Big Bazaar

APROJECT REPORT OF BIG BAZAAR PCMC, PUNE

TITLE: - IMPROVE THE RETURN/SQ FT OF UTENSIL AND PLASTIC DEPARTMENT OR SECTION

PRESENTED BY:- PANKAJ GIDDWANI

INDIAN INSTITUTE OF MANAGEMENT TRAINING, PUNE

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CONTENTS

Acknowledgement

What is Retailing?

About Big Bazaar

Target & Achievement

Sabse Saste 3 Din

Space Mix and Space Management

Retail Marketing Mix Product Price Place/ Location Promotion Presentation Customer service People

Sales Promotion

Major Retailers

Reference

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Acknowledgement

Concentration, dedication and application are necessary but not sufficient to achieve any goal. These must be awarded by guidance, assistance and co-operation of some person to make it enable.Many people have given their valuable time and ideas to enable me to complete the research and the report. I am deeply indebted to all for their ideas and assistance, while bearing the entire responsibility for weakness in the Report. I am highly obliged to MR. SAMRAT PAUL (STORE MANAGER) and MR. VAIBHAV SAMUEL (ASSISTANT STORE MANAGER), MR. RAHUL DEVANGAN (OPERATIONAL MANAGER), MR. PANKAJ KUMAR SHARMA (TEAM LEADER) BIG BAZAAR, PCMC, PUNE for providing me an opportunity to undergo this project.I am also indebted to MR. AKHIL UTKARSH & ALL FACULTY MEMBERS of IIMT, PUNE who have been a constant source of inspiration and provided guidance to me at every point of time.My gratitude to all those, who RESPONDED TO MY QUESTIONNAIRE in a well, defined manner and helped me acquiring knowledge.Lastly, I thanks all those, who have directly or indirectly, helped me in this project..

PANKAJ GIDDWANI

INDIAN INSTITUTE OF MANAGEMENT TRAINING, PUNE

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What is Retailing?

Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non-business use. A retailer or retail store is any business enterprise whose sale volume comes primarily from retailing. Retailing thus may be understood as the final step in the distribution of merchandise, for consumption by the end consumers. Put simply, any firms that sells products to the final consumer is performing the function of retailing. It thus consists of all activities involved in the marketing of goods and services directly to the consumers for their personal, family or household use.

About Big Bazaar

Big Bazaar

Type Subsidiary of Pantaloon Group

Founded 2001

Headquarters Jogeshwari, Mumbai, India

Industry Retail

Products Department store

Parent Future Group

Website http://www.bigbazaar.com/

Big Bazaar is a chain of hypermarkets in India, with more than 100 stores in operation. It is a subsidiary of Pantaloon Retail

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India Ltd's, Future Group, offers a wide range of products including clothing, footwear, electronic appliances, groceries and kitchen utensils. You can also buy branded stuff from Reebok, Nike and Puma here

The word hypermarket is derived from the French word hypermarche, which is a combination of a supermarket and department store

The stores occupy an area which ranges from anywhere between 80,000 to 2,20,000 sq. ft. and offer a variety of food products like clothes, jewellery, hardware, sports equipment, books, CD’s, DVD’s, TV’s, electrical equipment and computers etc

Hypermarkets are today synonymous with one stop shopping. The cheapest prices will normally be found in these stores. Across the world, hypermarkets are usually part of a retail park, along with other shops, cafeterias and restaurants. A key element of differentiation between the hypermarket and the other retail formats is that they typically destination locations. The hypermarkets are designed to attract customers from a significantly large area with their low price offers, unique range and offers

The largest form of organized retailing today. It is an ideal shopping experience with an amalgamation of product, service and entertainment all under of a common roof

Big Bazaar itself the brand name The company has been able to leverage on its multi-formats-

multi-brand stores, secure prime locations at the best possible prices and command a strong bargaining power with suppliers, which provide it an edge over its competitors

Customers come in Big Bazaar for purchasing, entertainment and pacing here and there

It gives many facility to the customers like; Helpline, Baggage Counter, Parking, Exchange etc.

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Big Bazaar trying to provide customer with 3V’so Valueo Varietyo Volume

Big Bazaar divides into three categories; such as

o Food Bazaar

o Apparels

o General Merchandise:- At Big Bazaar, you will definitely get the best products at the best prices - that’s what we guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you

o Department stores

o Speciality stores

o Discount stores

o Category specialities

o Off-Price retailers

o Warehouse clubs

Here we talk about the department stores, because the Big Bazaar based on the many departments.

Department stores: Carry broad variety and deep assortment organized into separate department for displaying merchandise

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Major departments includes:- o Utensilso Plasticso Home decoro Luggageo Toyso Footwear etc.

Chains are very diverse and appeal to different marketso Unique in terms of the shopping experience they offer, the

services they provide and the atmosphere of the storeo Very promotion-oriented

Increased competition with discount and specialty stores creating problems

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Store Organization:

Target and Achievement

We have only 50 days data (Target and Achievement) of Utensils and Plastic Department or Section

Date Target of UTENSILS (Rs.)

Achievement (Rs.)

Target of PLASTICS (Rs.)

Achievement (Rs.)

02 Jan 2009 24177 26853 15077 1543303 Jan 2009 48354 52392 30155 4650804 Jan 2009 60442 82711 37694 56041

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Store Manager

Assistant Store Manager

Operational Manager

Department Manager

Additional Department Manager

Team Leader

Team Member

05 Jan 2009 20519 12148 13553 1308906 Jan 2009 20519 14205 13553 1199407 Jan 2009 20519 20796 13553 1475808 Jan 2009 30778 33100 20329 1955509 Jan 2009 20519 08489 13553 0822910 Jan 2009 41038 42684 27106 3265411 Jan 2009 51297 62498 33882 4006412 Jan 2009 17367 11443 26735 1195413 Jan 2009 17367 05724 26735 0927214 Jan 2009 17367 15197 26735 1462415 Jan 2009 26050 25981 40102 1728816 Jan 2009 17367 07687 26735 1429217 Jan 2009 34733 29821 53470 2625518 Jan 2009 43417 35719 66837 3970819 Jan 2009 59957 13110 26735 1289620 Jan 2009 59957 05913 26735 0817021 Jan 2009 59957 12704 26735 1234022 Jan 2009 89936 19581 40102 1924123 Jan 2009 59957 07307 26735 0833124 Jan 2009 119914 313034 53470 9420825 Jan 2009 149893 365480 66837 10853826 Jan 2009 59957 252241 15553 10358127 Jan 2009 59957 07693 15553 1494028 Jan 2009 59957 14116 15553 0703129 Jan 2009 89936 12515 23329 1177230 Jan 2009 59957 17077 15553 0882431 Jan 2009 119914 44214 31106 2795201 Feb2009 149893 49128 38882 3516102 Feb2009 23268 07673 14728 1144903 Feb2009 23268 14214 14728 1200704 Feb2009 23268 16310 14728 1516005 Feb2009 34903 22326 22092 1989606 Feb2009 23268 12550 14728 1125007 Feb2009 46537 42281 29456 3247208 Feb2009 58171 27379 36820 3156209 Feb2009 22916 12860 12290 0825810 Feb2009 22916 12034 12290 0769211 Feb2009 22916 32348 12290 1297912 Feb2009 34374 13068 18435 11698

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13 Feb2009 22916 19662 12290 0962114 Feb2009 45832 29929 24580 2246015 Feb2009 57290 49619 30724 3080416 Feb2009 20844 16447 14064 1053417 Feb2009 20844 18764 14064 1032518 Feb2009 20844 27151 14064 1236519 Feb2009 31266 44216 21095 2438720 Feb2009 20844 25314 14064 15157TOTAL 2287457 2065706 1256212 1174779

In above table;*We achieve the target only in dark lines

Now we see the target and achievement of Utensil and Plastic department according to per sq. ft.

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Utensil Plastic0

500

1000

1500

2000

2500

3000

Target (Rs.)Achievement (Rs.)

Target and Achievement (According to per sq. ft.)

Sabse Saste 3 Din 24, 25 and 26 of Jan.

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UtensilsFloor Space = 942 Sq FtTotal Target = 2287457 Rs.Per Sq Ft Total Target =2287457/942 = 2428.29 Rs.Per Sq Ft Total Achievement = 2065706/942 = 2192.89 Rs.

PlasticFloor Space = 782 Sq FtTotal Target = 1256212Per Sq Ft Total Target = 1256212/782 = 1606.41 Rs.Per Sq Ft Total Achievment = 1174779/782 = 1502.27 Rs.

Continuing its efforts to provide the best shopping deals and savings to Indian consumers, Big Bazaar is all set to make this years' Republic Day weekend shopping, truly memorable, with rock bottom prices, best possible discounts and mega offers. Apart from the flagship Big Bazaar and Food Bazaar stores, other future group retail formats like Furniture Bazaar, Electronic Bazaar, Depot, and Home Bazaar stores also the part of this mega campaign. From daily household needs of food and grocery to apparels, footwear, toys, luggage, kitchenware, bed and bath ware, home décor, furniture, electronics and fine gold jewellery; 'Sabse Saste 3 Din' have an exciting array of attractive offers, deals and discounts, ensuring something for everyone in the family, to shop for, and a maximum 'value for money' for all customers. Big Bazaar's 'Sabse Saste 3 Din' campaign has become synonymous with 'value shopping' for millions of consumers across India. Big Bazaar started this campaign on January 26, 2006 with 24 stores, followed by 43 stores next year and 80 stores last year. This year, with 106 Big Bazaar stores, Future Group reaches consumers in many more new towns and cities, with this novel shopping concept

The offer in Utensil Department, 1. Buy Nirlep Black Pearl 4 burner gas stove for Rs. 4995/- and get

goods worth Rs. 4170/- absolutely free. (1 Pressure cooker; 1 Non stick Tava; 1 Non stick Fry Pan with lid; 1 Non stick Fry Pan without lid; 1 Non Stick Kadhai and a 24pc Stainless Steel Dinner Set)

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2. Buy 1 Non Stick Tava and get a 3 liter. Inner lid pressure cooker worth Rs. 595/- absolutely free.

3. Buy 1 Non Stick Fry Pan Rs. 589 and get Tava, kadhai, Gas Toaster and Tadka Pan worth Rs.1224 free

The offer in Plastic Department1. IMPORTED RANGE OF PLASTIC HOUSEHOLD CONTAINERS,

MICROWAVE COOKWARE & TABLEWARE Flat 40 % Off

2. IMPORTED RANGE OF PLASTIC WATER /FRIDGE BOTTLE Buy 1 Get 1

3. ENTIRE RANGE OF PLASTIC BUCKETSBuy 1 Get 1

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Free!!!

Free!!!

Space Mix and Space Management

Space Mix: For the retailer space is money. The store has to be planned in such a way that it optimizes the selling area and minimizes the non-selling parts. The selling area is used to present the merchandise and the non-selling part is accounted for by circulation space, staircases, lifts, facilities, the back area, etc. The area mix in a typical department store is: selling area about 60%, circulation area 15% and back area 25%.

Area Mix

Circulation 15%Back Area 25%Selling 60%

Space Management:

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The placement of merchandise within the store in the most profitable manner is called space management. It is one of the most important activity, because the location of merchandise at different location, have different values. Some parts of store are more valuable because customers visit them more frequently, which results in higher sales. It is easier to make sales along. Space closest to the entrances and exits is the most valuable, and values decrease further into the store.

Retail Marketing Mix

The basic function of retail is to provide the right goods to the consumer, at the right place and time. Through the retail marketing mix we can compete with our competitors and achieve the sales target. The marketing tools that a retail organization uses to pursue its marketing objectives are termed as the retail marketing mix. *In retail marketing mix I mainly focus on the Utensils and Plastic department

Product:

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Retail Marketing Mix

Product

Price

PlacePromotion

Pesentation

Customer Service

People

One of the main elements of the retail marketing mix is the products and/or services that the store offers to the customer Products are also termed as merchandise. The different

products that the store offers are together termed as the merchandise mix

For example, if we consider the utensils section at a department store, the merchandise line would comprise hard anodised/non-stick, steel utensils, pressure cooker, pans, cooking tools, cutlery, aluminium utensils, kitchenware etc.

For example, if we consider the plastic section at a department store. The merchandise line would comprise cleaning articles, plastics bathware, plastics storages, plastics children articles, plastics kitchen articles, thermoware etc.

In utensils department we have the many brand such as; prestige, nirlep, nirali, dreamline, jaipan, tuffware, starware, dhanlaxmi, everyday, bluediamond, sacheta, sunflame, surya, shield, avani etc.

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In plastic department we have the many brand such as; cello, milton, bluepast, dreamline, dew, creative, pearlpet, pioneer, gala, homio, polyset, neelkamal etc.

*Big Bazaar has its own brand dearmline in utensils and plastic section

Price: Pricing is an integral part of the retail marketing mix. The price policy that the organization decides to follow depends on the customer profile of the target audience for its range of products.

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Big Bazaar gives the good price to the customers. Price makes the good relationship to the customers

Big Bazaar has a punch line isse sastaa aur achha kahin nahin It gives the high discount on the price like; Gas stove (20%,

25%, 35%) Non stick cookware (10%, 20%, 35%), buy one get one free plastics storage containers, buy one get one free plastics prince bucket etc.

Big Bazaar gives many offers to the customers like; the great Indian festival, Sabse saste 3 din etc. In these type of days it gives the huge discount on the product

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Place: The location of the retail store was considered to be the most important element of the retail marketing mix. Big Bazaar, PCMC, Pune is situated at premier plaza, where D-Mart, Levis, E-Zone, McDonalds, Cafe Coffee Day, Raymond’s suiting and shirting, Reebok Big Cinema like stores are situated. It is the best place for Big Bazaar

Promotion: The advertising budget, sales promotion, publicity and the public relations play a very important role in the competitive world of retailing. These help the store to achieve the short term goals. Promotion may be price led or occasional led, in which case special merchandise offered by the stores only for the occasion. Most retail organizations run promotions during festival seasons. Big Bazaar also provide the promotional offers on festival like Diwali, New year, Id, Valentine day etc. Discount depend on the products

Presentation: The manner in which the merchandise is presented at the store level is very important. This aspect not only deals with the store layout and the ambience created, but also with visual merchandising. Visual merchandising is the orderly, systematic way of putting stock on display in the retail store. Big Bazaar present their store as per the season and occasions like; on Diwali store is decorated with candles and flowers, on Christmas store is decorated with stars, ribbons, balloons, Christmas tree and on Independence day and Republic day store is decorated with green, orange and white balloons etc. that attract the customer.

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Customer Service: The support services that a retailer offers have become very important today. The credit policies and the product returns policies need to be clear not only to the sales staff, but also to the end customer. Relationship marketing, data warehousing and customer relations management are the new buzzwords in the industry today and all these are aimed at enhancing customer service. In Big Bazaar the product range is good and availability of the products are very easy. Big bazaar provides the low price comparison to the other retailers. Big Bazaar provide the good services to their customers like; baggage counter, parking, product change in seven days if customer have any sort of problems with the product, help line etc.

People: Retailers operate in a unique environment. The retail industry is characterised by a large number of inexperienced workers, who need to put in long hours of work. Most of the time, these employees are in direct contact with the customer and may face irate or unreasonable customers. The people who work at the front-end of a retail organisation are very important, as they are the face of the organization for the customers. Their attitude, behaviour, manners and products knowledge plays a very important role in building long-term relations with the customers.

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Sales Promotion

Sales promotion helps a retailer by way of attracting customer traffic and enables quick results to be achieved. Depending on the type of promotion carried out, it can help increase impulse buying, generate excitement and can motivate other channel members. Common retail promotions are illustrated:

1. Coupon: A coupon allows the buyer a reduction in price on specific merchandise or products, when the coupon is redeemed. Coupons may be delivered through newspaper, magazines, post or in products. Big Bazaar gives coupons to the customer. These coupons offer a certain amount of discount on an order during a specified time frame.

2. Contests: A contest needs consumers to compete and the prizes are based on skill. In the case of sweepstakes, the customer only needs to enter in his name and the winner is determined by chance. Many retailers allow customers to enter into competitions on the basis of the amount of purchases they have made.

3. Demonstrations: Demonstrations are used to show the customers, the performance capabilities of the products. Videos may also be used to aid the demonstrations and show the use of the products.

4. Product/brand promotions and schemes: This is a straightforward scheme in which the consumer either gets a monetary discount on the purchase of a particular product/s

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or gets two products of the same type for the price of one – the “buy one get one free” scheme is example of same. Big bazaar also does this type of sales promotion like; in utensils department Jaipan non-stick buy one get four free, in plastics department important container buy one get one free

5. Samples: Sampling provides the consumers with an opportunity to use the product at no cost. Various techniques may be adopted for sampling and this may take the form of in-store sampling – where the in-store staff hands out the samples.

6. Shopping Card: Many retailers make the own shopping card. It is very easy way to promote the sales. Future Group introduces the new future prepaid card. It is easily used in all future groups’ retail outlets.

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Major Retailers

India’s top retailers are largely lifestyle, clothing and apparel stores

This is followed by grocery stores Following the past trends and business models in the west

retail giants such as Pantaloon, Shoppers’ Stop and Lifestyle are likely to target metros and small cities almost doubling their current number of stores

These Wal-Mart wannabes have the economy of scale to be low –medium cost retailers pocketing narrow margin

Leading Retailers

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Reference and Web Resources

Books: Marketing Management by Philip Kotler Retail Management by Swapna Pradhan Retail and Distribution Management by Dr. B. R. Londhe Retail Management by Gibson G. Vedamani

Web Sites: www.pantaloon.com www.bigbazaar.com www.futuregroup.in www.google.com

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