Final Proj Bb

7/30/2019 Final Proj Bb

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CUSTOMER SATISFACTION WITH THE SERVICES AND LOYALTY PROGRAMS OF BIG BAZAAR

PESIT, Bangalore Page 1

TABLE OF CONTENT

PART- A

CHAPTER TITLE PAGE

NO

CHAPTER 1 INDUSTRY PROFILE 1-28

CHAPTER 2 COMPANY PROFILE 4-28

2.1 Background and inception of the company 4

2.2 Busines description 5

2.3 Vision, mission and Quality Policy 6-7

2.5 Future Group Pantaloon, Controlled by Aditya Birla 8

2.6 BIG BAZAAR , Products/ Services profile Area of

Operation

9-11

2.5 Ownership pattern 12-16

2.6 Competitors information17-18

2.7 Achievement/Award if any 19-22

2.8 FUNCTIONAL ANALYSIS 23-24

2.8Work flow model 25

2.9 Future growth and prospects 26-28

CHAPTER 3 Mckenseys 7s frame work with special reference to

organizational under study

29-33

CHAPTER 4 SWOT Analysis 34

CHAPTER 5 Analysis of Financial Statement 35-37

CHAPTER 6 Learning Experience 38


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TABLE NO LIST OF TABLES PAGE NO

1.2 BIG BAZAAR 10

1.2 MCKENSEYS 7S SKILLS 32

1.3 FINANCIAL STATEMENT 35

2.1 GENDER OF THE RESPONDENTS 47

2.2 AGE GROUP THE RESPONDENTS 48

2.3 How frequently do you visit Big Bazaar? 49

2.4 ARE YOU HAPPY WITH THE LOCATION OF BIGBAZAAR?

50

2.5 STAFF WERE AVAILABLE IN TIMELY MANNER 51

2.6 STAFFS GREETED AND OFFERED YOU TO HELP 52

2.7 YOUR COMPLAINTS ARE CONSTRUCTIVELYHANDLED

53

2.8 HOW DO YOU FEEL ABOUT PLAYING MUSIC INSIDETHE STORE WHILE SHOPPING

54

2.9 STORE LAYOUT AT THIS STORE MAKES EASY FORTHE CUSTOMERS TO FIND WHAT THEY NEED

55

3.0 STAFFS COMMUNICATE IN THE LANGUGE THAT YOUUNDERSTAND

56

3.1 STAFFS WERE COURTEOUS THROUGH OUT 57

3.1 DO YOU HAVE T24 SIM? 58

3.3 HOW WERE YOU INFORMED ABOUT T24? 59

3.4 IF ADVERTISEMENTS, THROUGH WHICH MEDIA WEREYOU INFORMED?

60

3.5 HOW DOYOU RATE T24 AT BIG BAZAAR? 61

3.7 IF YES, HOW DO YOU RATE THE PAYBACK LOYALTYCARD?

63

3.8 CUSTOMERS ARE NOT MADE TO REEDEM AND ADD

PAYBACK POINTS FOR LONG TIME

64

3.9 WHICH OF THE FOLLOWING SERVICES HAVE YOUUSED MOST FREQUENTLY? 65

4.0 WAS YOUR EXPERIENCE WITH CUSTOMER SERVICEAT THE STORE BETTER THAN YOU EXPECTED IT TOBE,WORSE THAN YOU EXPECTED IT TO ,OR ABOUTYOU EXPECTED IT TO BE?

66

4.1 OVERALL HOW WOULD YOU RATE THE CUSTOMERSERVICE AT BIG BAZAAR?

67


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GRAPH NO LIST OF GRAPH PAGE NO

2.1 GENDER OF THE RESPONDENTS 47

2.2 AGE GROUP THE RESPONDENTS 48

2.3 How frequently do you visit Big Bazaar? 49

2.4 ARE YOU HAPPY WITH THE LOCATION OF BIG

BAZAAR?

50

2.5 STAFF WERE AVAILABLE IN TIMELY MANNER 51

2.6 STAFFS GREETED AND OFFERED YOU TO HELP 52

2.7 YOUR COMPLAINTS ARE CONSTRUCTIVELYHANDLED

53

2.8 HOW DO YOU FEEL ABOUT PLAYING MUSIC INSIDETHE STORE WHILE SHOPPING

54

2.9 STORE LAYOUT AT THIS STORE MAKES EASY FORTHE CUSTOMERS TO FIND WHAT THEY NEED

55

3.0 STAFFS COMMUNICATE IN THE LANGUGE THAT YOUUNDERSTAND

56

3.1 STAFFS WERE COURTEOUS THROUGH OUT 57

3.1 DO YOU HAVE T24 SIM? 58

3.3 HOW WERE YOU INFORMED ABOUT T24? 59

3.4 IF ADVERTISEMENTS, THROUGH WHICH MEDIA WEREYOU INFORMED?

60

3.5 HOW DOYOU RATE T24 AT BIG BAZAAR? 61

3.7 IF YES, HOW DO YOU RATE THE PAYBACK LOYALTYCARD?

63

3.8 CUSTOMERS ARE NOT MADE TO REEDEM AND ADD

PAYBACK POINTS FOR LONG TIME

64

3.9 WHICH OF THE FOLLOWING SERVICES HAVE YOUUSED MOST FREQUENTLY?

65

4.0 WAS YOUR EXPERIENCE WITH CUSTOMER SERVICEAT THE STORE BETTER THAN YOU EXPECTED IT TOBE,WORSE THAN YOU EXPECTED IT TO ,OR ABOUTYOU EXPECTED IT TO BE?

66

4.1 OVERALL HOW WOULD YOU RATE THE CUSTOMERSERVICE AT BIG BAZAAR?

67


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INTRODUCTION

Industry Profile:

Retailing consists of the sale of goods or merchandise from a very fixed location, such as a

department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption

by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be

individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from

manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities

to the end-user.Retail establishments are often called shops or stores. Retailers are at the end of the

supply chain. Manufacturing marketers see the process of retailing as a necessary part of their

overall distribution strategy. The term "retailer" is also applied where a service provider services

the needs of a large number of individuals, such as a public utility, like electric power.

GLOBAL RETAIL SECTOR

Retailing involves all activities accompanying to selling to ultimate consumer for their personnel

family and household use, from a fixed location such as a department store or kiosk, in small or

individual lots for direct consumption by the purchaser. Retailing is the interface between the

producer and the individual consumer buying for personal consumption. Hence the success of

retailing is highly dependent on an efficient supply chain management.

Growth in the Global Retail Market

The confluence of market forces has created an extremely complex climate for the global retail

industry. In mature markets, retail sector is challenged by its inability to grow and maintain profit

margins as a result of a constrained operating environment, market maturity & situation, slow

population growth and more demanding consumers as well as highly volatile consumer behaviour.

According to the research conducted by MVI (Management Ventures Inc) in 2007 found that

modernizing retailers need capabilities in six core areas to win in the changing environment.


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Present State of Global Retail Industry

In 2009 in the retail industry Cutbacks, layoffs, closings and bankruptcy are the hottest retail trends

in 2008. History will point to 2008 as the official beginning of a massive global retail recession.

There were record-breaking declines in sales, inventories, and consumer confidence that caused

revenue losses. As it was predicted in the Deloitte report, 2008 Industry Outlook: A look aroundthe corner, U.S. retailing is challenging due to fears about the housing market, tightening credit, not

to mention high gas prices and cost of living increases.

The big retailers have been compensated top U.S. CEOs in fiscal year 2008 which ranged from a

high of $30.6 million to a low of $1.00, according to Salary.com. Robert Iger, Walt Disney Co.

received $30.6 million and Steve Jobs, Apple received $ 1.00 .As a result the retailers need to

struggle to enhance sales by being creative and competitive but it's not enough to just show up.

History shows that the retailers who survive economic setbacks are the ones who get inventive, get

resourceful, and get noticed. One of the most exciting things to watch in the global retail landscape

is the growth and influence of the BRIC emerging markets (Brazil, Russia, India and China).

China is already a strong global performer and represented in the top 10 most international markets

in our study. Within the primary cities, such as Beijing, Shanghai and Guangzhou in China, there is

a significant concentration of wealth and it is around these cities that much of the international

retail activity is well centred, Mr. Davies underscored. Deloitte in its report, Global retail trends for

2009 has mentioned that successful retailers will find a way to enhance their customer experience,

improving risk management, cutting cost, human resource management, multi-channel approach,

thinking globally and branding.

OVERVIEW OF INDIAN RETAIL SECTOR

India is one of the largest and highly fragmented Retail markets globally with the highest retail

outlets in the world crossing over 12 million with unorganized players accounting for around 5% of

market share. Among this unorganized player more than 80 percent of these run as small family

businesses in small towns and cities in the form of kirana stores, push cart vendor melas and

mandis. In terms of employment the retail outlet in the unorganized sector feeds household of six to

seven members. The big retail players are beginning to realize the significance of this untapped

market by entering these markets and are being accepted by these rural consumers. The rural retail

revenues are estimated to increase by 60 per cent by 2012, with larger share of increase in demand

for consumer and household products.


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Structure of Indian Retail Sector

The Indian retail industry can therefore be broadly divided into organized and unorganized

retailing. Unorganized sector constitutes of the local kiranas, hand cart, the vendors on the

pavement etc. Unorganized retailing is still the backbone of the Indian retail industry contributing

to over 95 per cent of total retail revenues. The organized sector on the other is hand tradingundertaken by the licensed retailers who have registered themselves to sales as well as income tax.

They constitute of corporate backed hypermarkets and retail chains. This modern retail has entered

India as seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer

shopping, entertainment and food all under one roof.

Growth prospects in Indian Retail Sector

The Indian retail industry today is the 5th largest retail destination and the second most attractive

market for investment in the globe after Vietnam as reported by AT Kearney's seventh annual

Global Retail Development Index (GRDI), in 2008.The growing popularity of the Indian retail

sector has resulted in a growing awareness about brands and quality products. As a whole Indian

retail sector has made life convenient, easy, quick and affordable. Indian retail sector, especially

organized retail is growing rapidly, with the customer spending growing in an unpredicted manner.

It is undergoing a metamorphosis. The diagram clearly demonstrates the evolution of the retail

industry. Till 1980 the retail industry continued in the form of kiranas that is unorganized retailing.Later in 1990s Branded retail outlets like Food world, Nilgris and local retail outlets like Trinetra

super market, Apna Bazaar, came into existence. Now big players like Reliance, Bharti, Tata, ITC

and other reputed companies are entering into organized retail businesses.

Key challenges impeding the growth of Organized Retail in India

The key challenges facing Organized Retail in India are acceptance of Organized Retail by the

Traditional retailers (which is leading to tougher regulatory measures by the government), supply

chain inefficiencies, high real estate costs, increasing personnel costs, High cost of real estate, High

stamp duties, Multiple & complex taxation system, high execution risks in terms of store rollouts

and high shrinkage that hits Retailers' Bottom-lines.


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Company Profile

Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both

the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay),

the company operates over 12 million square feet of retail space, has over 1000 stores across 71 cities in

India and employs over 30,000 people.

Background and inception of the company

Future Value Retail Limited is a wholly owned subsidiary ofPantaloon Retail (India) Limited.

This entity has been created keeping in mind the growth and the current size of the companys

value retail business, led by its format divisions, BIG BAZAAR and Food Bazaar.

BIG BAZAAR is a chain of department stores in India currently with 120 outlets. It is owned by

Pantaloon Retail India Ltd, Future Group. It works on the same economy model as Wal Mart and

has been successful in many Indian cities and small towns. The idea was pioneered by entrepreneur

Mr.Kishore Biyani, the CEO of Future Group. Currently BIG BAZAAR stores are located only in

India. It is the fastest growing chain of department stores and aims at having 350 stores by

2010.BIG BAZAAR is the destination where you get products available at prices lower than the

MRP, seeing a new level of standard in price, convenience and quality.


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BIG BAZAAR is not just another hypermarket. It caters to every need of your family. Where BIG

BAZAAR scores over other stores is its value for money propos iron for the Indian customers.

At BIG BAZAAR, you will definitely get the best products at the best prices thats what we

guarantee. With the ever increasing array of private labels, it has opened the doors into the world of

fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports

goods and much more at prices that will surprise you. And this is just the beginning. BIG BAZAAR

plans to add much more to complete your shopping experience.

Business description

Pantaloon retail (India) ltd. The companys principal activity is to operate chain retails stores in

names of BIG BAZAAR, food bazaar, central and pantaloons. The BIG BAZAAR is the discount

store, which offers a wide range of products under one roof. The products include apparels and non-

apparels such as utensils, sports goods and footwear. The company also has its presence into gold

retailing by launching gold bazaar. The companys food bazaar provides a range of food and

grocery products ranging from fresh fruits and vegetables, staples, FMCG products and ready to

cook products. The central offers a chain of stores including books and music stores, global brands

in fashion, sports and lifestyle accessories, grocery stores and restaurants. The pantaloon retail store

focus largely on apparels and accessories


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Future Group was founded on a simple idea: Rewrite rules, retain values. This fundamental

belief created a new kind of marketplace, forever transforming Indian retail. Today our core

values continue to guide how we do business and improve the quality of life of the people we

serve.

At Future Group we are committed to being a catalyst of positive change in the communities,

societies and business sectors in which we operate. We envision Indias transformation into the

legendary 'Sone Ki Chidiya' (golden bird), taking wings once again to reach greater heights.

We take pride in our Indianness. Our belief in inclusiveness for long-term sustainable growth

and economic prosperity evokes trust among consumers, employees, suppliers, partners,

shareholders and the community.

Vision:

To Deliver Everything, Everywhere, Every time, to Every Indian Customer in the most profitable

manner. Future Group shares the vision and belief that their customers and stakeholders shall be

served only by creat ing and executing future scenarios in the consumption space leading to

economic development. They will be the trendsetters in evolving delivery formats, creating retail

realty, making consumption affordable for all customer segments - for classes and for masses. They

shall infuse Indian brands with confidence and renewed ambition. They shall be efficient, cost-

conscious and committed to quality in whatever they do. They shall ensure that their positive

attitude, sincerity, humility and united determination shall be the driving force to make them

successful.


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MISSION:

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

creating and executing future scenarios in the consumption space leading to economic

development.

We will be the trendsetters in evolving delivery formats, creating retail realty, makingconsumption affordable for all customer segmentsfor classes and for masses.

We shall infuse Indian brands with confidence and renewed ambition.

We shall be efficient, cost- conscious and committed to quality in whatever we do.

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

the driving force to make us successful.

VALUES:

Indianness: Confidence in ourselves.

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

Respect & Humility: To respect every individual and be humble in our conduct.

Introspection: Leading to purposeful thinking.

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

Valuing and Nurturing Relationships: To build long term relationships.

Simplicity & Positivity: Simplicity and positivity in our thought, business and action.

Adaptability: To be flexible and adaptable, to meet challenges.

Flow: To respect and understand the universal laws of nature.


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Future Group Pantaloon, Controlled by Aditya Birla

TRIMMING DEBT

With two back-to-back deals last year, Biyani did manage to get rid of some of his debt (estimated

at nearly Rs 7,800 crore).

It was the interest costs from this debt that were eating into the groups profits. Biyani had to let go

of a majority stake (50.1 per cent) in the Pantaloon department store (part of Pantaloon Retail) to

A.V. Birla Groups Aditya Birla Nuvo forRs 1,600 crore, with debt of Rs 800 crore also

transferred.

This was followed by the sale of 40 per cent stake in Future Capital Holdings to US-based private

equity firm Warburg Pincus for Rs 420 crore. Another private placement with Bennett, Colemanand Co for Rs 200 crore also helped ease the groups debt position.

Through these deals, the Future Groups debt burden has been slashed by nearly Rs 6,000 crore,

leaving about Rs 1,800 crore to be cleared. Biyani started selling stake in his companies from last

year to become debt-free.

But now Biyani is poised for more stake sale to become completely debt-free this year. Next on the

cards is going to be a sale in another non-core business through Future Generali, say companyinsiders.Even the Hong Kong-based Li & Fung, investor and partner in logistics company Future

Supply Chain Solutions, may hike stake from the current 30 per cent, leading to more fund infusion

for the debt-ridden group.

According to an analyst with brokerage firm Motilal Oswal: With even his insurance business out

of the way, Biyani will get rid of the major part of his debt and can go back to his original business

of retail. Retail has always been a highly capital-intensive business and in his hurry to expand

quickly he ran into such huge debt.

It would be hypothetical to talk about whether we would have still have done these deals if FDI

had been allowed last year. But we would still be in the retail business and taken initiatives to build

operational efficiencies. Let us see how the events unfold in future but our family will continue to

be as involved in the business, explains Biyani, who will now be focusing on the core business of

retail.


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BIG BAZAAR

BIG BAZAARis a chain of hypermarkets in India, with more than 100 stores in operation. It is a

subsidiary of Future Group Venture Ltd's, and follows the business model of United States-based

Wal-Mart. Facilities offered by BIG BAZAAR online shopping: BIG BAZAAR has an official

website, FutureBazaar.com, which is one of the most favourite sites among people of India for

online shopping. Future Bazaar is an online business venture of Future Group, which sells an

assortment of products such as fashion, which includes merchandise for men and women, mobile

accessories, mobile handsets and electronics like home theatres, video cameras, digital camera,

LCD TVs, kitchen appliances and many more.

Discounts: Hfte ka sabse sasta din was introduced by the BIG BAZAAR, wherein extra and

special discounts were offered on Wednesday every week, to attract the potential buyers into their

store. Security check: At each exit of BIG BAZAAR, they use alarm systems or Electronic Article

Surveillance system, which detects the products that has attached tags or not.

1. BIG BAZAAR is a chain of hypermarket in India, which caters to every familys needs andrequirements.

2. BIG BAZAAR has released the doors for the fashion world, general merchandise like sports

goods, cutlery, crockery, utensils, and home furnishings etc. at best economical prices.

3. BIG BAZAAR group offers more than 100 stores all over the country with an amalgamation of

Indian bazaars feel and touch with a convenience and choice of the modern retail facilities


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4. The worldwide country chain, BIG BAZAAR, is formed by CEO of Future Group,

Mr. Kishore Biyani. Their basic attraction associated with reasonable prices is their Unique

Selling Price.

5. BIG BAZAAR has become a massive hit with lower middle-class and middle class people as a

major client base.

6. Reflect the look and feel of Indian bazaars at their modern outlets.

TABLE 1.1BIG BAZAAR Hyper mart chain in India

Outlet 140 Outlets

Parent Group Future Group

Owner Kishore biyani

Founded 2001

Head Quarter Jogeshwari, Mumbai

Industry Retail

Tagline Is se sasta aur accha kahin nahi


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Area of operationBIG BAZAARis a chain of shopping malls in India currently with1 29 outlets, owned by the

Pantaloon Group. It works on it the economy model as Wal-Mart and has had considerable success

in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore Biyani, the

head of Pantaloon Retail India Ltd. BIG BAZAAR stores in Metros have a gaming area and kids

play area for entertainment. BIG BAZAAR stores are located all over the India.

Agra Ahmadabad

Allahabad

Ambala

Asansol

Bangalore

Bhubaneswar

Cuttack

Chennai

Palakkad

Kolkata Delhi

Durgapur

Ghaziabad

Gurgaon

Hyderabad

Indore

Lucknow

Kanpur

Mangalore

Mumbai Nagpur

Nasik

Panipat

Pune

Rajkot

Surat

Thane

Thiruvananthapuram

Vishakhapatnam


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OWNERSHIP PATTERNMr. Kishore Biyani, Managing DirectorKishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the GroupChief Executive Officer of Future Group.

Mr. Gopikishan Biyani, Whole time Director

Gopikishan Biyani, is a commerce graduate and has more than twenty years of experience in

the textile business

Mr. Rakesh Biyani, Wholetime DirectorRakesh Biyani, is a commerce graduate and has been actively involved in categorymanagement; retail stores operations, IT and exports. He has been instrumental in theimplementation of the various new retail formats.

Mr. Vijay Biyani, Whole time DirectorVijay Biyani has more than twenty years of experience in manufacturing, textiles and retailindustry and has been actively involved in the financial, audit and corporate governance relatedissues within the company.

Mr. Vijay Kumar Chopra, Independent DirectorV.K.Chopra is a fellow member of The Institute of Chartered Accountants of India (ICAI) by

profession and is a Certified Associate of Indian Institute of Bankers (CAIIB). His bankingcareer spans over 31 years and he has served senior management positions in Central Bank ofIndia, Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI

Mr. S Doreswamy, Independent DirectorS. Doreswamy, is a former Chairman and Managing Director of Central Bank of India andserves on the board of DSP Merrill Lynch Trustee Co and Ceat Limited among others.

Dr. D O Koshy, Independent DirectorD. O. Koshy, holds a doctorate from IIT, Delhi and is the Director of National Institute ofDesign (NID), Ahmadabad. He has over 24 years of rich experience in the textiles and garmentindustry and was instrumental in the setting up of NIFT centres in Delhi, Chennai andBangalore. He is a renowned consultant specializing in international marketing and apparelretail management.

Ms. Bala Deshpande, Independent DirectorBala Deshpande, is Independent Director, Pantaloon Retail (India) Ltd. and also serves on the

boards of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing

Ltd, among others

Mr. Anil Harish, Independent DirectorAnil Harish, is the partner of DM Harish & Co. Associates & Solicitors and an LLM fromUniversity of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bankand Hinduja TMT, among others.The BIG BAZAAR operates in a competitive environment. For each line of business, they facecompetition from established national and regional companies.


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INFRASTRUCTURE

Its a four floored building.

Ground floorfood bazaar, PUC, wellness.

i) Food bazaar: its a department under BIG BAZAAR where different household products

were sold. Customers use to purchase food and non-food items for whole month. The

availability of product in such a way that there should not be any unavailability of product in

the store.

ii) PUC: this department having all kind of plastic, utensil and crockery items. This is one

separate department from food bazaar.

iii) Wellness and beauty: all cosmetic items available in this department. Products in this

department are: deodorant, perfume, creams etc.

1st floor- apparels,footwear,toys

i) Apparels: in this sect ion all fashion clothing are available. In this section all mens, ladies

and children material are available. Different brands are also available in this section. DJ&C,

AFL, signature, knighthood these are the most popular brand available in this section.

ii) Footwear: this section contains all kind of shoes, slipper and sandals. In this particular

section different shape and size of products are available.

iii) Toys: all kind of children toys, electronics gadget are available in this section.

2nd floorelectronics , home bazaar, depot , home linen

i) Electronics bazaar: this is one of the biggest sections where all kinds of electronic gadgets

are available. in this department different brand of television ,camera, music, laptops areavailable.

ii) Home town: this particular department having different items which used in houses for

maintaining interior . In this department all furniture, kitchen, bed room, items are available .

This is a store in store (SIS).

3rd floorfood court, F123, star sitara


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i) Food court: where all types of food is available. Customers can order for different kind of

food and its ready within fraction of minutes.

ii) F123:its a gaming zone for the children where they can play different at very low price.

Unlimited gaming is possible in this game zone.

iii) Star sitara: its a saloon where customer for different hair cut as well as facial. This saloon

is open for both men and women. This is store in store (SIS)

4th floor - office and fun zone

i) Office: offices for different department are made at fourth floor where all higher authorities

are available. All find of marketing and HR activities done in this floor.

ii) Fun zone: this area is kept for employees working in BIG BAZAAR. Tea and lunch timing

are written in fun zone. Employees can read news paper, magazines, watch TV if anything

important news, play games like chess, carom for a particular period.

Each floor consists of billing facility : there is billing facility according to department

wise where customer can do immediate billing or can go for main billing counter at

ground floor

Parking facility- 2 wheelers and 4 wheelers: underground parking facility is available in

BIG BAZAAR, banashankari. Parking facility is free of cost.

Luggage maintenance near the entrance: customers are not allowed inside the BIG

BAZAAR with their luggage items. For luggage maintenance there is separate

department at the entrance of BIG BAZAAR. This department came under CSD.


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COMPETITORS OF BIG BAZAAR

Retail sector is a fast growing one. Hence pantaloon

1) RELIANCE FRESH

Reliance Fresh is the convenience store format which forms part of the retail business of

Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to invest in

excess of Rs 25000 crores in the next 4 years in their retail division. The company already

has in excess of 560 reliance fresh outlets across the country. These stores sell fresh fruits

and vegetables, staples, groceries, fresh juice bars and dairy products. A typical Reliance

Fresh store is approximately 3000-4000 square. Feet and caters to a catchment area of 1-2

km. Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint,

Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various

formats that Reliance has rolled out.

2) SPENCERS RETAIL:

Spencer's Retailis one of Indias fastest growing retail stores. It has multiple formats for retailing

food, apparel, fashion, electronics, lifestyle products, music and books. It is owned by the RPG

Group, a major business house.

Established in 1996, Spencers is one of the popular destinations for shoppers in India withsupermarkets, hypermarkets and dailies spread all over India.

3) SUBHIKSHA:

Subhiksha is an Indian retail chain with more than 1400 outlets selling groceries, fruits, vegetables,

medicines and mobile phones. It was started and is managed by R Subramanian, IIM Ahmadabad

alumni. Subhiksha plans to open 1000 outlets by December 2008. He also plans to invest Rs.500

crore to increase the number of outlets to 2000 across the country by 2009.

The name Subhiksha means prosperity in Sanskrit. It opened its first store in Thiruvanmiyur in

Chennai in March, 1997 with an investment of about Rs. 5 lakhs. The retail chain has seen a

considerable growth by offering goods at cheaper rates and thereby increasing its customer base.


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4) Trent (Westside) :

Trent is the retail arm of the Tata group. Started in 1998, Trent operates Westside, one of the many

growing retail chains in India. The foresight of the Tata group, which invested in retail relatively

early, is paying high dividends as retail is one of the booming sectors in India.

The company has a turnover of Rs. 357.6 crores (FY 2005-2006) and currently operates 22 stores in

the major metros and mini metros of India. An international shopping experience, a perception of

values, and offering the latest styles, has created a loyal following for West sides own brand o f

merchandise.

Westside operates stores in Mumbai, Ahmadabad, Bangalore, Delhi, Chennai, Kolkata, Hyderabad,

Pune, Surat, Vadodara, Indore, Noida, Gurgaon, Ghaziabad, Mysore, Jaipur, Lucknow, and Nagpur.

5) Shoppers stop

The foundation of shoppers stop was laid on October 27, 1991 by the K.Raheja corp, group of

companies. from its inception, shoppers stop has progressed from being a single brand shop to

becoming a fashion & lifestyle store IGDS consists of 29 experienced retailers from all over the

world ,which include established stores like Selfridges (England), karstadt(Germany) ,shanghai no

1(china) ,matahar (Indonesia) , takashimaya (Japan) ,c k tang (Singapore) ,manor (Switzerland )

and lamey plaza (Dubai) .this membership is restricted to one member organization per

country/region.


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ACHIEVEMENTS /AWARDS

2012

CISO Award 2012

Future Group was felicitated for using Information security technology in the most effectiveand innovative manner

Golden Spoon Awards 2012

Most Admired Food and Grocery Retailer of the Year for its Private Labels in BIG BAZAAR

Future Group

Retail Professional of the Year for innovation in Private Brands- Mr. Devendra Chawla,

PresidentFood & FMCG Category

ET Retail Awards 2012

FedEx Most Trusted Retailer of the Year AwardBIG BAZAAR

TRRAIN Retail Employee of the Year AwardMr. Jitendra Kalyani, BIG BAZAAR

Recognition by CMO Council, USA and CMO Asia

Master Brand Award - Future Supply Chains

Retail Icon of the Year- Mr. Anshuman Singh, MD & CEO, Future Supply Chains

Bloomberg UTV B-School Excellence Award

Best educational institute in Retail- Future Innoversity

2011

Designomics Awards 2011 - Recognising Businesses that build value through Design

Winning Designomist at the World Brand Congress 2011 - Future Group

CNBC AWAAZ Consumer Awards 2011

Most Recommended Modern Retail Brand of the Year in the Popular Choice category- BIGBAZAAR

Brand Equity's Most Trusted Brands 2011 awards

Most Trusted Retailer - BIG BAZAAR

Images Retail Awards 2011

Most Admired Retailer of the year 2011 in the Home Products Category-HomeTown


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Excellence Awards & Recognition2011 for Finance & Accounting Transformation

through Shared Services

Best Shared Service Centre (SSC) for the category of Shared Service Centre Servicing Clients

in an Indian Sub-Continent- nuFuture Digital India Ltd. (NDIL)


Most Admired Food & Grocery Retailer of the Year: Private LabelsFood Bazaar

Most Admired Retail Professional in Food & Grocery categoryMr. Damodar Mall, Head,

Integrated Food Strategy.

Marketing Excellence Awards 2011 held by Indira Group of Institutes

Best Employer of the Year - Future Supply Chains

DNA and Stars of the Industry Group Innovative B-school Awards

Star News National B-School Award for being an outstanding B School with an IndustryRelated CurriculumFuture Innoversity

Franchise India Expo 2011

Best Food And Grocery Chain Of 2011 - Food Bazaar

Best Value Retailer of 2011 - BIG BAZAAR

Best Brand Licensee In FMCG - Walt Disney Brands By Future Consumer Enterprises

Industry Institute Partnership Symposium

Appreciation for contribution to placement of over 75 rural Below Poverty Line youth at

McDonaldsMr. Ayan Thankur, Future Learning

Star News Brand Excellence (B.E.) Awards

Brand Excellence (B.E.) Awards in the Retail Sector - Future Group

ICAI Awards 2011

CFO - Service Sector categoryMr. C.P.Toshniwal

Food Retail & SCM and Agro Logistics: Summit & Awards 2011

Food Supply Chain Company Of The Year In Retail Category - Food Bazaar

2010

Coca-Cola Golden Spoon Awards 2010

Most Admired Retail Group of the Year - Future Group

Most Admired Retailer in Food Category - Food Bazaar

Most Admired Retailer in Hypermarket Category - BIG BAZAAR


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CNBC Awaaz Consumer Awards

Most Preferred Multi Brand Food & Beverage Chain - BIG BAZAAR

Most Preferred Multi Brand Retail Outlet- BIG BAZAAR

Most Preferred Multi Brand One Stop Shop- BIG BAZAAR


Most Admired F&G Retailer of the Year: Large Formats - BIG BAZAAR

Exchange4media Radio Advertising Awards (ERAA)2010

Advertiser of the year - Future Group

Best Brand Integration on Radio (Retail): GOLD - Fashion@BigBazaar - RJ Style O Meter

Best On Ground Activation for a client (Retail): GOLD - Fashion@BigBazaar - RJ Style O

Meter

Best Use of Radio in a Media Plan: SILVERFashion@BigBazaar - RJ Style O Meter

Best Campaign of the year: SILVER - Future Group Shopping Festival

Asia's Best Employer Brand Awards

HR Leadership award - Mr. Ameet Naik, General ManagerHR FHDL

Employer of the Year (Retail Category) by Indira Group of InstitutesFuture Learning &

Development Limited (FLDL)

2009

CNBC Awaaz Consumer Awards 2009Most Preferred Multi Product Chain - BIG BAZAAR

Most Preferred Multi Brand Food & Beverage Chain - BIG BAZAAR

Images Fashion Forum 2009

Most Admired Fashion Group Of The Year - Future Group

Indian Retail Forum 2009

Most Admired Retail Group of the Year - Future Group

Asia Retail Congress 2009

Retail Marketing Campaign of the year - Future Group - The Great Indian Shopping festival

Retailer of the YearHypermarkets - Future Group


Most Admired Food & Grocery Retailer Of The YearPRIL

Most Admired F&G Retailer of the Year: Large Formats - BIG BAZAAR


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The Gurukul Awards

The Best Upcoming Institute AwardFuture Learning & Development Limited (FLDL)

2008

Indian Retail Forum Awards 2008

Most Admired Retail Group of the yearFuture Group

Most Admired Retail Face of the Year - Kishore Biyani

Most Admired Retailer (Hypermarket)BIG BAZAAR

Retail Asia Pacific 500 Top Awards 2008

Gold Winner - Top Retailer 2008 Asia Pacific

Coca-Cola Golden Spoon Awards 2008

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

Most Admired Food & Grocery Retailer of the YearSupermarkets: Food Bazaar.Most Admired Food & Grocery Retailer of the Year - Hypermarkets: BIG BAZAAR.

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

Beverages & Grocery: Future Group.

Most Admired Food & Grocery Retailer of the Year - Consumer's Choice: BIG BAZAAR.

The Reid & Taylor Awards for Retail Excellence 2008

Retail Leadership Award: Kishore Biyani

Retail Best Employer of the Year: Future GroupRetailer of The Year: Home Products and Office Improvements: HomeTown

CNBC Awaaz Consumer Awards 2008

Most Preferred Multi Brand Food Retail- BIG BAZAAR


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FUNCTIONAL ANALYSISAdministration Department

Store administration comes under Store Manager its functions are store maintenance, House

Keeping, Security etc. Store manager has to control all the activities within the store. He has to

communicate all the departmental managers and assistance departmental managers regarding any

new offers, regarding their targets etc. Sore manager has to see the operation at the store is being

performed in coordination and cooperation he has to communicate with the corporate office

regarding any changes being applied at the store.

Information Technology

This department is responsible for the maintenance of the systems of the stores. All billing

machines their functioning networking with the master machine etc. If there is any problem with

the machine then this department comes into function.

Cashing Dept:

This department is responsible for the collection of sales amount i.e. cash sales, Credit sales, etc

under this department all billing machines of the stores comes. The sales amount collected

throughout the day by the cashiers has to be submitted to the department.

Marketing

This dept is responsible for the marketing of the store in different media like Television,

Newspaper, and Holdings etc. the authorized person has to visit different companies and has to look

after for tie-ups etc.Visual Merchandise:

This department is responsible for the product arrangement at the store with respect to their nature.

The basic function of this dept is it divides the store into several departments based on the nature of

the product and within the department it decides how the products should be arranged by keeping in

mind the customer should not suffer.

Human Resource

Human Resource basically works for the welfare of the employees. It acts to organize the

manpower and work to increase productivity of the employees. Basically Human Resource

performs the functions of Recruitment, Hiring, Induction, Training and development, Performance

appraisal of the employees. Human Resource studies and involves in inter life cycle of the

employee from his joining the organization to till his end from the organization.

CSD (Customer Service Desk): This is the separate unit, which is mainly focuses on customer

service like if the customer find difficulty in finding any product, Customer complaints any

replacement, Customer assistance etc.


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Supply chain management:

Companys supply chain was split into the broad categories of fashion, food and general

merchandise, leading to a more focused approach to businesses, improved service levels, better

customization of logistic and supply chain related needs, and finally deliverables. Further, with new

concepts and lines of business being included during the year, as well

As strategic alliances with other companies, the process of gradually integrating them have either

been completed or close to completion.

The existing supply chain design consists of a Master Distribution Centre (MDC) and city

warehouses upgraded to Regional Distribution Centres (RDCs) and additional Distribution Centres

(DCs). The company had one MDC and 16 RDCs and DCs .The company has also appointed

leading international and domestic players in the warehouse infrastructure and technology front.

The company also introduced the concept of reverse logistics that looks at setting up a process to

transfer finished goods from the consumption point to the point of origin. This reduces wastage and

can lead to significant cost savings.

On the technology front, all the existing MDCs, RDCs and DCs are live on SAP, thereby

facilitating standardization, real time data management and reporting, as well as optimum

operational efficiencies.

Finance Department:

Companys bank account.

Products/service profile

BIG BAZAAR offers a wide range of products which range from apparels, food, farm products,

furniture, child care, toys, etc. Products of all the major brands are available at BIG BAZAAR.

Also, there are many in house brands promoted by BIG BAZAAR. BIG BAZAAR sold over300,000 pairs of jeans, 50,000 DVD-players and 25,000 microwave-ovens. In all, the fashion,

electronics and travel segments made up about 70% of sales. Last year, these categories made up

only about 60%.


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WORK FLOW MODEL (BIG BAZAAR)

Generally the workflow model at BIG BAZAAR starts with customer and ends with customer.

Depending upon the customers demand BIGBAZAAR predict the sale for particular period and

order to suppliers get all the goods/product from manufacturer and send to the ware house of

BIGBAZAAR, Again from ware house it comes to particular store. Ultimately reach to thecustomer at last.

Logistic is very important department of BIG BAZAAR. It is responsible for procuring the

stock of all the products of the different departments. The logistics department receives the

goods from the warehouse of BIG BAZAAR for the entire south zone is located at hosakot,

Karnataka.

The logistic department receives the stock of different good and verifies the quantity and quality

of the goods received statements which it receives along with the stock. Then it checks for any

damages in the stock received. If there is no damage in the stock received. If there is no damage

in the stock, after recording it in word register dispatches the goods to the respective department

taking the signature of the department manager.

On the other hand if there is any damage in the goods or if the goods does not match the detail

given in the goods received statement, it entered in the stock out word registered and send it

back to the ware house along with goods return note giving full information regarding thereason for turning back the goods and defect or damage in the goods the logistic department on

an average to truck load of stock everyday it is the respective department manager who place

for an order to zonal category team at the zonal office through email of stock of goods when

they feel that stock has been replenished.

Logistic department works in co-ordination with all other departments to ensure that the goods

are received and maintained properly and continuously for the smooth functioning of BIG

BAZAAR


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Future growth and prospects:

Aggressive growthFood bazaar

Company planned to grow to over 400 FB stores by 2010 and annual revenues Of $1250

million

To rent properties from shop owners in exchange of profits generated from store

Purchase food grains directly from manufactures

To develop private label brands and devote 60 % shelf space to it.

SUPPLIER

WAREHOUSE

ALLOCATION BASED ON

DEPARTMENTS

PURCHASE ORDER (FROM

ZONE OFFICE)

WAREHOUSE

STORE LOGISTICS

IN WORD PROCESS

(REJECT DAMAZED PIECES)

ON THE FLOOR WISE

OFFER UPDATION

SELLING TO CUSTOMER


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Schemes and Innovations

The introduction of Sabse Sasta Din (Cheapest Day) in the year 2005 was a turning point for the

BIG BAZAAR franchise. As part of this effort, the Republic Day holiday was used to ensure that

consumers visited BIG BAZAAR outlets across the country in large numbers to get required

household items at cheaper rates.

Taking cue from this highly successful concept, another initiative was introduced, named the Juna

do aur naya lo (give old and get new) scheme. In this scheme, c onsumers were asked to bring and

sell old clothes, utensils and other household items in exchange of discount coupons. The concept

proved to be a success yet again as people from across the country responded spontaneously, in

spite of the different preconditions associated with it.

The franchise further inaugurated the concept of Hafte ka sabse sasta din (Cheapest Day of the

Week), wherein Wednesday was designated to be the day when special discounts were offered to

consumers during a week.

Wednesday Bazaar

The concept of Wednesday Bazaar was promoted as Hafte Ka Sabse Sasta Din (Cheapest Day of

the Week). Initiated in January 2007, the idea behind this scheme was to draw customers to stores

on Wednesdays, the day when consumer presence is usually less. According to the chain, the aim of

the concept was to give homemakers the power to save the most.

Sabse Sasta Din

BIG BAZAARintroduced Sabse Sasta Din (Cheapest Day) with the intention of attaining a sales

figure of Rs 26 crore in a single day. The concept became such a hit that the time period for the

offer had to be increased from one day to three days in 2009 (January 24 to 26) and to five days in

2011 (January 22 to 26).

Maha Bachat

The concept of Maha Bachat (Mega Saving) was introduced in the year 2006 as a single day

campaign with attractive promotional offers across the company outlets. Over the years, the

concept has grown to become a six-day biannual campaign. During this campaign, attractive offers

are given in all the value formats including BIG BAZAAR, Food Bazaar, Electronic Bazaar and

Furniture Bazaar.


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The Great Exchange Offer

Introduced on February 12, 2009, The Great Exchange Offer allows customers to exchange their

old goods for BIG BAZAAR coupons. The coupons can be redeemed later for buying brand new

goods from BIG BAZAAR outlets across the nation.

Advertising campaigns and marketing initiatives

In view of the increasing competition in the retail market, BIG BAZAAR has introduced certain

steps to keep itself updated and continue promoting the band.

New Logo

On the occasion of successful completion of 10 years in the Indian retail industry (in 2011) BIG

BAZAARcame up with a new logo for the company with a new tag line that says: Naye India Ka

Bazaar (Market for New India). This replaces the earlier tag line: Isse Sasta Aur Kahin Nahin

(Nothing is Cheaper than Here).

Advertising initiatives

BIG BAZAAR has recently launched a 360-degree promotion drive covering the three prime

media, television, print and social media, to mark the launch of the new logo. The entire media

campaign was developed by Mudra Communications.
http://en.wikipedia.org/wiki/DDB_Mudrahttp://en.wikipedia.org/wiki/DDB_Mudra


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The McKinsey 7S model

The McKinsey 7S model was named after a consulting company, McKinsey and Company, which

has conducted applied research in business and industry. The McKinsey 7S Framework was created

as a recognizable and easily remembered model in business. The seven variables, which the

authors term "levers", all begin with the letter "S. These seven variables include structure,strategy, systems, skills, style, staff and shared values. Structure is defined as the skeleton of the

organization or the organizational chart. The authors describe strategy as the plan or course of

action in allocating resources to achieve identified goals over time. The systems are the routine

processes and procedures followed within the organization. Staff are described in terms of

personnel categories within the organization (e.g. engineers), whereas the skills variable refers to

the capabilities of the staff within the organization as a whole. The way in which key managers

behave in achieving organizational goals is considered to be the style variable; this variable is

thought to encompass the cultural style of the organization. The shared values variable, originally

termed super ordinate goals, refers to the significant meanings or guiding concepts that

organizational members share.

From above 7, three are called hard S these are such as

And other four are called Soft S, namely


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McKinneys 7s at BIGBAZAAR

STRATEGY: Strategy is the plan of action an organization prepares in response to, or

anticipation of, changes in its external environment. Strategy is differentiated by tactics or

operational actions by its nature of being premeditated, well thought through and often

practically rehearsed.

EDLP is the strategy followed by BIG BAZAAR .EDLP i.e., every day low price is the

strategy that has made a mark in todays market. Every Wednesday, BIG BAZAAR have

Wednesday bazaar where the price is promisingly very low.

Short term strategies: short term strategies are formulated from zonal office and operational

strategies are formed and implemented by the store manager and staff at their local level. Short

term strategies includes the discounts, season ending sales, marketing issues, marketing

communication and visual merchandising etc.

Long term strategies: these strategies are formulated by head office. These are further

modified and executed at zonal office.

SYSTEM:

System refers to all the regulation and procedure both formal and informal that complimentand organization.

BIG BAZAAR follows 360 degree performance appraisal system:

Here the appraisal is done once a year. The employees will be rated by

Reporting authority

Self appraisal

Customers

Peer group sub ordinates

Bar code system: now a day BIG BAZAAR is using bar code scanning system. On each

product bar code is printed .at the time of billing cashier need to scan the bar code by bar code

scanner. Automatically the system will grasp all the information regarding product. This

information is displayed on computer screen. It also contains the price of the product. This price

will add to next price scanned by scanner.


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Structure:

VENKATESH

KUMAR (ZONAL

HEAD, SOUTH)

SREEVIJAY (STORE

SUBHASH(ASM, FOOD

DEPT

PREM (

ASM ,GM

RAVISHANKA

R (ASM,FASH

DEPT)

RUPESH SINGH

(ASST STORE

KARTHA

SHIVKUMAR

(DM, PUC

KABIR

BASHA (DM

LUGGAGE,

FOOTWEAR

DEPT)

MARUTH

I (DM,

LADIES

DEPT)

GURURAJ

(HOME FASH

& MENS

ANITHA

(DM,

STAPLES

KARTHIK

(DM,

FOOD

SAGAHI

RAJ (DM,

F&V)

BHARGAV

I (DM,

NF)

TEAMLEADER

TEAMLEADER

TEAMLEADER

TEAMLEADER

TEAMLEADER

RUKUMANGADA(CSD, ASMTRAINEE

RIZWAN

(DM,

FOOD

TEAMLEADER

TEAMMEMBER

TEAMMEMBER

TEAMMEMBER

TEAMMEMBER

TEAMMEMBER

TEAMMEMBER

MALLIKARJUN (DM, T24)

SATYAPRAKASH(VM)

PRAMOD.B (HR)

KANAKARAJ (DM,

ELE

SANDEEP (HEAD

CASHIER)

TEAMLEADER

TEAMMEMBER

MANOJ(ADMIN)

TEAMLEADER

TEAMMEMBER

TEAMMEMBER


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Skills:

Skills refers to the dominant distinctive capabilities and competence of personnel or of the

organisation as a whole the skill possessed by workers can be generally classified as

a) General skills: these skill which should be possessed by each and every employee in order to

carry out the successfully. Skills like problems solving, decision making and communication are

the basic generic skills.

b) specific skills: specific skills are those skills which should be possessed by the employees to

carry out his/her assigned task in this skills like time management ,shop floor management

,building team, leadership and motivation etc

TABLE 1.2

Designation qualification skills experience

Store manager(SM)AND Assistant storemanager(ASM)

MBA, any postgraduation Conducting effectivemeeting, leadership,motivation

8-10 yrs

Departmentmanager(DM) and

Assistant departmentmanager(ADM)

Graduation, MBA Positive thinkingcreativity

6-10yrs

Teamleader(supervisor)

Puc,graduation Interpersonal skills,communication skills,presentation skills

2-3 yrs

Staff:

There are totally 335 employees or staffs. They have out of this, 210 on roll of employees and

35 securities, 35 housekeeping and 55 promoters. The coordination between the staff member is

good which make the corporate perfect. This also helps the store to work in a better way.

Store manager: he is the highest authority in the hypermarket. For every BIG BAZAAR some

sales target is fixed by the zonal office which SM should achieve.

Assistant store manager: ASM is available for each department running the BIG BAZAAR.

For logistics department ASM operation is available while for CSD, ASM-CRM is available to

sort out all the problems of the problems.

Department manager: DM is the in charge of the whole department. DM having some sales

target which should be achieved by him.


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Assistant department manager: its ADM responsibility that all the product should be easily

available to the customers and customers should not hesitate to ask any doubt regarding

products.

Team leader: TL is the boss of sales executives. Its TL responsibility to get work done from

the sales executive.

Sales executive: sales executive were higher by the BIG BAZAAR for selling their brand

products. Anyone can differentiate between sales executive and promotions .sales executive

always wearing uniforms while promoters are available at floor in formals.

Promoters: there are different company products which have been sold in BIG BAZAAR.

Promoters are the person who promotes other company product inside the BIG BAZAAR. Its

their responsibility to keep their company product at front of customers.

Cashier: a person responsible for receiving payments for gods in BIG BAZAAR is called

cashier. Its cashier responsibility that customers should not pay more then what he/she has

purchased.

Security: security is non - selling staff which always standing on the entrance and exit of BIG

BAZAAR. Counting the number of customer into the hypermarket is his/her responsibility.

Style:

The management of BIG BAZAAR practice both top down and bottom up approach. The

employer and employee relationship is participative .the style of functioning is management by

objective (MBO). Organisation goals are further broken into departmental goals, from which the

KRAs (Key Result Areas) are arrived for each individual based on the role he/ she performs.

Shared value:

Indianness: Confidence in ourselves.

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

Respect & Humility: To respect every individual and be humble in our conduct.

Introspection: Leading to purposeful thinking.

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

Valuing and Nurturing Relationships: To build long term relationships.

Simplicity & Positivity: Simplicity and positivity in our thought, business and action.

Adaptability: To be flexible and adaptable, to meet challenges.


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SWOT ANALYSIS

strengths weakness

A powerful strategy

Strong advertising andpromotion

Good customer servicecapabilities

Wide geographic coverage

Strong brand nameimage/company reputation

An attractive customer base

Everyday low pricing strategyas cost advantage over rivals

Competencies and capabilitiesare well matched to industrykey success factors.

Lack of strong supply chainmanagement.

Poor quality of productscompared to rivals

Too narrow product linerelative to rivals

Falling revenue/sq ft

Poor e-commerce facilitiescompared to rivals

opportunities threats

Expanding into newgeographic markets

Expanding the companysproduct line to meet a broaderrange of customer needs

Online sales

Sharply raising buyer demandfor the industrys product

Serving additional customergroups or market segments

Competition from organizedretail players which are in marketand are emerging.

Likely entry of potent newcompetitors

Growing bargaining power ofcustomers or suppliers


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FINANCIAL ANALYSIS

TABLE 1.3

2010-2011 (in crores) 2009-2010(in crores)

Sales (Net of Taxes) 3943.74 5706.07

Operating Income 153.69 228.30

Other Income 17.05 84.63

Total Income 4114.48 6019.00

Profit before Depreciation &Tax

261.66 388.45

Less: Depreciation 146.37 161.88

Profit before Taxes andExceptionalItem

115.29 226.57

Less : Exceptional Item - 12.93

Profit before Tax 115.29 213.64

Less: EarlierYears Income

Tax

2.08 (3.17)

Less: Provision for Taxation 36.54 37.25

Profit after Tax 76.67 179.56

Add: Profit brought forwardfrom

previous year

495.98 380.54

Surplus available for

appropriation

572.81 558.97

APPROPRIATION

Debenture RedemptionReserve

35.00 25.00

Proposed Dividend 20.27 17.13


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DIVIDEND

The Board of Directors of the Company has recommended a dividend of Rs.0.90 (45%) per equity

share (previous year Rs.0.80 (40%) per equity share) and dividend of Rs.1.00 (50%) per Class B

share (Series 1) (previous yearRs.0.90 (45%) per Class B Share) for the Financial Year 2010-11.

Further, outstanding warrants if converted into shares on or before the date of Book Closure

announced for the dividend, would also be entitled to dividend declared by the members at the

ensuing Annual General Meeting.

The dividend, if approved by the shareholders in the Annual General meeting shall entail a payout

of Rs.23.56 crores including dividend distribution tax of Rs.3.29 crores. The dividend is free of tax

in the hands of the shareholders.

EQUITY SHARE CAPITAL

Paid-up Share Capital Equity Capital

The paid up equity share capital (comprising of Class B Shares) of the Company has been increased

from Rs.41,22,85,746/- to Rs.43,41,43,382/- due to the following further issue of capital as follows:

(i) Allotment of 59,28,818 Equity shares of Rs.2/- (Rupees Two Only) each to specific shareholders

of Home Solutions Retail (India) Limited (HSRIL) on 28th August, 2010 as per the Scheme of

Arrangement approved by the Hon''able High Court of Judicature at Bombay.

(ii) Allotment of 50,00,000 equity shares of Rs. 2/- (Rupees Two Only) each at a premium of Rs.

181/- (Rupees One Hundred Eighty One Only) on 9th September, 2010 to Future Corporate

Resources Limited (Formerly known as PFH Entertainment Limited) allottee of promoter group on

exercising their option for equity shares on 50,00,000 warrants allotted to it on 22nd May, 2009 on

preferential basis pursuant to Chapter VII of the Securities and Exchange Board of India (Issue of

Capital Disclosure Requirements) Regulations, 2009.


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Preference Capital

(i) Further pursuant to the same Scheme of Arrangement between HSRIL and the Company

63,47,635 0.01% Compulsorily Convertible Preference shares(CCPs) of Rs.100/- each were also

allotted to specific shareholders of HSRIL on 28th August, 2010. As per terms of the issue these

CCPs were converted into similar number of Equity shares on 31st July, 2011.

Further during current financial year 2011-12 following further issue of capital has been completed

(ii) Conversion of 63,47,635 0.01% Compulsorily Convertible Preference shares(CCPs) of Rs.

100/- each into 63,47,635 Equity Shares of Rs. 2/- each. The said conversion has been done as per

terms of issue of the said CCPs.

Upon conversion of the aforesaid 63, 47,635 CCPs all the CCPs issued in 2010 have been

converted into equity shares and there are no outstanding CCPs pending for conversion.

DEBENTURES

During the year under review, the Company has raised long term funds through Non-Convertible

Debentures aggregating Rs.200 crores. The funds raised were utilised for the objects as stated at the

time of raising funds. This has helped the Company to improve its debt maturity profile and reduce

the cost of debt.

FIXED DEPOSITS

The Company has not accepted any Deposits during the year.


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LEARNING EXPERIENCE

My journey at BIG BAZAAR began on 21st December. From the day I started my project and

till I finished I have learnt many things. It was indeed an exciting experience with all the

departments and CSD.

I would like to say heartily thanks to PES Institute of Technology who have given one of the

good opportunity to learn knowledge in practical environment and along with that I would like

to say heartily thanks to company guide Mr. Pramod .B(Hr) of BIG BAZAAR

I had under gone a glorious 10 weeks project at BIG BAZAAR. And along with that I had

learnt a lot of practical things from the corporate world .from this project I came to know that

customer buying behaviour and taste and priority preferences of customer towards retail sector

and competition level in the sector and along with that I had learnt how management isresponsible for increasing sales and revenue of the company. I also learnt about the different

loyalty programmes offered to the customers and also what management makes to attract the

customers.

I got opportunity to learn many things...

How marketing activities takes place

Customer satisfaction about the product Different loyalty programmes for the customers


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PART B


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GENERAL INTRODUCTION

Customer service is the provision of services to customers before, during and after a purchase.

According to Turban Customer service is a series of activities designed to enhance the level of

customer satisfactionthat is, the feeling that a product or service has met the customer

expectation."Its importance varies by product, industry and customer; defective or broken merchandise can be

exchanged, often only with a receipt and within a specified time frame. BIG BAZAAR will often

have a desk or counter devoted to dealing with returns, exchanges and complaints, or will perform

related functions at the point of sale; the perceived success of such interactions being dependent on

employees "who can adjust themselves to the personality of the guest,"

Customer service plays an important role in an organization's ability to generate income and

revenue. From that perspective, customer service should be included as part of an overall approach

to systematic improvement. A customer service experience can change the entire perception a

customer has of the organization.

Customer support is a range of customer services to assist customers in making cost effective and

correct use of a product. It includes assistance in planning, installation, training, trouble shooting,

maintenance, upgrading, and disposal of a product.

A multi-task position drawing on extensive CUSTOMER SERVICE experience to advance a

proven track record for developing and maintaining key accounts and improving departmental

efficiencies.

Objectives of Customer Services

Provide customers and staff with clear standards and expectations.

Ensure all customer contact reaches an appropriate conclusion

Minimize incidences of repeat contact

Seek to provide a seamless service for customers

Provide equal and easy access to our services at a time, place and channel that meet the

needs of residents, businesses and other stakeholders

Cater for customers needs irrespective of age, gender, physical or financial ability, ethnic

origin, race, religion or geographical location


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Provide a prompt, courteous and knowledgeable response to all customer enquiries.

Equip their staff to provide customers with an excellent standard of service

Enable their customers to provide feedback easily, through complaints, customer surveys,

etc

Use customer compliments, comments and complaints to drive improvements to service

Improve the speed, quality and consistency of response to enquiries by having our

information in a format that can be easily accessed

Customer loyalty programs

Future Group has taken the whole concept of customer loyalty to the next level by joining hands

with PAYBACK. PAYBACK is Indias largest and one of Europes most successful multi-partner

loyalty programs. With PAYBACK, customers can shop, save and get rewarded. This program

enables consumers to collect millions of points across online and offline partners with just a

single card. Customers can accumulate points across Future Group formats, thereby making

shopping rewarding.

What Is PAYBACK?

PAYBACK is Europe's leading customer loyalty program, headquartered in Germany, with a total

of 25.5 million active cardholders in Germany and Poland. In India, PAYBACK consolidated its

position after taking a major stake in I-Mint. Today, with more than 30 partners with 1,500 outlets

and 10 million card members, its the only program which works with market leading pan-India

players from the banking, travel, petroleum and online sectors such as ICICI Bank, HPCL,

Univercell, BookMyShow and MakeMyTrip.

Now that Future Group has become a part of this bandwagon, customers are bound to earn points at

every stepfrom formats like BIG BAZAAR, Food Bazaar, Pantaloons, Central, Home Town,

eZone, Brand Factory and Future Bazaar.

These points can then be redeemed for air miles, movie tickets, air tickets and vice versa.

With Future Group and PAYBACK Shopping is rewarding.


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T24 PROGRAM

Shopping and talking on our mobile phones are among the two favourite activities for all of us in

India. With T24, the company has been able to develop a unique customer value proposition that

combines these interests of the aspirational Indian. Customers will get shopping benefits for talking

and talk-time benefits each time they shop.

T24 (Talk 24) tariff plans reflect the competitive per-second rates being offered for pre-paid

customers on Tata Teleservices Limiteds GSM network. In addition, customers will be rewarded

with free talk-time for every purchase at Future Group Stores starting at Rs.10 to a maximum of

Rs.350. Plans will keep evolving to offer ever-more attractive options to the customer.


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Objectives of study

To study the Customer Loyalty Programs at BIG BAZAAR.

To know the Effect of Loyalty program on customers.

To understand the problems that the customers face with the loyalty programs of BIG

BAZAAR. To understand Customer satisfaction with the service provided at BIG BAZAAR.

To understand the problems faced by the customers with the services provided at the BIG

BAZAAR.

Methodology adopted for study

Observing the working of various departments like Human resource, marketing, logistics,

purchasing.

Discussion with the executives, managers, employees.

Visiting & surfing websites of company.

Meaning

Research Methodology is a set of various methods to be followed to find out various

Informations regarding market strata of different products. Research Methodology is required in

every industry for acquiring knowledge of their products.

Area of study

The study is exclusively done in the area of marketing. It is a process requiring care, sophistication,

experience, business judgment, and imagination for which there can be no mechanical substitutes.

Sources of Data

Primary Source

Secondary Source

Primary Source- The primary data was collected by means of a survey. Questionnaires were

prepared and customers of the BIG BAZAAR at two branches were approached to fill up the

questionnaires. The questionnaire contains 20 questions which reflect on the type and quality of

services provided by the BIG BAZAAR to the customers and about its customer loyalty programs.

The response of the customer is recorded.


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On a grade scale of strongly disagree, disagree, uncertain, agree and strongly agree for each

question. The filled up information was later analyzed to obtain the required interpretation and the

findings.

Secondary Source- In order to have a proper understanding of the customer service and loyalty

programs of BIG BAZAAR a depth study was done from the various sources such as books; a lot of

data is also collected from the official websites of the BIG BAZAAR and the articles from various

search engines like Google, yahoo search and answers.com.

RESEARCH DESIGN

The research design is exploratory till identification of customer services parameters. Later it

becomes descriptive when it comes to evaluating perception of customer service of the BIG

BAZAAR.

Descriptive research, also known as statistical research, describes data and characteristics about

the population or phenomenon being studied. Descriptive research answers the questions who,

what, where, when and how.

Although the data description is factual, accurate and systematic, the research cannot describe what

caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where

one variable affects another. In other words, descriptive research can be said to have a low

requirement for internal validity.

The description is used for frequencies, averages and other statistical calculations. Often the best

approach, prior to writing descriptive research, is to conduct a survey investigation.

Qualitative research often has the aim of description and researchers may follow-up with

examinations of why the observations exist and what the implications of the findings are.

RESEARCH SAMPLE

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take sample from the

universe to know about its characteristics.

BIG BAZAAR.


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SAMPLE SIZE:

The survey was conducted in the city of Bangalore, with 100 customers as respondents.

DATA COLLECTION TOOL

Data is collected from various customers through personal interaction. Some other information is

collected through secondary data also. Data was collected through a structured questionnaire,

LIKERT technique is used. LIKERT scale is simply a statement which the respondent is asked to

evaluate according to any kind of subjective or objective criteria, generally the level of agreement

and disagreement is measured.

LIKERT scaling is a bipolar scaling method, measuring either positive or negative response to a

statement .The questionnaire consists of two parts. The first part consists of three questions

concerning the demographic information of the respondent such as the name, age, and income. Thesecond part consisting of 20 questions exploring the respondents perception about the customer

services of BIG BAZAAR.

RESEARCH LIMITATIONS

The study is only for the BIG BAZAAR confined to a particular location and a very small sample

of respondents. Hence the findings cannot be treated as representative of the entire retail industry.

Respondents may give biased answers for the required data. Some of the respondents did not like to

respond. Respondents tried to escape some statementsby simply answering neither agree nordisagree to most of the statements. This was one of the most important limitations faced, as it was

difficult to analyse and come at a right conclusion.

In my study I have included 100 customers because of time limit.


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DATA ANALYSIS

ANDINTERPRETATION


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Gender

TABLE 2.1

scale frequency Percentage (%) CUMULATIVEPERCENTAGE

male 46 46 46

female 54 54 100

GRAPH 2.1

Analysis:

From the table, and bar chart depicted above, the distribution of the consumers is evident. Of the

100 respondents who answered the questionnaire, 54 were female and 46 were male. It is evident

from the responses and the subsequent tabulation that the number of female respondents was higher

than that of the male respondents in the population under study. Female are the major buyers at the

BIG BAZAAR.

Interpretation:

By analyzing the responses to this question, I as, a researcher, as well as companies, can identify

the distribution in the number of men and women who visit the retail outlets and appropriate

decisions can be made keeping these numbers in mind. The highest number of respondents were

female, as is depicted by the graph and chart presented above. The number of male respondents was

less compared to the female respondents.

Two decisions can be made from the above data collected:

One, more women visit retail outlets than men.

Two, more women are willing to fill out questionnaires and take a survey than men.

Since more women can be inferred to visit retail stores than men, companies can target their

offerings and marketing strategies in two areas. Retail outlets can appeal to the women

customers by offering more products geared especially towards women. They can provide

a shopping experience that women are particularly attracted to. Another way that retail chains can

46

54

42 44 46 48 50 52 54 56

male

female

Series1


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use the above data is to think new techniques so that they can appeal to the men rather than the

women. Since, fewer men visit retail stores as against women, the companies have a large base of

potential customers. By providing products that are geared towards men and by providing a

shopping experience that attract mens they can increase their loyal customers.

AgeTABLE 2.2


18-28 20 20 20

28-38 17 17 37

38-48 28 28 65

48-58 17 17 82

58-78 18 18 100

GRAPH2.2

Analysis

This question is aimed at analysing the distribution of ages of the population that visits the store

under study. The highest number of people visiting the store belongs to the age group between 38-

48. . It can be deduced that most of the people visiting the store regularly are working age group.

The rest of the consumers who visit the store can be listed in the descending order of distribution-

young age group (18-28), senior citizens (58-78) older age group (48-58), middle age group (28-38)

Interpretation:By analyzing the responses to this question, I, as a researcher, as well as companies, can identify

the demographics of the population that visit retail outlets. The highest number of respondents falls

in the age group 38-48. It can be deduced that most of the consumers who visit retail outlets

regularly are the working people. They make up almost more than half of the population who shop

at retail stores.

20

17

28

17

18

0 5 10 15 20 25 30

18-28

28-38

38-48

48-58

58-78

Series1


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1.How frequently do you visit BIG BAZAAR?

TABLE2. 3


Twicein a

week

9 9 9

Once in a week 16 16 25

once in a month 16 16 41whenever the needarises

59 59 100

GRAPH 2.3

Analysis

From the above table and the bar chart it can be depicted that frequency of shopping of the

respondents is evident. Out of 100 respondents who answered the questionnaire, 59 indicated that

they shop whenever the need arises, 16 indicated that they shop once in a month, 16 indicated that

they shop once in a week and 9 indicated that they shop twice a week.

Interpretation

This question is aimed at understanding how frequently customers visits and buy their products or

avail of their services. The frequency points laid before the respondents have been the result of

observation and interview. By analysing the Reponses to this question I, as a researcher, can

identify the number of times customers visit the store in a months time. The highest responses

have been attributed to whenever need arises. It can be deduced that consumers who shop when

ever need arises pose a very different challenges in retail stores. Such customers can be presumed

to have a high disposable income and may buy more lifestyle or fashion products.

9

16

16

59

0 10 20 30 40 50 60 70

Twice in a week

Once in a week

once in a month

whenever the need arises

Series1


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3.Are you happy with the location of BIG BAZAAR?

TABLE 2. 4


yes 92 92 92no 8 8 100

GRAPH 2. 4

Analysis

From the above table and the pie chart it can be depicted that customers are happy with the location

of BIG BAZZAR. From this statement I as a researcher found that 92% of people are happy with the

location of BIG BAZAAR as compare to other 8%.

Interpretation

This question is aimed at understanding whether the customers are happy with the location of BIG

BAZAAR. BIG BAZAAR physical facilities are visually appealing. It means that BIG BAZAAR is

available at most preferred places.

92

8

yes

no

Final Proj Bb

Documents

Transcript of Final Proj Bb