A PROJECT REPORT ON Growth and development of retail marketing in india with reference to big bazaar

in the subject Entrepreneurship management

SUBMITTED TO UNIVERSITY OF MUMBAI FOR SEMESTER 3 OF M.COM. BY Name of the student (PATEL UPASANA RAMNIKLAL) (Roll No.25 )

UNDER THE GUIDANCE OF Prof. / Dr. james sir YEAR 2013 2014

ACKNOWLEDGEMENT

At the beginning, I would like to thank GOD for his shower of blessing. The desire of completing this project was given by my guide Prof.james sir. I am very much thankful to him for the guidance, support and for sparing his precious time from a busy schedule. I would fail in my duty if I dont thank my parents who are pillars of my life. Finally I would express my gratitude to all those who directly and indirectly helped me in completing this project.

(Signature of the student)

DECLARATION BY THE STUDENT

I,patel upasana ramaniklal student of M.Com. Part-2 management, Roll No. 25 hereby declare that the project for the Paper entrepreneurship management titled, Growth and development of retail marketing in india with reference to big bazaar submitted by me to University of Mumbai, Semester 3 examination during the academic year 2013-2014, is based on actual work carried by me under the guidance and supervision of prof.james sir. I further state that this work is original and not submitted anywhere else for any examination.

Signature of student

CERTIFICATE

This is to certify that the project entitled Growth and development of retail marketing in india with reference to big bazaar submitted by Ms.patel upasana ramniklal Roll No. 25 student of M.Com. (Part-2) Management (University of Mumbai) Semester 3 examination has not been submitted for any other examination and does not form a part of any other course undergone by the candidate. It is further certified that she has completed all required phases of the project. This project is original to the best of our knowledge and has been accepted for Internal Assessment.

Internal Examiner

External Examiner

Co-ordinator

Principal

College seal

GROWTH AND DEVELOPMENT OF RETAIL MARKETING IN INDIA WITH REFERENCE TO BIG BAZAAR

SUMMERY
This paper provides detailed information about the growth of retailing industry in India. It examines the growing awareness and brand consciousness among people across different socio-economic classes in India and how the urban and semi-urban retail markets are witnessing significant growth. It explores the role of the Government of India in the industrys growth and the need for further reforms. In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow faster. The paper includes growth of retail sector in India, strategies, strength and opportunities of retail stores, retail format in India, recent trends, and opportunities and challenges. This paper concludes with the likely impact of the entry of global players into the Indian retailing industry. It also highlights the challenges faced by the industry in near future. In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow faster. Indian retail is expected to grow 25 percent annually. Modern retail in India could be worth US$ 175-200 billion by 2016. The Food Retail Industry in India dominates the shopping basket. The Mobile phone Retail Industry in India is already a US$ 16.7 billion business, growing at over 20 per cent per year. The future of the India Retail Industry looks promising with the growing of the market, with the government policies becoming more favorable and the emerging technologies facilitating operations.

TABLE OF CONTENTS
1:INTRODUCTION 2:OBJECTIVE 3: RESEARCH METHODOLOGY 4:NDIAN RETAIL MARKET AND GROWTH OF SMES 5:OVERVIEW OF THE GLOBAL RETAIL INDUSTRY 6:COMPANY PROFILE 7:FINDING & SUGGESTIONS 8:CONCLUSION 9:REFERANCES

BREVIATIONS

gross domestic product

INTRODUCTION
The Indian Retail Industry is the largest among all the industries, accounting forover 10 per cent of the countrys GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an in flexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a highergrowth trajectory. The Indian population is witnessing a significant change in itsdemographics.Retail and real estate are the two booming sectors of India in the present times. And if industry experts are to be believed, the prospects of both the sectors are mutually dependent on each other. Retail, one of Indias largest industries, has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. Accounting for over 10 per cent of the countrys GDP and around eight per cent of the employment retailing in India is gradually inching its way toward becoming the next boom industry. As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large-scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India are Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items Another credible factor in the prospects of the retail sector in India is the increase in the young working population. In India, hefty pay packets, nuclear families in urbanareas, along with increasing working-women population and emergingopportunities in the services sector. These key factors have been the growth drivers of the organized retail sector in India which now boast of retailing almost all the preferences of life - Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many more.

INDUSTRY EVOLUTION Traditionally retailing in India can be traced The emergence of the neighborhood Kirana stores catering to the convenience of the consumers Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission 1980s experienced slow change as India began to open up economy. Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains Later Titan successfully created an organized retailing concept and established as eries of showrooms for its premium watches The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. Post 1995 onwards saw an emergence of shopping centers Mainly in urban areas, with facilities like car parking Targeted to provide a complete destination experience for all segments of society Emergence of hyper and super markets trying to provide customer with 3 Vs -Value, Variety and Volume Expanding target consumer segment: The Sachet revolution - example ofreaching bottom of the pyramid. to the

At year end of 2000 the size of the Indian organized retail industry is estimateedat Rs. 13,000 crore.

OBJECTIVE To perform a Management Thesis there must be certain objectives in front of the student, which will show a specific way to work on Management Thesis. In reality objectives is nothing but a part of future planning and effective planning is half work done, when we see objectives for working on Management Thesis we can effectively utilize our strength, time and tem management. For the betterment of Management Thesis I also set some objectives in front of me, this proved very helpful in Management Thesis. I have performed work according these objectives. The objectives, which we have selected, are as bellow. 1.To identify and understand the significance of retailing in the current business environment 2.To develop guidelines to build a retailing business 3.To identify the competition in the market and develop strategies for retailing business accordingly 4.To identify significant characteristics of the end consumer, understand itssignificance the retailing business and develop strategies accordingly for

5.To identify the paradigm shifts in retailing business with increasing scope of technology / e-business and develop strategies accordingly 6.To know the growth of retail industry with respect to big bazaar. 7.To know the factors affecting for retail industry. 8.To find the factors which are behind the change of Indian Retailing Industry? 9.To understand the benefits to customers, manufactures, wholesalers, and the economy from Retail sector. 10.To know about Big Bazaar. 11.To know about its competitors. 12.To know about its customers 13.To know about its Promoters & Organizational structure 14.To know about its strengths, weaknesses, opportunities & threats. 15.To earn practical knowledge. 16.To analyze problems which I am facing while working on field. 17.To know about marketing strategies. 18.Last but not the least to know about retail business
10

RESEARCH METHODOLOGY
Research Plan obtain pioneer place while working on any project. So wego through the research plan. The research plan is as follows:While working on our Management Thesis, the participation of manager, sales manager, marketing manager, auditor, employees, etc. & our professors enlighten the use of theoretical concepts in actual business world. Their views & suggestions proved very useful in the successful completion of our Management Thesis. We developed the research plan into various components:A] Data sources B] Research instruments C] Sampling methods

A] Data Sources 1)Primary data:Primary data is collected from the locality of the coverage area. We have taken in to consideration the views of manager, sales manager, marketing manager, auditor, employees, etc. & our professors about the relevant subject & also pay attention towards their suggestions. Their suggestions are incorporated in the report. This dataprepared the basis for the Management Thesis report. Beside of all this, some data is also collected by we ourselves. 2)Secondary data:Same as above some data is collected from the media also. i) Newspapers ii) Magazines iii) Books on Management iv) Text books

11

B] Research Instruments To collect the primary data for the Management Thesis, we have Selected some questions in concern with the organization i.e. Big Bazaar. We used thesequestions as a research instruments for knowing the facts. These questions are as follows:1) Questions related to their marketing management. 2) Questions related to their capital. 3) Questions related to their investment. 4) Questions related to their turn over. 5) Questions related to their advertise expenditure. 6) Questions related to their interpersonal relations with Customers 7) Questions related to their competitors. 8) Questions related to their organizational structure. 9) Questions related to training & development of employers 10) Questions related to motivation. 11) Questions related to role of personal manager in the organization. C] Sampling Plan A sampling plan is most important to do Management Thesis successfully. The points considered in the sampling plan are as following:I) Sampling Unit:The staff of the organization including the managers of differentdepartments employees was targeted for the Management Thesis. II) Sampling Quantity:The sampling quantity was 24 & all are related with Big Bazaar. Apartfrom this we also considered some customers of Big Bazaar. iii) Coverage:The coverage of the survey was whole organization i.e. Big Bazaar. and the

12

LIMITATION Collection of data related to marketing strategy of Big Bazzar is a difficult task because this information is very rarely available with secondary resources therefore it requires more time and lot of efforts.

13

INDIAN RETAIL MARKET AND GROWTH OF SMES

The retail market in India is estimated at about US$ 410 billion and constitutes about 60% of private consumption and about 35% of India's GDP. With Indian GDP expected to grow at 78 % in the next coming years, the retail market is expected totouch US $860 billion by 2018. In recent years, this sector has witnessed a lot of interest from both domestic and global players, who have committed investments worth US $30 billion, which will lead to increase in the share of modern retail from the current 4.5%to almost 25% of the total retail market by 2018. The Indian retail market is the fifth largest retail destination globally. The current size of the Indian retail industry stands at $511 billion in 2008. Simultaneously, modern retail is likely to increase its share in the total retail market to 22 per cent by 2010.Organized retail in India raked in US$ 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 (according to the Credit Rating and Information Services of India). Organized retail has increased its share from 5 per cent of total retail sales in 2006 to 8 per cent in 2007. It is currently around 12 per cent. India has one of the largest numbers of retail outlets in the world. Of the 12 million retail outlets present in the country, nearly 5 million sell food and related products. Though the market has been dominated by unorganized players, the entry of domestic and international organized players is set to change the scenario. Per capita retailing space is about 2 sq. ft (compared to 16 sq. ft in the U S). India's per capita retailing space is thus the lowest in the world. Around 7% of the population in India is engaged in retailing, as compared to 20% in the USA. Statistically, the global retail industry is witnessing a CAGR of 5.5% is slated to grow at the same rate till 2009. The following graph shows an overall trend of the global retail revenues. Analysis of the situation India is standing in the threshold of a retail revolution. The Indian consumerclass consists of a 300 million strong bourgeoning middle-class, expected to grow to 600million by 2010. Overall economic growth and increasing disposable incomes have boosted double-digit growth in consumer spending, enabling retail sales o grow by 50-100% in 2006.According to the India Retail Report 2007, total private consumption reached INR20,000 billion at current prices in 2006. The share of organized retail stood at 4.6 percent of the total Indian Retail Value of INR 12,000 billion ($270 billion). However, the organized sector is expected to grow at 35-40% in the next few years as compared to over all retail growth of 7-8%. The potential for introducing international brands, ability to make huge capital investment and ease of setting shop in India is luring foreign players to the industry. Thus, the retail sector will experience an influx of international retail models and quality outlets in the coming few years.

14

Description of the concept Manufacturers can look at the following alternatives to increase sales volume: 1) Sales promotion and advertising in malls Most supermarkets and hypermarkets promote in-house offers to attract customers.They also spend a lot on visual display of promotions. These costs can be shared by thecompany, thus increasing their stake in the sales of the mall. a) Retail outlets will be supportive of sales promotion and advertising by companiesinside malls for two reasons:- it increases sales of the entire category as such- it reduces burden on malls to attract/educate consumers towards particular products. For the FMCG companies, return on advertising in terms of increased sales (or marketshare) will be more pronounced due to point-of-purchase promotion. b) Manufacturers can share costs of advertising and make sections of the store moreattractive in return for slightly lower margins to the retailers. They can set up smallkiosks or shelves to display their own products. This involvement of the company inthe operation of the mall will also help build a strategic relationship between the two. 2) Use malls to target niche segments Malls and supermarkets typically attract the middle and upper-middle class consumers who have considerable spending power as well as brand awareness. Thus manufacturers can use this channel effectively to launch specific variants of existing products or niche products for which they are able to Concept Paper Indian Institute of Management Ahmadabad attract a premium from such consumers. These products should be launched exclusively in the malls and not through Kirana stores. The presence of a larger product range will increase the attractiveness of shopping at a mall for the consumer, making it a win-win situation for both.Indias retail market is at its pinnacle and is drawing huge attention from both global and local retailers. Reasons for Indias high growth rate in the retail sector are: High growth rates- Indias GDP is projected to grow by more than 8 percent in fiscal year 2008; projections for 2009 are a more modest at about 7 percent Untapped growth potential- Organized retail, which still accounts for less than 5percent of the market is expected to grow at a compound annual growth rate (CAGR)of 40 percent to $107 billion by 2013. Indias overall retail sector is expected to rise to$833 billion by 2013 and to $1.3 trillion by 2018, at a CAGR of 10 percent. Growing Purchasing Power- Consumer spending is on a sharp rise. In the last fouryears the consumer spending has grew by astounding 75 percent. This can be attributedto the significant rise in the disposable incomes of Indias young population. It has to benoted that more than 33 percent of Indian population is below the age of 15.
15

BENEFITS OF RETAILING
Retailers play a major role in the transfer of goods and services from themanufactures to the e nd users. In this process retailer delivers many benefits tocustomers,manufactures, wholesalers, and the economy. Benefits to customers Retailers act as a buying agent for consumers. They perform various businessactivities that increase the value of the goods and the service they sell to the end users.As buying agents a retailer performs various activities to satisfy the end consumers.These activities include19.Breaking bulk20.Providing assortment21.Holding inventory22.Providing after sale s services23.Providing information Benefits to Manufactures and wholesalers Manufactures and wholesalers consider retailing as a channel for delivering theirproduct /services to the end consumer. By selling services retailers provide themanufactu res great revenue, which could be reinvested in production. Thus retailers play major role in smoothing out the variation between the production and sales of the manufactures product. Benefits to the economy The retailing business is the largest privet industry in the world with turnover of US $6.6 trillion. Retailing plays a crucial role in the management of world economy and retailers constitute a tenth of the fortune 500 companies. In INDIA retailing accounts for over 10% GDP and around 8% of the employment only next to the agriculture industry. An Analytical study of the development of Retail marketing in India: a case of big bazaar

16

OVERVIEW OF THE GLOBAL RETAIL INDUSTRY Retail: world largest industry Retail, with total sales of $ 6.6 trillion, is the worlds largest private industry ahead of financial industries $ 5.1 trillion. It is also home to a number of the worlds largest enterprises. Over 50 of the Fortune 500 companies, and around 25 of the Asian top 500 companies, are retailers. The industry accounts for over 8 percent of the GDP in western economies. Retail: Largest private industry in the world economy A Study by Mc Kinsey states that organized retail accounts for just around 2 percent (out of which modern retail formats account for 7 percent of trade) presently is set to grow at exponential exceeding 35 percent. Fitch estimates the current share of organized retail to grow from 2percent presently to around 15 to 20 percent by 2010.

Retail Consumption areas Food Retailing Clothing & Apparel Jewelry, Watches Home Furnishing Foot wear Beauty Care

US $ billion 130 12 7 5 1.7 3.6

Existing Companies in the organized sector Food Bazaar Subhishka. (Pantaloon) Food World

Pantaloon Westside, Shoppers Stop Tanishq, Titan, Gold Bazaar (Pantaloon) Home Store, Arcus (Pantaloon) Bata, Woodland VLCC, Health & Glow

Traditionally, most retailers have had very localized operations. This localized nature of the industry is changing as retailers face low rates of growth and threatened profitability at home. New geographies will help them sustain top-line growth as well as permit global sourcing. Profits in retail have steadily been rising and have generated 18 percent shareholder returns between 1994 and 1999. Significantly, retail is also one of the worlds largest employers, accounting for instance 16 percent of the US workforce, Poland 12 percent, China 8percent, India 10 percent and Brazil 6percent. Factors such as scale in sourcing, merchandising, operational effectiveness and ambience have driven the spread of organized retail. Grocery, electronics are examples of categories that compete on the strength of better pricing, which in turn is driven by superior sourcing and merchandising and cost-efficient operations. Wal-Mart, Home Depot and Kingfisher are benchmark retailers in these fields. In apparel, home furnishings and furniture, the advantage is driven by the marketers ability to provide better products in a comfortable ambience at affordable prices. In these cases sourcing capability has to be backed by strong design capability and store management. IKEA and GAP are good examples of this model of retailing.
17

Over the last few decades, retail formats have changed radically. The basic department stores and co-operatives of the early 20th Century have given way to mass merchandisers, hypermarkets, warehouse clubs, category killers, discounters and convenience stores. Each of these formats has been driven by marketers need to offer relevant, distinctive and economic propositions to an evolving consumer base. Global retailers have also reached a position of strength that enables their brand to be leveraged across a wide range of services. Many of them have expanded their offering, over the years to include fuel retail, car retail, convenience services and personal financial services. This has put them in a position where they are not only beginning to capture growth from geographical expansion, but are also entering large new areas of business. The recent evolution of the Internet has helped further broaden the scope of operations of large retailers. Further, a large number of retailers are pursuing innovative aggregation and supply chain-streamlining initiatives using B2B technology.

18

PROCESS OF STRATEGIC MANAGEMENT

A process in management is defined as a perceptible flow of information throughinterrelated stages of analysis directed towards the achievement of an aim. There are four basic elements in the process of strategic management; Environmental scanning Strategy formulation Strategy implementation Evaluation & control Environmental scanning: It involves monitoring the environment, & evaluating & disseminatinginformation obtained from the internal & external environments. The aim of this is to identify the strategic factors that may determine the future of the firm. An organization derive several benefits from environmental scanning including the development of a common perception, identification of strengths & weaknesses, an understanding of trends & conditions, & optimum utilization of internal & external information. SWOT analysis is the most commonly used technique for environmental scanning. SWOT is an acronym for the strengths, weaknesses, opportunities & threats faced by a firm. Strengths & weaknesses are within the control of the top management in the long run. Opportunities & threats are external factors that are outside the control of the organization. The key strengths of the firm become the core competencies that the organization can use to gain competitive advantage.

19

ENVIRONMENTAL SCANNING FOR BIG BAZAAR

INTERNAL ENVIRONMENTAL SCANNING The SWOT analysis of Big Bazaar is as follows: Strengths:

It has a good customer base. -Bazaar a hypermarket with over 1, 70,000 products as thefirst offering in value retailing segment. Products are cheaper than the marketprice by as much as 5 to 60%.

between 5 to 20%. -Bazaar has been positioned to the customer as a place where thecustomer can shop for each & everything for which if goes to a market. Weakness: yet trapped the whole market. political environment Opportunities

Threats shoppers stop, Wal-Mart

20

EXTERNAL ENVIRONMENTAL SCANNING Before Big Bazaar coming to India their strategy was to scan the environment &find the location where the Mall should be situated. It will also use various tools such as surveys for getting the preferences of big bazaar. We got the opinion that Big Bazaar sustain in the market or not, where it is situated. For gaining the opinions from the local people they will prepare the questionnaire and get it filled from the people. Then they will form a focus group for getting more and more of information. They can also adopt open forum strategy for environmental scanning. For that purpose we have prepared a questionnaire and collected the data. Analysis of political and legal factors: In India there is a political triangle this consist of the municipal corporationwhich belongs to Indira congress, the other is MLA which belongs to Shivsena and BJPand MP which belongs to the national congress. The congress political people arehaving contacts with common people and not much concerned with merchants butcontradictory to this that the BJP and Shivsena they are having more concern aboutmerchants of the city. As Municipal Corporation is in the hands of congress party andthey are ready to have big bazaar in India that is the reason they are ready to providesome kind of perks to big bazaar they are as follows: Subsidy from octroi, different taxes like land tax and water tax Help in taking over properties and real estate Some concessions from labor laws Socio-cultural factors: Now a days in India also proportion of working womens is increasing and the literacy rate has also increased this will lead into increase in standard of living of people. As people are aware about western culture through various Medias they are very much eager to follow the western culture. People from talukas are coming to India as it is a district place for shopping, taking education, for working etc. this also creates demand. There is a majority of middleclass people in India and it is a most populated district consisting 13 talukas. The major communities in India city are Hindus, Muslims, Christians, Jain, Sindhi and Punjabi.

21

ECONOMIC ENVIRONMENT: As this district is having 13 talukas and most of them are having goodagricultural base which ultimately leads to higher seasonal income. Another one is that most of the people who are residing in India they are engaged in various jobs and businesses they is the part of regular income group. So this will lead to higherpurchasing power and a huge potential market. One more advantage to big bazaar coming to India is availability of cheap labor. From the external analysis we came to know that the people residing the Indiacity are in the favor of Big Bazaar coming to India. The location preferred by them is Savedi as it is highly developed and accessible area to all the people. Strategy formulation: It refers to the development of long term plans for managing opportunities &threats in the external environment, & for utilizing the strengths & overcoming theweaknesses within the firm. A strategist takes into consideration components ofstrategic management like company mission, company profile, external environment strategic analysis & choice, long term objectives, grand strategy while formulating the strategy. Strategy formulation helps an organization to; Capitalize on available opportunities. Address the challenges faced by the organization. Provide leadership that understands & masters change. Incorporate an in-depth planning model that involves the community.

22

STRATEGIC FORMULATION FOR BIG BAZAAR:

Big Bazaar will form some strategies for the long-term goals. First of all it will find out what are the opportunities present in the market so that they can grab it so as to expand their business, trap a particular segment of people, and establish a good client base and to generate good revenues. They will also keep in mind the threats that they have from their competitors and also form the small grocery shops. They will find out some strategies to overcome the threat and to sustain in the market for a longerperiod of time.

23

COMPANY PROFILE BIG BAZAAR

Big Bazaar comes under the Pantaloon Retail India Limited (PRIL). PRIL wasearly to realize the potential of the huge middle-class population in India. We started the operations with a trouser brand, Pantaloon. In the initial stageswe had small format outlets branded Pantaloon S hopee, whichwere franchise operationsrealizing the problemsassociated with franchisemodel, we decided to have our ownretail outlets. They launched theown retail store, Pantaloons. I n1997, they launched Big-Bazaar a hypermarket with over 1, 70,000 products as the first offering in value retailing segment. They have introduced the concept of seamless malls in India through the new format Central. We have wide network of Pantaloons stores spread across the country. Hence, apart from retailing lifestyle products, it ventured into value retailing by launching the hypermarket chain. Big Bazaar is a chain that stocks all home need products under one roof; spread over 30,000 square feet of land, across different cities in India. It has been positioned as Is se sasta aur acha kahin nahi, (Nothing cheaper and better anywhere) indicating the value of stores. Big Bazaar stocks over 200,000 products that include apparel, food products, home appliances and cosmetics. Products are cheaper than the market price by as much as 5 to 60%. Apparels are cheaper by 25 to60%while the price difference on the other products varies between 5 to 20%.On Oct. 12, 2001, we launched Big-Bazaar as offering in the value retailing segment. By removing inefficiencies from the distribution chain we are able to unleash attractive savings, which are passed on to the consumer. Big-Bazaar is Indias firs thyper market in the discount store format. Big-Bazaar provides more than 2,00,000items- food, grocery, utensils, kitchen needs, home needs, bath needs, toys, stationary,electronics & white goods which are sold at a discount to the maximum retail price.Price is the principal value proposition at these stores.A big driver of the Big Bazaar is the product variety. This is achieved by selling wide range of products & through the Shopin-Shop format. As a result, a typical Big-Bazaar comprises shops that stocks medicines, optical accessories, camera rolls, bakery products, dry fruits, crockery, glassware, health & beauty products, ladies accessories, electronics infant necessities, watches, clocks, computer accessories, food & beverages, stationary, readymade garments, household appliances, home furnishings, baggage We believe this is a win-win situation as the customer is assured of product availability, the shop owner can benefit of the in structure & we enjoy assured income without needing to stock inventory. Also the shop-in-shop offering is able to increase the customer traffic in to the stores. The Big-Bazaar has been positioned to the customer as a place where the customer can shop for each & everything for which if goes to a market. The number of Big-Bazaar stores has increased from 4 in 2002 to 21 Oct 24, 2005.They have also launched private label initiative in Big-Bazaar. Understanding Of the apparel industrial, decades of experience& a vertically, integrated structureprovides with more compelling reasons to expand the number of private labels. We have launched a full range of accessories to supplement the apparel business including imitation jewellery, sunglasses, watches, mobile phones etcAnalysts attribute the success of PRIL to cheaper
24

sourcing of products and lowerdistribution cost. Pantaloons sourced its products through Consolidators. There was A consolidator for each product category. These consolidators were responsible for attractive savings, which are passed on to the consumer. Big-Bazaar is Indias firsthypermarket in the discount store format. Big-Bazaar provides more than 2,00,000items- food, grocery, utensils, kitchen needs, home needs, bath needs, toys, stationary,electronics & white goods which are sold at a discount to the maximum retail price. Price is the principal value proposition at these stores.A big driver of the Big Bazaar is the product variety. This is achieved by selling wide range of products & through the Shop-in-Shop format. As a result, a typical Big-Bazaar comprises shops that stocks medicines, optical accessories, camera rolls, bakery products, dry fruits, crockery, glassware, health & beauty products, ladies accessories, electronics infant necessities, watches, clocks, computer accessories, food & beverages, stationary, readymade garments, household appliances, home furnishings, baggage We believe this is a win-win situation as the customer is assured of product availability, the shop owner can benefit of the in structure & we enjoy assured income without needing to stock inventory. Also the shop-inshop offering is able to increase the customer traffic in to the stores. The Big-Bazaar has been positioned to the customer as a place where the customer can shop for each & everything for procuring quality goods at the cheapest possible price, and were paid commissions on their sale at the store. The consolidator directly dealt with manufacturers, and as are sult the distribution cost could be slashed as no intermediates were involved. In addition to discounts on products through the year, Big Bazaar also held events such asKitchen Mela, Trouser Mela, etc. to attract customers.

25

MANAGEMENT OF BIG BAZAAR 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, Whole time 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 theimplementation 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 Haribhakti, 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.

26

BIG BAZAAR FOR THE GREAT INDIAN MIDDLE CLASS

It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class. Itwas started as a hypermarket format in Mumbai with approx. 50,000 sqft of space. Its values and missions are to be the best in Value Retailing by providing the cheapest pricesand hence go the tag-line Is se sasta aur achcha kahin nahin It sells variety of merchandise at affordable rates, the prices of which it claims are lowestin the city but the level of services offered is also very low.The following graph shows the retail life cycle and we can say that Big Bazaar is currentlyat the Growth Stage. OBSERVATION: There were various observations made from the time I entered the store. They can b esummed up as follows: relates to each category of product oFood Bazaar Depot- books oM-bazaar Electronic Bazaar oFurniture BazaarFootwear Bazaar

shelves as well as some product items. -house packaging not efficiently done. maximum number in limited area. direction creates confusion. f only around 10% of the crowd. -staffed but layout is very good. Shelf space is used very well to stock products with clear distinction.

27

POSITIONING STRATEGY
Company vision, mission and core values Future the word that signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored,write rules yet unwritten; create new opportunities and new successes. To strive for aglorious future brings to us our strength, our ability to learn, unlearn and re-learn ourability to evolve.They, in Future Group, will not wait for the Future to unfold itself but createfuture scenarios in the consumer space and facilitate consumption becauseconsumption is development. Thereby, we will effect socio-economic development forour customers, employees, shareholders, associates and partners.Their customers will not just get what they need, but also get them where, how and when they need. They will not just post satisfactory results, They will write success stories. They will not just operate efficiently in the Indian economy, we will evolve it.They will not just spot trends; They will set trends by marrying ourunderstanding of the Indian consumer to their needs of tomorrow. It is this understanding that has helped us succeed. And it is this that will help ussucceed in the Future. They shall keep relearning. And in this process, do just one thing. Rewrite Rules. Retain Values. Group Vision Future Group shall deliver Everything, Everywhere, Every time for Every IndianConsumer in the most profitable manner. GROUP MISSION served only by creating and executing future scenarios in the consumption space leading to economic development. making consumption affordable for all customer segments for classes and for masses. e Indian brands with confidence and renewed ambition. - conscious and committed to quality in whatever wedo. shall ensure that our positive attitude, sincerity, humility and uniteddetermination shall be the driving force to make us successful.

28

CORE VALUES ourselves.

our conduct. Introspection: leading to purposeful thinking. receptive to new ideas, knowledge and information. Nurturing Relationships: to build long-term relationships. Simplicity & Positivity: Simplicity and Positivity in our thought, business Action. : to be flexible and adaptable, to meet challenges.

29

VARIOUS STRATEGIES After big bazaar coming to India it will be at its introduction stage so it is quiteobvious that it will adopt some strategy for attracting the customers. The strategywhich they would adopt is that they will have low price, high advertisements, it wouldoffer different kind of schemes, offers,discounts, scratch cards, coupons. TheyWouldalso give stress on providing the prompt services like home delivery, after salesse rvices,guarantees and warrantees, so as to sustain in the market and to create a good reputation.Following are some additional strategies they require to adopt: Thorough market research Site selection and evaluation Employee search and training Less premium and low price branded goods in merchandise assortment. Gaming zone and restaurant Promotional activities like advertisement, seasonal discounts, festival offers, etc.While formulating strategies we should keep in mind that strategies should be flexible.This is helpful to change or revival of strategy.

30

TYPES OF RETAIL MARKETING

Store Retailing Store retailing provides consumers to shop for goods and services in a wide variety of stores and it also help the Consumers to get all the needed goods and services from one shop only. The different types of store retailing are given below: Specialty Stores These stores focus on leisure tastes of different individuals. They have a narrow product line with deep assortment such as apparel stores, sporting goods stores, furniture stores, florists and bookstores. These stores are usually expensive and satisfy the needs of selected consumers who have liking or preference for exclusive things. Departmental Store These stores are usually built in large area and keep variety of goods under one shed. It is usually divided into different sections like clothing, kids section, home furnishings, electronic appliances and other household goods. In a departmental store a consumer can buy variety of goods under one shed. Supermarket These stores are relatively large, low cost, low margin, high volume, self service operations designed to serve total needs for food, laundry and household maintenance products. Supermarkets earn an operating profit of only 1 percent on sales and 10percent on net worth. Convenience Stores These are relatively small stores located near residential area, open for long hours seven days a week, and carrying a limited line of high turnover convenience products at slightly higher prices than departmental stores. Many such stores also have added takeout sandwiches, coffee and pastries. Off - Price Retailer These stores sell goods at low price with lower margins & higher volumes. These stores sell goods with deteriorated quality. The defects are normally minor. This target at the persons belonging to the lower income group, though some have a collection of imported goods aimed to target the younger generation. The company owned showroom selling the seconds products is a typical example of off - price retailer. Discount Store These stores sell standard merchandise at lower prices by accepting lower margins and selling higher volumes. The use of occasional discounts or specials does not make a discount store. A true discount store regularly sells its merchandise at lower prices, offering mostly national brands, not inferior goods.
31

In recent years, many discount retailers have traded up. They have improved decor, added new lines and services, and opened suburban branchesall of which has led to higher costs and prices and as some department stores have cut their prices to compete with discounters. Not only that, discount stores have moved beyond general merchandise into specialty merchandise stores, such as discount sporting goods stores, electronics stores, and bookstores. Catalog Showroom Catalog showrooms generally sell a broad selection of high-markup, fast-moving, brandname goods at discount prices. These include jewelry, power tools, cameras, luggage small appliances, toys, and sporting goods. Catalog showrooms make their money by cutting costs and margins to provide low prices that will attract a higher volume of sales. Catalog showrooms have been struggling in recent years to hold their share of the retail market.

32

FINDINGS AND SUGGESTIONS Big Bazaar is planning to position itself as a value retailer after being hived off asan independent company within the Future Group. While a new company has beenfloated under the name of Future Hypermarket, the retailer is now considering a newname to represent its discount format. Speaking to Business Line, Mr. Rajan Malhotra,Chief Executive Officer, Big Bazaar, said, Although we have registered a new companyunder the name of Future Hypermarket, we intend changing its name. Big Bazaar is nota hypermarket and is more of a value-for-money format and that is what the newcompany would stand for.Currently, Big Bazaar contributes 64 per cent of the Future Groups total turnoverof Rs 7,000 crore. With its standalone status as a company, Big Bazaar is expecting todrive greater efficiencies in its back-end operations. As Mr. Malhotra says, Therewould be clarity for the concept as we become a separate company. There would be back-end efficiency in our operations. With amalgamation of formats under variousheads ranging from Food Bazaar to Furniture Bazaar, Big Bazaar is looking atdi stinguishing itself as a value retailer in its segment rather than being clubbed withthe rest of the existing hypermarkets in the country.Besides, it is looking forward to re-launching its private label, DJ & C, as anational brand by giving the brand rights to Future Brands (the group vertical handling brands in the group). Targeting the youth segment, DJ&C is today worth Rs 200 crore inBazaars kitty. We intend re-launching it as a national brand through other retailoutlets by the end of this month. We believe Big Bazaar has moved into a mature phaseand that is a compelling reason to launch our youth brand at a national level. The DJ&C brand has crossed a turnover of Rs 200 crore and now has enough pull to take it to itsnext level, states Mr. Malhotra. Having forged long-term relationships with a host of FMCG players through MoUs, Big Bazaar is open to new categories being tested through its formats. We are open to the highest selling brands such as Pears and Dove opening the new age categories at our stores, says Mr. Malhotra. Meanwhile, Big Bazaar has roped in cricketer and India ODI captain Mahendra Singh Dhoni as the brand ambassador for its extensive collection of fashion apparel. 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 marker. Headquartered in Mumbai (Bombay), the company operates over 7 million square feet of retail space, hasover1000 stores across 51 cities in India and employs over 24,000 people.The company's leading formats include Pantaloons, a chain of fashion outlets, BigBazaar, 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, bazaar and Star and Sitara. The company also operates an online portal, future bazaar.com.A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, alarge-format home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to the
33

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 Year2007 at the World Retail Congress held in Barcelona .Pantaloon Retail is the flagship company of Future Group, a business group catering tothe entire Indian consumption space. Future Group is one of the country's leading businessgroups present in retail, asset management, consumer finance, insurance, retail media, retailspaces and logistics. The group's flagship company, Pantaloon Retail (India) Limited operatesover 7 million square feet of retail space, has over 1000 stores across 51 cities in India and employs over 24,000 people. Some of its leading retail formats include, Pantaloons, Big Bazaar,Central, Food Bazaar...

34

CONCLUSION
The retail sector has played a phenomenal role throughout the world in increasing productivity of consumer goods and services. It is also the second largest industry in US in terms of numbers of employees and establishments. There is no denying the fact that most of the developed economies are very much relying on their retail sector as a locomotive of growth. The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the countrys GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry. For launching Big bazaar in India city is companys mission to expand the business. For this purpose company is carrying out many marketing strategy. To study this marketing strategy I will be visiting the mall and also the manager to collect the data from them. Also Ill be collecting data from the customer as what strategies they liked.

35

REFERANCES
www.franchiseindia.com www.ksatechnopak.com www.franchiseindia.com Magazines : The Franchising World.JournalsIndian Management. www.google.com Reatail management textbook

36