Description
BMS - 2011
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Retail industry
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1.1 INTRODUCTION
Retailing consists of the sale of goods or merchandise from a fixed location, such as a
department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption
by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may
be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities
from manufacturers or importers, either directly or through a wholesaler, and then sells smaller
quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at
the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary
part of their overall distribution strategy. The term "retailer" is also applied where a service
provider services the needs of a large number of individuals, such as a public utility, like electric
power.
Shops may be on residential streets, shopping streets with few or no houses or in a shopping
mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or
full roof to protect customers from precipitation. Online retailing, a type of electronic commerce
used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop
retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to obtain
necessities such as food and clothing; sometimes it is done as a recreational activity.
Recreational shopping often involves window shopping (just looking, not buying) and browsing
and does not always result in a purchase.
Definition
Retail is the sale of goods to end users, not for resale, but for use and consumption by the
purchaser. The retail transaction is at the end of the supply chain. Manufacturers sell large
quantities of products to retailers, and retailers sell small quantities of those products to
consumers.
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1.2 RETAIL INDUSTRY IN INDIA
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. Thought the market has
been dominated by unorganized players, the entry of domestic and international organized
players is set to change the scenario.
Organized retail segment has been growing at a blistering pace, exceeding all previous estimates.
According to a study by Deloitte Haskins and Sells, organized retail has increased its share from
8 per cent of total retail sales in 2007 to 10 per cent in 2008. The fastest growing segments have
been the wholesale cash and carry stores (150 per cent) followed by supermarkets (100 per cent)
and hypermarkets (75-80 per cent). Further, it estimates the organized segment to account for 25
per cent of the total sales by 2011.
India retail industry is the largest industry in India, with an employment of around 8% and
contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25%
yearly being driven by strong income growth, changing lifestyles, and favorable demographic
patterns.
It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.
India retail industry is one of the fastest growing industries with revenue expected in 2008 to
amount US$ 350 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is
expected in the industry of retail in India by growth in consumerism in urban areas, rising
incomes, and a steep rise in rural consumption. It has further been predicted that the retailing
industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5
billion.
Shopping in India has witnessed a revolution with the change in the consumer buying behavior
and the whole format of shopping also altering. Industry of retail in India which has become
modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and
sprawling complexes which offer food, shopping, and entertainment all under the same roof.
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India retail industry is expanding itself most aggressively; as a result a great demand for real
estate is being created. Indian retailers preferred means of expansion is to expand to other
regions and to increase the number of their outlets in a city. It is expected that by 2010, India
may have 600 new shopping centers.
India retail industry is progressing well and for this to continue retailers as well as the Indian
government will have to make a combined effort.
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PROJECT DESIGN
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2.1 ABOUT BIG BAZAAR
Type : Hypermarket.
Founded in the Year : 2001.
Headquarters : Jogeshwari, Mumbai.
Industry : Retail.
Products : Department, Grocery store.
Promoter : Kishore Biyani.
Parent Company : Pantaloon Retail India Ltd.
Punch line : “Is se sasta aur accha
kahin nahi”
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2.2 OBJECTIVE OF THE STUDY
? To study the Retail Industry of India.
? To Study the Marketing strategies adopted by Big Bazaar.
? To study the functioning of the Marketing Department of Big Bazaar.
? To study the promotional strategies used by Big Bazaar to promote sales
volume.
? To Analyze the Future Strategies and Expectations of Big Bazaar.
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2.3 LIMITATIONS OF THE STUDY.
1. Store layout: The store layout and the assortment of goods is not the best at Big Bazaar, as
the quantity of goods sold is more the arrangement and assortment of goods in the store is the
greatest. Hence at times customers find it hard to find what they require, this leads to
dissatisfaction of customers.
2. Lower quality of goods: As Big bazaar aims more toward the middle income group, the
quality of goods is not of the highest quality, and this is sometimes a disadvantage as some
would prefer better quality to the price, making customers to search for different places.
3. Does not appeal to the elite: As mentioned above, the main customers are middle
income and a few high income groups, The elite do not like to shop at Big Bazaar as the quality
of goods is lower and they would prefer a higher price and get a better brand, this decreases sales
from the elite class.
4. Not acclaimed for very good service: Big Bazaar is not known for high class service.
The staff recruited is not very well trained and the billing queues take a long time to move, this
irritates customers which makes them visit the store more seldom.
5. Lower quality of goods: As the sore is trying to concentrate on the middle income group
the type of products used is not of the most superior quality and most of the times nor branded,
this may dissatisfy certain customers.
6. Consumer satisfaction: Long queues and lower quality leads to dissatisfaction of
customers. Due to factors mentioned above Big Bazaar shoppers are not always satisfied, this is
not a positive for the store.
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INTRODUCTION
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3.1 PROFILE OF BIG BAZZAR
Indian retail sector is witnessing one of the most hectic marketing activities of all times. The
companies are fighting for mind share and heart share which can finally be converted to market
share. There is always a „first mover advantage? in an upcoming sector. In India, that advantage
goes to “Big Bazaar.” It has brought about many changes in the buying habits of people. It has
created formats which provide all items under one roof at low rates, or so it claims. In this
project, we will study its Functional departments in detail. Big Bazaar?s main competitors are
other business houses which are planning to enter the market as well as long established „Kirana?
stores which feel threatened by huge retail chains.
Big Bazaar is not just another hypermarket. It caters to every need of a family. Where Big
Bazaar scores over other stores is its value for money proposition for the Indian customers. At
Big Bazaar, one can get the best products at the best prices – that is what they guarantee. With
the ever increasing array of private labels, it has opened the doors into the world of fashion and
general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and
much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to
add much more to complete the shopping experience. Food is the main shopped for category in
this store.
Parent Company:-
Pantaloon Retail (India) Limited, is India?s leading retailer that operates multiple retail formats
in both the value and lifestyle segment of the Indian consumer market.
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3.2 MAN BEHIND BIG BAZAAR
• Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group.
• He was born in August 1961.
• Kishore Biyani founded Pantaloons in 1997.
• onsiders „Indianness? as the core value driving the group.
• Kishore Biyani has won following awards and honors:
• 2006 Ernst & Young Entrepreneur of the Year award.
• 2006 Lakshmipat Singhania - IIM Lucknow Young Business Leader Award.
• 2006 CNBC First Generation Entrepreneur of the Year award.
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3.3 History of – BIG BAZAAR
Big Bazaar is a chain of department stores in India currently with 120 outlets. It is owned by
Pantaloon Retail India Ltd, Future Group. It works on the same economy model as Wal-Mart and
has been successful in many Indian cities and small towns. The idea was pioneered by
Entrepreneur Mr. Kishore Biyani, the CEO of Future Group. Currently Big Bazaar stores are
located only in India. It is the fastest growing chain of department stores and aims at having 350
stores by 2010. Big Bazaar is the destination where you get products available at price lower
than the MRP, setting a new level of standard in price, convenience and quality. Its values and
missions are to be the best in Value Retailing by providing the cheapest prices and 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 lowest in the
city. Usually the items are clubbed together for offers as on the lines of Wal-mart and Carrefour
and it also offers weekend discounts. It currently operates out of more than 100 stores and top 25
stores register a cumulative footfall of 30 lakh a month on an average.
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3.4 COMPANY VISION AND MISSION
VISION
? “To Deliver Everything, Everywhere, Every time, to Every Indian customer in the
most profitable manner.”
? One of the core values at Future Group is, „India ness? and its corporate credo is –
“Rewrite rules, Retain values.”
MISSION
? We share the vision and belief that our customers and stakeholders shall be served
only by creating and executing future Scenarios in the consumption space leading to
economic development.
? We will be the trendsetters in evolving delivery formats, creating retail realty,
making consumption affordable for all customer segments.
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3.5 AWARDS AND RECOGNITION
? Most Admired Retailer of the year: Hypermarket – Big Bazaar – 2009.
? Indian Retail Forum Awards 2008.
? The INDIASTAR Award 2008.
? Retail Asia Pacific 500 Top Awards 2008.
? Coca-Cola Golden Spoon Awards 2008.
? The Reid & Taylor Awards For Retail Excellence 2008.
? Platinum Trusted Brand Award Images Retail Award 2005, 06.
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CORE VALUES OF BIG BAZAAR.
INDIANESS: - To be patriot.
LEADERSHIP: - To be a leader, both in thought and business.
RESPECT & HUMILITY: - To respect every individual and to be humble in our
conduct.
INTROSPECTION: - Leading to purposeful thinking.
OPENNESS: - To be open and receptive to new ideas, knowledge and
information.
VALUING AND NURTURING
RELATIONSHIP: -
To built long term relationships.
SIMPLICITY & POSITIVITY: - Simplicity and Positivity in our thought, business and
work.
ADAPTABILITY: - To be flexible and adaptable, to meet new challenges.
FLOW: To respect and understand the universal laws nature.
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MARKETING IN
BIG BAZAAR.
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4.1 MARKETING DEPARTMENT.
? Designs creative and attractive advertisements through which the company?s products
can be promoted to the customers.
? Decides the different marketing channels to be used to increase the sales.
? Creates a very pleasant and feel good environment in the store to attract more customers.
? Also responsible for the arrangement of product in each department to help easy
availability of products to the customers.
Marketing concept is a customer orientation backed by integrated marketing aimed at generating
customer satisfaction as the key to satisfying Organizational goals. For a firm in order to
implement the marketing concept it has to focus its attention on the consumer, ascertain his/her
needs, discuss and wants before every Brand appeals to individual customers in different ways.
Good customer service is the life blood of any business. Good customer service is all about
attending to existing and potential customer?s concept relationship marketing. Traditionally,
marketers have located their target market segments, presented their offer, and made the sales.
It?s always been a single step process. Relationship marketing looks at customers and clients
over a longer term. It takes into account the lifetime value of a customer. Many experts think it
costs anywhere from six to ten times as much, to find a new customer, than to sell to an existing
one. With those financial realities in mind, the approach makes some sense, and some real
dollars. Relationship marketing is based on the idea that people prefer to do business with people
who they know and like. It?s said that people need to hear an offer at least seven times before
they buy. That concept certainly works against the single step marketing method. The Marketing
department is responsible for marketing of Big bazaars products through different media like TV,
Radio, Newspaper, Banners, placards etc. The marketing department has to decide and identify
the most effective medium to attract the customers to Big Bazaar thereby increasing the sales.
The department has to design creative and attractive advertisements through which the
company?s products can be promoted to the customers. The company has to visit different
companies and has to enter in tie-ups for all its advertisement campaign.
The Marketing department also consists of another separate department which is known as
„Visual Merchandising?. Visual merchandising is an art by which a retailer makes the store talk
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to the customers. The colors, signage, lights, look and feel, everything is taken into account. It is
very important to figure out what is the story, the picture, the idea that is being sold to the
customers.
Another concept that was incorporated in Big Bazaar from the beginning was that of „Category
management? as opposed to the brand merchandising practice that is followed by many retailers.
Category management is based on the belief that a customer walks into a store looking for party
shirt or a formal trouser, rather than a particular brand. Therefore, the store is designed according
to the categories like men?s formal wear, women?s western wear or a casual wear, etc.
Within the organization too, teams were divided according to the categories that they managed,
rather than the brands. Big Bazaar wanted to have a complete bouquet of products in each
category at different price-points, design, fabric, size and color. The objective was to create
„traffic drivers? within the store rather than make brands compete with each other. Focusing on
categories also helped to achieve a level of perception within the specific segments. This
department is responsible for the attractive product arrangement in the store with respect to their
nature. The basic function of this department is it divides the store into some departments based
on the nature of the product and also within the types.
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4.2 PRODUCTS OF BIG BAZAAR
It is the men?s formalwear a range that includes formal shirts, trousers, suits, blazers and basic
men?s accessories like ties and handkerchief?s.
Srishti.
The complete ethnic wear range offering a range of traditional designs for ladies encompasses
both salwar Kameez sets and mix & match / fusion wear.
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The men?s ethnic wear range consists of Kurtas, kurta pyjamas sets and sherwani sets.
India?s cool answer to International brands is positioned for the 20-35 year age group. It targets
both men and ladies and the range includes designer denims, casuals, and street-wear.
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True to its tagline „what women want?, Shyla offers a complete range of formal / Semi-casual
line of ladies tops, trousers, skirts, etc.
It?s a range of men?s Party wear.
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The Kids? brand range created to celebrate the spirit of childhood, has the blue range for boys
and pink range for girls. There is an infant line also available as well. Pink & Blue covers the
entire apparel needs of kids across t-shirts, shirts, jeans, trousers, shorts, dresses and ethnic-
wear/occasion-wear.
CTEE Men?s T-shirt.
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Big Bazaar, India?s largest hypermarket chain, a part of the Future Group, announced the launch
of the exclusive Fashion @ Big Bazaar „London Dreams? Fashion Collection, a range of
exclusive apparel, which captures the style statement of the „London Dreams? cast. Big Bazaar
stores across the country will showcase the very youthful apparel and fashion specially created
for the stars of London Dreams. With an intention to fulfill the dream of dressing up the youth,
and „Fashion Jo Star Bana De? promise, Fashion@ Big Bazaar will have the youthful
collection.
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OTHER BRANDS OF BIG BAZAAR
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A brand ambassador is a celebrity (or an attractive or interesting person) used to help advertise a
product or services.
Big Bazaar, has roped in cricketer Mahendra Singh Dhoni and Actress Asin Malabar as the
Brand Ambassador?s for its new range of fashion apparel. Dhoni would feature in a series of
advertisements across all media. Dhoni and Big Bazaar have a lot of synergies as the Indian one-
day international team?s captain stands for the aspirations of youths, while Big Bazaar is looked
up to by millions of Indians to fulfill their aspirations.
In this way, Big Bazaar make full use of the marketing mix for a new venture which earlier
belongs to the unorganized retail sector i.e. kirana stores. Application of the best marketing
practices helps Big Bazaar in a great way.
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4.4 ADVERTISEMENTS AND PUNCH LINE
The departmental store chain Big Bazaar has launched a commercial sometime back to promote
'The Great Exchange Offer'. The commercial portrays how customers can exchange any old
and broken items (junk) and get new products at a discounted price from Big Bazaar.
The 30 seconds film unfolds through the eyes of a cabbie in a busy city street, he is intrigued by
the disruptive visual of a well-dressed office executive carrying a bundle of old newspaper and
walking through a crowded place.
The cabby then notices a young office going lady in western wear carrying a rusty bucket filled
with broken utensils, the cabbie is absolutely confounded but continues to follow her with a
broken tyre in his hand and comes across another absurd situation of a highly placed executive in
a chauffeur driven car with a broken commode on the top of the car.
Penultimate situation reveals everybody is heading towards Big Bazaar for the exchange offer;
the cabbie comes out of the store happy and excited after getting an amazing deal for his junk
tyre.
Moving images are interspersed with supers that hi-light the amazing prices a consumer can get
for his junk. The sound track uses a typical kabada guy's shout as he walks through City Street
calling for junk.
The month of January and February is generally a low-key affair in terms of customer footfalls
and revenue generation. Innovative, out of the box promotions is one of the effective ways to
draw customer attention and shore up the revenue. Historically Exchange schemes have been
used to induce better sales; it also has a strong appeal with the Indian mindset of getting value
even for their junk, states an official release from Big Bazaar.
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4 4. .5 5 M MA AR RK KE ET TI IN NG G T TH HR RO OU UG GH H P PR RO OM MO OT TI IO ON NS S A AN ND D
O OF FF FE ER RS S. .
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MARKETING
STRATEGIES OF
BIG BAZAAR
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5.1 7P ANALYSIS OF BIG BAZAAR
7P?s of Marketing Mix is more useful for services industries and knowledge intensive industries.
Successful marketing depends on number of key issues. The seven key issues are explained as: -
1. PRODUCT.
7P’s
Product
Price
Place
Promotion People
Process
Physical
Evidence
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Big Bazaar offers a wide range of products which range from apparels, food, farm
products, furniture, child care, toys, etc. products of all major brands are available at Big
Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD-Players and 25,000
microwave-ovens. In all, the fashion, electronics and travel segments made up about 70%
of sales. Last year, these categories made up only about 60%.
2. PRICE.
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The tag-line is “Is se sasta aur accha aur kahi nahi”. They work on the model of
economics of scale. There pricing us to get “Maximum Market Share”. The various
techniques used at Big-Bazaar are: -
? Value Pricing (EDLP – Every Day Low Pricing) : - Big Bazaar
promises consumers the lowest available price without coupon clipping, waiting
for discount promotions, or comparison shopping.
? Promotional pricing: - Big Bazaar offers financing at low interest rate. The
concept of psychological discounting (Rs.99, Rs.49, etc.) is used as promotional
tool. Big Bazaar also caters on special Event Pricing ( Close to Diwali and
Durga Pooja ).
? Differentiated Pricing: Time Pricing i.e., difference in rate based on peak
and non-peak hours or days of shopping is also a pricing technique used in Indian
retail, which is aggressively used by Big Bazaar.
? Bundling : - Selling Combo-packs and offering discounts to customers, the
Combo-packs add value to customer.
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PSYCHOLOGICAL PRICING
3. PLACE.
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Big Bazaar stores are located in 50 cities with 116 outlets. Big Bazaar has presence in
almost all the major Indian cities. They are aggressively on their expansion plans.
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4. PROMOTION.
? Big Bazaar started many new and innovative cross-sell strategies in Indian retail
market. The various promotion techniques used at Big Bazaar include “Saal ke
sabse saste teen din”, Future Card (the card offers 3% discount), Shakti Card,
Wednesday Bazaar etc.
? Brand Endorsement by M.S. Dhoni, Exchange Offer – „Junk swap Offer?, Point-
of-Purchase promotions.
? Advertising has played a crucial role in building of the brand. Big Bazaar
advertisements are seen in print media, T.V, Radio (FM) and road-side bill-
boards.
5. PEOPLE.
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They are one of the Key assets for any organization. The salient features of staff
of Big bazaar are:-
? Well trained staff, the staff employed by Big-Bazaar is well-suited for modern
retail.
? Well-dressed staff improves the overall appearance of store.
? Employees are motivated to think out-of-the –box. Retail sector is in growth
stage, so staff is empowered to take innovative steps.
? Employs close to 10,000 people and recruits nearly 500 people every month.
? Use of technology like scenario planning for decision making.
? Multiple counters for payment, staff at store to keep baggage and security guards
at every gate, makes for a customer-friendly atmosphere.
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6. PROCESS.
The good?s dispatch and purchasing area has certain salient features which include: -
? Multiple counters with trolleys to carry the items purchased.
? Proper display / posters of the place like (DAL, SOAP, etc.).
? Home delivery counters also started at many places.
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7. PHYSICAL EVIDENCE.
It deals with the final deliverable or the display of written facts. This includes the current
system and available facilities.
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5.2 Big Bazaar?s New Marketing Strategy:
Big Bazaar has launched new marketing strategy which is based on Guerrilla Marketing.
Guerrilla marketing warfare strategies are a type of marketing warfare strategy designed to wear-
down the enemy by a long series of minor attacks, using principles of surprise and hit-and-run
tactics. Attack, retreat, hide, then do it again, and again, until the competitor moves on to other
markets. Herein guerrilla force is divided into small groups that selectively attack the target at its
weak points. In the world of cut throat competition, corporate use extension of the same strategy
in marketing. Corporate like Coke, Pepsi, etc have been using the same for quite some time now
and the latest entrant is our very own „Future Group?- Big Bazaar, Pantaloons, Future Bazaar,
eZone are all part of this group and they are taking on the biggies like Shoppers Stop, Lifestyle,
and Tata?s Westside.
In order to do the same, Future Group have come up with 3 catchy/cocky and cheeky ad
campaigns which surely do catch our eyes and surely one can?t resist appreciating the same.
Keep West-aSide. Make a smart choice!
Shoppers! Stop. Make a smart choice!
Change Your Lifestyle. Make a smart choice!
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Positioning.
1. As per the above illustration we understand that Big Bazaar positions itself in the 1
st
Quadrant of the graph where the quantity and quality of Service is high and the Price is
Low.
2. This helps them maintain consistency in their promotions which influences the customer
to buy more and more goods.
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5.3 PRODUCT LIFE CYCLE
From the above graph we can conclude that Big Bazaar always aims at sustaining in the Growth
Stage of the Product Life Cycle which gives them the opportunity to improve every day through
proper feedbacks from the customers and also through recommendation forms.
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5.4 SWOT ANALYSIS OF BIG BAZAAR
1. STRENGTH:
? Better understanding of customer helping the company to serve them better.
? Vast range of products under one roof helping in attracting customer and their
family to shop together and enjoy the experience.
? Benefit of early entry into the retail industry.
? Diversified business operating all over India in various retail formats.
2. WEAKNESSES.
? Ability to get product from customers at discounted price due to the scale of
business.
? High cost of operation due to large fixed costs.
? Very thin margin.
? High attrition rate of employee.
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3. OPPORTUNITIES.
? Lot of potential in the rural market.
? Can enter into production of various products due to its in depth understanding of
customers? tastes and preferences.
? Can expand the business in smaller cities as there is a lot of opportunity.
4. THREATS.
? High business risk involved.
? Lot of competitors coming up to tap the market potential.
? Margin of business reducing all the time.
? TARGET AUDIENCE
? Big Bazaar targets higher and upper middle class customers.
? The large and growing young working population is a preferred customer segment.
? Big Bazaar specifically targets working women and home makers who are the primary
decision makers.
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5.5 FUTURE STRATEGIES OF BIG BAZAAR
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5.6 CHALLENGES AHEAD
• Exorbitant rentals, Lack of retail space.
• Real estate prices escalating.
• Local retailers (unorganized sector)
Give things on credits.
Work on low profit margin.
Huge taxes from organized sector favors small retailers.
Have personal relationship with customers, still controls 97% of the retail
market.
• Shortage of trained man power.
• Increased FDI (welcoming competition from Global retail giants like Wall Mart Tesco)
• Does not appeal to elite.
• Tough competition from players like Reliance, RPG group.
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5.7 Future Expectations:
Big Bazaar is planning to have 300 hypermarkets in the country by 2010-11. The company may
also increase its annual turnover to Rs. 13,000 crore by 2010-11, up from Rs. 3,600 crore last
fiscal on the back of its expansion.
The company has also gone on record saying that it would have another 35 stores by the end of
its fiscal in June 2009 to take the total number to 135. To achieve this they are targeting a
turnover of Rs. 5,000 crore in the current fiscal year and have formulated plans for reaching a
figure of Rs. 13,000 crore by 2010-11 fiscal.
For the expansion, the company would be looking at both the metros and Tier I cities, besides
Tier II cities & smaller cities.
The marketing strategy seems to be perfectly on track as the Big Bazaar hypermarkets had a
footfall of 11 crore last fiscal and the company is aiming for an increase in the numbers up to 14
crore this year. The average size of a Big Bazaar hypermarket is 30,000 sq ft to one lakh sq ft.
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HUMAN RESOURCE
DEPARTMENT.
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6.1 HUMAN RESOURCE DEPARTMENT.
The HR department of Big Bazaar is very dynamic. Employees are the biggest
strength and asset of any organization and the HR dept realizes this very well.
This is very evident from the way the HR department handles all its employees. They
take utmost care to select, train, motivate and retain all the employees. Currently Big
Bazaar is employing 150 full time and 60 part time employees. There are two shifts
for the employees. The first shift employees arrive at 10AM in the morning and leave
at 7.30 in the evening, while the second shift employees report at 12.30 in the
afternoon and leave at the time of store closing (10PM).
For any HR activity one of the major activities is recruitment of the employees. The f
following are the main sources though which Big Bazaar recruits it employees:
1) Consultancy Services: For top level management employees are
recruited through private consultants. They are usually appointed as
Departmental Managers.
2) Walk-ins: This is the main source through which Big Bazaar recruits its
employees. People seeking job usually themselves approach the HR
Department for employees usually selected from this source are appointed at
the entry level as team members.
3) Employee Referrals: This is the other main source through which
employees are selected. Candidates who have given their previous employer
as referrals are first interweaved and from their performance in the job. If
they receive a positive opinion from their previous employer they are
selected.
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4) Campus Recruitment: Young people bring new ideas and fresh
enthusiasm. Therefore Big Bazaar visits some of the reputed educational
institutions to hire some of the most talented and promising students as its
employees. Selection procedure is carried out in the following manner:
a. Interview: For entry level jobs, the candidates are interviewing by
a HR person. They are asked a few basis questions about their
education, previous work experience if any, languages known etc.
This is done to evaluate the candidate?s ability to communicate
freely and also other skills.
b. Psychometric Tests: For higher and top level jobs, candidates
are asked to answer a few questions which basically test their
sharpness, analytical ability, ability to handle stress, presence of
mind etc. This is done as Managers are required to work under stress
all the time and still maintain a cool head to make some vital
decisions.
c. Group Discussion: In campus recruitment students are involved
in a group discussion, where they will be given a topic on which the
group has to deliberate, discuss and arrive at a solution or a decision
which is accepted by the whole group. Along with the G D they are
given a written aptitude test.
Finally a formal interview will be conducted to assess the overall
skills of the student.
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6.2 INDUCTION
New employees selected will be given a 13day induction and training program. They will be
given information about the company?s business, different departments etc. They will be
informed of their roles, duties and responsibilities. They will also be informed about the HR
policies and rules of the company.
The new employees will be on probation for a period of 6 months. After this period the HR
period along with the department manager will review the performance is good and encouraging,
the employee?s services will be confirmed.
6.3 COMPENSATION AND REWARDS.
The employees are rewarded suitably with attractive pay packages.
The salary of an employee includes basic pay, HRA, Special Allowance, PF, ESI, Mediclaim etc.
Annual bonus will be given at the time of Diwali.
The employees and their dependents are also entitled for medical treatment in recognized
hospitals with cashless hospitalization with which the company has tie-ups.
If a hospital is not recognized, the amount spent by the employee will be reimbursed.
Along with these all the employees are given a card known as „Employee Discount Card? (EDC)
through which they can buy any product of Big Bazaar at a discount of 20-30%.
51
6.4 LEAVES AND OTHER RULES.
An employee during his probationary period is entitled for 7 days of leave. A confirmed
employee is entitled for 30 days of leave in a year. There is only one type of leave the employee
can take which is known as All Purpose Leave (APL).
All the employees will be given identity cards which they have to wear and also swipe while at
the time of entering and leaving the store.
6.5 PERFORMANCE APPRAISAL.
The HR department conducts performance appraisal of all the employees annually in the month
of April.
Based of their performance increments will be given in their pay. In addition to this if an
employee achieves or exceeds the target given to along with their team members will be
provided with attractive cash and other incentives.
TRAINING AND DEVELOPMENT.
52
Future group has its own training division for all its employees, known as „Future
Learning & Development Limited? (FLDL). All the employees are given training
for 20days in a year spread over different periods.
„Gurukul? which is a part of FLDL gives training to all the employees on various
skills like team work, dedication discipline knowledgeable and productive.
6.6 RETENTION STRATEGY.
We strive to foster feeling of well-being in our employees through care and respect, we have
several structures process including employee mentoring and grievance management
programmes which are intended to facilitate a friendly and cohesive organization culture. Off-
site activities are encourages to improve inter-personal relationship. We also acknowledge the
efforts exerted by our employees in the organization, an annual celebration called „Pantaloon
Day? where we recognize employees who have shown exceptional talent, sincerity and
dedication. We have implemented an employee suggestion programme called „Prerna? where in
the employee can give their suggestions. Every quarter the best suggestion received per zone per
format is awarded prize called “Golden Cap”.
53
6.7 INTERNAL CONTROLS AND RISK MANAGEMENT.
The company uses the services of Ernst & Young for process audit and risk management and the
scope of their work covers all the company?s formats .i.e. Pantaloons, Big Bazaar, Food bazaar
and Factory outlet.
The Objective is to:-
? Gain an understanding of the various Business Processes.
? Indentify the strengths and weaknesses in the existing systems and procedures.
? Review use of technology in the function.
? Identify key business process risks and review the adequacy of the controls and
mitigate them.
? Test the effectiveness of controls, the significant risks and provide recommendations
to improve controls.
? Identify potential areas for improving process efficiency.
? Broadly develop on improvement portfolio and raise the level of awareness of how
business is impacted by inadequately controlled risks inherent in the business process.
Internal audit if our each store is also undertaken by an independent audit firm
on monthly / quarterly basis.
54
6.8 WHAT MOTIVATES EMPLOYEES?
The main issue that every manager talks about relating to his employee is, that he might have
better-motivated employees. In Big Bazaar the scenario is different. Here employees are
motivates through various ways and some of the ways are discussed below:
? Feeling “in” on things.
? Good wages.
? Good working Conditions.
? Job security.
? Full appreciation of work that is done.
? Tactful discipline.
? Employer loyalty to employees.
? Interesting work.
? Promotion and growth in the organization.
55
6.9 MEASUREMENT OF CUSTOMER SATISFACTION
We gave devised a model called CEM – Customer Experience Management Model to
measure customer satisfaction in our stores. The Customer Experience Model focuses on the
customer?s experience at every touch point in the store ranging from their first experience at
the store, to their experience at the trial rooms, toilers, with our staff through various
processes such as billing and exchanges. We have hired a research agency called MACRO –
Market Analysis and Consumer Research Organization.
This agency sends people who are called „Mystery Shoppers? to visit the stores and then their
experience is documented on a feedback form, which is then sent to us. Based on the
feedback formed analysis is done and the stores are given scores. This allows us to track
performance on customer expectation at overall, format and store levels, determine critical
improvement areas are all levels and also identity opportunities that we can leverages upon.
Besides, we have also started an in-house initiative called „Pragati? whereby one person from
the head office operations team visits the stores and observes the stores with respect to
certain pre-parameters likes store exteriors, baggage window, customer service, store
ambience etc. This activity is done on a quarterly basis and three best stores under each
format are announced. This encourages the store to improve their performance.
56
BIG BAZAAR
(VASHI)
57
7 About BIG BAZAAR (Raghuleela Mall / VASHI)
As you could see BIG BAZAAR has 3 LEVELS, each Level consists of variety of products, in
order to provide the customer with the best Shopping Experience and Convenience in shopping
their products. It has been designed in such a manner, that each Level has its specialty; some
examples are given as under:
58
LEVEL 1:-
? Garments Bazaar.
? Women formal wear Bazaar.
? Men?s formal wear Bazaar.
? Men?s Informal wear Bazaar.
? Undergarments Bazaar.
? Accessories Bazaar.
? Mobile Bazaar etc.
LEVEL 2: -
? Footwear Bazaar.
? Electronic Bazaar.
? Stationary Bazaar.
? Toys Bazaar.
? Furniture Bazaar.
? Gadgets Bazaar etc.
LEVEL 3: -
? Grocery Bazaar.
? Food Bazaar.
? Vegetable Bazaar.
? Wine Bazaar.
? Snacks Bazaar.
? Utensils Bazaar.
? Crockery Bazaar.
? Household Bazaar.
59
? Drinks Bazaar.
? Sweets Bazaar etc.
In Short, Big Bazaar has been bifurcated in such a manner that it provides the Best of the Family
Shopping Experience.
60
CONCLUSION
61
8. BIG BAZAAR
1. Variety : Big Bazaar offers a wide variety of products of different prices and different
qualities satisfying most of its customers.
2. Quality: Providing quality at low prices and having different types of products for different
income customers is another advantage.
3. Price: As noted the prices and offers in Big Bazaar have been one of the main attractions and
reasons for its popularity. The price ranges and the products offered are very satisfying to the
customers
4. Location: The location of Big Bazaar has been mainly in the heart of the city or in the out
skirts giving a chance to both the City and the people living outside the city to shop.
5. Advertisements: Big bazaar has endorsed very popular figure like M S Dhoni and other
famous personalities which has attracted a lot of customers. This has resulted in increase of sale
and the outdoor advertising techniques have also helped Big Bazaar.
6. Middle class appeal: Considering the fact that there are a lot middle class families in
India, Big bazaar has had a huge impact on the middle class section of India, the prices, quality
and sales strategy has helped in getting the middle income groups getting attracted towards Big
Bazaar.
7. Attractive sales: Big bazaar has been known for its great sale and great offers. Big bazaar
has had long lines of people waiting to get into the store for the sale.
Therefore, the sales that Big Bazaar has had has increased sales in a huge way due to the sales
and offers, thus this has been one of the main advantages of Big Bazaar.
62
63
QUESTIONNAIRE
64
9. QUESTIONNAIRE
1. Should Big Bazaar slow down?
2. Should they focus on the company and let a few retail opportunities go by?
3. Is Promotion, the only way to promote sales volume?
4. How important is Promotion as compare to Quality?
5. Is Big Bazaar ready for Future Competition in Retail Market?
6. Is Big Bazaar capable of Handling a large Population such as India in the near future?
65
BIBLIOGRAPHY
66
1. Books:-
Marketing : - Philip Kotler.
Human Resource Management: - Kale - Vipul Prakashan.
2. WEBSITE:-
www.google.com
www.yahoo.com
doc_444064134.doc
BMS - 2011
1
Retail industry
2
1.1 INTRODUCTION
Retailing consists of the sale of goods or merchandise from a fixed location, such as a
department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption
by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may
be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities
from manufacturers or importers, either directly or through a wholesaler, and then sells smaller
quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at
the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary
part of their overall distribution strategy. The term "retailer" is also applied where a service
provider services the needs of a large number of individuals, such as a public utility, like electric
power.
Shops may be on residential streets, shopping streets with few or no houses or in a shopping
mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or
full roof to protect customers from precipitation. Online retailing, a type of electronic commerce
used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop
retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to obtain
necessities such as food and clothing; sometimes it is done as a recreational activity.
Recreational shopping often involves window shopping (just looking, not buying) and browsing
and does not always result in a purchase.
Definition
Retail is the sale of goods to end users, not for resale, but for use and consumption by the
purchaser. The retail transaction is at the end of the supply chain. Manufacturers sell large
quantities of products to retailers, and retailers sell small quantities of those products to
consumers.
3
1.2 RETAIL INDUSTRY IN INDIA
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. Thought the market has
been dominated by unorganized players, the entry of domestic and international organized
players is set to change the scenario.
Organized retail segment has been growing at a blistering pace, exceeding all previous estimates.
According to a study by Deloitte Haskins and Sells, organized retail has increased its share from
8 per cent of total retail sales in 2007 to 10 per cent in 2008. The fastest growing segments have
been the wholesale cash and carry stores (150 per cent) followed by supermarkets (100 per cent)
and hypermarkets (75-80 per cent). Further, it estimates the organized segment to account for 25
per cent of the total sales by 2011.
India retail industry is the largest industry in India, with an employment of around 8% and
contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25%
yearly being driven by strong income growth, changing lifestyles, and favorable demographic
patterns.
It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.
India retail industry is one of the fastest growing industries with revenue expected in 2008 to
amount US$ 350 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is
expected in the industry of retail in India by growth in consumerism in urban areas, rising
incomes, and a steep rise in rural consumption. It has further been predicted that the retailing
industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5
billion.
Shopping in India has witnessed a revolution with the change in the consumer buying behavior
and the whole format of shopping also altering. Industry of retail in India which has become
modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and
sprawling complexes which offer food, shopping, and entertainment all under the same roof.
4
India retail industry is expanding itself most aggressively; as a result a great demand for real
estate is being created. Indian retailers preferred means of expansion is to expand to other
regions and to increase the number of their outlets in a city. It is expected that by 2010, India
may have 600 new shopping centers.
India retail industry is progressing well and for this to continue retailers as well as the Indian
government will have to make a combined effort.
5
PROJECT DESIGN
6
2.1 ABOUT BIG BAZAAR
Type : Hypermarket.
Founded in the Year : 2001.
Headquarters : Jogeshwari, Mumbai.
Industry : Retail.
Products : Department, Grocery store.
Promoter : Kishore Biyani.
Parent Company : Pantaloon Retail India Ltd.
Punch line : “Is se sasta aur accha
kahin nahi”
7
2.2 OBJECTIVE OF THE STUDY
? To study the Retail Industry of India.
? To Study the Marketing strategies adopted by Big Bazaar.
? To study the functioning of the Marketing Department of Big Bazaar.
? To study the promotional strategies used by Big Bazaar to promote sales
volume.
? To Analyze the Future Strategies and Expectations of Big Bazaar.
8
2.3 LIMITATIONS OF THE STUDY.
1. Store layout: The store layout and the assortment of goods is not the best at Big Bazaar, as
the quantity of goods sold is more the arrangement and assortment of goods in the store is the
greatest. Hence at times customers find it hard to find what they require, this leads to
dissatisfaction of customers.
2. Lower quality of goods: As Big bazaar aims more toward the middle income group, the
quality of goods is not of the highest quality, and this is sometimes a disadvantage as some
would prefer better quality to the price, making customers to search for different places.
3. Does not appeal to the elite: As mentioned above, the main customers are middle
income and a few high income groups, The elite do not like to shop at Big Bazaar as the quality
of goods is lower and they would prefer a higher price and get a better brand, this decreases sales
from the elite class.
4. Not acclaimed for very good service: Big Bazaar is not known for high class service.
The staff recruited is not very well trained and the billing queues take a long time to move, this
irritates customers which makes them visit the store more seldom.
5. Lower quality of goods: As the sore is trying to concentrate on the middle income group
the type of products used is not of the most superior quality and most of the times nor branded,
this may dissatisfy certain customers.
6. Consumer satisfaction: Long queues and lower quality leads to dissatisfaction of
customers. Due to factors mentioned above Big Bazaar shoppers are not always satisfied, this is
not a positive for the store.
9
INTRODUCTION
10
3.1 PROFILE OF BIG BAZZAR
Indian retail sector is witnessing one of the most hectic marketing activities of all times. The
companies are fighting for mind share and heart share which can finally be converted to market
share. There is always a „first mover advantage? in an upcoming sector. In India, that advantage
goes to “Big Bazaar.” It has brought about many changes in the buying habits of people. It has
created formats which provide all items under one roof at low rates, or so it claims. In this
project, we will study its Functional departments in detail. Big Bazaar?s main competitors are
other business houses which are planning to enter the market as well as long established „Kirana?
stores which feel threatened by huge retail chains.
Big Bazaar is not just another hypermarket. It caters to every need of a family. Where Big
Bazaar scores over other stores is its value for money proposition for the Indian customers. At
Big Bazaar, one can get the best products at the best prices – that is what they guarantee. With
the ever increasing array of private labels, it has opened the doors into the world of fashion and
general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and
much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to
add much more to complete the shopping experience. Food is the main shopped for category in
this store.
Parent Company:-
Pantaloon Retail (India) Limited, is India?s leading retailer that operates multiple retail formats
in both the value and lifestyle segment of the Indian consumer market.
11
3.2 MAN BEHIND BIG BAZAAR
• Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group.
• He was born in August 1961.
• Kishore Biyani founded Pantaloons in 1997.
• onsiders „Indianness? as the core value driving the group.
• Kishore Biyani has won following awards and honors:
• 2006 Ernst & Young Entrepreneur of the Year award.
• 2006 Lakshmipat Singhania - IIM Lucknow Young Business Leader Award.
• 2006 CNBC First Generation Entrepreneur of the Year award.
12
3.3 History of – BIG BAZAAR
Big Bazaar is a chain of department stores in India currently with 120 outlets. It is owned by
Pantaloon Retail India Ltd, Future Group. It works on the same economy model as Wal-Mart and
has been successful in many Indian cities and small towns. The idea was pioneered by
Entrepreneur Mr. Kishore Biyani, the CEO of Future Group. Currently Big Bazaar stores are
located only in India. It is the fastest growing chain of department stores and aims at having 350
stores by 2010. Big Bazaar is the destination where you get products available at price lower
than the MRP, setting a new level of standard in price, convenience and quality. Its values and
missions are to be the best in Value Retailing by providing the cheapest prices and 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 lowest in the
city. Usually the items are clubbed together for offers as on the lines of Wal-mart and Carrefour
and it also offers weekend discounts. It currently operates out of more than 100 stores and top 25
stores register a cumulative footfall of 30 lakh a month on an average.
13
3.4 COMPANY VISION AND MISSION
VISION
? “To Deliver Everything, Everywhere, Every time, to Every Indian customer in the
most profitable manner.”
? One of the core values at Future Group is, „India ness? and its corporate credo is –
“Rewrite rules, Retain values.”
MISSION
? We share the vision and belief that our customers and stakeholders shall be served
only by creating and executing future Scenarios in the consumption space leading to
economic development.
? We will be the trendsetters in evolving delivery formats, creating retail realty,
making consumption affordable for all customer segments.
14
3.5 AWARDS AND RECOGNITION
? Most Admired Retailer of the year: Hypermarket – Big Bazaar – 2009.
? Indian Retail Forum Awards 2008.
? The INDIASTAR Award 2008.
? Retail Asia Pacific 500 Top Awards 2008.
? Coca-Cola Golden Spoon Awards 2008.
? The Reid & Taylor Awards For Retail Excellence 2008.
? Platinum Trusted Brand Award Images Retail Award 2005, 06.
15
CORE VALUES OF BIG BAZAAR.
INDIANESS: - To be patriot.
LEADERSHIP: - To be a leader, both in thought and business.
RESPECT & HUMILITY: - To respect every individual and to be humble in our
conduct.
INTROSPECTION: - Leading to purposeful thinking.
OPENNESS: - To be open and receptive to new ideas, knowledge and
information.
VALUING AND NURTURING
RELATIONSHIP: -
To built long term relationships.
SIMPLICITY & POSITIVITY: - Simplicity and Positivity in our thought, business and
work.
ADAPTABILITY: - To be flexible and adaptable, to meet new challenges.
FLOW: To respect and understand the universal laws nature.
16
MARKETING IN
BIG BAZAAR.
17
4.1 MARKETING DEPARTMENT.
? Designs creative and attractive advertisements through which the company?s products
can be promoted to the customers.
? Decides the different marketing channels to be used to increase the sales.
? Creates a very pleasant and feel good environment in the store to attract more customers.
? Also responsible for the arrangement of product in each department to help easy
availability of products to the customers.
Marketing concept is a customer orientation backed by integrated marketing aimed at generating
customer satisfaction as the key to satisfying Organizational goals. For a firm in order to
implement the marketing concept it has to focus its attention on the consumer, ascertain his/her
needs, discuss and wants before every Brand appeals to individual customers in different ways.
Good customer service is the life blood of any business. Good customer service is all about
attending to existing and potential customer?s concept relationship marketing. Traditionally,
marketers have located their target market segments, presented their offer, and made the sales.
It?s always been a single step process. Relationship marketing looks at customers and clients
over a longer term. It takes into account the lifetime value of a customer. Many experts think it
costs anywhere from six to ten times as much, to find a new customer, than to sell to an existing
one. With those financial realities in mind, the approach makes some sense, and some real
dollars. Relationship marketing is based on the idea that people prefer to do business with people
who they know and like. It?s said that people need to hear an offer at least seven times before
they buy. That concept certainly works against the single step marketing method. The Marketing
department is responsible for marketing of Big bazaars products through different media like TV,
Radio, Newspaper, Banners, placards etc. The marketing department has to decide and identify
the most effective medium to attract the customers to Big Bazaar thereby increasing the sales.
The department has to design creative and attractive advertisements through which the
company?s products can be promoted to the customers. The company has to visit different
companies and has to enter in tie-ups for all its advertisement campaign.
The Marketing department also consists of another separate department which is known as
„Visual Merchandising?. Visual merchandising is an art by which a retailer makes the store talk
18
to the customers. The colors, signage, lights, look and feel, everything is taken into account. It is
very important to figure out what is the story, the picture, the idea that is being sold to the
customers.
Another concept that was incorporated in Big Bazaar from the beginning was that of „Category
management? as opposed to the brand merchandising practice that is followed by many retailers.
Category management is based on the belief that a customer walks into a store looking for party
shirt or a formal trouser, rather than a particular brand. Therefore, the store is designed according
to the categories like men?s formal wear, women?s western wear or a casual wear, etc.
Within the organization too, teams were divided according to the categories that they managed,
rather than the brands. Big Bazaar wanted to have a complete bouquet of products in each
category at different price-points, design, fabric, size and color. The objective was to create
„traffic drivers? within the store rather than make brands compete with each other. Focusing on
categories also helped to achieve a level of perception within the specific segments. This
department is responsible for the attractive product arrangement in the store with respect to their
nature. The basic function of this department is it divides the store into some departments based
on the nature of the product and also within the types.
19
4.2 PRODUCTS OF BIG BAZAAR
It is the men?s formalwear a range that includes formal shirts, trousers, suits, blazers and basic
men?s accessories like ties and handkerchief?s.
Srishti.
The complete ethnic wear range offering a range of traditional designs for ladies encompasses
both salwar Kameez sets and mix & match / fusion wear.
20
The men?s ethnic wear range consists of Kurtas, kurta pyjamas sets and sherwani sets.
India?s cool answer to International brands is positioned for the 20-35 year age group. It targets
both men and ladies and the range includes designer denims, casuals, and street-wear.
21
True to its tagline „what women want?, Shyla offers a complete range of formal / Semi-casual
line of ladies tops, trousers, skirts, etc.
It?s a range of men?s Party wear.
22
The Kids? brand range created to celebrate the spirit of childhood, has the blue range for boys
and pink range for girls. There is an infant line also available as well. Pink & Blue covers the
entire apparel needs of kids across t-shirts, shirts, jeans, trousers, shorts, dresses and ethnic-
wear/occasion-wear.
CTEE Men?s T-shirt.
23
Big Bazaar, India?s largest hypermarket chain, a part of the Future Group, announced the launch
of the exclusive Fashion @ Big Bazaar „London Dreams? Fashion Collection, a range of
exclusive apparel, which captures the style statement of the „London Dreams? cast. Big Bazaar
stores across the country will showcase the very youthful apparel and fashion specially created
for the stars of London Dreams. With an intention to fulfill the dream of dressing up the youth,
and „Fashion Jo Star Bana De? promise, Fashion@ Big Bazaar will have the youthful
collection.
24
OTHER BRANDS OF BIG BAZAAR
25
4
44.
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33 B
BBR
RRA
AAN
NND
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AAM
MMB
BBA
AAS
SSS
SSA
AAD
DDO
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A brand ambassador is a celebrity (or an attractive or interesting person) used to help advertise a
product or services.
Big Bazaar, has roped in cricketer Mahendra Singh Dhoni and Actress Asin Malabar as the
Brand Ambassador?s for its new range of fashion apparel. Dhoni would feature in a series of
advertisements across all media. Dhoni and Big Bazaar have a lot of synergies as the Indian one-
day international team?s captain stands for the aspirations of youths, while Big Bazaar is looked
up to by millions of Indians to fulfill their aspirations.
In this way, Big Bazaar make full use of the marketing mix for a new venture which earlier
belongs to the unorganized retail sector i.e. kirana stores. Application of the best marketing
practices helps Big Bazaar in a great way.
26
4.4 ADVERTISEMENTS AND PUNCH LINE
The departmental store chain Big Bazaar has launched a commercial sometime back to promote
'The Great Exchange Offer'. The commercial portrays how customers can exchange any old
and broken items (junk) and get new products at a discounted price from Big Bazaar.
The 30 seconds film unfolds through the eyes of a cabbie in a busy city street, he is intrigued by
the disruptive visual of a well-dressed office executive carrying a bundle of old newspaper and
walking through a crowded place.
The cabby then notices a young office going lady in western wear carrying a rusty bucket filled
with broken utensils, the cabbie is absolutely confounded but continues to follow her with a
broken tyre in his hand and comes across another absurd situation of a highly placed executive in
a chauffeur driven car with a broken commode on the top of the car.
Penultimate situation reveals everybody is heading towards Big Bazaar for the exchange offer;
the cabbie comes out of the store happy and excited after getting an amazing deal for his junk
tyre.
Moving images are interspersed with supers that hi-light the amazing prices a consumer can get
for his junk. The sound track uses a typical kabada guy's shout as he walks through City Street
calling for junk.
The month of January and February is generally a low-key affair in terms of customer footfalls
and revenue generation. Innovative, out of the box promotions is one of the effective ways to
draw customer attention and shore up the revenue. Historically Exchange schemes have been
used to induce better sales; it also has a strong appeal with the Indian mindset of getting value
even for their junk, states an official release from Big Bazaar.
27
28
4 4. .5 5 M MA AR RK KE ET TI IN NG G T TH HR RO OU UG GH H P PR RO OM MO OT TI IO ON NS S A AN ND D
O OF FF FE ER RS S. .
29
MARKETING
STRATEGIES OF
BIG BAZAAR
30
5.1 7P ANALYSIS OF BIG BAZAAR
7P?s of Marketing Mix is more useful for services industries and knowledge intensive industries.
Successful marketing depends on number of key issues. The seven key issues are explained as: -
1. PRODUCT.
7P’s
Product
Price
Place
Promotion People
Process
Physical
Evidence
31
Big Bazaar offers a wide range of products which range from apparels, food, farm
products, furniture, child care, toys, etc. products of all major brands are available at Big
Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD-Players and 25,000
microwave-ovens. In all, the fashion, electronics and travel segments made up about 70%
of sales. Last year, these categories made up only about 60%.
2. PRICE.
32
The tag-line is “Is se sasta aur accha aur kahi nahi”. They work on the model of
economics of scale. There pricing us to get “Maximum Market Share”. The various
techniques used at Big-Bazaar are: -
? Value Pricing (EDLP – Every Day Low Pricing) : - Big Bazaar
promises consumers the lowest available price without coupon clipping, waiting
for discount promotions, or comparison shopping.
? Promotional pricing: - Big Bazaar offers financing at low interest rate. The
concept of psychological discounting (Rs.99, Rs.49, etc.) is used as promotional
tool. Big Bazaar also caters on special Event Pricing ( Close to Diwali and
Durga Pooja ).
? Differentiated Pricing: Time Pricing i.e., difference in rate based on peak
and non-peak hours or days of shopping is also a pricing technique used in Indian
retail, which is aggressively used by Big Bazaar.
? Bundling : - Selling Combo-packs and offering discounts to customers, the
Combo-packs add value to customer.
33
PSYCHOLOGICAL PRICING
3. PLACE.
34
Big Bazaar stores are located in 50 cities with 116 outlets. Big Bazaar has presence in
almost all the major Indian cities. They are aggressively on their expansion plans.
35
4. PROMOTION.
? Big Bazaar started many new and innovative cross-sell strategies in Indian retail
market. The various promotion techniques used at Big Bazaar include “Saal ke
sabse saste teen din”, Future Card (the card offers 3% discount), Shakti Card,
Wednesday Bazaar etc.
? Brand Endorsement by M.S. Dhoni, Exchange Offer – „Junk swap Offer?, Point-
of-Purchase promotions.
? Advertising has played a crucial role in building of the brand. Big Bazaar
advertisements are seen in print media, T.V, Radio (FM) and road-side bill-
boards.
5. PEOPLE.
36
They are one of the Key assets for any organization. The salient features of staff
of Big bazaar are:-
? Well trained staff, the staff employed by Big-Bazaar is well-suited for modern
retail.
? Well-dressed staff improves the overall appearance of store.
? Employees are motivated to think out-of-the –box. Retail sector is in growth
stage, so staff is empowered to take innovative steps.
? Employs close to 10,000 people and recruits nearly 500 people every month.
? Use of technology like scenario planning for decision making.
? Multiple counters for payment, staff at store to keep baggage and security guards
at every gate, makes for a customer-friendly atmosphere.
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6. PROCESS.
The good?s dispatch and purchasing area has certain salient features which include: -
? Multiple counters with trolleys to carry the items purchased.
? Proper display / posters of the place like (DAL, SOAP, etc.).
? Home delivery counters also started at many places.
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7. PHYSICAL EVIDENCE.
It deals with the final deliverable or the display of written facts. This includes the current
system and available facilities.
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5.2 Big Bazaar?s New Marketing Strategy:
Big Bazaar has launched new marketing strategy which is based on Guerrilla Marketing.
Guerrilla marketing warfare strategies are a type of marketing warfare strategy designed to wear-
down the enemy by a long series of minor attacks, using principles of surprise and hit-and-run
tactics. Attack, retreat, hide, then do it again, and again, until the competitor moves on to other
markets. Herein guerrilla force is divided into small groups that selectively attack the target at its
weak points. In the world of cut throat competition, corporate use extension of the same strategy
in marketing. Corporate like Coke, Pepsi, etc have been using the same for quite some time now
and the latest entrant is our very own „Future Group?- Big Bazaar, Pantaloons, Future Bazaar,
eZone are all part of this group and they are taking on the biggies like Shoppers Stop, Lifestyle,
and Tata?s Westside.
In order to do the same, Future Group have come up with 3 catchy/cocky and cheeky ad
campaigns which surely do catch our eyes and surely one can?t resist appreciating the same.
Keep West-aSide. Make a smart choice!
Shoppers! Stop. Make a smart choice!
Change Your Lifestyle. Make a smart choice!
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Positioning.
1. As per the above illustration we understand that Big Bazaar positions itself in the 1
st
Quadrant of the graph where the quantity and quality of Service is high and the Price is
Low.
2. This helps them maintain consistency in their promotions which influences the customer
to buy more and more goods.
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5.3 PRODUCT LIFE CYCLE
From the above graph we can conclude that Big Bazaar always aims at sustaining in the Growth
Stage of the Product Life Cycle which gives them the opportunity to improve every day through
proper feedbacks from the customers and also through recommendation forms.
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5.4 SWOT ANALYSIS OF BIG BAZAAR
1. STRENGTH:
? Better understanding of customer helping the company to serve them better.
? Vast range of products under one roof helping in attracting customer and their
family to shop together and enjoy the experience.
? Benefit of early entry into the retail industry.
? Diversified business operating all over India in various retail formats.
2. WEAKNESSES.
? Ability to get product from customers at discounted price due to the scale of
business.
? High cost of operation due to large fixed costs.
? Very thin margin.
? High attrition rate of employee.
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3. OPPORTUNITIES.
? Lot of potential in the rural market.
? Can enter into production of various products due to its in depth understanding of
customers? tastes and preferences.
? Can expand the business in smaller cities as there is a lot of opportunity.
4. THREATS.
? High business risk involved.
? Lot of competitors coming up to tap the market potential.
? Margin of business reducing all the time.
? TARGET AUDIENCE
? Big Bazaar targets higher and upper middle class customers.
? The large and growing young working population is a preferred customer segment.
? Big Bazaar specifically targets working women and home makers who are the primary
decision makers.
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5.5 FUTURE STRATEGIES OF BIG BAZAAR
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5.6 CHALLENGES AHEAD
• Exorbitant rentals, Lack of retail space.
• Real estate prices escalating.
• Local retailers (unorganized sector)
Give things on credits.
Work on low profit margin.
Huge taxes from organized sector favors small retailers.
Have personal relationship with customers, still controls 97% of the retail
market.
• Shortage of trained man power.
• Increased FDI (welcoming competition from Global retail giants like Wall Mart Tesco)
• Does not appeal to elite.
• Tough competition from players like Reliance, RPG group.
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5.7 Future Expectations:
Big Bazaar is planning to have 300 hypermarkets in the country by 2010-11. The company may
also increase its annual turnover to Rs. 13,000 crore by 2010-11, up from Rs. 3,600 crore last
fiscal on the back of its expansion.
The company has also gone on record saying that it would have another 35 stores by the end of
its fiscal in June 2009 to take the total number to 135. To achieve this they are targeting a
turnover of Rs. 5,000 crore in the current fiscal year and have formulated plans for reaching a
figure of Rs. 13,000 crore by 2010-11 fiscal.
For the expansion, the company would be looking at both the metros and Tier I cities, besides
Tier II cities & smaller cities.
The marketing strategy seems to be perfectly on track as the Big Bazaar hypermarkets had a
footfall of 11 crore last fiscal and the company is aiming for an increase in the numbers up to 14
crore this year. The average size of a Big Bazaar hypermarket is 30,000 sq ft to one lakh sq ft.
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HUMAN RESOURCE
DEPARTMENT.
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6.1 HUMAN RESOURCE DEPARTMENT.
The HR department of Big Bazaar is very dynamic. Employees are the biggest
strength and asset of any organization and the HR dept realizes this very well.
This is very evident from the way the HR department handles all its employees. They
take utmost care to select, train, motivate and retain all the employees. Currently Big
Bazaar is employing 150 full time and 60 part time employees. There are two shifts
for the employees. The first shift employees arrive at 10AM in the morning and leave
at 7.30 in the evening, while the second shift employees report at 12.30 in the
afternoon and leave at the time of store closing (10PM).
For any HR activity one of the major activities is recruitment of the employees. The f
following are the main sources though which Big Bazaar recruits it employees:
1) Consultancy Services: For top level management employees are
recruited through private consultants. They are usually appointed as
Departmental Managers.
2) Walk-ins: This is the main source through which Big Bazaar recruits its
employees. People seeking job usually themselves approach the HR
Department for employees usually selected from this source are appointed at
the entry level as team members.
3) Employee Referrals: This is the other main source through which
employees are selected. Candidates who have given their previous employer
as referrals are first interweaved and from their performance in the job. If
they receive a positive opinion from their previous employer they are
selected.
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4) Campus Recruitment: Young people bring new ideas and fresh
enthusiasm. Therefore Big Bazaar visits some of the reputed educational
institutions to hire some of the most talented and promising students as its
employees. Selection procedure is carried out in the following manner:
a. Interview: For entry level jobs, the candidates are interviewing by
a HR person. They are asked a few basis questions about their
education, previous work experience if any, languages known etc.
This is done to evaluate the candidate?s ability to communicate
freely and also other skills.
b. Psychometric Tests: For higher and top level jobs, candidates
are asked to answer a few questions which basically test their
sharpness, analytical ability, ability to handle stress, presence of
mind etc. This is done as Managers are required to work under stress
all the time and still maintain a cool head to make some vital
decisions.
c. Group Discussion: In campus recruitment students are involved
in a group discussion, where they will be given a topic on which the
group has to deliberate, discuss and arrive at a solution or a decision
which is accepted by the whole group. Along with the G D they are
given a written aptitude test.
Finally a formal interview will be conducted to assess the overall
skills of the student.
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6.2 INDUCTION
New employees selected will be given a 13day induction and training program. They will be
given information about the company?s business, different departments etc. They will be
informed of their roles, duties and responsibilities. They will also be informed about the HR
policies and rules of the company.
The new employees will be on probation for a period of 6 months. After this period the HR
period along with the department manager will review the performance is good and encouraging,
the employee?s services will be confirmed.
6.3 COMPENSATION AND REWARDS.
The employees are rewarded suitably with attractive pay packages.
The salary of an employee includes basic pay, HRA, Special Allowance, PF, ESI, Mediclaim etc.
Annual bonus will be given at the time of Diwali.
The employees and their dependents are also entitled for medical treatment in recognized
hospitals with cashless hospitalization with which the company has tie-ups.
If a hospital is not recognized, the amount spent by the employee will be reimbursed.
Along with these all the employees are given a card known as „Employee Discount Card? (EDC)
through which they can buy any product of Big Bazaar at a discount of 20-30%.
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6.4 LEAVES AND OTHER RULES.
An employee during his probationary period is entitled for 7 days of leave. A confirmed
employee is entitled for 30 days of leave in a year. There is only one type of leave the employee
can take which is known as All Purpose Leave (APL).
All the employees will be given identity cards which they have to wear and also swipe while at
the time of entering and leaving the store.
6.5 PERFORMANCE APPRAISAL.
The HR department conducts performance appraisal of all the employees annually in the month
of April.
Based of their performance increments will be given in their pay. In addition to this if an
employee achieves or exceeds the target given to along with their team members will be
provided with attractive cash and other incentives.
TRAINING AND DEVELOPMENT.
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Future group has its own training division for all its employees, known as „Future
Learning & Development Limited? (FLDL). All the employees are given training
for 20days in a year spread over different periods.
„Gurukul? which is a part of FLDL gives training to all the employees on various
skills like team work, dedication discipline knowledgeable and productive.
6.6 RETENTION STRATEGY.
We strive to foster feeling of well-being in our employees through care and respect, we have
several structures process including employee mentoring and grievance management
programmes which are intended to facilitate a friendly and cohesive organization culture. Off-
site activities are encourages to improve inter-personal relationship. We also acknowledge the
efforts exerted by our employees in the organization, an annual celebration called „Pantaloon
Day? where we recognize employees who have shown exceptional talent, sincerity and
dedication. We have implemented an employee suggestion programme called „Prerna? where in
the employee can give their suggestions. Every quarter the best suggestion received per zone per
format is awarded prize called “Golden Cap”.
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6.7 INTERNAL CONTROLS AND RISK MANAGEMENT.
The company uses the services of Ernst & Young for process audit and risk management and the
scope of their work covers all the company?s formats .i.e. Pantaloons, Big Bazaar, Food bazaar
and Factory outlet.
The Objective is to:-
? Gain an understanding of the various Business Processes.
? Indentify the strengths and weaknesses in the existing systems and procedures.
? Review use of technology in the function.
? Identify key business process risks and review the adequacy of the controls and
mitigate them.
? Test the effectiveness of controls, the significant risks and provide recommendations
to improve controls.
? Identify potential areas for improving process efficiency.
? Broadly develop on improvement portfolio and raise the level of awareness of how
business is impacted by inadequately controlled risks inherent in the business process.
Internal audit if our each store is also undertaken by an independent audit firm
on monthly / quarterly basis.
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6.8 WHAT MOTIVATES EMPLOYEES?
The main issue that every manager talks about relating to his employee is, that he might have
better-motivated employees. In Big Bazaar the scenario is different. Here employees are
motivates through various ways and some of the ways are discussed below:
? Feeling “in” on things.
? Good wages.
? Good working Conditions.
? Job security.
? Full appreciation of work that is done.
? Tactful discipline.
? Employer loyalty to employees.
? Interesting work.
? Promotion and growth in the organization.
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6.9 MEASUREMENT OF CUSTOMER SATISFACTION
We gave devised a model called CEM – Customer Experience Management Model to
measure customer satisfaction in our stores. The Customer Experience Model focuses on the
customer?s experience at every touch point in the store ranging from their first experience at
the store, to their experience at the trial rooms, toilers, with our staff through various
processes such as billing and exchanges. We have hired a research agency called MACRO –
Market Analysis and Consumer Research Organization.
This agency sends people who are called „Mystery Shoppers? to visit the stores and then their
experience is documented on a feedback form, which is then sent to us. Based on the
feedback formed analysis is done and the stores are given scores. This allows us to track
performance on customer expectation at overall, format and store levels, determine critical
improvement areas are all levels and also identity opportunities that we can leverages upon.
Besides, we have also started an in-house initiative called „Pragati? whereby one person from
the head office operations team visits the stores and observes the stores with respect to
certain pre-parameters likes store exteriors, baggage window, customer service, store
ambience etc. This activity is done on a quarterly basis and three best stores under each
format are announced. This encourages the store to improve their performance.
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BIG BAZAAR
(VASHI)
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7 About BIG BAZAAR (Raghuleela Mall / VASHI)
As you could see BIG BAZAAR has 3 LEVELS, each Level consists of variety of products, in
order to provide the customer with the best Shopping Experience and Convenience in shopping
their products. It has been designed in such a manner, that each Level has its specialty; some
examples are given as under:
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LEVEL 1:-
? Garments Bazaar.
? Women formal wear Bazaar.
? Men?s formal wear Bazaar.
? Men?s Informal wear Bazaar.
? Undergarments Bazaar.
? Accessories Bazaar.
? Mobile Bazaar etc.
LEVEL 2: -
? Footwear Bazaar.
? Electronic Bazaar.
? Stationary Bazaar.
? Toys Bazaar.
? Furniture Bazaar.
? Gadgets Bazaar etc.
LEVEL 3: -
? Grocery Bazaar.
? Food Bazaar.
? Vegetable Bazaar.
? Wine Bazaar.
? Snacks Bazaar.
? Utensils Bazaar.
? Crockery Bazaar.
? Household Bazaar.
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? Drinks Bazaar.
? Sweets Bazaar etc.
In Short, Big Bazaar has been bifurcated in such a manner that it provides the Best of the Family
Shopping Experience.
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CONCLUSION
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8. BIG BAZAAR
1. Variety : Big Bazaar offers a wide variety of products of different prices and different
qualities satisfying most of its customers.
2. Quality: Providing quality at low prices and having different types of products for different
income customers is another advantage.
3. Price: As noted the prices and offers in Big Bazaar have been one of the main attractions and
reasons for its popularity. The price ranges and the products offered are very satisfying to the
customers
4. Location: The location of Big Bazaar has been mainly in the heart of the city or in the out
skirts giving a chance to both the City and the people living outside the city to shop.
5. Advertisements: Big bazaar has endorsed very popular figure like M S Dhoni and other
famous personalities which has attracted a lot of customers. This has resulted in increase of sale
and the outdoor advertising techniques have also helped Big Bazaar.
6. Middle class appeal: Considering the fact that there are a lot middle class families in
India, Big bazaar has had a huge impact on the middle class section of India, the prices, quality
and sales strategy has helped in getting the middle income groups getting attracted towards Big
Bazaar.
7. Attractive sales: Big bazaar has been known for its great sale and great offers. Big bazaar
has had long lines of people waiting to get into the store for the sale.
Therefore, the sales that Big Bazaar has had has increased sales in a huge way due to the sales
and offers, thus this has been one of the main advantages of Big Bazaar.
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63
QUESTIONNAIRE
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9. QUESTIONNAIRE
1. Should Big Bazaar slow down?
2. Should they focus on the company and let a few retail opportunities go by?
3. Is Promotion, the only way to promote sales volume?
4. How important is Promotion as compare to Quality?
5. Is Big Bazaar ready for Future Competition in Retail Market?
6. Is Big Bazaar capable of Handling a large Population such as India in the near future?
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BIBLIOGRAPHY
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1. Books:-
Marketing : - Philip Kotler.
Human Resource Management: - Kale - Vipul Prakashan.
2. WEBSITE:-
www.google.com
www.yahoo.com
doc_444064134.doc