indian organised retail industry

8/11/2019 Indian Organised Retail Industry

1/92

INDUSTRIAL TRAINING PROJECT REPORT

UNDER TAKEN

@

ON

INDIAN ORGANIZED RETAIL INDUSTRY

(BIG BAZAR)

(Approved by AICTE, Govt. of India)

ACADEMIC SESSION

Under the guidance of: Submitted by:

Supervisor Name Your NameLecturer (college name) Roll: - XXXX

College Address

CollegeLogo


2/92

DECLARATION

I Undersigned the student of MBA 3rdSEM by declare that the project report

is my own work and has carried out under the guidance and supervision of Prof.

name. Further I declare that it has not been submitted to any other university of

examination.

Date: Sign. Of Student


3/92

PREFACE

In this age of neck to neck competition, there is much importance given to

practical knowledge. The theorical knowledge is not sufficient to understand the

boundless field of business management.

Today every person wants to be a master in the field they are in. The practical

training is a life of management student. In modern world the importance of

management is increasing day by day. Industrial training provide a student

sufficient knowledge to develop an education to connect theory and practical.

So to fulfill our purpose I have done training at Big Bazar


4/92

ACKNOWLEDGEMENT

It is my great pleasure to present this report before you. I sincerely would like to

show my gratitude towards all those persons who have helped me throughout my

project work

I am heartily thankful to Manager name at Big Bazar for giving me his valuable

guidance for preparing this report. He has been an exceptional mentor during these

two months of training. It has been a great learning experience of being a traineeunder him.

I would like to express my special thanks to all the another official who has helped

me a lot during this SIP. Their critical advices helped me to make this report more

effective.

Moreover, I thanks to prof. Name who guided me before and after the industrial

training. He gave me great support to prepare this project, too. And all who

directly or indirectly helped me in preparing this report.


5/92

Chapter-1

Introduction

Retailing is evolving into a global, high-tech business. Wal-Mart is now theworlds largest corporation and has become the largest food retailer in the UnitedStates. French based Carrefour is the worlds second largest retailer. Retailing indeveloped countries is big business and better organized. But the retail scenarioin India is different much of it is in unorganized sector. There are more than 12million retail outlets of various sizes and formats. And almost 90% of them are less

than 500 sq. ft. in size and the per capita retail space is only 2 sq. ft. while US has16 sq. ft.

India has the largest number of outlet in world i.e. 9 outlets for 1000 people.Most of them are independent and contribute to the retail sales. Because ofincreasing number of nuclear families, working women, greater work pressure andgreater commuting time, convenience has become a priority for Indian customers.They ever want things under one roof for easy access and multiplicity of choice.

The growth and development of organized retailing is driven by two main factors-prices and benefits the customer cant resist.

India is rapidly involving into a competitive market place with potentialtarget consumers in the niche middle class segments. The market trend indicatestremendous growth opportunities. The buying behavior and lifestyle in India tooare changing and the concept of value for money is fast catching on in Indianretailing. This is the evident from the expansion of the Pantaloons chain intothe large format, Big Bazaar. This growth in retail sector is making the retailers

powerful intermediates in the marketing channel, bridging the gap betweenmanufactures and consumers.


6/92

Keeping in mind the rapid growth of Indian retail industry and its brightfuture, this has always been a thrust area for me. Big Bazaar is at the top positionin Indian retail industry. That is why it attracted me to have summer training (onthe job training) in Big Bazaar, Udaipur. Big Bazaar is the retail chain of FutureRetail (India) Ltd. And it provides a wide range of products availability for thecustomers.

As a matter of fact, retail is the buzz word of the Indian economy today.As retail industry is growing at a high pace I wanted to have an overview ofthe subject. I have chosen Big Bazaar retail chain for the summer training (onthe job training) because Big Bazaar retail is very upcoming retail companywhich is continuously changing its activities with the change of time. I wanted to

understand their marketing activities and liked to relate how similar or dissimilar itis from what I have studied in marketing management.

To execute the project, I underwent on the job training at Big Bazaar,Udaipur. The interaction with the Store Manager, Operational Manager and otherstaff personnel was fruitful to me as it cleared many core concepts when it came to

practical application.

The main objective of the project was to get practical training of what we havelearnt theoretical in the classroom. In other words, it was to get practical exposureof all the marketing skills and how to implement in the real situation.


7/92


8/92

Chapter-2

Industry Profile

Retailing

The word retail is derived from the French word retailer, meaning to

cut a piece off or to break bulk. In simple terms, it implies a first-handtransaction with the customer.

Retailing involvers a direct interface with the customer and thecoordination of business activities right from the concept or design stage of a

product or offering to its delivery and post-delivery service to the customer.The industry has contributed to the economic growth of many countries and isundoubtedly one of the fastest changing and dynamic industries in the world today.

Indian retail industry

The Indian retail industry is the fifth largest in the world. Comprisingof organized and unorganized sectors, India retail industry is one of the fastestgrowing industries in India, especially over the last few years. Though initially,the retail industry in India was mostly unorganized, however with the change oftastes and preferences of the consumers, the industry is getting more popular these

days and getting organized as well. With growing market demand, the industryis expected to grow at a pace of 25-30% annually. The India retail industry isexpected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by theyear 2010.


9/92

The retail scenario in India is unique. Much of it is in the unorganized sector,with over 12 million retail outlets of various sizes and formats. Almost 96% ofthese retail outlets are less than 500 square feet in size, the per capital retail spaceIndia being 2 squre feet compared to the US figure of 16 square feet Indias percapital retailing space is thus the lowest in the world.

With more than 9 outlets per 1000 people, India has the largest number in theworld. Most of them are independent and contribute as much as 96% to total retailsales. Because of the increasing number of the nuclear families, working women,greater work pressure and increased commuting time, convenience has become a

priority for Indian consumers. They want everything under one roof for easy accessand multiplicity of choice. This offers an excellent opportunity for organizedretailers in the country which account for just 2% and modern stores 0.5% of theestimated US Dollar 180 billion worth of goods that are retailed in India every

chain, Wal-Mart.

Growth of Indian retail industry

According to the 8th Annual Global Retail Development Index (GRDI)of AT Kearney, India retail industry is the most promising emergingmarket for investment. In 2007, the retail trade in India had a share of 8-10% in theGDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is alsoexpected to reach 22% by 2010.

According to a report by North bride Capita, the India retail industry isexpected to grow to US$ 700 billion by 2010. By the same time, the organizedsector will be 20% of the total market share. It can be mentioned here that,the share of organized sector in 2007 was 7.5% of the total retail market.

India is rapidly evolving into a competitive marketplace with potential targetconsumers in the niche and middle class segments. The market trends indicatetremendous growth opportunities. Global majors too are showing a keen interestin the Indian retail market. Over the years, international brands like marks and

spencer, Samsonite, Lacoste, McDonalds, Swarovski, Dominos among a host ofothers have come into India through the franchise route following the relexationof FDI (Foreign Direct Investment) restrictions. Large Indian companies- amongthem the Tata, Goenka and the Piramal groups are investing heavily in thisindustry.


10/92

Major Retailers in India

Pantaloon:

Pantaloon is one of the biggest retailers in India with more than 450 storesacross the country. Headquartered in Mumbai, it has more than 5 million sq. ftretail space located across the country. It's growing at an enviable pace and isexpected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloon launchedcountry's first hypermarket Big Bazaar. It has the following retail segments:

Food & Grocery: Big Bazaar, Food Bazaar

Home Solutions: Hometown, Furniture Bazaar, Collection-I

Consumer Electronics: e-zone

Shoes: Shoe Factory

Books, Music & Gifts: Depot

Health & Beauty Care: Star, Sitara

E-tailing: Futurebazaar.com

Entertainment: Bowling Co.

Tata Group

Tata group is another major player in Indian retail industry with its subsidiaryTrent, which operates Westside and Star India Bazaar. Established in 1998,it also acquired the largest book and music retailer in India Landmark in 2005.Trent owns over 4 lake sq. ft retail space across the country.

RPG Group

RPG Group is one of the earlier entrants in the Indian retail market, when itcame into food & grocery retailing in 1996 with its retail Food world stores. Laterit also opened the pharmacy and beauty care outlets Health & Glow.


11/92

Reliance

Reliance is one of the biggest players in Indian retail industry. More than 300Reliance Fresh stores and Reliance Mart are quite popular in the Indian retailmarket. It's expecting its sales to reach Rs. 90,000 crores by 2010.

AV Birla Group

AV Birla Group has a strong presence in Indian apparel retailing. Thebrands like Louis Philippe, Allen Solly, Van Heusen, Peter England are quitepopular. It's also investing in other segments of retail. It will invest Rs. 8000-9000crores by 2010.

Another big player in the segment will be the Bharti group. Overhauling this

part of the supply chain will be the key to the success of any retail venture in foodand groceries segment.

Wal-Mart, the worlds largest retailer, and Bharti Enterprises have signed aMemorandum of Understanding (MoU) to explore business opportunities in theIndian retail industry. This joint venture will mark the entry of Wal-Mart into theIndian retailing industry a retail chain like Future Groups Big Bazaar may beclocking heady sales (growing at 100% year- on- year), but the dozen odd shops

operating in its proximity wear a deserted look, giving a somewhat hollow ringto the much- talked- about retail boom in the country. The key players currentlyoperating in the Indian retail industry includes Future Group, Trent Ltd, RPGEnterprise, Vishal Retail Ltd, Shoppers Stop Ltd, Bata India Ltd, Provogue IndiaLtd, Vdeocon Appliances Ltd, ITC Ltd, Godrej Agrovert Ltd, and DCM-HariyahKissan Bazaar.


12/92

Retailers ranging from Pantaloon to RPG to Piramals or the Tatas areworking towards exploiting this model, perceived by consumers as more valueenhancing. But in the long run, what is most likely to succeed is a more balancedmulti-format strategy. Finally, while in the first flush of the retail boom, theelimination of traditional intermediaries may bring windfall gains (as well as bring

welcome and much-needed relief to the producers), this source will increasinglydry out as competition intencifies and margins come under pressure a few yearsdown the line. What would set the survivors apart from those who are forced tosell out or go belly-up will be differentiators like location, value-added services(convenience), private labels and customer loyalty programs other than price.The last, a result of retailer-manufacturer tie-ups, state-of-the-art supply chaininfrastructure, global sourcing and scale will be a key factor. And, if experience inother markets is anything to go by, an uncanny ability to read shifting trends.


13/92

Retail formats in India

Hyper marts /supermarkets: large self-servicing outlets offering products from avariety of categories.

Mom-and-pop stores: they are family owned business catering to small

sections; they are individually handled retail outlets and have a personaltouch.

Departmental stores: are general retail merchandisers offering qualityproducts and services.

Convenience stores: are located in residential areas with slightly higherprices goods due to the convenience offered.

Shopping malls: the biggest form of retail in India, malls offers customers amix of all types of products and services including entertainment and foodunder a single roof.

E-trailers: are retailers providing online buying and selling of products andservices.

Discount stores: these are factory outlets that give discount on the MRP.

Vending: it is a relatively new entry, in the retail sector. Here beverages,snacks and other small items can be bought via vending machine.

Category killers: small specialty stores that offer a variety of categories.They are known as category killers as they focus on specific categories, suchas electronics and sporting goods. This is also known as Multi Brand Outletsor MBO's.


14/92

Specialty stores: are retail chains dealing in specific categories and providedeep assortment. Mumbai's Crossword Book Store and RPG's Music Worldis a couple of examples.

Challenges facing Indian retail industry

The tax structure in India favors small business

Lack of adequate infrastructure facilities

High cost of real estate

Dissimilarity in consumer groups

Restrictions in Foreign Direct Investment

Shortage of retail study options

Shortage of trained manpower

Low retail management skill

The retail industry in India is currently growing at a great pace and isexpected to go up to US$ 833 billion by the year 2013. It is further expected to

reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has gota high growth rates, the consumer spending has also gone up and is also expectedto go up further in the future. In the last four year, the consumer spending in Indiaclimbed up to 75%. As a result, the India retail industry is expected to grow furtherin the future days. By the year 2013, the organized sector is also expected to growat a CAGR of 40%.


15/92

Categories of Indian Retailers :-

Corporate Houses

Tatas: Tata TrentRPG group: Food World, Health and Glow etc.ITC: Wills Life StyleRaheja group: (Shoppers Stop), DLF (DT cinemas).

Nike, Rbk. ZodiacMulti-brand outlets

Vijay Sales, Viveks etc.Manufacturers/ ExportersPantaloons, Bata, Weekender

Classifying Indian Retailers:

1. Modern Format Retailers

Supermarkets (food World)Hypermarkets (Big Bazaar)Department Stores (shoppers Stop)Specialty Chains (Ikea)Company Owned Company Operated

2. Traditional Format Retailers

Kiranas: traditional Mom and Pop StoresKiosksStreet MarketExclusive /Multiple Brand Outlets

3. Hypermarket

Big BazaarGiantsShopriteStar


16/92

4. DepartmentLifestylePantaloonsPyramidsShoppers StopTrent

5. EntertainmentFame Ad labsFun RepublicInoxPVR

Chapter-3

Company Profile

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is oneof Indias leading business houses with multiple businesses spanning across theconsumption space. While retail forms the core business activity of Future Group,group subsidiaries are present in consumer finance, capital, insurance, leisure andentertainment, brand development, retail real estate development, retail media andlogistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 16million square feet of retail space in 73 cities and towns and 65 rural locationsacross India. Headquartered in Mumbai (Bombay), Pantaloon Retail employsaround 30,000 people and is listed on the Indian stock exchanges. The companyfollows a multi-format retail strategy that captures almost the entire consumption


17/92

basket of Indian customers. In the lifestyle segment, the group operates Pantaloons,a fashion retail chain and Central, a chain of seamless malls. In the value segment,its marquee brand, Big Bazaar is a hypermarket format that combines the look,touch and feel of Indian bazaars with the choice and convenience of modern retail.

In 2008, Big Bazaar opened its 100th store, marking the fastest ever organicexpansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 inKolkata, Hyderabad and Bangalore.

The groups speciality retail formats include supermarket chain Food Bazaar,sportswear retailer - Planet Sports, electronics retailer - eZone, home improvementchain - Home Town and rural retail chain, Aadhaar, among others.

Future Capital Holdings, the groups financial arm provides investment

advisory to assets worth over $1 Billion that are being invested in consumer brandsand companies, real estate, hotels and logistics. It also operates a consumer financearm with branches in 150 locations.

Other group companies include, Future Generali, the groups insuranceventure in partnership with Italys Generali Group, Future Brands, a branddevelopment and IPR company, Future Logistics, providing logistics anddistribution solutions to group companies and business partners and Future Media,a retail media initiative.

The groups presence in Leisure & Entertainment segment is led through,Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leadingleisure chains, Sports Bar and Bowling Co. and family entertainment centres,F123. Through its partner company, Blue Foods the group operates around100 restaurants and food courts through brands like Bombay Blues, SpaghettiKitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato.


18/92

Future Groups joint venture partners include, US-based stationeryproducts retailer, Staples and Middle East-based Axiom Communications.

Future Group believes in developing strong insights on Indian consumersand building businesses based on Indian ideas, as espoused in the groups corevalue of Indianness. The groups corporate credo is, Rewrite rules, Retainvalues.

Future Retail

Retail forms the core business activity at Future Group and most of its

businesses in the consumption space are built around retail. Future Groups retailnetwork touches the lives of more than 200 million Indians in 73 cities and 65

rural locations across the country. The group currently operates around 1,000storesspread over 16 million square feetof retail space. Present in the value andlifestyle segments, the groups retail formats cater to almost the entire consumptionexpenditure of a wide cross-section of Indian consumers.

Led by Pantaloon Retail, the groups flagship company, the group managessome of Indias most popular retail chains like Pantaloons - a chain of fashiondestinations, Big Bazaar - a uniquely Indian hypermarket chain, Food Bazaar -a supermarket chain that blends the look, touch and feel of Indian bazaarswith

aspects of modern retail like choice, convenience and quality and Central- a chainof seamless destination malls. Some of its other formats include Ethnicity- India'sfirst concept store, which recreates the experience of a traditional ethnic marketin a modern retail format,Brand Factory, Planet Sports, aLL, Top 10 and Starand Sitar.

Retailing of products and services related to home building and home


19/92

improvement is led through the groups formats, Home Town, a large-formathome solutions store, along with specialized formats for home furniture and homefurnishing through, Collection iand Furniture Bazaarand consumer electronicsthrough eZoneand Electronics Bazaar.

The group also operates Indias leading rural retailing chain, Aadhaarthat ispresent in over 65 locations in rural India. Aadhaar, an agri-service cum rural retailinitiative, provides a complete solution provider for the Indian farmer.

In 2007, Pantaloon Retail was awarded the International Retailer of the Yearby the US-based National Retail Federation (NRF) and the Emerging MarketRetailer of the Year at the World Retail Congress held in Barcelona.

Corporate Statements:-

Future Group manifesto

Future- the word which signifies optimism, growth, achievement, strength,beauty, rewards and perfection. Future encourages us to explore areas yetunexplored, write rules yet unwritten, create new opportunities and new successes.To strive for a glorious future, it brings to us our strength, our ability to learn,unlearn and re-learn our ability to evolve.

We, in Future Group, will not wait for the future to unfold itself but create futurescenarios in the consumer in the consumer space and facilitate consumption

because consumption is development. Thereby, we will effect socio-economic

development for our customers, employees, shareholders, associates and partners.Our customers will not just get what they need, but also get them where, how andwhen they need.

We will not just post satisfactory results, we will create success stories.

We will not just operate efficiently in the Indian economy, we will evolve it.


20/92

We will not just spot trends, we will set trends by marrying our understanding ofthe 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. We shall keep relearning.

And in this process, do just one thing.

Rewrite Rules, retain Values

Vision

Future Group shall deliver Everything, Everywhere, Every time for Every Indianconsumer in the most profitable manner.

Mission


21/92

1. We share the vision and belief that our customers and stakeholders shall beserved only by creating and executing future scenarios in the consumptionspace leading to economic development.

2. We will be the trendsetters in evolving delivery formats, creating retailrealty, making consumption affordable for all customer segment- for classesand for masses.

3. We shall infuse Indian brand with confidence and renewed ambition.

4. We shall be efficient, cost- conscious and committed to quality in whateverwe do.

5. We shall ensure that our positive attitude, sincerity, humility and united

determination shall be the driving force to make us successful.

Core Values

Indianness: confidence in ourselves.Leadership: to be a leader, both in thought and business.Respect & Humility: to respect every individual and be humble in ourconduct.Introspection: Leading to purposeful thinking.Openness: to be open and respective to new ideas, knowledge andinformation.Valuing and nurturing relationship: to build long term relationships.Simplicity & positivity: Simplicity and positivity in our thought, businessand action.Adaptability: to be Flexible and adaptable, to meet challenges.


22/92

Board of Directors

Mr. Kishore Biyani, Managing Director

Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited andthe Group Chief Executive Officer of Future Group.

Mr. Gopikishan Biyani, Wholetime Director

Gopikishan Biyani, is a commerce graduate and has more than twenty years ofexperience in the textile business.

Mr. Rakesh Biyani, Wholetime Director


23/92

Rakesh Biyani, is a commerce graduate and has been actively involved incategory management; retail stores operations, IT and exports. He has beeninstrumental in the implementation of the various new retail formats.

Mr. Vijay Biyani, Wholetime Director

Vijay Biyani has more than twenty years of experience in manufacturing,textiles and retail industry and has been actively involved in the financial,audit and corporate governance related issues within the company.

Mr. Vijay Kumar Chopra, Independent Director

V.K.Chopra is a fellow member of The Institute of Chartered Accountants ofIndia (ICAI) by profession and is a Certified Associate of Indian Institute ofBankers (CAIIB). His banking career spans over 31 years and he has served

senior management positions in Central Bank of India, Oriental Bank ofCommerce, SIDBI, Corporation Bank and SEBI.

Mr. Shailesh Haribhakti, Independent Director

Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and aCertified 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 IndianPetrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc. He is on theBoard of Company since June 1, 1999.

Mr. S Doreswamy, Independent Director


24/92


25/92

Mr. Anil Harish, Independent Director

Anil Harish, is the partner of DM Harish & Co. Associates & Solicitors and an LLM from University of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bank and

Hinduja TMT, among others.

Company Timeline:-

Major Milestones

1987 Company incorporated as Manz Wear Private Limited.Launch of Pantaloons trouser, Indias first formal trouser

brand.

1991 Launch of BARE, the Indian jeans brand.

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

1994 The Pantaloon Shoppe exclusive menswear store infranchisee format launched across the nation. The companystarts the distribution of branded garments through multi-

brand retail outlets across the nation.

1995 John Miller Formal shirt brand launched.

1997 Company enters modern retail with the launch of the first8000 square feet store, Pantaloons in Kolkata.


26/92


27/92

York and Emerging Retailer of the Year award at the WorldRetail Congress held in Barcelona.

Futurebazaar.com becomes Indias most popular shopping

portal.

2008 Future Capital Holdings becomes the second groupcompany to make a successful Initial Public Offering in theIndian capital markets.

Big Bazaar crosses the 100-store mark, marking one of thefastest ever expansion of a hypermarket format anywherein the world.

Total operational retail space crosses 10 million square feetmark.

Future Group acquires rural retail chain, Aadhar present in65 rural locations.

Awards and recognigation

2009


28/92

CNBC Awaaz Consumer Awards 2009

Most Preferred Multi Product Chain - Big Bazaar

Most Preferred Multi Brand Food & Beverage Chain - Big Bazaar

Images Fashion Forum 2009

Most Admired Fashion Group Of The Year - Future Group

Most Admired Private Label - Pantaloons, the lifestyle format

Critics Choice For Pioneering Effort In Retail ConceptCreation - Central

Coca-Cola Golden Spoon Awards 2009

Most Admired Food & Grocery Retailer Of The Year

Most Admired Food Court

Most Admired Food Professional

2008


29/92

Indian Retail Forum Awards 2008

Most Admired Retail Company of the year - Future Group

Retail Face of the Year - Kishore Biyani

Best Retailer Of The Year ( Hypermarket) - Big Bazaar

Future Group was awarded the Most Admired Retail Company of the year by theIndian Retail Forum at a glittering ceremony organised in Mumbai. Mr KishoreBiyani also won Retail Face of the Year.

India Retail Forum (IRF) is a platform for intellectual insights and information

exchange for the retail business in the Indian subcontinent. The forum presentsthe business of retail in the region to a global audience, with the express aimof facilitating understanding about and encouraging investment in this massivemarketplace.

Big Bazaar, the value format of Future Group bagged the Best Retailer Of TheYear ( Hypermarket).

The INDIASTAR Award 2008

Food Bazaar: Best Packaging Innovation

Food Bazaar bagged the INDIASTAR Award for Best Packaging Innovation inIndia, for its private label brand Fresh And Pure Chakki Atta.

INDIASTAR Award is a biennial event which aims to promote and encourageexcellence in packaging design, innovation and technology. The contest wasestablished in 1972 and is considered as the most popular and premier event for

Indias packaging fraternity. This year there were around 357 entries and theparticipants had to submit a sample of their designs for selection.

With this award, Pantaloon Retail (India) Limited becomes the first IndianRetailer to win the prestigious INDIASTAR Award.


30/92

Retail Asia Pacific 500 Top Awards 2008

Gold Winner - Top Retailer 2008 Asia Pacific

Retail Asia Publishing Pte, the institutor of these awards, aims to set a platform

that appraise, raises and recognizes the development and growth of retailingthroughout the Asia Pacific region.

Coca-Cola Golden Spoon Awards 2008

Most Admired Food & Grocery Retail Visionary of the Year: Kishore Biyani

Most Admired Food & Grocery Retailer of the Year Supermarkets: FoodBazaar

Most Admired Food & Grocery Retailer of the Year - Hypermarkets: BigBazaar

Most Admired Retailer of the Year - Dynamic Growth in Network Expansion

across Food, Beverages & Grocery: Future Group

Most Admired Food & Grocery Retailer of the Year - Consumer's Choice:Big Bazaar

The Coca-Cola Golden Spoon Awards 2008, were given away for the first time asa culmination of the Food Forum India 2008 a two day convention, which sawthe participation of leading brands, retailers & retail support organizations fromacross the globe. The awards were presented to honour enterprise, innovation andachievement in the food retailing business as a benchmark of excellence.

The Reid & Taylor Awards For Retail Excellence 2008


31/92

Retail Leadership Award: Kishore Biyani

Retail Best Employer of the Year: Future Group

Retailer of The Year: Home Products and Office Improvements: HomeTown

The Reid & Taylor Awards for Retail Excellenceare an important feature of theAsia Retail Congress, Asias single most important global platform to promoteworld-class retail practices. These awards are aimed at honouring the best, in theAsian Retail scenario. India played host to Asia Retail Congress 2008.

2007


32/92


33/92

Leading human resources consultancy, Hewitt Associates conducts an annualsurvey of the best employers in India, as part of its global initiative. It is

based on CEO interview, People Practices Inventory and Employee OpinionSurveys. Pantaloon Retail became the only retailer to feature among the

twenty-five best employers in India.PC World Indian Website Awards

Best Indian Website In The Shopping Category - Futurebazaar.com

PC World, a leading consumer technology magazine selected the best Indianwebsites in various categories based on use of technology for deliveringsolutions, information being presented in an intuitive and concise manner andoverall experience aided by design.

Readers Digest Trusted Brands Platinum Awards

Trusted Brands Platinum Award (Supermarket Category) Big Bazaar

The Readers Digest awards are based on surveys done among consumersby independent research agency, Nielsen Media Research. This is the secondconsecutive time Big Bazaar has won this award.

2006


34/92

Retail Asia Pacific Top 500 Awards

Asia Pacific Best of the Best Retailers Pantaloon Retail (India) Ltd Best Retailer in India Pantaloon Retail (India) Ltd

The Retail Asia publication in association with EuroMonitor and KPMG

honours the best retailers in 14 countries across the Asia Pacific region. Theawards were presented in Singapore in October, 2006.

Asiamoney Awards

Best Managed Company in India (Mid-cap) Pantaloon retail (India) Ltd.

The Asiamoney publication conducts a poll among fund manages andinvestors and does a quantitative analysis of financial performance to select

best managed companies in Asian countries.

Ernst & Young Entrepreneur of the Year Award

Ernst & Young Entrepreneur of the Year (Services) Kishore Biyani

Considered to be one of the most prestigious business awards in India, a jurycomprising leading names in Indian business selected the winners based oncourage, creativity, passion, endurance and vision.

CNBC Indian Business Leaders Awards

The First Generation Entrepreneur of the Year Kishore Biyani

Organized by CNBC-TV18, the twelve awardees in various categories aredecided by a high profile jury, along with research partners - The Universityof Chicago Graduate School of Business, Development Dimensions

International (DDI) and AC Neilson ORG MARG.

Lakshmipat Singhania IIM Lucknow National Leadership Awards

Young Business Leader Kishore Biyani


35/92

The award recognizes and honors individuals who have contributedconsistently to the betterment of our country through their pursuit of excellence.The awards were presented in New Delhi by the Prime Minister Dr. ManmohanSingh in December, 2006.

Images Retail Awards

Best Value Retail Store Big Bazaar Best Retail Destination Big Bazaar

Best Food & Grocery Store Food BazaarRetail Face of the Year Kishore Biyani

The Images Retail Awards are decided through a nationwide consumer &industry poll and nominations followed by performance assessment by teamof analysts and jury.

Readers Digest Awards

Platinum Trusted Brand Award - Big Bazaar

The Readers Digest awards are based on surveys done among consumers byindependent research agency, Nielsen Media Research.

CNBC Awaaz Consumer Awards

Most Preferred Large Food & Grocery Supermarket Big Bazaar

Conducted in association with AC Nielsen-ORG Marg across 21 major cities,nearly 10,000 consumers were asked to choose their most preferred brands.

Reid & Taylor Awards for Retail Excellence


36/92

Retail Entrepreneur of the Year Kishore Biyani

2005

Images Retail Awards 2005

PRIL- Most Admired Retailer of the Year

Food Bazaar- Retailer of the Year(Food and Grocery)

Big Bazaar-Retailer of the Year(Value Retailing)

Central-Retail Launch of the Year

Voted by Business Today magazine as one of the

Top 20 Companies in India to watch in 2005

Indias most investor-friendly companies in the top 75

Indias Biggest wealth creators in the top 100

DAKS London

PRIL- Brand Builder of the Year

2004

Images Retail Awards 2004

PRIL- Most Admired Retailer of the Year

Food Bazaar- Retailer of the Year(Food and Grocery)

Big Bazaar-Retailer of the Year(Value Retailing)

Central-Retail Launch of the Year

Reid & Taylor and DLF Awards


37/92

PRIL - Retailer of the year

2003

Indian Express Award PRIL Marketing Excellence and Excellence in Brand Building

Indusland Bank (India Brand Summit)

PRIL - Excellence in Brand Building

Companies of future group

Future Retail (India) Limited

Home Solutions Retail India Limited

Future Brands Limited

Future Media (India) Limited

Future Supply Chain Solutions Limited

Convergem Communication (India) Limited

Pantaloon Food Product (India) Limited

Future Knowledge Services Limited

Future Capital Holdings Limited

Future Generali India Insurance Company Limited


38/92

Future Generali India Life Insurance Company Limited

Future bazaar India Limited

Winner Sports Private Limited

Staples Future Office Products Private Limited

Talwalkars Pantaloon Fitness Private Limited

ConvergeM

Indus League Clothing

Galaxy Entertainment Corporation Ltd

Future Consumer Products Limited

Future Ventures India Limited

Foot Mart Retail .

Future Brands

The Future Group has built a strong portfolio of some of the fastest growingconsumer brands in India. This activity is led through Future Brands IndiaLimited, 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. Dreamline, presentin the home segment, offers a wide range of products in kitchenware, bed & bath

linen, and Home Dcor categories.

In the food and home care segment brands include Tasty Treat, PremiumHarvest, Fresh & Pure, Care Mateand Clean Mate.


39/92

In consumer durables and electronics space, the groups brands include KoryoandSensei.

Line of Business

The company is present across several lines of business which have various

formats (stores) lywood, The Doller store(JV).

Fashion Pantaloons, Central, All, Brand Factory, Blue Sky, Top 10,Fashion Station, Big Bazaar, Lee Cooper (JV).

General Merchandise Big Bazaar, Shoe Factory, Navras, ElectronicsBazaar, Furniture Bazaar, KBs Fair Price.

Electronics- e-Zone, Staples (JV).

Home improvement- Home Town

Furniture Collection I, Furniture Bazaar, Home Bazaar.

E-tailling (Online Shopping).


40/92

Books & Entertainment Bowling Co., F123.

Wellness Star & Sitara, Tulsi.

Telecom & IT Gen M, M-bazaar, M-Port, Converge M.

Consumer Durables Koryo, Sensei.

Service E-Care.

Malls TGIP, Central Gurgaon.

Big Bazaar Indias Real Retail Story

Big Bazaar, the flagship retail chain of the Future Group, is on the verge ofachieving a unique milestone in the History of World retail- by being the firsthypermarket format in the globe to rollout fastest 101 stores in a short span ofseven years.

Big bazaars journey began in October 2001, when the young first generationentrepreneur Kishore Biyani opened The countrys first hypermarket retail outlet

in kolkatta [Then Calcutta] .In the same month, Two more stores were added oneeach in Hyderabad and Mumbai, thus starting on a successful sojourn which beganthe chapter of organized retailing in India.

Speaking on this momentous occasion and remembering the days ofconceptualizing the hypermarket idea Mr. Kishore Biyani said, We initially


41/92

decided to name the format as Bazaar because we had designed the storekeeping the Indian mandi style in mind . since the size of the hypermarket was bigthan an average mandi, the thought came to name it as Big Bazaar . howeverwe had freezed on the punch line Is Se Sasta Aur Accha kahin Nahi muchbefore we met the creative agency to design the final logo of Big Bazaar.

Though, Big Bazaar was started purely as a fashion format including apparelcosmetics, accessory and merchandise, the First food bazaar format was addedas shop-In shop within Big bazaar in the year 2002. today, Big Bazaar, with itswide range of products and service offering, reflects the aspirations of millions ofIndians.

The journey of Big Bazaar can be divided into two phases one pre and the

other post January 26th, 2005 when the company rewrote the retail chapter inIndia, with the introduction of a never before sales campaign Sasbe Sasta DinIn just one day , almost the whole of India descended at various Big Bazaar storesIn the country to shop at their favorite shopping destination.

Further, what followed was the time and again rewriting of the IndianRetail experience wherein understanding of the Indian consumers reflected in the

products and services offered, creating innovative deals, expanding in the tier IIand tier III towns, tying up with branded merchandise to offer exclusive productsand services to its customers.

Big Bazaar is present today in 59 cities and occupying over 5 million sq.ft. retail space and driving over 110 million footfalls into its stores. The formatis expecting the number of footfall in the stores to increase by over 140 million

by this financial year . Over the years , Mr. Biyani for his vision and leadership,and Big Bazaar for its unique proposition to its customers, have received every

prestigious consumer awards both nationally and internationally.

Says Rajan Malhotra, President, Strategy & Convergence, Big Bazaar, what isimportant in our journey is not the number of stores, but the customers faith in us.Its the India and the Indians, which have helped us, reach this feat in such a shorttime span and today our country is creating a history in the word organized retail.


42/92

Rajan Malhotra, who is also the first employee of Big Bazaar, joining theorganization in early 2001 adds, Since beginning, we have kept Big Bazaar as asoft brand, which reflects the India and the Indianness. We believed in growingwith the society, participating and celebrating all regional and local communityfestivals, giving customers preferences above everything else.

Every Big Bazaar is a small family by its own and the head of the family Karta- is the store manager. Kishore Biyani, the CEO of the Future Group, has avast understanding of the consumers insight, has inculcated the habit of observing,understanding customers, in every employee of the group.

Future Group is confident of the Indian Retail Story. The group has not sloweddown its expansion plans depite the fiscal woes in the economy present today.Future Group plans to have 300 stores and is expecting revenues of Rs 13,000crore by year 2011.

About Big Bazaar

Type : Hypermarket type

Founded : 2001Industry : Retail

Product : Department store

MD & CEO: Mr. Kishore Biyani

Parent : Future Group

Website : www.bigbazaar.com


43/92

Big Bazaar is a chain of hypermarkets in India, with more than 100 stores inoperations. It is a subsidiary of Pantaloon Retail India Ltd, Future Group, offersa wide range of products including clothing, footwear, electronic appliances,groceries and kitchen utensils. You can also buy branded stuff from Reebok, Nikeand Puma here. It caters to every need of your family. Where Big Bazaar scoresover other stores is its value for money proposition for the Indian customers.

The word hypermarket is derived from the French word hypermarche, which is acombination of a supermarket and department store.

The stores occupy an area which ranges from anywhere between 80000 to 220000sq. ft. and offer a variety of food products like clothes, jewellery, hardware, sportsequipment, books, CDs, DVDs, TVs, electrical equipment and computers etc.

Hypermarkets are today synonymous with one stop shopping. The cheapestprices will normally be found in these stores. Across thre world, hypermarkets areusually part of a retail park, along with other shops, cafeterias and restaurants. Akey element of differentiation between the hypermarket and the other retail formatsis that they typically have destination locations. The hypermarkets are designed to

attract customers from a significantly large area with their low price offers, uniquerange and offers. It is the largest form of organized retailing today. It is an idealshopping experience with an amalgamation of product, service and entertainmentall under of a common roof.

The company has been able to leverage on its multi-formats-multi-brand stores,secure prime locations at the best possible prices and command a strong bargaining

power with suppliers, which provide it an edge over its competitors.

Customers come in Big Bazaar for purchasing, entertainment and pacing here and

there.

It gives many facility to the customers like; Helpline, Baggage Counter, Parking,Exchange etc. big Bazaar trying to provide customer with 3Vs

Value


44/92

Variety

Volume

Big Bazaar has different categories; such as

Food Bazaar

Apparels

General Merchandise:- At Big Bazaar, you will definitely get the bestproducts at the best prices- thats what it guarantees. With the everincreasing array of private labels, it has opened the doors into the worldof fashion and general merchandise including home gurnishings, utensils,crockery, cutlery, sports goods and much more at prices that surprise us.Here we talk about the department stores, because Big Bazaar based on thedepartments.

Department Stores:-

Carry broad variety and deep assortment organized into separate deparment for

displaying merchandise,

Major departments includes:-

Utensils

Plastics

Home dcor

Luggage

Toys

Footwear etc.


45/92

Chains are very diverse and appeal to different markets. They are unique interms of the shopping experience they offer, the services they provide and theatmosphere of the store. They are promotion- oriented. They increase competitionwith discount and specialty stores creating problems.

Store Organization:-


46/92

Chapter -4

Fashion Department at Big Bazaar

StoreManager

AssistantStore Manager

OperationalManager

DepartmentManager

AdditionalDepartment Manager

Team Leader

Team Member


47/92

Marketing Strategies of Big Bazaar:

At the time of the launch of Big Bazaar in Udaipur last year, there was no realprecedent in the Indian Market. A western model had to be adapted to suits theneeds of the Indian environment. Various local markets were studied to understandthe product mix and the prices offered.

Savings is to the key to the Indian middle class consumers. The store thatwould be launched had to offer value to the consumers. Keeping this in mind the

concept of Big Bazaar was created.

In India, when a customer needs something for home, a typical thought isto seek it from bazaar where a complete range of products is available to theconsumers. As the store offers a large mix of products at a discounted price, thename Big Bazaar was finalized. The idea was to re-create a complete bazaar, with alarge product offering and to offer a good depth and width in terms of range.

Price was the basic value proposition at Big Bazaar. The Big Bazaar outletssold a variety of products at prices which were 5 to 60% lower than the market

price. The line Is Se Sasta Aur Accha Kahin Nahi emphasized this. The keyquestion faced by the management was whether the low margins on the productswould allow the company to sustain growth. With the aim of answer in order toallow the company decides on the right locations.

The key learning which came out of this exercise was that for a large store likeBig Bazaar, a large catchments area was needed. The management decided to stickto the existing market places within the city as the western model of hypermarkets,


48/92

where the store was located in large area on the mid of the city would also reallywork in India. The cost of time spent on travels and the cost of petrol in Indiawould really become a plus point for the customers. Some of the key marketingstrategies and promotional activities that are successfully employed by Big Bazaarare:-

Discount Selling

Big Bazaar sells all its products at a much cheaper price as compared to the localmarkets. The range of discounts ranges from 5 to 60%. Although the store sellsthe products at a cheaper rates it does not compromises with the qualities of the

products.

Huge No. of BrandsBig Bazaar maintains a huge number of brands under its dispose which give thecustomers the liberty of buying the product of their favorite brand. This helps thecustomers as they dont go looking out for a product of a particular brand.

Large Product Line

Big Bazaar also stocks a large product line of a single brand or multiple brandswhich give the customers the choice to select the most appropriate product out ofmany available at the most economical prices.

Frequent Promotional Activities

Frequent promotional programs like Wednesday- Haftey Ka Sabse Sasta Din,Fashion Shows, Monthly Bachat, Price Challenge, etc. were conducted instore in which the customers were provided special discounts, offers in addition

to the normal discounts and offers of the store. The main purpose of this sort ofactivities is to generate in the dull days of the week or of the month.

Learning Process for Summer Training at Big Bazaar


49/92

The following learning process for summer training at Big Bazaar of Udaipurcity was given to me. According to this learning process, I had to undertake mysummer training in Big Bazaar. The learning process is given below in brief:-

MerchandisingThis includes

Inward,Display,Replenishing (FIFO),Offer Updating,Top Selling SKUs,Bottom Line SKUs,Liquidation Process,Defective Goods Handling (DAD- Damage & Defective),Margins,Buying,Outward,Stocktake.

Customer Service

It hasCSD (Customer Service Desk) Operations,Customer Movement,Customer Touch Point,After Sale Services,Home Delivery,Alteration and Customer Grievance Handling.

Visual MerchandisingIt has Signages,

Details of Materials,


50/92

VM Frames,Shelf Talkers,Focal Piont/ Hot Spots,Execution of Promotions,Communication of Offers,Directional Signages in the Store,Window Display.

Cash DepartmentIt works on Cash Till Operations,Billing Process,Handling Cash,Tallying Cash,Allocation of Till wise Cashiers,

Depositing of Cash in Bank,Shortage/ Excess Cash Treatment,All Modes of Payments,Checking of Currency Note,Foreign Exchange,Cash Float of Cashier,Grab Process,Currency Handling & System.

Information TechnologyREM Knowledge,SAP Knowledge,System Generated Report,Stock Adjustment,Scheme Updation,Hardware Knowledge,Day Closing Activity.

Human ResourcesPERK,Sanjeevani,Fun Jone,


51/92

Atithee,Employee of the Month,HR Policies,Prerna,Staff In / Out Management,Sturday Meeting,Payroll Process,Skip Meeting.

OperationsEntire SOP,Opening of Stores,H. K. Activities throughout the Day,Security Activities,

H. K. positioning,Security Positioning,Discipline & Attire Check of Security & H. K.,Parking Management,Trolley management,Scrap Disposal process,Waste Management,Daily Check Points,Fixed Asset Knowledge,

AMCs Checklist of Fire Safety Equipments,A/Cs, Electricals, Lifts, Invertors, Chakkis,DGs, LPC Process & Team Management.

Analysis StudyStock Cover,DSR Study, Age Analysis,Stock Turns, Sales Mix, Sales Trend,Margin Analysis, Per Sq. Ft. Return Analysis,Ticket Size, Conversion,

Return on Capital Employed/ Working Capital Analysis.

FASHION DEPARTMENT @ BIG BAZAAR, UDAIPUR


52/92

Introduction

Fashion department is a Line of Business (LOB) at Big Bazaar, Udaipur.Location of Fashion department is situated on 3 floor of the store. Fashiondepartment has large range of Product mix. It has collection of huge brands.Fashion department plays an important role in Big Bazaar, Udaipur as it attractsthe customers to visit the store. Everyday, it also contributes almost 25% sale ofthe entire store.

FASHION AT BIG BAZAAR

Fashion

Fashion is trend to change that whatever happen in some periodIt come In all three month with the new product and with the modification ofold product. It change simultaneously with the season.

Fashion @ bazaar

At Big Bazaar fashion include all apparels Fashion is a very important LOB for big bazaar Big Bazaar get highest margin by fashion department The average contribution of fashion in Udaipur Big Bazaar is 23% The target contribution of fashion sub department in fashion are Mens wear- 50%, Ladies wear-30% Kids wear-20%

We PROMISE-that from today we will start selling FASHION

& not just apparel & take BIG BAZAAR to the next level by sellingmore & more fashion.Kar ke dikhana hai

Process of FashionWarehouse (Receiving)


53/92

Sub department

Tagging

On floor

Staking (MPM)

Sub department of Fashion

Mens wear

Ladies wear

Kids wear

Home Linen

Mens Wear

Section of mens wear

Men's Casual

Men's Fabric

Men's Formal

Men's Occasion Wear

Suit & Blazer

Men's Accessories

Mens night wear


54/92

Mens wear

Brands of productsAFL

Knighthood

John Miller

DJ&C

Famous Basics

Signature

Shatranj

VIP

Ladies Wear Section of ladies wear

Ladies EthanicLadies WesternSaree & Dress MaterialLadies AccessoriesLadies night wear


55/92

Brands of MerchandisesSharistyDJ&C

SHAYLA

Kids Wear Section in kids wear

Children WearKids Accessories

Brands of MerchandisesPINK & BluePower Ranger


56/92

ABP V/S Achievement Week 1 To 5

Sub Dept ABP Achievement Ach%

Men's Casual 11.45 9.03 79%

Men's Fabric 0.12 0.06 50%

Men's Formal 2.66 4.10 154%

Men's Occasion Wear 0.6 0.82 137%

Suit & Blazer0.14 0.10 71%

Men's Accessories 2.11 2.12 100%

Ladies Ethanic 4.09 3.11 76%

Ladies Western 5.41 4.94 91%

Saree & Dress Material 2.24 1.47 66%

Ladies Accessories 0.51 0.49 96%

Children Wear 9.23 6.83 74%

Kids Accessories 0.51 0.53 104%

BB-Fashion 39.07 33.60 86%


57/92

Tagging pattern

There is three type of tags

Soft Tag

Hard Tag

String Tag

Types of Tag

String Tags

These tags are the hard plastic tags or could be paper sandwich

tags with a non-deactivable soft tag placed inside.

These tags are reusable like the hard tags

Use only the non-deactivating soft tags

Used on all items below Rs.400 in value and have been

developed as an alternative to hard tags.

The tags are attached to the item using a hard nylon fastener.

To check if the tags are working, simply place them on

the deactivating pad. If the tag does not beep stop use of the tag.


58/92

Hard Tags

Has got two specific parts- The pin and the tag.

Used for apparels above Rs.400 and in certain categories on all the

items.

Tags will ring only if the pin is inserted properly Never use bent,

damaged or rusty pins while tagging.

The pins can be removed only using a detacher, thus care should

be


59/92

Soft Tags

Soft tags are the flat paper tags.

Must always be used on flat clean surfaces.

A tag must be bent, do not bend any of the pink area of the circuit. bend 1

cm on one side only & no more than 90 degrees.

They should not be used on garments, as they will leave a stain.

These tags should not be put on metal or foil products unless there is at least

1 cm space between the security tag and the product, or else they wont work.

These tags get deactivated on the deactivation pad.


60/92

Importance of mpm In fashion

MPM (merchandise presentation manual) mpm is related to the visual merchandise.

What is visual merchandising ? merchandise is briefly defied as presentation of a store asmerchandise in the way that will attract the attention of potential to thecustomer and motivate them to make purchase.

Advantage of mpm

Arranged merchandise properly

Easy to find

Easy to pick

Easy to buy

to put best forward the merchandise highlight I terms of

colour ,quality

Who can we make effective mpm Product should be tagged from

manufacturing house.

Focus light should be o the flor.

Availability of Proper mannequins For all the product.

Hygienic product should be packed.

Stock should be properly displayed.


61/92

Birthday Celebrations at Big Bazaar

16th-25thJuly

Big Bazaar Store located in the heart of Udaipur city had completed its thirdyear since opening in the city in the month of July 2010. Keeping in mind its thirdanniversary, the store was celebrating it with the customers in the form of BirthdayCelebrations. The store celebrated it for ten days from 16thJuly to 25thJuly 2010.The slogan for the birthday celebrations was Khushiyon Ke Din Khushiyon Ke

Upahaar.

Big Bazaar was celebrating its 3th Birthday from 16thto 25thJuly. The themefor this celebration was come celebrate with us, get fabulous gifts, bumper prizes,and enjoy loads of exciting activities in store.

Continuing its efforts to provide the best shopping deals and savings toIndian consumer, Big Bazaar was all set to celebrate this Birthday Anniversarywith its Customers. It was truly memorable eith rock bottom prices, best possiblediscounts, mega offers and lucky draw also. Apart from the flagship Big Bazaar

and its Food Bazaar, other departments like FurnitureBazaar, Electronic Bazaar,Depot, General Merchandise, and Fashion Department were also the part of thiscelebration.

From daily household needs of food and grocery to apparels, footwear,toys, luggage, kitchenware, home decor, furniture and electronics; BirthdayCelebrations had an exciting array of attractive offers, deals and discounts,ensuring something for everyone in the family, to shop for, and a maximum valuefor money for all customers. With this new shopping concept, Big Bazaar touches

the heart of its customers and also maintains the company-customer relationship.


62/92

During the Birthday Celebrations, the following were the main offers in the FoodBazaar:

Space Mix and Space Management

Space Mix

For the retailer space is money. The store has to be planned in such a waythat it optimizes the selling area and minimizes the non-selling parts. The sellingarea is used to present the merchandise and the non-selling part is accounted for bycirculation space, staircases, lifts, facilities, the back area, etc. The area mix in atypical department store is: selling area about 60%, circulation area 15%and back

area 25%.

Area Mix

2

Circulation 15%Back Area 25%Selling 60%

60% 15%

25%


63/92

Space Management

The placement of merchandise within the store in the most profitable manneris called space management .it is one of the most important activities, because thelocation of merchandise at different location have different values. Some partsof store are more valuable because customers visit those more frequently, whichresults in higher sales. It is easier to make sales along.

Space closest to the entrances and exits is the most is the valuable, and valuesdecrease further into the store.

Retail Marketing Mix

The basic function of retail is to provide the right goods to the consumer, at theright place and time. Through the retail marketing mix we can compete withour competitors and achieve the sales target. The marketing tools that a retailorganization uses to pursue its marketing objectives are termed as the retailmarketing mix.

The most channels are:

Product

Price

Place

Promotion

Presentation

Customer Service

People


64/92

The channels are illustrated in figure given below:

Channels of Retail Marketing

Retail

Marketing

Mix

PeopleProduct

PlacePresentation

Promotion

CustomerService

Price


65/92

Product

One of the main elements of the retail marketing mix is the products and /orservices that store offers to the customer.

Products are also termed as merchandise. The different products that the storeoffers are together termed as the merchandise mix.

For example, if we consider the Fashion at department store, the merchandise linecomprises:

Mans wear

Mans accessory

Party wear

Ladies wear

Kids wear

Home fashion

Price

Pricing is an integral part of the retail marketing mix. The price policy that theorganization decides to follow depends on the customer profile of the targetaudience for its range of products.

Big Bazaar gives the good price to the customer .price makes the good relationshipto the customers.

Big Bazaar has a punch line Isse Sasta Aur Accha Kahin Nahi


66/92

It gives the high discount on the price like; foods products (20%, 25%, 35%), non

food products (10%, 20%, 35%), buy one get one free Top Price, buy 3 get one

free Park Avenue soap, etc.

Big Bazaar gives many offers to the customer like; the great Indian festival Big

Days, Sabse Saste 3 Din, etc. In these types of days it gives the huge discount on

the products.

Place

The location of the retail store was considered to be the most important element of

the retail marketing mix.

Big Bazaar is situated at premier location in Udaipur, where Levis, E-Zone, Cafe

Coffee Day, and Reebok like stores are situated. It is the best place for Big Bazaar.

Promotion

The advertising budget, sales promotion, publicity and the public relations play

a very important role in the competitive world of retailing .these help the store

to achieve the short term goals. Promotion may be price led or occasional led, in

which case special merchandise offered by the stores only for the occasion. Most

retail organization run promotions during festival seasons.

Big Bazaar also provides the promotional offers on festival like Diwali, New Year,

ID, Valentine day, etc. Discounts depend on the products.


67/92

Presentation

The manner in which the merchandise is presented at the store level is very

important. This aspect not only deals with the store layout and the ambience

created, but also with visual merchandising.

Visual merchandising is the orderly, systematic way of putting stock on display in

the retail store.

Big Bazaar presents the store as per the season and occasions like; on Diwali

store is decorated with candles and flowers, on Christmas store is decorated with

stars, ribbons, balloons, Christmas tree and on Independence Day and Republic

Day store is decorated with green, orange, and white balloons, etc. that attract the

customers.

Customer Service

The support services that a retailer offers have become very important today.The credit policies and the product returns policies need to be clear marketing,

buzzwords in the industry today and all these are aimed at enhancing customer

service.

In the Big Bazaar, the product range is good and availability of the products is very

easy. Bag Bazaar provides the low price comparison to the other retailers.

Big Bazaar provides the good services to their customer like; baggage counter,

parking, product, help line, etc.


68/92

People

Retailers operate in a unique environment. The retail industry is characterized by

a large number of inexperienced workers, who need to put in long hours of work.

Most of the time, these employees are in direct contact with the customer and may

face irate or unreasonable customer.

The people who work at the front-end of a retail organization are very important,

as they are the manners and products knowledge plays a very important role in

building long term relations with the customer.

Retail Communication Mix

Communication is an integral part of the retailers marketing strategy. Primarily,

communication is used to inform the customers about the retailer, the merchandise

and the services. It also serves as a tool for the building the store image.

The retailer can used various platform / channel for communication. The mosttools are:

Advertising

Sales Promotion

Public Relation

Personal Selling

Point of Purchase (POP) Displays

The tools are illustrated in figure given below:


69/92

Advertising

RetailCommunicatio

n Mix

PublicRelation

s

Point ofPurchase

(POP)Displays

SalesPromotio

n

PersonalSelling


70/92

Advertising

Advertising can be defined as any paid form of non- personal presention and

communication through mass media. It is popularly believed that one of the main

aims of the advertising is to sell to wide mix of consumers and also to induce

repeat purchase.

However, a retailer may use advertising to achieve any of the following objectives:

Creating awareness about a product or store

Communication information in order to create a specific image in the customers

mind in terms of the store merchandise, price, quality, benefits, etc.

Create a desire to want a product.

To communicate the stores policy on various issues.

Advertising can also help identify a store carrying nationally advertised brands.

It can also help in repositioning the store in the mind of the customer.

To increase sale of specific categories or to generate short term cash flows by way

of sale, bargain days, midnight madness, etc.

Advertising can also help reinforce the retailers corporate identity.

For advertising, the retailer may use one or a combination of the following

mediums:

Press advertisements

Posters and leaflets, brochures, booklets

Point of purchase displays


71/92

Advertising can also be done through mediums like radio, television, outdoor

hoardings and the internet.

Sales Promotion

Sales promotion helps a retailer by way of attracting customer traffic and enables

quick result to be achieved. Depending on the type of promotion carried out, it can

help increase impulse buying, generate excitement and can motivate other channel

members.

Common retail promotions are illustrated:

Coupon:

A coupon allows the buyer a reduction in price on specific merchandise or

products, when the coupon is redeemed .coupons may be delivered through

newspaper, magazines, post or in products.

Contests:

A contest needs consumers to compete and the prizes are based on skill. In

the case of sweepstakes, the customer only needs to enter in his name and

the winner is determined by chance. Many retailers allow customers to enter

into competitions on the basis of the amount of purchases they have made.

Demonstrations:


72/92

Demonstrations are used to show the customer, the performance capabilities

of the products. Videos may also be used to aid the demonstration and show

the use of the products.

Product /Brand Promotions and Schemes:

This is a straightforward scheme in which the consumer either gets a

monetary discount on the purchase of a particular product/s or gets two

products of the same type for the price of one the by one get one free

scheme is example of same.

Big Bazaar also does this type of sales promotion like; in plastics department

important container buy one get one free.

Samples:

Sampling provides the consumers with an opportunity to use the product at

no cost. Various techniques may be adopted for sampling and this may take

the form of in-store sampling-where the in-store staff hands out the samples.

Shopping Card:

Many retailers make the own shopping card. It is very easy to promote the

sales.

Future group introduces the new future prepaid card .it is easily used in all

future groups retail outlets.

Public Relations and Publicity


73/92

Public relations (PR) are a marketing communication function, which

aims at fostering goodwill. An important component of public relations

is publicity. By way of public relations, the retail organization strives to

create and sustain a favorable image with consumer, shareholders, suppliers

and the public at large. The job of public relation is usually handled by an

outside Public Relations firm and it may be under taken to promote goodwill

for the organization, to promote a particular product or to counteract

negative publicity.

Publicity is a non paid form of media coverage. In todays world, it is rarely

free and a fair amount of skill has to be exercised by the organization to

ensure that right media coverage is achieved.

Examples of events in retail which merit publicity are:

Store openings

Store renovations

Celebrity visits and affiliations

Designer associations

New product ranges and launches

Awards received by the retailer

Fashion shows and sponsored events


74/92

Personal Selling

Personal selling is a paid form of personal advertising where salespeople

assist customer in satisfying their needs though a person-to-person exchange

of information .it is a process of learning the needs and the wants of the buys

and striving to satisfy them with the required product or service. Personal

selling may occur within the environs of the retail store-where personal

selling requires the sales person to satisfy the needs of the consumer. It may

also occur outside the retail store, where orders taken form customer by

way of the telephone, internet or mail and them serviced. Personal selling is

precise. It is aimed at a specific individual/s. Developing a strong sales force

is hence an expensive proposition, as the sales person has to be trained on

various aspects of communication, like understanding the body language of

the customer, etc. He also needs to be knowledgeable about the features of

products and services being offered by the retailer.

Point of Purchase (POP) DisplaysThe dictionary of retailing defines Point of Purchase communication as

the promotional signs and interior displays, often located at the point of

sale or alongside displays merchandise. Point of Purchase (POP) Displays

have become integral to retail today. They help reinforce in-store product

branding, enhance retail sales floor communication and provide information

to the customer. The basic function of pop in a retail store, include posters,

danglers, flyers glow signs, translites, banners, etc.


75/92

The role of POP changes significantly with the type of product being sold

and the customers involvement in the purchase. Different types of POP

material would relevant in different types of stores and environment.

In the case of a supermarket, POP may be used to indicate prices, the

location of products and any special or bargain offer in the store. POP in

a store selling consumer durables and electronics may lay stress on the

features of the product, the warranties and guarantees and the after sales

services provided by the outlet.


76/92

Chapter-5

Conclusion & Suggestions

As a matter of fact, this on the job training was fruitful for me as I learnt manymanagement skills practically during training period at Big Bazaar. Right fromthe beginning of my training I observed so many things which are the part of dailyroutine of Big Bazaar, Udaipur. The store works smoothly as it is the chain of awell- known reputed organization. The retail staff personnel are of helping nature

as they supported and co-operated me during training period and tried their levelbest to give me proper training of the retail store.

I also learnt how to apply all the management skills in the real situation in anyorganization. During my on the job training, however, I observed the followingthings at Big Bazaar, Udaipur:-

Everyday many people came only for visit at Big Bazaar.

The footfalls of customers are good at Big Bazaar, Udaipur.

Mostly middle class family prefers Big Bazaar.

Customers come at Big Bazaar because it gives the huge discounts andoffers.

During big days (5 Days Mahabachat), it has huge crowd of customers andthe sale is very high.

The offers/discounts changed any time if there is technical problem orshortage of stock.

Team members sometimes do not pay proper attention to the customers onthe floor.


77/92

Sinages were not maintained on the floor by team members.

There were more than 10 cash counters at the store but they didnt openevery day. All cash counters are open only on festival season or on the megaoffers of Big Bazaar.

The order processing take huge time and sometimes gets delayed due to lackof stock at the vendor side.

The collection of vegetables and fruits are done from local markets and localfarmers.

There was at least one meeting of Store Manager with employees in a week.

Communication between the employer and employee is good.

Employees have the good knowledge about the products in their ownsections.


78/92

Conclusion

From all the available results this can be concluded that people have hugeexpectations from the company. They not only want all the things they are getting

from other companies but in addition they also want some other benefits which inturn can give them security of being a part of Big Bazaar as a customer in long run.

Big Bazaar has many brands in Food Bazaar such as Nestle, HUL, Cadbury,Amul, Tata, Parle, Bikaji, Marico, Adanis Suffola, etc. but after that they donot have the large product range of these brands that is why they are losing theircustomers. Since many customers have different brand preferences.

In Food Bazaar they have big brands as mentioned above but many times they

do not achieve the target due to the arrangements of merchandise is not good andemployees interaction with customers are very less.

However, Food Bazaar contributes almost 50% of daily sale of the store. Butsometimes in normal days, Food Bazaar does not achieve the target. In fact, duringfestival offers and Big Days, Food Bazaar has the major contribution in attractingcustomers and increasing the store sale.

So we can say that customers want huge offers and discounts. If Big Bazaargives huge discount and offers, it will definitely increase its sales.

All the customers know about the Big Bazaar that is:

Isse Sasta Aur Achha Kahin Nahi!

Although Big Bazaar provides many services yet there are many areas wherecustomers demand for more than what they should get and which is beyondcompany policy like, free servicing, additional free gifts and extra term benefits.

Company also facing some problems from its previous customers side that hadsome bad experience about the company product and service. It is due to theless attention of team members to the customers and not giving them completeinformation about the products. Big Bazaar also needs good service at CSDfor their customers. In brief, the organization is working on all these aspectscontinuously by filling feedback forms from customers and conducting marketresearch on products range and customers preferences.


79/92

Suggestions

The following suggestions could be made for the better performance of BigBazaar, Udaipur:-

Review of everyday discounts/offers at signage whether they are updatedproperly or not.

Signages should be displayed properly on the floor and near the entrancegate.

More security gadgets and checks should be there to control thefts andemployees working.

Availability of products in each size should be at the floor.

At least 6 to 8 cash counter should remain open everyday to avoid crowd atcash counter.

Increase the number of supporting staff (team members) on the floor of Food

Bazaar to pay proper attention to the customers.

Increase the brand and products range in the Food Bazaar to increase thesale.

Interaction should be there between employees and customers.

Sitting arrangement and drinking water facilities on the floor for customersshould be maintained regularly.

The arrangement of merchandise should be proper on the floor.


80/92

Bibliography

Pride, William M., and Ferrell O. C. Marketing: Concepts and Strategies.12thed. Houghton Mifflin Co., USA, 2005

Ramaswamy, V. S., and Namakumari S. Marketing Management: Planning,implementation and Control. 3rded. Macmillan India Ltd., 2002

Kotler, Philip, and Keller Kevin Lane. Marketing Management. PearsonEducation, Inc., 2006

Kotler, Philip, and Armstrong Gary. Principles of Marketing. 11th ed.Pearson Prentice Hall, 2006

Pradhan, Swapna. Retailing Management. Tata McGraw Hill, 2004

Web Sites:

www.pantaloon.com

www.wikimedia.com

www.retailindia.com

www.google.co.in


81/92

Annexure

The Daily Log Report

Daily Log 21 June 2010

Description of Activities

This was my first day of summer internship at BigBazaar, Udaipur. First of all, I met Mr. DharmendraSir (HR Manager) to get acquainted with the storeorganization. Then, he told me about the storeorganization and other rules and regulations of theorganization that I had to follow during my on the jobtraining in Big Bazaar. Then, with him, I visited thewhole store and learnt about the systems and proceduresfollowed in the Big Bazaar, Udaipur.

Signature of Supervisor

Name of SupervisorMr. Sanjeev Singh(Assistant Store Manager)

Date 26 June 2010

Remarks (for Comments byCompany Supervisor)


82/92

Daily Log 22 June 2010


Today I met HR Manager in the morning and he tookmeeting with all the Management Trainees doinginternship in Big Bazaar, Udaipur. He told about theinterns procedures that were planned for us. He gaveme the learning process of the summer training. He

briefed about the learning process and told us to visitthe store and to see the working procedure of Big

Bazaar, Udaipur.


Name of SupervisorMr. Sanjeev Singh

(Assistant Store Manager)

Date 30 June 2010


Daily Log 23 June to 5 July 2010


83/92


From 23 June to 05 July, I passed through the learningprocess in detail. In this, I learnt about the organizationand various departments (Line of Business). Alldepartment managers told about the processes followed

in each line of business. The following learning plansfor operations was told me:- 1 Merchandising

2 Customer Service

3 Visual Merchandising

4 Cash Department

5 Information Technology

6 Human resources

7 Operations

8 Analysis Study



Date 9 July 2010


Daily Log 06 July to 15 July 2010


84/92


From 06 July, I was asked to have on the job trainingin the Fashion (Department) which is a kind ofline of business of Big Bazaar. I underwent my

training in Fashion department till 15 July and learntmerchandising used in Fashion department.

The learning experience was wonderful and excellentas it was real on the job training in Fashion department.I worked there as a team member and learnt all coreconcepts from Department Manager of Fashiondepartment. I learnt how to do facing and how todisplay products properly on the floor. I also learntabout the offers that are used in Fashion department . In

brief, I went through all the activities done in Fashiondepartment of Big Bazaar.



Date 20 July 2010




85/92


From 16 to 25 July, I worked on Birthday Celebrationsof Big Bazaar, Udaipur. It was important occasion asthis was the first birthday celebration of Big Bazaar,

Udaipur. I learnt many activities done during thebirthday celebration.

There was more learning for a marketing student. Iwas assigned the work of visual merchandising as wellas customer service. Both the tasks were challenging

but the final result was fruitful for me. I was alsoasked to focus on sales of Fashion department during

birthday celebration. I also helped in charity activitydone by the Big Bazaar.



Date 29 July 2010


Daily Log 27 July 2010


86/92


On 27 July I learnt about stock take of the whole store.The whole day there was training about the store stocktake that is done quarterly in Big Bazaar.

In this, we were told that every product should bekept in proper arrangement as same product of sameweight or same bar code should be scanned at a time.If It is not so then there would be mistake in stocktake. For that, I helped in applying correct bar code onthe product as well locating there place to avoid errorin stock. I also helped in sticking stickers on everyself to write the stock code on that. It was wonderful

experience as I learnt about the inventory management.



Date 29 July 2010




87/92


After training of stock take, I was assigned to workon stock take of whole store from 28 July to 30 July.I helped the organization in stock take of Fashiondepartment. The whole day I helped in setting uplocation and sticking bar code.



Date 01 August 2010


Daily Log 31 July to 03 August 2010


88/92


From 31 July to 03 August, I had learnt about variousproducts of Fashion department. I also learnt howto make purchase order for the products in Fashiondepartment . Without purchase order (P. O.), no

product is ordered or dispatched from the vendor. Iwas told about the off

indian organised retail industry

Documents