4th Time Revised Sip Report

A STUDY ON INVENTORY MANAGEMENT AT

BIG BAZAR - UDUPI

Project report submitted in partial fulfillment of the requirement for the

MASTERS DEGREE IN

BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY

GANASH SHET

REGISTER NUMBER: 1116052

UNDER THE GUIDANCE OF

MRS PRATHIBHA SHETTY

Assistant Professor

ST. ALOYSIUS COLLEGE (AUTONOMOUS)

ALOYSIUS INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY(AIMIT)

MADOOR, MANGALORE-575022

2011-2013

St . Aloysius Institute of Management and information technology Page 1

A STUDY ON INVENTORY MANAGEMENT AT

BIG BAZAR- UDUPI

Project report submitted in partial fulfillment of the requirement for the

MASTERS DEGREE IN

BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY

GANESH SHET

REGISTER NUMBER: 1116052

UNDER THE GUIDANCE OF

MRS . PRATHIBHA SHETTY

Assistant Professor


ALOYSIUS INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY(AIMIT)


2011-2013



ALOYSIUS INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY (AIMIT)


CERTIFICATE

This is to certify that Mr. Ganesh Shet bearing Register Number: 1116052 is a bonafide

student of Master of Business Administration (MBA) course of this institute (2011-2013 batch).

The Project report titled “A STUDY ON INVENTORY MANAGEMENT AT BIG BAZAR”

is prepared by his under the guidance of Mrs. Prathibha Shetty in partial fulfillment of the

requirements for the degree of Master of Business Administration (MBA).

Professor & Dean

Place: Mangalore

Date: Chairman- MBA


Mrs. Prathibha ShettyAssistant ProfessorST. Aloysius College (Autonomous)Aloysius Institute of Management Information Technology (AIMIT)Mangalore

Date:10/11/2012

CERTIFICATE FROM THE GUIDE

This is to certify that the project “A Study on Inventory Management at BIG BAZAR” is a

bonafide work of Mr. Ganesh Shet Reg. No. 1116052 in partial fulfillment of the requirement

for the Master of Business Administration (MBA) under my research guidance.

Signature


DECLARATION

I, Mr. Ganesh Shet bearing Reg No. 1116052 hereby declare that the project entitled “STUDY

ON INVENTORY MANAGEMENT AT BIG BAZAR” has been prepared by me towards the

partial fulfillment of the requirements for the Master of Business Administration (MBA)

program under the guidance of Mrs. Prathibha Shetty

I also declare that this project report is my original work and has not previously formed the

basis for the award of any degree, diploma, associate ship, fellowship or other similar titles of

any other university.

Student Name & Signature:

Date: 10/11/2012 Ganesh Shet

Place: Mangalore Reg No: 1116052


ACKNOWLEDGEMENT

It all begins with one little word: thanks.

I’d like to start by thanking Almighty for blessing me so generously with so many gifts.

My gratitude to Rev. Fr. Denzil Lobo SJ, the Director of AIMIT.

My sincere gratitude to Rev. Dr. Oswald Mascarenhas SJ. for introducing me to problem centered research and also, for guiding me through to completion of this project.

To Dr. Rowena Wright, dean of MBA program and my internal guide Mrs. Prathibha Shetty, my sincere thanks for the necessary support and encouragement in completing my project.

I am greatly indebted to Ms. Henita Pinto HR Manager, for giving me an opportunity to carry out my project at big bazar and also to Mr. Arjun Rao (external guide) for all the support.

My most heartfelt and deep loving thanks to my parents and siblings and all others whose names I have not mentioned herein for being there at all times as a source of strength and support.

Signature

Ganesh Shet

Reg No: 1116052


TABLE OF CONTENT

CHAPTER TITLEPAGE

NUMBER

Executive Summary

One Introduction

Two Problem Identification

Three Problem Formulation

Four Problem Specification

FiveProblem Resolution Alternative

Investigation

Six Data Analysis

Seven Vendors Details

Eight Best Problem Resolution Selection

Nine Conclusion

Ten Bibliography


EXECUTIVE SUMMARY


Big bazaar is the service industry. It gives service to the different types of customer. Big bazaar

is the subsidiary organization of future group company not only the Karnataka, but also over all

India they have so many branches. They have headquarters in Mumbai. It gives so many

employment opportunities in overall India. It is purely customer oriented business.

The report is on “INADEQUANCY FACED BY THE ORGANIZATION WHILE

MANAGING THE INVENTORY” study conducted in big bazaar the details pertaining to the

study is below

Big bazaar has positioned them as a retail store which offers variety of good quality products at

best prices. Big bazaar offers variety of brands in different segment like apparels, luggage,

accessories and consumer durable, home entertainments (CD, DVD, Home Theater, Speaker

etc.), electronics(laptops, mobiles, cameras etc.). sales promotion and advertisements are the

two main promotion strategies which big bazaar adopts, big bazaar has their own and localize

form for vendor selection. Big bazaar made payment to their vendors on their credit limit one to

three weeks depends upon the vendors.

In other details like industry profile, company profile, overview of retail industry to adopted the

vision, mission and core values to run the business, to helpful of swot analysis in a organization,

organization structure of big bazaar to specify and categorize the problem identification,

problem specification, problem formulation and alternative solution of problem.

Primary data has been collected by visiting big bazaar situated at UDUPI meeting various

personnel and vendors. Secondary data have been collected through websites. Key findings on

the basis of various parameters like vendor selection, stock assessment, terms and condition,

logistics, promotion strategies, positioning, and product mix of a company has been done


CHAPTER: ONE

INTRODUCTION


Industrial Profile :

Retail in India is on a cusp of transformation. Organized retailing as a professional service

oriented set-up, is a recent phenomenon in India but is growing at a tremendous pace with a

potential of creating over 2million jobs within the next six years, assuming an 8 to 10 percent

share of organized retailing in the total retail business. The fast changing retail environment

demands that professionals learn new skills, improve their efficiency, and learn to think out of

the box. As retailers work directly with the customers and there is need for good managerial

talent to interpret and satisfy the needs and desires of customers. All this requires an education

that is intensive, comprehensive and closely linked to the retail business world. The need is to

have a project, which has all the inherent features of a business management program and

includes experiential learning throughout the project.

An overview on retail revolution in India

Retail in India is on a cusp of transformation. Organized retailing as a professional service-

oriented set-up, is a recent phenomenon in India but is growing at a tremendous pace with a

potential of creating over 2 million new (direct) jobs within the next six years, assuming an 8 to

10 per cent share of organized retailing in the total retail business. The fast changing retail

environment demands that professionals learn new skills, improve their efficiency, learn to

compete and think out of the box. As retailers work directly with customers and there is need

for good managerial talent to interpret and satisfy the needs and desires of customers. All this

requires an education that is intensive, comprehensive and closely linked to the retail business

world. The need is to have a program which has all the inherent features of a business

management program and includes experiential learning throughout the program.


Company Profile

Future group, led its founder & group CEO Mr. KISHORE BIYANI is one of India leading

business house with multiple business spanning across the consumption space. While retail

firms the core business activity of future group, group subsidiaries are present in consumer

finance, capital, insurance, brand development & entertainment. The first set of big bazaar store

open in 2001 in Kolkata, Hyderabad and Bangalore.

Pantaloons Retail is the flagship enterprise of the Future Group, which is positioned to cater to

the entire Indian consumption space. The Future Group operates through six verticals: Future

Retail (encompassing all retail businesses), Future Capital (financial products and services),

Future Brands (management of all brands owned or managed by group companies), Future

Space (management of retail real estate), Future Logistics (management of supply chain and

distribution) and Future Media (development and management of retail media). Future Capital

Holdings, the group's financial arm, focuses on asset management and consumer finance. It

manages two real estate investment funds (Horizon and Kshitij) and consumer-related private

equity fund, In division. It also plans to get into insurance, consumer credit and other consumer-

related financial products and services in the near future.

Big Bazaar

“Isse Sasta Aur Accha Kahin Nahi”

Big bazaar is consumer goods retail chain of future group. Future group also runs pantaloons,

lifestyle, EZONE, book depot, future bazaar, food bazaar, home town, fair price, brand factory

and central hypermarket. Future group is a subsidiary of PANTALOON retail INDIA limited

which is listed in NSE and BSE the most established stock markets in INDIA. Mr. KISHORE

BIYANI is the person behind big bazaar. He is CEO and md of PANTALOON retail INDIA

limited. Big bazaar is based on the concept of hypermarket or mega stores. In this kind of

hypermarket consumer get all the daily routine products under single roof. Big bazaar is having

more than 215 stores in more than 95 cities and towns.


Big bazaar launched in INDIA with a bang by opening its 4 stores in 4 major cities

BENGALURU, INDORE, HYDERABAD and KOLKATA within a time span of just 22

days.Big bazaar was started in INDIA in September 2001. It is now 10 years when big bazaar

was started and has a huge number of stores all over INDIA .Big bazaar was started as a fashion

hypermarket which had apparels, accessories, cosmetics and general merchandise on sale. Later

on a huge range of other products was added to the list. This list includes FMCG products,

electronics, furniture, stationery, etc. These stores are established on big areas having huge

displays and providing cool and comfortable shopping experience to consumers. These stores

are based on the concept of WALMART USA.

The starting logo of big bazaar was ‘ISSE SASTA AUR ACCHA KAHIN NAHIN’. After

completion of its 10 years in retail market the company has given a new logo ‘NAYE INDIA

KA BAZAAR’. In these 10 years big bazaar has become favorites among housewives and other

group of consumers too. In overall it has become the favorite retail store of every Indian family.

Most of outlets of big bazaar are on an area of minimum 50,000 square feet. In bigger

metropolis there are some huge stores on an area of 160,000 square feet. Big bazaar express

stores in small towns are also on 30,000 square feet area only. Big bazaar also has its own house

brand also which it promote in its stores. The most famous of them are clean mate, tasty treat,

sensei etc. Big bazaar has some great promotional schemes too. It offers buy 1 get 1 free on

many products. There are huge discounts on MRP of many products. Big bazaar also has special

schemes on weekends and weekdays. They keep on promoting products by having special

display of products. Sampling and testing of many products is available in store. Many small

companies even launch their products through big bazaar. There are many schemes by various

companies which are available in big bazaar only. Big bazaar also provides consumer durables

on low EMI and interest free installments also.

Big Bazaar has clearly emerged as the favorite shopping destination for millions of its

consumers, across the country, it’s success is a true testament to the emotional bonding it has

established with the Indian consumer, on account of its value offerings, asp rational 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. 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.

Vision

Future Group shall deliver Everything, Everywhere, Every time for Every Indian

Consumer in the most profitable manner.

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 reality, making consumptions affordable for all customer segment for classes and for masses.

We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination

shall be the driving force to make us successful.

Core Values

Indian ness: 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 & Positively: Simplicity and positively in our thought, business and action.

SWOT analysis of big bazaar


A SWOT analysis is done to know the strengths, weaknesses, opportunities and threats of any

company. This analysis will explain about the strengths, weaknesses, opportunities and threats

of big bazaar.

Strengths of big bazaar

Large variety option

Affordable price

Huge customer Base

Volume sales

Every Wednesday Low Price

Weaknesses of big bazaar

Unable to provide enough parking space to its customers

Not enough space for shopping in big bazaar to its customer

Open warehouse to kept product and its nearby vehicle parking

Threats for big bazaar

Opening up of other discounted stores like Vishal mega mart

Convenience of customers to nearby kirana stores

Availability of products in other retail outlet

Opportunities for big bazaar

To open up more and more number of big bazaars in different cities of

the country.

To grab the rural market

To bring in the customers of other retail outlet by dealing with branded products.

Add more products to its product category


ORGANIZATIONAL STRUCTURE OF THE STORE

STORE MANAGER

ASSISTANT STORE MANAGER

DEPARTMENT MANAGER

ASSISTANT DEPARTMENT MANAGER

TEAM LEADER

SALES PERSON OR PROMOTERS


CHAPTER: TWO

PROBLEM IDENTIFICATION

“INADAQUECY FACED BY THE ORGANIZATION WHILE MANAGING THE INVENTORY”


Inventory is a list for goods and materials or those goods and materials themselves, held

available in stock by a business. Inventory refers to any kind of resource having economic value

and is maintained to fulfill the recent and future needs of organization.

Acquiring an adequate supply assortment of merchandise from which customer can buy,

providing safety stock to meet unexpected demand or delay in inventory replenishment,

maintaining clear, correct and current records, purchasing the proper assortment of goods in

quantities that will maintain inventory level consistent with business requirements while

providing adequate safety stocks, reducing excessive inventories maintain promptly so that the

realized from clearing overstocks can be invested in merchandise with a greater market potential

these are maintain big bazaar in inventory management system.

From industry scanning we come to know that problem is of maintaining proper inventories as

the customers who visit the store in Udupi does not have any alternative or substitutes available

to Big bazaar store. Big Bazaar could not cope up to manage the stock due to the non-

availability of certain goods like cereals pulses and various goods to customers at right time in a

right place as the store has more than 1000 types of products so they face difficulty in

maintaining inventories in order to serve the customer this in turn leads to customer

dissatisfaction.

The above mentioned problem is identified via industry scanning and interacting with customers

who visit Big bazar especially when there is a Wednesday bazar every week Big bazar

announces the Wednesday bazar as the customer tend to come to the store but after coming they

face difficulties in finding the products required by them and problem has been identified by

information provided by store authorities as they face difficulties in getting several goods in

required quantity at right time. e.g., you are in trouble if you have to keep telling customers,

"I'm sorry we're out of that size. May we order it for you?" Even though the shirts are selling

briskly, you will lose customers if you don't have an item in stock. When the customer spends,

you have got to be ready with the goods. This is what inventory management is all about. In

many retail and wholesale operations, the single largest asset is inventory. Control of this

investment is vital. It will eliminate a number of the problems associated with capital shortages

and will also provide capital to permit expansion of operations for increased sales and profit.


CHAPTER: THREE

PROBLEM FORMULATION

Controllable variables


Communication

In communication floor incharge looks after the requirements of the different sections on the

floor available. These requirements are then passed on to the team leader and based on these

requirements fill up the requirements sent to purchase order and sent to the supplier only after

the prior approval of the department manager. Validity of the purchase order is three days. It

means that if any supplier fails to deliver the product within three days of order being made,

then the vendor will have to get a new purchase order. Quantity supplied by the supplier can be

less than what has been ordered by the company but not more than the order. Finally based on

the purchase order bill is made by the vendor. MRP cannot be changed. If MRP changes then

purchase order will have to be amended and big bazaar will have to change all its system for

billing purpose for that specific vendor.

Supply chain management

The supply chain process is operated by central distribution channel from there goods are

supplied to every big bazaar store. There is separate distribution channel for electronics and

furniture, which is known as home solution retail india limited, located at Bangalore. Udupi big

bazaar those unit also receives goods from local vendors unit.

Capacity of production

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.

Cash management

They make payment directly through head office that is located in Mumbai. Branches of big

bazaar only makes list of required goods then they send that order to vendors by that way

vendors collects invoice amount from big bazaar head office.

Technology employed

SAP


Big bazaar runs SAP one of the leading ERP solution provider. ERP means enterprise resource

planning, a software solution for various activities like inventory management, billing, supply

chain management.

Billing software/ Payment counter

The executive at the counter most probably is extremely busy and tries best to type in as fast as

possible ending up in putting up wrong quantities also be sure about the price of the particular

item selected. Cash back services neither reverse credit card enters. All the product billing

system Computerized and printout of item bill which have buy the product

Efficient sales management

Seeing problems from the customer’s perspective and see what is exact wants and needs of

customers on the basis of customer want. To find the problems and try to solve it efficiently and

effectively. Example: managing customers like “moments of truth” communicating effectively

through better listening, analyzing how customer perceptions are formed, managing anger and

other services behavior, dealing with long term consequences of services breakdowns,

negotiating solutions, generating an action plan for improved on the job effectiveness.

Uncontrollable variables

Delivery system

Big bazaar category maintains the flow of material from vendor to store or from vendor to

warehouse to store. Category keeps does not receive any demand order from store or

warehouse. Actually category keeps the record of movement of flow of material from

warehouse to store and also per day and per week sale on the floor, on the basis of this data and

also from market research, category estimates the demand of customer and makes purchase

order to the vendor.

Damage of goods


Check 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. If there is a

damage goods and goods do not match the details given in the goods received statement it

enters in the stock outward register and send 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.

Customer needs taste and preferences

It is an important element of a sales process, every company should survey their customers in

order to find out the satisfaction level among the consumers. Big bazaar also conducts periodic

survey in order to ascertain the satisfaction level in their consumers. Various activities are done

in order to enhance the shopping experience among buyers and various offers, discount

coupons, existing customers special coupons are given to customers who can be redeemed by

the customers in their future purchase from the store.

Supplier polices

While paying vendors have different payment structure based on different brands. As per their

negotiation made during agreement for example if it in the case of Hindustan Uniliver limited

make payment once in a week likewise in other brands Wipro, Dabur Amol Nestle, Sunfeast,

Britania And Parle have fifteen days period payment system.

Competition

In the retail market have very cut through competitions from various competitors like Tata’s star

bazaar, Reliance more, Shoppers stop, In-Orbit, Crossword, Hyper city, Lifestyle, Subhiksha,

Vishal mega mart, Nilgerie’s and so on.

Threat of substitute products

Low branded products like imitators adapters and local merchants have greater impact on this

substitute product like Ganesh soap, Shashi soap etc.


CHAPTER: FOUR

PROBLEM SPECIFICATION

Sales management is connected with the cash management as the debtor receivables

increase the inflow of cash there by increasing the efficiency of sales management.


Technology employed in the unit is correlated with the capacity of production and also

with supply chain management as when advanced technology is employed then the

sufficient goods can be supplied to customers.

Capacity of production is correlated with the sales management as and when production

of goods are done according to the demands of customers then the sales can be managed

easily.

Delivery system is correlated with the damage of goods as the goods are supplied with

via vans which are not custom designed to safeguard goods while transporting them to

far and near places.

Customer needs and preferences are interconnected with the threat of substitute products

as and when there is constant research on customer needs and preferences then there is

no chance of having threat for substitute products.

Supplier policies are interconnected with customer preferences as the company should

foresee that supplier policy is flexible to meet customer needs and preferences.

Communication is interconnected with delivery of goods as the goods can be delivered

within a stipulated time provided by the customer at the time of billing electronically.

Supply chain management is connected with the damage of goods as the goods are

supplied via vans which are not custom designed to safe guard goods and services.

Capacity of production is interconnected with customer needs and preferences as and

when the customer needs and preferences are known constantly through research then

the production can be increased or decreased according to customer needs and

preferences

Cash management is interconnected with supplier policies, the company must foresee

that the supplier’s policies are flexible so that there is sufficient amount of inflow of

funds for facilitating the increase of sales knowing customer preferences.

Competition is interconnected with technology as the competition can be beaten only

through implementing advanced technology which can satisfy customers by fulfilling

their preferences.

Sales management is interconnected with the threat of substitute products as the sales of

managed i.e. when they are made available according to customer needs and preferences

then customer don’t look for substitutes.


CHAPTER: FIVE

PROBLEM – RESOLUTION ALTERNATIVES


Training of employees is essential in order to foresee that customer needs and

preferences are met efficiently and also towards understanding of what exactly customer

needs and what are his wants by communicating with him and also collecting instant

feedback from the customer plays an important role towards continuous improvement.

Getting products from other branches of Big Bazar when products are not supplied by

the supplier at right time then the Big Bazar has to get the products from other branches

of Big bazar stationed at Mangalore, Mysore, and Hubli.

Minimize the non-moving item Big Bazar has to find the nonmoving product and

eliminate it from the stores by doing so there is redundancy in carrying cost of the item

and new item can be replaced with that of eliminated one.

Payment are to be made on time Big bazar has to revise it debtors policy and utilize the

same for meeting the short term liabilities so that there is sufficient inflow of required

goods from suppliers at right time.

Maintain optimum stock in the stores Big bazar has to maintain optimum stock by

employing various inventory techniques like FIFO LIFO and JIT so that the requirement

of customers are met efficiently.


CHAPTER: SIX

RESEARCH METHODOLOGY


Objectives of the study

To study on facing maintaining the inventory problem

To study on inventory management

To find out the how the maintain the stock

To find out the vendors payments system

To identify main competitors of big bazaar

Scope of the study

This report is based on the study conducted at big bazaar, Udupi

Methodology adopted for the study

Observing the working of various departments and understanding the operational strategies

followed by the company. Discussion with the managers and employees. Visiting and surfing

website of the company.

Sources of data

Primary data

The data collected for the first time through observation and interview method. The data is

collected by observing the working of various departments and also by interviewing the

managers of all the departments. It is also obtained by the help of staff members.

Secondary data

The data is collected by secondary sources company website.

Personal interview

Types of inventories maintained


The inventories maintained in the outlet of different product category. Mainly cycle inventory is

maintained for FMCG product category and FOOD category; safety level of inventory for

FMCG product and for apparel, seasonal inventory is maintained, because of fluctuation in

demand.

Decision of inventories are maintained

The store manager inspects the stocks time to time and also the demand of customers. Manager

maintains the stock in and stock out, so that the store manager can decide the level of inventory.

Manager also has seen the trends in the requirement, for e.g. appeals are ordered approximately

after one week and it is computerized dispatch system for purchase order. Big bazaar has

undergone tremendous technological advancement, as its supply chain has become completely

computerized. Once the product is sold automatically, the computer sends the request for back

up.

Uncertain demands of customers

The uncertain demands are met by either by getting it through other outlet of big bazaar or

through transfer of interest, to other outlets of future group like pantaloons.

Supply chain of perishable and imperishable goods

Perishable goods like vegetables are maintained with great care. Vegetables are bought on daily

basis on the demand and seasonal item. Whereas imperishable goods like utensils and staple

goods and electronic items are brought from the distribution channel used in supply chain

process is operated by central distribution channel from their goods are supplied to big bazaar

store. The modes of transportation which are used in supply chain process. Local vendors are

delivered goods their own vehicles which is staple goods.

Operational strategies followed by retail outlet to attract more customers


The strategy for attracting customers gives discount offer, when discount offers given by

manufactures to big bazaar and after keeping a safe margin of profit, they release the items on

discounts. They also give ads in television, go for promotional activities and put banners on

road sides. However once the customers is inside the store, then also strategies keep changing.

They keep thing in places where they see for longer duration for e.g. near comers of turning on

cash counter.

Area of maintenance

The store is fully computerized like billing, inventory management, electronic equipment’s near

the gates to check thieves; it has to take proper care of machines. Food items are to be regularly

checked, inventory room has to be checked regularly for any sort of leakages. Inventory room

has open godown it’s near vehicle parking.

Quality of food items

Food items are kept in separate places, both in inventory and at store. Food items which are

required to be kept at cold places, like cold drinks, cheese, milk, fruits etc. are kept in

refrigerators, whereas those which can be kept anyway, are kept on proper shelves.

Raising a purchase order to vendor

Big bazaar category maintains the flow of material from vendor to store or from vendor to

warehouse to store. Category does not receive any demand order from store or warehouse.

Actually category keeps the record of movement of flow of material from warehouse to store

and also per day and per week sale on the basis of this data and also from market research,

category estimates the demand of customer and makes purchase order to the vendor.

Mode of payment


Payments are made to the vendors through direct credit to vendors within a week its dependent

upon the vendors rules and regulation the credit period enjoyed by big bazaar is normally one

week or three weeks. Company directly transfers the bill amount to the vendors account.

Logistics

a) Transport

Vendors are responsible for the transportation of the goods and responsible for every damages

and expiry of the product and any mishappening. If the product are branded then the vendor has

the upper hand, big bazaar has to take pain for the display of such product and if the products

are not branded then the vendor will have to take pain for the display of their product.

b) warehousing

Company has its own warehouse but warehouse is not enough as orders are placed frequently.

Different store of big bazaar has different warehouse. Once the product reaches the warehouse it

is checked by the warehouse incharge and inward checklist is filled. This checklist includes

like; Purchase Order Number, Vendor Name, Invoice Number, Date, Quantity and Amount.

Invoice check, Purchase order check and Quality check: date of manufacturing, date of expiry,

batch number, ISI mark / EGG mark.

Promotion strategies

Sales promotion and advertisement are the two main promotion strategies which big bazaar

adopts. Prices of every goods in the store are available at less than what it is available at any

other store, Wednesday bazaar Hafte Ka Sabse Sasta Din, providing various goods at the lesser

price as compare to the other days in the week. The great exchange offer, i.e. exchange any old

item and get anything new at much lower prices. Customer get coupon in exchange to avail of

this offer. This is one of the best strategies adopted by big bazaar.


CHAPTER: SEVEN

VENDORS DETAILS IN UDUPI


VENDOR BRAND

Growell Enterprises, Mangalore HUL

Ocean Distributor, Udupi NESTLE

Mass Trader, Udupi ITC

Amazon Distributor, Udupi P&G

Henkel Market Ltd, Bangalore HENKEL

Modern Distributor, Udupi AMUL

Vijay Associates, Udupi GODREJ

Kamath Distributor, Udupi PEPSI

Hindustan Coca Cola Beverage COCA COLA

Ben And Company BRITANIA


CHAPTER: EIGHT

BEST PROBLEM RESOLUTION SELECTION

Payment are to be made on time Big bazar has to revise it debtors policy and utilize the

same for meeting the short term liabilities so that there is sufficient inflow of required

goods from suppliers at right time.


Getting products from other branches of Big Bazar when products are not supplied by

the supplier at right time then the Big Bazar has to get the products from other branches

of big bazar stationed at Mangalore, Mysore, and Hubli.

Maintain the optimum stock of goods when their they needed.

To use the KANBAN system for every store that finds out the quantity of goods because

in foreign country they use this system to find out the fault of problem.

.

To use the LIFO and FIFO system because a company that operates on the FIFO

principle has a policy of displaying and selling old stock before selling newly acquired

stock such polices make sense when a business sells fresh food or items that may go out

of fashion, grocery store. For example often own refrigerated cases that make it easy to

stock items from the back, pushing older products forward where shoppers are more

likely to see and buy them.


CHAPTER: NINE

CONCLUSION

Big bazaar is a major shopping complex for today’s customers. It is a place where customers

find variety of products at a reasonable price. Big bazaar has a good reputation of itself in the

market.it has positioned itself in the market as a discounted store. It holds a huge customer base.


The majority of customers belong to middle class family. The youth generation also likes

shopping and moving around big bazaar volume sales always take place in big bazaar,

maintained enough stock of product.

Big bazaar is a hypermarket as it provides various kinds of goods like apparels, grocery,

stationery, food items, electronic items, leather items, watches, jeweler, crockery, decorative

items, sport items, chocolates and many more. It competes with all the specialty stores of

different products which provide goods at a discounted rate all through the year. Now there are

more than 96 big bazaar in different cities of India, it seems that there is a vast growth of big

bazaar lying as customers demand is increasing for big bazaar.

Big bazaar is a hypermarket store where varieties of products are being sold on different

product category. It has emerged as a hub of shopping specialty for middle class people.

Different types of products starting from a baby food to pizzas all are available under one roof.

It is the middle class people who mostly do marketing from big bazaar. Grocery, apparels and

food items are the products which are demanded most by the customers of big bazaar. It seems

that the biggest competitors of big bazaar are the Kirana Stores, discounted specialty stores like

Vishal Mega Mart, The Tata Groups(Croma), Reliance Retail etc.

The problem of competition is increasing in global market places. It has forced the firms to

consider ways of improving the inventory control system. Severe competition makes it

necessary to continuously introduce new products and new designs of products. Now a day

every company will faces the competitions, because of that every company maintains a flexible

inventory system.it will depend upon how the company will respond to the fast changing market

needs, customer expectation and technological advancement.


CHAPTER: TEN

BIBLIOGRAPHY


WEBSITE :

http://www.pantaloon.com/bigbazaar.htm - 22/7/2012

http://en.wikipedia.org/wiki/Big_Bazaar - 12/08/2012

www. pantaloons retail (india) limited.html - 25/7/2012

http://dc313.4shared.com/doc/ukhePFJ5/preview.html - 4/11/2012

http://www.wisegeek.org/what-is-lifo-and-fifo.htm - 6/11/2012

Personal interview:

Mr. Arjun Rao (purchase category manager)

Mr. Manoj (logistics category manager)


http://www.wisegeek.org/what-is-lifo-and-fifo.htm

http://en.wikipedia.org/wiki/Big_Bazaar

http://www.pantaloon.com/bigbazaar.htm


4th Time Revised Sip Report

Documents

short term

middle class

good managerial

includes experiential

vishal mega

retailers

supply chain

central distribution