1

CONSUMER BEHAVIOUR

A report submitted to Delhi Business School, New Delhi

as a part fulfillment of Full time industry integrated

MBA + Post Graduate Program in Entrepreneurship &

Business.

Submitted to: Dr. Submitted By:

Devendra Pathak Name of Student: Sonam
Srivastava
Director Academics,
Roll No. : 86
Delhi Business School,
Batch:Spring batch(07-
New Delhi. 09)

University: Delhi Business

School(PTU)

Delhi Business School

B-II/58, M.C.I.E., Mathura Road, New Delhi
Website : www.dbs.edu.in
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ACKNOWLEDGEMENT

I would like to acknowledge and extend my heartfelt

gratitude to the following persons who have made the
completion of this possible project:

Our Dean,DR.Devendra Pathak,for his encouragement

and support.

Dr.Ravi Prakash, my project mentor , for his

understanding and assistance, assisting in the
collection of the topics for the project.

Ms.Sweta Seth,(MIS faculty), for the constant

reminders and much needed motivation and for the
help and inspiration she extended.

All the faculty of MBA (Delhi business school) was very

supportive and helped me in anyway.

The staff at BigBazaar turned to be very helpful in

providing me the informations about the company and it
operations.

And to God , who made all things possible.

Sonam Srivastava
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DECLARATION BY STUDENT

I hereby declare that the mentioned information in the

project is correct up to my knowledge and I bear the
responsibility for the correctness of the mentioned
particulars.

SONAM SRIVASTAVA
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TABLE OF CONTENTS

Contents Pages
1. Introduction ……………………………… 8

2. Objective of Research Study ……………10

2.1. Market analysis ……………………….10

3. Research Methodology ……………………11

3.1. Source of data …………………………11

3.1. a. Survey method ………………11

3.1. b. Cross sectional survey…….11

3.2. Sample size …………………………….11

3.3. Time taken ……………………………..11
3.4. Tools and Techniques of analysis.12

4. Literature Studies ………………………....15

4.1. Company profile ………………………15
4.2. Diagram ………………………………….17
4.3. About us …………………………………18

4.3. a. Group vision ………………….18

4.3. b. Group mission ……………….18
4.3. c. Core values ……………………19

4.4. Introduction to big bazaar...........20

4.5. Big bazaar promises …………………21
4.6. Portfolio management ………………24
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4.7. Product line …………………………….26

4.8. Marketing strategy ………………….27

4.8. a. Segmentation ……………….27

4.8. b. Targeting ……………………..28
4.8. c. Positioning …………………...29
4.8. d. Marketing mix ……………….31
4.8. e. Retail mix ……………………..35
4.8. f. Promotion mix ………………36

4.9. Distribution of revenue earner ….44

4.10. Competitors ………………………….46
4.11. Major problems ……………………..59
4.12. Future prospects ……………………51

5. Work assigned by the company ……….54

5.1. Business objective ……………………54
5.2. Operating the scheme ………………54
5.3. Working ………………………………….55

5.3. 1. To know consumer

Behavior………………………..55
5.3. 2. To get the right positioning
Done……………………………..58
5.3. 3. To maintain stock on floor..59
5.3. 4. Update the prices …………. .59
5.3. 5. Discount criterion …………. .59
5.3. 6. Inventory control ………… 59
5.3. 7. Work on barcode tender …..61

6. Survey……………………………………………62

6.1. Survey analysis…………………………62

6.2. Trend analysis…………………………..68
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6.3. Conjoint analysis……………………….69

7. General survey and consumer behavior

analysis for pack of two ………………………79

8. Conclusion ……………………………………..92

9. Bibliography …………………………………..93

10. Annexure ……………………………………. 94

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1. INTRODUCTION
.

RETAIL INDUSTRY
In the Indian retailing industry, food is the most dominating
sector and is growing at a rate of 9% annually. India retail
industry is progressing well and for this to continue
retailers as well as the Indian government will have to
make a combined effort. The branded food industry is
trying to enter the India retail industry and convert Indian
consumers to branded food. Since at present 60% of the
Indian grocery basket consists of non- branded items.
India retail industry is expanding itself most aggressively;
as a result a great demand for real estate is being created.
Indian retailers preferred means of expansion is to expand
to other regions and to increase the number of their outlets
in a city. It is expected that by 2010, India may have 600
new shopping centers.

The Indian retail market, which is the fifth largest retail

destination globally, according to industry estimates is
estimated to grow from the US$ 330 billion in 2007 to US$
427 billion by 2010 and US$ 637 billion by 2015.
Simultaneously, modern retail is likely to increase its share
in the total retail market to 22 per cent by 2010.

Continuing the robust growth of the organized retail in

India, according to the Credit Rating and Information
Services of India, the industry raked in US$ 25.44 billion
turnover in 2007-08 as against US$ 16.99 billion in 2006-
07, a whopping growth rate of 49.73 per cent.
 10

India retail industry is the largest industry in India, with an

employment of around 8% and contributing to over 10% of
the country's GDP. Retail industry in India is expected to
rise 25% yearly being driven by strong income growth,
changing lifestyles, and favorable demographic patterns.

"The story is not about us, but this story is about the
people who visit our stores. This is a proud moment for
India."

One of the biggest retail here in India we know is Kishore

Biyani’s big bazaar. The company ended 2007-08 with
Rs5048crore in revenue. Biyani's and Big Bazaar's, march
comes at a time when several new retailers are slowing
expansion, reducing the number of outlets, effecting
layoffs, even exiting the business.

By 2011, he claims, there will be 300 Big Bazaars, and

Pantaloon Retail (India) Ltd, his flagship, will have revenue
of Rs13000crore.

Thus here we will know about the company profile,

operations and also about the consumer behavior towards
the schemes, discount, etc which are offered by the store
to facilitate customers.
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2. OBJECTIVE OF RESEARCH STUDY

2.1. MARKET ANALYSIS

The research objectives of this project are:-

a. Marketing activities and operational activities are always
driven with an aim of getting sale increased with innovate ideas.
Offers are designed in such a manner that customers are made
to go and experience the shopping.
Marketing also gives some offer to increase the bill size, taking
in consideration the on going fashion in vogue.
b. Marketing Strategies targeting the customer:
Advertising Strategy –Understanding the media consumption
habits of the customer.
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3. RESEARCH METHODOLOGY

3.1. SOURCE OF DATA

a. SURVEY METHOD
Data are usually collected through the use of
questionnaires. The data is collected by mean of simple
survey done in the retail store of the customers.
b. CROSS-SECTIONAL SURVEYS
Cross-sectional surveys are used to gather information on a
population at a single point in time.
The customers were surveyed to find out their consumption
behavior for the products in various schemes.
A different cross-sectional survey questionnaire might try to
determine the relationship between two factors, like
religiousness of parents and views on Internet filtering.

3.2. SAMPLE SIZE

A sample size of 90 was considered in this project. That is, a

total number of respondents were 90 for survey.

3.3. TIME TAKEN

The time of research was 1 month and surveys of some
people were done daily. The research was based on
the change in consumption of customers for the
products in scheme.
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3.4. TOOLS AND TECHNIQUES OF ANALYSIS

a. PERSONAL INTERVIEW

Personal interviews are highly susceptible to inadvertent

“signaling” to the respondent. The cumulative effect of
several facial expressions is likely to be felt. By the use of
this method the facial expressions tell about how a
customer feels about the product, and his knowledge
about the product in the scheme.
This will let us know following:-

1. The reason could be known that why a product is

not liked and what are shortcomings in the
product?
2. The preference for the product of the customer?
3. Who are the frequent customers?

b. PROJECTIVE TECHNIQUES

Projective techniques are used when a consumer may feel

embarrassed to admit to certain opinions, feelings, or
preferences. It has been found that in such cases, people
will tend to respond more openly about “someone else.”
Thus, we may ask them to explain reasons why others not
buying the product, or why other customers are not willing
to take advantage of the scheme, or what changes they
want should be there for their convenience.

c. OBSERVATION OF CONSUMER

Observation of customers is often a powerful tool. Looking

at how consumers select products may yield insights into
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how they make decisions and what they look for.

Observing consumers, tells about:-

1. What is he looking in the product?

2. Is he brand loyal?
3. Is he more or less price sensitive?
4. Is he more interested in packaging,
manufacturing, etc.
5. Whether his taste has shifted?

Observation may help us determine how much time

consumers spend comparing prices, or whether nutritional
labels are being consulted.

d. SCANNER DATA

Many consumers are members of supermarket “clubs.”

They are provided with customer card which they have to
present this when they make purchases; consumers are
often eligible for considerable discounts on selected
products.

Nearly all retailers in the area usually cooperate. It is now

possible to track what the consumer bought in all stores
and to have a historical record.

The consumer’s shopping record is usually combined

with:-
1. Demographic information (e.g., income, educational
level of adults in the household, occupations of
adults, ages of children, and whether the family owns
and rents).
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2. The consumption quantity could be know about

the product which is used in good quantity?

e. PHYSIOLOGICAL MEASURES
Physiological measures are occasionally used to examine
consumer response. It helps to know:-
Advertisers may want to measure a consumer’s level of
arousal during various parts of an advertisement?
In retail stores paging is done at a interval of time of
schemes and discounts so that people are made aware
and they can be provoked to buy.
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4. LITERATURE STUDIES

4.1. COMPANY PROFILE

Pantaloon Retail (India) Limited, is India’s leading retailer that

operates multiple retail formats in both the value and lifestyle
segment of the Indian consumer market. Headquartered in
Mumbai (Bombay), the company operates over 10 million
square feet of retail space, has over 1000 stores across 61
cities in India and employs over 30,000 people.

The company’s leading formats include Pantaloons, a chain of

fashion outlets, Big Bazaar, a uniquely Indian hypermarket
chain, Food Bazaar, a supermarket chain, blends the look,
touch and feel of Indian bazaars with aspects of modern retail
like choice, convenience and quality and Central, a chain of
seamless destination malls. Some of its other formats include,
Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station,
all, Top 10, m bazaars 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.
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Pantaloon Retail is the flagship company of Future Group, a

business group catering to the entire Indian consumption
space.

Future Group is one of the country’s leading business groups

present in retail, asset management, consumer finance,
insurance, retail media, retail spaces and logistics. The group’s
flagship company, Pantaloon Retail (India) Limited operates
over 10 million square feet of retail space, has over 1,000
stores and employs over 30,000 people.

Future Group is present in 61 cities and 65 rural locations in

India. 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.

Future Group companies includes, Future Capital Holdings,

Future Generally India Indus League Clothing and Galaxy
Entertainment that manages Sports Bar, Brew Bar and Bowling
Co. Future Capital Holdings, the group’s financial arm, focuses
on asset management and consumer credit. It manages assets
worth over $1 billion that are being invested in developing retail
real estate and consumer-related brands and hotels.

The group’s joint venture partners include Italian insurance

major, Generali, French retailer ETAM group, US-based
stationary products retailer, Staples Inc and UK-based Lee
Cooper and India-based Talwalkar’s, Blue Foods and Liberty
Shoes.
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4.2. PANTALOON RETAIL INDIA LTD.

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FOOD
BAZAA
R

CENTRA
L

PANTAL
OON
BIG FASHION
BAZAAR STATION

E-ZONE
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4.3. ABOUT US

4.3. a. GROUP VISION:

Future Group shall deliver Everything, Everywhere,

Every time for Every Indian Consumer in the most
profitable manner.

4.3. b. 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.

4.3. c. 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.
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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.
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4.4. INTRODUCTION TO BIG BAZAAR

a. It is a chain of shopping malls in India currently with 31 outlet

owned by Kishore Biyani’s Pantaloon Group.
b. Big bazaar is not just another hypermarket, but also provides
the best products at the best price.
c. It Reflect the look and feel of Indian bazaars at their modern
outlets. All over India, Big Bazaar attracts a few thousand
customers on any regular day.
d. Big Bazaar is a chain of department stores in India,
currently with 92 stores. It is owned by the Pantaloon Retail
India Ltd, Future Group. It has considerable success in many
Indian cities and small towns.
e. A department store is a retail establishment which
specializes in selling a wide range of products without a single
predominant merchandise line. Department stores usually
sells products including apparel, furniture, appliances,
electronics, and additionally select other lines of products such
as paint, hardware, toiletries, cosmetics, photographic
equipment, jewelery, toys, and sporting goods.
The idea was pioneered by entrepreneur Kishore Biyani, the
CEO of Future Group. Currently Big Bazaar stores are located
only in India. It is the biggest and the fastest growing chain of
department store and aims to have 150 outlets by June 2009
and 350 stores by the end of year 2010.
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4.5. The Big Bazaar promise

a. MANUFACTURER’S WARRANTIES ON ALL
PRODUCTS:
Big Bazaar promises to sell only the original products from
the authorized dealers; so that all applicable products
carry the original manufacturer’s warranty. To service
any product purchased at Big Bazaar, customer can
visit the authorized service centre of the manufacturer.
The invoice accompanying the product is the warranty
document.
b. GUARANTEED DELIVERY:
Big Bazaar guarantees to deliver the exact product that has
selected, without defects. In case of receiving a different
product, or if the product is damaged in transit, the customer
should contact it within the stipulated time period and Big
Bazaar will ensure that it is replaced or refunded.

c. SECURE PAYMENT:

It commits to ensure that no payment misuse happens, so

we work with banks and payment gateways to ensure that
your information is protected. Payments are protected
both by it and by the policies of customer’s bank, and the
chances of fraud in these channels are actually very low.
Big Bazaar openly publishes its office addresses and is
part of India’s largest retail company with a presence all
over India – so you know how to contact us in person, if
required.
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d. OUR SIMPLE 15-DAY RETURN POLICY:

If customer has purchased something at Future Bazaar and the
product did not meet its expectations or does not fit to his
needs, then it can return the product to us; no questions asked,
as long as it is in its original packaging and accompanied by its
invoice. We will even make the return process simple for you –
just contact our customer support and we’ll arrange to pick up
the product from your home. Alternately, you can drop it off at
the nearest Big Bazaar.

e. PROMPT CUSTOMER SUPPORT:

Our customer support is manned by dedicated call centre
personnel, who can take decisions and resolve your problems.
They are eager to solve your problems and are aware of the
processes and means to handle them. In case they cannot
solve the problem at their end, they will trigger the required
action on your behalf or advise you the best possible method to
a successful fulfillment of all your queries/issues. Be assured
that when you call us, your call is being taken seriously.
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BIG BAZAAR PROMISES-------

GUARANT
E-ED
DILIVERY

PROMPT
15 DAYS
CUSTOME-
RETURN
R
POLICY
SUPPORT
BIG
BAZAAR

MANUFAC
T-URER’S
SECURE
WARRANT
PAYMENT
Y
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4.6. PORTFOLIO MANAGEMENT

The Future Group has built a strong portfolio of some of
the fastest growing consumer brands in India. This
activity is led through Future Brands India Limited, a
specialized subsidiary company that was set up to
create and build powerful brands that address the
aspirations of the new Indian consumer.

Some of the key brands in this portfolio include, John

Miller, Lombard, Bare, DJ&C, Buffalo and RIG in the
fashion and apparel space. Dream line, present in the
home segment, offers a wide range of products in
kitchenware, bed & bath linen, and Home Décor
categories.
In the food and home care segment brands include Tasty
Treat, Premium Harvest, Fresh & Pure, Care Mate and
Clean Mate.

In consumer durables and electronics space, the

group’s brands include Koryo and Sensei.
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S.
M

ADDITIONAL
STORE
MANAGER

DEPARTMENT
MANAGER

SUB- DEPARTMENT MANAGER

TEAM LEADER

TEAM MEMBER
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4.7. PRODUCT LINE

Here, one finds over 170,000 products under one roof that
cater to every need of a family, making Big Bazaar
India’s favorite shopping destination. Where Big
Bazaar scores over other stores is its value for money
proposition for the Indian customers. Big Bazaar, one
finds a huge variety of products to select from with a
good price and quality. 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 surprisingly low prices.
In recent years, Big Bazaar has adopted value pricing
in which they win loyal customers by charging a fairly
low price for a high – quality offering. However,
consistent low price for the products is not only the
universally desired characteristic.
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4.8. MARKETING STRATEGY

PROCESS FOLLOWED
Segmentation, targeting, and positioning together
comprise a three stage process. We
a. Determine which kinds of customers exist,
b. Select which ones we are best off trying to serve,
c. Implement our segmentation by optimizing our
products/services for that segment and communicating
that we have made the choice to distinguish ourselves
that way.

4.8. a. SEGMENTATION:
Segmentation involves finding out what kinds of
consumers with different needs exist. In the auto
market, for example, some consumers demand speed
and performance, while others are much more
concerned about roominess and safety. In general, it
holds true that “You can’t be all things to all people,”
and experience has demonstrated that firms that
specialize in meeting the needs of one group of
consumers over another tend to be more profitable.

Several different kinds of variables can be used for

segmentation:-
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1. Demographic variables essentially refer to personal statistics

such as income, gender, education, location (rural vs. urban,
East vs. West), ethnicity, and family size. Campbell’s soup, for
instance, has found that Western U.S. consumers on the
average prefer spicier soups—thus, you get a different product
in the same cans at the East and West coasts. Facing flat
sales of guns in the traditional male dominated market, a
manufacturer came out with the Lady Remmington, a more
compact, handier gun more attractive to women. Taking this a
step farther, it is also possible to segment on lifestyle and
values.”
2. Some consumers want to be seen as similar to others, while
a different segment wants to stand apart from the crowd.

3. Another basis for segmentation is behavior. Some

consumers are “brand loyal”—i.e. they tend to stick with their
preferred brands even when a competing one is on sale. Some
consumers are “heavy” users while others are “light” users. For
example, research conducted by the wine industry shows that
some 80% of the product is consumed by 20% of the
consumers—presumably a rather intoxicated group.

4. One can also segment on benefits sought, essentially

bypassing demographic explanatory variables. Some
consumers, for example, like scented soap (a segment likely to
be attracted to brands such as Irish Spring), while others prefer
the “clean” feeling of unscented soap (the “Ivory” segment).
Some consumers use toothpaste primarily to promote oral
health, while another segment is more interested in breathe
freshening.

4.8. b. TARGETING:

1. In the next step, we decide to target one or more segments.

Our choice should generally depend on several factors:-
 First
 33

How well are existing segments served by other

manufacturers? It will be more difficult to appeal to a segment
that is already well served than to one whose needs are not
currently being served well.

 Secondly

How large is the segment, and how can we expect it to grow?

 Thirdly

Do we have strengths as a company that will help us appeal

particularly to one group of consumers?

2. Big Bazaar targets higher and upper middle class

customers.
3. The large and growing young working population is a
preferred customer segment.
4. Big Bazaar specifically targets working women and
home makers who are the primary decision makers.
It is part of Big Bazaar’s new Guerrilla Marketing
Strategy.
5. Guerrilla force is divided into small groups that
selectively attack the target at its weak points. Guerilla
marketing is just one of the strategies and surely one
can learn a lot from the ongoing battle, especially
people interested in marketing/marketing techniques.

4.8.c. POSITIONING:
 34

Positioning involves implementing our targeting. For example,

Apple Computer has chosen to position itself as a maker of
user-friendly computers.
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4.8. d. MARKETING MIX

Main Aspects of Marketing MiX

The easiest way to understand the main aspects of

marketing is through its more famous synonym of "4Ps of
Marketing". The classification of four Ps of marketing
includes marketing strategies of product, price, placement
and promotion. The following diagram is helpful in
determining the main ingredients of the four Ps in a
marketing mix.

PRODUCT:

In simpler terms, product includes all features and

combination of goods and related services that a company
offers to its customers.

Product is the most important aspect of marketing mix for

two main reasons. First, for manufacturers, products are
the market expression of the company's productive
capabilities and determine its ability to link with
 37

consumers. So product policy and strategy are of prime

importance to an enterprise, and product decisions dictate
the scope and direction of company activity. Moreover, the
market indicators such as profits, sales, image, market
share, reputation and stature are also dependent on them.
Secondly, it is imperative to realize that the product of any
organization is both a component and a determinant of the
marketing mix as it has a great influence on the other
elements of the mix: advertising, personal selling,
channels of distribution, physical distribution and pricing.
So without proper product policy, a company can not
pursue for further elements of marketing mix.

PRICING:

Pricing is basically setting a specific price for a product or

service offered. In a simplistic to the concept of price as
the amount of money that customers have to pay to obtain
the product. Setting a price is not something simple.
Normally it has been taken as a general law that a low
price will attract more customers. It is not a valid argument
as customers do not respond to price alone; they respond
to value so a lower price does not necessarily mean
expanded sales if the product is not fulfilling the
expectation of the customers

Generally pricing strategy under marketing mix analysis is

divided into two parts: price determination and price
administration (ibid).

Price determination is referred to as the processes and

activities employed to arrive at a price for a product
including consideration of relative prices of products within
the same line, and differences in price for similar products
of differing grades and qualities.
 38

Price administration is referred to as the activities involved

in fitting basic prices to particular sales situations such as
geographic locale, functions performed by customers,
position of distribution channel members, or special sales
situations.

PLACEMENT:

Placement under marketing mix involves all company

activities that make the product available to the targeted
customer while planning placement strategy under
marketing mix analysis, companies consider six different
channel decisions including choosing between direct
access to customers or involving middlemen, choosing
single or multiple channels of distributions, the length of
the distribution channel, the types of intermediaries, the
numbers of distributors, and which intermediary to use
based on the quality and reputation .

PROMOTION:
 39

Promotional strategies include all means through which a

company communicates the benefits and values of its
products and persuades targeted customers to buy them .
The best way to understand promotion is through the
concept of the marketing communication process.
Promotion is the company strategy to cater for the
marketing communication process that requires interaction
between two or more people or groups, encompassing
senders, messages, media and receivers

Limitation of Marketing Mix Analysis (4Ps of

Marketing)

Despite the fact that marketing mix analysis is used as a

synonym for the 4Ps of Marketing, it is criticised on the
point that it caters seller's view of market analysis not
customers view. To tackle this criticism, attempted to
match 4 Ps of marketing with 4 Cs of marketing to address
consumer views:

Product – Customer Solution

Price – Customer Cost
Placement – Convenience
Promotion – Communication
 40

4.8. e. RETAIL MIX:

Merchandise assortment

The company was looking for a solution that would bring

all of its businesses and processes together. After a
comprehensive evaluation of different options and
software companies, the management at Pantaloon
decided to go in for SAP.

Some of the qualities of SAP retail solutions are that it

supports product development, which includes ideation,
trend analysis, and collaboration with partners in the
supply chain; sourcing and procurement, which involves
working with manufacturers to fulfil orders according to
strategic merchandising plans and optimise cost, quality,
and speed–variables that must be weighted differently as
business needs, buying plans, and market demand
patterns change; managing the supply chain, which
involves handling the logistics of moving finished goods
from the source into stores and overseeing global trade
and procurement requirements; selling goods across a
variety of channels to customers, which requires marketing
and brand management; managing mark-downs and
capturing customer reactions, analysing data, and using it
to optimise the next phase of the design process.

2. Place

In the channels of distribution, the physical facilities point

of location.

3. Price

4. Visual merchandising
 41

Visual merchandising supports:-

a. sales

b. retail strategies

c. communicates with customers

d. communicates image

e. supports retailing trends.

Visual merchandising includes:-
1. Interior merchandising
Sufficient visual merchandizing within the store that
included danglers, signage, standees, distribution of
pamphlets, which gave details of the offer.
Display, point of purchase, fixture, equipment and
furnishings store layout.
Product packaging and labels.
2. Exterior merchandising
TVC on popular entertainment channels like Star Plus,
Sony, Set Max, and Star One.
Road shows carried out by the Big Bazaar staff with
announcements about the offer to make people aware.
Newspaper ads in almost all the local dailies like Sakal,
The Times of India, on different days during the period
of the offer.

 Store atmosphere.

4.8. f. RETAIL PROMOTION MIX

 42

1. ADVERTISING:

Advertising is recognized as an indispensable tool of

promotion. It has acquired a lot of significance in the
national and international markets. With the advent of
globalization and liberalization its imperativeness in the
Indian retail sector has increased as a result of
competitions, latest technologies, and the rapidly changing
consumer lifestyles.

a. Objectives of Advertising:

The fundamental objective of advertising is to sell

something –a product, service, or an idea.

The Major Objectives of advertising are:

1. To promote a new product.
2. To warn the public against imitation of the retailer’s
product.
3. To manage competition in the market.

b. Benefits of Advertisements:

1. Advertisement helps in creating awareness among the

customer about the existence, price, and availability of
product.
2. Increases the utility of existing products.
3. It educates customer about new product and their
diverse uses.

c. Types of advertising:

1. Informative Advertising:

Purchases of durable products are generally erratic and

 43

often too expensive to buy, so the retailer spends a huge

amount on informative advertising.

2. Corporate Advertising:

Its main motive is to build a corporate image. Corporate

Advertising builds up retailer image. It increases goodwill
towards the retail organization.

3. Financial Advertising:

It refers to advertisements by various financial institutions.

Big Bazaar has also tied up with ICICI bank, which provide
information about the investment opportunities and the
risks and benefits.

4. Classified Advertising:

It refers to messages, which are placed under specific

headings and columns in various magazines and
newspapers.

2. PROMOTION:

Promotion can be loosely classified as "above the line"

and "below the line" promotion. The promotional activities
carried out through mass media like television, radio,
newspaper etc. is above the line promotion. The terms
'below-the-line' promotion or communications refers to
forms of non-media communication, even non-media
advertising. Below-the-line promotions are becoming
increasingly important within the communications mix of
many companies, not only those involved in fmcg
products, but also for industrial goods.
44
 45

1. BELOW THE LINE SALES PROMOTION

Some of the examples of BTL (below the line) promotions
are by exhibitions, sponsorship activities, public
relations and sales promotions like giving freebies with
goods, trade discounts given to dealers and customers,
reduced price offers on products, giving coupons which
can be redeemed later etc.

Below the line sales promotions are short-term

incentives, largely aimed at consumers. With the
increasing pressure on the marketing team to achieve
communication objectives more efficiently in a limited
budget, there has been a need to find out more
effective and cost efficient ways to communicate with
the target markets. This has led to a shift from the
regular media based advertising.

Methods of below the line sales promotion:-

a. Price promotions
 46

Price promotions are also commonly known as" price

discounting". These can be done in two ways:-

1. A discount to the normal selling price of a product, or

more of the product at the normal price.

2. Price promotions however can also have a negative

effect by spoiling the brand reputation or just a
temporary salesboost (during the discounts).

b. Coupons
Coupons are very versatile, way of offering a discount.
Following are the examples of the use of coupons:-
-On a pack to encourage repeat purchase
-In coupon books sent out in newspapers allowing
customers to redeem the coupon at a retailer.
-A cut-out coupon as part of an advert.
-On the back of till receipts.
 47

The key objective with a coupon promotion is to maximize

the redemption rate – this is the proportion of
customers actually using the coupon. It must be
ensured when a company uses coupons that the
retailers must hold sufficient stock to avoid customer
disappointment. Use of coupon promotions is often
best for new products or perhaps to encourage sales of
existing products that are slowing down.

c. Gift with purchase

The "gift with purchase" is a very common promotional

technique. In this the customer gets something extra
along with the normal good purchased.

d. Competitions and prizes

This is an important tool to increase brand awareness

amongst the target consumer. It can be used to boost
up sales for temporary period and ensure usage
amongst first time users.

e. Money refunds

Here, a customer receives a money refund after

submitting a proof of purchase to the manufacturer.
Customers often view these schemes with some
suspicion – particularly if the method of obtaining a
refund looks unusual or onerous.

f. Frequent user / loyalty incentives

Repeat purchases may be stimulated by frequent user

incentives.
 48

g. Point-of-sale displays
A data collection system that electronically receives and
stores bar code information derived from a sales
transaction. This could the zip codes for library users,
facilitating the library in determining geographic market
are that users reside in. Most of the big brands are
following the suit of BTL promotion because of rising
prices of media based promotion, advertising clutter
and increased impulse purchasing.

BTL promotions are gaining popularity among all big

companies nowadays considering their effectiveness
because of the "individual customer promotion" at a
price, which is much lesser than the normal media
promotions.

• Low prices on Wednesday Low prices on Wednesday

• Concept of Big Day Concept of Big Day
• Promotional offers
1. School Jao Khushi Khushi
2. Khushi Ki Barsaat
3. Happy Father’s Day

E.g.
Big Bazaar's `junk' swap offer
Big Bazaar is launching a promotional offer from
Saturday, with the slogan, "Bring anything old and take
something new".

The prices fixed by Big Bazaar are: clothes (Rs 200 per
kg), newspaper (Rs 25 per kg), plastics/utensils/leather
goods (Rs. 75 per kg), footwear/luggage (Rs. 100 per
kg), Pet/beer bottles (Rs 15 per kg), tyres (Rs 50 per
kg), furniture (Rs 75 per kg) and others (Rs 20 per kg).
"This offer will help the housewife clean out the junk
 49

while getting a good value for it.

3. PERSONAL SELLING:
Persuasive communication between a representative of
the company and one or more prospective customers,
designed to influence the person's or group's purchase
decision.

4. PUBLICITY OF PRODUCT:
Publicity non-personal communication in news story form
about an organization, its products or both, that is
transmitted through a mass medium at no charge.

5. PUBLIC RELATION:
Public relations the planned and sustained effort to
establish and maintain goodwill and mutual
understanding between an organization and its target
publics.

6. INTERNAL ATTRIBUTES:

a. Envelope
Something that envelops; a wrapping. A products
wrapping affects a lot on its sale. More customers are
attracted if envelope is very attractive.

b. Internal layout
Methods of display
•Visual merchandising
 50

7. LOGISTICS:

Logistics is the art and science of managing and

controlling the flow of goods , energy, information and
other resources like products, services and people from
the source of production to the marketplace. It’s Important
to have professional logistical support logistical. The
operating responsibility of logistics is the geographical
repositioning of raw materials, work in process and
finished inventories where required at the lowest cost
possible.

8. SUPPLY CHAIN:

Supply chain, is a coordinated system of organizations,

people, activities, information and resources involved in
moving a product or service in physical or virtual manner
from supplier to customer. Supply chain activities
transform raw materials and components into a finished
product that is delivered to the end customer.
 51

4.9. DISTRIBUTION OF REVENUE EARNER

a. Big Bazaar is working to make fashion its largest
revenue earner.
b. Big Bazaar, the value retailing chain of the Rs
4,500crore Pantaloon Retail, is strategieng to focus
specially on ‘fashion retailing’ or its apparel business to
boost overall revenues.
c. It has created ‘Fashion @ Big Bazaar’, a sub-brand, to
position the format as much more than food or general
merchandise.
d. Big Bazaar is looking at making apparel business its
largest revenue generator, as much as 40 per cent in
two years and 50 per cent of its overall business, in five
years.
e. Currently sales of apparel make up almost 30 per cent
of Big Bazaar’s revenues, which is next only to its food
retailing business that makes up almost 40 per cent.
f. However, we will focus on apparel as the margin here is
as high as 35 per cent compared to food retailing
business where margins are probably 12 per cent. So
a slight increase in apparel sales boosts the overall
business. Going forward, Big Bazaar plans to rearrange
its apparel and fashion merchandise section in stores in
terms of design, layout and elbow space. This is
expected to ensure better product display in stores
keeping with consumer buying habits and convenience.
g. Future Group recently clocked over Rs 350crore of
sales in five ‘Mahabachat’ days, with sales exceeding
Rs 105crore on the last day.
 52

h. During this time, the largest selling category was

apparel. As many as 1lakh jeans were sold and
onelakh sarees as well as some 2 lakh t-shirts.
i. Some of Big Bazaar’s private labels, like DJ&C and
Knighthood, are already big revenue generators, with
DJ&C projecting Rs 1,000crore in the next three years,
from 600crore right now.
 53

4.10. COMPETITORS
Big bazaar operates in a competitive environment. For each
line of business, they face competition from established national
and regional companies. In the fashion segment, they probably
face competition from Shoppers Stop, Trent and Lifestyle. The
hypermarket business is relatively new, being just about three
to four years old in the country. Big bazaar faces competition
from the likes of RPG (Spencer’s), Trent (Star India Bazaar)
and with Shoppers Stop too indicating their entry into the
hypermarket segment. In the Food business, Big Bazaar faces
competition from Subhiksha, Food World to name a few.
 54

a. RPG GROUP: Spencer & CompanyLimited is

another large retail group in the
country withsupermarkets,music
stores, and the beauty and health
chain—Health & Glow.
Food world, operated by Food
World Supermarkets Limited, while
Health &Glow by the RPG Group. It
is also Planning IPO, will have 450-
plus Music World, 50-plus Spencer's
Hyper covering 4 mn sq.ft by 2010.

b.KRAHEJA’S K Raheja’s Shoppers Stop, is the

DEPARTMENTSTORE second largest retailer in the country
CHAIN: and became in retailing operation an
Indian success story. It also
acquired the Crossword chain of
bookstores.
It Operates Shoppers Stop,
Crossword, In orbit Mall, and 'Home
Stop' formats. Will operate 55 hyper
city hypermarkets with US$100
million sales across India by 2015.
 55

c.SUBHIKSHA Subhiksha was immensely popular

SUPERMARKET: in the South, particularly in Chennai,
where it sold groceries and
pharmaceutical products below the
MRP. It expected to earn a total
turnover of Rs 1,200 crore in 2008-
09 as it planned to expand outside
Tamil Nadu and Pondicherry. It
planned for 550 stores in the next
five years.

d. RELIANCE RETAIL: Investing Rs.30000 crore

($6.67 billion) in setting up
multiple retail formats with
expected sales of
Rs.90,000 crore-plus ($20
billion) by 2009-10.

e. LIFESTYLE: Investing Rs.400 crore-plus

($90 mn) in next five years
on Max Hypermarkets &
value retail stores, home
and lifestyle centers.

f. PIRAMYD RETAIL: Aiming to occupy 1.75 million

sq.ft retail space through
150 stores in next five
years.
 56

Tata Group has two retailing

companies; Trent Limited,
g. TATA GROUP: headed by Noel Tata, which
owns Westside, Star Bazaar
and Landmark retail brands
and Tata Infiniti, headed by
Krishna Kumar, which owns
Croma brand.
Trent Ltd, he retail arm of the
Tata Group, has drawn up a
Rs 2,000 crore investment
plan for setting up 50
hypermarkets — Star
Bazaar — over the next five
years.
Tata Ceramics Limited,
which manufactures a wide
range of ceramic
products like
flatware ceramics (Dinner
plate, Dessert plate,
Saucer) and hollowware
ceramics (Vegetable Dish,
Oatmeal, Sugar Pot,
Creamer, Coffee/Tea Cups
and Pots, Salad Bowl etc.)
in plain as well as fluted
shapes, under the brand
name of CERA, launched its
first exclusive branded store
in Pune . Tata Ceramics,
which achieved sales of Rs
35crore last year, is looking
at adding another Rs 12
crore from domestic sales in
 57

4.11. MAJOR PROBLEMS

a. Retailing is in a rapid state of change due to speedy

technological developments, changing competitive
positions, varying consumer behaviors as well as their
expectations and liberalized regulatory environment. In
such a scenario, information is crucial to plan and
control profitable retail businesses and it can be an
important source of competitive advantage so long as it
is affordable and readily available.

b. In west, retail businesses have been the early adopters

of Information Technology (IT). As there is a need to
capture accurate information and make it available not
only within the store but send it to warehouse,
distributors and manufacturers in real time to manage
the short shelf life of some goods in grocery sector and
costs of inventory, varied DSS tools have been adopted
by organized retailers. VMIs- vendor managed
inventory systems, Scanner at the counters- point of
sales systems, RFID- radio frequency identification,
OLAP (online analytical processing), supply chain
management systems, forecasting systems, CRM-
customer relationship management systems, ERP-
enterprise resource performance system etc. are the
tools used by organized retailers in developed nations.
 58

c. Most retailers collect and have access to huge amount

of data, collected from day to day operations e.g.
customer loyalty data, retail store sales and
merchandise data, demographic projection data etc.
Currently retailers are data rich but information poor.
There is a great potential to develop systems that
enable analysts and decision makers to manage,
explore, analyze, synthesize and present data in a
meaningful manner for decisions.
 59

4.12. FUTURE PROSPECTS

 60

a. Big bazaars have two AMC’s. One that specializes in

Property and the other is a ‘Consumer India Fund’.
The property fund aims at sourcing high quality
property at the lowest possible rates, while the
consumer fund will look at providing our retail pipeline
and expertise to national and regional brands, thereby
enabling them with a wider coverage.

b. Though they have secured 30% of modern retail space

coming up in the next three years, our endeavour is to
keep evolving with the young Indian consumer. As
regards mind share, we want all our store formats to
capture the imagination of the target customer.

c. The future will also see the pantaloon of several new

concepts targeted at the Indian consumer. Further, retail
development will not just occur in Tier 1 cities, but will have far
more significance in Tier 2 & 3 cities as well. The consumption
drive would be fueled in smaller towns and cities.

d. There would be definite customer responsiveness towards

Value Added products and services in the next few years. Since
value retailing touches the mass of the population, and with
organized retailing at about US $ 300 billion at present, value
retailing has the scope to almost double.

e. Retail chain Big Bazaar (Mumbai) plans to open 15

more stores by November end, some of them in new
markets, at an investment of Rs 1,500-1,600 crore.
 61

f. Big Bazaar is targeting a network of 145 stores by June

2009.They have zeroed in on several new and existing
markets for the 15 stores that they plan to open by end-
November. The investment will be in the range of Rs
1,500-1,600 crore.

g. The stores would be set up in places such as Mysore,

Pune, Cuttack, Kolkata, Chandigarh, Agra, Faridabad,
Surat, Nashik, Mumbai, Delhi and Solapur, adding that
in some locations two stores would be opened.

h. The retail chain would be extending its footprint into

new markets such as Mysore, Cuttack, Chandigarh,
Faridabad and Solapur.

i. Big bazaar will focus on-

Shoppertainment: It will be a convergence of shopping,
entertainment and eating. Shopping and entertainment
together called Shoppertainment is targeted at the
family. It’s more than just shopping.
• E-tailing: Is the selling of retail goods on the Internet.
Short for “electronic retailing”. The term seems to be
almost inevitable addition to e-mail, e-business, and e-
commerce. It is synonymous with business-to-
consumer (B2C) transaction.
 62

j. News related big bazaar, which is expected to generate

revenue of $1 billion in the fiscal 2007-08. Big Bazaar is
a hypermarket format of the Pantaloon Retail (India)
Ltd.
The Group expects to increase its revenues to $7-8
billion by 2011, of which Big Bazaar is expected to
contribute a large chunk of around $4 billion. It has
emerged as the largest retail format of Future Group's
retail division. “Currently they have more than 80 Big
Bazaars and we are planning to scale it up to 160 by
the year that the company was going to go very
aggressive in rolling out the Big Bazaar formats, the
total floor area by 2011 would scale up to 30 million
square feet from the present figure of 10 million square
feet.

k. “The consumer electronics segment is doing extremely

well,” he said, elaborating that the group was expecting
the segment to generate revenue of Rs 2,000 crore by
next year.

l. Future Group plans to have 300 stores and has

projected revenues of Rs 13,000 crore by 2011.
m. Total income has increased to Rs 1,381.44 crore for
the quarter ended June 2008 from Rs 1,037.42 crore for
the quarter ended June 2007, posting a 33.16 jump.
 63

n. The company said in a statement that it has posted a

net profit of Rs 125.97 crore for the year ended June
2008 against Rs 119.99 crore for the year ended June
2007.

o. Its total income has increased to Rs 5,052.67 crore for

the year ended June 2008 from Rs 3,328.77 crore
during the last fiscal. The Group posted a consolidated
net profit of Rs 21.93 crore for the year ended June
2008 as compared to Rs 35.54 crore for the year ended
June 2007.

p. However, its total income has increased from Rs

3,565.48 crore for the year ended June 2007 to Rs
5,866.50 crore for the year ended June 2008.

5. WORK ASSIGNED BY THE COMPANY

5.1 BUSINESS OBJECTIVE:

To increase footfalls and enhance sales by:

a. Attracting customers by giving them various offers.

b. Inculcating in their minds the value for money through
these offers.
c. Increasing the average consumption of existing
customers.
 64

5.2 OPERATING THE SCHEME:

a. All Category provided offers well in advance.

b. I.T uploaded the offers one day in advance and
rechecked them.
c. V.M also did splendid job by putting the required offer
signage’s and also decorated the store as per the SS3D
theme.
d. HR managed the shift time of employee; Snaks were
arranged for the staff.
e. SM, ASM, DM, ADM-Planned and managed micro
analysis of targets and staff was done by taking
department wise meeting.
 65

5.3 WORKING……..
5.3.1. TO KNOW CONSUMER BEHAVIOR TOWARDS
SCHEME:
 66

Ready to eat Housewives,families,

individuals.

Chef zone Housewives, families

Chill station Housewives, individuals

Staples Families, housewives

Vegetables Families, housewives

 67

Non food items Families, housewives

 68

On the basis of demographic factors

 69

AGE INCOME PREFERENCES/HABBITS

Adolescent Do not earn Fond of spending on eating

out, etc
(New age
teens)

Youth Mostly Brand conscious, product

conscious.

Age (35-45) Good income Good spenders, they like

rate upgrading their
households gadgets.

Age (45-60) People at the Spend less

peek of
their
careers
 70

Above 60 Steady Spend only on households.

income
 71

BUYING PROCESS
a. NEED RECOGNITION:
The customer first points out the things which he need.
His good part of income is spend on things of his daily
requirement.
b. INFORMATION SEARCH:
Before purchasing of a product, customer research
internally and externally. Internally-retrieving
information about similar purchase made earlier,
decision about choice criteria, brand included, or
advertisement related to the product. Externally-
source such as family, friends, commercial sources, etc.
c. EVALUATION OF ALTERNATIVES:
Before, purchasing customer looks for the alternatives of
that product. Customer goes for good quality in
cheapest rate.
d. PURCHASES:
Purchaser many times faces cognitive dissonance which
arises due to uncertainty of making right decision. This
is because choice of one product often means rejection
of attractive features of the alternatives.

e. AFTER PURCHASE EVALUATION:

 72

Customer by using the product comes to know about the

real value of product.

CONCLUSION:
It should be considered that big bazaar targets every class.
Thus we know that different people have different thinking style.
Most of their buying decisions or his behavior depends on his:-
a. PERCEPTION:
Perception is the process by which a customer makes sense of
information that he receives. Therefore, it is to be tried that
customer receives the right information about every product and
about its scheme, because a single error in communication to
customer can create confusion to him and he may not buy the
product.
b. LEARNING:
It is the change in the content or organization of long time
memory and is a result of information processing. Thus
company should try to hit the customer’s memory. I.e.
Company should have good impression on the memory of the
customer. As this memory acts as a internal information source
in the decision making process.
c. MOTIVATION:

Motivation helps a lot to maintain loyal customers. A

customer is loyal only when he sees any extra benefits.
Thus discounts, free gifts, free coupons, etc such schemes
motivate them a lot. Many times, good quality of the
product, reasonable prices, packaging, etc also works as
motivational tool.
 73

d. PERSONALITY:

Personality can be of many types as introvert-extrovert,

sociable-loner, and competitive-cooperative. Brand
personality is the characterization of brands as perceived
by customers. Brand may be as ‘for young’ like branded
jeans of Levi’s, Lee, Woodland, etc. Big bazaar also target
same concept.

e. CUSTOMER LOYALITY AND PROFITABILITY:

Relationship between loyalty and profitability should be

decided on the basis of loyal customers that are really
profitable for company.
The loyal customers are believed to be cost less to serve,
they are willing to pay more than other customers and act
as a word- of- mouth promoters for the company. It is
believed that one sure way to earn greater profits is to win
loyalty of customers.

5.3.2. TO GET THE RIGHT POSITIONING DONE OF

THE PRODUCT UNDER SCHEME:

It is the customer’s beliefs about the company’s product

being of, say, high quality, or low price, or durable, etc.
Thus it is very necessary that product should be according
to the customers need. It should not be damaged, in store
product should be given open facing. For pack of two the
products were given alternate 4 facing. I.e., one row of
single and other row of double.
 74

5.3.3. TO MAINTAIN STOCK ON THE FLOOR:

In retail stores less stock is maintained. This stock on
other hand is sufficient enough to fulfill the demand of
that vary product in store.
To know the exact amount to be maintained on floor it is
very necessary to know:-
a. Product facing
b. Capability to maintain stock in warehouse
c. Demand of the product.
d. Profit margin on the product.
5.3.4. TO UPDATE THE PRICES:

Pack of two was the new scheme, so its prices to be get

changed on rem for those products whose prices have
changed by the producing company. The work was to
report DM or team leader about the increase in prices and
get it updated on rem so that discount could be given
accordingly.
5.3.5. DISCOUNT CRITERION:

a. The discount was given on the scheme of pack of two.

b. The discount was 1/4th on the profit of the retail
company.
c. I. e if the company is getting profit of rs10 on a product,
whose mrp is 100.
d. Then after discount it is sold at rs97.5 in the store.
5.3.6. INVENTORY CONTROL:

Since inventory represents cost, managers seek stock

minimization. To always have in stock every conceivable
 75

item that a customer might order would normally be

prohibitively expensive for companies marketing many
items.

One solution is to separate items into those that are in high

demand and those that are is slow moving. Two related
inventory decisions are knowing when and how much to
order so that stocks are replenished. This is because
there is a lead time between ordering and receiving
inventory, and there should not be stock out as the
company is waiting for the order items to arrive. The more
variable the lead time and higher will be the safety or
buffer stock that the company will be required to keep to
prevent a stock out.

At the store (Lucknow) I saw this problem many times with

many of the products. The stock order placed should be
more in the starting of the month as at that time customer’s
purchasing power is more. But I usually saw that order
placed was somewhat same throughout the month due to
which there was stock out in some of the items in food.
 76

HOW TO WORK ON BARCODE TENDER:

Barcodes are the labels which shows price of product after

giving the discount on that product.
Bar tender is the software by which we use to take out the
bar codes.
Process:-
a. To select items according to their EAN numbers
Include for export exit enter.

b. No. of quantity done.

c. now go to next program of print select the items;
ok
 77

6. SURVEY

6.1 SURVEY ANALYSIS

1. Total people surveyed-90
2. Total people who responded well-72
a. Surveyed :-
1. Men: 22
2. Women: 30
3. Youngsters: 18
4. Children: 8
5. Old aged: 12

Men

Women

Youngs

Childern

Old age
 78

b. Marital status:-
1. Married: 74 2. Unmarried: 16

Married

Unmarried

c. Occupation:-
1. Student: 20
2. Business: 38
3. Service: 27

40
35
30 Student
25
No. of Bussiness
20
Person Service
15
Any other
10
5
0
Student Bussiness Service Anyother
 79

d. Income group: -
1. 0-10000: 20
2. 10000-20000: 24
3. 20000-30000: 28
4. More than 30000: 18

30
25
0-10000
20
10000-20000
No.of Person 15
20000-30000
10
more than 30000
5
0

e. Is your home: -
1. A single family house: 55
2. Two family house: 25
3. Single: 10
 80

Single family house

Two family house
single

f. Indicate activities/interests which you

and/or household members enjoy on a
regular basis:
1. Bicycling/running: 1
2. Dieting: 25
3. Crafts: 5
4. Foreign travel: 15
5. Gourmet/fine food: 45
6. Fashion clothing: 40
7. Bible/devotional reading: 12
8. Physical fitness/exercise: 69
9. Stereo/records and tapes: 14
10. Art/antiques: 8
11. Outdoor gardening: 35
12. Wildlife/environment issues: 40
13. Health foods/vitamins: 70
14. Money making opportunities: 50
 81

15. Book reading: 24

16. Self improvement: 45
17. Watching sports on TV: 40
18. Charities/volunteer work: 16
19. Other: 12
 82

bicycling dieting craft foreign travel

fine food fashion clothing devotional reading physical fitness

tapes/records art outdoor gardening w ildlife

health foods m oney making book reading self im provem ent

w atching sports charities others

 83

CONCLUSION FROM SURVEY ANALYSIS

a. Men and women both are responsive this shows that
they have interest in the products either they buy or not.
They have good knowledge about the product they buy.
b. Women are very careful about what they buy but
sometimes men tend to ignore some of the features of
product.
c. Women are more attracted and keen to know about the
schemes, discounts, gifts, etc on product.
d. People have multiple life style and people have interest
in music, fitness, health, dieting, health food, vitamin
rich products, and fashion clothing.
e. Women, children, youngsters, aged people frequently
make visit to stores.
f. People of single family and apartment family are
frequent customers.
g. People of middle class and upper middle class are
frequent customers and they spend good amount of
their income.
 84

6.2 TREND ANALYSIS

a. how often you used this product before the
scheme?
1. Everyday: 49
2. More than once a week: 21
3. Once a week: 20

everyday
m ore than once a w eek
once a w eek

b. How often do you use products from this

[SERVICE CATEGORY]
1. Every day: 55
2. More than once a week: 29
3. Once a week: 6

Every day

Once a w eek

More than once a w eek

 85

CONCLUSION FROM TREND ANALYSIS

Trend analysis shows that consumption rate of the

products was good, as the products were mainly daily
used products. Earlier the rate of using of product was
less in comparision, after the scheme.

6.3 CONJOINT ANALYSIS

a. Stores are conveniently located:-

1. Very Strongly Agree: 20
2. Strongly Agree: 28
3. Agree: 27
4. Disagree: 15

30
very strongly agree

25

20 strongly agree

15

agree
10

5
disagree

0
very strongly strongly agree disagree
agree agree
 86

b. Store atmosphere and decor are

appealing:-
1. Strongly Agree: 29
2. Agree: 40
3. Disagree: 21

strongly agree

agree

disagree

c. A good selection of products was present.

1. Strongly Agree: 24
2. Agree: 55
3. Disagree: 11
 87

strongly agree
agree
disagree

d. (Store) has the lowest prices in the area:-

1. Strongly Agree: 30
2. Agree: 45
3. Disagree: 15

45
40
35 Strongly agree
30
No of Person
25 Agree
20
15
Disagree
10
5
0
Strongly Agree Disagree
agree
 88

e. Merchandise sold is of the highest quality:-

1. Strongly Agree: 26

2. Agree: 52

3. Disagree: 12

Strongly agree

Agree

disagree

f. Merchandise displays are attractive:-

1. Strongly Agree: 9
2. Agree: 69
3. Disagree: 12

Strongly
agree
80
60
Agree
No.of person 40
20
0 Disagree
Strongly Agree Disagree
agree
 89

g. Advertised merchandise was in stock:-

1. Strongly Agree: 14
2. Agree: 67
3. Disagree: 9

Strongly agree

Agree

Disagree

h. Overall, I am very satisfied with the store:-

1. Strongly Agree: 55
2. Agree: 30
3. Disagree: 5
 90

Strongly agree
60
50 agree
40
No.of
30 disagree
Person
20
10
0
Stronglyagree agree disagree

i. I am very satisfied with the price I paid for

what I bought:-
1. Strongly Agree: 34
2. Agree: 53
3. Disagree: 3

strongly agree
agree
disagree
 91

j. I am very satisfied with the merchandise I

bought:-
1. Strongly Agree: 12
2. Agree: 70
3. Disagree: 8

strongly agree

agree

disagree

Slice 4

Select the rating that best describes how you feel

about [PACK OF TWO SCHEMES].
k. Quality:-

1. Strongly Agree: 30

2. Agree: 28

3. Disagree: 15

4. Disagree Strongly: 15

5. Very Strongly Disagree: 2

 92

Strongly agree

30
Agree
25
20 Disagree
No.of Person 15
Disagree
10 strongly

5 Very strongly
disagree
0
Strongly Agree Disagree Disagree Very
agree strongly strongly
disagree

l. Price and Discount:-

1. Strongly Agree: 18
2. Agree: 60
3. Disagree: 12

Strongly
agree

Agree

Disagree

m. How interested would you be in using the

product in this scheme:-
1. Not at all interested: 0

2. Not very interested: 3

3. Neutral: 2
 93

4. Somewhat interested: 25

5. Extremely interested: 50

6. Not sure: 10

50
Not at all
45
40 Not very

35 interested

30 Netural

No.of Person 25 Somew hat

20 interested

15 Extrem ely
intrested
10 Not sure
5
0 Notatall Notvery Netural Somewhat Extremely Notsure
interested interested intrested

n. Overall, how interested are you in buying

this service:-
1. Not at all interested: 0
2. Not very interested: 5
3. Neither interested nor uninterested: 22
4. somewhat interested: 18
5. Extremely interested: 45
 94

Not at all int.

45

40 Not very
interested
35

30 Neither int.nor
unint
25
No.of Person Somewhat
20 interested

15
Extremely
10 intrested

CONCLUSION FROM CONJOINT ANALYSIS

People are satisfied with the store locations. There is good

rating in favour of atmosphere, décor and quality of
product offered to customer in exchange of the reasonable
prices.

People have shown their keen interest towards the

products in scheme. They say that for them any discount is
good if the product is of their utility.

Customers are interested to buy the products again and

again of the scheme.
 95

7. GENERAL SURVEY AND CONSUMER

BEHAVIOR ANALYSIS FOR THE NEW
SCHEME OF PACK OF TWO
a. Do you find the choices in biscuits
according to your preference:-
1. Very Strongly Agree: 20
2. Strongly Agree: 32
3. Agree: 23
4. Disagree: 15

very strongly
agree
strongly agree

agree

disagree

b. Biscuits most preferred-

Britannia:-
1. Britannia gday butter: 32
2. Britannia gday pista: 16
3. Britannia gday cashew: 20
4. Britannia jim jam: 55
5.Britannia crm treat bourbon 32
 96

60

50
gday butter
40
gday pista
30 gday cashew
jim jam
20
bourbon
10

0
gday gday gday jim jam bourbon
butter pista cashew

c. Parle:-
1. Parle hide n seek choco chips (200g): 24
2. Parle hide n seek choco (100g): 61
3. Parle bourbon cream (200g): 45
4. Parle digestive (176g): 34
5. Parle krack-jack (240g): 21
6. Parle glucose (220g): 50

hide&seek(200g)
2nd Qtr
bourbon(200g)
digestive(176g)
krack-jack(240g)
glucose(200g)
 97

d. Maggi preffered most:-

1. Maggi noodle masala (380g): 35
2. Maggi noodle masala (570gm): 30
3. Maggi noodle masala (760g): 32
4. Maggi noodle vegetable atta (360g): 24
5.Maggi noodle rice chilli chow (332g): 8

maggi noodle
msla(380g)
570g

760g

veg atta noodle(360g)

rice chilli chow

 98

e. Mtr products:-
1. MTR dessertmix badam drink (220g): 11
2. MTR dessertmix gulab jamun mix (200g):10
3. MTR payasam kheer (220g): 60
4. MTR readymeal suji upma: 16
5. MTR snackmix dosa mix (500g): 12
6. MTR snackmix rava dosa (500g): 19
7. MTR snackmix rava idli (500g): 6
8. MTR snackmix uttappam (500g): 15

mtr badam
drink(220g)
mtr gulab jamun

mtr payasam kheer

mtr suji upma

mtr dosa mix

mtr rava dosa

mtr rava idli

mtr uttappam
 99

CONCLUSION
Maggi showed a good response day by day but those like
Chili Chow, Lemon masala, Rice shahi pulao was not
up to satisfactory demand.

Mtr Badam drink, Gulab jamun, Rava idli, Dosa mix were
less in demand may be due to season.

Mtr Payasam kheer showed outstanding demand.

Parle hide n seek (100g), Digestive, Bourbon, krack jack

were in good demand in families. These were like
combination of chocolate, lite, salty biscuits.
Digestive was preferred by health conscious customers
mainly.

Britannia Jim jam and Bourbon were preferred by children,

and pista, butter; cashew also provided a great choice in
ready to eat section.

Nestle chocolates Kit Kat of 34g, 99g were in good

demand.
Red label tea nature care ct 2*250g, Tata tea gold and
premium 2*500gm should continue because their
demand was increasing slowly.
Bikano Alu Bhujia and Bikaneri bhujia should be continued
as affordable prices for all customers. It is competing
Haldiram and many local made, so it will take some
time for it to raise a remarkable demand.
 100

Some of the products which can be considered for sale

set.

Britannia nutri digestive (small pack)-focuses all health

conscious and old age which are in good percentage. So
it can be considered or scheme.

Mohan’s corn flakes (liked by all class people and in

budget).

No offer on Sunfeast products which targets children in

their advertisements.

Private label products were very reasonable and very

affordable and were in good demand but there was good
number of damage also from the brand in tasty treat
instant noodles masala (400g).

There is private label honey also, of very reasonable rate,

for its promotion can we have it in any scheme?
 101

SUGGESTIONS
MARKETING OBJECTIVE
Target is placement of all merchandising units across the
market in a months time
Create Identity in a Short Span
Offering a wide range
Reach every nook & corner
Distinct Approach ( Innovative & Differentiated products)
Constant connection through technology
High level of transparancy
Pricepressure from webshops
Changed orientation and purchase behaviour

Shift your loyalty!

From Push tool to Pull platform

Producer Retail Consumer

EXPERIENCE SOCIAL RETAILING ORGANISED
SERVICE INFORMED
PRODUCT CONNECTED
MATERIAL CONSUMER
 102

 Providing social tools and platforms around products

and services to create better informed and better
organised buying behaviour.

 Giving away design

 Giving away assortment
 Give away marketing
 Augmented Reality

ORGANIZED RETAILING

(i) promote quality employment;

(ii) improve business process practices;
(iii) spur investments in support
industries; and
(iv) enable the modernization of the fragmented
traditional retail industry.

 Modern retail business focuses on maximizing customer

footfalls and capturing rising volume and share of the
customer wallet.
 While the competition strategy is largely price focused,
the model works by:

(i) improving sourcing efficiencies;

(ii) expanding product assortment;
(iii) differentiating service; and
(iv) enhancing the store ambience. Thus, there are
four drivers of modern retail’s “one-stop shopping
model”:price, product, service, and ambience
 103

 The main objective of these studies is to understand

how these firms are:

(i) penetrating markets;

(ii) introducing formats and product categories;
(iii) operating the end-to-end value chain; (iv) pricing
different products; and
(v) capturing customer footfalls.

 It helps to:

(i) attain critical mass;

(ii) economies of scope in sourcing by accruing
costs across stores; and
(iii) reach out to consumers in the local
neighbourhood locations

BENEFITS OF ORGANIZED RETAILING

PRODUCT MARGIN

Modern retail penetration and consumer adoption in the

apparel and clothing category is the highest.
An organized retailer gets an average of 30 per cent gross
margin or above on MRP across women’s wear, gents’
wear, and kids’ wear on branded labels. In the case of
private labels of store brands, clothing margins are higher
than 60 per cent typically.

In the food and grocery section across hypermarket,

supermarket, and discount store formats, grocery covers
 104

around 45 per cent of store space in FMCG and staple

food products.
As regards fresh fruit and vegetables, however the store
level penetration is low compared to other categories for
various reasons: (i) high wastage; (ii) lack of temperature-
controlled isles; and (iii) low profit margins in bulk produce
(potatoes, tomatoes, and onions). In addition, the
customer adoption rate is also low in fresh fruit and
vegetables because of its daily need-based requirement
and the distance factor.
Nevertheless, fruit and seasonal vegetables are higher
profit-margin produce: fruit sell at 40 per cent margin on
the cost price, and seasonal and exotic vegetables around
30 per cent above the cost price. Across the fruit and
vegetable section, the net profit gain is between 8 per cent
and 10 per cent on an average. As a result, organized
retail firms are strategizing convenience format stores up
to 2,000 sq. ft. area in order to penetrate the local
neighborhood markets.

MARKET PENETRATION STRATEGY:-

Large retailers are heading for a pyramidal approach by

launching several small-sized neighborhood convenience
stores in tandem with a few large hypermarket or
department store formats. This strategy is beneficial to
large retail firms because they can absorb supply-chain
costs across formats. Further, bulk purchases enable them
to squeeze profit margin from suppliers. However, the local
traditional retailers in the nearby locations feel more
intense competition.

The product mix in the hypermarket format is typically 60

per cent food and 40 per cent non-food. The format
incorporates a larger share of apparel, grocery products in
staples, and FMCG goods, of which the share of apparel
 105

merchandize is 30 per cent. Fruit and vegetables, mobile

phones, alcohol-based beverages and pharmaceutical
electronics and household durable product categories
encompass a much smaller share.
Another dominant format used by modern retailers
includes the department and speciality stores focusing
primarily in clothing, cosmetics, artificial jewelry and
watches, and household durables.
The discount and convenience formats largely concentrate
on fruit and vegetables and grocery products.

Gradually, the organized retail value chain would prefer to

lean towards the direct procurement approach in order to
reduce the cost of the middleman.

The direct procurement model benefits modern retailers for

the following reasons: (i) maximizing its gains on large
volume transactions; (ii) implementing store brand
promotional schemes; and (iii) minimizing the operational
cost.

In the case of FMCG and staple products, the firms

procure primarily from large suppliers for branded products
and small suppliers for store brand private labels. As
regards apparel, a mix of large and small suppliers supply
directly for private labels.

Currently, the modern retailers work on a commission-

based margin with branded suppliers as opposed to the
slotting-fee position where a manufacturer or supplier gets
shelf space by paying a certain fee structure. By having
commission-based direct contract terms with branded
suppliers, retailers are able to arrange various promotional
schemes in order to attract customer footfalls to their
stores and secure discounted price on bulk purchase. This
business tactic is particularly disadvantageous to the
 106

traditional retailers because their volume demand is very

small and is primarily on credit payments.

EMPLOYMENT GENERATION:

Finally, but most importantly, the employment generated

by organized retail is building a quality labour class that is
gaining vocational training in skilled and unskilled jobs at
the graduate and tenth class level Foreseeing the demand
for trained staff, leading organized retailers are creating
their captive human resources pool through internal
training and programmes and tie-ups with retail
management schools.

 COMPETITORS STRATEGY:

Subhiksha Value

Low-price high-volume strategy: by keeping no fancy frills

front-end and by becoming an intermediary at the back
end, Subhiksha leverages on discounted prices on bulk
purchases and cash payments.

Trent Limited Lifestyle &

Value

Single- brand strategy: leverages on high margins in

private labels, and targets consumers in socio-economic
class B and C.

ITC Choupal Sagar & Choupal

Fresh Value
 107

Backward integration through IT-based business model:

leverages by building direct relationship with the supply
source, the farmers, to sell as well as purchase products
and services.

Spencer’s Retail Value

The “duck and the duckling” model: by having two- or

three- value segment stores, backed by a cluster of small-
sized Fresh, Daily, and
Express stores, to leverage on economies of scale at
back-end value chain.

NDDB: Mother
Dairy Value
Operates on a co-operative model with the objective of
increasing farmers’ welfare. Has a strong presence in
Delhi’s NCR region.
Strategically located in residential areas and follows a low-
price strategy for fruit and vegetables.
 108

8. CONCLUSION

If this project proves to be of any usefulness to the reader then I

will be very proud of it, that all the hard work done by my faculty
and me has been fruitfull.
Above all, I hope to have shown my reader that the answer
of their questions on the working of the company and its
maketing stategies which made it a retail giant and capture
the big part of the market. how ever it is difficult to know
about a company but training provided to me helped me a
lot to know the retail store and consumers behavior to a
great extent. i came to know how a consumer reacts to
 109

every action made by retail to pursue them with their

promotional and marketing strategies.

This project helped me to clear my else doubts and step

over the boundaries of confusion and querries with
reference to retail store and helped to be more focused
and helped me a lot to understand the concepts in my
studies.

9. BIBLOGRAPHY

BOOKS:

 KOTLER PHILLIP,KELLER KELVIN

Marketing Management, Pataparganj, Delhi, Dorling
Kindersley(India)Pvt.Ltd , 2007,
“74 to 80”, “164 to 170”, “200 to 203”, “205 to 208”,”231 to
236”, “245 to 264”.

 KUMAR ARUN AND MEENAKSHI N

 110

Marketing Management, Naraina, New Delhi, Excel Books

Pvt. Ltd.,2008, “11 to 14”,”29 to 31”, “70 to 75”, “82 to 98”,
“103 to 104”,”112 to 115”, “126 to 128”, “218 to 229”, “232
to 233”.

INTERNET:

www.yorku.ca/rkenedy/critical_skills/student/nick_ashby_p
pt_prestns/how_to_write_an_introduction.ppt+how+to+writ
e+introduction&hl

www.livemint.com/Big-Bazaar-plans-to-open-15-st.

www.financialexpress.com/news/Future-Group-to-hive-off-
Big-Bazaar/

www.fibre2fashion.com/face2face/pantaloon/kishorebiyani.
asp

www.thehindubusinessline.com/iw/2005/12/25/stories/

http://www.domain-
b.com/companies/companies_f/future_group/20080930_fu
ture_group

10. ANNEXTURE
Annexure

SURVEY QUESTIONNAIRES

1. Tick the option you fall in:-

a. women
 111

b. children
c. youngsters
d. men
e. old age

2. Does the big bazaar match consumer expectation or

are they just making empty promises?

a. yes
b. no

3. Marital status:-

a. married
b. unmarried

4. Occupation:-

a. students
b. business
c. service
d. others

5. Income group:-

a. 0-10,000
b. 10,000-15,000
c. 15,000-20,000
d. more than 20,000

6. Your family is:-

 112

a. single family
b. joint family
c. bachelor
d. others

7. You use the products in offer:-

a. every day
b. more than once in a week
c. once a week

8. Is the store conveniently located?

a. strongly agree
b. agree
c. disagree

9. What about store environment?

a. very good
b. good
c. average

10. Do you find variety in products?

a. strongly agree
b. agree
c. disagree

11. What do you think about quality of the products?

 113

a. very good
b. good
c. average

12. Do you like the way products are displayed?

a. very attractive
b. attractive
c. average

13. How do you come to know about the schemes?

a. reference group
b. newspapers
c. sales promotions
d. pamphlets distributed
e. paging in store

14. Are you satisfied with the products in store?

a. yes
b. no
c. no comments

15. Are you happy with the schemes and discounts?

a. strongly agree
b. agree
c. disagree

16. How much interested are you in using products?

a. not at all interested

 114

b. not very interested

c. neutral
d. somewhat interested
e. not sure

17. Which of the following product you like to take?

a. Britannia g-day butter

b. Britannia g-day cashew
c. Britannia g-day pista
d. Britannia jim- jam
e. Britannia cream treat bourbon

18. PARLE PRODUCTS:-

1. Parle hide n seek choco chips(200g)

2. Parle hide n seek choco (100g)
3. Parle bourbon cream(200g)
4. Parle digestive (176g)
5. Parle krack-jack (240g)
6. Parle glucose (1kg)

19. MAGGI NOODLES:-

1. Maggi noodle masala(380g)

2. Maggi noodle masala(570gm)
3. Maggi noodle masala(760g)
4. Maggi noodle vegetable atta(360g)
5. Maggi noodle rice chilli chow(332g)

20. MTR products

1. MTR dessertmix badam drink(220g)

 115

2. MTR dessertmix gulab jamun mix(200g)

3. MTR payasam kheer(220g)
4. MTR readymeal suji upma
5. MTR snackmix dosa mix(500g)
6. MTR snackmix rava dosa (500g)
7. MTR snackmix rava idli(500g)
8. MTR snackmix uttappam(500g)

21. ACT II

1. Mix butr (99g)

2. Mix butr lover(99g)
3. Mix Butr pepper(60g)
4. Mix chilli surprise(70g)
5. Mix classic salted(70g)
6. Mix golden sizzle(70g)

22. AMUL PRODUCTS:-

1. Amul butr(500g)
2. Butr lite(500g)
3. Cheese chiplet(200g)
4. Cheese lite(500g)
5. Cheese slice(200g)
6. Cheese tn(400g)
7. Lite spread tub(200g)

23.BAMBINO

1. Macroni (900g)
2. Macroni elbow (450g)
3. Pasta penne (500g)
 116

4. Pasta spiral (500g)

5. Vermicelli macr elstx (950g)
6. Vermicelli roasted (950g)
7. Vermicelli sc (1kg)
8. Vermicelli sc ( 450g)

24. NESTLE PRODUCTS:-

1. Coffee classic box (200g)

2. Coffee classic jar (50g)
3. Coffee classic pp (50g)
4. Coffee jar (100g)
5. Kit Kat (99g)
6. Kit Kat (34g)
7. Chocolate munch (102g)
 117

Thank
you