30504508 Consumer Behavior of Retail Sector Big Bazar Future Group

8/2/2019 30504508 Consumer Behavior of Retail Sector Big Bazar Future Group

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CONSUMER BEHAVIOUR

A report submitted to Delhi Business School, New Delhi

as a part fulfillment of Full time industry integrated

MBA + Post Graduate Program in Entrepreneurship &

Business.

Submitted to: Dr. Submitted

By:Devendra Pathak Name of Student: Sonam

Srivastava

Director Academics,

Roll No. : 86

Delhi Business

School, Batch:Spring batch(07-

New Delhi. 09)

University: DelhiBusinessSchool(PTU)

Delhi Business SchoolB-II/58, M.C.I.E., Mathura Road, New Delhi

Website : www.dbs.edu.in


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ACKNOWLEDGEMENT

I would like to acknowledge and extend my heartfelt

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

Our Dean,DR.Devendra Pathak,for his encouragement

and support.

Dr.Ravi Prakash,my project mentor , for hisunderstanding and assistance, assisting in the

collection of the topics for the project.

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

reminders and much needed motivation and for thehelp and inspiration she extended.

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

supportive and helped me in anyway.

The staff at BigBazaar turned to be very helpful inproviding me the informations about the company and it

operations.

And to God , who made all things possible.

Sonam Srivastava


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DECLARATION BY STUDENT

I hereby declare that the mentioned information in theproject is correct up to my knowledge and I bear theresponsibility for the correctness of the mentioned

particulars.

SONAM SRIVASTAVA


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TABLE OF CONTENTS

Contents Pages

1. Introduction 8

2. Objective of Research Study 10

2.1. Market analysis .10

3. Research Methodology 11

3.1. Source of data 11

3.1. a. Survey method 11

3.1. b. Cross sectional survey.11

3.2. Sample size .11

3.3. Time taken ..113.4. Tools and Techniques of analysis.12

4. Literature Studies ....15

4.1. Company profile 15

4.2. Diagram .17

4.3. About us 18

4.3. a. Group vision .18

4.3. b. Group mission .18

4.3. c. Core values 19

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

4.5. Big bazaar promises 21

4.6. Portfolio management 24


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4.7. Product line .26

4.8. Marketing strategy .27

4.8. a. Segmentation .27

4.8. b. Targeting ..284.8. c. Positioning ...29

4.8. d. Marketing mix .31

4.8. e. Retail mix ..35

4.8. f. Promotion mix 36

4.9. Distribution of revenue earner .44

4.10. Competitors .46

4.11. Major problems ..594.12. Future prospects 51

5. Work assigned by the company .54

5.1. Business objective 54

5.2. Operating the scheme 54

5.3. Working .55

5.3. 1. To know consumer

Behavior..55

5.3. 2. To get the right positioning

Done..58

5.3. 3. To maintain stock on floor..59

5.3. 4. Update the prices . .59

5.3. 5. Discount criterion . .59

5.3. 6. Inventory control 595.3. 7. Work on barcode tender ..61

6. Survey62

6.1. Survey analysis62

6.2. Trend analysis..68


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6.3. Conjoint analysis.69

7. General survey and consumer behavior

analysis for pack of two 79

8. Conclusion ..92

9. Bibliography ..93

10. Annexure . 94


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. INTRODUCTION.

RETAIL INDUSTRY

In the Indian retailing industry, food is the most dominatingsector and is growing at a rate of 9% annually. India retail

industry is progressing well and for this to continueretailers as well as the Indian government will have tomake a combined effort. The branded food industry is

trying to enter the India retail industry and convert Indian

consumers to branded food. Since at present 60% of theIndian grocery basket consists of non- branded items.India retail industry is expanding itself most aggressively;

as a result a great demand for real estate is being created.Indian retailers preferred means of expansion is to expand

to other regions and to increase the number of their outletsin a city. It is expected that by 2010, India may have 600

new shopping centers.

The Indian retail market, which is the fifth largest retaildestination globally, according to industry estimates is

estimated to grow from the US$ 330 billion in 2007 to US$427 billion by 2010 and US$ 637 billion by 2015.

Simultaneously, modern retail is likely to increase its sharein the total retail market to 22 per cent by 2010.

Continuing the robust growth of the organized retail in

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


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India retail industry is the largest industry in India, with anemployment of around 8% and contributing to over 10% ofthe country's GDP. Retail industry in India is expected to

rise 25% yearly being driven by strong income growth,

changing lifestyles, and favorable demographic patterns.

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

India."

One of the biggest retail here in India we know is KishoreBiyanis big bazaar. The company ended 2007-08 with

Rs5048crore in revenue. Biyani's and Big Bazaar's, marchcomes at a time when several new retailers are slowing

expansion, reducing the number of outlets, effectinglayoffs, even exiting the business.

By 2011, he claims, there will be 300 Big Bazaars, andPantaloon Retail (India) Ltd, his flagship, will have revenueof Rs13000crore.

Thus here we will know about the company profile,

operations and also about the consumer behavior towards

the schemes, discount, etc which are offered by the storeto facilitate customers.


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. OBJECTIVE OF RESEARCH STUDY2

.1. MARKET ANALYSIS

The research objectives of this project are:-

a. Marketing activities and operational activities are always

driven with an aim of getting sale increased with innovate ideas.Offers are designed in such a manner that customers are madeto go and experience the shopping.

Marketing also gives some offer to increase the bill size, takingin consideration the on going fashion in vogue.

b. Marketing Strategies targeting the customer:Advertising Strategy Understanding the media consumption

habits of the customer.


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. RESEARCH METHODOLOGY

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.1. SOURCE OF DATAa. SURVEY METHOD

Data are usually collected through the use of

questionnaires. The data is collected by mean of simplesurvey done in the retail store of the customers.

b. CROSS-SECTIONAL SURVEYS

Cross-sectional surveys are used to gather information on a

population at a single point in time.

The customers were surveyed to find out their consumptionbehavior for the products in various schemes.

A different cross-sectional survey questionnaire might try to

determine the relationship between two factors, like

religiousness of parents and views on Internet filtering.

3.2. SAMPLE SIZE

A sample size of 90 was considered in this project. That is, atotal number of respondents were 90 for survey.

3.3. TIME TAKENThe time of research was 1 month and surveys of some

people were done daily. The research was based on

the change in consumption of customers for theproducts in scheme.


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.4. TOOLS AND TECHNIQUES OF ANALYSIS

a. PERSONAL INTERVIEW

Personal interviews are highly susceptible to inadvertentsignaling to the respondent. The cumulative effect of

several facial expressions is likely to be felt. By the use ofthis method the facial expressions tell about how a

customer feels about the product, and his knowledgeabout the product in the scheme.

This will let us know following:-

The reason could be known that why a product is1.not liked and what are shortcomings in the

product?The preference for the product of the customer?2.Who are the frequent customers?3.

b. PROJECTIVE TECHNIQUES

Projective techniques are used when a consumer may feel

embarrassed to admit to certain opinions, feelings, orpreferences. It has been found that in such cases, people

will tend to respond more openly about someone else.Thus, we may ask them to explain reasons why others not

buying the product, or why other customers are not willingto take advantage of the scheme, or what changes they

want should be there for their convenience.

c. OBSERVATION OF CONSUMER

Observation of customers is often a powerful tool. Lookingat how consumers select products may yield insights into


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how they make decisions and what they look for.Observing consumers, tells about:-

1. What is he looking in the product?

2. Is he brand loyal?3. Is he more or less price sensitive?Is he more interested in packaging,4.

manufacturing, etc.Whether his taste has shifted?5.

Observation may help us determine how much timeconsumers spend comparing prices, or whether nutritional

labels are being consulted.

d. SCANNER DATA

Many consumers are members of supermarket clubs.

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

products.

Nearly all retailers in the area usually cooperate. It is nowpossible to track what the consumer bought in all stores

and to have a historical record.

The consumers shopping record is usually combinedwith:-

Demographic information (e.g., income, educational1.level of adults in the household, occupations ofadults, ages of children, and whether the family owns

and rents).


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2. The consumption quantity could be know aboutthe product which is used in good quantity?

e. PHYSIOLOGICAL MEASURESPhysiological measures are occasionally used to examine

consumer response. It helps to know:-

Advertisers may want to measure a consumers level of

arousal during various parts of an advertisement?

In retail stores paging is done at a interval of time of

schemes and discounts so that people are made aware

and they can be provoked to buy.


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4. LITERATURE STUDIES

4.1. COMPANY PROFILE

Pantaloon Retail (India) Limited, is Indias leading retailer that

operates multiple retail formats in both the value and lifestylesegment of the Indian consumer market. Headquartered in

Mumbai (Bombay), the company operates over 10 millionsquare feet of retail space, has over 1000 stores across 61

cities in India and employs over 30,000 people.

The companys leading formats include Pantaloons, a chain offashion outlets, Big Bazaar, a uniquely Indian hypermarketchain, Food Bazaar, a supermarket chain, blends the look,

touch and feel of Indian bazaars with aspects of modern retaillike choice, convenience and quality and Central, a chain of

seamless destination malls. Some of its other formats include,

Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station,all, Top 10, m bazaars and Star and Sitara. The company alsooperates an online portal, futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited,

operates Home Town, a large-format home solutions store,Collection i, selling home furniture products and E-Zonefocused on catering to the consumer electronics segment.

Pantaloon Retail was recently awarded the International

Retailer of the Year 2007 by the US-based National RetailFederation (NRF) and the Emerging Market Retailer of the Year

2007 at the World Retail Congress held in Barcelona.


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Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumptionspace.

Future Group is one of the countrys leading business groups present in retail, asset management, consumer finance,insurance, retail media, retail spaces and logistics. The groups

flagship company, Pantaloon Retail (India) Limited operatesover 10 million square feet of retail space, has over 1,000

stores and employs over 30,000 people.

Future Group is present in 61 cities and 65 rural locations inIndia. Some of its leading retail formats include, Pantaloons, Big

Bazaar, Central, Food Bazaar, Home Town, eZone, Depot,Future Money and online retail format, futurebazaar.com.

Future Group companies includes, Future Capital Holdings,Future Generally India Indus League Clothing and Galaxy

Entertainment that manages Sports Bar, Brew Bar and Bowling

Co. Future Capital Holdings, the groups financial arm, focuseson asset management and consumer credit. It manages assetsworth over $1 billion that are being invested in developing retail

real estate and consumer-related brands and hotels.

The groups joint venture partners include Italian insurancemajor, Generali, French retailer ETAM group, US-basedstationary products retailer, Staples Inc and UK-based Lee

Cooper and India-based Talwalkars, Blue Foods and LibertyShoes.


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4.2. PANTALOON RETAIL INDIA LTD.


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FOOD

BAZAA

R

CENTRA

L

PANTAL

OON

FASHIONBIGSTATIONBAZAAR

E-ZONE


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4.3. ABOUT US

4.3. a. GROUP VISION:

Future Group shall deliver Everything, Everywhere,Every time for Every Indian Consumer in the most

profitable manner.

4.3. b. GROUP MISSION:

We share the vision and belief that our customers andstakeholders shall be served only by creating and

executing future scenarios in the consumption spaceleading to economic development.

We will be the trendsetters in evolving delivery formats,creating retail realty, making consumption affordable forall 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 toquality in whatever we do.

We shall ensure that our positive attitude, sincerity,humility and united determination shall be the driving

force to make us successful.

4.3.c. CORE VALUES:

Indianness: confidence in ourselves.

Leadership: to be a leader, both in thought and business.

Respect & Humility: to respect every individual and be

humble in our conduct.


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Introspection: leading to purposeful thinking.

Openness: to be open and receptive to new ideas,knowledge and information.

Valuing and Nurturing Relationships: to build long termrelationships.

Simplicity & Positivity: Simplicity and positivity in ourthought, business and action.

Adaptability: to be flexible and adaptable, to meetchallenges.

Flow: to respect and understand the universal laws ofnature.


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4.4.

INTRODUCTION TO BIG BAZAAR

a. It is a chain of shopping malls in India currently with 31 outletowned by Kishore Biyanis Pantaloon Group.

b. Big bazaar is not just another hypermarket, but also providesthe best products at the best price.

c. It Reflect the look and feel of Indian bazaars at their modernoutlets. All over India, Big Bazaar attracts a few thousand

customers on any regular day.

d. Big Bazaar is a chain of department stores in India ,currently with 92 stores. It is owned by the Pantaloon RetailIndia Ltd , Future Group. It has considerable success in many

Indian cities and small towns.

e. A department store is a retail establishment whichspecializes in selling a wide range of products without a single

predominant merchandise line . Department stores usually

sells products including apparel , furniture , appliances ,electronics , and additionally select other lines of products suchas paint , hardware , toiletries, cosmetics , photographic

equipment, jewelery , toys , and sporting goods .

The idea was pioneered by entrepreneur Kishore Biyani, the

CEO of Future Group. Currently Big Bazaar stores are locatedonly in India. It is the biggest and the fastest growing chain ofdepartment store and aims to have 150 outlets by June 2009

and 350 stores by the end of year 2010.


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The Big Bazaar promise4 .5.

a. MANUFACTURERS WARRANTIES ON ALL

PRODUCTS:

Big Bazaar promises to sell only the original products fromthe authorized dealers; so that all applicable products

carry the original manufacturers warranty. To serviceany product purchased at Big Bazaar, customer can

visit the authorized service centre of the manufacturer.The invoice accompanying the product is the warrantydocument.

b. GUARANTEED DELIVERY:

Big Bazaar guarantees to deliver the exact product that has

selected, without defects. In case of receiving a differentproduct, or if the product is damaged in transit, the customer

should contact it within the stipulated time period and BigBazaar will ensure that it is replaced or refunded.

c. SECURE PAYMENT:

It commits to ensure that no payment misuse happens, so

we work with banks and payment gateways to ensure thatyour information is protected. Payments are protected

both by it and by the policies of customers bank, and the

chances of fraud in these channels are actually very low.Big Bazaar openly publishes its office addresses and is

part of Indias largest retail company with a presence allover India so you know how to contact us in person, if

required.


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d. OUR SIMPLE 15-DAY RETURN POLICY:

If customer has purchased something at Future Bazaar and the

product did not meet its expectations or does not fit to hisneeds, then it can return the product to us; no questions asked,

as long as it is in its original packaging and accompanied by itsinvoice. We will even make the return process simple for you

just contact our customer support and well arrange to pick upthe product from your home. Alternately, you can drop it off at

the nearest Big Bazaar.

e. PROMPT CUSTOMER SUPPORT:

Our customer support is manned by dedicated call centrepersonnel, who can take decisions and resolve your problems.

They are eager to solve your problems and are aware of theprocesses and means to handle them. In case they cannot

solve the problem at their end, they will trigger the required

action on your behalf or advise you the best possible method toa successful fulfillment of all your queries/issues. Be assuredthat when you call us, your call is being taken seriously .


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BIG BAZAAR PROMISES-------

GUARANT

E-ED

DILIVERY

PROMPT15 DAYS

CUSTOME-RETURN

RPOLICY

SUPPORT

BIG

BAZAAR

MANUFAC

T-URERSSECURE

WARRANTPAYMENT

Y


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4.6. PORTFOLIO MANAGEMENT

The Future Group has built a strong portfolio of some of

the fastest growing consumer brands in India. Thisactivity is led through Future Brands India Limited, a

specialized subsidiary company that was set up tocreate and build powerful brands that address the

aspirations of the new Indian consumer.

Some of the key brands in this portfolio include, JohnMiller, Lombard, Bare, DJ&C, Buffalo and RIG in the

fashion and apparel space. Dream line, present in thehome segment, offers a wide range of products inkitchenware, bed & bath linen, and Home Dcor

categories.

In the food and home care segment brands include Tasty

Treat, Premium Harvest, Fresh & Pure, Care Mate andClean Mate.

In consumer durables and electronics space, the

groups brands include Koryo and Sensei.


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S.

M

ADDITIONAL

STORE

MANAGER

DEPARTMENT

MANAGER

SUB- DEPARTMENT MANAGER

TEAM LEADER

TEAM MEMBER


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4.7. PRODUCT LINE

Here, one finds over 170,000 products under one roof that

cater to every need of a family, making Big BazaarIndias favorite shopping destination. Where Big

Bazaar scores over other stores is its value for moneyproposition for the Indian customers. Big Bazaar, one

finds a huge variety of products to select from with agood price and quality. With the ever increasing array

of private labels, it has opened the doors into the worldof fashion and general merchandise including home

furnishings, utensils, crockery, cutlery, sports goods andmuch more at surprisingly low prices.In recent years, Big Bazaar has adopted value pricing

in which they win loyal customers by charging a fairlylow price for a high quality offering. However,

consistent low price for the products is not only theuniversally desired characteristic.


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4.8. MARKETING STRATEGY

PROCESS FOLLOWED

Segmentation, targeting, and positioning togethercomprise a three stage process. We

a. Determine which kinds of customers exist,

b. Select which ones we are best off trying to serve,

c. Implement our segmentation by optimizing our

products/services for that segment and communicatingthat we have made the choice to distinguish ourselves

that way.

4.8. a. SEGMENTATION:

Segmentation involves finding out what kinds of

consumers with different needs exist. In the automarket, for example, some consumers demand speed

and performance, while others are much moreconcerned about roominess and safety. In general, itholds true that You cant be all things to all people,

and experience has demonstrated that firms thatspecialize in meeting the needs of one group of

consumers over another tend to be more profitable.

Several different kinds of variables can be used forsegmentation:-


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1. Demographic variables essentially refer to personal statisticssuch as income, gender, education, location (rural vs. urban,East vs. West), ethnicity, and family size. Campbells soup, for

instance, has found that Western U.S. consumers on the

average prefer spicier soupsthus, you get a different productin the same cans at the East and West coasts. Facing flatsales of guns in the traditional male dominated market, a

manufacturer came out with the Lady Remmington, a morecompact, handier gun more attractive to women. Taking this a

step farther, it is also possible to segment on lifestyle andvalues.2. Some consumers want to be seen as similar to others, while

a different segment wants to stand apart from the crowd.

3 . Another basis for segmentation is behavior. Someconsumers are brand loyali.e. they tend to stick with their

preferred brands even when a competing one is on sale. Someconsumers are heavy users while others are light users. For

example, research conducted by the wine industry shows thatsome 80% of the product is consumed by 20% of the

consumerspresumably a rather intoxicated group.

4. One can also segment on benefits sought, essentially

bypassing demographic explanatory variables. Someconsumers, for example, like scented soap (a segment likely to

be attracted to brands such as Irish Spring), while others prefer

the clean feeling of unscented soap (the Ivory segment).

Some consumers use toothpaste primarily to promote oralhealth, while another segment is more interested in breathe

freshening.

4.8. b. TARGETING:

1. In the next step, we decide to target one or more segments.Our choice should generally depend on several factors:-

First


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How well are existing segments served by othermanufacturers? It will be more difficult to appeal to a segment

that is already well served than to one whose needs are not

currently being served well.

Secondly

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

Thirdly

Do we have strengths as a company that will help us appealparticularly to one group of consumers?

2. Big Bazaar targets higher and upper middle class

customers.

3. The large and growing young working population is a

preferred customer segment.

4. Big Bazaar specifically targets working women andhome makers who are the primary decision makers.

It is part of Big Bazaars new Guerrilla MarketingStrategy.

5. Guerrilla force is divided into small groups thatselectively attack the target at its weak points. Guerilla

marketing is just one of the strategies and surely onecan learn a lot from the ongoing battle, especially

people interested in marketing/marketing techniques.

4.8.c. POSITIONING:


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Positioning involves implementing our targeting. For example,Apple Computer has chosen to position itself as a maker ofuser-friendly computers .


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4.8. d. MARKETING MIX

Main Aspects of Marketing MiX

The easiest way to understand the main aspects of

marketing is through its more famous synonym of "4Ps ofMarketing". The classification of four Ps of marketing

includes marketing strategies of product, price, placementand promotion. The following diagram is helpful in

determining the main ingredients of the four Ps in amarketing mix.

PRODUCT:

In simpler terms, product includes all features and

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

Product is the most important aspect of marketing mix fortwo main reasons. First, for manufacturers, products arethe market expression of the company's productive

capabilities and determine its ability to link with


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consumers. So product policy and strategy are of primeimportance to an enterprise, and product decisions dictatethe scope and direction of company activity. Moreover, the

market indicators such as profits, sales, image, market

share, reputation and stature are also dependent on them.Secondly, it is imperative to realize that the product of anyorganization is both a component and a determinant of the

marketing mix as it has a great influence on the otherelements of the mix: advertising, personal selling,

channels of distribution, physical distribution and pricing.So without proper product policy, a company can not

pursue for further elements of marketing mix.

PRICING:

Pricing is basically setting a specific price for a product or

service offered. In a simplistic to the concept of price asthe amount of money that customers have to pay to obtain

the product. Setting a price is not something simple.Normally it has been taken as a general law that a low

price will attract more customers. It is not a valid argument

as customers do not respond to price alone; they respondto value so a lower price does not necessarily meanexpanded sales if the product is not fulfilling theexpectation of the customers

Generally pricing strategy under marketing mix analysis isdivided into two parts: price determination and price

administration (ibid).

Price determination is referred to as the processes andactivities employed to arrive at a price for a productincluding consideration of relative prices of products within

the same line, and differences in price for similar productsof differing grades and qualities.


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Price administration is referred to as the activities involvedin fitting basic prices to particular sales situations such asgeographic locale, functions performed by customers,

position of distribution channel members, or special sales

situations.

PLACEMENT:

Placement under marketing mix involves all companyactivities that make the product available to the targeted

customer while planning placement strategy undermarketing mix analysis, companies consider six different

channel decisions including choosing between direct

access to customers or involving middlemen, choosingsingle or multiple channels of distributions, the length ofthe distribution channel, the types of intermediaries, the

numbers of distributors, and which intermediary to usebased on the quality and reputation .

PROMOTION:


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Promotional strategies include all means through which acompany communicates the benefits and values of its

products and persuades targeted customers to buy them .

The best way to understand promotion is through the

concept of the marketing communication process.Promotion is the company strategy to cater for themarketing communication process that requires interaction

between two or more people or groups, encompassingsenders, messages, media and receivers

Limitation of Marketing Mix Analysis (4Ps of

Marketing)

Despite the fact that marketing mix analysis is used as asynonym for the 4Ps of Marketing, it is criticised on the

point that it caters seller's view of market analysis not

customers view. To tackle this criticism, attempted tomatch 4 Ps of marketing with 4 Cs of marketing to address

consumer views:

Product Customer Solution

Price Customer CostPlacement Convenience

Promotion Communication


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4.8. e. RETAIL MIX:

Merchandise assortment

The company was looking for a solution that would bring

all of its businesses and processes together. After acomprehensive evaluation of different options and

software companies, the management at Pantaloondecided to go in for SAP.

Some of the qualities of SAP retail solutions are that itsupports product development, which includes ideation,trend analysis, and collaboration with partners in the

supply chain; sourcing and procurement, which involvesworking with manufacturers to fulfil orders according to

strategic merchandising plans and optimise cost, quality,and speedvariables that must be weighted differently as

business needs, buying plans, and market demand

patterns change; managing the supply chain, whichinvolves handling the logistics of moving finished goodsfrom the source into stores and overseeing global tradeand procurement requirements; selling goods across a

variety of channels to customers, which requires marketingand brand management; managing mark-downs and

capturing customer reactions, analysing data, and using itto optimise the next phase of the design process.

2. Place

In the channels of distribution, the physical facilities point

of location.

3. Price

4. Visual merchandising


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Visual merchandising supports:-

a. sales

b. retail strategies

c. communicates with customers

d. communicates image

e. supports retailing trends.

Visual merchandising includes:-

1. Interior merchandising

Sufficient visual merchandizing within the store that

included danglers, signage, standees, distribution ofpamphlets, which gave details of the offer.

Display, point of purchase, fixture, equipment and

furnishings store layout.

Product packaging and labels.

2. Exterior merchandising

TVC on popular entertainment channels like Star Plus,

Sony, Set Max, and Star One.

Road shows carried out by the Big Bazaar staff with

announcements about the offer to make people aware.

Newspaper ads in almost all the local dailies like Sakal,The Times of India, on different days during the periodof the offer.

Store atmosphere.

4.8. f. RETAIL PROMOTION MIX


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1. ADVERTISING:

Advertising is recognized as an indispensable tool of

promotion. It has acquired a lot of significance in thenational and international markets. With the advent ofglobalization and liberalization its imperativeness in the

Indian retail sector has increased as a result ofcompetitions, latest technologies, and the rapidly changing

consumerlifestyles.

a. Objectives of Advertising:

The fundamental objective of advertising is to sellsomething a product, service, or an idea.

The Major Objectives of advertising are:1. To promote a new product.

2. To warn the public against imitation of the retailersproduct.

3. To manage competition in the market.

b. Benefits of Advertisements:

1. Advertisement helps in creating awareness among the

customer about the existence, price, and availability ofproduct.

2. Increases the utility of existing products.3. It educates customer about new product and their

diverse uses.

c. Types of advertising:

1. Informative Advertising:

Purchases of durable products are generally erratic and


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often too expensive to buy, so the retailer spends a hugeamount on informative advertising.

2. Corporate Advertising:

Its main motive is to build a corporate image. CorporateAdvertising builds up retailer image. It increases goodwill

towards the retail organization.

3. Financial Advertising:

It refers to advertisements by various financial institutions.Big Bazaar has also tied up with ICICI bank, which provide

information about the investment opportunities and the

risks and benefits.

4. Classified Advertising:

It refers to messages, which are placed under specific

headings and columns in various magazines andnewspapers.

2. PROMOTION:

Promotion can be loosely classified as "above the line "and "below the line" promotion. The promotional activitiescarried out through mass media like television, radio,

newspaper etc. is above the line promotion. The terms'below-the-line' promotion or communications refers to

forms of non-media communication, even non-mediaadvertising. Below-the-line promotions are becoming

increasingly important within the communications mix ofmany companies, not only those involved in fmcg

products, but also for industrial goods.


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1. BELOW THE LINE SALES PROMOTION

Some of the examples of BTL (below the line) promotionsare by exhibitions, sponsorship activities, public

relations and sales promotions like giving freebies withgoods, trade discounts given to dealers and customers,

reduced price offers on products, giving coupons whichcan be redeemed later etc.

Below the line sales promotions are short-termincentives, largely aimed at consumers. With the

increasing pressure on the marketing team to achieve

communication objectives more efficiently in a limited budget, there has been a need to find out more

effective and cost efficient ways to communicate withthe target markets. This has led to a shift from the

regular media based advertising.

Methods of below the line sales promotion:-

a. Price promotions


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Price promotions are also commonly known as" pricediscounting". These can be done in two ways:-

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

more of the product at the normal price.

2. Price promotions however can also have a negative

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

b. Coupons

Coupons are very versatile, way of offering a discount.

Following are the examples of the use of coupons:--On a pack to encourage repeat purchase

-In coupon books sent out in newspapers allowingcustomers to redeem the coupon at a retailer.

-A cut-out coupon as part of an advert.-On the back of till receipts.


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The key objective with a coupon promotion is to maximizethe redemption rate this is the proportion ofcustomers actually using the coupon. It must be

ensured when a company uses coupons that the

retailers must hold sufficient stock to avoid customerdisappointment. Use of coupon promotions is oftenbest for new products or perhaps to encourage sales of

existing products that are slowing down.

c. Gift with purchase

The "gift with purchase" is a very common promotional

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

d. Competitions and prizes

This is an important tool to increase brand awareness

amongst the target consumer. It can be used to boostup sales for temporary period and ensure usage

amongst first time users.

e. Money refunds

Here, a customer receives a money refund after

submitting a proof of purchase to the manufacturer.Customers often view these schemes with some

suspicion particularly if the method of obtaining arefund looks unusual or onerous.

f. Frequent user / loyalty incentives

Repeat purchases may be stimulated by frequent userincentives.


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g. Point-of-sale displays

A data collection system that electronically receives andstores bar code information derived from a sales

transaction. This could the zip codes for library users,

facilitating the library in determining geographic marketare that users reside in. Most of the big brands arefollowing the suit of BTL promotion because of rising

prices of media based promotion, advertising clutterand increased impulse purchasing.

BTL promotions are gaining popularity among all bigcompanies nowadays considering their effectiveness

because of the "individual customer promotion" at a price, which is much lesser than the normal media

promotions.

Low prices on Wednesday Low prices on Wednesday Concept of Big Day Concept of Big Day

Promotional offers1. School Jao Khushi Khushi

2. Khushi Ki Barsaat3. Happy Fathers Day

E.g.Big Bazaar's `junk' swap offer

Big Bazaar is launching a promotional offer fromSaturday, with the slogan, "Bring anything old and take

something new".

The prices fixed by Big Bazaar are: clothes (Rs 200 perkg), newspaper (Rs 25 per kg), plastics/utensils/leathergoods (Rs. 75 per kg), footwear/luggage (Rs. 100 per

kg), Pet/beer bottles (Rs 15 per kg), tyres (Rs 50 perkg), furniture (Rs 75 per kg) and others (Rs 20 per kg).

"This offer will help the housewife clean out the junk


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while getting a good value for it.

3. PERSONAL SELLING:

Persuasive communication between a representative ofthe company and one or more prospective customers,

designed to influence the person's or group's purchasedecision.

4. PUBLICITY OF PRODUCT:

Publicity non-personal communication in news story formabout an organization, its products or both, that is

transmitted through a mass medium at no charge.

5. PUBLIC RELATION:

Public relations the planned and sustained effort to

establish and maintain goodwill and mutualunderstanding between an organization and its target

publics.

6.

INTERNAL

ATTRIBUTES:

a. Envelope

Something that envelops; a wrapping. A products

wrapping affects a lot on its sale. More customers areattracted if envelope is very attractive.

b. Internal layout

Methods of display

Visual merchandising


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7. LOGISTICS:

Logistics is the art and science of managing andcontrolling the flow of goods , energy, information andother resources like products, services and people from

the source of production to the marketplace. Its Importantto have professional logistical support logistical. The

operating responsibility of logistics is the geographicalrepositioning of raw materials, work in process andfinished inventories where required at the lowest cost

possible .

8. SUPPLY CHAIN:

Supply chain, is a coordinated system of organizations, people, activities, information and resources involved in

moving a product or service in physical or virtual mannerfrom supplier to customer. Supply chain activities

transform raw materials and components into a finishedproduct that is delivered to the end customer .


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4

.9. DISTRIBUTION OF REVENUE EARNERa. Big Bazaar is working to make fashion its largest

revenue earner.

b. Big Bazaar, the value retailing chain of the Rs4,500crore Pantaloon Retail, is strategieng to focus

specially on fashion retailing or its apparel business toboost overall revenues.

c. It has created Fashion @ Big Bazaar, a sub-brand, toposition the format as much more than food or general

merchandise.

d. Big Bazaar is looking at making apparel business itslargest revenue generator, as much as 40 per cent in

two years and 50 per cent of its overall business, in fiveyears.

e. Currently sales of apparel make up almost 30 per centof Big Bazaars revenues, which is next only to its food

retailing business that makes up almost 40 per cent.

f. However, we will focus on apparel as the margin here isas high as 35 per cent compared to food retailing

business where margins are probably 12 per cent. So

a slight increase in apparel sales boosts the overallbusiness. Going forward, Big Bazaar plans to rearrangeits apparel and fashion merchandise section in stores in

terms of design, layout and elbow space. This isexpected to ensure better product display in stores

keeping with consumer buying habits and convenience.

g. Future Group recently clocked over Rs 350crore of

sales in five Mahabachat days, with sales exceedingRs 105crore on the last day.


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h. During this time, the largest selling category wasapparel. As many as 1lakh jeans were sold andonelakh sarees as well as some 2 lakh t-shirts.

i. Some of Big Bazaars private labels, like DJ&C andKnighthood, are already big revenue generators, with

DJ&C projecting Rs 1,000crore in the next three years,from 600crore right now.


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4.10. COMPETITORS

Big bazaar operates in a competitive environment. For each

line of business, they face competition from established nationaland regional companies. In the fashion segment, they probably

face competition from Shoppers Stop, Trent and Lifestyle. Thehypermarket business is relatively new, being just about three

to four years old in the country. Big bazaar faces competition

from the likes of RPG (Spencers), Trent (Star India Bazaar)and with Shoppers Stop too indicating their entry into the

hypermarket segment. In the Food business, Big Bazaar facescompetition from Subhiksha, Food World to name a few.


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Spencer & CompanyLimited isa. RPG GROUP:another large retail group in the

country withsupermarkets,music

stores, and the beauty and health

chainHealth & Glow.

Food world, operated by Food

World Supermarkets Limited, whileHealth &Glow by the RPG Group. It

is also Planning IPO, will have 450-plus Music World, 50-plus Spencer's

Hyper covering 4 mn sq.ft by 2010.

K Rahejas Shoppers Stop, is theb.KRAHEJAS second largest retailer in the countryDEPARTMENTSTORE

and became in retailing operation anCHAIN:Indian success story. It also

acquired the Crossword chain ofbookstores.

It Operates Shoppers Stop,Crossword, In orbit Mall, and 'Home

Stop' formats. Will operate 55 hypercity hypermarkets with US$100million sales across India by 2015.


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Subhiksha was immensely popularc.SUBHIKSHAin the South, particularly in Chennai,SUPERMARKET:where it sold groceries and

pharmaceutical products below the

MRP. It expected to earn a total

turnover of Rs 1,200 crore in 2008-

09 as it planned to expand outsideTamil Nadu and Pondicherry. It

planned for 550 stores in the nextfive years.

Investing Rs.30000 crored. RELIANCE RETAIL:($6.67 billion) in setting upmultiple retail formats with

expected sales ofRs.90,000 crore-plus ($20

billion) by 2009-10.

Investing Rs.400 crore-pluse.LIFESTYLE: ($90 mn) in next five years

on Max Hypermarkets &value retail stores, home

and lifestyle centers.

Aiming to occupy 1.75 millionf.PIRAMYD RETAIL: sq.ft retail space through

150 stores in next five

years .


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Tata Group has two retailingcompanies; Trent Limited,

g. TATA GROUP: headed by Noel Tata, which

owns Westside, Star Bazaar

and Landmark retail brands

and Tata Infiniti, headed by

Krishna Kumar, which ownsCroma brand.

Trent Ltd, he retail arm of theTata Group, has drawn up a

Rs 2,000 crore investment

plan for setting up 50hypermarkets Star

Bazaar over the next fiveyears.

Tata Ceramics Limited,which manufactures a wide

range of ceramicproducts like

flatware ceramics (Dinner plate, Dessert plate,Saucer) and hollowware

ceramics (Vegetable Dish,Oatmeal, Sugar Pot,

Creamer, Coffee/Tea Cupsand Pots, Salad Bowl etc.)

in plain as well as fluted

shapes, under the brandname of CERA, launched itsfirst exclusive branded store

in Pune . Tata Ceramics,which achieved sales of Rs35crore last year, is looking

at adding another Rs 12crore from domestic sales in


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4.11. MAJOR PROBLEMS

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

technological developments, changing competitivepositions, varying consumer behaviors as well as their

expectations and liberalized regulatory environment. Insuch a scenario, information is crucial to plan and

control profitable retail businesses and it can be an

important source of competitive advantage so long as itis affordable and readily available.

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

of Information Technology (IT). As there is a need tocapture accurate information and make it available notonly within the store but send it to warehouse,

distributors and manufacturers in real time to managethe short shelf life of some goods in grocery sector and

costs of inventory, varied DSS tools have been adopted by organized retailers. VMIs- vendor managed

inventory systems, Scanner at the counters- point ofsales systems, RFID- radio frequency identification,

OLAP (online analytical processing), supply chainmanagement systems, forecasting systems, CRM-

customer relationship management systems, ERP-enterprise resource performance system etc. are thetools used by organized retailers in developed nations.


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c. Most retailers collect and have access to huge amountof data, collected from day to day operations e.g.customer loyalty data, retail store sales and

merchandise data, demographic projection data etc.

Currently retailers are data rich but information poor.There is a great potential to develop systems thatenable analysts and decision makers to manage,

explore, analyze, synthesize and present data in ameaningful manner for decisions.


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4.12.

FUTURE PROSPECTS


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a. Big bazaars have two AMCs. One that specializes inProperty and the other is a Consumer India Fund.

The property fund aims at sourcing high quality

property at the lowest possible rates, while the

consumer fund will look at providing our retail pipeline

and expertise to national and regional brands, thereby

enabling them with a wider coverage.

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

coming up in the next three years, our endeavour is to

keep evolving with the young Indian consumer. As

regards mind share, we want all our store formats tocapture the imagination of the target customer.

c. The future will also see the pantaloon of several newconcepts targeted at the Indian consumer. Further, retail

development will not just occur in Tier 1 cities, but will have farmore significance in Tier 2 & 3 cities as well. The consumptiondrive would be fueled in smaller towns and cities.

d. There would be definite customer responsiveness towardsValue Added products and services in the next few years. Since

value retailing touches the mass of the population, and withorganized retailing at about US $ 300 billion at present, value

retailing has the scope to almost double.

e. Retail chain Big Bazaar (Mumbai) plans to open 15more stores by November end, some of them in newmarkets, at an investment of Rs 1,500-1,600 crore.


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f. Big Bazaar is targeting a network of 145 stores by June2009.They have zeroed in on several new and existing

markets for the 15 stores that they plan to open by end-

November. The investment will be in the range of Rs

1,500-1,600 crore.

g. The stores would be set up in places such as Mysore,Pune, Cuttack, Kolkata, Chandigarh, Agra, Faridabad,

Surat, Nashik, Mumbai, Delhi and Solapur, adding thatin some locations two stores would be opened.

h. The retail chain would be extending its footprint into

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

i. Big bazaar will focus on-

Shoppertainment : It will be a convergence of shopping,

entertainment and eating. Shopping and entertainmenttogether called Shoppertainment is targeted at the

family. Its more than just shopping.

E-tailing: Is the selling of retail goods on the Internet.

Short for electronic retailing. The term seems to be

almost inevitable addition to e-mail, e-business, and e-

commerce. It is synonymous with business-to-consumer (B2C) transaction.


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j. News related big bazaar, which is expected to generaterevenue of $1 billion in the fiscal 2007-08. Big Bazaar is

a hypermarket format of the Pantaloon Retail (India)

Ltd.

The Group expects to increase its revenues to $7-8

billion by 2011, of which Big Bazaar is expected to

contribute a large chunk of around $4 billion. It hasemerged as the largest retail format of Future Group's

retail division. Currently they have more than 80 BigBazaars and we are planning to scale it up to 160 by

the year that the company was going to go veryaggressive in rolling out the Big Bazaar formats, the

total floor area by 2011 would scale up to 30 millionsquare feet from the present figure of 10 million squarefeet.

k. The consumer electronics segment is doing extremely

well, he said, elaborating that the group was expectingthe segment to generate revenue of Rs 2,000 crore by

next year.

l. Future Group plans to have 300 stores and hasprojected revenues of Rs 13,000 crore by 2011.

m. Total income has increased to Rs 1,381.44 crore forthe quarter ended June 2008 from Rs 1,037.42 crore for

the quarter ended June 2007, posting a 33.16 jump.


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n. The company said in a statement that it has posted anet profit of Rs 125.97 crore for the year ended June

2008 against Rs 119.99 crore for the year ended June

2007.

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

the year ended June 2008 from Rs 3,328.77 croreduring the last fiscal. The Group posted a consolidated

net profit of Rs 21.93 crore for the year ended June2008 as compared to Rs 35.54 crore for the year ended

June 2007.

p. However, its total income has increased from Rs3,565.48 crore for the year ended June 2007 to Rs5,866.50 crore for the year ended June 2008.

5. WORK ASSIGNED BY THE COMPANY

5

.1 BUSINESS OBJECTIVE:To increase footfalls and enhance sales by:

a. Attracting customers by giving them various offers.b. Inculcating in their minds the value for money throughthese offers.c. Increasing the average consumption of existing

customers.


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5.2 OPERATING THE SCHEME:

a. All Category provided offers well in advance. b. I.T uploaded the offers one day in advance andrechecked them.

c. V.M also did splendid job by putting the required offersignages and also decorated the store as per the SS3D

theme.d. HR managed the shift time of employee; Snaks were

arranged for the staff.e. SM, ASM, DM, ADM-Planned and managed micro

analysis of targets and staff was done by takingdepartment wise meeting.


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5.3 WORKING..

5

.3.1. TO KNOW CONSUMER BEHAVIOR TOWARDSSCHEME:


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Ready to eat Housewives,families,individuals.

Chef zone Housewives, families

Chill station Housewives, individuals

Staples Families, housewives

Vegetables Families, housewives


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Non food items Families, housewives


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On the basis of demographic factors


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AGE INCOME PREFERENCES/HABBITS

Adolescent Do not earn Fond of spending on eatingout, etc

(New ageteens)

Youth Mostly Brand conscious, productconscious.

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

rate upgrading their households gadgets.

Age (45-60) People at the Spend less peek oftheir

careers


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Above 60 Steady Spend only on households.income


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BUYING PROCESS

a. NEED RECOGNITION:

The customer first points out the things which he need.His good part of income is spend on things of his daily

requirement.

b. INFORMATION SEARCH:

Before purchasing of a product, customer researchinternally and externally. Internally-retrievinginformation about similar purchase made earlier,

decision about choice criteria, brand included, oradvertisement related to the product. Externally-

source such as family, friends, commercial sources, etc.

c. EVALUATION OF ALTERNATIVES:

Before, purchasing customer looks for the alternatives ofthat product. Customer goes for good quality in

cheapest rate.

d. PURCHASES:

Purchaser many times faces cognitive dissonance whicharises due to uncertainty of making right decision. Thisis because choice of one product often means rejection

of attractive features of the alternatives.

e. AFTER PURCHASE EVALUATION:


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Customer by using the product comes to know about thereal value of product.

CONCLUSION:

It should be considered that big bazaar targets every class.

Thus we know that different people have different thinking style.

Most of their buying decisions or his behavior depends on his:-

a. P

ERCEPTION:Perception is the process by which a customer makes sense of

information that he receives. Therefore, it is to be tried thatcustomer receives the right information about every product andabout its scheme, because a single error in communication to

customer can create confusion to him and he may not buy theproduct.

b.

LEARNING:

It is the change in the content or organization of long timememory and is a result of information processing. Thuscompany should try to hit the customers memory. I.e.

Company should have good impression on the memory of thecustomer. As this memory acts as a internal information source

in the decision making process.

c.

MOTIVATION:

Motivation helps a lot to maintain loyal customers. Acustomer is loyal only when he sees any extra benefits.

Thus discounts, free gifts, free coupons, etc such schemesmotivate them a lot. Many times, good quality of the

product, reasonable prices, packaging, etc also works asmotivational tool.


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d.

PERSONALITY:

Personality can be of many types as introvert-extrovert,

sociable-loner, and competitive-cooperative. Brand

personality is the characterization of brands as perceivedby customers. Brand may be as for young like brandedjeans of Levis, Lee, Woodland, etc. Big bazaar also target

same concept.

e.

CUSTOMER LOYALITY AND PROFITABILITY:

Relationship between loyalty and profitability should be

decided on the basis of loyal customers that are reallyprofitable for company.The loyal customers are believed to be cost less to serve,

they are willing to pay more than other customers and actas a word- of- mouth promoters for the company. It is

believed that one sure way to earn greater profits is to winloyalty of customers.

5

.3.2. TO GET THE RIGHT POSITIONING DONE OFTHE PRODUCT UNDER SCHEME:

It is the customers beliefs about the companys product

being of, say, high quality, or low price, or durable, etc.

Thus it is very necessary that product should be according

to the customers need. It should not be damaged, in storeproduct should be given open facing. For pack of two the products were given alternate 4 facing. I.e., one row of

single and other row of double.


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5

.3.3. TO MAINTAIN STOCK ON THE FLOOR:In retail stores less stock is maintained. This stock on

other hand is sufficient enough to fulfill the demand of

that vary product in store.

To know the exact amount to be maintained on floor it is

very necessary to know:-

a. Product facing

b. Capability to maintain stock in warehouse

c. Demand of the product.

d. Profit margin on the product.

5.3.4. TO UPDATE THE PRICES:

Pack of two was the new scheme, so its prices to be getchanged on rem for those products whose prices have

changed by the producing company. The work was toreport DM or team leader about the increase in prices and

get it updated on rem so that discount could be givenaccordingly.

5

.3.5. DISCOUNT CRITERION:

a. The discount was given on the scheme of pack of two. b. The discount was 1/4th on the profit of the retail

company.

c. I. e if the company is getting profit of rs10 on a product,whose mrp is 100.

d. Then after discount it is sold at rs97.5 in the store.

5

.3.6. INVENTORY CONTROL:

Since inventory represents cost, managers seek stock

minimization. To always have in stock every conceivable


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item that a customer might order would normally be prohibitively expensive for companies marketing manyitems.

One solution is to separate items into those that are in highdemand and those that are is slow moving. Two relatedinventory decisions are knowing when and how much to

order so that stocks are replenished. This is becausethere is a lead time between ordering and receiving

inventory, and there should not be stock out as thecompany is waiting for the order items to arrive. The morevariable the lead time and higher will be the safety or

buffer stock that the company will be required to keep toprevent a stock out.

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

many of the products. The stock order placed should bemore in the starting of the month as at that time customers

purchasing power is more. But I usually saw that orderplaced was somewhat same throughout the month due to

which there was stock out in some of the items in food.


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H

OW TO WORK ON BARCODE TENDER:

Barcodes are the labels which shows price of product after

giving the discount on that product.

Bar tender is the software by which we use to take out the

bar codes.

Process:-

a. To select items according to their EAN numbersInclude for export exit enter.

b. No. of quantity done.

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

ok


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. SURVEY6

6.1 SURVEY ANALYSIS

1. Total people surveyed-90

2. Total people who responded well-72

a. Surveyed :-

1. Men: 22

2. Women: 30

3. Youngsters: 18

4. Children: 8

5. Old aged: 12

Men

Women

Youngs

Childern

Old age


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b. Marital status:-

1. Married: 74 2. Unmarried: 16

Married

Unmarried

c. Occupation:-

1. Student: 20

2. Business: 38

3. Service: 27

40

35

30 Student25

BussinessNo. of20Person Service15

Any other10

5

0Student Bussiness Service Any other


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d. Income group: -

1. 0-10000: 20

2. 10000-20000: 24

3. 20000-30000: 28

4. More than 30000: 18

30

250-10000

2010000-20000

15No.of Person20000-30000

10more than 30000

5

0

e. Is your home: -

1. A single family house: 55

2. Two family house: 25

3. Single: 10


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Single family house

Two family house

single

f. Indicate activities/interests which you

and/or household members enjoy on a

regular basis:

1. Bicycling/running: 1

2. Dieting: 25

3. Crafts: 5

4. Foreign travel: 15

5. Gourmet/fine food: 45

6. Fashion clothing: 40

7. Bible/devotional reading: 12

8. Physical fitness/exercise: 69

9. Stereo/records and tapes: 14

10. Art/antiques: 8

11. Outdoor gardening: 35

12. Wildlife/environment issues: 40

13. Health foods/vitamins: 70

14. Money making opportunities: 50


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15. Book reading: 24

16. Self improvement: 45

17. Watching sports on TV: 40

18. Charities/volunteer work: 16

19. Other: 12


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bicycling diet ing craft foreign travel

fine f ood fas hion clot hing devotional reading phys ical fitne

ss

tapes /re cords art out door garde ning w ildlife

he alth foods m oney m aking book reading s elf im provem e

nt

watching s ports charities

others


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CONCLUSION FROM SURVEY ANALYSIS

a. Men and women both are responsive this shows thatthey have interest in the products either they buy or not.

They have good knowledge about the product they buy.

b. Women are very careful about what they buy but

sometimes men tend to ignore some of the features ofproduct.

c. Women are more attracted and keen to know about theschemes, discounts, gifts, etc on product.

d. People have multiple life style and people have interest

in music, fitness, health, dieting, health food, vitaminrich products, and fashion clothing.

e. Women, children, youngsters, aged people frequentlymake visit to stores.

f. People of single family and apartment family arefrequent customers.

g. People of middle class and upper middle class arefrequent customers and they spend good amount of

their income.


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6.2 TREND ANALYSIS

a. how often you used this product before the

scheme?

1. Everyday: 49

2. More than once a week: 21

3. Once a week: 20

e veryday

m ore than once a we

ekonce a w e

ek

b. How often do you use products from this

[SERVICE CATEGORY]

1. Every day: 55

2. More than once a week: 29

3. Once a week: 6

Eve ry day

Once a w e

ek

More than once a w ee

k


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CONCLUSION FROM TREND ANALYSIS

Trend analysis shows that consumption rate of the

products was good, as the products were mainly dailyused products. Earlier the rate of using of product wasless in comparision, after the scheme.

6.3 CONJOINT ANALYSIS

a. Stores are conveniently located:-

1. Very Strongly Agree: 20

2. Strongly Agree: 28

3. Agree: 27

4. Disagree: 15

30 very strongly agree

25

strongly agree20

15

agree

10

5

disagree

0

very str ongly strongly agree disagree

agree agr ee


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b. Store atmosphere and decor are

appealing:-


2. Agree: 40

3. Disagree: 21

strongly agree

agree

disagree

c. A good selection of products was present.


2. Agree: 553. Disagree: 11


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strongly agree

agree

disagree

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


2. Agree: 453. Disagree: 15

45

40

35 Strongly agree

30

25AgreeNo of Person

20

15Disagree

10

5

0Strongly Agree Disagree

agree


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e. Merchandise sold is of the highest quality:-


2. Agree: 52

3. Disagree: 12

Strongly agre e

Agree

dis agree

f. Merchandise displays are attractive:-


2. Agree: 69

3. Disagree: 12

Strongly

agre e

80

60Agree

40No.of person

20

0 Dis agreeS t rongl y A gr ee Dis a gre e

a gree


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g. Advertised merchandise was in stock:-


2. Agree: 67

3. Disagree: 9

Strongly agree

Agree

Disagree

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


2. Agree: 30

3. Disagree: 5


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90

Strongly agre e60

50agre e

40No.of30 dis agree

Person

20

10

0Strongl y agree agree di sagree

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

what I bought:-


2. Agree: 53

3. Disagree: 3

strongly agree

ag ree

disagree


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j. I am very satisfied with the merchandise I

bought:-


2. Agree: 70

3. Disagree: 8

strongly agree

agree

disagree

Slice 4

Select the rating that best describes how you feel

about [PACK OF TWO SCHEMES].

k. Quality:-


2. Agree: 28

3. Disagree: 15

4. Disagree Strongly: 15

5. Very Strongly Disagree: 2


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Strongly agre e

30

Agre e25

20 Disagre e

15No.of Pe rson

Disagre e10

strongly

5Very strongly

disagre e0

Strongly Agree Disagree Disagree Very

agree strongly strongly

disagree

l. Price and Discount:-


2. Agree: 60

3. Disagree: 12

Strongly

agree

Agree

Disagree

m. How interested would you be in using the

product in this scheme:-

1. Not at all interested: 0

2. Not very interested: 3

3. Neutral: 2


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4. Somewhat interested: 25

5. Extremely interested: 50

6. Not sure: 10

50

45 Not at all

40Not ve ry

35 inte re sted

30 Ne tural

25No.of Pers onSom ew hat

20 inte re sted

15 Ext rem elyintres te

d10Not sure

5

0Not at all Not very Netural Somewhat Extremely Not sure

interested interested intrested

n. Overall, how interested are you in buying

this service:-

1. Not at all interested: 0

2. Not very interested: 5

3. Neither interested nor uninterested: 22

4. somewhat interested: 18

5. Extremely interested: 45


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Not at all int.

45

40 Not veryinterested

35

Neither int.nor30

unin

t25

SomewhatNo.of Person20 interested

15Extremely

intrested10

5

0

CONCLUSION FROM CONJOINT ANALYSIS

People are satisfied with the store locations. There is good

rating in favour of atmosphere, dcor and quality ofproduct offered to customer in exchange of the reasonable

prices.

People have shown their keen interest towards theproducts in scheme. They say that for them any discount is

good if the product is of their utility.

Customers are interested to buy the products again andagain of the scheme.


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7.

GENERAL SURVEY AND CONSUMERBEHAVIOR ANALYSIS FOR THE NEW

SCHEME OF PACK OF TWO

a. Do you find the choices in biscuitsaccording to your preference:-

1. Very Strongly Agree: 20


3. Agree: 23

4. Disagree: 15

very strongly

ag ree

strongly agree

ag ree

disagree

b. Biscuits most preferred-

Britannia:-

1. Britannia gday butter: 32

2. Britannia gday pista: 16

3. Britannia gday cashew: 20

4. Britannia jim jam: 55

5.Britannia crm treat bourbon 32


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60

50

gday butter40

gday pista

30 gday cashew

jim jam20

bourbon

10

0

gday gday gday jim jam bourbon

butter pista cashew

c. Parle:-

1. Parle hide n seek choco chips (200g): 24

2. Parle hide n seek choco (100g): 61

3. Parle bourbon cream (200g): 45

4. Parle digestive (176g): 34

5. Parle krack-jack (240g): 21

6. Parle glucose (220g): 50

hide &seek(200g)

2n d Qtr

bourbon (200g)

dige stive(176g)

krack-jack(240g )

glucose(200g )


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d. Maggi preffered most:-

1. Maggi noodle masala (380g): 35

2. Maggi noodle masala (570gm): 30

3. Maggi noodle masala (760g): 32

4. Maggi noodle vegetable atta (360g): 24

5.Maggi noodle rice chilli chow (332g): 8

maggi noodle

msla(380g)570g

760g

veg atta noodle(360g)

rice chilli chow


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e. Mtr products:-

1. MTR dessertmix badam drink (220g): 11

2. MTR dessertmix gulab jamun mix (200g):10

3. MTR payasam kheer (220g): 60

4. MTR readymeal suji upma: 16

5. MTR snackmix dosa mix (500g): 12

6. MTR snackmix rava dosa (500g): 19

7. MTR snackmix rava idli (500g): 6

8. MTR snackmix uttappam (500g): 15

mtr badam

drink(220g)

mtr gulab jamun

mtr payasam kheer

mtr suji upma

mtr dosa mix

mtr rava dosa

mtr rava idli

mtr uttappam


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Some of the products which can be considered for saleset.

Britannia nutri digestive (small pack)-focuses all health

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

Mohans corn flakes (liked by all class people and in

budget).

No offer on Sunfeast products which targets children in

their advertisements.

Private label products were very reasonable and very

affordable and were in good demand but there was goodnumber of damage also from the brand in tasty treat

instant noodles masala (400g).

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

for its promotion can we have it in any scheme?


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SUGGESTIONS

MARKETING OBJECTIVE

Target is placement of all merchandising units across themarket in a months time

Create Identity in a Short Span

Offering a wide range

Reach every nook & corner

Distinct Approach ( Innovative & Differentiated products)

Constant connection through technology

High level of transparancy

Pricepressure from webshops

Changed orientation and purchase behaviour

Shift your loyalty!From Push tool to Pull platform

Producer Retail Consumer

EXPERIENCE SOCIAL RETAILING ORGANISEDSERVICE INFORMED

PRODUCT CONNECTEDMATERIAL CONSUMER


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Providing social tools and platforms around productsand services to create better informed and better

organised buying behaviour.

Giving away design

Giving away assortment

Give away marketing

Augmented Reality

ORGANIZED RETAILING

promote quality employment;(i)(ii) improve business process practices;(iii) spur investments in support

industries; and(iv) enable the modernization of the fragmented

traditional retail industry.

Modern retail business focuses on maximizing customerfootfalls and capturing rising volume and share of thecustomer wallet.

While the competition strategy is largely price focused,the model works by:

(i) improving sourcing efficiencies;

expanding product assortment;(ii)(iii) differentiating service; and

enhancing the store ambience. Thus, there are(iv)four drivers of modern retails one-stop shopping

model:price, product, service, and ambience


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The main objective of these studies is to understand

how these firms are:

penetrating markets;(i)introducing formats and product categories;(ii)

(iii) operating the end-to-end value chain; (iv) pricingdifferent products; and

(v) capturing customer footfalls.

It helps to:

(i) attain critical mass;(ii) economies of scope in sourcing by accruing

costs across stores; andreach out to consumers in the local(iii)neighbourhood locations

BENEFITS OF ORGANIZED RETAILING

PRODUCT MARGIN

Modern retail penetration and consumer adoption in theapparel and clothing category is the highest.

An organized retailer gets an average of 30 per cent grossmargin or above on MRP across womens wear, gents

wear, and kids wear on branded labels. In the case ofprivate labels of store brands, clothing margins are higherthan 60 per cent typically.

In the food and grocery section across hypermarket,

supermarket, and discount store formats, grocery covers


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around 45 per cent of store space in FMCG and staplefood products.As regards fresh fruit and vegetables, however the store

level penetration is low compared to other categories for

various reasons: (i) high wastage; (ii) lack of temperature-controlled isles; and (iii) low profit margins in bulk produce(potatoes, tomatoes, and onions). In addition, the

customer adoption rate is also low in fresh fruit andvegetables because of its daily need-based requirement

and the distance factor. Nevertheless, fruit and seasonal vegetables are higherprofit-margin produce: fruit sell at 40 per cent margin on

the cost price, and seasonal and exotic vegetables around30 per cent above the cost price. Across the fruit and

vegetable section, the net profit gain is between 8 per centand 10 per cent on an average. As a result, organized

retail firms are strategizing convenience format stores upto 2,000 sq. ft. area in order to penetrate the local

neighborhood markets.

MARKET PENETRATION STRATEGY:-

Large retailers are heading for a pyramidal approach by

launching several small-sized neighborhood conveniencestores in tandem with a few large hypermarket or

department store formats. This strategy is beneficial tolarge retail firms because they can absorb supply-chain

costs across formats. Further, bulk purchases enable themto squeeze profit margin from suppliers. However, the local

traditional retailers in the nearby locations feel moreintense competition.

The product mix in the hypermarket format is typically 60 per cent food and 40 per cent non-food. The format

incorporates a larger share of apparel, grocery products instaples, and FMCG goods, of which the share of apparel


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merchandize is 30 per cent. Fruit and vegetables, mobile phones, alcohol-based beverages and pharmaceuticalelectronics and household durable product categories

encompass a much smaller share.

Another dominant format used by modern retailersincludes the department and speciality stores focusing primarily in clothing, cosmetics, artificial jewelry and

watches, and household durables.The discount and convenience formats largely concentrate

on fruit and vegetables and grocery products.

Gradually, the organized retail value chain would prefer to

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

The direct procurement model benefits modern retailers for

the following reasons: (i) maximizing its gains on largevolume transactions; (ii) implementing store brand

promotional schemes; and (iii) minimizing the operationalcost.

In the case of FMCG and staple products, the firmsprocure primarily from large suppliers for branded products

and small suppliers for store brand private labels. Asregards apparel, a mix of large and small suppliers supply

directly for private labels.

Currently, the modern retailers work on a commission-based margin with branded suppliers as opposed to the

slotting-fee position where a manufacturer or supplier getsshelf space by paying a certain fee structure. By havingcommission-based direct contract terms with branded

suppliers, retailers are able to arrange various promotionalschemes in order to attract customer footfalls to their

stores and secure discounted price on bulk purchase. This business tactic is particularly disadvantageous to the


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traditional retailers because their volume demand is verysmall and is primarily on credit payments.

EMPLOYMENT GENERATION:

Finally, but most importantly, the employment generatedby organized retail is building a quality labour class that is

gaining vocational training in skilled and unskilled jobs atthe graduate and tenth class level Foreseeing the demand

for trained staff, leading organized retailers are creatingtheir captive human resources pool through internaltraining and programmes and tie-ups with retail

management schools.

COMPETITORS STRATEGY:

Subhiksha Value

Low-price high-volume strategy: by keeping no fancy frillsfront-end and by becoming an intermediary at the backend, Subhiksha leverages on discounted prices on bulk

purchases and cash payments.

Trent Limited Lifestyle &Value

Single- brand strategy: leverages on high margins in

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

ITC Choupal Sagar & ChoupalFresh Value


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Backward integration through IT-based business model:leverages by building direct relationship with the supplysource, the farmers, to sell as well as purchase products

and services.

Spencers Retail Value

The duck and the duckling model: by having two- orthree- value segment stores, backed by a

30504508 Consumer Behavior of Retail Sector Big Bazar Future Group

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