Big bazaar strategies

EFFECTIVENESS OF VISUAL MERCHANDISINGBIG BAZAAR

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ABHISHEK ROY11BSPHH010034

A PROJECT REPORT ON

EFFECTIVENESS OF VISUAL MERCHANDISING IN INCREASING STORE/CATEGORY SALES ON WEDNESDAY BIG BAZAAR

By ABHISHEK ROY 11BSPHH010034

A Report submitted in partial fulfilment of the requirements for MBA program of IBS Hyderabad

Company Guide: Mr. VASANTH MOHAN Faculty Guide: Prof. G.K.Srikanth BIG BAZAAR HEAD OFFICE TAR NAKA June 2 , 2012nd

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CONTENTSTOPICS PAGE NUMBERS Internship Certificate Attached with the report Acknowledgement 3 Executive Summary 4 1.Introduction 5 1.1Background 5-7 1.2Objective 7 1.3Methodology 7-8 1.4Limitations 8 2. Economy Industry Analysis 9-24 3. Company Analysis 24-35 4. Project Specific Analysis 37-51 4.1 Questionnaire 37-39 4.2 Analysis 39-50 4.3 My Findings 50-51 5. Conclusion & Recommendations 51-53 5.1Conclusion 51-52 5.2Recommendations 52-53 6. Learnings from SIP 53-55


ACKNOWLEDGEMENTA journey is easier when we travel together. Interdependence is certainly more important than independence. It will always be my pleasures to thank those who have helped me in making this project a lifetime experience for me. I would like to express my heartiest gratitude to BIG BAZAAR , Tar Naka, Hyderabad for giving me an opportunity to work in its company, my Institute and important persons associated with this project, as without their guidance and hard work I would have never got a chance to have real life experience of working with a well reputed hypermarket in India. Regional Business Manager of Andhra Pradesh for giving me an opportunity to join their company and to know and learn various aspects of the project finance and loan syndication. It is my privilege to thank Mr. Vasanth Mohan (Company Guide & Chief Mentor) whose guidance has been a constant inspiration and has provided with all kind of supports. I would also like to thank Ms. Madhavi Kayasa , RVM, Hyderabad who helped in understanding about the retail and gave me a practical experience. Throughout the time I have gained wonderful guidance and tremendous support from my faculty guide, Prof. G.K.Srikanth , a tireless champion. It has been a great pleasure to be associated with him and I feel almost lucky to have him as my mentor. The greatest credit goes to the blessings bestowed upon me by Almighty Lord without whose causeless mercy, I could not have even moved a step forward and also to my family, who are always a constant source of inspiration in all my endeavours.

I would also like to extend my gratitude to Mr. Rajeev Sharma ,


EXECUTIVE SUMMARYThe project deals with components of Visual Merchandising and its influence on customer purchasing decision. The study is conducted at Big Bazaar, Hyderabad. The study is based on how the visual merchandising components such as dropdowns, signage, banners, wobblers, props and decorative items, fixtures and hardware, store design and display and overall ambience of the store plays a crucial role in influencing the purchase decision making of the customer. The methodology followed is questionnaire method with a total sample size of 200 respondents. The data is tabulated and graphically represented through, Pie charts, Bar graph. Based on the response obtained through questionnaire major research findings presented and suitable recommendations are made in order to improve the customer shopping experience at Big Bazaar. This research represents a contribution to a deeper understanding about the impact of visual merchandising on consumer buying behaviour in stores and to store attributes most valued by consumers. To attain this objective a questionnaire has been prepared. Those will be filled by the consumers visiting on Wednesday at big bazaar. Their observations will be noted down and then the analysis will be carried on.

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1. IntroductionVisual merchandising is one of the many functions undertaken to run a retail store. It is the activity and profession of developing floor plans and threedimensional displays in order to maximise sales. Both goods and services can be displayed to highlight their features and benefits. The purpose of such visual merchandising is to attract, engage and motivate the customer towards making a purchase. In simple words, Visual Merchandising is everything the customer sees, both exterior and interior, that creates a positive image of the business and results in attention, interest, desire and action on part of the customer

I.

BackgroundOver the years the title big bazaar has become synonym to the word discount. It is so because of the offering it has made to its consumers. Today, consumer associate big bazaar with attractive discounts and special offers. This is the driving force for the company. And the company does not disappoint the consumers as well. Big Bazaar introduced the Wednesday Bazaar concept and promoted it as Hafte Ka Sabse Sasta Din. It was mainly to draw customers to the stores on Wednesdays, when least number of customers is observed. According to the chain, the aim of the concept is "to give homemakers the power to save the most and even the stores in the city don a fresh look to make customers feel that it is their day". It is not a hidden fact that to increase sales visual merchandising plays an important role. We have already discussed about visual merchandising. Through this project I would like to find the importance or how effective visual merchandising is in increasing the sales of big bazaar.


Having mentioned about the Wednesday bazaar before, it is necessary to know its significance. In Big Bazaar Wednesday is a day where the company offers heavy discounts for the consumers in order to attract higher number of sales. This day is better known as Wednesday Bazaar to the consumers. Here in this day comparatively to other days high discounts are provided. It focuses on the Food Bazaar segment of Big Bazaar. The main reason to target this day is to attract the housewives and also those consumers who does not like to spend their weekends in purchasing groceries but prefers a weekday to do so. Moreover, choosing Wednesday as a day for heavy discounts and not any weekends is because many people have some arrangements or the other for their weekend and so we might be losing on some consumers.

On Wednesday, other than the overall discounts that can be availed from a variety of products there is HERO OFFER. This is the main attraction for that day. And in order to promote this product the visual merchandising team takes the help of signage, dropdowns, special display zone etc. Thus, Wednesday stands out as an important day than other days in the mind of the consumers. My project focuses on Wednesday Bazaar, thus, I was able to work for my project on a day which is important and attracts a larger audience. I would able to know the importance or vitalPage 6 of 55 SIP/BIG BAZAAR/11BSPHH010034

role that is being played by Visual appeal in the store and how it affects the purchasing behaviour of the consumer which in return pushes up the store sales.

II.

ObjectiveThe objective of the project is to find out how effective is the visual elements are on the consumer and how it helps in increasing the sales for the company.

III.a)

MethodologyPreparation of Questionnaire All the questions are close ended questions. I have used frequency determination questions, simple dichotomy questions and checklist questions.

b)

Sampling : Here I have considered simple random sampling method. Simple Random sampling is a procedure that assures each element in the population an equal chance of being in the sample. Range of sample size can be 200. c) Survey Development:The instrument used for this study was in the form of survey format. Questions will be prepared keeping in mind the Wednesday Bazaar and the visual impact. The main focus was on the effects of both external and in-store information on the buying behaviour of the consumer. The participants of the survey would mainly consists of the consumers who are coming to shop on Wednesday Bazaar. It will includePage 7 of 55 SIP/BIG BAZAAR/11BSPHH010034

all those who are regular and non-regular consumers of Big Bazaar products. Personal interaction with the consumers can be used. d) Area of enquiry:It is propose to conduct the research in the Hyderabad city. e) Primary Data:Primary data will be collected using the structured questionnaire. A sample size of 200 respondents will be chosen for the survey. f) Conduct the survey

IV.

LimitationsCertain limitations do creep in a research study due to constraints of the time, money and human efforts, the present study is also not free from certain limitation, which were unavoidable. Although all effort were taken to make the result of the work as accurate as possible as survey but the survey have following constraints. a) Due to a very large size of the population only a limited sample size has been taken into consideration. b) Due to time constraint and other imperative work load during the t period it could not be made possible to explore more area of concern pertaining to study. c) Due to fast pace life some consumers were not actually been able to justify their answers in questionnaire. d) Personal biases might have come while answering the questions.

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2. Economy Industry AnalysisRetail is a place where small things of different varieties are being sold so as to generate big revenue for the company. In 2004, The High Court of Delhi defined the term retail as a sale for final consumption in contrast to a sale for further sale or processing. Sale to the ultimate consumer. Thus, retailing can be said to be the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the Government and other bulk customers. Retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. A retailer is involved in the act of selling goods to the individual consumer at a margin of profit. The field of retailing is both fascinating and complex. It has enormous impact on the economy, in distribution, and its relationship with companies that see goods and services to retailers for their resale or use. Competition in the retailing scene has intensified manifold for the past few decades, generally as a consequence of new technologies, more sophisticated management practices and industry consolidation. These trends have been especially pronounced in the food industry. The retail industry is mainly divided into: 1) Organised 2) Unorganised Retailing

Retail Organised UnorganisedPage 9 of 55 SIP/BIG BAZAAR/11BSPHH010034

Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganised retailing , on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. The Indian retail sector is highly fragmented with 97 per cent of its business being run by the unorganized retailers. The organized retail however is at a very emerging stage. The sector is the largest source of employment after agriculture, and has deep penetration into rural India generating more than 10 per cent of Indias GDP. India is the 5th largest retail market globally, with a size of INR 16 trn, and has been growing at 15% per annum. Organized retail accounts for just 5% of total retail sales and has been growing at 35% CAGR. Though the journey has so far been rather mixed, organized retail is being tipped as one of the biggest gainers from growing consumerism and rising income. Indias robust macro- and microeconomic fundamentals, such as robust GDP growth, higher incomes, increasing personal consumption, favourable demographics and supportive government policies, will accelerate the growth of the retail sector. Until the 1990s, regulations prevented innovation and entrepreneurship in Indian retailing. Some retails faced complying with over thirty regulations such as "signboard licences" and "anti-hoarding measures" before they could open doors. There are taxes for moving goods to states, from states, and even within states in some cases. Farmers and producers had to go through middlemen monopolies. The logistics and infrastructure was very poor, with losses exceeding 30 percent. Through the 1990s, India introduced widespread free market reforms, including some related to retail. Between 2000-2010, consumers in select Indian cities have gradually begun to experience the quality, choice, convenience and benefits of organized retail industry.Page 10 of 55 SIP/BIG BAZAAR/11BSPHH010034

GROWTH OVER THE YEARSa. Growth over 1997-2010

In 1997 India allowed foreign direct investment (FDI) in cash and carry wholesale. Then, it required government approval. The approval requirement was relaxed, and automatic permission was granted in 2006. Between 2000 to 2010, Indian retail attracted about $1.8 billion in foreign direct investment, representing a very small 1.5% of total investment flow into India. Single brand retailing attracted 94 proposals between 2006 and 2010, of which 57 were approved and implemented. For a country of 1.2 billion people, this is a very small number. Some claim one of the primary restraints inhibiting better participation was that India required single brand retailers to limit their ownership in Indian outlets to 51%. China in contrast allows 100% ownership by foreign companies in both single brand and multi-brand retail presence. Indian retail has experienced limited growth, and its spoilage of food harvest is amongst the highest in the world, because of very limited integrated cold-chain and other infrastructure. India has only 5386 stand-alone cold storages, having a total capacity of 23.6 million metric tons. However, 80 percent of this storage is used only for potatoes. The remaining infrastructure capacity is less than 1% of the annual farm output of India and grossly inadequate during peak harvest seasons. This leads to about 30% losses in certain perishable agricultural output in India, on average, every year. Indian laws already allow foreign direct investment in cold-chain infrastructure to the extent of 100 percent. There has been no interest in foreign direct investment in cold storage infrastructure build out. Experts claim that cold storage infrastructure will become economically viable only when there is strong and contractually binding demand from organized retail. The risk of cold storing perishable food, without an assured way to move and sell it, puts the economic viability of expensive cold storage in doubt. In the absence of organized retail competition and with a ban on foreign direct investment in multi-brand retailers, foreign direct investments are unlikely to begin in cold storage and farm logistics infrastructure. Until 2010, intermediaries and middlemen in India have dominated the value chain. Due to a number of intermediaries involved in the traditional Indian retail chain, norms are flouted and pricing lacks transparency. SmallPage 11 of 55 SIP/BIG BAZAAR/11BSPHH010034

Indian farmers realize only 1/3rd of the total price paid by the final Indian consumer, as against 2/3rd by farmers in nations with a higher share of organized retail. The 60%+ margins for middlemen and traditional retail shops have limited growth and prevented innovation in Indian retail industry. India has had years of debate and discussions on the risks and prudence of allowing innovation and competition within its retail industry. Numerous economists repeatedly recommended to the Government of India that legal restrictions on organized retail must be removed, and the retail industry in India must be opened to competition. For example, in an invited address to the Indian parliament in December 2010, Jagdish Bhagwati, Professor of Economics and Law at the Columbia University analysed the relationship between growth and poverty reduction, then urged the Indian parliament to extend economic reforms by freeing up of the retail sector, further liberalisation of trade in all sectors, and introducing labor market reforms. Such reforms Professor Bhagwati argued will accelerate economic growth and make a sustainable difference in the life of India's poorest. A 2007 report noted that 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 Retail Business in India is currently at the point of inflection. As of 2008, rapid change with investments to the tune of US $ 25 billion was being planned by several Indian and multinational companies in the next 5 years. It is a huge industry in terms of size and according to India Brand Equity Foundation (IBEF), it is valued at about US$ 395.96 billion. Organised retail is expected to garner about 16-18 percent of the total retail market (US $ 65-75 billion) in the next 5 years. India has topped the A.T. Kearneys annual Global Retail Development Index (GRDI) for the third consecutive year, maintaining its position as the most attractive market for retail investment. The Indian economy has registered a growth of 8% for 2007. The predictions for 2008 are 7.9%. The enormous growth of the retail industry has created a huge demand for real estate. Property developers are creating retail real estate at an aggressive pace and by 2010, 300 malls are estimated to be operational in the country.


b.

Growth after 2011

Before 2011, India had prevented innovation and organized competition in its consumer retail industry. Several studies claim that the lack of infrastructure and competitive retail industry is a key cause of India's persistently high inflation. Furthermore, because of unorganized retail, in a nation where malnutrition remains a serious problem, food waste is rife. Well over 30% of food staples and perishable goods produced in India spoil because of the poor infrastructure and small retail outlets prevent hygienic storage and movement of the goods from the farmer to the consumer. One report estimates that the 2011 Indian retail market as generating sales of about $470 billion a year, of which a miniscule $27 billion comes from organized retail such as supermarkets, chain stores with centralized operations and shops in malls. The opening of retail industry to free market competition, some claim will enable rapid growth in retail sector of Indian economy. Others believe the growth of Indian retail industry will take time, with organized retail possibly needing a decade to grow to a 25% share. A 25% market share, given the expected growth of Indian retail industry through 2021, is estimated to be over $250 billion a year: revenue equal to the 2009 revenue share from Japan for the world's 250 largest retailers. Economist forecasts that Indian retail will nearly double in economic value, expanding by about $400 billion by 2020. The projected increase alone is equivalent to the current retail market size of France. In 2011, food accounted for 70% of Indian retail, but was underrepresented by organized retail. A.T. Kearney estimates India's organized retail had a 31% share in clothing and apparel, while the home supplies retail was growing between 20%-30% per year. These data correspond to retail prospects prior to November announcement of the retail reform. The key growth areas include the urban, luxury segment on one end of the spectrum and serving the rural sector on the other. In addition, government policy encouraging FDI in the segment has resulted in a plethora of international retailers keen on entering the market; American retail giant Wal-Mart has tied-up with Bharti Enterprises and global coffee giant Starbucks' has tied up with PVR Limited. In addition, Carrefour, Boots and others are also expected to come in. With so much action, it is natural that there is a huge scope for employment opportunities, and experts estimate that the sector will generate employment for ~ 2.5 million people in 2010. The top retail companies in IndiaPage 13 of 55 SIP/BIG BAZAAR/11BSPHH010034

include the Raheja Group, Reliance Retail, Tata Trent, Future Group, RPG Retail, and Ebony Retail Holdings. The fast and furious pace of growth of the Indian economy is the driving force for Indian consumerism; with the Indian consumers confident about their earnings and are spending a large portion of their high disposable incomes. Projections by analysts suggest that India has the potential to be labelled the fastest-growing economy and outpace the developed economies by 2050. Analysts predict India to sustain an average GDP growth rate of 5 per cent till the mid of this century, with India projected to outpace the other developed economy markets by 2050. The average annual growth rate for 1994-2004 was pegged at 6.1 per cent, second only to China. The more recent growth rates of over 9 per cent posted for India, promise a continued robust growth story. Private consumption accounted for 62 per cent of Indias GDP in 2004-05, comparable to most of the leading economies around the world.

PERFORMANCEIn todays dynamic and shaky business world, the retail industry is constantly upgrading itself. With an endless array of customer choices, fierce competitors, pervasive use of the internet, and a complex global economy, retailers need to focus on finding ways to sustain and grow their businesses. Traditional growth models that focused on rolling out more stores and adding more product lines, no longer enjoy the return on investment they once did. Successful retailers are those who are able to adapt and change to the environment and develop new ways of serving customers, respecting the dynamics of current trends and adapting accordingly. The retail industry in India is hailed as a sunrise sector, and is estimated to double in value from US$ 330 billion in 2007 to $640 billion by 2015. In fact, India has topped AT Kearney's annual Global Retail Development Index (GRDI) for the third year in a row as the most attractive market for retail investment. The bad news is, despite the fact that India has one of the largest numbers of retail outlets in the World, organized retail accounts for only 4% of the total market. This makes it especially difficult to apply sophisticated merchandising and sales tools, enhance consumer interaction and also, make very accurate analysis. That said, analysts believe the sector is likely to show significant growth of over 9 % p.a over the next 10 years and also see rapidPage 14 of 55 SIP/BIG BAZAAR/11BSPHH010034

development in organized retail formats, with the proportion likely to reach a more respectable 25% by 2018. In a joint study conducted by ASSOCHAM and KPMG, the following findings were revealed: a. The total retail market size in India in 2008 was estimated at US$ 353 billion. b. The annual growth of the retail market in India is expected to be around 8 per cent. c. The total retail market size in India is likely to touch US$ 416 billion by 2010. d. The present share of organised retail sector is estimated at 7 per cent. e. The estimated annual growth of organised retail sector is 40 per cent. f. The size of organised retail sector by 2010 is estimated to reach US$ 51 billion. g. The estimated share of organized retail in total retail by 2010 is 12 per cent. h. The investment into modern retailing formats over the coming 4-5 years is expected to be around US$ 25-30 billion.

ADVANTAGE INDIAAgainst the backdrop of an accelerating modern retail revolution, India offers to be an attractive destination for global corporations and leading retailers seeking emerging markets overseas. India presents a significant market, with its young population just beginning to embrace significant lifestyle changes.

THE YOUNG INDIAAgainst the backdrop of an ageing world, India possesses the advantage of having a largely young population. 35 per cent of Indias population is under 14 years of age and more than 60 per cent of the population is estimated to constitute the working age group (15-60) till 2050. Two-thirds of Indian population is under 35, with the median age of 23 years, as opposed to the world median age of 33.Page 15 of 55 SIP/BIG BAZAAR/11BSPHH010034

This trend is projected to continue for the next decade, with the share set to reach its maximum in 2010. The large proportion of the working-age population translates to a lucrative consumer base vis--vis other economies of the world, placing India on the radar as one of the most promising retail destinations of the world.

UNTAPPED MARKETIndia ranks first, ahead of Russia, in terms of emerging market potential and is deemed a Priority 1 market for international retail. Organised retail penetration is on the rise and offers an attractive proposition for entry of new players as well as scope for expansion for existing players. India is home to a large base of consumers with annual incomes ranging from US$ 1,000 US$ 4,700, comprising of over 75 million households. A steadily rising percentage of rich and super rich population and impressive disposable incomes offers a spectrum of opportunities, spanning from rural retailing to luxury retailing. The impressive retail space availability and growing trend of consumerism in the emerging cities and small towns add to the market attractiveness.

AVAILABILITY OF SKILLED LABOURIndia has a vast resource base of talent and skilled labour. Over 37,000,000 students were enrolled in about 150,000 pre-college institutes and over 11,700,000 in 14,000 higher education institutions in 2005-06. With English being the language for business in India, the language skills of the Indian workforce score higher than that of emerging economies. Retail Management is a sought after education stream amongst students, with over 15 premier institutes offering specialised courses in Retail Management. The great Indian consumer market is still going strong. The ETIG analysis carried out by the Economic Times revealed that most mass consumer goods and service in India were not much affected by the global economic slowdown. Despite the inflation experienced during the period, the second-quarter results of leading 70 consumer-related firms revealed that their aggregate revenues increased by 8.5 per cent during the September 2008 quarter over the same period in 2007. Even though this was a tad lower than the 9 per cent growth posted during the first quarter of 2008Page 16 of 55 SIP/BIG BAZAAR/11BSPHH010034

09, it was a lot higher than the 7 per cent registered during the previous three quarters for these firms. Despite the global economic slowdown, Indian retailers are still optimistic about the India growth story. The Indian economy is more stable than other economies across the world and one must not confuse India with the rest of the world. With the 30-40 per cent drop in retail rentals, Indian retailers are a happy lot. In fact, retailers are also foreseeing further drops in rentals in 2009 and they are optimistic about their expansion plans for this year. India has one of the largest numbers of retail outlets in the world. A report by Images Retail estimates the number of operational malls to grow more than two-fold, to cross 412, with 205 million square feet by 2010, and a further 715 malls to be added by 2015, with major retail developments even in tier-II and tier-III cities in India. Even as the organised retail market is starting to take off, there is an associated surge in branded discount outlets in India. Top realtors and local retail chains are developing malls in regional boroughs, specifically to sell premium branded goods.

GOVERNMENT INITIATIVESThe government has taken various measures to promote and encourage investment in the Indian retail industry. The Government allows 100 per cent FDI in cash and carry through the automatic route and 51 per cent in single brands. Besides, the franchise route is available for big operators. To further attract global retailers, the economic survey 200708 has suggested a share for foreign equity in all retail trade and 100 per cent in respect of luxury brands and other specialised retail chains.

FDI POLICY IN INDIAFDI as defined in Dictionary of Economics (Graham Bannock et.al) is investment in a foreign country through the acquisition of a local company or the establishment there of an operation on a new (Greenfield) site. To put in simple words, FDI refers to capital inflows from abroad that is invested in or to enhance the production capacity of the economy. Foreign Investment in India is governed by the FDI policy announced by the Government of India and the provision of the Foreign Exchange ManagementPage 17 of 55 SIP/BIG BAZAAR/11BSPHH010034

ct (FEM ) 1999. The Reserve Bank of India (RBI) in this regard had issued a notification, which contains the Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000. This notification has been amended from time to time. The Ministry of Commerce and Industry, Government of India is the nodal agency for motoring and reviewing the FDI policy on continued basis and changes in sectoral policy/ sectoral equity cap. The FDI policy is notified through Press Notes by the Secretariat for Industrial Assistance (SIA), Department of Industrial Policy and Promotion (DIPP). The foreign investors are free to invest in India, except few sectors/activities, where prior approval from the RBI or Foreign Investment Promotion Board (FIPB) would be required.

FDI POLICY & RETAILING IN INDIAIt will be prudent to look into Press Note 4 of 2006 issued by DIPP and consolidated FDI Policy issued in October 2010 which provide the sector specific guidelines for FDI with regard to the conduct of trading activities. a. FDI up to 100% for cash and carry wholesale trading and export trading allowed under the automatic route. b. FDI up to 51 % with prior Government approval (i.e. FIPB) for retail trade of Single Brand products, subject to Press Note 3 (2006 Series) c. FDI is not permitted in Multi Brand Retailing in India.

ENTRY OPTIONS FOR FOREIGN PLAYERS PRIOR TO FDI POLICYAlthough prior to Jan 24, 2006, FDI was not authorised in retailing, most general players ha\d been operating in the country. Some of entrance routes used by them have been discussed in sum as below:-

a.

Franchise Agreements It is an easiest track to come in the Indian market. In franchising and commission agents services, FDI (unless otherwise prohibited) is allowed with the approval of the Reserve Bank of India (RBI) under the Foreign Exchange Management Act. This is a most usual mode forPage 18 of 55 SIP/BIG BAZAAR/11BSPHH010034

entrance of quick food bondage opposite a world. Apart from quick food bondage identical to Pizza Hut, players such as Lacoste, Mango, Nike as good as Marks as good as Spencer, have entered Indian marketplace by this route. b. Cash And Carry Wholesale Trading 100% FDI is allowed in wholesale trading which involves building of a large distribution infrastructure to assist local manufacturers. The wholesaler deals only with smaller retailers and not Consumers. Metro AG of Germany was the first significant global player to enter India through this route. c. Strategic Licensing Agreements Some foreign brands give exclusive licences and distribution rights to Indian companies. Through these rights, Indian companies can either sell it through their own stores, or enter into shop-in-shop arrangements or distribute the brands to franchisees. Mango, the Spanish apparel brand has entered India through this route with an agreement with Piramyd, Mumbai, SPAR entered into a similar agreement with Radhakrishna Foodlands Pvt. Ltd d. Manufacturing and Wholly Owned Subsidiaries. The foreign brands such as Nike, Reebok, Adidas, etc. that have whollyowned subsidiaries in manufacturing are treated as Indian companies and are, therefore, allowed to do retail. These companies have been authorised to sell products to Indian consumers by franchising, internal distributors, existent Indian retailers, own outlets, etc. For instance, Nike entered through an exclusive licensing agreement with Sierra Enterprises but now has a wholly owned subsidiary, Nike India Private Limited.

FDI IN SINGLE BRAND RETAILThe Government has not categorically defined the meaning of Single Brand anywhere neither in any of its circulars nor any notifications.Page 19 of 55 SIP/BIG BAZAAR/11BSPHH010034

In single-brand retail, FDI up to 51 per cent is allowed, subject to Foreign Investment Promotion Board (FIPB) approval and subject to the conditions mentioned in Press Note that (a) only single brand products would be sold (i.e., retail of goods of multi-brand even if produced by the same manufacturer would not be allowed), (b) products should be sold under the same brand internationally, (c) single-brand product retail would only cover products which are branded during manufacturing and (d) any addition to product categories to be sold under single-brand would require fresh approval from the government. While the phrase single brand has not been defined, it implies that foreign companies would be allowed to sell goods sold internationally under a single brand, viz., Reebok, Nokia and Adidas. Retailing of goods of multiple brands, even if such products were produced by the same manufacturer, would not be allowed. Going a step further, we examine the concept of single brand and the associated conditions: FDI in Single brand retail implies that a retail store with foreign investment can only sell one brand. For example, if Adidas were to obtain permission to retail its flagship brand in India, those retail outlets could only sell products under the Adidas brand and not the Reebok brand, for which separate permission is required. If granted permission, Adidas could sell products under the Reebok brand in separate outlets. WH T IS BR ND? Brands could be classified as products and multiple products, or could be manufacturer brands and own-label brands. Assume that a company owns two leading international brands in the footwear industry say and R. If the corporate were to obtain permission to retail its brand in India with a local partner, it would need to specify which of the brands it would sell. A reading of the government release indicates that A and R would need separate approvals, separate legal entities, and may be even separate stores in which to operate in India. However, it should be noted that the retailers would be able to sell multiple products under the same brand, e.g., a product range under brand Page 20 of 55 SIP/BIG BAZAAR/11BSPHH010034

Further, it appears that the same joint venture partners could operate various brands, but under separate legal entities. Now, taking an example of a large departmental grocery chain, prima facie it appears that it would not be able to enter India. These chains would, typically, source products and, thereafter, brand it under their private labels. Since the regulations require the products to be branded at the manufacturing stage, this model may not work. The regulations appear to discourage ownlabel products and appear to be tilted heavily towards the foreign manufacturer brands.

There is ambiguity in the interpretation of the term single brand. The existing policy does not clearly codify whether retailing of goods with subbrands bunched under a major parent brand can be considered as single-brand retailing and, accordingly, eligible for 51 per cent FDI. Additionally, the question on whether co-branded goods (specifically branded as such at the time of manufacturing) would qualify as single brand retail trading remains unanswered.

FDI IN MULTI BRAND RETAILThe government has also not defined the term Multi Brand. FDI in Multi Brand retail implies that a retail store with a foreign investment can sell multiple brands under one roof.

In July 2010, Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce circulated a discussion paper on allowing FDI in multibrand retail. The paper doesnt suggest any upper limit on FDI in multi-brand retail. If implemented, it would open the doors for global retail giants to enter and establish their footprints on the retail landscape of India. Opening up FDI in multi-brand retail will mean that global retailers including Wal-Mart, Carrefour and Tesco can open stores offering a range of household items and kirana store. grocery directly to consumers in the same way as the ubiquitous Foreign Investors Concern Regarding FDI Policy in India For those brands which adopt the franchising route as a matter of policy, thePage 21 of 55 SIP/BIG BAZAAR/11BSPHH010034

current FDI Policy will not make any difference. They would have preferred that the Government liberalize rules for maximizing their royalty and franchise fees. They must still rely on innovative structuring of franchise arrangements to maximize their returns. Consumer durable majors such as LG and Samsung, which have exclusive franchisee owned stores, are unlikely to shift from the preferred. For those companies which choose to adopt the route of 51% partnership, they must tie up with a local partner. The key is finding a partner which is reliable and who can also teach a trick or two about the domestic market and the Indian consumer. Currently, the organized retail sector is dominated by the likes of large business groups which decided to diversify into retail to cash in on the boom in the sector corporates such as Tata through its brand Westside, RPG Group through Foodworld, Pantaloon of the Raheja Group and Shoppers Stop. Do foreign investors look to tie up with an existing retailer or look to others not necessarily in the business but looking to diversify, as many business groups are doing? An arrangement in the short to medium term may work wonders but what happens if the Government decides to further liberalize the regulations as it is currently contemplating? Will the foreign investor terminate the agreement with Indian partner and trade in market without him? Either way, the foreign investor must negotiate its joint venture agreements carefully, with an option for a buy-out of the Indian partners share if and when regulations so permit. They must also be aware of the regulation which states that once a foreign company enters into a technical or financial collaboration with an Indian partner, it cannot enter into another joint venture with another Indian company or set up its own subsidiary in the same field without the first partners consent if the joint venture agreement does not provide for a conflict of interest clause. In effect, it means that foreign brand owners must be extremely careful whom they choose as partners and the brand they introduce in India. The first brand could also be their last if they do not negotiate the strategic arrangement diligently.

CONCERNS FOR THE GOVERNMENTA number of concerns were expressed with regard to partial opening of the retail sector for FDI. The Honble Department Related Parliamentary Standing Committee on Commerce, in its 90th Report, on Foreign andPage 22 of 55 SIP/BIG BAZAAR/11BSPHH010034

Domestic Investment in Retail Sector, laid in the Lok Sabha and the Rajya Sabha on 8 June, 2009, had made an in-depth study on the subject and identified a number of issues related to FDI in the retail sector. These included: It would lead to unfair competition and ultimately result in large-scale exit of domestic retailers, especially the small family managed outlets, leading to large scale displacement of persons employed in the retail sector. Further, as the manufacturing sector has not been growing fast enough, the persons displaced from the retail sector would not be absorbed there. Another concern is that the Indian retail sector, particularly organized retail, is still under-developed and in a nascent stage and that, therefore, it is important that the domestic retail sector is allowed to grow and consolidate first, before opening this sector to foreign investors. Antagonists of FDI in retail sector oppose the same on various grounds, like, that the entry of large global retailers such as Wal-Mart would kill local shops and millions of jobs, since the unorganized retail sector employs an enormous percentage of Indian population after the agriculture sector; secondly that the global retailers would conspire and exercise monopolistic power to raise prices and monopolistic (big buying) power to reduce the prices received by the suppliers; thirdly, it would lead to asymmetrical growth in cities, causing discontent and social tension elsewhere. Hence, both the consumers and the suppliers would lose, while the profit margins of such retail chains would go up.

PROMINENT SECTORS IN INDIAN RETAILa. Food and Grocery b. Clothing and textiles c. Consumer Durables d. Footwear e. Jewellery Retail f. Books, Music and Gift Retail

PROMINENT PLAYERS IN INDIAN RETAILa. Future Group- Big Bazaar, Pantaloons and e-zonePage 23 of 55 SIP/BIG BAZAAR/11BSPHH010034

b. c. d.

Reliance Reliance Fresh Tata- Croma Electronics Retail Videocon- Next Electronics Retail

FUTURE PROSPECTS

There are many opportunities for those seeking to enter this sector, and entry level positions such as sales executives dont even require a degree. Naturally, the higher order jobs for graduates with relevant degrees and work experience, involve more responsibility, challenges and remuneration. MBAs are increasingly being recruited, which marks a change of HR policy, from the traditional preference to hire those from the FMCG and hospitality sectors. In fact, senior executives in retail such as operations heads are extremely well looked after, and HR consultants believe they are paid in excess of Rs. 60 lakhs. The good news for graduates is that since the sector is so young and vibrant, career growth happens very rapidly, and these positions are very achievable in a compressed time period. Successful candidates across all levels are those who are dynamic, able to multi-task and are equipped with great communication skills.

3. Company AnalysisKishore Biyani led the companys foray into organized retail with the opening up of the Big Bazaar in the year 2001. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore. Within a span of ten years, there are now 161 Big Bazaar stores in 90 cities and towns across India. Currently, there are 214 stores across 90 cities and towns in India covering around 16 million sq.ft. of retail space. 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 Is se sasta aur achcha kahin nahin


It sells variety of merchandise at affordable rates, the prices of which it claims are lowest in the city. Usually the items are clubbed together for offers as on the lines of Wal-Mart and Carrefour, offer weekend discounts and works on the same economy model as Wal-Mart and has considerable success in many Indian cities and small towns. 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. Vision Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.Page 25 of 55 SIP/BIG BAZAAR/11BSPHH010034

Mission a. 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. b. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments for classes and for masses. c. We shall infuse Indian brands with confidence and renewed ambition. d. We shall be efficient, cost- conscious and committed to quality in whatever we do. e. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.

Marketing Mix

Product

MarketingBundling Price

Mix

Promotion


I.

Product LineHOME & APPARELS FOOD FARM PRODUCT CHILL STATION PERSONAL CARE

Denims & T-Shirts Staples Fruits Soft Drinks Shampoos Fabric & Cut Ready to eat Vegetables Packaged Juices Detergents piece Ready to cook Imported Fruits Milk Items Soaps Formal Wear International Dairy Products Frozen Foods Liquid wash Casual Wear Food Ice Creams Creams Party Wear Spices Deodorants Ethnic Wear Imported Bazaar Home cleaners Accessories Tea & Coffee Utensils Under Garments Plastics Night Wear Crockery Dress Materials Sundries Sarees

(From Source)

II.

Price Mix a. Value pricingPage 27 of 55 SIP/BIG BAZAAR/11BSPHH010034

Big Bazaar promises its consumers the lowest available price without waiting for discount coupons. It offers everyday with low price products than other retail shops. b. Promotional pricing It is a known fact that big bazaar offers products at low price. In addition to this big bazaar understands the needs of the consumers and respecting their feelings it provides heavy discounts on special occasions (eg, diwali, ugadi, eid, and other festivity occasions)

In addition to these it also offers financing at low interest rates .


c.

Differential pricing Time pricing that is difference in rates based on peak and nonpeak hours or days of shopping is also one kind of strategy.

Big Bazaar

announcedPage 29 of 55 SIP/BIG BAZAAR/11BSPHH010034

The Great Exchange Offer with a Bring anything old and take anything new concept which started from the 16th of Feb 2008.

d.

Bundling Bundling is a marketing strategy that involves offering several products for sale as one combined product.


Guerrilla Marketing StrategyBig Bazaar has launched new marketing strategy which is based on Guerrilla Marketing. Guerrilla marketing warfare strategies are a type of marketing warfare strategy designed to wear-down the enemy by a long series of minor attacks, using principles of surprise and hit-and-run tactics. Attack, retreat, hide, then do it again, and again, until the competitor moves on to other markets. Herein guerrilla force is divided into small groups that selectively attack the target at its weak points. Corporate like Coke, Pepsi, etc have been using the same for quite some time now and the latest entrant is Future Group- Big Bazaar, Pantaloons, Future Bazaar, eZone are all part of this group and they are taking on the biggies like Shoppers Stop, Lifestyle, and Tatas Westside. In order to do the same, Future Group have come up with 3 catchy/cocky and cheeky ad campaigns which surely do catch our eyes and surely one cant resist appreciating the same.

Keep West-aSide. Make a smart choice!


Shoppers! Stop. Make a smart choice! Change Your Lifestyle. Make a smart choice!

Here it is worth mentioning about the Jail a Jockey campaign started in Andhra Pradesh. It earned huge publicity and this promotional event where the popular radio jockey would be released only if a certain number of people turn up at big bazaar. It was a success. BUSINESS SEGMENTATION Big Bazaar is a hyper market and it caters to all kinds of needs of the people under one roof. It offers almost every kind of product. Broadly it has divided itself into:


Food Bazaar Fashion at Big Bazaar e-Zone Furniture Bazaar Electronic Bazaar

The whole of big bazaar is divided into such segments. However big bazaar in order to reach out to a larger audience and every audience it has also opened up few segments separately (e.g. Food Bazaar, Fashion at Big Bazaar, e-zone etc). The rationality behind this is big bazaar definitely looks for expansion so that they can reach out to more new consumers. But setting up a big bazaar mall requires a lot of money, space and investment. Even though we ignore the monetary aspect for a while we cannot ignore the space factor. This is the biggest challenge as the world is running out of land space. So the answer to these entire questions is to break up and set up all the segments of the company individually. This would create a wider reach and would help in increasing the sales for the company. By doing these it helps the consumer a lot. For instance if a consumer wants to buy clothes he/she can go to dedicated store of FBB and not visit the big bazaar as a whole. Thus, that consumer will not have to bear the hustle and bustle of such a hypermarket and will be able to shop in a less crowded environment.


CUSTOMER RELATIONSHIP

This is a very important aspect of the company. Everything that you do in your company arrives and stops here. A sound and healthy relation with your customer decides your business. It tells you whether you are able to retain and add new customers or it is other way around. With this respect there are customer care department that attend all the queries of the customers. It is obvious that when such a huge population visits your store there are bound to be default in services. To address that effectively and to make sure that customer doesnt get dissatisfied, setting up of customer service is mandatory. Big bazaar has the option where the consumer can return the goods in case of default, provided the consumer can validate their purchase. To build the reliability of the brand and make consumer connected with the company big bazaar freely distributes their card to its consumers. Through this points get added with each purchase and the consumer can redeem the points whenever they feel the need. Through this consumer feel the necessity to shop from the store and is less likely to move to some other market as they are the privileged customer of big bazaar. The sales persons behaviour is also of grave importance and thus they should be polite and be able to guide the consumer. Regular visitor develops a deep bonding and trust with the sales person and they are expected to guide them properly and effectively. Salesperson also addresses them personally and makes them feel that they are important. It enriches the shopping experience of the customer and they keep coming back.

BRANDING PRACTICESThe company have created the brand image of the brand through its catchy tagline Is se sasta aur achcha kahin nahin. The main target was to work on the mind of the consumer and it was well successful on that. It reflects that entrepreneurship and simplicity are the essence of character of Big Bazaar.Page 34 of 55 SIP/BIG BAZAAR/11BSPHH010034

Moreover it made its presence felt through heavy advertisement on almost every form of media. This made the consumer register well about the company. It worked on the mind of the consumers. Branding has also been done by displaying premium products of branded company such as reebok, nike, fastrack etc. Consumers feel that they can shop for high ended branded products in big bazaar.

COMPETITOR ANALYSIS

The major competitors of big bazaar would be Reliance Fresh, More, Spar, Heritage Fresh Ltd. Visiting these stores personally helped me to study and compare the visual elements and overall scenario of the store. Talking about SPAR , overall impression on the store was nice. Everything was well organized and managed as well. Black boards were hanging from the top as dropdowns. It made easy for the consumers to identify the sections or the categories. ll the discounts were captioned under . It highlighted the Best Deal price and left an impression on the consumers. Throughout the store all the products which had huge discounts or whom they want to promote so as to increase sales in that particular segment were being highlighted frequently. Thus, it made sure that the offer does not get unnoticed. Catchy captions for new products that is being launched. (For eg. T-zing the caption goes like this-I am new, try me) They have also pasted Best Deal flex on the walls. It is also catching a lot of attention. Proper utilization of space was also been observed. The counters were placed diagonally and not going by the traditional way setting up at the exit in a parallel manner. In the food segment in had raw meat as an option. Big bazaar doesnot have that. It does not have any separate non-veg items in the store.Page 35 of 55 SIP/BIG BAZAAR/11BSPHH010034

Heritage Fresh also has its own way and identity of its own so as to attract consumers. Discounts were available on many items. Those were being displayed either by wooblers or dropdowns or by danglers. Wherever there was offer it was showcased by Wooblers so that no offer gets unnoticed by the consumers. It also used catch captions such as MUST BUY or HOT BUY The products that were available in the freezer do not keep cool all the time. And this is not for one or two times but it has been observed for many days. Most of the time there are hiccups at the counter either there are less cash counter attendants or they do not have change to pay back the customer.

Reliance Fresh has its own share as well. Store was not organised. There were too much discount labels being used making the self untidy and dirty. The placement of goods in the shelf was also not good. Its cumbersome. Very few cash counters. Overall the visual elements were not attractive enough that it will be having an everlasting impression on the customer.


4. PROJECT SPECIFIC ANALYSIS

Questionnaire on Visual MerchandisingQ1. How often do you visit Big Bazaar? Weekdays Weekends Twice a week Once in a month Once in 3 months re you aware of the Wednesday Bazaars special offers? Q2. Yes No Q3. If YES then through which medium did you came to know? Newspaper Ads T.V Radio Friends Others ____________________ Reasons for visiting Big Bazaar on Wednesday. High Discounts and offers Less CrowdedPage 37 of 55 SIP/BIG BAZAAR/11BSPHH010034

Q4.

Holiday Lucrative Offers Q5. Are there enough displays and promotional offers in the store which communicates Wednesday Bazaar offer? Yes No Q6. What is so different while shopping on Wednesday Big Bazaar? Ambience Heavy Discounts Others ____________ Q7. Q8. Q9. Did you face any problem in reaching for the items in the rack? Yes No Do you find the same products in the store that you see in the advertisements? Yes No What do you mostly purchase on Wednesday Big Bazaar? Food Items Apparels Home Care (PUC) Vegetables &Fruits Electronics/Furniture What according to you is most important for visiting in Wednesday Bazaar"? Discount Banners Easy accessibility of products Store Ambience Prices Overall shopping experiencesPage 38 of 55 SIP/BIG BAZAAR/11BSPHH010034

Q10.

Q11.

How would you rate the advertisements you have seen on Wednesday Bazaar? Excellent Average Very Good Poor Good While shopping in Wednesday Big Bazaar what helps you the most? Store Layout Banners Discount logos Dropdowns Staff Interaction

Q12.

Q13. Will you visit again on Wed Big Bazaar? Yes No

ANALYSISThe analysis of the above questionnaire is given below with meaningful interpretation. Each question has been entertained separately and has been vividly explained with the help of pie charts and bar graphs. While interpreting I made sure that i not only present a holistic picture of the report but I also add suggestions stating what the company should do and how it can increase the sales.


Question 1Options Weekdays Weekends Twice a Week Once a month Once in a 3 Month3% 14% Weekdays 23% Weekends Twice a Week 57% 3% Once a month Once in a 3 Month

6 47 7 113 27

From the above pie chart it is cleared that most of the respondents in the survey visits big bazaar once in a month. And the lowest number of respondents preferred visiting on weekdays. We can conclude by saying this that mostly when people come for shopping in big bazaar they shop in bulk thus they feel the need to visit once in a month. Whereas very few respondent turn up during weekdays. The reason being office, household work and there busy schedule. People turning up during weekends showed 2 highest response. It may be because of the fact that it is a holiday and people have leisure time and thus they can afford to come to big bazaar and do their shopping .

nd

Question 2Options Page 40 of 55 SIP/BIG BAZAAR/11BSPHH010034

Yes No

185 14

200 180 160 140 120 100 185 80 60 40 20 14 Yes No Series1 0

From the result it is clear that most of the respondents are aware of the Wednesday Bazaar offer. It signifies that Big Bazaar promotion have been successful in registering themselves in the minds of the consumers. The reach to people has been good and it has surely helped in attracting the mass to the stores. Question 3Options Newspaper Ads T.V Radio Friends Others 119 57 4 20 0


0% 2% 10% Newspaper Ads 29% T.V 59% Radio Friends Others

After this survey firstly, we came to know that most of the respondents are aware of big bazaar and its offers through newspaper ads. Big bazaars decision to promote through newspaper has really helped. Secondly, we can see people also got registered in their mind through television. Thus, I believe we need to continue to do heavy promotion through these medium the most, as the response of the people is higher through these two mediums. Question 4Options High Discount & Offers Less Crowded Holiday Lucrative Offers Others 106 9 0 44 41


21% High Discount & Offers Less Crowded 53% 22% Holiday 4% Lucrative Offers Others 0%

From the above survey it is pretty evident that most of the respondents come to big bazaar for heavy discounts and special big bazaar offers. This is driving force for the consumers. So the company should look for more exciting and innovative offers at minimum prices. This is what consumers expect while coming to shop in big bazaar. If the company rises to the expectation of the consumer then they can surely increase the sales. And it is also worth mentioning that the way these high discounts are showcased in the store. It is through the various visual merchandising techniques. Thus, we should keep using those techniques and should not compromise on that.

being

Question 5Options Yes No 146 54

160 140 120 100 80 146 Series1 60 40 54 20 0 Yes No


Majority of the consumers who shops in the big bazaar do agree that there are enough displays in the store and that helps them in viewing the new offers rather what big bazaar has to offer to the consumer. We cannot ignore the fact there are 27% respondents who feel the other way round. Thus we should give more emphasis on displays and promotional offers. Question 6Options Ambience Heavy Discounts Others 43 50 107

22% Ambience

25%

Heavy Discounts 53% Others

Here we can see more that 50% respondent gives importance to the discounts that big bazaar has to offer to its customer than the ambience and other things. Thus this portion is of great importance and discounts should always be a part of big bazaar. Thus, understanding the importance of discounts we should not only make the discount logos visible to the consumers but in practice we should provide with high discounts.


Question 7Options Yes No 145 54

160 140 120 100 80 145 60 40 54 20 0 Yes No Series1

Previously we have seen that that maximum agreed to the fact there are enough displays and promotional offers and thus in these question we see that a large number agrees that they dont find any problem in reaching out to the products in the store. They can easily locate and find what they need. Question 8Options Yes No 93 107


110 105 100 54% 95 90 93 85 Yes No Series1

This survey is alarming in nature because here more than half of the respondent have said that they do not find the same amount of product in the store as they see in advertisement. While carrying out the survey when i personally asked the consumers about this, many replied sometimes either the same product is not available or they are out of stock. Question 9Options Food Items Home Care(PUC) Electronics/Furniture Apparels Vegetables& Fruits 174 11 5 1 9

5% 2%1% 5% Food Items Home Care(PUC) Electronics/Furniture 87% Apparels Vegetables& Fruits


Here in this survey we can see that the respondents mostly come to purchase food items than any other products on Wednesday big bazaar. Thus, seeing its relevance, more and more discount offers and promotion should cater to this particular section. Through this company will be able to satisfy most of its consumer who comes to visit big bazaar and in addition it will also attract new consumers as well. Question 10Options Discount Banners 23 Easy accessibility of products 33 Store Ambience 50 Prices 66 Overall Shopping experience 28

Discount Banners 14% 11% Easy accessibility of 17% products 33% Store Ambience 25% Prices Overall Shopping experience

Here in this survey we can see that all the option has its equal importance as the percentage contribution of every option is very close to each other. Consumers get affected by the cumulative effort of all the above options. Thus, we should focus on all of these and should not ignore any. If any of this isPage 47 of 55 SIP/BIG BAZAAR/11BSPHH010034

ignored then it will definitely affect in attracting the consumers or even retaining the consumers. Question 11Options Excellent Very Good Good Average Poor 5 177 6 8 4

2% 3%4%2% Excellent Very Good Good 89% Average Poor

Through this survey it is pretty much clear that consumers are well satisfied with the advertisement that they see in the Wednesday Big Bazaar. The overall response has been very good whereas a very little percentage of people are of the view that the advertisement is poor. Thus, the company should keep on advertising the product of the store in the manner they have been doing.


Question 12Options Store Layout Discount Logos Staff Interaction Banners Dropdowns 96 24 41 22 17

11% 9% Store Layout 48% Discount Logos 20% Staff Interaction 12% Banners Dropdowns

Most of the respondents felt that, the way the store layout has been organised in big bazaar helps the consumer most while shopping. Others factors cannot be also ignored as such because all of these are interconnected and helps overall. Thus, the store layout should be more attractive better co-ordinated and the consumer can have a hurdle free shopping experience.Question 13 Options Yes No 185 14


7% Yes 93% No

Lastly in this final question 93% have show there interest in returning back to the store. This is surely a positive response from the consumer and would boost up the confidence level of the company.

MY FINDINGSAfter the survey I found out that most of the respondents visit Big Bazaar once in a month and almost 23% of the respondents visit big bazaar on weekends. Most of the people are aware of Wednesday Bazaar and they came to know about this largely by newspaper. Thus, the company should keep a huge focus on news paper and should not ignore other means of communication. We have also seen that the respondents are able to find products in shelves; moreover they can easily spot the products. This is possible through the help of various visual merchandising techniques (such as, dropdowns, danglers, wooblers, signages, banners etc.) with the help of these techniques consumer can easily spot the goods and special offerings made by big bazaar. Let it be right from outside huge banners or the ones that are in the store itself. Consumers have highly rated the shopping experience in the big bazaar and majority have expressed their willingness to return to big bazaar in future.


Thus, to conclude i would say that through this survey the importance and necessity of visual merchandising has been felt. So if the company rightfully spent their money in visual merchandising department then it surely push up the store and category sales or it can be other way round.

5. CONCLUSION & RECOMMENDATION Conclusion

Big bazaar is a major shopping complex for todays customers. It is a place where customers find variety of products at a reasonable price. Big bazaar has a good reputation of itself in the market. It has positioned itself in the market as a discounted store. It holds a huge customer base. The majority of customers belong to middle class family. The youth generation also likes shopping and moving around big bazaar. Volume sales always take place in big bazaar. Impulse buying behaviour of customers comes in to play most of the times in big bazaar. Visual merchandising when used effectively is no doubt, a powerful tool to entice customers in making a purchase decision. Retailers can attract more customers and increase sales by proper use of visual merchandising techniques. It definitely gets consumers attention and affects the sale of the company directly or indirectly. It helps the consumer to find out the goods, helps to highlight the special offer products. The placement of the Hero Offers is also crucial and with right visual merchandising decision, the company can increase the sales. I feel that the company should give a lot of importance to the billing department. While conducting the survey many of the respondents have shown their dissatisfaction for the billing department. It is mainly because of the long queue during busy hours. Sometimes it has also been observed that though there are counters available but the respective staffs are missing. ThisPage 51 of 55 SIP/BIG BAZAAR/11BSPHH010034

gets noticed by the public. So, big bazaar staff should give lot of importance on this and reduce the waiting time and it will automatically lead to efficiency. With new competitors entering into India Retail Sector such as Bharti WalMart, Tesco and many more, it becomes even more necessary for Indian domestic retailers to focus and give importance to visual merchandising techniques in order to create a good customer shopping experience and use it as a customer retention tool. Through effective use of visual merchandising a store can improve its image and also build a brand that helps in achieving long term goals of the retailer.

Recommendationsa. Danglers and wooblers should not display so aggressively that it looks cluttered and work as blockage. b. Colours that are being used in promoting product should be catchy so that it attracts consumers attention. c. It should use innovative and catchy captions for products.

6. LEARNING FROM SIPMy first interaction with my company guide and RBM of Big Bazaar left an impact over me. He talked with me and asked me what do i know about retail industry and what is retailing. Well he was not interested in bookish definition and went on to explain what is retailing to him in simple term. He said, Retail is a place where small things of different varieties are being sold so as to generate big revenue for the company. He didnt stopped there he explained how retail works and especially how big bazaar functions. He explained what are the various factors responsible for the operation of such a huge hypermarket? That was indeed a great help for me to start up.Page 52 of 55 SIP/BIG BAZAAR/11BSPHH010034

Over these 3 month period i was not restricted to my project only. Since my project primarily focused on Wednesday bazaar, so Visual Merchandising Head of Hyderabad assigned, me the job of observing what is happening on the store during that day. On Tuesday I use to get the list of all the offers that will be there on Wednesday and also the Hero Offer. I use to visit each and every store of Big Bazaar on Tuesday to see how the preparation for the next day is happening. It included the signages, dropdowns, display pattern and other things. I needed to observe whether the printing part is ready or not. At the end of the day I need to make a complete report of all the Big Bazaars and sent it to RVM of Big Bazaar. This was the delegation part which is to come from the head office of big bazaar and that was being followed by rest of the big bazaar offices. Now the next day my duty was to see how well all the big bazaar offices are implementing the delegated duties. Are there any footfalls or not. Again I had to make report and send it to the RVM. During this period i made many officials of the company right from Store Karta to VM of other big bazaar offices. I came to know the difficulties and challenges they had to face. Not only that they also helped and guided me how to conduct my survey and how I should approach the customers while asking questions to them. On a special event organised by big bazaar was assigned the duty to help and co-ordinate the sales people of the footwear store in big bazaar. During this time I came to a personal contact with the consumers. This was the time when I actually got a taste of real selling. I communicated with customers in person. Being the head of the sales team I was making sure that they all delegate their duties properly and also the fact that they are taking breaks systematically. I use to release them for lunch breaks. Understanding the customer rush and judging the crowd I use to send them for breaks, so that the break does not affect the sales. Apart from the company I also appeared for NCFM exam (A commercial Bank: Beginners Module). The inspiration to appear for this exam came from my roommates who were appearing for a Mutual Fund Distributor course. It was then when I noticed about the beginners module and since I have interest in banking sector I decided that I will appear for the exam. I studied and prepared myself for the exam and I am happy to pass the Exam.Page 53 of 55 SIP/BIG BAZAAR/11BSPHH010034

I learned a lot while interacting with the people to fill up the questionnaires. My experience: Exposure to a large group of people Rejection Rude and polite people Language Barriers

7. REFERENCESa. b. c. d. e. f. g. h. i. https://www.google.co.in/ http://www.iseindia.com www.wikipedia.com www.economics times.com www.futuregroup.com http://en.wikipedia.org/wiki/Retailing_in_India http://en.wikipedia.org/wiki/Big_Bazaar http://www.rncos.com/Retail%20industry.htm http://indiareviews.wordpress.com/2007/05/03/big-bazaars-guerrillamarketing/ http://www.legalindia.in/foreign-direct-investment-in-indian-retailsector-%E2%80%93-an-analysis

j.


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