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UNIVERSITY OF MUMBAI

NCRD¶s

STERLING COLLEGE OF ARTS, COMMERCE & SCIENCE

NERUL, NAVI MUMBAI

COLLEGE CODE-331

PROJECT REPORT ON

³Sales Promotion & Big Bazaar.´

SUBMITTED BY

Prashant Shinde

T.Y.B.M.S. (SEM-V)

PROJECT GUIDE

MRS. Ipshita Das.

BACHELOR OF MANAGEMENT STUDIES (B.M.S)

ACADEMIC YEAR 2010-11



Acknowledgement



Declaration

I Prashant Shinde, Student of NCRD¶s Sterling College of Arts, Commerce &Science,

studying in B.M.S (Semester V) hereby declare that I have completed this project reporton ³Sales Promotion & Big Bazaar´ and has not been submitted to any other University

of Institute for the award of any degree, diploma etc. The information is submitted to me

is true and original to the best of my knowledge.

Date:

Place:

(Name & Sign of Student)



Certificate



Executive Summary/ Abstract



Index

Chapter Chapter Scheme

1

Introduction & Evolution:a) Introduction to the Project/Subject

Objectives of the StudyScope of the StudyImportance of the Study

b) Introduction about the Industry/Organization

Industry/ Organization historyVision & MissionOrganization Structure

2 Conceptual Framework

3

Research Layout & Design:a) Research Methodology

b) Data analysis

4 Research Findings

5 Conclusions & Suggestions

Bibliography & References



Table of Contents

Serial No. Chapters

Page

No.



CHAPTER - I

i) Introduction

ii) Objectives of the study

iii) Scope of the study



Introduction

Sales promotion includes several communications activities that attempt to provide

added value or incentives to consumers, wholesalers, retailers, or other organizational

customers to stimulate immediate sales. These efforts can attempt to stimulate product

interest, trial, or purchase. Examples of devices used in sales promotion includecoupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and

sweepstakes.

Retailing in India has witnessed a huge growth in the recent years. Retailing in India is

gradually inching its way towards becoming the next boom. The Indian retail industry is

largest among all the industries in India, According to the India Retail Report 2009

compiled by research group ³Images F&R Research´ rising economic growth will fuel

the growth of industry and it will touch Rs. 18,10,000 crores by 2010.

Big Bazaar is Indian personification of retail. It¶s like an Indian bazaar or mandi or mela.Big Bazaar, which has become a household name by now, has emerged as one of the

prominent organized retailing player in Indian arena. It has been successful in

establishing a chain of shopping malls in various cities of India, reflecting the look and

feel of Indian bazaars at their modern outlets targeting higher and upper middle class

customers with a strong distribution network.

Big Bazaar faces a formidable competition from the unorganized sector. Change in

consumer behavior, intensification of competition with the emergence of new players

has made it difficult to achieve the forecasted success. An insight into unorganized

retailing reveals that it enjoys higher margin due to many reasons including lowoperational cost, and low taxations.

Being aware of the threats and opportunities present in the Indian retailing, the top

management at Big bazaar planned various strategic alternatives. Big Bazaar has huge

promotion budgets. The biggest idea behind all advertisements is to prompt people to

do bulk shopping. There are two types of promotional strategies of big bazaar. One is

the holistic advertisement which promotes the brand and creates awareness among

people. Other type of promotion is the particular store oriented promotion. There are

promotional efforts even inside the store

Big Bazaar ensures that no other kirana store / departmental store are offering

considerable discount compared to its own price. This helped it Big Bazaar in being the

"value for money" store. Product mix at Big Bazaar is compared to kirana store.



Objectives & Scope of the study

i. To determine the current status of Big Bazaar.

ii. To study the structure of Retail Industry in India.

iii. To study the Importance of Sales Promotion in Retail Industry.

iv. To study the Objectives of Sales promotion.

v. To Study the Strategies of Sales Promotion used in business.



About The Future Group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India's

leading business houses with multiple businesses spanning across the consumption

space. While retail forms the core business activity of Future Group, group subsidiaries

are present in consumer finance, capital, insurance, leisure and entertainment, branddevelopment, retail real estate development, retail media and logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million

square feet of retail space in over 71 cities and towns and 65 rural locations across

India. The group owns several leading formats including Pantaloons, Big Bazaar, Food

Bazaar, Home Town, eZone and Central. Pantaloon Retail was awarded the

International Retailer of the Year - 2007, by the US-based National Retail Federation,

the largest retail trade association and the Emerging Market Retailer of the Year 2007 at

the World Retail Congress in Barcelona.

Future Group believes in developing strong insights on Indian consumers and building

businesses based on Indian ideas, as espoused in the group's core value of

'Indianness'. The group's corporate credo is, 'Rewrite rules, Retain values'.

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India¶s

leading business houses with multiple businesses spanning across the consumption

space. While retail forms the core business activity of Future Group, group subsidiaries

are present in consumer finance, capital, insurance, leisure and entertainment, brand

development, retail real estate development, retail media and logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million

square feet of retail space in 73 cities and towns and 65 rural locations across India.

Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people

and is listed on the Indian stock exchanges. The company follows a multi-format retail

strategy that captures almost the entire consumption basket of Indian customers. In the

lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a

chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a

hypermarket format that combines the look, touch and feel of Indian bazaars with the

choice and convenience of modern retail.

In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion

of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata,

Hyderabad and Bangalore.

The group¶s speciality retail formats include supermarket chain ± Food Bazaar,

sportswear retailer - Planet Sports, electronics retailer - eZone, home improvement

chain - Home Town and rural retail chain, Aadhaar, among others. It also operates

popular shopping portal - www.futurebazaar.com.



Future Capital Holdings, the group¶s financial arm provides investment advisory to

assets worth over $1 Billion that are being invested in consumer brands and companies,

real estate, hotels and logistics. It also operates a consumer finance arm with branches

in 150 locations.

Other group companies include, Future Generali, the group¶s insurance venture inpartnership with Italy¶s Generali Group, Future Brands, a brand development and IPR

company, Future Logistics, providing logistics and distribution solutions to group

companies and business partners and Future Media, a retail media initiative.

The group¶s presence in Leisure & Entertainment segment is led through, Mumbai-

based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains,

Sports Bar and Bowling Co. and family entertainment centres, F123. Through its partner

company, Blue Foods the group operates around 100 restaurants and food courts

through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper

Chimney and Gelato.

Future Group¶s joint venture partners include, US-based stationery products retailer,

Staples and Middle East-based Axiom Communications.

Future Group believes in developing strong insights on Indian consumers and building

businesses based on Indian ideas, as espoused in the group¶s core value of

µIndianness.¶ The group¶s corporate credo is, µRewrite rules, Retain values.¶

About Big Bazaar

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

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

Indian customers.

At Big Bazaar, you will definitely get the best products at the best prices - that's what we

guarantee. With the ever increasing array of private labels, it has opened the doors into

the world of fashion and general merchandise including home furnishings, utensils,

crockery, cutlery, sports goods and much more at prices that will surprise you. And this

is just the beginning. Big Bazaar plans to add much more to complete your shopping

experience.



Vision

y ³To Deliver Everything, Everywhere, Every time, to Every Indian Customer in the

most profitable manner.´

y One of the core values at Future Group is, µIndia ness¶ and its corporate credo is

± ³Rewr ite rules, Retain values.´

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 determinationshall be the driving force to make us successful.



Core Values

Indianness: confidence in ourselves.

Leadership: to be a leader, both in thought and business.

Respect & Humility: to respect every individual and be humble in our conduct. Introspection: leading to purposeful thinking.

Openness: to be open and receptive to new ideas, knowledge and information.

Valuing and Nurturing Relationships: to build long term relationships.

Simplicity & Positivity: Simplicity and positivity in our thought, business and

action.

Adaptability: to be flexible and adaptable, to meet challenges.

Flow: to respect and understand the universal laws of nature.



Organization Structure

ORGANIZATION STRUCTURE

Store Manager

Asst. store

Manager

Dept. mgr

Asst. Dept

Mgr

eam

Leader

C D

HR Mgr

Visual

Merchandising

Asst . DM

Administration

Maintenance

House Keeping

nfo

¡ ecurity

Mkt.Mgr

SalesMgr

Cashiers



Conceptual FrameworkSales promotion is one of the four aspects of promotional mix. (The other three partsof the promotional mix are advertising, personal selling, and publicity/public relations.)Media and non-media marketing communication are employed for a pre-determined,limited time to increase consumer demand, stimulate market demand or improve

product availability.

In 1697 Jonathon Holder, a London haberdasher, decided to offer customers spendingover a guinea in his shop a free stock and price list. His pioneering decision to offer hiscustomers µsomething extra¶ was not universally welcomed. The newspapers of the daycondemned this sales promotion as µa dangerous innovation¶ and one which, µwould bedestructive to trade, if shopkeepers lavished so much of their capital on printing uselessbills¶. Over 300 years later, trade still flourishes and so do sales promotions, which nowaccount for more µcapital¶ than any element of marketing communications except selling.During 2000, promotional expenditure in the USA (excluding discounting programs)exceeded $100 billion for the first time, according to industry figures. Despite sales

promotion¶s growing importance, something of the scepticism that Mr. Holder encountered lives on. In the study and practice of marketing, sales promotion hasalways been overshadowed by the more glamorous world of advertising. This situationis now changing, with sales promotion beginning to attract the academic study andpractitioner scrutiny that its cost and increasingly strategic role surely demands.

Sales promotions are direct inducements that offer extra incentives to enhance or accelerate the product's movement from producer to consumer. Sales promotions maybe directed at the consumer or the trade. Consumer promotions such as coupons,sampling, premiums, sweepstakes, price packs (packs that offer greater quantity or lower cost than normal), low-cost financing deals, and rebates are purchase incentives

in that they induce product trial and encourage repurchase. Consumer promotions mayalso include incentives to visit a retail establishment or request additional information.Trade promotions include slotting allowances ("buying" shelf space in retail stores),allowances for featuring the brand in retail advertising, display and merchandisingallowances, buying allowances (volume discounts and other volume-orientedincentives), bill back allowances (pay-for-performance incentives), incentives tosalespeople, and other tactics to encourage retailers to carry the item and to push thebrand.

Two perspectives may be found among marketers regarding sales promotion. First,sales promotion is supplemental to advertising in that it binds the role of advertising with

personal selling. This view regards sales promotion as a minor player in the marketingcommunication program. A second view regards sales promotion and advertising asdistinct functions with objectives and strategies very different from each other. Salespromotion in this sense is equal to or even more important than advertising. Somecompanies allocate as much as 75 percent of their advertising/promotion dollars tosales promotion and just 25 percent to advertising. Finding the right balance is often adifficult task. The main purpose of sales promotion is to spur action. Advertising sets upthe deal by developing a brand reputation and building market value. Sales promotion



helps close the deal by providing incentives that build market volume.

Sales promotions can motivate customers to select a particular brand, especially whenbrands appear to be equal, and they can produce more immediate and measurableresults than advertising. However, too heavy a reliance on sales promotions results in

"deal-prone" consumers with little brand loyalty and too much price sensitivity. Salespromotions can also force competitors to offer similar inducements, with sales andprofits suffering for everyone.

Sales promotion is frequently defined in terms of what it is not, typically as thosemarketing communications activities which do not fall into the categories of advertising,selling or public relations. This is not very helpful, but definitions trying to explain whatthis encompasses are often flawed, by failing to embrace all of the marketing toolsregarded as sales promotions in practice. We can define sales promotions asµmarketing activities usually specific to a time period, place or customer group, whichencourage a direct response from consumers or marketing intermediaries, through the

offer of additional benefits¶.



Objectives of Sales Promotion

We have learnt that the main objective of sales promotion is to increase sales.However, there are also some other objectives of sales promotion.The objectives are:

To introduce new products: Have you ever heard about distribution of freesamples? Perhaps you know that many companies distribute free samples whileintroducing new products. The consumers after using these free samples maydevelop a taste for it and buy the products later for consumption.

To attract new customers and retain the existing ones: Sales promotionmeasures help to attract or create new customers for the products. While moving inthe market, customers are generally attracted towards the product that offersdiscount, gift, prize, etc on buying. These are some of the tools used to encouragethe customers to buy the goods. Thus, it helps to retain the existing customers, and

at the same time it also attracts some new customers to buy the product.

To maintain sales of seasonal products: There are some products like air conditioner, fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion,glycerin soap etc., which are used only in particular seasons. To maintain the sale of these types of products normally the manufacturers and dealers give off-seasondiscount. For example, you can buy air conditioner in winter at a reduced price.Similarly you may get discount on winter clothes during summer.

To meet the challenge of competition: Today¶s business faces competition all thetime. New products frequently come to the market and at the same time

improvement also takes place. So sales promotion measures have becomeessential to retain the market share of the seller or producer in the product-market.

Build closer relations with customers. Companies that focus on customer retention track each customer's transactions and work hard at customer communications, including several types of promotion.

Continuity programs, usually a retail tactic, allow consumers to get such things astowels and dinnerware at discounts based on how much they buy.

Customer councils can tie customers closer to your company, if you provide

opportunities for meaningful education and networking at meetings.

Frequency marketing programs provide ever-increasing levels of awards or discounts to regular customers. The popularity of airline miles suggests that theseprograms can have a major impact on customer loyalty, especially when there islittle difference among competitors. The databases needed to track these programscan yield valuable customer information for target marketing or market research. The



down side is the administrative burden of keeping track of so many accounts andmailing statements each month.

Incentive programs can help build the loyalty of middlemen, such as dealers,distributors, small retailers, and agents. Exciting merchandise awards or

unforgettable trips differentiate you from other suppliers.

Self-liquidators enable consumers to buy merchandise through the mail at a pricebelow retail. Items sometimes bear the name of the sponsoring company. Theseprograms, by definition, should pay for themselves, but they entail someadministration. They are a means of obtaining the names of your most loyalcustomers.

Tie-ins can do the job if they offer customers long-term value, such as occurs in the

travel industry.

Build a database. To target their marketing more effectively, many companies builddatabases of likely prospects.

Contests/sweepstakes help get people to reply to advertising and direct mail butthey're also useful as database builders if targeted at people most likely to fit your customer profile. They are relatively inexpensive.

Online Contests/sweepstakes provide a long-term benefit if they are directly linkedto the development of a consumer database. The consumer contest is thefoundation for subsequent targeted e-marketing activities.

Rebates enable you to track purchasers, because they must provide their name andaddress in order to receive their check. This is a costly but effective way to get thenames of customers.

Frequency marketing enables you to track the names of purchasers over time andeven track the quantity and nature of their purchases.

Incentives, usually low-priced merchandise, can get direct-mail recipients torespond to questionnaires. To wind up with the people most likely to buy, select your mailing list carefully.



Get retail displays. In theory, retailers will put up displays when the effort will helpboost sales or profit margins. But there's a significant difference between thestrategies you use with major chains and those you use with small dealers anddistributors.

Contests/sweepstakes might get the attention of retailers, even big ones, if theidea is big, backed by sufficient marketing, and exclusive to that retailer in its region.

Dealer incentives, such as merchandise and travel, work best with smaller retailersand dealers, who view these awards as perquisites for them or their employees.Large chains often will not let managers accept them.

Display contests reward retailers or dealers for putting up inventive or high profiledisplays on behalf of a supplier. They work best with smaller retailers, because most

big chains will not participate.

Event marketing can help induce a retailer to support a product with displays, if itseems likely to increase traffic and the store is guaranteed exclusivity.

MOTIVATE SALESPEOPLE

Building sales momentum requires long-term commitment to recruitment,compensation, training, and team-building, but certain types of promotion help, too.

Incentives introduce an element of fun and can focus employees on activitiesnecessary to succeed. Tangible rewards, such as merchandise and travel, can bedistinguished from traditional compensation. Group travel awards have the addedbenefit of building camaraderie among winners.

Contests/sweepstakes are great attention-getters and generate plenty of fun, butdon't depend too heavily on them as an incentive, since winners generally arechosen at random rather than on the basis of performance.

GET A SALES APPOINTMENT

In sales, getting that face-to-face meeting is half the battle. The most compelling recipeis having a useful product, targeting the right companies and individuals, developing acommunications plan that ensures each prospect will see the product and its keybenefits, and having the communications effort followed up by several phone calls byknowledgeable salespeople.



Incentives are often the best way to open doors if properly targeted. By offering apurchaser added value as a reward for making a purchase, you are most likely toattract people who are interested in your product or service. Just make sure theincentives are appropriate to your product and the audience.

MOTIVATED

EALERS

Getting the commitment of dealers, retailers, and distributors is a complex process thatinvolves building a close relationship with middlemen and partnering with them in a waythat helps improve their business. Warning: Under the Robinson-Patman Act (US) andthe Competition Act (Canada) any promotion offered to large retailers must be offered tosmaller stores on a "proportionately equal" basis.

Incentives work best with smaller companies whose principals enjoy getting specialperquisites based on the quantity of purchases or their willingness to participate in aco-op marketing plan. Large companies, especially mass marketers, often will not

participate. However, some dealers and distributors that would not ordinarilyparticipate in incentive programs will do so if the programs are structured so thattheir company benefits from improved employee performance

Contests/sweepstakes offered to dealers and distributors for putting up displays or otherwise participating in a promotion can also have an impact on smaller companies. It's best to link these efforts with a consumer promotion designed topromote sell-through.

Training, while not a promotion tool, is so important when working with dealers anddistributors that it can't be overlooked. If the people who sell your products or

services don't understand them, you can't expect to get maximum sales productivity.Keep in mind that many middlemen are leery of manufacturer training programs,unless they see a direct benefit for their company.

Event marketing is a proven way to work with dealers, distributors, or retailers thatare looking for a way to increase store attendance or draw attention to their marketing efforts.

INTRODUCE NEW PRODUCTSProduct introductions involve communicating to almost all of your organization's

stakeholders: salespeople, middlemen, consumers, service employees, and evenproduction employees. The challenge is to promote trial by consumers, get the trade tostock or sell the product, and fire up the sales force and virtually everyone else in thecompany.

Sampling is probably the most dramatic, effective and costly way to get your product into the hands of new prospects. Target your giveaway effort to people mostlikely to buy, or many of your costly samples will end up in the trash.



Sweepstakes/Contests can help attract attention, especially if they relatethematically to the product.

Incentives spur product trial, but tread cautiously if you are considering a rebate,coupon, or cash discount. Besides the fact that coupon redemption continues to fall

and generates less and less enthusiasm from retailers, launching a new product withdiscounts can tar it with a low-price image that will undermine your long-termpositioning. An added-value offer, such as gift-with-purchase, can spur trial withoutthat risk but can be costly.

Promotional products can be a highly targeted, cost-effective way to build brandidentify if you select products appropriate to your audience and get them into theright hands.

Displays at retail are critical to new product introductions, but chances are your

dealers or retailers will want special pricing, co-op allowances, or even slotting or listing fees for putting them in the store. Some retailers will give special space tonew products, but they will expect your product to reach a specific threshold of saleswithin a specific time, or out you go.

Event marketing often plays a major role in new-product launches, especially atmalls or public events that attract the desired audience.

INSPIRE "PANTRY LOADING"

When you hear that you are about to get a new competitor, you might want to get your dealers, distributors, and consumers to stock up on your product so that they have noroom in their "pantries" for the competitive product.

Incentives, whether cash, merchandise, or travel, are one of the most commonpantry-loading devices, especially if tied to large, multiple purchases. However,make sure you do not clog your distribution channel with too much product, or it willeventually be dumped by disgruntled distributors or retailers, perhaps to be replacedby your new competitor's products.

Coupons are another means of spurring bulk purchases, as long as you have

retailers that will redeem them.

Rebates provide an alternative approach that does not involve the retailer inadministration.



Continuity plans can help you fend off a competitor, but only if you have a lot of advance notice, since these programs, by definition, take time to launch andimplement.

BUILD BRAND LOYALTY

Contrary to the advice of some advertising and promotion agencies, it takes more thanadvertising and promotion to build loyalty. Consistent value, customer service, andinnovation are the keystones, so design your promotions to draw attention to thesefactors.

Everyday low pr icing continues to inch forward in the automotive and retail arenaand may emerge as a primary strategy once people begin to do a significant amountof their shopping via the Internet.

Frequency marketing programs, such as frequent-buyer programs and continuityplans, work best when competitors' value, service, and innovation are near parity or

when you want to lock in consumers over time. Warning: well-designed frequencyprograms become addictive.

Self-liquidators get consumers involved with your product or service by gettingthem to buy something linked to what you sell. While this marketing tactic does nothave a direct impact on loyalty, it is often part of a long-term process of gettingcloser to the core customer.

Promotional products do not have a direct impact on loyalty either, but theycontribute by reminding the recipient of the sponsor's company.

INCREASE TRIALWhether or not your product or service is new, there are times when you want topromote trial among a new target audience.

Incentives, such as gifts-with-purchase, are a proven, though costly, way of promoting first-time usage

Sampling is the most expensive way to promote trial and obviously isn't feasible for higher-priced products, but is one of the most effective tactics to secure new users

Contests/Sweepstakes can be an inexpensive way to promote trial by gettingconsumers to enter a contest asking questions related to your product. Remember,however, that you cannot require contestants to purchase a product in order toparticipate in the contest or sweepstakes.

ENCOURAGE REFERRALSOne of the most overlooked sales opportunities is customer referrals. Businesspeoplesay they get most of their business by word-of-mouth, yet they do little to promote it.



Incentives and gifts often are used to induce people to recommend a product or

service to a friend. You can easily measure the number of referrals by the quantity of redemptions you get.

Contests/Sweepstakes can be used, but they probably won't generate as many

referrals as a direct incentive, because some people will assume they can't win.

PROMOTE SELL-THROUGHOnce you have successfully sold your products into the appropriate distributionchannels, you want to make sure they sell through to the consumer or end user.

Coupons have declined in favor due to low redemption rates and administrativehassles but remain a viable option in packaged goods.

Rebates provide the same sort of savings to shoppers as coupons without involvingthe retailer. You can put the offer right on the package and let consumers redeem

the rebate at your fulfillment house.

Incentives. Premiums, whether on-pack, delivered by the salesperson, or sentthrough the mail, can promote sell-through. Just make sure the offer appeals to your audience.

ATTRACT PEOPLE TO YOUR TRADE SHOW BOOTHPromotions can help, but only if you've done a good pre-show mailing to prospectiveattendees and provided other essentials: something new or unusual to exhibit, aninviting display, and outgoing people at the booth. In planning your promotion, consider mailing your pre-show promotion piece only to people you reallywant. Otherwise, you might have lots of booth traffic but little time to talk with seriouscustomers.

Contests/Sweepstakes draw crowds but not necessarily qualified buyers. Bescrupulous in your list selection. Most shows sell lists of pre-registered buyers,broken out by category.

Event marketing, such as guest celebrity appearances at your booth or performances by actors, magicians, or musicians, can attract a crowd, if that's your objective. If your true goal is to attract qualified attendees, consider limiting a portionof your event to a pre-invited list.

Incentives, usually consisting of creative, low-cost merchandise, will bring people toyour booth if marketed in advance to selected attendees. One approach is to sendprospects half of the gift they will receive if they show up.



Tie-ins enable you to put on a bigger attendance-building event by sharing the effortwith other exhibitors. But make sure it's clear who's responsible for what, or nothingwill happen.

IMPROVE ATTENDANCE AT EVENTS

The best way to attract people, of course, is to offer the right product to the rightaudience at the right price and make sure everybody who should know about it does.Sometimes, it is not so simple, and sponsors need a boost.

Incentives, such as gifts at the gate, can have a dramatic impact on attendance if you choose an appropriate item-and can afford the cost. Look what happens at theballpark on Bat Day.

Contests/sweepstakes can lure those who are wavering, but you have to offer something big. And, remember, it's illegal to require people to make a purchase in

order to enter a contest or sweepstakes.

INCREASE RESPONSE TO DIRECT MAILINGSYou can try all the gimmicks you want, but nothing works better than the right list, theright offer, and the right timing. Properly executed, though, the right promotion will payits way.

Contest/Sweepstakes can induce people to open their mail and respond, but theydo not guarantee you will attract actual prospects. Select your list well, or you will getlots of entries but few serious prospects.

Promotional products included in direct mail packages increase the cost but alsoimprove the chances that they'll get opened. Again, target your mailing carefully.

Gift-with-purchase offers are more targeted, because they appeal only to thosemost likely to buy.

INCREASE VISIBILITY OF ADVERTISING Advertising clutter and the growing ability of consumers to avoid ads has led advertisersto seek ingenious ways to attract attention.

Contests/sweepstakes are a relatively inexpensive way to amplify your advertising.

You can package an extraordinary sweepstakes or contest prize for less than thecost of the average ad, and a good offer is bound to attract attention. But make surethe offer doesn't dwarf your advertising message. Ideally, it should enhance the adtheme.

Incentives, such as special discounts, rebates, or gift-with-purchase offers, are amore costly way to improve advertising visibility, since they go to all respondents,rather than to just the lucky winner of a contest or sweepstakes.



Promotional products are powerful advertising reinforcers, especially when theyappeal to the target audiences and get into the hands of the right people.

Self-liquidators can draw consumer attention to an ad by offering an especially lowprice on a desirable product, and they carry few costs since their cost is paid for by

the consumer. Keep the offer compelling and easy to communicate.



Tools of Sales Promotion

To increase the sale of any product manufactures or producers adopt differentmeasures like sample, gift, bonus, and many more. These are known as tools or techniques or methods of sales promotion. Let us know more about some of thecommonly used tools of sales promotion.

(i) Free samples: You might have received free samples of shampoo, washingpowder, coffee powder, etc. while purchasing various items from the market.Sometimes these free samples are also distributed by the shopkeeper evenwithout purchasing any item from his shop. These are distributed to attractconsumers to try out a new product and thereby create new customers. Somebusinessmen distribute samples among selected persons in order to popularizethe product. For example, in the case of medicine free samples are distributedamong physicians, in the case of textbooks, specimen copies are distributedamong teachers.

(ii) Premium or Bonus offer : A milk shaker along with Nescafe, mug withBournvita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of onekg. are the examples of premium or bonus given free with the purchase of aproduct. They are effective in inducing consumers to buy a particular product.This is also useful for encouraging and rewarding existing customers.

(iii) Exchange schemes: It refers to offering exchange of old product for a newproduct at a price less than the original price of the product. This is useful for drawing attention to product improvement. µBring your old mixer-cum-juicer andexchange it for a new one just by paying Rs.500¶ or µexchange your black andwhite television with a colour television¶ are various popular examples of

exchange scheme.

(iv) Pr ice-off offer : Under this offer, products are sold at a price lower than theoriginal price. µRs. 2 off on purchase of a lifebouy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on cooler¶ etc. are some of the commonschemes. This type of scheme is designed to boost up sales in off-season andsometimes while introducing a new product in the market.

(v) Coupons: Sometimes, coupons are issued by manufacturers either in the packetof a product or through an advertisement printed in the newspaper or magazineor through mail. These coupons can be presented to the retailer while buying the

product. The holder of the coupon gets the product at a discount. For example,you might have come across coupons like, µshow this and get Rs. 15 off onpurchase of 5 kg. of Annapurna Atta¶. The reduced price under this schemeattracts the attention of the prospective customers towards new or improvedproducts.

(vi) Fairs and Exhibitions: Fairs and exhibitions may be organised at local, regional,national or international level to introduce new products, demonstrate the



products and to explain special features and usefulness of the products. Goodsare displayed and demonstrated and their sale is also conducted at a reasonablediscount. µInternational Trade Fair¶ in New Delhi at Pragati Maidan, which is heldfrom 14th to 27th November every year, is a well known example of Fairs andExhibitions as a tool of sales promotion.

(vii) Trading stamps: In case of some specific products trading stamps aredistributed among the customers according to the value of their purchase. Thecustomers are required to collect these stamps of sufficient value within aparticular period in order to avail of some benefits. This tool induces customers tobuy that product more frequently to collect the stamps of required value.

(viii) Scratch and win offer : To induce the customer to buy a particular productµscratch and win¶ scheme is also offered. Under this scheme a customer scratcha specific marked area on the package of the product and gets the benefitaccording to the message written there. In this way customers may get some

item free as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special tour arranged by the manufacturers.

(ix) Money Back offer : Under this scheme customers are given assurance that fullvalue of the product will be returned to them if they are not satisfied after usingthe product. This creates confidence among the customers with regard to thequality of the product. This technique is particularly useful while introducing newproducts in the market.



20 Tips on Building More Effective Promotions

1. Properly def ine the problem.

- Conduct a thorough review of the situation. This will ensure that the key business

needs are addressed

2. Wr ite consumer promotion objectives.

- Written objectives provide clear direction and identify priorities. They also ensure your

goals are realistic. You can review the results against the objectives to learn important

lessons for the future.

3. Establish an on-going relationship with outside consumer promotion

specialists.

- You will get better work from people who know you, your company, and your products.

The specialists will become more aggressive and insightful in communicating business

opportunities and developing creative ideas.

4. Optimize your budget by using cross-promotion tie-ins as one of your key

promotional vehicles.

- You can now execute the consumer promotion that you did not think you could. Youcould obtain increased presence of your promotion with your consumer and the trade.

All this at a fraction of the cost of doing it alone.

5. Provide your promotion agency with information.

- Research facts, consumer behavior facts, marketing facts all spark ideas. Quality of

information has a direct impact on quality of ideas. Effective promotions are consumer

insight driven.

6. Act as though consumer promotion is important to achieve you business

tar get.



- Promotions are truly driven by brand champions. The managers who believe in the

importance of the promotion will communicate a stronger commitment to all other

departments, especially sales. Execution will be greatly enhanced.

7. Integrate the promotion into an overall marketing effort.

- Consumer promotion has a critical role in: 1) launching new products; 2) introducing

contra-seasonal and holiday campaigns; 3) preempting competitive action and 4)

merchandising at retail. Promotional efforts must work hand-in-hand with all other

marketing programs.

8. Merchandise the promotion

- Convince your consumer at store level by merchandising of the promotion. This is

where they make the final decision. Research shows that eight out of ten shoppers

make their final buying decision while in the store. Of course, the promotion should be

leveraged with the trade for more and larger displays, resulting in incremental volume.

9. Research to learn what works and what does not

- We recommend, when necessary, using cost-effective focus groups to provide

direction and fine-tuning of programs. This is especially useful in planning for future

consumer promotion programs and plans.

10. Look for unique and relevant ideas.

- The consumer is bored of consumer promotions all looking the same. The trade is

looking for innovation. New ideas can break through. The trick is to make them both

unique and relevant to your customers.

11. Insist that both senior marketing and sales management take a personal

interest in the consumer promotions.

- The involvement of senior marketing and sales management will insure total

organizational commitment to the promotion, and will enhance the probability of

success.



12. Make your sales department a full partner in planning and executing your

promotion.

- In most promotions you will increase your impact with the trade by providing your sales

force with effective tools to generate more and larger displays while potentiallystretching their co-op dollars.

- This will truly work if you work side by side with your sales force in planning and

executing the promotion.

13. Have a payoff.

- Make you customers buy your product. Achieve multiple purchases. Have your customers try new uses with your product.

14. Ensure consistency with brand personality

- Every brand and product has associated with it, personality and imagery. A truly strong

promotion will note only be consistent, it will actually reinforce and build this personality

and imagery.

15. Provide enough lead time to execute the promotion

- Time is necessary to allow the trade and your sales department to plan for your

promotion. You will also lower your consumer promotion budgets.

16. Excite the trade

- In speaking to key individuals working within the different trade channels in Canada,

the leaders know that consumer promotions can deliver volume increases, consistent

with their own business objectives. They want to merchandise, so give them the tools to

do a good job for you.

17. Evaluate the promotion once completed.

- Learn from each promotion, what works and what does not work. A formal systematic

evaluation will allow you to continually improve promotional planning.

18. Utilize promotion to reach secondary tar get groups.



- Special packs, group promotions and cross-promotions can all be used to reach a

secondary target group cost effectively.

19. Visit the f ield dur ing promotions.

- See it with your own eyes. Assess the merchandising. Speak to a store manager for his thoughts. Get a gut feeling of consumer response. Be close to your customers. Let

this visit help in your evaluation.

20. Get as excited about promotions as you do advertising.

- Promotions can affect your business in a truly creative and positive way. They can be

fun and exciting. Over a short-term period, consumer promotions can be more effective

in delivering volume than advertising.

Importance of Sales Promotion

The business world today is a world of competition. A business cannot survive if itsproducts do not sell in the market. Thus, all marketing activities are undertaken toincrease sales. Producers may spend a lot on advertising and personal selling. Still theproduct may not sell. So incentives need to be offered to attract customers to buy theproduct. Thus, sales promotion is important to increase the sale of any product. Let usdiscuss the importance of sales promotion from the point of view of manufacturers andconsumers.

From the point of view of manufacturers

Sales promotion is important for manufacturers becauseI. It helps to increase sales in a competitive market and thus, increases profits;

II. It helps to introduce new products in the market by drawing the attention of potential customers;

III. When a new product is introduced or there is a change of fashion or taste of consumers, existing stocks can be quickly disposed off;

IV. It stabilizes sales volume by keeping its customers with them. In the age of competition it is quite much possible that a customer may change his/her mindand try other brands. Various incentives under sales promotion schemes help toretain the customers.

From the point of view of consumers

Sales promotion is important for consumers because

i. The consumer gets the product at a cheaper rate;

ii. It gives financial benefit to the customers by way of providing prizes andsending them to visit different places;



iii. The consumer gets all information about the quality, features and uses of different products;

iv. Certain schemes like money back offer creates confidence in the mind of customers about the quality of goods; and

v. It helps to raise the standard of living of people. By exchanging their old items

they can use latest items available in the market. Use of such goods improvestheir image in society.



Sales Promotion Strategies

There are five types of sales promotion strategies: Push, Pull , or a combination of thetwo are main strategies used in organization:

Push Strategy

A push strategy occurs when sellers of a product are offered incentives to promote theproduct or purchase additional quantities. For example, a ketchup manufacturer mayoffer a grocery retailer a discount or cases of free products if the grocer agrees toadvertise the product in its weekly flier. The grocer may also agree to allocate displayspace in the store. A push strategy involves convincing trade intermediary channelmembers to "push" the product through the distribution channels to the ultimateconsumer via promotions and personal selling efforts. The company promotes theproduct through a reseller who in turn promotes it to yet another reseller or the final

consumer. Trade-promotion objectives are to persuade retailers or wholesalers to carrya brand, give a brand shelf space, promote a brand in advertising, and/or push a brandto final consumers. Typical tactics employed in push strategy are: allowances, buy-backguarantees, free trials, contests, specialty advertising items, discounts, displays, andpremiums.

Pull Strategy

With a pull strategy, the target is the consumer as opposed to the seller. An example of a pull strategy is when a company develops an advertising campaign to launch a new

product. This can create consumer demand for the product, which will force a retailoutlet to stock it. Other methods include placing coupons in the newspaper or mailingfree samples to households. A pull strategy attempts to get consumers to "pull" theproduct from the manufacturer through the marketing channel. The company focuses itsmarketing communications efforts on consumers in the hope that it stimulates interestand demand for the product at the end-user level. This strategy is often employed if distributors are reluctant to carry a product because it gets as many consumers aspossible to go to retail outlets and request the product, thus pulling it through the



channel. Consumer-promotion objectives are to entice consumers to try a new product,lure customers away from competitors¶ products, get consumers to "load up" on amature product, hold & reward loyal customers, and build consumer relationships.Typical tactics employed in pull strategy are: samples, coupons, cash refunds andrebates, premiums, advertising specialties, loyalty programs/patronage rewards,

contests, sweepstakes, games, and point-of-purchase (POP) displays.

Combination Strategy

A combination strategy occurs when the push and pull methods are usedsimultaneously for maximum promotional effect. In addition to providing incentives for aseller to promote a product, a manufacturer will also launch an advertising campaign toentice consumers to purchase the product. Car dealers often provide a good example of a combination strategy. If you pay attention to car dealers' advertising, you will oftenhear them speak of cash-back offers and dealer incentives.

Brand Reinforcement

A brand reinforcement strategy is used as a way to build customer loyalty, which leads

to repeat sales. One common brand reinforcement strategy is the offering of a club

membership where members can get discounts for purchases, as well as perks like free

merchandise or being eligible for special sales that are not available to the general

public.

Building Demand

Sales promotion strategy can involve increasing or building demand for a product. Byadvertising a special limited offer, such as offering 20 percent off the purchase price if

you buy before a certain date, it can create a sense of urgency in consumers, who thengive the product a try. Another way to build demand is to use advertising to show howyour product fills a need in a way that your competition's product does not.



6 STEPS TO STRATEGIC PROMOTION PLANNING

1. REVIEW THE MARKET SITUATION

- Understand the market and your brand¶s current position.

2. IDENTIFY KEY PROBLEMS AND OPPORTUNITIES

- Consider consumer insights.

3. SET THE OVERALL SALES PROMOTION BUDGET

- Available resources will impact on tactic selection.

4. SET SPECIFIC, MEASURABLE, ACHIEVABLE AND COMPATIBLE (SMAC)

SALES PROMOTION OBJECTIVES

- Sales promotion objectives are markedly different from Marketing or Advertising

objectives- Sales promotion objectives are defined in terms of some specific change that will

occur in the market place.

5. DEVELOP INTEGRATED SALES PROMOTION STRATEGIES AND TACTICS

- Consider appropriate strategies and tactics that will allow you to achieve the sales

promotion objectives while building the brand franchise.

6. PREPARE A CRITICAL PATH

- Maximize promotion results through excellence in execution.



Retailing

The Indian consumer could well be crowned King with all economic indicators in theright place. Queuing up for the coronation ceremony are a multitude of globalcompanies that are looking at India as the next consumer market powerhouse. And it

seems to be the retail sector that will give the desi consumer royal status.

In this study I will try to find out the present scenario of retail market in India. Thisproject will give focus on the global scene to retail industry and what will drive thegrowth of industry in the future.

Retailing is the final step in the distribution of merchandise, the last link in supply chain ± connecting the bulk procedures of commodities to the final consumers.

Retailing in India is thoroughly unorganized. There is no supply chain managementperspective. According to a survey b y AT Kearney, an overwhelming proportion of theRs. 400,000 crore retail market is UNORGANISED. In fact, only a Rs. 20,000 croresegment of the market is organized.

From a size of only Rs.20,000 crore, the ORGANISED retail industry will grow to Rs.160,000 crore by 2005. The TOTAL retail market, however, as indicated above will grow20 per cent annually from Rs. 400,000 crore in 2000 to Rs. 800,000 crore by 2005

A study by McKinsey points out that India's market for consumer goods can reach a w$450 billion by 2011 - making it one of the five largest in the world. Further, KPMG in arecent report titled `Consumer Markets in India - the next big thing?' has said: "Indiarepresents an economic opportunity on a massive scale, both as a global base and adomestic market." The report, however, finds that the next leap in the growth of the

consumer market will be spearheaded by the changing dynamics of the retail sector."Companies expect that the next cycle of change in Indian consumer markets will be thearrival of foreign players in consumer retailing. Although FDI remains highly restricted inretailing, most companies believe that will not be for long," says Deepankar Sanwalka,Executive Director and Head - Consumer Markets, KPMG India.

FDI in retail has once again begun to appear imminent following Prime Minister Manmohan Singh's recent interview to McKinsey, in which he expressed confidencethat he would be able to get the Left parties on board on the matter. KPMG is in factgoing ahead with its plans to conduct a series of five road shows in the US and a fewcountries in Europe to hold discussions about the opportunities in India's consumer markets, especially in retail. And the numbers do lend credence to the enthusiasm.

The Economist Intelligence Unit (EIU) country briefing on India, 2005, estimates theretail market in India will grow from $394 billion in 2005 to $608.9 billion in 2009. In fact,KPMG finds that the organized retail sector in India is expected to grow at a higher ratethan GDP growth in the next five years, driven by changing lifestyles, strong incomegrowth and favorable demographic patterns. According to EIU, India currently has morethan five million retails outlets, out of which 96 per cent are smaller than 500 sq. ft. Butthis scenario is changing fast. The structure of retailing is developing rapidly with malls



becoming increasingly common in large cities, and development plans being projectedat 150 new shopping malls by 2008.

Emer ging trends in or ganized retailing

Over the last five years, a number of large business groups such as Tata¶s, RPG,Raheja¶s and Piramal¶s has set up stores/malls and built businesses within retail.Thesem include the Rs1.9bn Food World - a leading supermarket chain set up by RPG;the Raheja¶s Rs1.8bn Shopper¶s Stop - a multi-brand departmental outlet and theCrossroads Mall set up by the Piramal¶s. While many of these initiatives were initiallydriven by the need to use existing real estate, they are beginning to assume thecontours of a serious business today.

Fuel retailers, notably BPCL and HPCL are also expanding their presence from fuelretail to grocery and convenience stores. Suitability of location, optimal utilization of realestate, diversifying business to reduce reliance on the commodity nature of fuel retail

business and improve margins are the key factors that has lead fuel majors to enter intothe retailing.

Also, existing family owned businesses are expanding their businesses. The moresuccessful of them are the Nilgiris - a Bangalore base food retailer, Viveks - a 40-year old Chennai based chain selling consumer durables and Narula¶s - the food chain inNorth India.

Interestingly, manufacturers are also looking for forward integration and are buildingchains around brands. Brands in apparel, footwear and durables have driven the growthof specialty chains and upgraded existing multi-brand outlet.

Theme for a mall

Although the retail sector in India highly fragmented and consists predominantly of small, independent, owner-managed shops, it happens to be the country's secondlargest employer after agriculture. The country is currently witnessing a boom inretailing, thanks mainly on account of an increase in the disposable incomes of middleand upper-middle class households.

More and more corporate houses, including large real estate companies, are nowentering the retail business directly or indirectly. One sign of the modernization of Indianretailing is the rapid growth in the number of speciality malls and theme malls. ThePiramals, Tatas, Rahejas, ITC, S. Kumar's, RPG Enterprises, Aerens, Omaxe andmega retailers like Crosswords, Shopper's Stop and Pantaloon have taken the leadingorganized retailing.

Emer gence of specialty retailing

Though organized retailing is still at a nascent stage - accounting for only around two



per cent of the $180 billion retail market in India - it is likely to touch 10 per cent by theend of this decade. Four product categories have led the organized retailing wave:foods, apparel, lifestyle products, consumer durables and electronics. In recent times,several theme malls such as Gold Souk (jewellery malls), Wedding Mall, Electronic Mall,

Auto Mall, etc catering to specific needs and occasions have been completed or

announced.

Many top developers are now toying with the idea of developing speciality malls.Speciality malls are already a success in the West, whereas the concept is in its infancyin India. One could venture so far as to say specialty and theme based retailing willdrive the growth of organized retailing in India.

ORGAINSED RETAILING

Organized retailing got a leg up during 2004 with the opening of new format stores,rapid growth of existing players, start-up of new-generation shopping malls, the

Government's intention of allowing a certain level of foreign direct investment in retailand the formation of a retailers' association. With consumer sentiment positive duringmost of 2004, it led to substantial spending across a number of categories such asconsumer durables, clothing and lifestyle, automobiles and telecom products. At thebeginning of this decade, organised retailing accounted for a mere $2.9 billion in India.This is only 1.25 per cent of the estimated total retail market. This share has alreadygrown to 2 per cent.Growth projections for retail business vary widely. Some studiesestimate that by 2007, the share of organised retail in the retail pie will jump three timesto reach 5-6 per cent.

Retail in India largest industry accounting for over 10% of the country GDP and around8% of the employment. Retail industry in India is at the cross road. It has emerged asone of the most dynamic and fast paced industries with several player entering themarket. The future is promising the market is growing government policies arebecoming more favorable and emerging technology and facilitating operations.

Some key facts retail in India largest industry accounting for over 10% of the countryGDP and around 8% of the employment.

The market size of Indian retail industry is about US $ 312 billion.



Indian consumption cosmos

During past decades private final consumption expenditure has been the key driver economic growth in India.

consumptionspending

$350 billion

fashionaccessories

5.5%

consumerdurable 4%

furniture3.4%

Health,beauty &pharama

3.8%

Book &music 1.1food 62%

Fashion9.5%

Enterainment 7.9%

Telephone1.8%



The headquartered in Mumbai the company operates over 12 million square feet of retail space as over one thousand stores across 71 cities in India and employees over 35,000 people.

The companies leading formats include Pantaloons a chain of fashion outlet, Bigbazaar, uniquely Indian hypermarket chain, food Bazaar a supermarket chain blends helook, touch and feel of Indian Bazaars with aspects of modern retail like choiceconvenience and quality and control a chain of seamless destination malls.

A layout chart of Big bazaar

LAYOU

T IND

EX

1. HELP DESK

2. KIDS ACCESSORIES

3. JACKETS

4. BABA SUITS

5. LADIES TOPS

6. TRIAL ROOM

7. PILLARS USED FOR DISPLAYING INFORMATION (SIZE CHART, SECTION

DESCRIPTION)

8. WOOLEN CLOTHS FOR KIDS

9. WINTER WEAR

10. KIDS CASUAL WEAR

11. KIDS JEANS AND SHORTS

12. INFANT SHIRTS AND T-SHIRTS

13. MEN ACCESSORIES ± SUNGLASSES, WRIST WATCHES ETC



14. SOFT TOYS

15. HOME DECORATIVE ITEMS

16. MUSIC COUNTER

17. LADIES ETHINIC

18. LADIES WESTERN

19. LADIES FORMALS(OFFICE WEAR)

20. LADIES ACCESSORIES ± LINGERIES

21. LADIES PERFUMERIES

22. LADIES COSMETICS

23. LUGGAGE

24. FOOTWEAR

25. SPORTS

26. SCHEME BASED PROMOTIONAL ITEMS

27. CASH COUNTER

28. HOME FURNISHING (CURTAIN CLOTHS, CARPETS)

29. MEN FORMAL SHIRTS

30. MEN TROUSERS

31. MEN SUITS AND BLAZERS

32. MEN FABRICS

33. MEN ETHINICS

DESCRIPTION

Help Desk ± As you can see from the layout, the Help Desk is located in a place whereeveryone has their first sight that is in front of the entrance. This shows that when aperson enters in to big bazaar it can get all information about the stores of big bazaar



from the person sitting in the help desk. Help Desk uses paging service as a tool for theconvenience of its employees and customers.

Kids Selection ± The kids section is located just at the left corner of the entrance of bigbazaar. In the kid¶s section kid¶s accessories like diapers, trolleys, suckers, water bottlesare available in one part. Kid¶s jackets and baba suits are available in another part. Kidscasual wear (jeans and shorts) are placed in one part of it and infant shirts & t-shirts arealso placed in another part. In this section the pillars are used for displaying informationlike size chart and section description. The apparels are available at a price of Rs59onwards.

Men¶s Selection ± Next to it is the men¶s section that is in the center. It is divided in tofive parts. At one part men formal shirts are available. In other parts men trousers, suitsand blazers, fabrics and ethnics are available respectively. Here the price ranges from aminimum of Rs99 to Rs899.

Ladies Section ± Next to it is the ladies section that is in the extreme right side. The ladiessection is segregated in to seven parts. Ladies section starts from ladies ethnics, ladies westernwear, ladies formals (office wear), ladies accessories ± lingerie¶s, ladies perfumeries, and ladiescosmetics respectively. Here the price of the apparel ranges from Rs99 to Rs1000 approx.

Promotional scheme ± With an add on to the above products there are various other products which are available with a promotional scheme. The various products under thisscheme includes girl t-shirts, infant winter wear etc.

Non-Promotional scheme ± There are various other products available without anypromotional scheme which includes jeans, infant baba suits, infant t-shirts, kids night wear, kids

salwar suits etc.

Sports Store ± At the extreme corner there is a sports store where various kinds of sportitems are available.

Food Bazaar ± The food bazaar is in the 1st floor of the building. Various kinds of fooditems, fruits and vegetables are available there. Sitting arrangements are well made so thatpeople can sit and take tea, coffee or snacks or any other food item and can relax.

Cash Counter ± The cash counter is located just near the exit



BOARD OF DIRECTORS

Mr. Kishore Biyani, Managing Director

Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief

Executive Officer of Future Group.

Mr. Gopikishan Biyani, Wholetime Director

Gopikishan Biyani, is a commerce graduate and has more than twenty years of experience in

the textile business.

Mr. Rakesh Biyani, Wholetime Director

Rakesh Biyani, is a commerce graduate and has been actively involved in category

management; retail stores operations, IT and exports. He has been instrumental in the

implementation of the various new retail formats.

Mr. Ved Prakash Arya, Director

Ved Prakash Arya, is an engineer by training and is a graduate of the Indian Institute of

Management, Ahmedabad. Prior to joining Pantaloon Retail, he was the CEO of Globus.



Mr. Shailesh Har ibhakti, Independent Director

Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a Certified Internal

Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered Accountants and

past president of Indian merchant Chambers. He is on the Board of several Public Limited

Companies, including Indian Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc.

He is on the Board of Company since June 1, 1999.

Mr. S Doreswamy, Independent Director

S. Doreswamy, is a former Chairman and Managing Director of Central Bank of India and

serves on the board of DSP Merrill Lynch Trustee Co and Ceat Limited

Dr. D O Koshy, Independent Director

D. O. Koshy, holds a doctorate from IIT, Delhi and is the Director of National Institute of Design

(NID), Ahmedabad. He has over 24 years of rich experience in the textiles and garment industry

and was instrumental in the setting up of NIFT centres in Delhi, Chennai and Bangalore. He is a

renowned consultant specializing in international marketing and apparel retail management.

Ms. Anju Poddar, Independent Director

Anju Poddar, holds a Bachelor of Engineering from University of Oklahoma and is a Director,

NIFT, Hyderabad chapter. She also serves on the board of Maharishi Commerce Ltd and

Samay Books Ltd,

Ms. Bala Deshpande, Independent Director



Bala Deshpande, is Independent Director, Pantaloon Retail (India) Ltd. and also serves on the

boards of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing

Ltd,

Mr. Anil Har ish, Independent Director

Anil Harish, is the partner of DM Harish & Co. Associates & Solicitors and an LLM from

University of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bank

and Hinduja TMT,

Major Milestones

1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons

trouser, India¶s first formal trouser brand.

1991 Launch of BARE, the Indian jeans brand.

1992 Initial public offer (IPO) was made in the month of May.

1994 The Pantaloon Shoppe ± exclusive menswear store in franchisee format launched

across the nation. The company starts the distribution of branded garments through

multi-brand retail outlets across the nation.

1995 John Miller ±Formal shirt brand launched.

1997 Pantaloons ± India¶s family store launched in Kolkata.

2001 Big Bazaar, µIs se sasta aur accha kahi nahin¶ - India¶s first hypermarket chain

launched.

2002 Food Bazaar, the supermarket chain is launched.



2004 Central ± µShop, Eat, Celebrate in the Heart of Our City¶ - India¶s first seamless

mall is launched in Bangalore.

2005 Fashion Station - the popular fashion chain is launched

2006 Future Capital Holdings, the company¶s financial arm launches real estate funds

Kshitij and Horizon and private equity fund In division. Plans forays into insurance and

consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe

Factory, EZone, Depot

and futurebazaar.com are launched across the nation. Group enters into joint venture

agreements with ETAM Group and Generali.

2007- future group cross $1 billion mark.

2008- future group holding becomes the second group company to make a successful

initial public offering in the Indian capital market.

MAJOR INDIAN RETAILERS

The low-intensity entry of the diversified Mahindra Group into retail is unique because it

plans to focus on lifestyle products. The Mahindra group is the fourth large Indian business

group to enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group, and

Bharti Enterprises Ltd. The other three groups are focusing either on perishables and groceries,

or a range of products, or both.

RPG Retail-Formats: Music World, Books & Beyond, Spencer¶s Hyper, Spencer¶s Super, Daily

& Fresh

Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station,

Brand Factory, Depot, aLL, E-Zone etc.



The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark, and Titan

Industries with World of Titans showrooms, Tanishq outlets, Chroma.

K Raheja Corp Group-Formats: Shoppers¶ Stop, Crossword, Hyper City, In orbit

Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand

stores.

Pyramid Retail-Formats: Pyramid Megastore, TruMart

Nilgir i¶s-Formats: Nilgiri's¶ supermarket chain

Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.

Tr inethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain

Vishal Retail Group-Formats: Vishal Mega Mart

BPCL-Formats: In & Out

Reliance Retail-Formats: Reliance Fresh

Reliance ADAG Retail-Format: Reliance World

German Metro Cash & Carry

Shopr ite Holdings-Formats: Shoprite Hyper



Big Bazaar: Is se sasta aur acha kahin nahin

Big bazaar is the company¶s foray into the world of hypermarket discount stores, thefirst of its kind in India. Price and the wide array of products are the USP¶s in BigBazaar. Close to two lakh products are available under one roof at prices lower by 2 to60 per cent over the corresponding market prices. The high quality of service, goodambience, implicit guarantees and continuous discount programmes have helped inchanging the face of the Indian retailing industry. A leading foreign broking housecompared the rush at Big Bazaar to that of a local suburban train.

Food Bazaar ± Wholesale pr ices

Food Bazaar¶s core concept is to create a blend of a typical Indian Bazaar andInternational supermarket atmosphere with the objective of giving the customer all theadvantages of Quality, Range and Price associated with large format stores and alsothe comfort to See, Touch and Feel the products. The company has recently launchedan aggressive private label programme with its own brands of tea, salt, spices, pulses,



jams, ketchups etc. With unbeatable prices and vast variety (there are 42 varieties of rice on sale), Food Bazaar has proved to be a hit with customers all over the country .

Big Bazaar

Big Bazaar is a chain of shopping malls in India, owned by the Pantaloon Group andwhich work on Wal-Mart type economies of scale. They have had considerable successin many Indian cities and small towns. Big Bazaar provides quality items but at anaffordable price. It is a very innovative idea and this hypermarket has almost anythingunder one roof«.Apparel, Footwear, Toys, Household Appliances and more. Theambience and customer care adds on to the shopping experience.



Is Se Sasta Aur Accha Kahin Nahin !!

What's in store for you at Big Bazaar?

1,70,000 products at 6- 60 % discount.

At Big Bazaar, you will get : A wide range of products at 6 ± 60 % lower than the

corresponding market price, coupled with an international shopping experience.

If you deal in the categor ies mentioned there's a big deal of success for you.

Products available in Big bazaar

Food Bazaar¶s core concept is to create a blend of a typical Indian Bazaar and Internationalsupermarket atmosphere with the objective of giving the customer all the advantages of Quality,Range and Price associated with large format stores and also the comfort to See, Touch andFeel the products.

'FOOD BAZAAR' a division of Pantaloon Retail India Ltd is a chain of large supermarkets with adifference. It was flagged off in April'02.With store sizes ranging from 8,000 sq ft to 15,000 sq. ft.in Mumbai (two stores), Kolkata, Bangalore & Hyderabad, it is opening more stores at Gurgaon(Delhi), New Bombay & Nagpur. It currently caters to over 1.2 million customers every dayacross 4 outlets in India and is soon set to expand and double this figure across 8 outlets allover the country by June 2003.Food Bazaar offers the Indian consumer the best of Western and Indian values. The westernvalues of convenience, cleanliness and hygiene are offered through pre packed commodities

Apparel and Accessories for Men, Women and Children.

Baby Accessories.

Cosmetics

Crockery

Dress Materials Suiting & Shirting

Electrical Accessories

Electronics

Footwear

Toys

Home Textiles

Home Needs

Household Appliances

Household Plastics

Hardware

Home Decor

Luggage

Linens

Sarees

Stationery

Utensils & Utilities



and the Indian values of "See- Touch- Feel" are offered through the ³Mandi´ atmospherecreated by displaying staples out in the open, all at very economical and affordable priceswithout any compromise on quality. This satisfies the Indian consumer and comforts her beforemaking her final buying decision. At other super markets, the consumer is deprived of thisfactor.

Truly the Indian consumer now agrees with Food Bazaar: "Ab Ghar Chalaana kitna Aasaan´.This positioning platform of Food Bazaar is evident from the higher discounts and the wholesaleprice-points which is below MRP.

Food Bazaar represents the company¶s entry into food retail and is targeted across allclasses of population. Food Bazaar replicates a local µmandi¶, to provide the muchimportant µtouch & feel¶ factor which Indian housewives are used to in the local bazaar.Food Bazaar has over 50,000 stock keeping units which cover grocery, FMCGproducts, milk products, juices, tea, sugar, pulses, masalas, rice wheat etc, besidesfruits and vegetables. All products are sold below MRP and discounts range between2% to 20%. Fruits and vegetables are sold at prices comparable to wholesale prices.



Sales Promotion Activities by Big Bazaar

There different sales promotional activities done by Big Bazaar. They create differentscheme on different occasion which attract customer and is beneficial for them highly,Following are the different scheme of Big Bazaar create for sales promotion:

School Jao khushi khushi:

o Discount on all requirement like school bags, Lunch box, Water bottles.

o Win pencil case with every purchase worth Rs.500 & above.

o Send us your experience of the µBest day you had in school¶ ± the mosthumorous one will gate free shopping trip worth Rs.1000/-

o Lucky Draw- Shop for Rs. 1000 & above, drop in your kids name into our dropbox ± 10 lucky kids will get 30% off on an NIIT course.

o Shop for Rs. 500 & above, drop in your kids painting the best painting will getsponsors for an art course.

Khushi ki Barsat:

o ³Discount ki Barish´ ± various discounts across the board.

o Special discounts on Raincoats and Umbrellas.

o Lucky Draw- Shop for Rs. 1000 & above, drop in your name into our drop box &you could be one of the 3 families to enjoy rain in Goa.

o Purchase goods worth Rs 500 ± complete the slogan ± I love the rain in Mumbaibcoz« & win you own customized umbrella ± get your friends and familyphotograph screen printed on it.

o Steal a deal:

o Each object will have their individual price-tags.

o The consumer bargains on the MRP with counter sales girl.

o The counter sales girl will be given a ³lowest bargain´ slip for each piece of

merchandise.

o The consumer who is able to match the best ³low bargain´ walks away

with his goodies.

Happy Father¶s Day:

o Get caught shopping with shopping with your Dad on Father¶s Day (20th June) &get 20% off on total bill.

o Shop for Rs 500 & above ± submit a picture if your Dad & you ± the best pair ±wins a complementary dinner at Copper Chimney.



o Make purchase worth Rs 300 & above & fill in line on what your Dad means toyou & win ticket to the latest blockbuster movie.

Doston ke saath khushiya manao:

o Come shopping with your friends ± ³more the merrier´ ± shopping with one friend

entitles you to a 10% discount/ 2 friend 20% discount etc. on the total bill.

o Every walks-in gets a free friendship band.

o A friend indeed ± make any purchase at Big Bazaar on friendship Day & Drop inyour best friends name ± he could win the lucky draw ± A Car!!

o Special treatment for you & your friend ± make purchases worth Rs 500 & get afree message, tattoos, horoscope etc.

Azadi ke khushi mein:

o

Discount on various categories on that weekend.o A booklet of discount across various eateries & other similar joints.

o Vote for your favorite freedom fighter ± if your choice matches ours ± get acoupon that entitles you to higher discount.

o Walk in wearing colors of tri-colors and win surprise gift.

o Fill in slogan which say why you love India so much ± the best entry wins achance gets their entire shopping bill refunded.

Raksha Bandhan:

o Demarcate separate areas for gifts ( Women¶s categories)

o A customer can pick up anything from these demarcated areas as gift ay adiscounted rate.

Khushiyan Navratri ki:

o Celebrate the figure 9 ± get discounts across the board (in multiples of 9) for the9 days of Navratri.

o Buy 9 item of any category & get the 10 th one free eg. Buy 10 glasses & the 10th

one free.

o Win passes to Falguni Pathak shows on purchase of Rs. 1000 & above.

Diwali Hungama:

o Open for longer duration.

o Bumper discount across board.



o A free set of 2 Diyas all purchase of Rs 300 & above.

o Tie up with mithaiwala ± for all purchase worth Rs 1000 & above get a 40%discount on all the mithai purchased.

o Purchase goods worth Rs 500 & above, send us the recipe of your secrete mithai

& the best judge recipe gets a complete set of Sanjeev Kappor¶s cook books.

o Diwali mano abroad ± win a lucky draw on purchase worth Rs 1000.

Bring Joy this Christmas:

o Discount across board.

o Your special Christmas gifts from Big Bazaar ± on purchase worth Rs 1000 &above get a special surprise gift.

o Christmas Card Design Contest : An annual ³ design next year¶s Christmas card

for us ³contest for children. The winner gets a gift voucher worth Rs 500.o A Christmas party at Big Bazaar

o Play game like dart etc ± where in the figure you touch is equal to thediscount that you get on your bill amount.

o Elves giving out balloons etc to little kids

o The in store Santa that gives out little tokens on Christmas.

Banto Khushiyan:

o Combi deals:o Buy groceries and provisions worth Rs 1500 and you get 30% off on your

kids clothes (minimum purchase of Rs 1000).

o Buy clothes for your kids for Rs. 500 and you get a Kurta & Duppata of

your choice for 20% less.

o Family Value:

o Women + Kid deal (e.g. Buy SKD worth Rs. 1200/- you get a 50%

discount on kids clothes)

o Women + Man deal (e.g. Buy SKD worth Rs. 1200/- you get a 50%

discount on men¶s appareals)

o Happy Hour:

o 1 hour a day ± where all the offers / discounts gets hiked up e.g. Buy x &

get Rs 10 off would become Rs 15 off.



o Complete the look:

o Buy a sree get a matching blouse piece bindi at discount.

o Buy a kurta ± get matching earrings free.

o Mystery Shopper

o One person everyday gets tagged the mystery shopper i.e. either the 100th

person to walks through the door or the 1st person wearing all red ± this

person gets a 50% discount on the total bill.

o Exchange Counter ± all year round

o Applicable on clothes / shoes & utensils

o Get your old stuff & a get price off on the new.

o Apke kismet mein hai khushi

o Scratch card based.

o You get 60 secs to run and pick up all the stuff you can and come back to

the billing counter.

o All that you pick up ± you keep!!

o Win an assured gift :

o On purchase of worth Rs 1000 you can chose any of the ten items listed in

the gift list & take home as a free gifts.

o Can also be used to push categories that are not moving e.g. Buy 3

trousers from Fashion Bazaar & take home any of the listed gifts.

o Auction:

o Issue play money with all purchases made within 3-6 month period.

o Customer bid on merchandise with their accumulated faux money.

o Ladies Day:

o Kiddies Day:

Khushiyan hi Khushiyan:

o A loyalty point program ± where every purchase gets rewarded.

o The loyalty points collected get converted to the gift voucher every time they

reach the 500 mark.



o Each gift voucher is accompanied with another complimentary gift voucher worth

Rs 100.

o Tracking of the consumer¶s shopping basket.

o Personalize offers based on the above.

o Surprise them on occasions like Birthdays & anniversaries wherein they can avail

of special discounts / offers.

o From the Big Bazaar Club ± based on an analysis of the more revenues

generating customers. Club members will be entitled special privileges like home

delivery, previews for various promotion, higher discounts, discount booklets,

previews to new products coming in store etc.

final sales promo bb

Documents