by racking, segregation & out ward the material to nearest located store(Big Bazaar Indore in this case) against S.T.O. In case of Big Bazaar (Indore) the stock comes from central ware house C.D.C. Indore (Dewas Naka).
Receiving of the material is done by the security in the ware house. First of all documents are matched with the material. L.R. no. on the consignee copy should match with L.R. no. on cartoons. Material is weighed by the security person at the receiving gate and actual weight is been written on the P.O.D. and consignee copy. This is for the reason that we pay to the vendor according to this actual weight. After that we fill all the information in SAP and generate inbound register no. and write this no. on inward register. Then security stamp on POD copy and return it to transporter. Then material is send inside for pre in warding, where scanning of the material is done.
Post in warding is the next step in which we do the G.R.N. of the material and forward this material for the segregation .After segregation all the material is designed on the racks.
6. out warding of the material from central ware house to the store, after receiving S.T.O. from the store-
Central ware house people outward the material after receiving S.T.O. from the Big Bazaar store. Ware house people generate the S.T.N. document and after packing of the material they stick new H.U. no. on
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the cartoons (on which information and description of the material is given) and load this material in the truck to deliver to the store. They send the copy of S.T.N. and gate pass with the material to the store.
7. Document sends to commercial-
All the documents received by the central ware house people should send to local commercial for the payment purpose as well as for the record before outing of the material.
No. of registers maintained in store ware house-Check list for Big Bazaar Indore-
1. Salable items-
1. Inward
2. Outward
3. Return to ware house
4. Return to vendor
5. Security inward
6. Security outward
7. Discrepancy register
8. Stock handover register
2. Non salable register-
1. Inward2. Outward3. Damage tags register4. Tags flow maintenance5. Tags requisition format6. Inward
3. SIS-
1. Inward2. Outward
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4. Damage-
1. Ware house damage2. Return to ware house
5. Others-
1. Returnable goods2. NSM requisition3. Free gift
Documents -
Invoice (bill)-
Invoice is the document send by the vendor with purchase order. Invoice consists of the details of the product and gives us the information about the material sended by the vendor and its rate and amount.
Invoice document consist of –
1. Site address2. Consignee3. Buyer4. Invoice no.5. delivery note6. Supplier reference7. Buyers order no.8. Destination9. Term of delivery mode/term of payment/date10. Description of goods11. Quantity12. Rate 13. Discount%14. Amount15. total
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Gate pass-
Gate pass is the document for the entry to the store. It consists of following things.
1. Gate pass no.2. Date3. Site name4. Delivery no. 5. Quantity6. Packages7. Total8. Vehicle no.
Gate pass consist of a stamp of Big Bazaar contains following
1. Security inward no. date2. No. of cartoons 3. Time4. Signature of security
S.T.N.-
S.T.N. is the document generate by the central ware house people when they outward the material to the store. They send this document with the material. It consists of the following things-
1. Delivery no.2. Delivery date3. Delivery note4. L.R. name5. L.R. date6. Party address7. Article description8. Article no.9. M.R.P.10. Cost11. Quantity12. Amount13. Total14. LST/VAT Tin no.
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S.T.N. consists of two stamps; one of in warding and second of out warding. And stamp consists of
1. Security inward no./outward no.2. Date 3. Quantity4. No. of cartoons5. P.O. no.6. G.R.N. date7. Vehicle no.8. Security name and signature
L.R. copy (consignee copy)-
This copy mainly consists of consignee no. and the instruction given on the back side of the document, other things mentioned over this document are
1. Delivery instructions2. S.T.(TIN NO.)3. Invoice no.4. Date5. Invoice value6. Delivery site7. Booking office address8. Weight of the material
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Vendor
S
S
S
S
s
Ss
s
S
S
Ware house
Ware house
Ware house
Ware house
s
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In the supply chain of Big Bazaar mapping of the vendor is done by negotiating on the price, quantity and quality. Vendor is provided with a vendor registration no. Category receives the data of demand of material and makes purchase order to the vendor. Category purchases the material always in bulk to reduce the cost price of the material. With the help of the diagram above I want to explain the whole scenario and role of central ware house in the supply chain.
For the storage of the material purchased by the category, they have two options. First they can make purchase order directly to the central ware houses from where they can deliver the material to the respective stores. Second they can store the material in the mother distribution centre or regional distribution centre (if the material is for a specific zone).And can deliver the material to the respective ware houses and from ware houses to the stores.
If we take the example of C.D.C. Indore, supplying stock to Big Bazaar Indore, Suppose category has purchase 1000 pre pack of the formal shirts for the Big Bazaar Indore. Then in this case category will make purchase order directly for the central ware house Indore. Transportation of the material is done at the company’s expense. Central ware house Indore will transfer the required stock of the shirts to store (especially 40% of the stock is transferred to the store; rest of the stock will be transfer at the next need).
But the real supply chain come in to play when category purchase the stock in bulk. In the above diagram vendor is supplying shirts to all the eleven big bazaar stores.Acoording to the negotiating terms category have purchase eleven thousand pre pack of shirts for all these registered stores in winter season. Then category will generate purchase order to the vendor for the four central ware houses supplying the stock to these eleven stores. These four central ware houses control the flow chain of the material for these eleven stores. These central ware houses will receive the stock and will transfer the required quantity to the stores. Rest of the quantity will be stored in these ware houses for the future immediate requirement. Material at the time of need is transferred to the store against S.T.O. These central ware houses control nearest stores to minimize the expenditure of transportation. Concept of ware housing is to fulfil immediate requirement and storage of the material.
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Three flows in Supply chain
A supply chain is dynamic and involved the constant flow of information, products and funds between different stages.
If we see in case of big bazaar provides the products as well as pricing and availability of information to the customer. The customer transfer funds to the big bazaar by purchasing the product present at the store.
Big bazaar conveys point of sales data as well as replenishment order to the ware house or category that make purchase order to the vendor who transfer the replenishment order via truck
(transporter) to the store. Big bazaar transfer funds to vender after the replenishment.Information is the driver that serves as nervous system to create a coordinated supply chain. It is life-line of SCM.Information must have the following characteristics to be useful:
1. Information should be accurate.
2. Information should be accessible in a timely manner.
3. Information must be of the right kind.
4. Information provides the basis for supply chain management decision like
a. Inventory Transportation
b. Facility
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Information
Product
Funds
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Transportation of material in Big bazaar-
Transportation at Big Bazaar expense Transportation at big bazaar expense
Transportation-
1. Transportation is movement of goods from one location to another.
2. Transportation is the main artery of logistics and supply chain management.
Transportation charges paid by the Big Bazaar to the transporter are 17500/month up to 1500 kilo meter. If the distance is more than this then 4.50Rs per kilo meter.
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Ware house 1
Ware house-2
S1
S2
S3
S4
Vendor
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Concept of ware housing in Big Bazaar-
Ware house is nothing but Company’s inventory for meeting immediate customer demand. Ware houses have a very vital in role in supply chain of retail. High degree of cost efficient working is essential for retail-chain distribution.
Old Concept of warehouse
1. To store products: finished products raw material.
2. To maintain original quality of store material
3. A static Unit to hold products till sold (Cost Centre)
New concept of ware house invented by Big Bazaar-
1. Providing Logistic service in a cost effective manner
2. Making product available at right time, at right place, in right quantity and quality at right cost
Functions of Warehousing in Big Bazaar-
Economic Functions
– Consolidation
– Break-Bulk
– Stockpiling
– Value-Added Services
Functions of Warehousing- stockpiling
• Seasonal Storage of Products
• Woolen Garments
• Helps in smooth availability of products
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Value added services means add different values to a single service to maximize the profit and reduce the transportation cost to minimum. In this type of ware housing we receive stock from a vendor and transport it to different nearest stores.
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Functions of Warehousing
Value-added services
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In this type of ware housing required ware house consolidate the material from different vendors and then transfer it to different stores. This format of ware housing is usually followed in Big Bazaar.
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Functions of Warehousing
Consolidation
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In this type of ware housing ware house receive material from a vendor but in bulk and then transfer it to different stores.
Operational Functions:
1. Receiving goods
2. Keeping records of Inventory
3. Store goods- appropriate place & min. area
4. Preserve quality- physical attributes
5. Proper handling- loading, Unloading, stacking
6. Order receiving- processing & filing
7. Dispatching goods
8. Preparing and releasing documents of transactions; keep records
9. Marketing intelligence- between co & Customers
10. Other legal functions related to trade
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Functions of Warehousing
Break-Bulk
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Purpose of any supply chain management team is to reduce the supply chain or to reduce the distance of transportation because as the distance increases the cost per unit of the load moved also increases. In this whole process two types of costs are there. First is the fixed cost that is the cost which we have already paid to the vendor and second is the variable cost that may vary from different reasons. But in the above curve this variable cost varies due to increase in distance travelled by vehicle.
Distribution of stores and ware houses is designed in such a way that transportation charges reduce to minimum.
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Material Handling Costs
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Three type of distribution centre in Big Bazaar supply chain-
1. M.D.C. (mother distribution centre) e.g.Tarapure ware house
2. R.D.C. (regional distribution centre) e.g.Hassan garh ware house
3. C.D.C. (centre distribution centre) e.g. Central ware house (Indore)
Central ware house (C.D.C. Indore)-
There are ten to twenty central ware house of Big Bazaar in India. C.D.C Indore Dewas naka consists of 70000 square feet area on rent. This ware house start from July23 2007 .These central ware houses are made at the central location of some specific stores. And these are multipurpose ware houses. For example C.D.C. Indore receives the stock from the vendor as well as from the other ware houses (seasonal stock) and transfer this stock to the next places where it is required in the supply chain. We have three sites for storing the material. These sites are made to recognise the place of a particular item. Central ware house Indore pays 3.50 Rs./ square feet rent of the ware house to the 3-PL Indo arya.
Site wise distribution of the material-
1. First site 8648 is consists of apparels(mens,womens and kids),general merchandising(home lenin,utensils,toys,stationary,autoacessories,luggage,plastic,footwear,depots)
2. Second site 8649 consists of winter wears apparels3. Site 6648 consists of home solution retail India Ltd.
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Site 8648- This site in central ware house Indore consists of 300000 units, out of which 160000 units are of G.M. section and 140000 units are of apparels.
1. G.M. (160000 units)-
1. Plastic-600002. Auto accessories,depot,stationary-50003. Luggage-100004. Utensils-200005. Foot wear-200006. Home wear-250007. Sports 100008. Toys-10000
Apparels (140000 units)-
1. Kids-650002. Mens-450003. Ladies-30000
Site 8649-
This site consists of 550000 units in all out of which 50000 units are of rain wear and umbrella.
1. Kids-2500002. Men’s- 1600003. Ladies-750004. Home wear-15000
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PRIL PRIL HSRIL
8649(winter wear season) 8648(G.M.&Apparels) 6648(ELECTRONICS)
31100 square feet 18000 square feet 20900square feet
In central ware house C.D.C. Indore we receive the material in three conditions
1. Against S.T.O.- Transfer from other ware house2. In voice-from vendor against purchase order3. R.S.T.O.-seasonal return from all over India
Process in central ware house start with the receiving of the material. Firstly we receive all the documents from the transporter. Documents are different against all above three cases. In case of invoice we weigh the boxes and count them also. We match the L.R. no. on box with the consignee copy. Then after filling all the information in SAP we create an inbound register no. and PT no. We stamp on P.O.D. copy and write the I.R. no., actual wt., Date, no. of boxes, signature of the security guards and return it to the transporter. In case if the boxes are open during receiving of the material then we write down the condition of box open on the transporter copy. We note down vehicle no. at the time of receiving also.
Discrepancy note-
Discrepancy note is made and mail to the category that look at it in case of damage and shortage of the material.(Vendor management team and category have the right to take action).Action is required under 48 hours.
In warding-
Next step is the pre in warding of the material in SAP as well as in ware house. In SAP we do scanning of the material against inbound no. and send the material for the segregation and documents for the post in warding by doing G.R.N. of the material.
Racking and segregation of the material-
Before designing the material on the racks we segregate the material firstly merchandise category wise and then article wise. The idea behind this is only to make easy picking of the material during outing
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of the material. We segregate same merchandise category and after that we segregate same article of the same merchandise category. And then we put all the material on the racks with the required information. We also make stock report.
Conversion-U.O.M.(unit of measurement)-
Pre pack-same colour, different article, different size
Pre pack is the smallest unit, in this case we have a pre pack of Dj&C shirts have same colour, different size, different article.
Combination-medium-1, large-2, XL-2, XXL-1
Bag-different colour, same article-
Bag is the mediocre unit between pre pack and cartoon. One bag may be of many pre packs. One bag has different colour but same article.
Cartoon-
Bigger unit of packing. One cartoon has many bag, many pre pack with same article.
W.M.S. (ware house management sheet)-
Ware house management sheet is formulated to keep the record of all the items present in the ware house and especially location of those items. When we receive a S.T.O. from a store then firstly we check the availability of the stock in store by the help of W.M.S. sheet. And then pickers pick the material from the location given by the W.M.S. sheet.W.M.S. Sheet is to make the work process easy.
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Out warding of the material-
Out warding occur only against S.T.O. We receive S.T.O. from different stores and then create delivery of that S.T.O. and create a pick list (Its a document).Then we create H.U. no.(cartoon no.) and issue the material by goods issued and give its print in form of S.T.N.
Scrap-
Scrap is the audit part. This is the material which is of no use at present and was of use earlier. We send this material to the registered vendor of scrap and vendor in return pay us by demand draft and we post this draft to head office.
Reverse logistics ware house-
The concept of reverse logistics ware house is implemented for damage stock. Four reverse logistics ware house are there in India for four different zones. If damage is done at the store or in ware house then it is send to reverse logistics ware house of that zone.
Cost monitoring or the expenditures of ware house-
1. Ware house rent2. Contract labour cost3. Future logistics manpower cost4. Security cost5. Utility cost6. Ware house packaging cost7. others
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Some terms in supply chain of Big Bazaar-
Balanced Scorecard
Balanced scorecard is a strategic, measurement-based management system, originated by Robert Kaplan and David Norton. It describes and explains what has to be measured in order to assess the effectiveness of strategies. In retail, by measuring operational efficiency, employee performance and customer satisfaction and financial performance, long term strategies can be linked to short term actions.
Barcode
A Barcode is an encoded set of lines and spaces of different widths that can be scanned and interpreted into numbers to identify a product. General Use: Scanning, identification
Bins
Bins are containers or fenced shelving for displaying merchandise.
Backdrop
A backdrop is a background for a display.
CPFR - Collaborative Planning, Forecasting and Replenishment
CPFR is the sharing of forecasts and related business information among business partners in the supply chain to enable automatic product replenishment. CPFR is designed to improve the flow of goods from the suppliers, to the retailers' shelves. It also is designed to quickly identify any discrepancies in the forecasts, inventory, and ordering data so that the problems can be corrected before they negatively impact sales or profits.
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CRM
Customer Relationship Management refers to the business strategies designed to optimize profitability and customer satisfaction.
When used to describe software, CRM applications are those that focus on relationships, rather than transactions.
COD
Cash-on-delivery is when the customer pays for merchandise when it is delivered, instead of upfront.
Catalogue Sales
A catalogue is a collection of items for sale, usually with descriptive details, arranged in an electronic listing or paper pamphlet or a book. Catalogue sales are used to facilitate product orders, either by a retailer from a vendor, or by a customer from a retailer.
The Category
The category is the basic unit of analysis for making merchandising decisions.
In general, a category is an assortment of items that a customer sees as reasonable substitutes for each other.
Men’s apparel and women’s apparel are categories. Categories have key similar characteristics.
Retailers and vendors might have different definitions of a category.
Category Management
Category management is the process of managing a retail business with the objective of maximizing the sale and profits of a category.
Category management helps building clear accountability, as one person is made accountable for success or failure of a category.
The second reason for using category management is that it is easier to manage and maximize profits.
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Cross-merchandising
This occurs when a retailer links the marketing of one product to the marketing of another. A simple example is the use of food displays at grocery stores. If a store wishes to promote the sales of cheeses, which carry an attractive profit margin, the store may locate items consumed with cheese nearby, e.g., crackers and breads, and may even display them directly together or offer samples.
Electronic Data Integration
An inventory delivery system where retailers and manufacturers / suppliers work together as partners. Also known as Quick Response.
Electronic Data Interchange / EDI
A system that enables retailers to integrate their purchasing activities with their stores and/or with vendors.
Electronic scanner
Equipment capable of "reading" barcodes.
Exchange policyWritten rules to follow when merchandise is returned or exchanged for other merchandise.
Fabric samples Small pieces of fabric. Also known as swatches.
Gift Certificates
Gift Certificates are paper certificate or card that can be redeemed for a specific value at a particular store. Gift Certificates are purchased by consumers to be given as gifts in place of a specific item.
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Gross Margin
Gross margin = Net sales – Cost of goods sold
Gross margin % = Gross Margin/ net sales
How to calculate margin
C.P.+VAT=L.P.+Margin=M.R.P.
CP*VAT%=L.P.
Or C.P.+4% of C.P.=L.P.
M.R.P.-L.P. =MARGIN
MARGIN/M.R.P.*100=MARGIN in %age
Hence;
M.R.P.-L.P./M.R.P.*100=MARGIN in %age
%Margin*M.R.P./100=M.R.P.-L.P.
LP=M.R.P.-(%Margin*M.R.P./100)
LP=M.R.P. (1-%Margin/100)
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Electronic Article Surveillance (EAS)
A proven loss prevention technique that protects assets and merchandise by utilizing security tags and labels and EAS detection equipment. EAS systems provide security for buildings, entrances, exits and enclosed areas by raising an alarm when items protected with an active tag or label pass through the detection equipment.
Impulse Goods
Impulse Goods are products generally purchased without prior planning. Impulse Goods can also be used to describe products placed for impulse purchasing at the check-out areas of the store.
Kiosk
A kiosk is a small leased area, booth, or cart inside a store or mall.
Loss Prevention
Loss prevention is stopping or reducing loss from shoplifting, employee theft, paperwork errors and poor safety procedures. Guarding and securing the assets of a company.
MannequinsStylized plastic, wood, fibreglass, plaster, metal, or glass representations of human form used for displays.
Markdown
A reduction in selling price.
Market segmentationThe process of dividing the total market into smaller sections based on shared characteristics.
Marking Marking merchandise with a price before placing it on display on the sales floor.
Mark-up The difference between the selling price and the cost of an item.
Merchandising (As a process)
Merchandising is an entire set of economic activities, extending from an initial product idea to a finished product on display in a store. Merchandising is the process of bringing products successfully to market, especially in retail settings. The merchandising function requires coordination of many areas of a business, including marketing, procurement, accounting, production, and warehousing/distribution.
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Sales per square foot of selling space
Net sales divided by the square feet of selling space.
Same-Store Sales Same-Store Sales are sales revenue generated only by those stores that have been open more than a year and have historical data to compare this year's sales to the same time-frame last year. By measuring the sales increase or decrease in the stores that have a history (open a year or more) the industry can get a better feel for how it is really performing, because this measure -- Same-Store Sales -- takes store closings and chain expansions out of the mix.
Salvage goodsMerchandise that has been damaged in transit or storage
Seasonal merchandiseProducts that are in demand at a certain time of the year, such as Diwali or Back-to-School.
Stock Keeping Unit (SKU)
A SKU is the smallest unit available for keeping inventory control.
In apparel, a SKU usually means size, colour, and style.
e.g. Boys size 32, stone washed blue, comfort fit Levi’s is one SKU.
e.g. Surf Excel in I kg, 500 gms and 250 gms is three SKUs
Variety
Variety is the number of different merchandising categories within a store.
Stores with a large variety are said to have a good breadth.
E.g. Levi’s Stores have a limited variety - Jeans and related apparel and accessories.
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Assortment
Assortment is the number of SKUs within a category.
Stores with a large assortment are said to have a good depth. The terms assortment and depth are used interchangeably.
e.g. Levi’s Stores carry a large assortment of Jeans and accessories.
Product Availability
Is defined as the percentage of demand for a particular SKU that is satisfied.
Also referred to as the level of support or service level.
SignageSigns, labels, shelf tags, and other identification signs within the store to provide directions, prices, or information to customers on merchandise or policies.
Stock turnoverA measure for determining how quickly merchandise is being sold.
Supply Chain Management
Supply Chain Management covers the planning and management of all activities involved in sourcing, procurement, conversion, logistics and distribution. It also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.
Trading up Selling where the salesperson persuades the customer to buy a more expensive item or a larger quantity than originally intended.
UPC
The Universal Product Code is a standard for encoding a set of lines and spaces that can be scanned and interpreted into numbers to identify a product. General Use: Scanning, item level
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inventory and identification. UPC-A is the most common barcode used in retail product marking in North America.
Warranty
A warranty is a written guarantee of a manufacturer's or retailer's responsibility. A warranty helps consumers feel confident about the products they purchase.
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Research objective
‘To analyze/compare the buying preference of customers towards three main players in retail i.e. Big Bazaar, Reliance fresh and vishal mega mart’.
I have done survey by questionnaires on consumers/customers in spite of the vendor simply because of the reason that more or less a supply chain depends on the customer need. Category should be aware with the need and preference of the customers. This survey helps me a lot to know about the different parameters proffered by the customers before entering a retail outlet. So flow of the supply chain is depends upon the customer purchase that in terms depends upon the parameters fulfilled by the retail outlet. Because as we know customer is the king of any retail outlet.
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Research design A research design is a frame work or blue print for conducting the business research project. It details the procedures necessary for obtaining the information needed to structure and solve business research problem. In this project we have conducted exploratory and descriptive research to ‘To analyze/compare the buying preference of customers towards three main players in retail i.e. Big Bazaar, Reliance fresh and vishal mega mart’.
Exploratory Research:
It is a type of research which has its primary objective the provision of insight into and comprehension of the problem situation confronting the researcher. We have done secondary research as the part of Exploratory Research.
Descriptive research
A type of conclusive research that has its major objective to describe something, usually business characteristics or functions. Major methods employed in descriptive research are survey and observation of that we have used survey using questionnaires.
Sample
A sub group of the elements of the population selected for participation in the study. Sample characteristics called statistics are then used to make inferences about the population parameters. We have chosen sample of people out side the retail outlets in three different locations of the Indore.
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Sampling design process-
Define the target population- The collection of elements or objects that possesses the information sought by the research and about which inferences are to be made. So our target population are people ready to buy monthly needed items from the retail outlet according to there preference of parameters.
Sampling technique- Convenient sampling
Convenient Sampling: A type of non-probability sampling technique that attempts to obtain a sample of convenient elements. The selection of sampling unit is left primarily to the interviewer.
Sample size
We have taken sample of 100 Respondents out side the retail outlets ready to buy form there..
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ANALYSIS Results-
1. Age of the customers?
15-2521%
26-4548%
46-6031%
%age
By survey on customers by the help of questionnaires we have found that 48% of the respondents fall between 26-45 years age while 31% of the consumers fall between the age of 46-60 and remaining 21% respondents fall under the age of 15-25.
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2. Annual income of the respondents?
<1.8 lakh22%
1.8-4 lakh44%
> 4lakh33%
No. of Respondents
22% of the respondents have their annual income of less than 1.8 lakh , 45% of the respondents have their annual income of 1.8 lakh to 4 lakh. These are the young and middle aged people having effect of the globalization and are working in the cities. They always like to spend their income in retail outlets in spite of kirana shops or unorganized market. and 33% of the respondents have their annual income of more than 4 lakh.These people have less percentage on the graph may be because of the reason that these people purchase from this format of the retail for only food items and in case of other items they are more brand conscious.
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3. How much part of average monthly income spends in retail outlet?
<3000 3000 5000 >50000
5
10
15
20
25
30
35
40
45
respondColumn1Column2Ax
is Ti
tle
In the above chart by the horizontal axis i have shown four different ranges of average monthly income people spend in a retail outlet. By the help of chart i came to know that 30% people spent less than 3000,40% people spent 3000,20% people spent 5000 and 10% people spent more than 5000.
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4. Rank the Big Bazaar on the basis of following parameters?
1. Low price>loyalty >brand>availability>customer service>Quality2. low price> Availability>customer service>quality>loyalty>brand3. Low price>availability>quality>brand >loyalty>customer service
1 2 30
10
20
30
40
50
60
70
Chart Title
respondColumn2Column3
I offer three different sequences of parameters to the respondents for the selection of Big Bazaar sequence. Means what they have seen in big bazaar? What they like in big bazaar? And what they want to see?
Here I found that 58% of respondents prefer second sequence of the above given sequences while 35% prefer third sequence and 7% of respondents prefer first sequence. By the help of chart i came to know that people have seen the strength of big bazaar in following order
Low price (offer)>availability of the product under a single roof>good customer service>quality>loyalty>brand
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5. Widely accepted sequence of the following parameters for Big Bazaar by distributing the marks by respondents?
low price availabilty C.S. Quality loyalty Brand0
5
10
15
20
25
30
35
40
Marks
Marks
By giving marks to different parameters according to the preference of respondents i came to know that most of the respondents prefer low price as the first criteria to enter in Big Bazaar with 35 marks, product availability as the second factor with 25 marks, customer service as third criteria, quality as fourth criteria and lastly brand and loyalty.
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6. Widely accepted sequence of the following parameters for the Vishal Mega Mart by distributing the marks by respondents?
low price availability quality brand loyalty C.S.0
5
10
15
20
25
30
35
marksSeries 2Series 3
If we see Vishal Mega Mart provides low price to the customers becomes the first criteria to enter in the store with 30 marks, availability of the product becomes the second criteria with 25 marks, and quality and brand with the same marks become the next criteria then loyalty and customer service. One big difference that i have seen between these two retail players is that vishal mega mart doesn’t focus on the customer service as much as Big Bazaar. That may be the negative point for the Vishal mega mart.
7. Widely accepted sequence of the following parameters of Reliance fresh by distributing the marks by respondents?
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low price loyalty brand availability C.S. quality0
5
10
15
20
25
30
35
40
marksSeries 2Column1
Although Reliance fresh is total different segment of the market in comparison to Big Bazaar and Vishal Mega Mart. Here first criteria for most of the customers to enter in the store are same as that of above two retailers. But here customers concerned with the loyalty and brand name of the company that we doesn’t have seen in above two co. They are not bothered about the customer service and quality of the store. At some extent they may be concerned with the availability of the product. So distribution of the marks is as given above in the chart.
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8. Rank the following parameters in the decreasing order on the basis of your preference for a retail outlet.
1. Low price>loyalty >brand>availability>customer service>Quality2. Low price> Availability>customer service>quality>loyalty>brand3. Low price>availability>quality>brand >loyalty>customer service
availability25%
low price30%
C.S.20%
QUALITY15%
LOYALTY5%
BRAND5%
MARKS
Here by the help of this response from the respondent I came to know that what a customer expect from a retailer? When I distribute marks of the respondents for the specific parameters in pie chart then I came to know that customer prefer the same sequence of parameters as Big Bazaar gave us. Although level of preference for the different parameters may be different but the sequence of parameters is same.
In the pie chart above customer prefer low price as the first criteria to enter in the retail store, availability as the second criteria, respondents also give me a hint that consumers also expect good customer service. Then they focus on quality and other parameters.
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Findings-
On the basis of analysis of questionnaires it was found that a large part of customers in the retail outlets is youth and middle aged people working in cities in companies. These people are affected by the storm of globalisation. These people becoming westernize day by day. Big part of the customers is getting income between 1.8-4 lakh.These people are more aware about the fashion technology and spend nearly 3000 rupees in these retail outlets at monthly basis. Due to busy schedule of the big cities these people prefer to buy monthly need products under a single roof with good offers.
So price and availability becomes the most preferred criteria for the customers to enter in to a retail outlet. In today’s life every body want to live with dignity and expect some respect. So customer respect in terms of customer service becomes the next criteria to be preferred by the customers.
Customer also need valve for money in terms of quality of the product. If somebody is purchasing from retail outlet then he/she expect that product should be of good quality.
Due to brand name of the company customer also expect loyalty from the store and brand product also but not most.
So if we analyze the response from the pie charts then we came to know that Big Bazaar is fulfilling the customer’s needs in a controlled and organised way. Big Bazaar is providing the same sequence of parameters as per the expectation of customers. So big bazaar is leading in the hypermarket format of the retail outlets in India.
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Objective-
To analyze/compare the buying preference of customers towards three main players in retail i.e. Big Bazaar, Reliance fresh and vishal mega mart.
Dear Respondent,
Kindly helps us by filling the following questioner meant for survey purposes. We assure that the information provided by you will be strictly kept confidential and will not we shared any other under circumstance
1 Name:
2 Age:
3 Genders: M/F
4 Occupation:
5 Annual income
(a) <1.8lakh
(b) 1.8 to 4lakh
(c) more than 4lakh.
6 Do you prefer to buy daily need products from retail outlets?
(a)Yes
(b) Sometimes
(c) If offer is there
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7 How much part of your average monthly income do you spend in retail outlet?
(a) 3000
(b) 5000
(c) More than 5000
(d) Less than 3000
8 Do you buy from a selected store every time or do you keep on shifting stores?
(a) Shop from only one store (b) Shop from few selected store(c) Some times shift(d) Keep on shifting
9 While you go for the purchasing, you should compare the weekly or Big day offer of these retail outlet with each other.
a) Strongly agreeb) Agreec) Neutrald) Disagreee) Strongly disagree
10 Do you prefer to buy food items or others from the same store?
(a) Yes (b)No(c) Mostly(d)According to the offer/scheme
11 Rank the Big Bazaar on the basis of following parameters.
1. Price (offers) 2. Quality 3.Brand 4. Availability 5.Customer service 6.Loyalty1. Low price>loyalty >brand>availability>customer service>Quality
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2. low price> Availability>customer service>quality>loyalty>brand3. Low price>availability>quality>brand >loyalty>customer service
12 Give the distribution of marks for the following parameters of Big Bazaar.
1. Low price 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
2. Loyalty 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
3. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
4Availability 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
5. Customer 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100 Service
6. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
13 Rank the Vishal Mega Mart on the basis of following parameters.
1. Price (offers) 2. Quality 3.Brand 4. Availability 5.Customer service 6.Loyalty1. Low price>loyalty >brand>availability>customer service>Quality2. Low price> Availability>customer service>quality>loyalty>brand3. Low price>availability>quality>brand >loyalty>customer service
14 Give the distribution of marks for the following parameters of Vishal Mega Mart.
1. Low price 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
2. Loyalty 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
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3. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
4Availability 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
5. Customer 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100 Service
6. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
15 Rank the Reliance on the basis of following parameters.
1. Price (offers) 2. Quality 3.Brand 4. Availability 5.Customer service 6.Loyalty1. Low price>loyalty >brand>availability>customer service>Quality2. Low price> Availability>customer service>quality>loyalty>brand3. Low price>availability>quality>brand >loyalty>customer service
16 Give the distribution of marks for the following parameters of Reliance fresh.
1. Low price 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
2. Loyalty 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
3. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
4Availability 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
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5. Customer 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100 Service
6. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
17 Rank the following parameters in the decreasing order on the basis of your preference for a retail outlet.
1. Low price>loyalty >brand>availability>customer service>Quality2. Low price> Availability>customer service>quality>loyalty>brand3. Low price>availability>quality>brand >loyalty>customer service
Bibliography:
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