consumer perception towards retailing @ big bazaar
TRANSCRIPT
“A STUDY ON CONSUMER PERCEPTION TOWARDS
RETAILING WITH SPECIAL REFERENCE TO BIG BAZAAR”
VIJAYAWADA.
A Project Report Submitted
To
Acharya Nagarjuna University in Partial Fulfillment of the Requirements for the award of degree of
“MASTER OF BUSINESS ADMINISTRATION”
Submitted byG.RAVI
H.T.NO:Y9BU09038
UNDER THE GUIDENCE OF
Prof. L. ANURADHAM.B.A, Ph.D.
DEPARTMENT OF BUSINESS ADMINISTRATIONP.B. SIDHARTHA COLLEGE OF ARTS & SCIENCE, P.G CENTER
(Affiliated to Acharya Nagarjuna University)VIJAYAWADA
(2008-2010)
Post Graduate Center
Department of Commerce and Business AdministrationP.B.SIDDHARTHA COLLEGE OF ARTS AND SCIENCE
VIJAYAWADA
CERTIFICATE
This is to certify that the Project Work entitled “A STUDY ON
CONSUMER PERCEPTION TOWARDS RETAILING WITH
SPECIAL REFERENCE TO BIG BAZAAR, at Vijayawada” is a
bonafied work of G. RAVI, submitted in partial fulfillment of the
requirement for the award of the Masters Degree in Business Administration
by Acharya Nagarjuna University.
PROF. RAJESH C JAMPALA. PROF. L. ANURADHA.
HEAD OF THE DEPARTMENT PROJECT GUIDE
DECLARATION
I here by declare that the project entitled, “A STUDY ON
CONSUMER PERCEPTION TOWARDS RETAILING WITH
SPECIAL REFERENCE TO BIG BAZAAR, at Vijayawada” an original
and independent work done by me and has been submitted to the
Department of Business Administration, P.B. Sidhartha College of Arts &
Science, Vijayawada, Acharya Nagarjuna University, in partial fulfillment
for the award of the degree of “MASTER OF BUSINESS
ADMINISTRATION”.
This report has not been submitted else where for the award of any
other degree or diploma.
Place : Vijayawada
Date :
G. RAVI
(Regd No.Y9BU09038)
ACKNOWLEDGEMENT
The completion of this project makes me to recall with gratitude
several persons who have extended their cooperation in one way or the other
in this venture.
I am very thankful to the management of P.B. Siddhartha College of
Arts And Science and Professor Rajesh C Jampala, Director M.B.A for
permitting me to pursue my project in “BIG BAZAAR, Vijayawada”.
I am indebted to Mr. M.C. Ramu, Assistant Store Manager of “Big
Bazaar”, Vijayawada for allowing me to undertake my Marketing project
work in there esteemed organization.
I express my sincere thanks to Professor. L. Anuradha, Department of
Commerce &Business Administration for sparing her valuable time to give
the useful guidance during completion of this project.
I wish to express my thanks to all the faculty members of department
of MBA for their suggestions in bringing out my project in most successful
manner.
Finally, I thank my friends and family for their support directly and
indirectly in completing this project work.
G. RAVI
CONTENTSPG: NO
CHAPTER-1 DESIGN OF THE STUDY 1 - 23
ÿ INTRODUCTION
ÿ THEORETICAL FRAMEWORK
ÿ OBJECTIVES OF THE STUDY
ÿ RESEARCH METHODOLOGY
ÿ LIMITATIONS OF THE STUDY
CHAPTER-2 INDUSTRY PROFILE 24 - 36
ÿ INTRODUCTION TO RETAILING
ÿ RETAILING IN GLOBAL SCENARIO
CHAPTER-3 ORGANIZATION PROFILE 37 - 53
ÿ FUTURE GROUP
ÿ PANTALOON RETAIL (INDIA) LIMITED
CHAPTER-4 DATA ANALYSIS AND INTERPRETATION 54 - 83
CHAPTER-5 FINDINGS AND SUGGESTIONS 84 - 86
BIBLIOGRAPHY
APPENDIX
1
CHAPTER – I
DESIGN OF THE STUDY
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SCOPE OF THE STUDY
The scope of the study is to understand the concept of Big Bazaar
and how to thrive in retail sector. To understand the consumer attitude and
buying behavior at Big Bazaar store, an extensive questionnaire is prepared
to understand the buying behavior of consumers and conducted a market
survey. A five point scale analysis is done on the 120 respondents from
Vijayawada to identify how much of buying intention is due to attributes and
how much due to influence by referrals.
The analysis has revealed that the consumer is satisfied with Big
Bazaar and its attributes. However Big Bazaar has not performed well with
the customers who are slightly price sensitive. A marketing plan is suggested
for Big Bazaar along with other suggestions to face the competition in the
near future and the long run. Thus a detailed analysis is presented in the
project.
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INTRODUCTION
In today’s world marketing is all about ‘perception building’.
Marketers definitely need to understand why people reach out for a
particular product or a service.
As a marketer, today your primary job is not to look at what your
product has to be offer but rather what is it that will motivate your target
audience to buy your product.
Today many companies are moving beyond the marketing concept to
customer concepts, it is called ‘Ideal Approach’, where as companies
practicing the marketing concepts work at the level of customer segments, a
growing number of today’s companies are now shaping separate offer,
survives and messages to individual customers. These companies collect
information on each customers part transaction, demographics,
psychographics and media and distribution preferences.
Marketing today is a dynamic field and its parameters the entire
economic structure. The fundamental strategies of the business are
conceived and accomplished on the basis of market needs, forces and
opportunities.
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1. The Sales Approach: During the manufacturing era, producers
dictated terms customers had to buy what ever was produced.
2. The Marketing Approach: Information age ‘customer is the king’ what
…..is needed, should be produced and sold.
3. The Ideal Approach: In this present ideal approach is a combined
approach of selling and marketing concepts, which takes care of both
customer and organizational needs.
Now consumer has become the kingmaker. If he does not accepts/
approves than the organization absconds from the scene.
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RETAIL BRAND BUILDING PROCESS:
The above diagram shows the retail brand building process. In long
run consumer loyalty and good will should play an important role, to meet
the customer expectations as well as In short run, consumer experience and
excitement should play an important role, to meet the customer expectations
but, build a successful retail brand it must be need to meet, both short and
long run customer expectations. Developing innovative strategies is most
important in building a successful retail brand.
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CONSUMER RESEARCH
Consumer research provides the basis for the development of new
product and service concepts to meet targeted consumer needs. It is used to
identify both felt and unfelt (latent) needs, to learn how consumers perceive
products and brands and store, and how and why they make their
consumption decisions. It also enables the marketer to build consumer
“meaning” into the product or service by discovering which attributes are
most important to the target market and integrating them into the product or
service design.
CONSUMER BEHAVIOUR
We are consumers. What we buy? Why we buy? Where and when we
buy depends on our socio cultural and psychographic factors. The consumer
behavior enables the marketers to know how consumers make decisions to
spend their available resources (time, money, efforts) on products and
services.
Our society is a “study in diversity”. We see diversity among
consumers, among marketers, among customers, among nations, even
among consumer behavior theoretical perspectives. However, despite
prevailing diversity in our society, there also are many similarities.
Segmenting target audiences on the basis of such similarities makes it
possible for marketers to design marketing strategies with which consumers
will identify.
The study of consumer behavior enables marketers to understand and
predict consumer behavior in the market place; it also promotes
understanding of the role that consumption plays in the lives of individuals.
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CONSUMER PERCEPTION
Perception can be described as “how we see the world around us.”
As diverse individuals, we all tend to see the world in our own special ways.
Four people can view the same event at the same time, and each will report
in total honesty a story different from all the others. For each individual,
reality is a totally personal phenomenon, based on that person’s needs,
wants, values, and personal experiences.
IMPORTENCE OF CONSUMER PERCEPTION
Consumers’ perceptions are much more important than their
knowledge of objective reality. For if one thinks about it, it’s not what
actually is so, but what consumers think is so, that affects their actions, their
buying habits, their leisure habits, and so forth. And, because individuals
make decisions and take actions based on what they perceive to be reality, it
is important that marketers understand the whole notion of perception and its
related concepts, so they can more readily determine what factors influence
consumers to buy.
In retail marketing consumer perception has never been more important.
Retailers need to understand how they their shoppers perception in order to
enhance their appeal and increase customer loyalty
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THEORETICAL FRAMEWORK
The major objective of any organization is to maximize the profit by
increasing the sales volume .But in today’s context marketers have a
different objective before them, i.e., their thinking should be shifted to
consumer orientation, which requires the organization to define the
customer’s needs from the consumers point of view and make efforts to
satisfy such needs and wants.
A study of consumer’s behavior helps the marketers to know how the
individual, groups or organizations select, buy, use and dispose of goods,
services or ideas. It also helps the markers to assess and analyze the options,
beliefs and attitudes of the consumers, so that they can change their
marketing strategies accordingly.
According to Courtland l.bovee, Michael J.Houston & John v.thill, the
consumer behavior has been classified in to two major sections
I. Consumer behavior & II. Consumer buying behavior
1. Consumer behavior: It is selecting, seeking, purchasing, using and
disposing of goods and service
2. Consumer buying behavior: It deciding what goods or services to buy
and then obtaining them.
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1. CONSUMER BEHAVIOR
The term “consumer behavior” refers to the behavior that
consumers display in searching for purchasing; using, evaluating and
disposing of products and services that they expect in satisfy their needs. It
includes the study of what they buy it, how often they buy it and how often
they use it. A thorough knowledge of the consumer and understanding of
their behavior are essential to continue to remain in business. Consumers
purchasing decisions are influenced by many internal and external
environment variables. A study of the impact of these variables on
consumer’s decision-making process helps a lot to the organization.
MAJOR INFLUENCES ON CONSUMER BEHAVIOR
Factors influencing the buying behavior can be broadly classified as:
1. Cultural factors
2. Social factors
3. Personal factors
4. Psychological factors
CULTURAL FACTORS
The role played by culture, sub-culture of the buyer and the social
class to which he belongs is important.
Culture
Culture is defined as*”the most fundamental determinant of a persons
wants and behavior”. the complex ,sum of total knowledge , beliefs,
traditions, customs, art, morals, law and habit acquired by the people as a
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member of society. Many of the actions and behavior of customers stem
from cultural background.
Marketers who incorporate an understanding of culture into their
marketing strategies are likely to satisfy consumers more fully by providing
with the added product benefits.
Sub-Culture
Sub-culture provides more specific identification and socialization of
its members. It includes nationality, religion, racial groups etc
Many sub-cultures make up important market segments and
marketers often design products and marketing programs tailored to meet
these needs.
Social Class
Social class is a group consisting of a number of people who share
more or less equal positions in a society. With in a class, people tend to
share same values, beliefs and exhibit similar patterns of behavior and
consumption. Social classes may be defined by parameters such as income,
occupation, education etc.
Social Factors
A consumer behavior is influenced by social factors such as reference
groups, roles and status.
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Reference groups
Reference groups consist of all groups that have a direct or in
director influence on the person’s attitudes or behavior. People are
significantly influenced by these reference groups. Reference groups expose
these to new behavior and life styles and influence their attitudes and self
concept.
Marketers where the group influence is strong must determine how
to reach and influence the ‘opinion leader’, who offers advice or information
about specific product or product category.
Family:
The family is the most important consumer buying organization
society, which can be defined as a primary group .With in a family many
decisions are made jointly with various members existing different degree of
influence. The changing structure of a family system from joint family
system to nuclear families also influences the consumer behavior.
Marketers need to determine which member normally has the great
influence in choosing various products.
Rolling status
A person participates in many groups through out the life. The
person’s position in each group can be defined in terms of role and status. A
‘role’ consists of the activities that a person is expected to perform. Each
‘role’ carries a ‘status’
Marketers must be aware of the ‘status symbol’, Potential of
products and brands.
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Personal Factors:
Buyer’s decisions are also influenced by personal characteristics
like age, occupation, lifestyle, economic circumstance, personality and self-
concept, which has been, defined a personal factors. Also the personal
factors rely on the psychological life cycle stages, adult experience certain
“passages” or “transformation” as they go through life. Hence, marketer
play close attentions to change life circumstance like divorce, widow hood
and they effect on consumer behavior.
Age and Life Cycle:
People buy different goods and services over their life time and at
different stages of their life cycles.
Marketers often choose life –cycle groups at their target markets.
Occupation
A person’s occupation also influences his/her consumption pattern.
Marketers try to identify the occupational groups that have above –average
interest in their product and services a company can even specialize its
products in certain occupational groups.
Economic Circumstances
Consumer’s economic circumstance like spend able income,
savings, debits, borrowing power and attitude towards spending and savings
have a great effect on product choice.
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Life Style
People coming from the same sub-culture, social class and
occupation may lead quite different life styles. Marketers search for relation
ships between the product and their life style groups.
Personality and Self –concept:
Personality is the sum total of the unique individual characteristics
that make a person what he is .Self -concept of self -image is the way one
perceives one self in a social frame work. The consumer always tends to buy
only those products and services, which he think fit or match with his
personality. Marketers try to develop brand images that match the target
market’s personality and self -image.
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PSYCHOLOGICAL FACTORS
Each person’s actions and choices are influenced by a variety of
internal forces. Psychological influences include a person’s needs and
motives, involvement with a decision, perceptions, lending experience,
attitudes and personal characteristics. Such psychological influences affect
all behaviors including consumer behavior. Among all these concepts,
motivation is the key factor influencing consumer behavior.
Motivation
All consumers with in given society have the same alternatives to
choose from and yet no two consumers may exhibit identical consumer
behavior. The reason is that each one is a unique individual with unique set
of needs, desires and motivation. A motivation may be physiological as well
as psychological in nature. Every one has both physiological and
psychological motivation, but each fulfills them in different ways. The
reasons for adopting different methods of satisfaction of motivation are
because of the different level of personal involvement in various activities.
Self Actualization
Esteem Needs
Social Needs
Safety Needs
Physical Needs
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Perception
Perception is defined as the process by which an individual selects,
organizes and interprets stimuli into a meaningful and coherent picture of
the world. A stimulus is any unit of input to any of the senses. Examples of
stimuli (i.e.., sensory input) include products, packages, brand names and
advertisements sensory receptors are the human organ (i.e.., the eyes, ears,
nose, mouth and skin) that receives sensory inputs. Their sensory functions
are to see, hear, smell, taste and feel.
All of these functions are called into play either singly or in
combination in the evaluation and use of most consumer products. The study
of perception is largely the study of what we subconsciously add to or
subtract from raw sensory inputs to produce our own private picture of the
world.
Learning:
Learning involves changes in an individual’s behavior arising from
experienced. Learning is produced through the interplay of the drives,
stimuli, motivational cues responses and reinforcement.
Learning theory teaches marketers that they could build up demand
of the product by associating it with the strong drives, using motivation cues
and providing positive reinforcement.
Beliefs and Attitudes
Through doing and learning, people acquire beliefs and attitudes and
these in turn influence the buying behavior. a ‘belief’ is a descriptive
thought that a person hold a about some thing. An ‘attitude’ is the learned
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pre disposition towards objects, people and events.
Beliefs and Attitudes are very difficult to change. Thus, it is advisable to the
marketers to fit its product in to existing attitudes rather to try to change
them.
2. CONSUMER BUYING BEHAVIOR
There are a number of influences affecting the purchase. So the
purchase action visible may be the result of an inter-play of a number of
complex and hidden variables, which may have an influenced on the
ultimate purchase activity. The final purchase is just one activity in the
entire services of physical and mental activities that may have occurred in
this whole process. Some of these activities may precede the purchase while
others may take place later. All these are considered as a part of buying
behavior. Depending on the nature of product or service the mental decision
process accompanying the physical act of purchase may vary from simply to
extremely complex and from being instantaneous in nature to time
consuming and elaborate.
So marketers have to go beyond the various influences on
buyers and develop an understanding of how consumers actually make their
buying decisions. Marketers have to observe not only the physical behavior
exhibited in the art of making a purchase, but also all the accompanying,
pending and following mental processes and activities of actual buying.
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STAGES OF BUYING DECISION PROCESS
As stated earlier, the buying process starts long before the
actual purchase and has consequences long afterwards. The buyer passes
through five stages. Problem recognition, information search, evaluation of
alternatives, purchase decision and post-purchase behavior. Consumers may
skip or reverse some stages with low-involvement. But their five-stage
model of buyer decision making process captures full range of consideration
incase of high involvement purchases.
Five stages in Consumer Buying Process
Problem recognition
The buying process starts when the buyer recognizes a problem or a
need. This problem or need can be triggered by internal or external stimuli.
Marketers need to identify the circumstances that trigger a particular
need and develop a marketing strategy that triggers the consumer interest.
Information search
An aroused consumer will be inclined to search for more information
.the major sources of information to which a consumer will turn are personal
sources like family, friends, neighbors etc.
Commercial sources like advertising, sales persons, dealers etc.,
Information Search
Evaluation of Alternatives
Purchase Decision
Post Purchase
Need Recognition
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Public sources like mass media, consumer-rating organization,
Experimental sources like handling, examining and using the product.
The relative amount and influences of these information sources
vary with the product category and the buyer’s characteristics. Each source
of information performs a different function in influencing the buying
decision.
Evaluation of Alternatives
Generally the consumer evaluation process is cognitively
based. That is the consumer makes product judgments on conscious and
rational basis. Consumer sees each product as a bundle of attributes, with
varying abilities of delivering benefits sought to satisfy the needs. The
consumer arrives at attitudes towards the various brands through an attribute
evaluation procedure.
Purchase Decision
In the evaluation stage the consumer forms preferences about
the brands and also may form an intention to buy the most preferred brand.
However two factors may intervene between the purchase intention and
purchase decision. The first fact is attitudes of others.
A buyer’s brand preference may increase if the person he/she likes to
prefer the same brand. The second factor is unanticipated situational factors
these may erupt to change the purchase intention.
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Thus, preference and purchase intention are not completely reliable
predicators of purchase behavior. In executing a purchase intention, the
consumer may make–up various sub-decisions like brand decisions quantity
decision, timing decision and payment method decision.
Post purchase behavior
The marketer job doe not end as and when the product is brought but
it continues in the post purchase period also. They have to monitor post
purchase satisfaction, post purchase action and post purchase use and
disposal.
The consumer’s satisfaction or dissatisfaction with the product will
influence the subsequent behavior. Post purchase satisfaction will increase
the probability of buying again whereas post purchase dissatisfaction may
make the consumer to abounded or return the product. Marketers must take
steps to avoid or minimize the post purchase dissatisfaction. Marketers
should also monitor how the buyers use disposes the product.
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OBJECTIVES OF THE STUDY
ÿ To understand the Brand loyalty of customers towards organized retail
stores.
ÿ Identify the parameters that play the most important role in a consumer’s
choice of buying.
ÿ To understand the psychology of customer behavior and the reactions of
the customers when they are approached.
ÿ To understand the consumer’s perception related to consumer interaction
(what makes them impressed and what annoys them).
ÿ To identify how much of buying intention is due to attributes and how
much due to influence by excitement.
ÿ To make necessary recommendations for improving market share.
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RESEARCH METHODOLOGY
Market research provides the information, which can be used to
identify and define marketing opportunities and problems. The following are
the major steps in the market research process.
Research Approach:
ProblemExploratory Research
Causes of the Problem
Descriptive Research
Causes of the Problem
Field Work
Data analysis and Interpretation
Report presentation
Problem Definition
Research Design
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METHOD OF DATA COLLECTION
The study is conducted in two phase’s viz., Phase one and Phase two.
Phase One -> Secondary Data
In the initial phase of the project focus is on secondary data
collection. It is collected through various sources, which are both external
and internal to the organization. The secondary data focused on
ÿ Trade journals, magazines and newspapers.
ÿ Reference books and company website.
ÿ Internet and Websites.
ÿ Manuals and Brochures.
ÿ Public records and historical documents
Phase Two -> Primary Data
Primary data is focused on firsthand information, which is collected
through questionnaire. Personal interview is conducted with the consumers
to elicit the information from them.
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Research Tactics:
The research instruments and techniques used are as follows.
a) Questionnaire:
The questionnaire consists of 15 questions and it was designed to capture
both quantitative and qualitative information. Which indicate various factors
that influence the consumer buying intention.
b) The theoretical population:
All people aged 16-80 in Vijayawada who have purchased at Big Bazaar
store.
c) Sample Size:
The next step after the survey is to decide upon the sample size, the
relevant sample size in this survey is 120.
d) Sample Unit:
The sample unit consists of who is to be chosen as target to
commence the survey. According to the survey done, all the area covered is
to be taken as the sample unit. It is not restricted to one area or single
individual but all to the business people all are taken in to account.
e) Sample Procedure:
To get a sample representative of the entire population a probability
sample of the population should be drawn. The sample of the store has been
taken into consideration in the Vijayawada area.
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LIMITATIONS:
ÿ The research was conducted in Vijayawada city and the respondents
were chosen who visit the store.
ÿ Due to the shortage of time the sample size has been limited to 120
people.
ÿ Respondent’s inability to give correct answers due to lack of
information, forgetfulness and unwillingness to give correct answers.
ÿ The project based on the interview methodology by a structured
questionnaire and the personal skills of the researcher also affect the
result.
ÿ The study has mainly focused on psychology of the people i.e., their
reactions which are flexible most of the times and such flexible nature
has to be considered which has not been clearly specified in the study.
ÿ The project has to be completed with the available data collected with
maximum effort.
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CHAPTER - II
INDUSTRY PROFILE
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INDUSTRY PROFILE
INTRODUCTION TO RETAILING:
The word retail is derived from the French word Retailer, which
means “to cut off a piece” or “to break bulk”.
According to Philip Kotler: “Retailing includes all activities involved
in selling goods or services to the final consumers for personal, non-business
use. A retailer or retail store is any business enterprise whose sales volume
comes primarily from retailing.”
Any organization selling to final consumers whether it is a
manufacturer, wholesaler- is doing retailing. It does not matter how the
goods or services are sold (by person, mail, telephone, vending machine or
internet or where they are sold- in a store, on the street or in the consumer’s
home.)
Retailing is the set of business activities that adds value to the
products and services sold t the consumers for their personal or family use.
Often people think of retiling only as the sale of products in stores. But
retailing also involves the sale of services and not all retailing is done in
stores.
Retailers attempt to satisfy consumer needs by having the right
merchandise, at the right price, at the right place, when the consumer wants
it. Retailer also provides markets for producers to sell their merchandise.
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Retailers are the final business in a distribution channel that links
manufacturers to consumers.
Functions Performed by Retailer
Although there are situations where it is easier and cheaper to buy
directly from manufacturers, retailers provide important functions that
increase the value of the products and services they sell to consumers and
facilitate the distribution of those products and services for those who
produce them.
These functions are-
a. Providing an assortment of products and services
b. Breaking bulk
c. Holding inventory
d. Providing services
Types of Retailers
1. Store retailer
2. Non Store retailer
3. Retail Organization
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1. Store retailer:
From the assortment point of view, Store retailers are of 6 types:
I) Specialty Store: Narrow product line with deep assortment, viz apparel
stores, book stores etc. A clothing store 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.
II) Departmental Store: Several product 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.
III) 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.
IV) 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.
V) Discount Store: 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.
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VI) 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)
2. Non Store retailer
Major non-store retailer types:
1. Direct Selling: It deals with door-to-door or at home sale parties i.e. it
involves one-to-one or one-to-many selling.
Example: Eureka Forbes, Amway, Mary Kay Cosmetics.
2. Automatic Vending: Example: ATM
3. Buying services: Is a store less retailer serving a specific clientele-usually
employees of large organizations-who are entitled to buy from a list of
retailers who have agreed to give them discounts in return for membership.
Example: Amazon.com
4. Direct marketing: It involves direct response marketing. The different
forms of direct marketing are: Direct mail, catalog marketing, telemarketing,
and television direct response marketing and electronic shopping.
Example: Dell Computers
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3. Retail Organization
Basing on ownership, the Retail Organization mainly falls into 4 major
categories:
1. Corporate chains: Example > Pantaloons, Westside
2. Retail Co-operative: Example > Amul, Samavaika, Khadi Gram
Yudog
3. Consumer Co-operative: Example > Apna Bazaar
4. Franchise Organization: Example > Monginis, Café Coffee day.
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Retailer Marketing Decisions
Retailers are always searching for new marketing strategies to attract and hold customers. Retailers must first define their target markets and then decide how they will position themselves in these markets.
Retailer marketing decisions:
Implementing the retail strategy
To implement a retail strategy, management develops a retail mix
that satisfies the needs of its target market better than its competitors. The
retail mix is the combination of factors retailers use to satisfy customers
needs and influence their purchase decisions.
Retailer strategy
Target market
Retail store
positioning
Retail marketing mix
Location
Merchandise assortment
Pricing
Quality
Advertising & promotion
Visual merchandising
Customer service
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INDUSTRY ANALYSIS
RETAIL IN GLOBAL SCENARIO:
Retailing in more developed countries is big business and better
organized than what it is in India. According to a report published by
McKinney & Co. along with the confederation of the Indian industry the
global retail business is worth $6.6 trillion. In the developed world, most of
it is accounted for by the organized retail sector. For instance, the organized
sector has up to 80% share of retail sales in the US. The corresponding
figure for Western Europe is 70% while it is 50% in Malaysia and Thailand.
The economy and lifestyle of the west is not in line with that of India and
hence the retailing scene in India has not evolved in the same format as the
west nor can we learn valuable lessons from their style of operations.
Discount retailer Wal-Mart has catapulted to the top of the Fortune 500
rankings in U.S. with a turnover of $ 258 billions (2003 revenues – the basis
for 2004 ranking); a ruthless policy of, ‘Always low prices. Always,’ has
brought Wal-Mart to the top. Retailers world wide have immensely
benefited from the sustained growth of the disposable income of their global
consumers.
The service sector accounts for a large share of GDP in most developed
economies. And the retail sector forms a very strong component of the
service sector. Hence, the employment opportunity offered by the industry is
immense.
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An analysis of the Indian Retail sector
1. An Overview of the Retail sector:
The Indian retail market, which is the fifth largest retail destination
globally, has been ranked the second most attractive emerging market for
investment after Vietnam in the retail sector by AT Kearney's seventh
annual Global Retail Development Index (GRDI), in 2008. The share of
retail trade in the country's gross domestic product (GDP) was between 8–10
per cent in 2007. It is currently around 12 per cent, and is likely to reach 22
per cent by 2010.
Modern retailing has entered India in form of sprawling malls and
huge complexes offering shopping, entertainment, leisure to the consumer as
the retailers experiment with a variety of formats, from discount stores to
supermarkets to hypermarkets to specialty chains. However, kiranas still
continue to score over modern formats primarily due to the convenience
factor.
Source: IT Retailing, 2007
33
Retailing in India is the largest employer after agriculture. It employs
almost 7% of the total work force in India. The Indian retail sector is highly
fragmented with 97% of its business being run by the unorganized retailers
like the traditional family run stores and corner stores. The size of Indian
organized retail industry was Rs 28000 crores, which was only 3% of the
total retailing market. Organized retailing is projected to grow at the rate of
25%-30% p.a. and is estimated to reach an astounding Rs 1, 00,000 crores
by 2010. The contribution of organized retail is expected to rise from 3% to
9% by the end of the decade.
Source: Ernst &Young, the Great Indian Retail Story, 2006.
The table gives the picture of comparative penetration beet win
organized and unorganized (Traditional) retailers in different countries.
Retailing, one of the largest sectors in the global economy, is going
through a transition phase in India. For a long time, the corner grocery store
was the only choice available to the consumer, especially in the urban areas.
This is slowly giving way to international formats of retailing.
34
Let us look at the evolution process:
Indian consumers are rapidly evolving and accepting modern formats
overwhelmingly. Retail Space is no more a constraint for growth. India is on
the radar of Global Retailers and suppliers / brands worldwide are willing to
partner with retailers here. Further, large Indian corporate groups like Tata,
Reliance, Raheja, ITC, Bombay Dyeing, Murugappa & Piramal Groups etc
and also foreign investors and private equity players are firming up plans to
identify investment opportunities in the Indian retail sector.
35
SIGNIFICANCE OF ORGANIZED RETAIL:
The reason why companies are so interested in organized retail is the
sheer size of the opportunity. Less than 3 per cent of the retail market is with
the organized sector.
In categories like food and groceries, the Unorganized sector has
three-fourths of the marker and organized retail penetration is just 1 percent,
according to a recent CII-AT Kearney report on the sector. Then there are
several categories- say, home improvement, home furnishings or toys- where
organized retail has almost no presence.
In case of organized retail, no fresh demand needs to be created; it
already exits .The only challenge is to pull consumers away from kirana
stores, or road-side hawkers or neighborhood markets into cleaner and better
laid out shopping environment.
Indeed, when an organized retailer goes down, it’s not because there
was no demand; it’s usually because the retailer wasn’t efficient enough to
give consumers a better value proposition.
36
DRIVERS OF RETAIL IN INDIA:
ÿ The first driver is a self-sustaining buoyant Indian economy that is
growing at eight per cent a year.
ÿ The second is that as the economy grows and expands, the
consumption habits and patterns of people also change – and it is
changing real fast in India.
ÿ The third important driver of organized retail is the country's
demography – India is home to the largest and the youngest
population in the world.
ÿ India's 300 million-odd middle-class, the real consumers, is catching
the attention of the world.
CHALLENGES TO RETAIL DEVELOPMENT IN INDIA:
ÿ Retail not being recognized as an industry in India
ÿ The high costs of real estate
ÿ High stamp duties
ÿ Lack of adequate infrastructure
ÿ Multiple and complex taxation system
ÿ Lack of skilled manpower
37
RETAIL FORECASTS:
ÿ Organized retail will form 10% of total retailing by the end of this decade
(2010).
ÿ From 2006 to 2010, the organized sector will grow at the CAGR of
around 49.53% per annum.
ÿ Cultural and regional differences in India are the biggest challenges in
front of retailers. This factor deters the retailers in India from adopting a
single retail format.
ÿ Hypermarket is emerging as the most favorable format for the time being
in India.
ÿ The arrival of multinationals will further push the growth of hypermarket
format, as it is the best way to compete with unorganized retailing in
India
37
CHAPTER - IIIORGANISATION PROFILE
38
ORGANISATION PROFILE
FUTURE GROUP
Future Group is one of the country’s leading business houses with
multiple businesses spanning across the consumption space. Group 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 12 million square feet of retail space, has over
1000 stores across 53 cities in India and employs over 25,000 people. Some
of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food
Bazaar, Home Town, eZone, Depot, Future Money and online retail format,
futurebazaar.com.
PANTALOON RETAIL (INDIA) LIMITED
The group’s flagship company, Pantaloon Retail (India) Ltd, is India’s
leading retailer. It operates multiple retail formats in both the value and
lifestyle segment of the Indian consumer market. Headquartered in
Mumbai, Pantaloon Retail is listed on the Indian stock exchanges.
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,
39
Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all,
Top 10, m Bazaar 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.
Group Vision
Future Group shall deliver Everything, Everywhere, Every time for
Every Indian Consumer in the most profitable manner.
40
Group Mission
We share the vision and belief that our customers and stakeholders
shall be served only by creating and executing future scenarios in the
consumption space leading to economic development.
We will be the trendsetters in evolving delivery formats, creating
retail realty, making consumption affordable for all customer segments –
for classes and for masses.
We shall infuse Indian brands with confidence and renewed
ambition.
We shall be efficient, cost- conscious and committed to quality in
whatever we do.
We shall ensure that our positive attitude, sincerity, humility and
united determination shall be the driving force to make us successful.
41
BOARD OF DIRECTORS
ÿ Mr. Kishore Biyani, Managing Director
ÿ Mr. Gopikishan Biyani, Wholetime Director
ÿ Mr. Rakesh Biyani, Wholetime Director
ÿ Mr. Ved Prakash Arya, Director
ÿ Mr. Shailesh Haribhakti, Independent Director
ÿ Mr. S Doreswamy, Independent Director
ÿ Dr. D O Koshy, Independent Director
ÿ Ms. Anju Poddar, Independent Director
ÿ Ms. Bala Deshpande, Independent Director
ÿ Mr. Anil Harish, Independent Director
AFFILIATE COMPANIES
ÿ Home Solutions Retail (India) Limited:ÿ Future Brands Limitedÿ Future Media (India) Limitedÿ Future Logistic Solutions Limitedÿ Convergem Communication (India) Limitedÿ Pantaloon Food Product (India) Limitedÿ Future Knowledge Services Limitedÿ Future Capital Holdings Limitedÿ Future Generali India Insurance Company Limitedÿ Future Generali India Life Insurance Company Limitedÿ Futurebazaar India Limitedÿ Weavette Texstyles Limitedÿ Staples Future Office Products Private Limitedÿ Alpha Future Airport Retail Private Limitedÿ Pan India Food Solutions Private Limitedÿ Talwalkars Pantaloon Fitness Private Limited
42
LIFE STYLE RETAIL IN INDIA:
The perception of the common Indian till recently was modern shopping
outlets are expensive places. The Swanky males with their glitzy floors and
huge glow – signs and characteristic of modern retail – are good enough to
give a shoppers the feeling that the products inside are over priced.
The first Shopping mall of Mumbai, cross roads opened, it only allowed
visitors who had a credit card or a mobile phone. Such were the early days
of modern retail in India.
LIFE STYLE RETAIL Vs VALUE RETAIL:
Modern Retails in India all were focused only on Life Style Retailing
but the Indian customer needs an Indigenous solution to his/her shopping
needs –that gives his/her the best value for money in an environment where
he/she is comfortable . At the same time heterogeneity of our country
doesn’t provide the luxury of following a cookie – cutter approach for
setting of a store. India needed a ‘Value Retailing’ model to revolutionize
the Indian Retail scene.
Value = Price + Consumer Surplus
Price + Consumer Surplus can be identified as ‘Value for Money’
43
BIG BAZAAR
Big Bazaar was inspired by Sarvana Stores Located in T.Nagar,
Chennai. It has a very simple philosophy to run its business - ‘Low margin,
high turnover’. In the value segment, Future Group marquee brand, Big
Bazaar is a uniquely Indian hypermarket chain. Big Bazaar is the India’s top
one retailer in terms of the turnover. In 2009, Big Bazaar opened its 116th
store, marking the fastest ever organic expansion of a hypermarket. More
than 60% of Group turnover came from Big Bazaar.
Big Bazaar scores over other stores is its value for money proposition
for the Indian customers. The concept of Big Bazaar is “Retailing the Indian
way”. Big Bazaar has to understand, interpret, attract and deliver to the
Indian consumer in a way that takes into account the Indian context. Big
Bazaar is the modern Indian family’s favorite store. It creates an ability to
pull consumers who shopped in traditional bazaar into the Big Bazaar stores.
44
Big Bazaar STP Strategy:
Segmentation: Marketers divided Indian customers in three categories. 1)
India One, ii) India Two iii) India Three. These groups can be understood as
the consuming class, the serving class and the struggling class.
Targeting: The potential customers of Big Bazaar are India One and India
Two. Big Bazaar is one-stop shopping at discounted prices, targeting the
price-conscious majority segment of customers.
Positioning: The Brand positioning “No body Sells Cheaper & Better” is
self explanatory by its tag-line only. This statement places Big Bazaar at the
top of the customer’s mind.
Source: Ernst &Young, the Great Indian Retail Story, 2007.
45
MARKETING INITATIVES OF BIG BAZAAR:
ÿ The designing of Big Bazaar stores reflect the look and feel of Indian
bazaars at modern outlets.
ÿ Big Bazaar outlets always look very crowded, because when a shop looks
neat and empty, the masses never walk into it.
ÿ Indian consumers are purchase grains, grams, etc., after touching them so
the Big Bazaar sell wheat, rice, and other products out of large buckets.
ÿ Indians are shopping more on baskets not in cartels so we placed lower
prices in entry level.
ÿ Big Bazaar store to create blockage through narrow, winding aisles, so it
create small traffic jams that make people stop and look at products.
ÿ Big Bazaar started exchange programme for old clothes, newspapers,
plastics, bottles and tyres, etc for eye-poppingly high prices.
ÿ Big Bazaar, introduced as a shop in shop (SIS) concept, which they went
on to become a very successful standalone store around India.
ÿ Big Bazaar was introduced another unique initiative concept “Sabse
Sasta Din” or “Maha Savings Day”.
46
BIG BAZAAR IS A 365 DAYS DISCOUNT STORE:
Indian shoppers are loves to bargain. Discount stores are still a nascent
(growing) concept in India. ‘Low margin, high turnover’ is the basic
objective of a discount store. In the west, retailers treat the entire community of
shoppers as one during ‘Christmas’. But analysts say Indian shoppers spread
their purchases through the year, as festivals span the entire year. Big Bazaar is
offers a ‘365 days’ discounts to the customers, which not only offered
discounting, but in fact bundled innovative product promotions. It’s attracting
frequent footfalls and captures a larger share of the customer’s wallet.
47
1. Monthly savings Bazaar: Because every rupee counts
Monthly savings bazaar is a monthly regular offer of Big Bazaar it valid
from 1st to 8th date, it covers eight days of every month. The main objective of
monthly saving Bazaar is to targeting job holder families because majority of
the families earned salaries in the fist week of the month, so the consumption
levels are high.
2. Wednesday Bazaar: The best savings day of the week
Big Bazaar was also the first to designate Wednesday Bazaar concept it
covers four days of every month. Wednesday is the middle day of the week and
also retailers it is the weakest day for sale when compare to the other days in a
week. The main objective of Wednesday Bazaar is to extra special discounts
offered to lure the customer into the store midweek – with the usual result, a
crowded store.
3. Weekend Offers: Shop, Eat, and Celebrate
Weekend days, that mean Saturdays and Sundays are the biggest
shopping days in every retailer. This weekend offers are covers eight days of
every month. The main objective of the weekend offer is Big Bazaar majority
share of sales are during in two days on a weekly bases. Peoples are heavily
interest to shopping-in those days so Big Bazaar has offers many special
discounts and other events conducted to capture a larger share of the
customer’s wallet.
48
4. Seasonal & Festival Offers:
Create a day without a season or a festival is the real motive of Big
Bazaar so they don’t ignore any opportunity. Such as "Cheapest Three Days”
and "Give Old, Take New” result in shoppers flooding the stores. Big Bazaar is
a deep understanding of local tastes and preferences they celebrated local
festivals with offering of many special discounts like “2 for the price of 1” and
other promotion strategies are attracting the maximum share of customer’s
expenditure towards Big Bazaar stores.
EXAMPLE: Seasonal Offer: IPL - 2
49
This leaflet is an example for seasonal offer in IPL-2 Big Days: 5 Days Maha Savings
Picture: 1
Picture: 2The above pictures 1, 2 shows the in store communication.
50
KEY PARAMETERS
Key parameters of performance analysis in a retail store:
q Number of Wackiness:
How many footfalls are enter into the store, is called number of wackiness.
q Convention Rate:
Conversion = Number of Wackiness X 100Number of Bills
q Average Bill Value:
Average Bill Value = Total AmountNumber of Bills
q Average Quantity Per Bill:
Average Quantity per Bill = Total QuantityNumber of Bills
51
PHYSICAL STRUCTURE OF BIG BAZAAR
There are five levels in Big Bazaar store at Vijayawada:
ÿ Level One: Food Bazaar, Kalasam Sweets, Customer Service Desk
ÿ Level Two: Utensils, Depot, Mobile Bazaar, Navars
ÿ Level Three: Fashion Bazaar, Kalamandir
ÿ Level Four: Pink & Blue, Foot Wear, Luggage, Bags, Loot Mart
ÿ Level Five: Electronic Bazaar, Furniture Bazaar, Home Decor, Future
Money
52
ORGANISATIONAL CHART OF BIG BAZAAR STORE:
Area Store manager: Mr. Sravan.
Store manager: Mr. Ravi kumar.
Assistant Store manager: Mr. Ramu.
Area Store manager
Store manager
Assistant Store manager
Department manager
Sales manager
Team leader
Team number
53
COMPETITOR ANALYSIS:
Big Bazaar has started of his 37th store in Vijayawada, dated on 7-9-
2004. Vijayawada is the emerging city and third largest city in Andhra
Pradesh. Big Bazaar is the first shopping mall in the city Vijayawada, so the
first moving advantages goes to Big Bazaar. It has created formats which
provide all items under one roof at low rates, or so it claims.
Competitive players:
ÿ Spenser’s
ÿ Reliance fresh
ÿ More
ÿ Modern super market
The Biggest challenge of Big Bazaar in Vijayawada:
Any organized retailer in Vijayawada should face a major challenge of
conversion rate. Vijayawada city which is covered by well established and
diversified whole sale markets with in surroundings of five kilometers area.
In this region a retailer face so much complexity involved to selling of a
product. When compare to other stores like Ammerpat store once a customer
enter to the store, the alternative choice is less when purchasing a product
but in Vijayawada it is different the alternative choice is high so the
conversion rate is less.
54
Geographical analysis:
LOCATION DESCRIPTION DISTENCE VALUE PROPOSITION
One Town
(Old City)
The main wholesale
markets are situated in the
one town.
Near 2 Km Large kirana stores having a wide variety of products and
offer low price through selling high volumes.
Besent Road Garments are mainly sold in Besant Road
Near 30m Greater choice to the consumer, comparison
between brands is possible.Eluru Road It is very famous
for electronics and furniture
shops. There are very big retail and exclusive
showrooms are located.
Near 0.5 km Complete range available for a given brand, certified
product quality.
MG Road MG Road is a land mark shopping
destination of consuming and upper middle class families.
Near 50 m Focus on a specific consumer need, carry most of the
brands available.
Gandhi Nagar
There are around 45 movie theatres
in and around Gandhi Nagar.
Near 1 km Vijayawada People are more connected to the cinemas. Movie theatres give more
entertainment in week ends.
In Vijayawada Big Bazaar store, it has no competitor’s only challenges
when compare to the Whole sale Markets, Kirana stores, and specialized
stores. The biggest challenge of Big Bazaar in Vijayawada store is to attract
people to the mall culture.
54
CHAPTER - IVDATA ANALYSIS AND INTERPRETATION
55
DATA ANALYSIS AND INTERPRETATION
1) Classification of respondents on the basis of age and sex.
Table - 1
Sex
Age (Years)
Male Female Total (%)
Less than 18 4 2 5
18-23 16 8 20
23-28 24 12 30
28-45 21 16 31
Greater than 45 11 6 14
Total 76 44 100
N=120
Inference (Analysis):
Out of the 120 samples taken 76 are male and 44 are female with varied age
groups. In this analysis the majority of the respondents come under the age
group 23-28 and 28-45 years. Next majority of the respondents come under the
age group 23-45 and grater than 45 years. Less number of respondents comes
under the age group of below 18 years.
56
Diagram – 1
42
16
8
24
12
21
16
11
6
0
5
10
15
20
25
30
35
40
Re
sp
on
de
nts
Less than 18 18-23 23-28 28-45 Greater than45Age
Respondents-Age profile
Male Female
Interpretation
The above graph shows the Classification of respondents on the basis of age
and sex. Out of the 120 samples taken 76 are male and 44 are female with
varied age groups. In this analysis 6 numbers of respondents come under age
group of below 18 years, i.e. 5%. 24 numbers of respondents come under age
group of 18-23 years, i.e. 20%. 36 numbers of respondents come under age
group of 23-28 years, i.e. 30%. 37 numbers of respondents come under age
group of 28-45 years, i.e. 31% and 17 numbers of respondents come under age
group of more than 45 years, i.e. 14%.
57
2) Respondents shopping preference at Big Bazaar.
Table - 2
Analysis:
The above table shows the respondents shopping preference at Big Bazaar
that how many members like to shop and the frequency of shopping.
Shopping preference Total (%)
Regularly 50
Often 20
Rarely 10
Seldom 20
58
Diagram – 2
Respondent - Shopping Preference
50%
20%
10%
20%Regularly
Often
Rarely
Seldom
Interpretation:
The above graph shows, the respondent’s preference for shopping at Big
Bazaar. The table reveals that 50% of respondents are regular in shopping
and the number is 60. The No. of respondents who expressed often is 24 i.e.
20%. The respondent’s number who expressed rarely is 12 i.e. 10% and
seldom contributes 24 respondents i.e. 20%.
59
3) Respondents brand positioning on Big Bazaar.
Table - 3
Analysis:
The above table shows the respondents brand positioning on Big Bazaar and
consumer’s perception towards Big Bazaar. Some consumers feel buying in
Big Bazaar is a value for money, discounts shop, all in one roof, and some
other says it is a different shopping experience.
Brand Positioning Total (%)
Value for Money 35
Discounts Shop 25
All in one roof 15
Different Shopping Experience 25
60
Diagram – 3
Brand - positiong
35%
25%
15%
25%Value for Money
Discounts Shop
All in one roof
Different ShoppingExperience
Interpretation:
The above graph shows, the respondent’s brand positioning at Big Bazaar.
The table reveals that 35% of respondent’s perception is value for money
store and the number is 42. The No. of respondents who expressed discount
shop is 30 i.e. 25%. The respondent’s number who expressed is one roof
available store is 18 i.e. 15% and different shopping experience contributes
30 respondents i.e. 25%.
61
4) Respondents rate of media penetration.
Table - 4
Rate of media penetration Total (%)
News Paper 34
Radio 11
TV 26
Word of Mouth 29
Analysis:
The above table shows the respondents opinion towards rate of media
penetration of Big Bazaar, i.e. news paper, radio, TV and word of mouth.
62
Diagram – 4
Rate of media penetration
34%
11%26%
29%
News Paper
Radio
TV
Word of Mouth
Interpretation:
The above graph shows, the respondent’s media penetration at Big Bazaar.
The table reveals that 34% of respondent’s capture their attention through
news papers and the number is 41. The No. of respondents who expressed
radio is 13 i.e. 11%. The respondent’s number who expressed TV is 31 i.e.
26% and word of mouth contributes 35 respondents i.e. 29%.
63
5) Communication channels towards Special Offers/Discounts.
Table - 5
Communication of Special Offers Total (%)
Leaflets 38
TV Ads 21
In Store Announcements 29
In Store Decorations 12
Analysis:
The above table shows the respondents opinion on media penetration
towards Big Bazaar, special. Different media channels penetration towards
Big Bazaar special, discounts through Leaflets, TV Ads, In Store
Announcements, and In Store Decorations.
64
Diagram – 5
Communication of Special Offers
38%
21%
29%
12%
Leaflets
TV Ads
In Store Announcements
In Store Decorations
Interpretation:
The above graph shows, the respondent’s media penetration at Big Bazaar.
The table reveals that 38% of respondents are capture their attention through
leaflets and the number is 46. The No. of respondents who expressed TV is
25 i.e. 21%. The respondent’s number who expressed in store
announcements is 35 i.e. 29% and 14 respondents in store decorations i.e.
12%.
65
6) Respondents monthly purchases of grocery & vegetables.
Table - 6
Analysis:
The above table shows the respondents monthly purchases of grocery &
vegetables in different retail markets. The major retail markets are Modern
Super markets, Reliance Fresh, Spencer, 1 Town (wholesale shops) and
Local Grocery Stores.
Monthly - Purchases Total (%)
Modern Super markets 25
Reliance Fresh 8
Spencer 13
1 Town (wholesale shops) 21
Local Grocery Store 33
66
Diagram – 6
25%
8%
13%
21%
33%
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
Res
po
nd
ents
ModernSuper
markets
RelianceFresh
Spencer 1 Town(wholesale
shops)
LocalGrocery
Store
Respondent - Monthly Purchase
Interpretation:
The above graph shows, the respondent’s purchase in different retail
markets. The table reveals that 25% of respondents are in modern super
market and the number is 30. The No. of respondents who prefer Reliance
Fresh is 10 i.e. 8%. The respondent’s number who prefer Spencer is 15 i.e.
13%. The respondent’s number who prefer wholesale shops is 15 i.e. 13%,
and grocery stores contributes 40 respondents i.e. 33%.
67
7) Respondents opinion on the price, quality and verities of grocery in
….Food.Bazaar.
Table - 7
Analysis:
The above table shows the respondents opinion on Food Bazaar and that
consumer’s perception towards Food Bazaar. Some consumers feel that the
Food Bazaar is excellent, good, average and some other says it’s bad.
Opinion on Food Bazaar Total (%)
Excellent 17
Good 51
Average 27
Bad 5
68
Diagram – 7
Respondent - Opinion on Food Bazaar
17%
51%27%
5% Excellent
Good
Average
Bad
Interpretation:
The above graph shows, the respondent’s opinion on Food Bazaar. The
table reveals that 17% of respondents are in excellent, and the number is 20.
The No. of respondents who respond good is 61 i.e. 51%. The respondent’s
number who respond average is 33 i.e. 27% and bad contributes 6
respondents i.e. 5%.
69
8) Respondents opinion on the price, quality and verities of grocery in
….Fashion.Bazaar.
Table - 8
Analysis:
The above table shows the respondents opinion on Fashion Bazaar and
consumer’s perception towards Fashion Bazaar. Some respondent feel about
the Fashion Bazaar is excellent, good and average but some other says it’s
poor.
Opinion on Fashion Bazaar Total (%)
Excellent 7
Good 30
Average 46
Poor 1 17
70
Diagram – 8
Respondent - Opinion on Fashion Bazaar
7%
30%
46%
17%
Excellent
Good
Average
Poor
Interpretation:
The above graph shows, the respondent’s opinion on Fashion Bazaar. The
table reveals that 7% of respondents are in excellent, and the number is 8.
The No. of respondents who respond good is 36 i.e. 30%. The respondent’s
number who respond average is 21 i.e. 46% and bad contributes 21
respondents i.e. 17%.
71
9) Respondents rating towards attributes of the products in Big Bazaar.
. (1Fully dissatisfied to 5 fully satisfied)
No Attributes/ Benefits Rating
a Availability 1 2 3 4 5
b Price 1 2 3 4 5
c Quality 1 2 3 4 5
Table - 9
Analysis:
The above table shows the respondents rating towards Big Bazaar store
attributes or benefits of the products. Respondents are given their rating to
each attribute of the product like availability, price and quality. A five point
scale is taken and given ranking to each point, i.e. one to fully dissatisfied to
five to fully satisfied.
Attributes/ BenefitsB
Rating (%)
1 2 3 4 5
Availability 15 25 33 20 7
Price 4 13 50 18 15
Quality 20 35 28 12 5
72
Diagram – 9
Rating on Attributes / Benfits
15
25
33
20
74
13
50
1815
20
35
28
12
5
0
10
20
30
40
50
1 2 3 4 5
Rating (1 fully unsatisfied to 5 fully satisfied)
Re
sp
on
de
nts
(%
)
Availability(%)
Price(%)
Quality(%)
Interpretation:
The above graph shows the respondents’ rating towards products
availability, price and quality in the store. Rating about product availability
is 20% fully unsatisfied, 5% is fully satisfied and 33% is the moderate
percentage. Rating about product price is 4% fully unsatisfied, 15% is fully
satisfied and 50% is the moderate percentage. Rating about product quality
is 20% fully unsatisfied, 5% is fully satisfied and 28% is the moderate
percentage.
10) Respondent rating towards influenced factors in their purchasing
decision at Big Bazaar. (1Fully dissatisfied to 5 fully satisfied)
73
Table - 10
Analysis:
The above table shows the respondents rating towards influenced factors in their purchasing decision at Big Bazaar. We take attributes like offers, low price, quality, assortment and brand name. Respondents have given their rating to each attribute of the product. A five point scale is taken and given ranking to each point, i.e. one to fully dissatisfied to five to fully satisfied. Diagram – 10
NO Attributes / Benefits Rating
a Offers/Discounts 1 2 3 4 5
b Low price 1 2 3 4 5
c Quality 1 2 3 4 5
d Assortment 1 2 3 4 5
e Brand name 1 2 3 4 5
NO Attributes / Benefits Rating (%)
1 2 3 4 5
a Offers/Discounts 8 15 36 25 17
b Low Price 12 20 43 18 7
c Quality 4 12 35 28 21
d Assortment 7 18 33 26 16
e Brand name 11 20 30 24 15
74
Rating on Attributes / Benfits
8
15
36
25
17
12
20
43
18
74
12
35
28
21
7
18
33
26
16
11
20
30
24
15
0
5
10
15
20
25
30
35
40
45
1 2 3 4 5
Rating (1least important to 5 most important)
Re
sp
on
de
nts
(%
)
Offers/Discounts
Low Price
Quality
Assortment
Brand name
Interpretation:
The above graph shows the respondents rating towards influenced factors in
their purchasing decision. Rating about offers or discounts is 8% fully
unsatisfied, 17% is fully satisfied and 36% is the moderate percentage.
Rating about low price is 12% fully unsatisfied, 7% is fully satisfied and
43% is the moderate percentage. Rating about quality is 4% fully
unsatisfied, 21% is fully satisfied and 35% is the moderate percentage.
Rating about assortment is 7% fully unsatisfied, 16% is fully satisfied and
33% is the moderate percentage. Rating about brand name is 11% fully
unsatisfied, 15% is fully satisfied and 30% is the moderate percentage.
75
11) Respondents opinion on the price, quality and verities of Big Bazaar
own brands or private labels?
Table - 11
Analysis:
The above table shows the respondents opinion on Big Bazaar own brands
or private labels consumer’s perception towards own brands. Some
consumers feel it is excellent, good and average but some other says it’s
poor.
Opinion on Private Labels Total (%)
Excellent 12
Good 45
Average 34
Poor 9
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Diagram – 11
Respondent - Opinion on Private labels
12%
45%34%
9%
Excellent
Good
Average
Poor
Interpretation:
The above graph shows, the respondent’s opinion on Big Bazaar own
brands. The table reveals that 12% of respondents are in excellent, and the
number is 14. The No. of respondents who respond good is 54 i.e. 45%. The
respondent’s number who responds average is 41 i.e. 45% and poor
contributes 11 respondents i.e. 9%.
77
12) Respondents rating to the assistance given by the staff for creating
awareness to customers on store products and services.
Table - 12
Analysis:
The above table shows the respondents response towards assistance given by
the staff for creating awareness to customers on store products and services.
Some respondents feel about staff service is to maximum extent and to some
but some other says it’s not at all.
Staff Service Total (%)
To Maximum Extent 32
To Some Extent 52
Not at All 16
78
Diagram – 12
Respondent - Opnion on Staff Service
32% 52%
16%
To Maximum Extent
To Some Extent
Not at All
Interpretation:
The above graph shows, the respondent’s opinion on Big Bazaar own
brands. The table reveals that 33% of respondents are in maximum extent,
and the number is 38. The No. of respondents who response some extent is
62 i.e. 52%. The respondent’s number who response not at all contributes 19
respondents i.e. 16%.
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13) Respondent spends their weekend times.
Table - 13
Spending weekend times Total (%)
Shopping 33
Movie 45
Hang Outs 14
Site Seeing 1 8
Analysis:
The above table shows the respondents spending weekend times and that
different habits of respondents. Respondents prefer their weekend times
shopping, movies, hang outs and site seeing.
80
Diagram – 13
Respondent - Spending weekeends
30% 41%
13%16%
Shopping
Movie
Hang Outs
Site Seeing
Interpretation:
The above graph shows, the respondent’s spending weekend times. The
table reveals that 30% of respondents are in prefer shopping, and the number
is 36. The No. of respondents who prefer movies is 49 i.e. 41%. The
respondent’s number who prefers hang outs contributes 19 respondents i.e.
16%.
81
14) Respondents opinion on motivating caption - ‘No body sells cheaper
…..& better’.
Table - 13
Analysis:
The above table shows the respondents opinion towards motivating caption
of Big Bazaar. Most of the respondents are agreed with caption but some
respondents are not agreed and some other says they have no idea.
Motivating caption Total (%)
Yes 47
No 32
No Idea 21
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Diagram – 14
Respondent - Openion on Motivating Caption
47%
32%
21%
Yes
No
No Idea
Interpretation:
The above graph shows, the respondent’s opinion on motivating caption of
Big Bazaar. The table reveals that 48% of respondents are agreed, and the
number is 56. The No. of respondents who are not agreed is 25 i.e. 32%. The
respondent’s number who told that, they have no idea is contributes 25
respondents i.e. 21%.
83
15) Respondents shopping experience at Big Bazaar.
Table - 14
Shopping Experience Total (%)
Very Good 16
Good 47
Average 29
Bad 1 8
Analysis:
The above table shows that the over all shopping experience of respondents
at Big Bazaar store. Some consumers feel about their shopping experience is
very good, good and average but some other says it’s bad.
84
Diagram – 15
Respondent - Shopping Experience
16%
47%29%
8% Very Good
Good
Average
Bad
Interpretation:
The above graph shows, the respondent’s shopping experience at Big Bazaar
store. The table reveals that 16% of respondents are in very good, and the
number is 19. The No. of respondents who respond good is 56 i.e. 47%. The
respondent’s number who respond average is 10 i.e. 29% and bad
contributes 11 respondents i.e. 9%.
84
CHAPTER - VFINDINGS AND SUGGESTIONS
85
FINDINGS
ÿ Data analysis on the basis of the five point scale perceives that Big
Bazaar customers are divided in three segments i.e. segment one,
segment two and segment three.
ÿ Segment one consumers’ are very price sensitive. These price sensitive
consumers’ respond towards Big Bazaar is an over priced store.
ÿ Market survey sample perceive that majority of the respondents comes
under this segment two. This segment consumer is concerned about the
attributes, additional features as well as price.
ÿ Segment three consumers’ are high income group. This segment
customer is more influenced by attributes of the products and is not a
price sensitive.
ÿ For Big Bazaar, major part of revenue is coming from Food Bazaar and
Fashion Bazaar (apparel).
ÿ Fashion Bazaar and Electronic Bazaar is not working well when
compared to Food Bazaar.
ÿ Big Bazaar has only followed a dumping strategy in Fashion Bazaar
with very little customization
86
.
ÿ Big Bazaar primarily targeting consumers which are more focused on
the product attributes like discounts and buy one get one promotions etc.
ÿ Surveyed samples perceive that majority customers wanted variety of
branded products in a reasonable price and they not much bother about
discounts.
ÿ Biz Bazaar has lost some of the market share in the life style segment
because of their format creates its own hurdles.
87
SUGGESTIONS
ÿ The main suggestion of the project is Big Bazaar should come out the
apparel market more aggressively with a new model immediately.
ÿ Big Bazaar still needs to concentrate on its segment two customers,
with the introduction of the wide range of new products besides price.
ÿ It is a need for company to think locally. Company should have treat
Tire 2 Big Bazaar is differ from Tire 1.
ÿ Company has (a need for adopt) a strategy of ‘upgrading the
consumer’ in Tire 2 cities and come out with a new marketing
strategy.
ÿ The new marketing strategy consist a combination of life style
retailing and value retailing. Then it will be possible to capture more
market share.
ÿ The new marketing strategy (model) in the Tire 2 cities can also
become tomorrow’s breadwinner for the company.
87
BIBLIOGRAPHY
88
BIBLIOGRAPHY
1. REFERENCE BOOKS:
1. Philip Kotler and Armstrong. G; Marketing Marketing, Prentice
Hall of India, 12th Edition, New Delhi, 2006.
2. Roger, J.Best, Market Based Management Strategies for
Growthing Customer Values, Prentice Hall of India, 4th Edition,
2006.
3. Blackwell, Minard and Engel (2006). Consumer Behaviour (10th
Ed.). Thomson Learning, UK.
4. Schiffman, (1993), Consumer Behavior, Prentice Hall
International, London.
5. Foxall, (2005) Understanding Consumer Choice. Baingstoke.
Palgrave Macmillian, Europe.
6. Howard, J., Sheth, (1998), Theory of Buyer Behavior, J. Wiley &
Sons, New York, NY.
7. Loudon (1997), Consumer Behavior: Concepts and Applications,
McGraw Hill, London.
8. Philip Kotler, Keller, Abraham Koshy, M.Jha, Marketing
Management; Pearson Education, 12th Edition, New Delhi, 2006.
89
2. WEBSITES:
www.future group India.com.
www.pantaloon retail.com.
www.big bazaar.com
www. Fututr bazaar.com
www.google.com
www.wickkypedia.com
www.retail in detail.com
www.retail india.com
3. BOOKS:
ÿ It Happened India – by Mr. Kishore Biyani,
Founder & Future Group CEO.
4. MAGAZINES:
∑ Business today.
∑ Business world.
∑ Marketing mastermind.
∑ Business & Economy
∑ 4 P’s
89
APPENDIX
90
QUESTIONNAIRE
Name: ___________________ Location: ____________________
Occupation: __________________ Mobile: _____________ Gender: M/ F
1) Respondent Age Group
Less than 18 18-23 23-28 28-45 Greater than 45
2) How often do you visit Big Bazaar?
Regularly Often Rarely Seldom
3) What it first comes in your mind when I say Big Bazaar?
Value for Money Discounts Shop
All in one roof Different Shopping Experience
4) Which medium Big Bazaar has captures your attention?
News Paper Radio TV Word of Mouth
5) Specify one of the best modes through which Big Bazaar offers
……..reached you?
Leaflets TV Ads
In Store Announcements In store decorations
6) Where did you Purchase your monthly grocery & vegetables?
Modern Super markets Reliance Fresh Spencer
. Food Bazaar Local Grocery Store 1 Town (wholesale shops)
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7) What is your opinion on the price, quality and verities of grocery in …
…….Food.Bazaar?
Excellent Good Average Bad
8) What is your opinion with the quality and verities of apparels in Fashion
……Bazaar?
Excellent Good Average Poor
9) How would you rate the following in our Products? (1Fully dissatisfied to
….5 fully satisfied)
No Attributes/ Benefits Rating
a Availability 1 2 3 4 5
b Price 1 2 3 4 5
c Quality 1 2 3 4 5
10) Please rate the factors given below on scale of 1- 5 based on the
…...importance they hold for you in purchase decision of Big Bazaar own
…...brands? (1Least important to 5 most important)
92
11) What is your opinion on the price, quality and verities of Big Bazaar
……own brands or private labels?
Excellent Good Average Poor
12) What is your rating to the assistance given by the staff for creating
…...awareness to customers on store products and services?
To Maximum Extant To Some Extant Not at All
13) How do you spend your weekend time?
Shopping Movie Hang Outs Site Seeing
14) ‘No body sells cheaper & better’ is our motivating caption do you agree?
Yes No No Idea
15) How is your shopping experience at Big Bazaar?
Very Good Good Average Bad
-----------------> Thank You <----------------
NO Attributes / Benefits Rating
a Offers/Discounts 1 2 3 4 5
b Low price 1 2 3 4 5
c Quality 1 2 3 4 5
d Assortment 1 2 3 4 5
e Brand name 1 2 3 4 5