PART A
ORGANISATION ORIENTATION
1
INDUSTRY PROFILE
Retail in India:
Indian retail business values at around US$ 550 billion as of now and about four per cent of it
accounts for the organized sector. A report by Boston Consulting Group (BCG) has revealed
that the country's organized retail is estimated at US$ 28 billion with around 7 per cent
penetration. It is projected to become a US$ 260 billion business over the next decade with
around 21 per cent penetration.
Another report by Business Monitor International (BMI) suggests that enhancing middle and
upper class consumer base has set vast opportunities in India's tier-II & tier-III cities. The
greater availability of personal credit, improved mobility, better tourism et al, are all small,
but significant contributors to the growth of Indian retail industry. Also, more and more
companies are willing to invest in India due to significant growth forecasts on gross domestic
product (GDP) (BMI predicts average annual GDP growth of 7.6 per cent through 2015).
Luxury Retail Soars High
Without wasting any time to react on the Indian Government's decision of allowing 100 per
cent foreign direct investment (FDI) in single-brand retail, luxury brand retailers have
announced their expansion plans in Indian markets. Brands like Virtue, Christian Loubotin,
Armani Junior, among others, will open their exclusive stores at DLF Emporio in early 2012,
while brands like Van Laack and Diesel Black Gold will commence their operations by
January 2012 itself.
A report by CII-AT Kearney revealed that Luxury brands market in India grew at a healthy
20 per cent during 2010 reaching a size of US$ 5.8 billion. It further stated that the Indian
luxury market stood at a value of US$ 4.76 billion in 2009 and is anticipated to be worth US$
14.7 billion by 2015.
Where on one hand the luxury electronics and car segments registered a growth of over 35
per cent, fine dining grew by almost 40 per cent in 2010. Apparel and accessories, watches
and personal care witnessed a substantial growth rate, between 24-30 per cent.
Similarly, India has surpassed the US to become the third largest men's luxury jewellery
market in the world in 2011, stated the researcher Euromonitor International. The researcher's
study projected Indian men's jewellery market at Rs 954 crore (US$ 183.76 million) in terms
of sales and made an anticipation for it to grow 36.4 per cent in 2012.
Retail: Major Developments and Investments
After the US, Germany has also come up in full support of FDI in retail in India. Metro AG,
one of the prominent German retail chains, has shown intentions to venture in Indian markets
along with US' Wal-Mart and France's Carrefour.
Cumulative FDI inflows in single-brand retail trading during April 2000 to September 2011
stood at US$ 44.45 million, according to the Department of Industrial Policy and Promotion
(DIPP).
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Certain developments and investments that took place on the Indian retail canvas recently are
discussed below
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Real estate major DLF's subsidiary DLF Brands has struck a deal with Chicago-based
Claire's Stores Inc to bring the latter to India and open its 75 stores over 2011-16.
Claire's is a specialty retailer which targets young girls through over 3,000 stores
globally.
French retail chain, Carrefour is on an expansion spree in India wherein it is about to
finalise lease deals across 10 to 12 sites in the country to open cash-and-carry
(wholesale) outlets.
The world's largest retailer Wal-Mart will open an innovation lab in Bengaluru by the
end of 2011. The lab would be tasked to drive the US$ 422-billion company's next
generation innovations that impact shopping behavior among the customers.
US fast moving consumer good (FMCG) giant McCormick, that has recently formed
a joint venture (JV) with Indian basmati rice brand Kohinoor Foods, intends to tap
Indian packaged food industry and achieve sales of US$ 85 million in the first year of
operations in the country.
FMCG firm GSK Consumer Healthcare (GSKCH) has made a debut into Indian
breakfast cereal market by launching oats cereal under its flagship brand ‘Horlicks'.
The breakfast cereal market in India is currently dominated by PepsiCo and Kellogg's.
Oral and dental hygiene products manufacturer Colgate Palmolive has decided to
invest Rs 200 crore (US$ 38.52 million) to establish a greenfield facility at an
upcoming industrial estate in Sanand which is being developed by state-run Gujarat
Industrial Development Corporation (GIDC).
Retailing over Internet
Indian retailers and consumer durables companies are joining the web bandwagon with
India's online shopping industry registering phenomenal growth of almost 100 per cent
annually. India has more than 100 million internet users, out of which around half of them are
up for online purchases and the statistics is growing every year, says Google. Furthermore,
the Indian online retail industry would register annual growth rate of 35 per cent to increase
from current size of Rs 2, 000 crore (US$ 385 million) to Rs 7,000 crore (US$ 1.35 billion)
by 2015, according to a leading industry body.
The US$ 10 billion Indian e-commerce market is expanding exponentially (it grew 47 per
cent in 2011 to reach the present size) as rising internet penetration is making customers buy
more and more stuff online. Investors are also betting high in the industry; they poured
around US$ 200 million into Indian e-commerce start-ups in last couple of years.
Retail brands are expected to bring a great transformation in online space. Women's apparel
retail brand Biba and tyre brand Bridgestone have become available online recently. Internet
and Mobile Association of India (IAMAI) expects online advertising to increase by 30-40 per
cent in 2011-12 on back of increased internet usage by retailers.
Government Initiatives
Finally paving way for foreign retailers like Wal-Mart, Tesco and Carrefour to open
independent retail stores in India, the Government has initiated steps towards allowing 51 per
3
cent FDI in multi-brand retail and raising FDI limit in single brand retail from 51 per cent to
100 per cent.
Road Ahead
The BMI India Retail Report for the first quarter of 2012 released forecasts that the total
retail sales will grow from US$ 422.09 billion in 2011 to US$ 825.46 billion by 2015. The
report highlights strong underlying economic growth, population expansion, increasing
disposable income and rapid emergence of organised retail infrastructure as major factors
behind the forecast growth.
The report further predicts that sales through mass grocery retail (MGR) outlets will increase
by 219 per cent to reach US$ 28.14 billion by 2015 while automotive sales would swell by
almost 44.8 per cent from 3.6 million units in 2011 to 5.21 million units in 2015. Consumer
electronic sales are estimated at US$ 29.44 billion in 2011, with over-the-counter (OTC)
pharmaceutical sales at US$ 3.03 billion.
On the similar lines, global consultancy firm PricewaterhouseCoopers expects Indian retail
sector to be worth US$ 900 by 2014 in its report ‘Strong and Steady 2011'.
4
COMPANY PROFILE
Mr Kishore Biyani CEO, Future Group
Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail
formats
in
both
the
value
and
lifestyle
segment
of
the
Indian
consumer
market. Headquartered in Mumbai (Bombay), the company operates over 16 million square
feet of retail space, has over 1000 stores across 73 cities in India and employs over 30,000
people.
The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a
uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch
and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality
and Central, a chain of seamless destination malls. Some of its other formats include Brand
Factory, Blue Sky, AFL, Top 10 and Star and Sitara. The company also operates an online
portal, futurebazaar.com.
Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India)
Limited. This entity has been created keeping in mind the growth and the current size of the
company’s value retail business, led by its format divisions, Big Bazaar and Food Bazaar.
The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other
formats, in over 70 cities across the country, covering an operational retail space of over 6
5
million square feet. As a focussed entity driving the growth of the group's value retail
business, Future Value Retail Limited will continue to deliver more value to its customers,
supply partners, stakeholders and communities across the country and shape the growth of
modern retail in India.
A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a largeformat home solutions store, Collection selling home furniture products and eZone focused
on catering to the consumer electronics segment.
Pantaloon Retail is the flagship company of Future Group, a business group catering to the
entire Indian consumption space.
CORPORATE GOVERNANCE REPORT
Corporate Governance indicates transparency, accountability and reliability on any
organization.
One of the core missions of the organization is to achieve excellence in all spheres, be it
profitability, growth in market share, superior quality of products and services to the
satisfaction of the stakeholders through an efficient and effective code of governance. We
aim at providing fairness, clarity and transparency in all our dealings and increasing the value
of all stakeholders of the Company.
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Future Group
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s
leading business houses with multiple businesses spanning across the consumption space.
While retail forms the core business activity of Future Group, group subsidiaries are present
in consumer finance, capital, insurance, leisure and entertainment, brand development, retail
real estate development, retail media and logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square
feet of retail space in 71 cities and towns and 65 rural locations across India. Headquartered
in Mumbai (Bombay), Pantaloon Retail employs around 35,000 people and is listed on the
Indian stock exchanges. The company follows a multi-format retail strategy that captures
almost the entire consumption basket of Indian customers. In the lifestyle segment, the group
operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value
segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look,
touch and feel of Indian bazaars with the choice and convenience of modern retail.
In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a
hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and
Bangalore. The group’s specialty retail formats include, books and music chain, Depot,
sportswear retailer, Planet Sports, electronics retailer, Ezone, home improvement chain,
Home Town and rural retail chain, Aadhar, among others. It also operates popular shopping
portal, futurebazaar.com. Future Capital Holdings, the group’s financial arm provides
investment advisory to assets worth over $1 billion that are being invested in consumer
brands and companies, real estate, hotels and logistics. It also operates a consumer finance
arm with branches in 150 locations. Other group companies include, Future Generali, the
group’s insurance venture in partnership with Italy’s Generali Group, Future Brands, a brand
development and IPR company, Future Logistics, providing logistics and distribution
solutions to group companies and business partners and Future Media, a retail media
initiative. The group’s presence in Leisure & Entertainment segment is led through, Mumbai7
based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports
Bar and Bowling Co. And family entertainment centers, F123. Through its partner company,
Blue Foods the group operates around 100 restaurants and food courts through brands like
Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato.
Future Group’s joint venture partners include, US-based stationery products retailer, Staples
and Middle East-based Axiom Communications. Future Group believes in developing strong
insights on Indian consumers and building businesses based on Indian ideas, as espoused in
the group’s core value of ‘Indianness.’ The group’s corporate credo is, ‘Rewrite rules, Retain
values.’
CONSUMPTION COSMOS
The retail formats are geared to capture Consumption Spending in key categories in both
value and lifestyle segment. And specialized businesses backed by capital and investments in
developing the necessary consumption infrastructure is helping build a consumption
ecosystem.
This empowers Pantaloon Retail to build a comprehensive business model that can capture a
dominant share of the single biggest business opportunity in India - the consumption space.
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Board Of Directors
Mr. Kishore Biyani, Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group
Chief Executive Officer of Future Group.
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, Whole time Director
Rakesh Biyani is a commerce graduate and has been actively involved in category
management; retail stores operations, IT and exports. He has been instrumental in the
implementation of the various new retail formats.
Mr. Vijay Biyani, Whole time Director
Vijay Biyani has more than twenty years of experience in manufacturing, textiles and retail
industry and has been actively involved in the financial, audit and corporate governance
related issues within the company.
Mr. Vijay Kumar Chopra, Independent Director
V.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
banking career spans over 31 years and he has served senior management positions in
Central Bank of India, Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI.
9
Mr. Shailesh Haribhakti, Independent Director
Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a Certified
Internal Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered
Accountants and past president of Indian merchant Chambers. He is on the Board of several
Public Limited Companies, including Indian Petrochemicals Corporation Ltd., Ambuja
Cement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999.
Mr. S Doreswamy, Independent Director
S. Doreswamy, is a former Chairman and Managing Director of Central Bank of India and
serves on the board of DSP Merrill Lynch Trustee Co and Ceat Limited among others.
Dr. D O Koshy, Independent Director
Dr. Darlie Koshy, a PhD from IIT Delhi and rank holder in MBA headed NID (Ministry of
Commerce, GOI) as Director for 2 terms of office prior to which he was the founding
Chairperson of Fashion Management at the National Institute of Fashion Technology
(Ministry of Textiles, GOI). He is currently the Director General & CEO of ATDC Network
of 58 Institutes / Centres and two premier campuses of Institute of Apparel Management
under the aegis of AEPC (Sponsored by Ministry of Textiles, GOI). Dr. Koshy received the
Delhi IIT Alumni Award for contribution of National Development in 2008. Dr. Darlie
Koshy was also conferred with the “Star of Italian Solidarity” one of the highest civilian
awards of the Government of Italy. Dr. Koshy is the author of three pioneering books
including the much acclaimed “Indian Design Edge”.
Ms. Bala Deshpande, Independent Director
Bala 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.
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Mr. Anil Harish, Independent Director
Anil Harish, is the partner of DM Harish & Co. Associates & Solicitors and an LLM from
University of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd
Bank and Hinduja TMT, among others.
11
ORGANIZATION PROFILE
12
“Nobody Sells Cheaper and Better” Big Bazaar is a chain of department stores in India
currently with 100 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 has democratized shopping in India and is so much more than a hypermarket.
Here you will find over 170,000 products under one roof that cater to every need of a family,
making Big Bazaar India’s favourite shopping destination.
Big Bazaar is a chain of hypermarket in India. Currently, there are 214 stores across 90 cities
and towns in India. Big Bazaar is designed as an agglomeration of bazaars or Indian markets
with clusters offering a wide range of merchandise including fashion and apparels, food
products, general merchandise, furniture, electronics, books, fast food and leisure and
entertainment sections.
Big Bazaar is part of Future Group, which also owns the Central Hypermarket, Brand
Factory, Pantaloons, eZONE, HomeTown, KB's Fair Price to name a few and is owned
through a wholly owned subsidiary of Pantaloon Retail India Limited (BSE: 523574 523574),
that is listed on Indian stock exchanges.
History
Big Bazaar was launched in September, 2001 with the opening of its first four stores
in Calcutta, Indore, Bangalore and Hyderabad in 22 days. Within a span of ten years, there
are now 152 Big Bazaar stores in 90 cities and towns across India.
Big Bazaar was started by Kishore Biyani, the Group CEO and Managing Director of
Pantaloon Retail. Though Big Bazaar was launched purely as a fashion format including
apparel, cosmetics, accessory and general merchandise, over the years Big Bazaar has
included a wide range of products and service offerings under their retail chain. The current
format includes Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar. The
inspiration behind this entire retail format was from Saravana Stores, a local store in T.
Nagar, Chennai
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The stores are customized to provide the feel of mandis and melas while offering the modern
retail features like Quality, Choice and Convenience. As the modern Indian family's favorite
retail store, Big Bazaar is popularly known as the "Indian Walmart".
On successful completion of ten years in Indian retail industry, in 2011, Big Bazaar has come
up a new logo with a new tag line: ‘Naye India Ka Bazaar’, replacing the earlier one: 'Isse
Sasta Aur Accha Kahin Nahin'.
At Big Bazaar, you will get the best products at the best prices—this is our guarantee. From
apparel to general merchandise like plastics, home furnishings, utensils, crockery, cutlery,
sports goods, car accessories, books and music, computer accessories and many more. Big
Bazaar is the destination where you get products available at prices lower than the MRP,
setting a new level of standard in price, convenience and quality.
If you are a fashion conscious buyer who wants great clothes at great prices, Big Bazaar is the
place to be. Leveraging on the company’s inherent strength of fashion, Big Bazaar has
created a strong value-for-money proposition for its customers. This highlights the
uniqueness of Big Bazaar as compared to traditional supermarkets, which principally revolve
around food, groceries and general merchandise.
Big Bazaar has clearly emerged as the favorite shopping destination for millions of its
customers, across the country, its success is a true testament to the emotional bonding it has
established with the Indian customer , on account of its value offerings, inspirational appeal
and service levels. We believe Big Bazaar is a true pan-Indian model that can enter into most
towns in India and democratize shopping everywhere
Strategy
3-C Theory
According to Kishore Biyani's 3-C theory, Change and Confidence among the entire
population is leading to rise in Consumption, through better employment and income which
in turn is creating value to the agricultural products across the country .Big Bazaar has
divided India into three segments:
India one: Consuming class which includes upper middle and lower middle class (14% of
India's population).
14
India two: Serving class which includes people like drivers, household helps, office peons,
liftmen, washermen, etc. (55% of India's population) and
India three: Struggling class (remaining 31% of India's population).
While Big Bazaar is targeted at the population across India one and India two segments,
Aadhaar Wholesale is aimed at reaching the population in India three segment. With
this, Future Group emerged as a retail destination for consumers across all classes in the
Indian society.
Operations
The Big Bazaar Store in Nagpur.
Most Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers
as well as within shopping malls. These stores offer over 200,000 SKUs in a wide range of
categories led primarily by fashion and food products.
Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and is now
present within every Big Bazaar as well as in independent locations. A typical Big Bazaar is
spread across around 50,000 square feet (4,600 m2) of retail space. While the larger
metropolises have Big Bazaar Family centres measuring between 75,000 square feet
(7,000 m2) and 160,000 square feet (15,000 m2), Big Bazaar Express stores in smaller towns
measure around 30,000 square feet (2,800 m2).
Big Bazaar has the facility to purchase products online through its official web page, and
offers free shipping on some of their products.
Innovations
Wednesday Bazaar
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 are observed. According to the chain, the aim of the concept is "to give home
makers 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".
Sabse Sasta Din
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With a desire to achieve sales of Rs 26 Crore in a one single day, Big Bazaar introduced the
concept of "Sabse Sasta Din". The idea was to simply create a day in a year that truly
belonged to Big Bazaar. This was launched on January 26, 2006 and the result was
exceptional that police had to come in to control the mammoth crowd. The concept was such
a huge hit that the offer was increased from one day to three days in 2009 (24 to 26 Jan) and
to five days in 2011 (22-26 Jan).
Maha Bachat
Maha Bachat was started off in 2006 as a single day campaign with attractive promotional
offers across all Big Bazaar stores. Over the years it has grown into a 6 days biannual
campaign. It has attractive offers in all its value formats such as Big Bazaar, Food Bazaar,
Electronic Bazaar and Furniture Bazaar - catering to the entire needs of a consumer
The Great Exchange Offer
On February 12, 2009 Big Bazaar launched "The Great Exchange Offer", through with the
customers can exchange their old goods in for Big Bazaar coupons. Later, consumers can
redeem these coupons for brand new goods across the nation
The acceptance and loyalty that Big Bazaar has garnered over the years was well evident on
26 January 2011. On the day India celebrates its Republic Day; the company honored the
consumer by calling it the ‘Maha Savings Day’. Shoppers at all Big Bazaar and Food Bazaar
outlets across the country were offered products at prices never heard before in the history of
shopping.
The offers were spread across categories from electronics to utensils, from apparel to
furniture and food. This event received tremendous response from the regular and an entirely
new set of shoppers, which resulted in nearly 2 million people visiting the stores on that day.
And most stores were able to post record sales for a single day.
THINGS YOU DIDN’T KNOW ABOUT BIG BAZAAR
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2 million customer’s walk-in each week into Big Bazaar stores
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Collectively, Big Bazaar stores cover nearly 4 Million square feet of space
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In three days between January 25 and January 27 2008, Big Bazaar sold over 100,000
pairs of Jeans and 200,000 shirts
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Big Bazaar has a base of over 1 million loyalty Card members
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More than 160,000 products are sold at Big Bazaar store
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COMPANY HISTORY
1987
1991
1992
1994
1995
1997
2001
2002
2004
2005
2006
Major Milestones
Company incorporated as Manz Wear Private Limited. Launch of Pantaloons
trouser, India’s first formal trouser brand.
Launch of BARE, the Indian jeans brand.
Initial public offer (IPO) was made in the month of May.
The Pantaloon Shoppe – exclusive menswear store in franchisee format launched
across the nation. The company starts the distribution of branded garments through
multi-brand retail outlets across the nation.
John Miller – Formal shirt brand launched.
Company enters modern retail with the launch of the first 8000 square feet store,
Pantaloons in Kolkata.
Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore
and Hyderabad.
Food Bazaar, the supermarket chain is launched.
Central - India’s first seamless mall is launched in Bangalore.
Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus league
clothing and planet retail.
Sets up India’s first real estate investment fund Kshitij to build a chain of shopping
malls.
Future Capital Holdings, the company’s financial is formed to manage over $1.5
billion in real estate, private equity and retail infrastructure funds. Plans forays into
retailing of consumer finance products.
Home Town, a home building and improvement products retail chain is launched
along with consumer durables format, Ezone and furniture chain, Furniture Bazaar.
Future Group enters into joint venture agreements to launch insurance products with
Italian insurance major, Generali.
Forms joint ventures with US office stationery retailer, Staples.
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2007
Future Group crosses $1 billion turnover mark.
Specialised companies in retail media, logistics, IPR and brand development and
retail-led technology services become operational.
Pantaloon Retail wins the International Retailer of the Year at US-based National
Retail Federation convention in New York and Emerging Retailer of the Year
award at the World Retail Congress held in Barcelona.
Futurebazaar.com becomes India’s most popular shopping portal.
Future Capital Holdings becomes the second group company to make a successful
Initial Public Offering in the Indian capital markets.
2008
Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of
a hypermarket format anywhere in the world.
Total operational retail space crosses 10 million square feet mark.
Future Group acquires rural retail chain, Aadhar present in 65 rural locations.
Timeline
2001

Three Big Bazaar stores launched within a span of 22 days in Kolkata,
Bangalore and Hyderabad
2002

Big Bazaar - ICICI Bank Card is launched.

Food Bazaar becomes part of Big Bazaar with the launch of the first store in
Mumbai at High Street Phoenix
2003

Big Bazaar enters Tier II cities with the launch of the store in Nagpur

Big Bazaar welcomes its 10 million-th customer at its new store in Gurgaon
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2004

Big Bazaar wins its first award and national recognition. Big Bazaar and Food
Bazaar awarded the country’s most admired retailer award in value retailing and
food retailing segment at the India Retail Forum

A day before Diwali, the store at Lower Parel becomes the first to touch Rs 10
million turnover on a single day
2005

Initiates the implementation of SAP and pilots a RFID project at its central
warehouse in Tarapur

Launches a unique shopping program: the Big Bazaar Exchange Offer, inviting
customers to exchange household junk at Big Bazaar

Electronic Bazaar and Furniture Bazaar are launched

Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold credit card
program to reward its loyal customers.
2006

Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs 1,37,367
shopping bill. The Sangli farmer becomes Big Bazaar’s largest ever customer.

Big Bazaar launches Shakti, India’s first credit card program tailored for
housewives

Navaras – the jewellery store launched within Big Bazaar stores

The 50th Big Bazaar store is launched in Kanpur

Big Bazaar partners with Futurebazaar.com to launch India's most popular
2007
shopping portal

Big Bazaar initiates the "Power of One" campaign to help raise funds for the Save
The Children India Fund

Pantaloon Retail wins the International Retailer of the Year at US-based National
Retail Federation convention in New York and Emerging Retailer of the Year
award at the World Retail Congress held in Barcelona.
19
2008

Big Bazaar becomes the fastest growing hypermarket format in the world with the
launch of its 101st store within 7 years of launch

Big Bazaar dons a new look with a fresh new section, Fashion@Big Bazaar

Big Bazaar joins the league of India’s Business Super brands. It is voted among
the top ten service brands in the country in the latest Pitch-IMRB international
survey

Big Bazaar initiated the Mega Saving "Monthly Bachat Bazaar" campaign, to
provide exceptional deals on groceries and food items during the first week of
every month.
2009

Big Bazaar opens its second store in Assam at Tinsukia

Big Bazaar initiates Maha Annasantarpane program at its stores in South India – a
unique initiative to offer meals to visitors and support local social organizations

Big Bazaar captures almost one-third share in food and grocery products sold
through modern retail in India

Mahendra Singh Dhoni and Asin, youth icons of India, were chosen as the brand
ambassadors of Big Bazaar

Big Bazaar announced the launch of 'The Great Exchange Offer'

Formed a joint venture with Hidesign to launch Holii, a new brand of handbags,
laptop bags and other accessories.
2010

Future Value Retail Limited is formed as a specialized subsidiary to spearhead the
group’s value retail business through Big Bazaar, Food Bazaar and other formats.

Big Bazaar wins CNBC Awaaz Consumer Awards for the third consecutive year.
Adjudged the Most Preferred Multi Brand Food & Beverage Chain, Most
Preferred Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop
Shop

Big Bazaar connects over 30,000 small and medium Indian manufacturers and
entrepreneurs with around 200 million customers visiting its stores

Big Bazaar opens its third store in Kanpur at Z Square Mall
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
Big Bazaar opens its fourth store in Kanpur at Jajmau which is the largest leather
tannery garrison of Asia

Vidya Balan was chosen as the brand ambassador of Big Bazaar's Price Challenge
exercise

Ranked 6 among the Top 50 Service Brands in India

Big Bazaar forays into the rural wholesale and distribution business through
2011
‘Aadhaar Wholesale’ store at Kalol, Gujarat.

Big Bazaar has come up a new logo with a new tag line: ‘Naye India Ka Bazaar’.

200th store opened in India

Future Group has launched its latest venture, Food hall – a premium food
destination across 10 metros in India

For the convenience of the online customers, Big Bazaar has started free shipping
on all orders above Rs. 1000

Entered into an agreement with Hindustan Unilever to co-develop and co-brand
bakery products, which would be sold exclusively at Big Bazaar stores.
2012:

Big Bazaar entered into a five year multi-million dollar deal with Cognizant
Technology Solutions for IT infrastructure services that support Future Group's
network of stores, warehouses, offices, and data centers.

Partnered with Disney to launch "Kidz Cookies", exclusively for kids across
India.

Big Bazaar is planning to add further value to its retail services by offering Value
added services like grinding, de-seeding, vegetables cutting at free of cost.
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Future Group Manifesto
“Future” – the word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. Future encourages us to explore areas yet unexplored, write rules
yet unwritten; create new opportunities and new successes. To strive for a glorious future
brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.
We, in Future Group, will not wait for the Future to unfold itself but create future
scenarios in the consumer space and facilitate consumption because consumption is
development. Thereby, we will effect socio-economic development for our customers,
employees, shareholders, associates and partners.
Our customers will not just get what they need, but also get them where, how and when
they need.
We will not just post satisfactory results, we will write success stories.
We will not just operate efficiently in the Indian economy, we will evolve it.
We will not just spot trends; we will set trends by marrying our understanding of the
Indian consumer to their needs of tomorrow.
It is this understanding that has helped us succeed. And it is this that will help us succeed
in the Future. We shall keep relearning. And in this process, do just one thing.
Rewrite Rules. Retain Values.
Group Vision
Future Group shall deliver Everything, Everywhere, Every time for Every Indian
Consumer in the most profitable manner.
Group Mission
We share the vision and belief that our customers and stakeholders shall be served only by
creating and executing future scenarios in the consumption space leading to economic
development.
We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments – for classes and for masses.
We shall infuse Indian brands with confidence and renewed ambition.
We shall be efficient, cost- conscious and committed to quality in whatever we do.
We shall ensure that our positive attitude, sincerity, humility and united determination
shall be the driving force to make us successful.
22
Core Values

Indianness: confidence in ourselves.

Leadership: to be a leader, both in thought and business.

Respect & Humility: to respect every individual and be humble in our conduct.

Introspection: leading to purposeful thinking.

Openness: to be open and receptive to new ideas, knowledge and information.

Valuing and Nurturing Relationships: to build long term relationships.

Simplicity & Positivity: Simplicity and positivity in our thought, business and action.

Adaptability: to be flexible and adaptable, to meet challenges.

Flow: to respect and understand the universal laws of nature.
Future Plans
The Company would continue to pursue its aggressive growth to strengthen its position as a
leading player in the consumption space in India, with an aim to capture increasing share of
the consumer’s wallet. The Company would continue with its expansion plans and would
continue to increase its presence on a pan-India basis by opening more retail outlets in tier 2
and tier 3 cities and by further strengthening its position in key metro cities.
The Company has planned to increase its operating retail space from around 8 million square
feet currently to around 12 million square feet by FY12-13. The various subsidiary
companies of the Company, which have been created to cater to various consumption
categories, are currently in initial set-up phase. Most of them will come into their own,
pursuing aggressive growth plans to achieve scale and garner increasing market share. The
Company will also be able to unlock value out of these businesses by listing these subsidiary
companies, and partnering with strategic partners in them, at an appropriate time.
The Company, operating in the consumption space, has added IT services and education to its
portfolio of businesses, apart from the existing consumer finance, insurance, media, logistics
and brand businesses. All these businesses will help in capitalizing on the synergies with the
retail business to further enhance shareholder’s wealth.
23
Retail Footprint
Different products dealt in Big Bazaar
a) Depot
b) NBD (New Business Development)
1) General books
1) Watches
2) Office stationary
2) Fashion Jewellery
3) Children stationary
3) Sunglasses
4) Film VCD’s & DVD
4) Auto accessories
5) Car audio systems
c) Gold Bazaar:
d) Mobile Bazaar:
Navras Gold Jewellery
1) All kinds of mobile handsets ranging from Rs
(This is a separate unit not related 25000 of
1000 to Rs 25000 of different companies.
different companies. to Big Bazaar they share 2) All mobile accessories
profits on percentage basis).
3) All major prepaid SIM cards
4) All post paid connections
5) Cordless phones & landline phones.
24
e) Sitara:
f) Shringar:
1) Cosmetics
1) Bangles
2) Fragrances
2) Jewellery sets
3) Herbals
3) Bracelets
4) Pharmaceuticals
4) Hair Accessories
5) Bindies
6) Chins
Plastics, Utensils, Crockery (PUC)
g) Plastics:
h) Utensils:
1) Buckets
1) Plates, Bowls, Glasses
2) Casseroles
2) Non stick Cookware’s
3) Containers
3) Kitchen Tools
4) Boxes
4) Tiffin Boxes
5) Flasks
6) Bowls
7) Jugs & sippers
8) Bottles & Mugs
i)
Crockery:
j) Luggage:
1) Crockery cutlery
1) Travel bags
2) Trolleys
2) Trolleys
3) Dinner sets
3) School & College Bags
4) Wine, Juice Glasses
4) Ladies purse & bags
5) Suitcase
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Apparels Department
a) Ladies Wear:
b) Men’s Wear:
1) Sarees
1) Formal Shirts & Pants
2) Dress Materials
2) Casual Shirts & Pants
3) Under garments
3) Party Wears
4) Nightwear
4) Fabrics [cut pieces]
5) Western wear’s
5) Other Accessories
6) Suits & Blazers
7) Levi’s Signature Garments
8) Ties
9) Jeans Pants
10)Belts, Handkerchiefs
Kid’s Department:
c) Infants Section:
d) Boy’s Section:
1) Shirts
1) T-shirts, trousers, jeans
2) Baniyans,
2) Cotton shirts, Codraw pants
3) Jhabas
3) Ethnic wears
4) Vests
4) Co-ordinates
5) Bibs feedings
5) Rain coats
6) Bed items
7) Baba suits, Frocks
8) Diapers, Pampers
26
9) Other baby accessories
e)Girls Section:
f) Toys Department:
1) Cotton Frocks
1) Soft Toys
2) Ethnic wears
2) Board games
3) Co-ordinates
3) Dolls
4) Western wears
4) Educational toys
5) Sweaters
5) Remote Cars , bikes
6) Sports items: Cricket bats, balls,
badminton & tennis rackets, hockey bats
etc
7) Cycles
8) Carrom Board
a) Footwear Department:
b) Furniture Bazaar:
1) Sports shoes
1) Dining Table
2) Casual shoes
2) Bedroom Accessories
3) Formal shoes
3) Hall Accessories (Sofa sets, Chairs,
4) Men’s sandals
Tables etc)
5) Ladies sandals
6) Ladies casuals
7) Ladies Fancy slippers
8) Children shoes
4) Mattresses
5) Computer Table
6) Dressing Table
7) Wardrobe, Almirah etc
9) Children sandals
27
c) Home Linen Department:
d) Home Decor:
1) Bed sheets, Bed spreads, Pillows, Pillow 1) Flower Vase
covers Blanket etc
2) Towels, napkins, Yellow duster
3) Curtains, Mats, Table mats, mosquito
2) Artificial Flowers,
3) Candle stand
4) Umbrellas
nets etc
5) Photo Frames
4) Carpets, Cushion covers, Razai
6) Frame & Wall Paintings
5) Shopping bags, Fridge covers, Washing
machine covers, woven covers, T.V covers, 7) Assorted Color Stones
Saree covers, C.D Pouch, Shoe Covers etc
8) Water Falls (artificial)
9) Birthday items
Food Bazaar
a) Beverages:
b) Staples Dept:
1) Soft drinks
1) Dals, Rice, Wheat, Ragi etc,
2) Mineral water
2) Atta, Rava items, Sugar, Salt etc
3) Health drinks
3) Cooking Oils, Masala items
4) Fruit Juices
4) Dry fruits
5) Frozen items
5) Ready to cook foods & mixes
6) Spices
7) Breakfast Cereals
b) Fruits & Vegetables:
d) Process Dept:
All kinds of fruits and vegetables at the 1) Health drinks
lowest prices.
2) Ready to eat
28
3) Corn flakes, Chips
e) Confectionaries:
4) Soups, Bread items, Pickle
1) All kinds of Chocolates and
5) Instant mixes
2) Cakes and other sweets
6) Spreads
Home Care:
Electronic Bazaar
1) Phenyl, Detergents etc
1) Televisions, DVD Players
2) Washing powder etc
2) Home Theatre Systems, Audio Systems
3) Dish wash, Tissue papers
3) Refrigerators
4) Scratch, Shoe cases, Fresh wrap
4) Washing Machines
5) Microwave Owen
6) Mixers, Irons & Grinders
7)
Computers,
Laptops,
Computer accessories
8) Juicers etc
29
Printers
&
Fashion @ Big Bazaar
Fashion@Big Bazaar aims to dispel the myth that fashion comes with a steep price tag. With
fashion apparel and accessories for all age groups across categories like men, ladies, kids and
infants, Fashion @ Big Bazaar is the fashion destination for all.
Be it office or casual wear; festivals or weddings, Fashion@Big Bazaar has apparel for every
occasion. And what’s more, it makes fashion available at affordable prices.
Fashion@Big Bazaar has developed many in-house brands that cater to every age group and
category. The format sells brands for both men and women including DJ&C, Knighthood,
Privilege Club, AFL and Haute n Spicy. Shrishti and Shatranj are ethnic wear brands,
while Pink n Blue, Princess and the Power Rangers line caters to kids. It also has a special
tie up with Star TV for a special Star Parivaar line. Under this line, the format retails
clothes that don many of the consumer’s favourite television stars.
The format also retails international and national brands like Signature by Levis, Going 3,
14U, Meena Bindra by Biba, Famous Basics by Lee Cooper Aurelia by W, Palm Tree by
Gini & Jony, Lilliput and Juno.
Fashion for Big Bazaar is not just about brands, but it is also about customising apparels for a
diverse country like India. A strong team of designers constantly work to create special
ranges to suit to the tastes of its customers spread across the country.
Fashion @Big Bazaar are found as cut-ins within all Big Bazaar stores, as well as some stand
alone stores.
Business Description:
Pantaloon Retail (India) Ltd. The company’s principal activity is to operate chain retail 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 company’s 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
30
music stores, global brands in fashion, sports and lifestyle accessories, grocery store and
restaurants. The Pantaloon retail stores focus largely on apparels and accessories.
Departmental Managers: There are 28 departments in this store like Electronic dept, Depot
dept, Mobile Bazaar, Star Sitara dept, Plastic, Utensils & Crockery (PUC) Dept, Ladies Dept,
Men’s Dept, Furniture Dept, Footwear Dept, Home Decor Dept etc. Each department will be
assigned with targets which have to be achieved within the assigned period that may be of
daily, weekly, monthly and yearly.
Each department has a Department Manager (DM) & Assist DM. Their job is concerned
mainly with sales. They look after customer’s orders delivery, post sale service if any etc. All
Dept managers, ADM, team members work under coordination and cooperation.
31
Organization Chart
Dept Manager
Asst DM
Team Leader
HR Manager
Store Manager
Visual
Merchandising
Asst DM
Administration
Maintenance
Info
Security
Asst Store
Manager
Marketing
Sales Manager
Cashier
CSD
32
Housekeeping
Team Member
FUNCTIONAL DEPARTMENTS
HUMAN RESOURCE DEPARTMENT
The HR department of Big Bazaar is very dynamic. Employees are the biggest strength and
asset of any organization and the HR dept realizes this very well. This is very evident from
the way the HR department handles all its employees. They take utmost care to select, train,
motivate and retain all the employees. They have continuous developmental programs for all
the employees. Currently Big Bazaar Visakhapatnam is employing 200 employees. There are
two shifts for the employees. The first shift employees arrive at 10AM in the morning and
leave at 7.30 in the evening, while the second shift employees report at 11.30 in the afternoon
and leave at the time of Store closing (10pm).
Sources of Recruitment
The following are the main sources through which Big Bazaar recruits its employees.

Consultancy Services:
For top level management, employees are recruited through private consultants.
They are usually appointed as Departmental Managers.

Walk-ins:
This is the main source through which Big Bazaar recruits its employees. People
seeking job usually themselves approach the HR department for job vacancy. Employees
usually selected from this source are appointed at the entry level as team members.

Employee Referrals:
This is the other main source through which employees are selected. Candidates who
have given their previous employer as referrals are first interviewed and from their previous
employer, opinion is taken about their behavior and performance in the job. If they receive a
positive opinion from their previous employer they are selected.

Campus Recruitment:
Young people bring new ideas and fresh enthusiasm. Therefore Big Bazaar visits some of the
reputed educational institutions to hire some of the most talented and promising students as
its employees.
33
Selection Procedure
The following is the selection procedure that the HR department practices to hire its
employees.
I. Interview: For entry level jobs, the candidates are interviewed by a HR person. They are
asked a few basis questions about their education, previous work experience if any,
languages known etc. This is done to evaluate the candidate’s ability to communicate freely
and also other skills.
II. Psychometric Tests: For higher and top level jobs, candidates are asked to answer a few
questions which basically test their sharpness, analytical ability, ability to handle stress,
presence of mind etc. This is done as Managers are required to work under stress all the time
and still maintain a cool head to make some vital decisions
III. Group Discussion: In campus recruitment students are involved in a Group Discussion,
where they will be given a topic on which the group has to deliberate, discuss and arrive at a
solution or a decision which is accepted by the whole group. Along with the G D they are
also given a written aptitude test.
Finally a formal interview will be conducted to assess the overall skills of the student.
Induction:
New employees selected will be given a 13 day induction and training program. They will be
given information about the company’s business, different departments etc. They will be
informed of their roles, duties and responsibilities. They will also be informed about the HR
policies and rules of the company.
The new employees will be on probation for a period of 6 months. After this period the HR
period along with the department manager will review the performance of the employee. If
the employee’s performance is good and encouraging, the employee’s services will be
confirmed.
34
Compensation & Rewards:

The employees are rewarded suitably with attractive pay packages.

The salary of an employee includes basic pay. HRA, special allowance, PF,ESI,
Mediclaim etc.

Annual bonus will be given at the time of Diwali.

The employees and their dependents are also entitled for medical treatment in
recognized hospitals with cashless hospitalization with which the company has
tie-ups.

If a hospital is not recognized, the amount spent by the employee will be
reimbursed.

Along with these all the employees are given a card known as ‘Employee
Discount card’ (EDC) through which they can buy any product at Big Bazaar at a
special discount of 5%.
Leaves and other rules:
An employee during his probationary period is entitled for 7 days of leave. A confirmed
employee is entitled for 30 days of leave in a year. There is only one type of leave the
employees can take which is known as All Purpose Leave (APL).
All the employees will be given identity cards which they have to wear and also swipe while
at the time of entering and leaving the Store.
Performance Appraisal:

The HR department conducts performance appraisal of all the employees annually
in the month of April.Based on their performance increments will be given in their
pay.
In addition to this if an employee achieves or exceeds the target given to along with their
team members will be provided with attractive cash and other incentives.
Training & Development:
Future group has its own training division for all its employees, known as ‘Future Learning &
Development Limited’ (FLDL). All the employees are given training for 20 days in a year
spread over different periods.
35
‘Gurukul’ which is a part of FLDL gives training to all the employees on various skills like
team work, dedication discipline improving customer service etc to make them more
knowledgeable and productive.
36
FINANCE DEPARTMENT
Finance is the life blood of any business. The Finance department of Big Bazaar,
Visakhapatnam performs a few basic functions, such as preparing the Store’s ‘Income and
Expenditure Statement’ giving full particulars of all items. It also prepares the budget for
expenditure at various levels on different items.
This department is also responsible for deciding and giving the weekly, monthly and yearly
sales targets and the margins for all the departments separately.
The Finance department is also responsible for collecting and depositing the cash received in
the company’s bank account daily.
Review of Performance:
Sales The sales and other operating income has increased from`8926.08 crores to `11,012.26
crores, an increase of 23.37% over the previous year. The Retail Business has also recorded
same store growth of 11.51% during the year.
37
38
39
MARKETING MANAGEMENT
Marketing concept is a customer orientation backed by integrated marketing aimed at
generating customer satisfaction as the key to satisfying organizational goals. For a firm in
order to implement the marketing concept it has to focus its attention on the consumer,
ascertain his/her needs, discuss and wants before.
Every Brand appeals to individual customers in different ways. Good customer service is the
life blood of any business. Good customer service is all about attending to existing and
potential customers. This maintaining good relationship with the customers is the key to
business success and hence the concept relationship marketing.
Traditionally, marketers have located their target market segments, presented their offer, and
made the sales. It's always been a single step process.
Relationship marketing looks at customers and clients over a longer term. It takes into
account the lifetime value of a customer.
Many experts think it costs anywhere from six to ten times as much, to find a new customer,
than to sell to an existing one. With those financial realities in mind, the approach makes
some sense, and some real Rupees.
Relationship marketing is based on the idea that people prefer to do business with people
who they know and like. After all, it's easier to buy from a friend, than from someone you've
never heard of before. It's a matter of building trust.
It's said that people need to hear an offer at least seven times before they buy. That concept
certainly works against the single step marketing method.
The Marketing department is responsible for marketing of Big Bazaar’s products through
different media like TV, radio, newspapers, banners, placards etc.
The marketing department has to decide and identify the most effective medium to attract the
customers to Big Bazaar thereby increasing the sales.
The department has to design creative and attractive advertisements through which the
company’s products can be promoted to the customers.
The company has to visit different companies and has to enter in tie-ups for all its
advertisement campaign.
40
The marketing department also consists of another separate department which is known as
‘Visual Merchandising’.
Visual merchandising is an art by which a retailer makes the store talk to its customers. The
colors, signage, lights, look and feel, everything is taken into account. It is very important to
figure out what is the story, the picture, the idea that is being sold to the customers.
Another concept that was incorporated in Big Bazaar from the beginning was that of
‘Category management’ as opposed to the brand merchandising practice that is followed by
many retailers. Category management is based on the belief that a customer walks into a store
looking for party shirt or a formal trouser, rather than a particular brand. Therefore the store
is designed according to the categories like men’s formal wear, women’s western wear or a
casual wear, etc. Within the organization too, teams were divided according to the categories
that they managed, rather than the brands.
Big Bazaar wanted to have a complete bouquet of products in each category at different
price-points, design, fabric, size and color. The objective was to create ‘traffic drivers’ within
the Store rather than make brands compete with each other. Focusing on categories also
helped to achieve a level of perfection within the specific segments.
This department is responsible for the attractive product arrangement in the Store with
respect to their nature. The basic function of this department is it divides the Store into some
departments based on the nature of the product and also within the department it decides how
the products should be arranged keeping in mind the customers taste. It also arranges the
products to attract the customers and also ensure easy availability of products.
41
LOGISTICS DEPARTMENT
Logistics is a very important department of Big Bazaar. It is responsible for procuring the
stock of all the products of the different departments.
The logistics department receives the goods from the warehouse.
The Warehouse of Big Bazaar for the entire South zone is located at Hosakote, Karnataka.
The logistics department receives the stock of different goods and verifies the quantity and
quality of the goods with the particulars given in the ‘Goods Received Statement’ which it
receives along with the stock.
Then it checks for any damage in the stock received. If there is no damage in the stock, after
recording it in the ‘Stock Inward Register’ dispatches the goods to the respective department
taking the signature of the Departmental Manager.
On the other hand if there is a damage in the goods or if the goods do not match the details
given in the Goods Received Statement, it enters in the Stock Outward Register and sends it
back to the warehouse along with a Goods Returned Note giving full information regarding
the reason for returning back the goods and the defect or damage in the goods. The logistics
department receives two truckloads of stock every day. It is the respective departmental
Managers who place an order to the Zonal head office through e-mail for stock of goods
when they feel that the stock has to be replenished.
The logistics department works in complete coordination with all the other departments to
ensure that the stocks are received and maintained properly continuously for the smooth
functioning of Big Bazaar and avoid any inconvenience to the customers.
42
SALES DEPARTMENT
This department is responsible for the collection of sales amount i.e., cash sales. There are in
all 25 cash counters in the Store. There is a Head Cashier to whom all the cahiers report and
submit the total sales amount collected throughout the day by the cashiers. In addition to cash
all leading credit and debit cards are accepted at no extra charge. Also Big Bazaar vouchers
are accepted and Sodexo coupons are not accepted at Big Bazaar from last 6 months.
A cashier at the time of opening his billing counter will be given an opening balance of
Rs.1000. The cashier has to ensure that all the offers applicable on respective products are
given to the customer in his/ her bill. Also if any free items are given on some purchases, it
should be informed to the customer clearly.
After the billing is done, the cashier has to pack the products neatly in a plastic cover which
is also charged depending on the No. of merchandise according to the customer’s needs.
At the time of closing the billing counter, the cashier has to give a statement of cash, with all
particulars of different denominations of cash, amount collected through credit cards, amount
collected in debit cards, amount collected in Big Bazaar vouchers and also amount collected
through Credit Notes.
Wednesday Bazaar is a very important and popular event in Big Bazaar. Every Wednesday
fabulous offers and great discounts are given on most of the products. Customers arrive in
large numbers as they realize that it is on Wednesday that products are offered at the lowest
prices.
On Saturday and Sunday also the customer turnout is high, as it is on the weekends that most
of the customers find time for shopping. They arrive along with their family to enjoy the
shopping experience. Good discounts and offers are also provided to attract more number of
customers. Retailing is not just about selling products —it is about selling an idea. Why do
people in shop when they are bored or depressed? It is not just because they have the money
to buy, but because they want to go through an experience. It is very crucial in retailing to
make customers relate to every product that is being sold, as well as the Store’s environment.
43
CUSTOMER SERVICE DESK (CSD)
As the name suggests this is the separate dept which mainly focuses on customer service like
if a customer finds difficulty in finding any product, if there are any customer complaints,
they are also looked into, any customer assistance etc. is also provided.
There is also an Exchange Counter where if a customer is dissatisfied or wants to exchange
the product he/ she has purchased for any reason , the customers can exchange them within 7
days of their purchase.
When a customer brings a product for exchange, the product is first received and checked if it
is used or deliberately damaged or tampered with. If it is in an acceptable condition, then the
customer is issued a Credit Note for that amount (product’s price). The customer can then
purchase any product for that amount or just take back the money by encashing the credit
note at a cash counter. If the customer buys a product less than the amount in the credit note,
the difference amount will be returned to the customer and on the other hand if a customer
buys a product more than the amount in the credit note, the customer will be asked to pay the
difference amount. Credit note is valid only for 30 days
This department is also responsible for announcing all the offers running in the store on
different products throughout the day. This dept also does gift wrapping for any product if the
customer wants it at free of cost.
The dept also collects customers’ opinion / feedback for continuous improvement in their
service.
The ultimate aim of this department is to help and satisfy the customer in every possible
manner and makes the customers’ experience memorable.
44
ADMINISTRATION
The Store administration comes under the Store Manager. Its functions are store maintenance,
housekeeping, security etc.
The store maintenance is concerned with the proper running of the store in co-ordination with
all the departments. It also has to ensure proper back –up power supply in times of power
cuts. The Housekeeping is concerned with keeping all the departments of the Store clean and
neat all the time. Covers and other wastes should be properly cleaned and the floor is swept
regularly to keep it clean.
The Security section is concerned with the security of the entire store. Security department
keeps a vigilant check on all the people entering and departing at the various entry and exit
points in the store.
They also maintain all the registers like employees’ attendance register, stock register,
visitors’ register etc. They check all customers’ bill before letting them out of the store.
They ensure orderliness in the store and prevent shrinkage or pilferage of goods to minimize
the loss arising out of it.
The housekeeping and security are outside agencies employed by the store on a contract basis
to take care of the respective functions.
The Administration department also has a separate section known as ‘Information
Technology’. This department is responsible for the maintenance of all the systems of the
Store; all billing machines their functioning networking with the master machine etc. If there
is any problem with the machine in any department in the store, then this department comes
into function. This dept integrates all the systems in the store and properly maintains all of
them.
45
PART B
RESEARCH PROJECT
46
SECTION 1
THEORETICAL FRAMEWORK
47
Customer Satisfaction:
It is a measurement or indicator of the degree to which customers or users of an
organization’s products or services are pleased with those products or services.
Customer satisfaction to a company can be defined as:

The company's ability to fulfill the business, emotional, and psychological needs
of its customers;

Quality of service delivery expected by the customers.

An internal drive to satisfy an unsatisfied need of customer.

Providing good service in a pleasant manner and meeting the customer's
expectations;

The measure of the degree to which a product or service meets the customer's
expectations;

Comparison of expectations versus actual experience.
Why and how to measure Customer Satisfaction?
Most companies say that they believe in great customer service, but few set up a system to
ensure that they provide it. To deliver excellent customer service takes both understanding
what your customers want and the way to see that they receive it.
Delighted Customers Are Profitable:
It is widely accepted that it is almost five times more profitable to sell to an existing customer
than to find a new customer. More important, the difference between satisfied customers and
very satisfied customers can make a big difference in customer repeat business and the
profits. Measuring client satisfaction is very important and distinguishing between degrees of
satisfaction by using customer surveys is crucial.
48
Measure of Customer Satisfaction
There are several ways to gather input from customers. The simplest way to find out how
customers feel and what want to ask them. If you have only 20 customers, you can talk to
each one personally. The advantage of this approach is that you'll get a personal "feel" for
each customer.
The disadvantage is that you'll gather different information from each customer depending on
how the conversation goes.Customer surveys with standardized survey question insure that
you will collect the same information from everyone. Remember that few of your customers
will be interested in "filling out a questionnaire". It's work for them without much reward. By
launching a customer survey as an attempt to find out "how we can serve you better" -- your
customers will feel less put upon.
Here are a few of the possible dimensions that one could measure:

Quality of product

Pricing

Offers and discounts

Staff’s behavior

Complaints or problems

Billing experience

Security’s behavior

Store’s ambience & cleanliness

Overall experience in store
Using satisfaction Surveys to achieve a Competitive advantage consider these statistics:

Only 4% of all customers with problems complain

The average person with a problem eventually tells 9 other people

Satisfied patients and customers tell 5 other people about their good treatment

Cost of acquiring a new customer is usually 5-7 times greater than retaining current
ones

Cost of hiring and training a new employee is up to 10 times greater than retaining
current ones.
49
These facts underscore the need to satisfy your current customers so they remain with your
organization. Ensuring their satisfaction is vital to your long-term business survival and
profitability. The technology available to both you and your competitors has made it easier to
duplicate each other’s products or services.
Because of this, it is increasingly difficult to rely on features alone to differentiate yourself
from the competition. Excellent customer satisfaction is one of the few ways to achieve a
sustainable competitive advantage.
Satisfaction (and dissatisfaction) affects your organizations bottom line
The value of satisfaction is often underestimated. Loyal customers affect an organization’s
success, which can be difficult to quantify. Loyal customers grow your business by
increasing market share. Over a lifetime, a loyal customer purchases more, purchases at a
premium (they are less sensitive to price), costs less to sell to, and refers your business to
others.
An essential part of assessing satisfaction includes identifying dissatisfaction. Dissatisfied
customers often hold the information you need to succeed. Understanding when and why
dissatisfaction occurs, helps you implement changes to gain and retain future customers. No
matter what type of business you are in, surveys are an important tool to help you collect the
information you need to understand and evaluate satisfaction.
50
Review Literature:
Retail is India’s largest industry. It accounts for over 10% of the India’s GDP and around 8%
of the employment. Retail sector is one of the India’s fastest growing sectors with a 5 %
compounded annual growth rate. India’s huge middle class base and its untapped retail
industry are key attractions for global retail giants planning to enter newer markets. Driven
by changing the life styles and strong income growth and favorable demographic patterns,
Indian retail is expected to grow 25% annually. It is expected that retail in India could be
worth US$ 175-200 billion by 2016.
As the nature of the study is survey. Nature of the data is primary by questionnaire to
customers. The same study particularly in Visakhapatnam location and for the same retail
outlet is difficult to find. General information related to catchment analysis and retail store
are available but it is not appropriate to mention all those information here.
Theoretical concept is taken from the different books as mentioned in the reference. The
other information is taken from the different websites. Other data are taken from the different
sources are mentioned in references.
The organized retail industry in India had not evolved till the early 1900s. Until then, the
industry was dominated by the unorganized sector. It was a seller’s market with a limited
number of brands, and little choice available to customers. Lack of trained man power, tax
laws and government regulations are discouraged the growth of organized retailing in India
during that period. Lack of consumer awareness restrictions over entry of foreign players into
the sector also contributed to the delay in growth of organized retailing. Foundation for
organized retail in India was laid by Kishore Biyani of Pantaloon Retails India Limited
(PRIL). Following Pantaloon’s successful venture a host of Indian business giant’s such as
Reliance, Bharati, Birla and others are now entering into retail sector.
A number of factors are driving India’s retail market. These include: increase in young
working population, hefty pay packets, nuclear families in urban areas, increasing working
women population, increase in disposable income and customer aspiration, increase in
expenditure for luxury items, and low share of organized retailing. India’s retail boom is
manifested in sprawling shopping sectors, multiplex- malls and huge complexes that offer
shopping, entertainment and food all under one roof.
51
But there is a flip side to the boom in the retail sector. It is feared that the entry of global
business giants into organized retail would make redundant the neighborhood Kirana stores
resulting in dislocation in traditional economic structure. Also, the growth path for organized
retail in India is not hurdle free. The taxation system still favours small retail business.
A perfect business model for retail is still in evolutionary stage. Procurement is very vital cog
in the retail wheel. The retailer has to fight issues like fragmented sourcing, unpredictable
availability, unsorted food provisions and daily fluctuating prices as against customer
expectations of round-the-year steady prices., sorted and cleaned food and fresh stock at all
times.
Trained human resource for retail is another big challenge. The talent base is limited and with
the entry of big giants there is a cat fight among them to retain this talent. This has resulted in
big salary hikes at the level of upper and middle management and thereby eroding the profit
margin of the business.
But retail offers tremendous for the growth of the Indian economy if all the above challenges
are tackled prudently there is a great potential that retail may offer employment opportunities
to millions living in small town and cities and in the process distributing the benefits of
economics boom and resulting in equitable growth.
According to Kotler-Customer satisfaction depends on the product’s perceived performance
relative to buyer’s expectations. If the product performance falls short of expectations, the
customer is dissatisfied. If performance matches expectations, the customer is satisfied. If
performance exceeds expectations, the customer is highly satisfied or delighted.
Outstanding marketing companies go out of their way to keep important customers satisfied.
Highly satisfied customers make a repeat purchases and tell others about their good
experience with the product. The key is to match customer expectation with company
performance. Smart companies aim to delight customers by promising only what they can
deliver, then delivering more than they promise.
However, although the customer-centered firm seeks to deliver high customer satisfaction
relative to competitors, it does not attempt to maximize customer satisfaction.
A company can always increase customer satisfaction by lowering its price or increasing its
services. But this may result in lower profits. Thus, the purpose of marketing is to generate
52
customer value profitability. This requires a very delicate balance: The marketer must
continue to generate more customer value and satisfaction but not “give away the house.”
“The gulf between satisfied customers and completely satisfied customers can swallow
a business.”
53
SECTION-2
PRESENT STUDY
54
NEED FOR THE STUDY
The need for the study is to create customers satisfaction and various marketing activities at
Big Bazaar.

To understand customer needs and requirements of retain customers and there
satisfaction.

To understand retail marketing activities, observations on different floors and
Departments like Luggage, Apparels (kids, ladies & men’s), Logistics, etc. To check,
update and improve the operations of various departments in stores.
The main need of the project is to build and measure the customer satisfaction by providing
various facilities to the customers. So that it can retain the existing customers and can attract
the new customers. These things will help the Big Bazaar to capture the entire market.
55
OBJECTIVES OF THE STUDY
The following are the objective:

To know the Customer satisfaction of organized retail outlet

To know why, when, where and how consumers buy merchandise.

To find measures to retain customers.

To study about the customer taste and preference.

To study about customer perception about the retail outlet in the Visakhapatnam city.

To understand customer problem.

To examine customer socioeconomic background.

To know factor which influence customer to visit again.

To assess commitment towards retail outlets.

To suggest measure to improve business of organized Retail outlet.
56
SCOPE OF THE STUDY
The new economic policies of the Govt. of India adopted in the mid eighties were given
further impetus by the early nineties. The Indian market has undergone considerable changed
as a direct consequence of many of these policies and retail industry is no exception to this.
Keeping the above - mentioned perspective in the background, the researcher has selected
retail
market, since the marketing task has became more challenging and intensive
competition has opened up new vistas .Companies are evolving marketing strategies by
studying the demands of the market place increasingly penetrating into appropriate market
segments introducing differentiated products to improve their market share. This has led the
researcher to study me perception of consumers towards different brands of soft drinks and to
gauge out the
Promotional strategic being adopted by the marketers to lure promiscuous buyers and win a
larger share in the markets. The Retail industry are intensifying and bringing
manifold changes in the industry. The researcher has conducted a detailed survey,
interpreting t h e responses to study the perception of the consumers. Now the people with
changing life styles and increase in income levels have made to visit the retail outlet .Liven
through the existing system of Retail has not tapped such a big market in the interiors of the
country specially the rural areas, as Kirana stores in the suburban and rural areas had
penetrated. Hence, Retailers must develop their products and marketing strategies to suit their
needs.
With the help of the primary data given by the respondents during the survey and secondary
data, study is done to improve the retail business and to understand the market potential in the
Visakhapatnam city and also to understand the potential customers and customer preference,
consumer behavior at organized retail outlets in Visakhapatnam city.
57
LIMITATIONS OF THE STUDY

The study is conducted within the confines of the Visakhapatnam city

The study made use of both the primary and secondary sources of information. The
accuracy and authenticity of statistics depends of the accuracy of the second source
itself. Therefore, the limitation of the secondary source is also bound to be present in
the analysis too.

In spite of all the care taken to translate the feelings and opinions of the
respondents, the errors might creep into the study, may be because of
the reason that consumers may fail to articulate their feelings properly.

The sample size is confined to 100 only. The method adopted for sampling is
convenient. Therefore, size and method implications are bound to be present in the
findings. Hence, the findings cannot be taken for granted for generalization for the
whole population.
58
RESEARCH DESIGN
Data Collection Methods:
The Information is collected in a Systematic Procedure in order to analyze and verify the
phenomenon. All the data required for completion of this study has been collected from both
primary and second sources.
Primary sources of data:
To prepare the structured questionnaire, a stratified random sampling technique was used.
Along with the questionnaire, ground and personnel discussions were also made with
Consumers to understand their views on the products of the retail outlets.
The primary source data are those which are collected afresh and for the first time and thus
happen to be original in character.
Primary data is gathered through questionnaires of Consumers
Secondary sources of data:
Secondary data that has been collected from records, magazines and websites.
Referring standard texts and referred books collected some of the information regarding
theoretical aspects.
This data comprises information from internet records of the organization, textbooks,
journals, literature available.
I acquired information from the people regarding their behavior for buying merchandise from
the retail outlets in the Visakhapatnam city.
Research Approach: Survey Approach
Research Instrument: Questionnaire
Sampling: Simple Random sampling, sample size 100.
59
SECTION-3
ANALYSIS OF THE STUDY
60
“Customer Satisfaction: A study of organized Retail outlets in Visakhapatnam city”
Questionnaire
Name (optional):_________________________________________________________
Age:_________________________________________________________
Gender
a. Male ( )
b. Female ( )
Table no.1: Number of respondents according to their gender
Gender
Male
Female
Total
No. of respondent
77
23
100
% percentage
77
23
100
Graph no 1: showing number of male respondents and number of female respondents
23
Male
Female
77
Interpretation:
Out of 100 respondents, 77% of the respondents were male, 23% of the respondents were
female
From the above analysis it is clear that majority of the respondents were male.
61
Age
a. <25 yrs ( )
b.25yrs-40yrs ( )
c. 41yrs-60yrs ( )
d. above 60yrs ( )
No. of Respondents
28
58
8
6
100
% percentage
28
58
8
6
100
Table no.2: Age group of the respondents
Age group
Below 25 years
25-40 years
41-60 years
Above 60 years
Total
Graph no.2: Showing age group of the respondents
58
60
50
40
30
28
No. of Respondents
% percentage
20
8
10
6
0
Below 25
years
25-40
years
41-60
years
Above 60
years
Interpretation:
Out of 100 respondents, 58% of the respondents are between the age group of 25-40 years,
28% of the respondents are below 25 years, 8% of the respondents are between the age group
of 41-60 years and only 6% of the respondents are above 60 years of age.
From the above analysis it is clear that majority of the respondents are between the
age group of 25-40 years.
62
1. How far is the Big Bazaar from your residence?
a. <2kms ( ) b. 2kms-5kms( ) c.6kms-10kms ( ) d. Above 10kms ( )
Table no.3: Respondent residence distance from Big Bazaar
Residence distance of Respondent
No. of respondents
<2kms
17
2 kms-5kms
35
6 kms-10kms
33
Above 10kms
15
Total
100
% percentage
17
35
33
15
100
Graph no.3: Showing residence distance of the respondents from Big Bazaar
35
35
30
25
20
15
10
5
0
17
33
15
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 35% of the respondents are coming to outlet from 2kms-5kms, 33%
of the respondents are from 6kms-10kms, and 17% of the respondents are from nearby outlet
and 15% of respondents are from above 10kms.
From the above analysis it is clear that majority of the respondents are coming to
outlet from 2kms-5kms.
63
2. How frequently do you visit the store?
a. Twice a week ( ) b. Weekly ( ) c. Fortnightly ( ) d. Monthly ( )
e. Other…………….
Table no.4: Retail Store visited by the respondents
Retail Store visited by No.
of % percentage
the respondents
respondents
Twice a Week
23
23
Weekly
25
25
Fortnightly
20
20
Monthly
12
12
Others
20
20
Total
100
100
Graph no.4: showing retail store visited by the respondents
35
35
30
25
23
25
20
12
15
10
No. of respondents
% percentage
5
5
0
Interpretation:
Out of 100 respondents, 25% of the respondents are visiting the store in weekly, 23% of the
respondents are visited in twice a week, 20% of respondents are visited in fortnightly and
others, 12% of the respondents are visited in monthly.
From the above analysis it is clear that majority of the respondents are visited in
weekly.
64
3. What type of merchandise do you mostly purchase in the Outlet?
a. Grocery ( ) b. Vegetable and Fruits ( ) c. House hold items ( )
e. Apparels ( ) f. All ( ) g. Others ………………..
d. FMCG ( )
Table no.5: Type of merchandise purchase by the respondents
Type of merchandise
Grocery
Vegetables and Fruits
House hold items
FMCG
Apparels
All
Others
Total
No. of respondents
12
10
8
22
20
28
0
100
% percentage
12
10
8
22
20
28
0
100
Graph no.5: showing type of merchandise purchased by the respondents
28
30
22
25
20
20
15
12
10
10
8
No. of respondents
5
0
0
% percentage
Interpretation:
Out of 100 respondents, 28% of the respondents are purchasing all types of merchandise,
22% of the respondents are purchasing FMCG products, 20% of the respondents are
purchasing apparels, 12% of the respondents are purchasing grocery items, 10% of
respondents are purchasing vegetable and fruits, 8% of respondents are purchasing house
hold items and no respondents purchase others.
From the above analysis it is clear that majority of the respondents are purchasing all
type of merchandise.
65
4. Do you pre list out the items for buying?
a. Always ( ) b. Sometimes ( ) c. Never ( )
Table no.6: Items pre list out by the respondents for buying
Items List out
Always
Sometimes
Never
Total
No. of respondents
30
65
5
100
% percentage
30
65
5
100
Graph no.6: Showing Items pre List out by the respondents for buying
65
70
60
50
40
30
30
No. of respondents
20
% percentage
10
5
0
Always
Sometimes
Never
Interpretation:
Out of 100 respondents, 65% of the respondents are sometimes pre list out items for
purchasing in the outlet, 30% of the respondents are always pre list out items and 5% of the
respondents are never pre list out items.
From the above analysis it is clear that majority of the respondents are sometimes pre
list out items for purchasing.
66
5. How much you buy per visit?
a. Below Rs.500 ( ) b. Rs. 500-1000 ( ) c. Rs. 1000- 2000 ( ) d. above Rs. 2000 ( )
Table no.7: Per Visit purchase by the respondents
Buy per visit
Below Rs. 500
Rs.500-1000
Rs.1000-2000
Above Rs.2000
Total
No. of respondents
5
10
30
55
70
% percentage
5
10
30
55
100
Graph no.7: Showing per visit purchase by the respondents
60
55
50
40
30
30
20
10
5
No. of respondents
10
% percentage
0
Interpretation:
Out of 100 respondents, 55% of the respondents mentioned that they per visit purchase was
above Rs.2000, 30% of the respondents mentioned that they per visit purchase was between
Rs.1000-2000, 10% of the respondents mentioned that they per visit purchase was between
Rs500-1000, 5% of the respondents mentioned that they per visit was below Rs.500.
From the above analysis it is clear that majority of the respondents per visit purchase
was above Rs.2000.
67
6. How do you rate the prices of merchandise in comparison with other outlet?
a. Comparatively less ( ) b. Moderate ( ) c. comparatively high ( )
d. Not bothered about pricing ( )
Table no.8: Price of merchandise in comparison with other Outlets
Price of Merchandise
Comparatively Less
Moderate
Comparatively high
Not bothered about pricing
Total
No. of respondents
6
28
40
26
100
% percentage
6
28
40
26
100
Graph no.8: showing price of merchandise in comparison with other outlets
40
40
35
30
25
20
15
10
5
0
28
26
6
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 40% of the respondents mentioned that price of merchandise was
comparatively high in comparison with other outlet, 28% of respondents mentioned that price
was moderate in comparison to others, 26% of respondents mentioned that no bothered about
price and 6% of respondents mentioned that price was comparatively less in comparison to
other outlet.
From the above analysis it is clear that majority of the respondents goes for
comparatively high price of merchandise in comparison with other outlets.
68
7. Are all products available in the outlet as per your expectation?
a. Yes ( ) b. No ( )
Table no.9: Respondents expectation on the available of all products
Expectation of products
No. of respondents
Yes
No
Total
35
65
100
%
percentage
35
65
100
Graph no.9: Showing respondents expectation on the available of all products
65
70
65
60
50
35
40
35
Yes
30
No
20
10
0
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 65% of the respondents mentioned that no for available of all
products and 35% of the respondents mentioned that yes for all product are not available as
per expectation.
From the above analysis it is clear that some products are not available as per
customer expectation.
69
8. Are you satisfied with the quality of products available in the outlet?
a. Yes ( )
b. No ( ) c. To some extent ( )
Table no.10: Respondents satisfaction with quality of products
Satisfaction of quality of No. of respondents
products
Yes
44
No
28
To some extent
28
Total
100
% percentage
44
28
28
100
Graph no.10: Showing respondents satisfaction with quality of products
44
45
40
35
30
28
28
25
20
15
10
5
0
No. of respondents
% percentage
Yes
No
To some
extent
Interpretation:
Out of 100 respondents, 44% of the respondents mentioned that they are satisfied with quality
of product in outlet and 28% of the respondents mentioned that they are satisfied to some
extent with quality of the product, and rest 28% of the respondents mentioned that they are
not satisfied with quality of product in outlet.
From the above analysis it is clear that majority of the respondents are satisfied with
quality of products.
70
9. Did you ever face out of stock situation for any product?
a. Yes ( ) b. No ( )
Table no.11: Respondents face out of stock situation in outlet
Out of stock situation
Yes
No
Total
No. of respondents
55
45
100
% percentage
55
45
100
Graph no.11: showing respondents face out of stock situation in outlet
55
60
50
55
45
45
40
30
Yes
20
No
10
0
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 55% of the respondents mentioned that they face out of stock
situation in outlet and 45% of them mentioned that they not face out of stock situation in
outlet..
From the above analysis it is clear that majority of the respondents are face out of
stock situation in outlet.
71
10. Do you recommend other customers for their visit to the outlet?
a. Yes ( ) b. No ( )
Table no.12: Respondents recommend other customer to visit outlet
Recommend
customer for visit
Yes
No
Total
other No. of respondents
63
37
100
% percentage
63
37
100
Graph no.12: showing respondents recommend other customer visit outlet
63
70
63
60
50
37
37
40
Yes
No
30
20
10
0
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 63% of the respondents are recommended others to visit outlet and
37% of the respondents does not recommend others to visit outlet.
From the above analysis it is clear that majority of the respondents are recommended
other customer to visit the outlet.
72
11. Do you feel that you are getting value for money?
a. Yes ( ) b. No ( )
Table no.13: Respondents get value of money while visiting Outlet
Value of money
Yes
No
Total
No. of respondents
52
48
100
% percentage
52
48
100
Graph no.13: Showing respondents get value of money while visiting outlet
52
52
52
51
50
Yes
49
48
48
No
48
47
46
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 52% of the respondents get value of money while visiting outlet and
48% of the respondents mentioned that they are not getting value of money while visiting
outlet.
From the above analysis it is clear that majority of the respondents are get value of
money while visiting outlet.
73
12. Do you like to have separate play area for children in the outlet?
a. Yes ( ) b. No ( )
Table no.14: Separate play area for children in the outlet
Separate play area
Yes
No
Total
No. of respondents
54
46
100
% percentage
54
46
100
Graph no.14: showing respondent’s like to have separate play area for children in outlet
54
54
54
52
50
Yes
48
46
46
No
46
44
42
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 54% of the respondents mentioned that they are liked to have
separate play area for children in outlet and 46% of the respondents mentioned that they are
not interested to have a separate play area for children in outlet.
From the above analysis it is clear that majority of the respondents are like to have
separate play area for children in the outlet.
74
13. Do you prefer to have food court in outlet?
a. Yes ( ) b. No ( )
Table no.15: Respondents prefer to have food court in outlet
Food court in outlet
Yes
No
Total
No. of respondents
61
39
100
% percentage
61
39
100
Graph no.15: Showing respondents prefer to have food court in outlet
61
61
70
60
39
50
39
Yes
40
No
30
20
10
0
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 61% of the respondents mentioned that they prefer to have food
court in outlet and 39% of the respondents mentioned that they won’t prefer food court in
outlet.
From the above analysis it is clear that majority of the respondents are prefer to have
food court in outlet.
75
14. Which one of following do you prefer?
a. Store in a noisy, crowded environment ( )
b. Store in a vast, quiet shopping ambience ( )
Table no.16: Respondents feeling while shopping in the outlet
Respondents
feeling
entering into outlet
Store in noisy, crowded
environment
Store in a vast, quiet
shopping ambience
Total
No. of respondents
% percentage
71
71
29
29
100
100
Graph no.16: Respondents feeling while shopping in the outlet
80
71
71
70
60
Store in noisy, crowded
environment
50
40
29
29
Store in a vast, quiet
shopping ambience
30
20
10
0
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 71% of the respondents mentioned that they prefer store in a noisy,
crowded environment and 29% of the respondents mentioned that they prefer store in a vast,
quiet shopping ambience.
From the above analysis it is clear that majority of the respondents are prefer store in
a noisy, crowded environment.
76
15. Are you aware of the policy of exchange / return of merchandise?
a. Yes ( ) b. No ( )
Table no.17: respondents aware of policy of exchange / return of merchandise
Policy of Exchange/return
of merchandise
Yes
No
Total
No. of respondents
% percentage
42
48
100
42
48
100
Graph no.17: Showing respondents aware of policy of exchange/return of merchandise
48
48
48
47
46
45
Yes
44
42
43
No
42
42
41
40
39
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 48% of the respondents were not aware of policy of exchange/return
of merchandise and 42% of respondents were aware of policy of exchange/return of
merchandise.
From the above analysis it is clear that majority of the respondents were not aware of
policy of exchanged/return of merchandise.
77
16. Have you ever return/exchanged any merchandise? What is your experience?
a. Quality ( ) b. Breakage ( ) c. Change of opinion ( ) d. Availability of superior product ( )
e. other………………..
Table no.18: Respondents experience on any merchandise return/exchanged
Merchandise
return/exchanged
Quality
Breakage
Change of opinion
Availability
of
product
Others
Total
No. of respondents
29
15
33
superior 23
% respondents
29
15
33
23
0
100
0
100
Graph no.18: Showing respondent experience on any merchandise return/exchanged
35
30
33
29
23
25
20
15
15
10
5
No. of respondents
0
% respondents
0
Interpretation:
Out of 100 respondents, 33% of the respondents mentioned that they experience on change of
opinion of return/exchanged, 29% of the respondents mentioned that they experienced on
quality of merchandise, 23% of the respondents mentioned that they experienced on
availability of superior, 15% of the respondent mentioned that they experience on breakage of
merchandise and no respondents experience others.
From the above analysis it is clear that majority of the respondents experience in
change of opinion on any merchandise return/exchanged.
78
17. What makes you to come to the same outlet?
a. Variety of merchandise ( )
b. Display of Merchandise ( ) c. Loyalty card ( ) d. Discount coupons ( ) e. Lucky dip ( )
f. Parking Facility
Table no.19: Factors which make respondents to visit same outlet
Factor of Visiting same
outlet
Variety of Merchandise
Display of merchandise
Loyalty card
Discount coupons
Lucky Dip
Parking Facility
Others
Total
No. of respondents
% percentage
29
26
14
21
7
3
0
100
29
26
14
21
7
3
0
100
Graph no.19: Showing Factors which make respondents visit same outlet
29
30
26
25
20
15
10
5
21
14
7
3
No. of respondents
0
0
% percentage
Interpretation:
Out of 100 respondents, 29% of the respondents mentioned that due to variety of
merchandise they visit same outlet, 26% of respondents mentioned that due to display od
merchandise, 21% of respondents mentioned that due to discount coupons, 14% of
respondents mentioned that due to loyalty card, 7% of respondents mentioned that due to
lucky dip, 3% of respondents mentioned that due parking facility.
From the above analysis it is clear that majority of the respondents are visited to same
outlet due to variety of merchandise in outlet.
79
18. How do you receive information about fresh arrivals/discount offers etc?
a. News paper advertisement ( ) b. Television ads ( ) c. Personal letters ( )
d .others(please specify) ……………………….
Table no.20: Respondents get information about fresh arrivals/discount offers
Information about fresh
arrivals/discount offers
News paper advertisement
Television ads
Personal letters
others(please specify)
Total
No. of respondents
% percentage
90
8
2
0
100
90
8
2
0
100
Graph no.20: Showing respondents get information about fresh arrivals/discount offers
90
90
80
70
60
50
40
30
20
10
0
8
2
No. of respondents
0
% percentage
Interpretation:
Out of 100 respondents, 90% of the respondents mentioned that they get information about
fresh arrivals/discount offers through news paper advertisement, 8 % of the respondents
mentioned that they get information about fresh arrivals/discount offers through Television
ads, 2% of the respondents mentioned that they get information about fresh arrivals/discount
offers through Personal letters.
From the above analysis it is clear that majority of the respondents get information
about fresh arrivals/discount offers through News paper advertisement.
80
19. Are you aware of special day marketing promotion?
a. Yes ( )
b. No ( )
Table no.21: Awareness of special day marketing promotions to the respondents
Awareness of special day No. of respondents
marketing promotions
Yes
63
No
37
Total
100
% percentage
63
37
100
Graph no.21: Respondents awareness to special day marketing promotions
63
70
63
60
50
37
37
40
Yes
No
30
20
10
0
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 63% of the respondents mentioned that they were aware of special
day marketing promotion and 37% of respondents mentioned that they were not aware of
special day marketing promotion.
From the above analysis it is clear that majority of the respondents were aware of
special marketing promotion.
81
20. Are you aware of availability of complaints and suggestions box in Retail Outlet?
a. Yes ( ) b. No ( )
Table no.22: Respondents aware of availability of complaints and suggestion box in retail
outlet
Aware of availability of complaints No. of respondents
and suggestion box
Yes
75
No
25
Total
100
% percentage
75
25
100
Graph no.22: showing aware of availability of complaints and suggestion box in the retail
outlet
75
75
80
70
60
50
Yes
40
25
25
No
30
20
10
0
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 75% of the respondents mentioned that aware of availability of
complaints and suggestion box in retail outlet and 25% of respondents mentioned that not
aware of availability of complaints and suggestion box in retail outlet.
From the above analysis it is clear that majority of the respondents were aware of
availability of complaints and suggestion box in retail outlet.
82
21. Did retailer/employee pay attention to your complaint and solve it?
a. Yes ( )
b. No ( )
Table no.23: Retailer attention and solved complaints by respondents
Attention
and
complaints
retailer/employee
Yes
No
Total
solved No.
by respondents
of % percentage
65
35
100
65
35
100
Graph no.23: showing retailer attention and solved complaints by respondents
65
65
70
60
50
35
35
Yes
40
No
30
20
10
0
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 65% of the respondents mentioned that retailer paid attention and
solved complaints and 35% of the respondents mentioned that retailer not paid any attention
on his/her complaints.
From the above analysis it is clear that majority of the respondents mentioned that
retailer paid attention and solved complaints.
83
22. Did you receive the intimation on the action taken?
a. Yes ( )
b. No ( )
Table no.24: Respondents receive intimation on the action taken by retailer
Intimation on action
No. of respondents
% percentage
Yes
32
32
No
68
68
Total
53
100
Graph no.24: showing respondents receive intimation on the action taken by retailer
68
68
70
60
50
32
40
32
Yes
No
30
20
10
0
No. of respondents
% percentage
Interpretation:
Out of 100 respondents, 68% of the respondents mentioned that they not get any intimation
regarding action taken by retailer and 32% of the respondents mentioned that they get
intimidation on the action taken by retailer
From the above analysis it is clear that majority of the respondents not receive
intimation on the action taken by retailer.
84
SECTION-5
FINDINGS, SUGGESTIONS
AND CONCLUSION
85
FINDINGS
The study undertaken has highlighted certain facts. They are
1. From the above analysis majority of respondents visit Big Bazaar organized retail
outlet frequently in the Visakhapatnam city.
2. Customer’s come to know through advertisements & publicity about the Retail
outlet which they visit frequently in the Visakhapatnam city.
3. It is found that most of the customer belongs to the age group of 25-40 years who
most regularly shop for their monthly grocery and domestic home needs only.
4. Customers mostly choose Big Bazaar for its good quality when compared to other
food markets.
5. Most of the customers are not aware of the offers or advertisements given by Big
Bazaar. This is due to lack of proper advertising and poor visual display of offers
within the store.
6. There is heavy customer floatation in the weekends and during special offer sales
days. But the cash tills are unable to bear with the heavy rush on these days. So
there arises a billing problem leaving most of the customers dissatisfied with their
shopping experience.
7. Customer service is not satisfactory. The floor staff does not concentrate much on
receiving and helping the customer in a proper way. Thereby the customer is not
satisfied with the customer service. And during the peak hours there is no proper
customer service and response.
8. It was found that due to non availability of stock the customer does not find the
required product towards the end of the month. At times the customer does not
even find a substitute for the same.
9. There is a parking problem during the weekends when the walk-ins cross more
than 6000 per day. This leaves the high profile customer with a bad shopping
experience.
86
SUGGESTIONS
Suggestions have been made based on certain factors as highlighted by the study.
1. Improve its customer service so that it can gain loyal customers.
2. In store communication and advertising has to be improved as most of the
customers are not aware of the sales and offers in the store.
3. It has to minimize the billing problems especially at the peak times i.e., on
weekends by updating the software and increasing its efficiency to retrieve data
faster.
4. It can try to increase the range and brands in the garments section to appeal to a
greater section of the customers.
5. It can offer discount coupons to the customer so that the customer is motivated to
come again for purchases at the same store.
6. Proper display of promotional offers and sales has to be done. This could be done
by placing boards/banners at different sections to get the customer’s attention.
7. Promotional strategies have to be designed so as to appeal to all the customer agegroups individually. This will benefit all age-groups of customers visiting Big
Bazaar. A customized/personalized offer could be designed for the youth, the
family, etc
8. Maintain express counters for customers who purchase small number of
merchandise.
9. Price updates and discount offer updates of particular merchandise must be done
before placing it for sale.
10. Regular announcements of everyday special offer can influence the customer to
purchase
11. Parking place must be provided for customers to drive regularly to the retail
outlet
12. Weekend day special offers can be displayed on the screens of the outlet which
may resort the customer for impulse buying.
87
CONCLUSION
Retailing is such a part of our daily lives that it’s often taken for granted. Customers often
aren’t aware of the sophisticated business decisions retail managers make and the
technologies they use to provide goods and services. Retail managers must make complex
decisions in selecting target markets and retail locations, determining what merchandise and
services to offer, negotiating with suppliers and distributing merchandise to stores, training
and motivating sales associates, and deciding how to price, promote, and present
merchandise. Considerable skill and knowledge is required to make these decisions
effectively. Working in this highly competitive, rapidly changing environment is challenging
and exciting and offers significant financial rewards.
During the project period of two months were exposed to the various operational
activities both on the floor and at the backend. The entire retailing decision making process is
not very easy as it seems on the surface. There is a lot involved behind the simple task of
selling the product to a customer. Big Bazaar faces a lot of competition from its competitors
and to survive this competition it needs to improve in its store ambience, better promotional
and marketing strategies, more of advertising, improved and personalised customer service
within the store, etc. Although the walk-ins are high the conversion rate needs to be increased
for increased sales & profit and to reach its monthly targets.
The growth of scope in the Indian retail market is mainly due to the change in the
consumers behavior. For the new generation have preference towards luxury commodities
which have been due to the strong increase in income, changing lifestyle, and demographic
patterns which are favorable.
The scope of the Indian retail market is very vast. Growth of Retail Companies in
India is still not yet in a matured stage with great potentials within this sector still to be
explored.
88
BIBLIOGRAPHY
Consumer Behavior & Marketing Research, Suja R Nair, Himalaya Publishing House, 1st.
Edition, 2004.
Consumer Behavior, ICFAI University, May - 2005.
Marketing Management - Planning, Implementation & Control, Global Perspective, Indian
Context, V S Ramaswamy & S Namakumari, MacMillan India Ltd., 3rd. Edition, 2003.
Marketing Management, 12th. Edition, by Philip Kotler & Kevin Lane Keller.
Marketing Management, Philip Kotler, PHI - EEE, 11th. Edition, 2003.
Books referred:
Consumer Behavior In Indian Perspective
- Suja R.Nair
Retailing Management
- Swapna Pradhan
Marketing Management
- Philip Kotler
Research Methodology
– C.R. Kothari
Websites:
www.wikipedia.com
www.pantaloon.com
www.futuregroup.com
www.retailindia.com
Search Engines:
Google
89
ANNEXURE
Customer Satisfaction: A study of organized Retail outlets in Visakhapatnam city
QUESTIONAIRE
Name: …………………………………………………………
Age
1.
a. <25 yrs ( )
c. 41yrs-60yrs ( )
d. above 60yrs ( )
How far is the Big Bazaar from your residence?
a. < 2kms (
2.
b.25yrs-40yrs ( )
) b. 2kms-5kms (
) c. 6kms-10kms (
)
d. Above 10Kms (
)
How frequently do you visit the store?
a. Twice a week (
) b. Weekly (
) c. Fortnightly (
) d. Monthly (
)
e. Other (Pl. specify).....................
3.
What type of merchandise do you mostly purchase in the Outlet?
a. Grocery (
e. Apparels (
4.
)
f. All (
)
)
g. Others (Pl. specify)...................
b. Sometimes (
) c. Never (
) b. Rs.500-Rs.1000 (
c. Rs.1000-Rs. 2000 (
7.
) d. FMCG (
)
How much you buy per visit?
a. Below Rs.500 (
6.
)
) c. House hold items (
Do you pre list out the items for buying?
a. Always (
5.
) b. Vegetables &Fruits (
)
) d. Above Rs.2000 (
)
How do you rate the prices of merchandise (product) in comparison with other
Outlets?
a. Comparatively less (
)
b. Moderate (
)
c. Comparatively high (
) d. Not bothered about pricing (
)
Are all products available in the outlet as per your expectation?
a. Yes (
)
b. No (
)
90
8.
Are you satisfied with the quality of products available in the outlet?
a. Yes (
9.
)
)
b. No (
)
Do you like to have separate play area for children in the Outlet?
) b. No (
)
Do you prefer to have food court in the Outlet?
)
b. No (
)
Which one of the following do you prefer?
a. Store in a noisy, crowded environment
15.
(
)
b. Store in a vast, quiet shopping ambience (
)
Are you aware of the policy of exchange/return of merchandise?
a. Yes (
16.
)
b. No (
)
Have you ever return/exchanged any merchandise? what is your experience?
a. Quality (
) b. Breakage ( ) c. Change of Opinion ( )
d. Availability of superior product (
17.
) e. Any other (Pl. specify).........................
What makes you to come to the same outlet?
a. Variety of Merchandise (
c. Loyalty card (
f. Parking Facility (
18.
)
)
b. No (
)
a. Yes (
14.
c. To Some Extent (
Do you feel that you are getting value for money?
a. Yes (
13.
b. No (
)
a. Yes (
12.
)
Do you recommend other customers for their visit to the outlet?
a. Yes (
11.
b. No (
Did you ever face Out of Stock situation for any product?
a. Yes (
10.
)
)
b. Display of Merchandise (
) d. Discount coupons (
)
)
e. Lucky dip (
)
)
g. Others (Pl. specify)........................
How do you receive information about fresh arrivals/discount offers etc?
a. News paper advertisement ( ) b. Television ads ( ) c. Personal letters ( )
d .others(please specify) ……………………….
91
19.
Are you aware of special day marketing promotion?
a. Yes ( )
b. No ( )
20. Are you aware of availability of complaints & suggestions Book/Box in Retail
Outlet?
a. Yes (
21.
b. No (
)
Did retailer/employee pay attention to your complaint and solve it?
a. Yes (
22.
)
)
b. No (
)
Did you receive the intimation on the action taken?
a. Yes (
)
b. No (
)
Would you like to provide any suggestions?
...................................................................................................................................................
Thank you for your valuable time!!
92