big bazaar project

1. INTRODUCTION
An increasing number of people in India are turning to the services sector for
employment due to the relative low compensation offered by the traditional agriculture and
manufacturing sectors. The organized retail market is growing at 35 percent annually while
growth of unorganized retail sector is pegged at 6 percent.
The Indian retail market, which is the fifth largest retail destination globally, was
ranked second after Vietnam as the most attractive emerging market for investment in the
retail sector. India has topped the A.T. Kearney‘s annual Global Retail Development Index
(GRDI) for the third consecutive year, maintaining its position as the most attractive market
for retail investment.
Retail consists of the sale of goods or merchandise from a fixed location, such as a
department store, boutique or 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
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 individual, 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-customer (b2c) transactions and maul order, is
forms of non-shop retailing.
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2. Retail Sector
The retail sector in India is witnessing a huge revamping exercise as traditional
markets make way for new formats such as departmental stores, hypermarkets, supermarkets
and specialty stores. Western-style malls have begun appearing in metros and second-rung
cities alike introducing the Indian consumer to a shopping experience like never before. The
sector is at an inflexion point where the growth of organised retailing and growth in the
consumption by the Indian population is going to take a higher growth trajectory. The Indian
population is witnessing a significant change in its demographics. Organised retail is on all-
time high in India. The growth is boosted by various factors such as availability of
professional practices, media proliferation, various brands which are gaining value thereby
enhancing industry growth, availability of various funding options, regulations like VAT
implementation to make processes simple, sea change in demographics of country and
international exposure.
Retailing consists of the location sale of goods or merchandise from a very fixed
location, such as a department store, boutique or kiosk, or by mail, in small or individual lots
direct consumption by the purchaser. Retailing may include subordinated services, such as
delivery. Retail is usually classified by type of products as follows:
 Food products
 Hard goods – appliances, electronics, furniture, sporting goods, etc.
 Soft goods- clothing, apparel, and other fabrics.
There are the following retailers by marketing strategy:
Departmental stores- very large stores offering a huge assortment of soft and hard
goods.
Discount stores- tend to offer a wide array of products and services, but they compete
mainly on price offers extensive assortment of merchandise at affordable and cut-rate
prices.
Supermarkets- Is a self-service store consisting mainly of grocery and limited
products on non-food items. Sells mostly food products.
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3. Warehouse stores- warehouses that offer low-cost, often high- quantity goods piled on
pallets or steel shelves, warehouse clubs charge a membership fee.
Variety stores- they offer extremely low-cost goods, with limited selection.
Speciality stores- A typical speciality store gives attention to a particular category and
provides high level of service to the customers. For example, if a customer visits a
Reebok or Gap store then they find just Reebok and Gap products in the
representative stores.
General stores- A rural store that supplies the main needs for the local community.
Convenience stores- Is essentially found in residential areas. They provide limited
amount of merchandise at more than average prices with a speedy checkout. This
store is ideal for the emergency and immediate purchases.
Hypermarkets- provides variety and huge volumes of exclusive merchandise at low
margins. The operating cost is comparatively less than other retail formats. A classic
example is Metro in Bangalore.
Malls- range of retail shops at a single outlet.
Vending machines- automated piece of equipment where customers can drop money
into the machine and get the products. For example-soft drink vending at Bangalore
International Airport.
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4. Retail pricing
The pricing technique used by most retailers is cost-plus pricing. This involves
adding a mark-up amount (or percentage) to the retailer's cost. Another common
technique is suggested. This simply involves charging the amount suggested by the
manufacturer and usually printed on the product by the manufacturer. In Western
countries, retail prices are often called psychological prices or odd prices. Often prices are
fixed and displayed on signs or labels. Alternatively, when prices are not clearly
displayed, there can be price discrimination, where the sale price is dependent upon
which the customer is. For example, a customer may have to pay more if the seller
determines that he or she is willing and/or able to. Another example would be the practice
of discounting for youths, students, or senior citizens.
A. Transfer mechanism
There are several ways in which consumers can receive goods from a retailer:
 Counter service, where goods are out of reach of buyers and must be obtained from
the seller. This type of retail is common for small expensive items (e.g. jewellery) and
controlled items like medicine and liquor. It was common before the 1900s in the
United States and is more common in certain countries like India.
 Delivery, where goods are shipped directly to consumer's homes or workplaces. Mail
order from a printed catalogue was invented in 1744 and was common in the late 19th
and early 20th centuries. Ordering by telephone is now common, either from a
catalogue, newspaper, television advertisement or a local restaurant menu, for
immediate service (especially for pizza delivery). Direct marketing,
including telemarketing and television shopping channels, are also used to generate
telephone orders. Started gaining significant market share in developed countries in
the 2000s.
 Door-to-door sales, where the salesperson sometimes travels with the goods for sale.
 Self-service, where goods may be handled and examined prior to purchase.
Some shops sell second-hand goods. In the case of a non-profit shop, the public
donates goods to the shop to be sold. In give-away shops goods can be taken for free.
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5. Another form is the pawnshop, in which goods sold are used as collateral for
loans. There are also "consignment" shops, which are where a person can place an item in
a store and if it sells, the person gives the shop owner a percentage of the sale price. The
advantage of selling an item this way is that the established shop gives the item exposure
to more potential buyers.
Automatic approval is not allowed for foreign investment in retail due to lack of
trained work force, low skill level for retailing management, lack of Retailing Courses
and study options intrinsic complexity of retailing – rapid price changes, constant threat
of product obsolescence and low margins
B. Sales techniques:
Behind the scenes at retail, there is another factor at work. Corporations and
independent store owners alike are always trying to get the edge on their competitors.
One way to do this is to hire a merchandising solutions company to design custom store
displays that will attract more customers in a certain demographic. The nation's largest
retailers spend millions every year on in-store marketing programs that correspond to
seasonal and promotional changes. As products change, so will a retail landscape.
Retailers can also use facing techniques to create the look of a perfectly stocked store,
even when it is not.
A destination store is one that customers will initiate a trip specifically to visit,
sometimes over a large area. These stores are often used to "anchor" a shopping mall or
plaza, generating foot traffic, which is capitalized upon by smaller retailers.
C. Customer service:
Customer service is the "sum of acts and elements that allow consumers to receive
what they need or desire from your retail establishment." It is important for a sales
associate to greet the customer and make himself available to help the customer find
whatever he needs. When a customer enters the store, it is important that the sales
associate does everything in his power to make the customer feel welcomed, important,
and make sure he leave the store satisfied. Giving the customer full, undivided attention
and helping him find what he is looking for will contribute to the customer's satisfaction.
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6. Global Retail Sector
The latter half of the 20th Century, in both Europe and North America, has seen the
emergence of the supermarket as the dominant grocery retail form. The reasons why
supermarkets have come to dominate food retailing are not hard to find. The search for
convenience in food shopping and consumption, coupled to car ownership, led to the birth of
the supermarket. As incomes rose and shoppers sought both convenience and new tastes and
stimulation, supermarkets were able to expand the products offered. The invention of the bar
code allowed a store to manage thousands of items and their prices and led to 'just-in-time'
store replenishment and the ability to carry tens of thousands of individual items. Computer-
operated depots and logistical systems integrated store replenishment with consumer demand
in a single electronic system. The superstore was born. On the Global Retail Stage, little has
remained the same over the last decade. One of the few similarities with today is that Wal-
Mart was ranked the top retailer in the world then and it still holds that distinction. Other than
Wal-Mart‘s dominance, there‘s little about today‘s environment that looks like the mid-
1990s. The global economy has changed, consumer demand has shifted, and retailers‘
operating systems today are infused with far more technology than was the case six years
ago. The global retail industry has travelled a long way from a small beginning to an industry
where the world wide retail sale alone is valued at $ 7 trillion. The top 200 retailers alone
account for 30% of worldwide demand. Retail sales being generally driven by people‘s
ability (disposable income) and willingness (consumer confidence) to buy, compliments the
fact that the money spent on household consumption worldwide increased 68% between 1980
and 2003. The leader has in-disputably been the USA where some two-thirds or $ 6.6 trillion
out of the $ 10 trillion American economy is consumer spending. About 40% of that ($ 3
trillions) is spending on discretionary products and services. Retail turnover in the EU is
approximately Euros 2000 billion and the sector average growth looks to be following an
upward pattern. The Asian economies (excluding Japan) are expected to grow at
6%consistently till 2005-06. Positive forces at work in retail consumer markets today include
high rates of personal expenditures, low interest rates, low unemployment and very low
inflation. Negative factors that hold retail sales back involve weakening consumer
confidence.
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7. World’s Top 15 Retailers- Source: http://worldb2blink.com/worldtop100retailers.htm
No. Retailer Base Type Sales in U.S. Region Regional
$millions Station
1 Wal-Mart Stores, lnc USA Discount Store 163,532.00 N.America Global
2 Carrefour Group FRA Hypermarkets 52,196.10 Europe Global
3 The Kroger Co USA Supermarkets 45,352.00 N.America Single
Country
4 MetroAG GER Diversified 44,163.37 Europe Global
5 The Home Depot, lnc USA Hardlines 38,434.00 N.America Global
6 Albertson's, lnc USA Supermarkets 37,478.00 N.America Single
Country
7 ITM Entreprises SA FRA Supermarkets 36,762.45 Europe Regional
8 Sears, Roebuck and USA Dept Store 36,728.00 N.America Regional
Co
9 Kmart Corporation USA Discount Store 35,925.00 N.America Single
Country
10 Target Corporation USA Discount Store 33,702.00 N.America Single
Country
11 JC Penney USA Dept Store 31,503.50 N.America Global
12 Royal Ahold NET Supermarkets 31,222.15 Europe Global
13 Safeway Inc USA Supermarkets 30,801.80 N.America Regional
14 Rewe-Gruppe GER Supermarkets 30,567.69 Europe Regional
15 Tesco plc UK Supermarkets 30,404.40 Europe Global
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8. Percentage of Organized Retail across the world:
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9. INDIAN RETAIL SECTOR:
India is being seen as a potential goldmine for retail investors from over the world and
latest research has rated India as the top destination for retailers for an attractive emerging
retail market. India‘s vast middle class and its almost untapped retail industry are key
attractions for global retail giants wanting to enter newer markets. Even though India has well
over 5 million retail outlets, the country sorely lacks anything that can resemble a retailing
industry in the modern sense of the term. This presents international retailing specialists with
a great opportunity. The organized retail sector is expected to grow stronger than GDP
growth in the next five years driven by changing lifestyles, burgeoning income and
favourable demographic outline.
Evolution of Indian retail Industry:
Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take
place. The inception of the retail industry dates back to times where retail stores were found
in the village fairs, Melas or in the weekly markets. These stores were highly unorganized.
The maturity of the retail sector took place with the establishment of retail stores in the
locality for convenience. With the government intervention the retail industry in India took a
new shape. Outlets for Public Distribution System, Cooperative stores and Khadi stores were
set up. These retail Stores demanded low investments for its establishment.
The retail industry in India gathered a new dimension with the setting up of the
different International Brand Outlets, Hyper or Super markets, shopping malls and
departmental stores.
Growth of retail sector in India:
Retail and real estate are the two booming sectors of India in the present times. And if
industry experts are to be believed, the prospects of both the sectors are mutually dependent
on each other. Retail, one of India‘s largest industries, has presently emerged as one of the
most dynamic and fast paced industries of our times with several players entering the market.
Accounting for over 10 per cent of the country‘s GDP and around eight per cent of the
employment retailing in India is gradually inching its way toward becoming the next boom
industry.
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10. As the contemporary retail sector in India is reflected in sprawling shopping centres,
multiplex- malls and huge complexes offer shopping, entertainment and food all under one
roof, the concept of shopping has altered in terms of format and consumer buying behaviour,
ushering in a revolution in shopping in India.
This has also contributed to large-scale investments in the real estate sector with
major national and global players investing in developing the infrastructure and construction
of the retailing business. The trends that are driving the growth of the retail sector in India
are-
 Low share of organized retailing.
 Falling real estate prices.
 Increase in disposable income and customer aspiration.
 Increase in expenditure for luxury items.
Key Players in the Indian Retail Sector:
The untapped scope of retailing has attracted superstores like Wal-Mart into India,
leaving behind the kiranas that served us for years. Such companies are basically IT based.
The other important participants in the Indian Retail sector are Bata, Big Bazaar, Pantaloons,
Archies, Cafe Coffee Day, landmark, Khadims, Crossword, to name a few.
Retailing in India-a forecast:
Future of organized retail in India looks bright. According to recent researches it is
projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will capture
a share of 10% of the total retailing by the end of 2010.
According to the Union Minister of Commerce & Industry, Shri Kamal Nath, the
organized retail sector is expected to grow to a value of Rs. 2,00,000 crore (US$45 billion)
and may generate 10 to15 million jobs in next 5 years. This can happen in two forms- 2.5
million of these people may be associated directly with retailing and the rest 10 million
people may be gainfully employed in related sectors that will be pulled up through the strong
forward and backward linkage effects. However to compete in this sector one needs to have
up-to-date market information for planing and decision making. The second most important
requirement is to manage costs widely in order to earn at least normal profits in face of stiff
competition.
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11. Predicted Mall Distribution Space in India
35
30
25
20
15
10
5
0
Delhi & NCR Mumbai Hyderabad Pune Bangalore Tier II cities
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12. CHALLENGES AND OPPORTUNITIES:
Retailing has seen such a transformation over the past decade that its very definition
has undergone a sea change. No longer can a manufacturer rely on sales to take place by
ensuring mere availability of his product. Today, retailing is about so much more than mere
merchandising. It‘s about casting customers in a story, reflecting their desires and aspirations,
and forging long-lasting relationships. As the Indian consumer evolves they expect more and
more at each and every time when they steps into a store. Retail today has changed from
selling a product or a service to selling a hope, an aspiration and above all an experience that
a consumer would like to repeat. For manufacturers and service providers the emerging
opportunities in urban markets seem to lie in capturing and delivering better value to the
customers through retail.
For instance, in Chennai CavinKare‘s LimeLite, Marico‘s Kaya Skin Clinic and
Apollo Hospitals Apollo Pharmacies are examples, to name a few, where
manufacturers/service providers combine their own manufactured products and services with
those of others to generate value hitherto unknown. The last mile connect seems to be
increasingly lively and experiential. Also, manufacturers and service providers face an
exploding rural market yet only marginally tapped due to difficulties in rural retailing. Only
innovative concepts and models may survive the test of time and investments. However,
manufacturers and service providers will also increasingly face a host of specialist retailers,
who are characterized by use of modern management techniques, backed with seemingly
unlimited financial resources. Organized retail appears inevitable. For retail industry in India;
things have never looked better and brighter. Challenges to the manufacturers and service
providers would abound when market power shifts to organized
The retail sector has played a phenomenal role throughout the world in increasing
productivity of consumer goods and services. It is also the second largest industry in US in
terms of numbers of employees and establishments. There is no denying the fact that most of
the developed economies are very much relying on their retail sector as a locomotive of
growth. The India retail industry is the largest among all the industries, accounting for over
10 per cent of the country‘s GDP and around 8 per cent of the employment. The retail
industry in India has come forth as one of the most dynamic and fast paced industries with
several players entering the market. But all of them have not yet tasted success because of the
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13. heavy initial investments that are required to break even with other companies and compete
with them. The Indian retail industry is gradually inching its way towards becoming the next
boom industry.
INDIA’S TOP 15 RETAILERS:
1. The Raymond Shop - The Legacy continues
2. Big Bazaar - Adding big values
3. Evok - Value for home décor
4. Lifestyle - Styling your life
5. Wills Lifestyle - The fashion solution provider
6. Siyaram‘s - Draping men in style
7. Bata India - Understanding feet‘s needs
8. Hypercity - Rich shopping experience
9. Reebok - Stay fit with style
10. Max - Maximum value
11. Hidesign - Beauty in leather
12. Nakshatra - Exuding universal appeal
13. Diya - Jewellery for every occasion
14. McDonald‘s - Burger King: Serving millions
15. Gili world - Fulfilling diamond dream.
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14. PANTALOON RETAIL (INDIA)
Pantaloon Retail (India) Limited, is India‘s leading retailer
that operates multiple retail formats in both the value and lifestyle
segment of the Indian consumer market. Headquartered in
Mumbai (Bombay), the company operates over 16 million square
feet of retail space, has over 1000 stores across 73 cities in India
and employs over 30,000 people.
The company‘s leading formats include Pantaloons, a chain of fashion outlets, Big
Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the
look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience
and quality and Central, a chain of seamless destination malls. Some of its other formats
include Brand Factory, Blue Sky, all Top 10 and Star and Sitara. The company also operates
an online portal, futurebazaar.com.
FUTURE GROUP:
―Future‖ – the word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet
unwritten; create new opportunities and new successes. To strive for a glorious future brings
to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.
In Future Group they will not wait for the Future to unfold itself but create future
scenarios in the consumer space and facilitate consumption because consumption is
development. They will effect socio-economic development for the customers, employees,
shareholders, associates and partners.
Future group is one of the country‘s leading business groups present in retail, asset
management, consumer finance, insurance, retail media, retail spaces and logistics. The
group‘s flagship company, pantaloon Retail (India) Limited operates over 7 million square
feet of retail space, has over 1000 stores of its leading retail formats include, Pantaloon, Big
Bazaar, Central, Food Bazaar, Home Town, Ozone, Depot, future Money and online retail
format, futurebazaar.com.
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15. Future group includes, Future Capital Holding, Future Generally India Indus league
clothing and Galaxy Entertainment that manages sports Bar, Brew Bar and Bowling Co.
Future Capital Holding, the group ‗s financial arm, focuses on asset management and
consumer credit. It manages assets worth over $1 billion that are being invested in developing
retail real estate and consumer-related brands and hotels.
The group‘s joint venture partners include Italian insurance major, generally. French
retailer ETAM group. US-based stationery products retailers, Staples Inc. and UK-based Lee
Cooper and India-based Talwalkar‘s, Blue Foods and Liberty Shoes.
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16. FUTURE VALUE RETAIL
Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India)
Limited. This entity has been created keeping in mind the growth and the current size of the
company‘s value retail business, led by its format divisions, Big Bazaar and Food Bazaar.
The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other
formats, in over 70 cities across the country, covering an operational retail space of over 6
million square feet. As a focused entity driving the growth of the group's value retail
business, Future Value Retail Limited will continue to deliver more value to its customers,
supply partners, stakeholders and communities across the country and shape the growth of
modern retail in India.
BIG BAZAAR
Big Bazaar is not just another hypermarket. It caters to every need of your family.
Where Big Bazaar scores over other stores is its value for money proposition for the Indian
customers.
Kishore Biyani led the company‘s foray into organized retail with the opening up of
the Big Bazaar in the year 2001.
It is a unit of Pantaloon Retail
(India) Ltd and caters to the Great
Indian Middle Class. It was started as
a hypermarket format head quartered
in Jogeshwari, Mumbai with approx.
50,000 sqft of space. Its values and
missions are to be the best in Value
Retailing by providing the cheapest
prices and hence go the tag-line
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, offer weekend discounts and works on the same economy model as Wal-
Mart and has considerable success in many Indian cities and small towns.
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17. It currently operates out of more than 150 stores and top 25 stores register a
cumulative footfall of 30 lakh a month on an average.
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.
Also, 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. First Food Bazaar
format was added as Shop-In-Shop within Big Bazaar in the year 2002.Big Bazaar and Food
Bazaar blend the look, feel and touch of Indian Bazaar with modern retail concepts of choice,
convenience and quality. And this is just the beginning. Big Bazaar plans to add much more
to complete your shopping experience.
At Big Bazaar, you will definitely get the best products at the best prices - that‘s 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 your shopping experience.
AFFILIATE COMPANIES:
Home Solutions Retail (India) Limited
Home Solutions Retail (India) Limited (HSRIL) offers complete retailing solutions
for all products and services related to home building and home improvement. The key
product categories are Consumer Durable & Electronics (CDE), Furniture, Home furnishing
& decor, Home improvement and Home services. HSRIL operates retail format Collection-i,
Furniture Bazaar, Electronics Bazaar, Home Town and e-zone.
Future Brands Limited
Future Brands Limited (FBL) has been incorporated on November, 2006 and is
involved in the business of creating, developing, managing, acquiring and dealing in
consumer-related brands and IPRs (Intellectual Property Rights).
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18. Future Media (India) Limited
Future Media (India) Limited (FMIL) was incorporated as the Group‘s media
venture, aimed at creation of media properties in the ambience of consumption and thus
offers active engagement to brands and consumers. FMIL offers relevant engagement through
its media properties like Visual Spaces, Print, Radio, Television and Activation.
Future Supply Chain Solutions Limited
Future Supply Chain Solutions Limited (FSCS) has been incorporated as a separate
entity and is involved in the business of providing logistics, transportation and warehousing
services for all group companies and third-parties.
Future Axiom Telecom Limited
Future Axiom Telecom Limited is a Joint Venture with Axiom Telecom LLC, UAE.
The Company has a 50% stake in Future Axiom Telecom Limited (FATL) which is a joint
venture Company with Axiom Telecom LLC, UAE. The Company would be engaged in
sourcing and wholesale distribution of mobile handsets, accessories and in setting up service
centres for mobile handsets in India.
Pantaloon Food Product (India) Limited
Pantaloon Food Product (India) Limited (PFPIL) was incorporated with the object of
sourcing and backward integration of food business of the Company. PFPIL has sourcing and
distribution bases at all key cities across the country.
Future Knowledge Services Limited
Future Knowledge Services Limited (FKSL) was incorporated on January, 2007 and
is engaged in the business of business process outsourcing and knowledge process
outsourcing.
Future Capital Holdings Limited
Future Capital Holdings Limited (FCH) was formed to manage the financial services
business of Pantaloon Retail (India) Limited and other group entities. FCH is one of the
fastest growing financial services company in India, with presence in Asset Advisory, Retail
Financial Services and Proprietary Research.
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19. Future Generali India Insurance Company Limited
Future Generali India Insurance Company Limited (FGIICL) was incorporated on
October 30, 2006 to undertake and carry on the business of general insurance. The approval
for carrying on General Insurance Business has been received from the Insurance Regulatory
and Development Authority of India (IRDA) on September 4, 2007.
Future Generali India Life Insurance Company Limited
Future Generali India Life Insurance Company Limited (FGILICL) was incorporated
on October 30, 2006 to establish and conduct the business of life insurance in India, which
comprises of whole life insurance, endowment insurance, double benefit and multiple
benefits insurance etc. The approval for carrying on Life Insurance Business has been
received from the IRDA in September, 2007.
Futurebazaar India Limited
Futurebazaar India Limited (FBIL) is set up as the e-Retailing arm of the Future
Group for providing on-line shopping experience. Futurebazaar.com was launched on
January 2, 2007, and has emerged as one of the most popular online shopping portals in
India. It was awarded with the ―Best Indian Website‖ award, in the shopping category, by the
PC World Indian Website Awards.
Staples Future Office Products Private Limited
Staples Future Office Products Private Limited (SFOPPL) was incorporated on
January, 2007 and is involved in the business of dealing in all kinds of office supplies, office
equipments and products. SFOPPL is a joint venture between the Company and Staples Asia
Investment Limited (a subsidiary of Staples Inc USA). The company‘s first retail outlet
opened in Bangalore in December, 2007.
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20. Group Vision
Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer
in the most profitable manner.
Group Mission
 We share the vision and belief that our customers and stakeholders shall be served
only by creating and executing future scenarios in the consumption space leading to
economic development.
 We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments – for classes and for masses.
 We shall infuse Indian brands with confidence and renewed ambition.
 We shall be efficient, cost- conscious and committed to quality in whatever we do.
 We shall ensure that our positive attitude, sincerity, humility and united determination
shall be the driving force to make us successful.
Core Values
 Indianness: confidence in ourselves.
 Leadership: to be a leader, both in thought and business.
 Respect & Humility: to respect every individual and be humble in our conduct.
 Introspection: leading to purposeful thinking.
 Openness: to be open and receptive to new ideas, knowledge and information.
 Valuing and Nurturing Relationships: to build long term relationships.
 Simplicity & Positivity: Simplicity and positivity in our thought, business and action.
 Adaptability: to be flexible and adaptable, to meet challenges.
 Flow: to respect and understand the universal laws of nature.
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21. Major Milestones
2011
 April 2011 – KB‘s Fairprice celebrates opening its 200 stores in India
 May 2011 – Future Supply Chains becomes ISO certified
2010
 Future Group launches its telecom brand T24 in partnership with Tata Teleservices to
provide additional loyalty benefits to its customers.
 Future Group launches products in key FMCG categories through Sach, a brand co-
created with Sachin Tendulkar.
 Future Group connects over 4000 small and medium Indian manufacturers and
entrepreneurs with consumers.
2009
 Future Group celebrates its first Shopping Festival across all retail formats in key
Indian cities.
 Future Innoversity starts its campuses in Ahmedabad, Bangalore and Kolkata to offer
degree programs through a tie-up with IGNOU.
 Future Group partners with Hong Kong-based Li & Fung Group to strengthen its
supply chain and logistics network across the country.
2008
 Future Capital Holdings becomes the second group company to make a successful
Initial Public Offering (IPO) in the Indian capital market.
 Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the
hypermarket format anywhere in the world.
 Total operational retail space crosses the 10 million square feet mark.
 Future Group acquires rural retail chain Aadhar from the Godrej Group, which has a
presence in 65 rural locations.
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22. 2007
 Future Group crosses the $1 billion turnover mark.
 Specialized companies in retail media, logistics, IPR and brand development and
retail-led technology services become operational.
 Pantaloon Retail wins the International Retailer of the Year award at US-based
National Retail Federation convention in New York, and Emerging Retailer of the
Year award at the World Retail Congress held in Barcelona.
 Online portal Futurebazaar.com becomes India‘s most popular shopping portal.
2006
 Future Capital Holdings, the group‘s financial arm, is formed to manage over $1.5
billion in real estate, private equity and retail infrastructure funds.
 Home Town, the home building and improvement products retail chain, is launched
along with consumer durables format Ezone and furniture chain Furniture Bazaar.
 Future Group enters into joint venture agreements to launch insurance products with
Italian insurance major Generali.
 Future Group forms joint ventures with US office stationery retailer Staples.
2005
 Future Group moves beyond retail and acquires a stake in Galaxy Entertainment,
Indus League Clothing and Planet Retail.
 Future Group sets up Kshitij, India‘s first real estate investment fund, to build a chain
of shopping malls
2004
 Future Group launches India‘s first seamless mall, Central, in Bangalore.
2002
 Food Bazaar, the supermarket chain is launched.
2001
 Future Group launches three Big Bazaar stores within a span of 22 days in Kolkata,
Bangalore and Hyderabad.
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23. 1997
 Future Group enters modern retail with the launch of the first 8000-sq. ft. store
Pantaloons in Kolkata.
1995
 Future Group launches John Miller, a brand for Formal shirts.
1994
 The Pantaloon Shoppe, Future Group‘s exclusive menswear store in a franchisee
format is launched across the nation. The company starts distribution of branded
garments through multi-brand retail outlets across the nation
1992
 Pantaloon Retail India Ltd makes an Initial public offer (IPO).
1991
 BARE, an Indian denim brand is launched.
1987
 The company is incorporated under the name of Manz Wear Private Limited.
 Pantaloons, one of India‘s first formal trouser brands,is launched.
Exhibit 2: Growth Story of Big Bazaar
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24. ABOUT BIG BAZAAR BANASHANKARI
It was started in the year 24th June 2005. It has four main product and service profile
namely apparels, general merchandise, food bazaar and other. It has a product portfolio of
around 5000 and a sales force of 350 employees. This store is a value format based and
pricing strategy is mainly psychological. It has a promotional strategy mainly based on
discounts bigger than any other competitor in the industry. It has customer service such as
home delivery, free gift wrapping, free alteration desk, exchange counter, sitting umbrellas,
drinking water, big parking area, trial and rest rooms, lifts, baggage counters etc…..
Some of the promotions strategies include in the store are Wednesday Bazaar,
Monthly Savings Bazaar, Pehli Tarik etc. Wednesday Bazaar is the day in the week in which
the price of all products will be less than any other day. In this day, there will be lots of offers
and this will create in the minds of the customers an awareness to grab their most liking
products at a cheaper rate. Every first ten days in a month there is a monthly savings bazaar
where the prices will be less. This is to attract the customers as soon as they get their salaries.
It has a promotional strategy mainly based on discounts bigger than any other competitor in
the industry.
The head of the organization is store manager. There are eight assistant store
managers. Department managers and asst. dept. managers count to 18 in numbers. There is
one HR manager and asst. HR manger. The main departments are cash, administration, visual
merchandising, logistics, facilities, customer service desk and HR department.
The Next following chart shows the four main product and service profile namely
apparels, general merchandise, food bazaar and other.
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25. RVIM Page 25

26. RVIM Page 26

27. UNDER GROUND FLOOR
This floor is only for the parking of two and four wheelers. It has the capacity of 100
to 120 cars parking space at a time. The customer can come after shopping directly to the
parking lobby by lift or by stairs.
GROUND FLOOR
This floor comprises of products like PUC (Plastics, Utensil, and Crockery), FOOD
BAZAAR (Food, Non food, Staples, Fruits & Vegetables, and Wellness), and counters like,
10 Cash counters and 3 Express cash counters, T24counter, Home delivery counter,
Exchanges counter, baggage counter and logistics are available .
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28. 1ST FLOOR
This floor comprises of products like Apparels for (Men, Ladies, and Kids), General
merchandise (Toys, Footwear, and Sports goods), SIS (Navras gold jewelry) CSD (customer
service desk), free gift wrapping and free alteration desk.
2ND FLOOR
In this floor products like Electronics, Furniture, Luggage and Home Fashion (bed
sheets, blankets) are exhibited.
3RD FLOOR
In this floor service like Star & Sitara Saloon, Food Court and F123 (Fun World) are
offered.
4TH FLOOR
This floor is only to the employees of the big bazaar which includes functional
department like HR, Marketing, IT, meeting rooms, staff room, training room and locker
facility to the employees of the store.
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29. ORGANISATIONAL STRUCTURE
Organizational structure allows the expressed allocation of responsibilities for
different functions and processes to different entities such as the branch, department,
workgroup and individual.
Organizational structure affects organizational action in two big ways. First, it
provides the foundation on which standard operating procedures and routines rest. Second, it
determines which individuals get to participate in which decision-making processes, and thus
to what extent their views shape the organization‘s actions.
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30. 7P Analysis of Big Bazaar
7P Marketing Mix is more useful for services industries and knowledge intensive
industries. Successful marketing depends on number of key issues. The seven keys issues are
explained as: -
1. Product: Big Bazaar offers a wide range of products which range from apparels, food,
farm products, furniture, child care, toys, etc of various brands like Levis, Allen Solly,
Pepsi, Coca- Cola, HUL, ITC, P&G, LG, Samsung, Nokia, HP etc. Big Bazaar also
promotes a number of in house brands like: DJ & C ,Tasty Treat, Clean Mate, Sensei,
Care Mate, Koryo and 44 other brands.
2. Pricing: The pricing objective at Big Bazaar is to get ―Maximum Market Share‖.
Pricing at Big Bazaar is based on the following techniques:
 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 also used to
attract customers. Big Bazaar also caters on Special Event Pricing (Close to
Diwali, Gudi Padva, and Durga Pooja).
 Differentiated Pricing: Differentiated 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.e.g. Wednesday
Bazaar
 Bundling: It refers to selling combo-packs and offering discount to customers.
The combo-packs add value to customer and lead to increased sales. Big
Bazaar lays a lot of importance on bundling.e.g. 3 Good Day family packs at
Rs 60(Price of 1 pack = Rs 22);5kg oil + 5kg rice + 5kg sugar for Rs 599.
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31. 3. Place: The Big Bazaar stores are operational across three formats — hypermarkets
spread over 40,000-45,000 sq ft, the Express format over 15,000-20,000 sq ft and the
Super Centres set up over 1 lakh sq ft. Currently Big Bazaar operates in over 34 cities
and towns across India with 116 stores. Apart from the Metros these stores are also
doing well in the tier II cities. These stores are normally located in high traffic areas.
Big Bazaar aims at starting stores in developing areas to take an early advantage
before the real estate value booms. Mr. Biyani is planning to invest around Rs 350
crore over the next one year expansion of Big Bazaar. In order to gain a competitive
advantage Big Bazaar has also launched a website www.futurebazaar.com, which
helps customers to orders products online which will be delivered to their doorstep.
This helps in saving a lot of time of its customers.
4. Promotion: The various promotion schemes used at Big Bazaar include:
 ―Saal ke sabse saste 3 din‖
 Hafte ka sabse sasta din ―Wednesday bazaar‖
 Exchange Offers ―Junk swap offer‖
 Future card(3% discount)
 Shakti card
 Advertisement (print ad, TV ad, radio)
 Brand endorsement by M.S Dhoni and Asin
 Big Bazaar has come up with 3 catchy lines written on hoardings taking on biggies
like Westside, Shoppers stop and Lifestyle. They are:
 ―Keep West- a Side. Make a smart choice!‖
 ―Shoppers! Stop. Make a smart choice!‖
 ―Change your Lifestyle. Make a smart choice!‖
5. People: Well trained staff at stores to help people with their purchases. Employ close
to 10,000 people and employ around 500 more per month. Well-dressed staff
improves the overall appearance of store. Use scenario planning as a tool for quick
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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32. 6. Process: Big Bazaar places a lot of importance on the process right from the purchase
to the delivery of goods. When customers enter the stores they can add the products
they which to purchase in their trolley from the racks. There are multiple counters
where bill can be generated for purchases made. Big Bazaar also provides delivery of
products over purchases of Rs. 1000.
7. Physical Evidence: Products in Big Bazaar are properly stacked in appropriate racks.
There are different departments in the store which display similar kind of products.
Throughout the store there are boards/written displays put up which help in
identifying the location of a product. Moreover boards are put up above the products
which give information about the products, its price and offers. Big Bazaar stores are
normally ‗U shaped‘ and well planned & designed
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33. 6 Days Maha Savings Offer
This 6 Din Mahabachat sale is
valid at all the Big Bazaar Stores in India
and is applicable on electronics, clothing,
accessories, food, cosmetics,
kitchenware, mobile phones, LCD TVs, etc. This is also the part of their previous offers
namely Sabse Saste offers and the most important sale days for Big Bazaar,
this Independence Day Offer, in terms of sales compared with the whole year. The gates will
be open from 9 a.m. onwards during this exclusive sale period. This offer is valid on Food
Bazaar, Furniture Bazaar, Electronics Bazaar, Fashion, etc, at all Big Bazaar in India .
Buying Tip
 This offer at Big Bazaar varies from store to store as well as from city to another city,
so it is important for the consumer to check the same at the nearest Big Bazaar store
to get the offer details individually from each stores.
 Spend wisely on such sales and find only on genuine offers and go for it as all offers
are not worthy to go for. It is essential think twice before spending on the same!
 Never indulge in impulsive shopping lured by these offers as most of them are
available even after the offer period but some won't as well! So use this offer period
to save and not over spend!
Big Bazaar Mahabachat offer for this year, 2011, ―Mehengai ka ek hi jawab chalo‖
Big Bazaar MahaBachat good offers that are ongoing with the Mahabachat or 6 Days
Maha Savings offer at Big Bazaar. Although some offers are exclusively available only at the
store while some are applicable for both the store and online at their website. Big Bazaar
presents a five day ‗Mahabachat‘ shopping mela from August 10th to 15th August. There are
huge, discounts. In addition to that, there will be discount for food products, fabrics,
furniture‘s and home appliances. Future Bazaar is the online venture of the Future Group,
owner of India‘s largest retail brands Big Bazaar, Pantaloons, and Central and E zone. Future
Bazaar sells a wide range of products like Fashion including Men‘s apparel, Women‘s
apparel, Mobiles, Mobile accessories, Electronics like LCD TVs, Flat TVs, DVD
players, Home Theatres, iPods, MP3 players, MP4 players, Digital Cameras, Video Cameras,
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34. Music systems, Home appliances, Kitchen Appliances, Dream line Kitchen ware, Hindi
movies, English movies, DVDs, VCD, Gold jewellery, Diamond jewellery, Fiction Books,
Non-Fiction Books, Car Accessories. With the rise in commodity prices every day, ´Maha
Bachat´ with its heavy discounts across various product categories promises to be the 'perfect
answer to inflation', enabling maximum savings for the Indian consumer .'Maha Bachat'
which started off in 2006 as a single day campaign has been getting bigger and better with
every year. True to its commitment of offering BIG savings every year, Big Bazaar´s ´6 Days
Maha Bachat´ will have an exciting array of attractive offers and discounts.
From daily household needs of food and grocery to apparel, footwear, toys, luggage,
kitchenware, bed and bath ware, home decor, furniture, electronics, fine gold jewellery and
more; 'Maha Bachat' will ensure there is something for everyone in the family, to shop for
and thereby enjoy maximum savings. 'Maha Bachat' includes all major sub-formats such as
Food Bazaar, Furniture Bazaar, Electronic Bazaar and Home Bazaar, ensuring something for
each and everyone in the family, to shop for, and a maximum 'value for money' occasion for
the entire family.
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35. BOARD OF DIRECTORS
 Mr. Kishore Biyani, Managing Director
Kishore Biyani is the Managing Director of
Pantaloon Retail (India) Limited and the Group Chief
Executive Officer of Future Group. He has led Pantaloon
Retail‘s emergence as the India‘s leading retailer operating
multiple retail formats that now cater to almost the
consumption basket of a large section of Indian consumers.
Kishore Biyani was born in August, 1961 and is
married to Sangita and they have two daughters. He recently authored a book, ‗It
Happened in India‘ that captures his entrepreneurial journey and the growth of
modern retailing in India.
 Mr. Gopikishan Biyani, Director
 Mr. Rakesh Biyani, Wholetime Director
 Mr. Vijay Biyani, Wholetime Director
 Mr. Kailash Bhatia, Wholetime Director
 Mr. Vijay Kumar Chopra, Independent Director
 Mr. Shailesh Haribhakti, Independent Director
 Mr. S Doreswamy, Independent Director
 Dr. D O Koshy, Independent Director
 Ms. Bala Deshpande, Independent Director
 Mr. Anil Harish, Independent Director
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36. ACHIEVEMENTS AND AWARDS
 2011 Golden Spoon Awards 2011
 2010 Images Fashion Awards 2010
 Coca-Cola Golden Spoon Awards 2010
 CNBC Awaaz Consumer Awards 2009
 Images Fashion Forum 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
 2007 Images Retail Awards
 National Retail Federation, New York
 World Retail Congress, Barcelona
 Hewitt Best Employers 2007
 PC World Indian Website Awards
 Reader’s Digest Trusted Brands Platinum Awards
 2006 Retail Asia Pacific Top 500 Awards, Singapore
 Asiamoney Awards
 Ernst & Young Entrepreneur of the Year Award
 CNBC Indian Business Leaders Awards
 Lakshmipat Singhania – IIM Lucknow National Leadership Awards
 CNBC Awaaz Consumer Awards
 Images Retail Awards
 Reader’s Digest Awards
 Reid & Taylor Awards for Retail Excellence
 2005 Images Retail Awards 2004
 Voted by Business Today magazine as one of the
 DAKS London
 2004 Images Retail Awards 2004
 Reid & Taylor and DLF Awards
 2003 Indian Express Award
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37. FUTURE PLANS
Kishore Biyani-led Pantaloon Retail India Ltd (PRIL) will hive-off its value
segments--Big Bazaar and Food Bazaar-- into a separate company called Future Value Retail
from January 1st.
Future Value Retail Limited is looking to set up a new format of standalone stores
only for fruits and vegetables. The company is enhancing the focus on fresh fruits and
vegetables as a category. Fruits and vegetables is a profitable category and promises up to
10% margin after taking into account wastages and supply chain losses. Currently, fruits and
vegetables are sold at about 160 Food Bazaar outlets located across India. Within the Food
Bazaar outlets, fruits and vegetables currently contribute about 3 to 4% to the total revenues.
The company is working on strengthening its supply chain and increasing direct sourcing
from farmers going ahead. The company is setting up consolidation and collection centres to
cater to a set of outlets. The size of Food Bazaar outlets ranges from 8,000 sq.ft. to 15,000
sq.ft. and the company is looking at dedicating an area of 1,000-2,000 square feet only for
fruits and vegetables within the store.
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38. DEPARTMENTAL STUDY
There are mainly seven functional departments which are shown in the following chat.
Human
Resource
Administ Finance
ration
Departments
Customer
Service Marketin
g
Desk
Sales Logistics
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39. Human Resource Department:
The Department
consists of one HR manager,
one Assistant HR manager,
two HR Executive and a Team
Members. In this department
the Team Members may be the
supporting staffs, which in
total complete the work of the
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. They have continuous developmental
programs for all the employees. Currently Big Bazaar Banashankari is employing
350employees. 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 11.30 in the afternoon and leave at the time of Store closing (10pm).
1. Sources of Recruitment: The following are the main sources through which Big
Bazaar recruits its employees.
a) Consultancy Services: For top level management, employees are recruited
through private consultants. They are usually appointed as Departmental
Managers.
b) Walk-ins: This is the main source through which Big Bazaar recruits its
employees. People seeking job usually themselves approach the HR
department for job vacancy. Employees usually selected from this source are
appointed at the entry level as team members.
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40. c) Employee Referrals: This is the other main source through which employees
are selected. Candidates who have given their previous employer as referrals
are first interviewed and from their previous employer, opinion is taken about
their behaviour and performance in the job. If they receive a positive opinion
from their previous employer they are selected.
d) 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.
2. Selection Procedure: The following is the selection procedure that the HR
department practices to hire its employees.
a) Interview: For entry level jobs, the candidates are interviewed 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 also given a written aptitude
test. Finally a formal interview will be conducted to assess the overall skills of
the student.
3. Induction: New employees selected will be given a 13 day 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 of
the employee. If the employee‘s performance is good and encouraging, the
employee‘s services will be confirmed.
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41. 4. Compensation & Rewards: The employees are rewarded suitably with attractive pay
packages. The salary of an employee includes basic pay. HRA, special allowance, PF,
ESI, Med claim 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 wills 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 at Big Bazaar at a
special discount of 20-30 %.
5. 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 employees 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. Performance Appraisal: The HR department conducts performance appraisal of all
the employees annually in the month of April. Based on 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 & Development: Future group has its own training
division for all its employees, known as Future Learning & Development Limited
(FLDL). All the employees are given training for20 days 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 improving customer service etc
to make them more knowledgeable and productive.
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42. Finance Department
The department consists of
one Finance manager, one
Assistant Finance manager, four
Department Finance Heads who
also play role of team Leaders
and there are 26 cashiers in the
store who are working in two
shifts.
Finance is the life blood of
any business. The Finance
department of Big Bazaar,
Banashankari performs a few basic functions, such as preparing the Store Income and
Expenditure Statement giving full particulars of all items. It also prepares the budget for
expenditure at various levels on different items. This department is also responsible for
deciding and giving the weekly, monthly and yearly sales targets and the margins for all the
departments separately. The Finance department is also responsible for collecting and
depositing the cash received in the company‘s bank account daily.
The big bazaar Banashankari annual turnover for last year was 74 + crores. The
following graph shows the percentage contribution sales of the particular product and service.
45 40
c 40
35
r 30
o 25 19
r 20 16
15
e 10
8
5 4 5
s 5 2 1
0
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43. Marketing Department
The department
consists of one Marketing
manager, one Assistant
Marketing manager, one
Marketing Executive for each
floor and supported by Team
Leaders and a Team
Members.
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 customers. This maintaining good relationship with the
customers is the key to business success and hence the 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 Rupees. Relationship marketing is based on the idea that
people prefer to do business with people who they know and like. After all, it's easier to buy
from a friend, than from someone you've never heard of before. It's a matter of building trust.
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,
newspapers, banners, placards etc. The marketing department has to decide and identify the
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44. 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 to its
customers. The colour, 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 colour. 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 perfection within the
specific segments.
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45. Logistics Department
The department
consists of one Department
manager for Logistics, one
Assistant departmental
manager, two Executive and
Team Members. In this
department the Team Members
may be the supporting staffs,
who assist in all the activities
of the department.
Logistics is a very
important department of Big
Bazaar. It is responsible for procuring the stock of all the products of the different
departments. The logistics department receives the goods from the warehouse.
The Warehouse of Big Bazaar for the entire South zone is located at Hosakote,
Karnataka. The logistics department receives the stock of different goods and verifies the
quantity and quality of the goods with the particulars given in the Goods Received
Statement which it receives along with the stock.
Then it checks for any damage in the stock received. If there is no damage in the
stock, after recording it in the Stock Inward Register dispatches the goods to there specie
department taking the signature of the Departmental Manager .On the other hand if there is a
damage in the goods or if the goods do not match the details given in the Goods Received
Statement, it enters in the Stock Outward Register and sends it back to the warehouse along
with a Goods Returned Note giving full information regarding the reason for returning back
the goods and the defect or damage in the goods.
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46. The logistics department receives two truckloads of stock every day. It is the
respective departmental Managers who place an order to the Zonal head office
through e-mail for stock of goods when they feel that the stock has to be
replenished. The logistics department works in complete coordination with all the other
departments to ensure that the stocks are received and maintained properly
continuously for the smooth functioning of Big Bazaar and avoid any inconvenience
to the customers.
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47. Sales Department
The department consists
of one Sales manager, one
Assistant sales manager, five
sales Executive, Team Leaders
and a Team Members. In this
department the Team Members
are the Sales staffs, who deal
whit all selling activities.
This department is
responsible for the collection of
sales amount i.e., cash sales.
There are in all 25 cash counters in the Store. There is a Head Cashier to whom all the cahiers
report and submit the total sales amount collected throughout the day by the cashiers. In
addition to cash all leading credit and debit cards are accepted at
no extra charge. Also Big Bazaar vouchers and Sodexho coupons are also accepted.
A cashier at the time of opening his billing counter will be given an opening balance
of Rs.1000. The cashier has to ensure that all the offers applicable on respective
products are given to the customer in his/ her bill. Also if any free items are given on
some purchases, it should be informed to the customer clearly.
After the billing is done, the cashier has to pack the products neatly in a plastic cover
according to the customers needs. At the time of closing the billing counter, the cashier has to
give a statement of cash, with all particulars of different denominations of cash, amount
collected through credit cards, amount collected in debit cards, amount collected in Sodexho
coupons & Big Bazaar vouchers and also amount collected through Credit Notes.
Wednesday Bazaar is a very important and popular event in Big Bazaar. Every
Wednesday fabulous offers and great discounts are given on most of the products.
Customers arrive in large numbers as they realize that it is on Wednesday that
products are offered at the lowest prices.
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48. On Saturday and Sunday also the customer turnout is high, as it is on the weekends
that most of the customers find time for shopping. They arrive along with their
family to enjoy the shopping experience. Good discounts and offers are also
provided to attract more number of customers. Retailing is not just about selling
products it is about selling an idea. Why do people in shop when they are bored or
depressed? It is not just because they have the money to buy, but because they want
to go through an experience. It is very crucial in retailing to make customers relate
to every product that is being sold, as well as the Stores environment.
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49. Administration Department
The department
consists of one Store manager
(SM), one Assistant Store
manager (ASM), IT Manager,
five department managers, five
Assistant department
managers, Team leaders and
Team Members. In this
department the Team
Members may be the
maintenance, housekeeping,
security which in total
completes the work of the
department.
The Store administration comes under the Store Manager. Its functions are store
maintenance, housekeeping, security etc.
The store maintenance is concerned with the proper running of the store in co-
ordination with all the departments. It also has to ensure proper back up power
supply in times of power cuts. The Housekeeping is concerned with keeping all the
departments of the Store clean and neat all the time. Covers and other wastes
should be properly cleaned and the floor is swept regularly to keep it clean. The Security
section is concerned with the security of the entire store. Security
department keeps a vigilant check on all the people entering and departing at the
various entry and exit points in the store.
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50. They also maintain all the registers like employee‘s attendance register, stock
register, and visitors register etc. They check all customers bill before letting them out
of the store. They ensure orderliness in the store and prevent shrinkage or pilferage of goods
to minimize the loss arising out of it. The housekeeping and security are outside agencies
employed by the store on a contract basis to take care of the respective functions. The
Administration department also has a separate section known as Information
Technology. This department is responsible for the maintenance of all the systems
of the Store; all billing machines their functioning networking with the master
machine etc. If there is any problem with the machine in any department in the
store, then this department comes into function. This dept integrates all the systems
in the store and properly maintains all of them.
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51. Customer Service Desk
The department
consists of one Customer
service manager, Team leaders
and a Team Members. In this
department the Team
Members are the supporting
staffs, which in total complete
the work of the department.
The customer service desk is for the helping the customer at every need. It provides
facilities like free home
delivery, free gift wrapping,
free alteration, exchange
counter, customer help line,
announcement and customer
help desk.
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52. Strengths
 Everyday low prices, which attracts customers. The Big Bazaar Outlets sell a variety
of products at prices which is lower than the market price. Almost every product has
some kind of discount in Big Bazaar.
 High brand equity is enjoyed by big bazaar because it showcases 20,000 products at
one place. It offers most exclusive brands under all the categories.
 Biggest value retail chain in India. Big Bazaar is definitely the number one retailer in
India. It has built an emotional as well as cordial relationship with its customers. It is
also intending to build long term relationship with all its stakeholders which is very
essential for a successful business venture.
 It offers a family shopping experience, where entire family can visit together.
Ambience of Big Bazaar is not like the hypermarket in West, which follows liner
layout. It is not only providing good parking ,AC ambience to create a ― no hassle‖
shopping experience but also designed in such a way that it provides a traditional
bazaar like environment, where the Indians feel comfortable.
 It also has facilities such as online booking and delivery of goods. It is basically
retailing through Internet & web based technologies.
 Highly dedicated, responsive & young management team. It is found that more than
60% of employees are of the age group of 20-35. From this it reveals that company is
having a young and energetic workforce who are very creative, enthusiastic and also
very determined to grow in their career and in turn helping the company to grow.
 Almost all big bazaar outlets are Located in the city. Customers are delighted with the
location of Big Bazaar as it is located in the city.
 Utilization of latest technology retailing through Internet & web based technologies.
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53.  Huge display area both outside and inside the store. Big Bazaar displays all their
grocery and all other product that customer can touch and feel the quality. They also
offer self service.
 Well designed Infrastructure which helps in easy navigation for the customers as well
as staff. They have a huge flooring area in an average of 30,000 square feet.
 Product diversity, There are more then 20000 thousand type of products in the store.
Big Bazaar offers the maximum variety for each category of products.
 Free services like home delivery, gift wrapping and alteration are provided by the
store. The home delivery service is provided with in the range of 5KM.
 Healthy and positive relationship between employees and managers. The employees
of the company are satisfied with their job profile which in turn increases efficiency
of the company.
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54. Weakness:
 General perception: ‗Low price = Low quality‘. In general Big Bazaar is positioned as
a low priced and good quality store. But it is only the low price which has clicked
with the customers i.e. the consumer regards Big Bazaar as a store for reasonable
price and not good quality.
 Overcrowded during offers (Big 6 Days). During Big 6 days it was noticed that
customers were waiting in queue. These queues deter many customers to make a
purchase, even worse enter into the store.
 Long lines at billing counters which are time consuming. During the
peak hours (weekends & evenings) the customers face problems due to less billing
counters.
 Limited only to value offering low price products. A number of branded products are
still missing from Big Bazaar‘s line of products. E.g. Jockey, Van heusen,
 Store is unable to meet the growing consumer demand. The demand for stores like big
bazaar is growing day by day and stores are not fully meeting their needs.
 No Seating arrangements are made for customers as well as for employees. Some of
the elderly customers were facing problem after the shopping to take some rest.
 Employees‘ knowledge about the product is not satisfactory. They do not have
complete knowledge about the products and the promotional offers running in the
store.
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55. Opportunity
 A lot of scope is there in the organized Indian retail business. The unorganized retail
sector in India is 97% were as organized is only 3%. There is a lot of scope in future
for organized sector.
 Increasing mall culture in India. More people these days prefer to visit big stores
where they can find large variety of products under one roof.
 II tier cities will open up new world of opportunities.
 The company recognizes the tremendous potential in the food industry is seeking to
venture into rice & other food grain products.
 Global Expansion: There are the some untapped, developing and under developing
countries were it can enter.
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56. Threats
 Competition from other value retail chains such as Shoprite, Reliance (Fresh and
trends), Hyper city and D mart.
 Unorganized retail also appears to be a threat to Big Bazaar‘s business. A large
population still prefers to visit local convenient stores for daily purchases
 Changing Government policies. Every year the government policies are changed and
the companies should frame the policies matching with government policies.
 Large Foreign Competitors like Wal-Mart are entering to the Indian retail market.
 Burgeoning real estate prices which leads to high rentals. Some of the stores are
owned by the company but for some store they need to pay rent and because of the
growing real estate prices it may leads to high rental.
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57. Findings
 Big Bazaar is undoubtedly the number one retailer in India. It has built a very
emotional and cordial relationship with its customers. It is also very intending to build
long term relationship with all its stakeholders which are very essential for a
successful business venture.
 It is observed that the organization hierarchy is professional as all the departmental
Managers directly report to the Store Manager who in turn reports to the Zonal Head.
 There exist a healthy and positive relationship between employees and managers.
 It is found that more than 60% of employees are of the age group of 20-35. From this
it reveals that company is having young and energetic workforce who are very
creative, enthusiastic and also very determined to grow in their career and in turn
helping the company to grow.
 Customers were not happy with the long queues at the billing counter.
 Most of them are satisfied with the price, variety and promotional offers.
 Print ads is the most successful medium of advertising offers and discounts for big
bazaar, at the store displays also play an important role.
 It was noticed that stocks were disappearing very quickly but replenishments were
not done at timely manner and because of this a lot of customers were going back
without making any purchase.
 Big Bazaar has definitely succeeded in keeping up its image of a value for money
store, as its price has been rated positively.
 The promotions are not hitting the target. Although Big Bazaar has been promoting
their offers, most of the customers are introduced to these only at the store.
 Today customers look beyond price, such as quality, employee behavior, store
atmosphere etc. Big Bazaar has scope for improvement in these yields.
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58. SUGGESTIONS
 During the peak hours (weekends & evenings) the customers face problems due to
less billing counters and less number of employees to attend to them, hence increase
in the number of billing counters and salesperson during peak hours is recommended.
 Employees should be trained well and they should have complete knowledge about
the products and the promotional offers running in the store.
 Big Bazaar has been successful in keeping up its promise of providing value for
money goods, but today customers look beyond price, such as quality, employee
behavior, store atmosphere etc. Big Bazaar has scope for improvement in these yields.
 More hoardings could be placed that could bring awareness to people.
 Seating arrangements must be made for customers as well as for employees.
 Care to be taken to maintain proper inventory levels and the varieties and offer the
customer what is needed rather than offering what is available.
 Aggressive expansive plans in II tier cities will open up new world of opportunities
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59. CONCLUSION
The customer needs are increasing day-by-day because of increase in there purchasing
power they need new and innovative products. The modern hyper market format has truly
changed and taken up the expectation of Indian customer to a new level.
In recent years the mall culture is increased in India because of its unique shopping
experience. Today customer as a wide range of choice at one roof and only because of the
hyper market and big bazaar is one among the leading hyper market in the country. Big
bazaar concentrates on all level of the customers.
Big Bazaar has been successful in keeping up its promise of providing value for
money, but today customers look beyond price, such as quality, employee behaviour, store
atmosphere etc. Big Bazaar has scope for improvement in these yields.
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