big bazaar info project

Executive Summary

Indian retail sector is witnessing one of the most hectic Marketing activities of all times.  The

companies are fighting to win the hearts of customer who is God said by the business tycoons.

There is always a ‘first mover advantage’ in an upcoming sector. In India, that advantage goes to

“BIG BAZAAR”. It has brought about many changes in the buying habits of people. It has created

formats, which provide all items under one roof at low rates, or so it claims. In this project, we will

study its marketing strategies and promotional activities.

The research titled ‘A Study on the effective promotional strategy which influences customer

to purchase a product of Big Bazaar’ helps us to understand the effect of  promotional strategy 

which is responsible for attracting customer towards big bazaar This study helpful to top level

management to improve the present promotional strategy  of BIG BAZAAR.

The report deals with the impact of promotional activity which attracting customer towards big

bazaar.

The research was carried out as per the steps of Marketing Research. The well supportive

objectives were set for the study. To meet the objectives primary research was undertaken. The data

collection approach adopted was experimental research & survey research. The instrument used for

the data collection was observation & questionnaire. The target respondents were the visitors of BIG

BAZAAR, with the sample size of 90 for the study of sales management of the company. Tables &

charts were used to translate responses into meaningful information to get the most out of the

collected data. Based on those the inferences have been drawn with peer supportive data.

Objectives:

To know the effective promotional strategy which influence customer to purchase a product of Big

Bazaar.

Sub-objectives:

1. To know the promotional strategy of big bazaar

2. How Big Bazaar Establish and maintain the in retailing through promotion

Recommendations: Big bazaar should keep offers in regular intervals so that there should not be a long term gap,

because offer is the most influencing factor which is responsible for customer purchase decision. And they also concentrate on T V advertisement they should show ads and promotional offers in a

regular interval in three languages like Kannada Hindi English. Hoarding should be placed uncovered area.

Limitations: The study was restricted to only the customers of BIG BAZAAR, Gurgaon.

The time constant was a limiting factor, as more time required carrying out study on other aspects of

the topic. The result and analysis based on the customer survey method and small  sample size has  taken

only 90 Findings are related to particular areas

Conclusion:

Indian retail sector is witnessing one of the most hectic Marketing activities of all times.  The

companies are fighting to win the hearts of customer who is God said by the business tycoons.

There is always a ‘first mover advantage’ in an upcoming sector. In India, that advantage goes to

“BIG BAZAAR”. It has brought about many changes in the buying habits of people. It has created

formats, which provide all items less than one roof at low rates.

The consumer’s preferences are changing & they are moving from Traditional Kirana stores to

Modern Retail outlet. It’s the main challenge to the Modern retail outlets to attract the customers

towards them from that of competitors. To attract more customers companies have to carry out the

promotional activities in unique way. BIG BAZAAR has maintained that uniqueness & has

succeeded in attracting customers.

The promotional activity of the company, which famous as Less Price than others as it

says ‘Nobody Sells Cheaper and Better!’is made its place in minds of customer. As the

competition is becoming stiff in the market the activities conducted by the company are unique, that

have brought fruitful result to the company. Among them sales Promotions is one of the leading

activity or unique among all other activities & has high influence on the customer walk-in.

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The above article was extracted from dissertations in Marketing, Finance, Human Resources,

Strategy, Information Systems by the students from Skyline College. Skyline College is amongst the

top MBA and BBA institutes in Delhi, Gurgaon (NCR).

For more information on Skyline College or the MBA, BBA programmes please CLICK HERE. For

MBA, BBA Admission queries please CLICK HERE   , & Also Skyline blog .

 PowerPoint Presentation: Retailing Strategy @ To be presented by:- Abhijit, Abhishek, Harshvardhan, Koushik, Mohd. Zia, Raman Pathak

Let us understand the Retailing… : Let us understand the Retailing… It is defined as a set of activities or steps used to sell a product or a service to consumer for their personal or family use. The word ‘retail’ is derived from the French word retailing , meaning ‘to cut a piece of ’ or ‘to break bulk’ .

Indian Retail Industry: Size 2008 2010 % Change Estimated size of retail in India (in $bn) 353 416 18 Share of organized retail (%) in India 7 12 71 Size of organized retail in India (in Rs) 78,300 Cr 2,30,000 Cr 194 Source: http://www.indiaretailing.com/india-retail-report.asp Indian Retail Industry

Existing Organized Retailing Formats in India: Existing Organized Retailing Formats in India Branded Stores Hyper Markets Super Markets Departmental Stores Specialty Stores Convenience Stores Shopping Malls Discount Stores

PowerPoint Presentation: Retail Format Hypermarket Founded 2001 Headquarters Jogeshwari, Mumbai Industry Retail Promoter Kishore Biyani Parent Pantaloon Retail India Ltd. Punch line ‘ Is se sasta aur accha kahin nahin’ Beat the Rising inflation! Big Bazaar is the solution!

Customer Segmentation: Customer Segmentation One stop shopping at discounted prices. Provides Best Products at the Best Prices. Targets price conscious majority segment of customers. Big Bazaar targets higher and upper middle class customers. The large and growing young working population is a preferred customer segment. Big Bazaar specifically targets working women and home makers who are the primary decision makers.

Life Cycle: Life Cycle Decline Introduction Growth Maturity Sales Time

Positioning: Positioning High Service High Price Low Price Low Service

Retail Marketing Mix: Retail Marketing Mix Product Promotion Price Place Process People Physical Evidence 7 P s

Product Mix: Product Mix Farm Products Chill Station Food Furniture Fashion & Jewellery Apparels Electronics Personal & Home Care Child Care & Toys

Product Mix: Product Mix Various in-house brands are promoted. (Private Labels) Products of all the major brands are available at Big Bazaar Provides Best Products at the Best Prices. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD-players and 25,000 microwave-ovens. In all, the fashion, electronics and travel segments made up about 70% of sales. Last year, these categories made up about 63%.

Price: Price The tag-line is “Is se sasta aur accha aur kahin nahi”. They work on the model of economics of scale. There pricing objective is to get “Maximum Market Share”. The various techniques used at Big Bazaar are: - Value Pricing Promotional Pricing Low interest financing Psychological discounting Special event pricing Differentiated Pricing Time pricing Bundling

Price: Price Value Pricing (EDLP – Every Day Low Pricing): Big Bazaar promises consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping. Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga Pooja). Differentiated Pricing: Time pricing, i.e., difference in rate based on peak and non-peak hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar. Bundling: Selling combo-packs and offering discount to customers. The combo-packs add value to customer.

Price: Price Differential Pricing

Price: Price Differential Pricing

Price: Price Psychological Pricing

Price: Price Time Pricing Value Pricing

Price: Price Bundling Pricing

Place: Place 148 Stores in 70 cities across India, covering an operational retail space of 6 million square feet. High street area of cities & with approachable destination.

Place: Place Supply Chain Management The food supply chain is complex and difficult to manage due to its perishable nature and short shelf life of the products as compared to other supply chains like electronics, home needs, consumer durables etc. It also requires a robust infrastructure of warehouses and transportation network connecting suppliers, manufacturers, distributors and retailers. The complexity of food supply chain increases further because of the below mentioned parameters. Food safety requirements Regulatory requirements Short shelf life of products leading to expiry and wastage Product recalls Product traceability requirements Effective handling of customer complaints High order frequency and low volumes

Promotion: Promotion “Star Parivar Collection”

Promotion: Promotion

Promotion: Promotion Saal ke sabse saste 3/4 din ( 13 / 14 – 16 August and 23 / 24 – 26 January) Future Card (3% Discount) Shakti Card Brand Endorsement by M.S.Dhoni & Asin Exchange Offer – ‘Junk Swap Offer’ Point-of-Purchase Promotions

Promotion: Promotion Big Bazaar launches ‘Sarodia Utsav’ Some special Big Bazaar offers for Pujo 2009: Shop for Rs 499/- & get reimbursement of your Up & Down Local Train Fare Shop for Rs.2999/- & get Timex Pair Watch of MRP 1490/- for 599/- Shop for Rs 999/- & participate in lucky draw Mega Prize- 2 BHK Flat in Greenfield city Bumper prize: 12 bikes

Promotion: Promotion Big Bazaar’s ‘Sabse Saste 4 Din’ is back with ‘abundant’ deals The years most economical four days of shopping Many exciting offers across categories and price points Consumer to get ‘rock bottom prices, mega deals & discounts’ Big Bazaar presents ‘Super hits of 2009’ The Best of 2009 offers - A special festive reward for customers This is a final chance for customers who missed the bus on Big Bazaar’s most sought after offers Sabse Saste 3 Din, Mahabachat and Maha Exchange.

Promotion: Promotion Bring anything old and get anything new’ at Big Bazaar's 'The Great Exchange Offer’ The value will be in the form of coupons, which can then be used by customers to get extra savings of 20-25% over & above the special offers running in-store. Big Bazaar introduced Family Centre This Family Center aims to build and nurture relationships with customers of multiple communities, be they Bengalis, Christians, Muslims, Marwaris…becoming the preferred shopping destination for their entire family.

Promotion: 

Promotion Co-Branding – ICICI Bank Ltd. Exclusive Benefits No Finance charges on EMI Purchases at Big Bazaar. On a purchase of Rs.1500 and above in a single transaction, you can pay back the amount in 3 equal monthly installments, without incurring any financing charges. You also get 1 Reward Point per Rs 100 of EMI purchase (This scheme is optional and has to be availed before using the Credit Card for the purchase, at predestinated ICICI Bank terminals). Get Voucher worth Rs 250 to be redeemed against purchase of Rs.500 or more at any Big Bazaar Outlet on payment through the ICICI Bank -Big Bazaar Credit Card. Get 1 Kg sugar FREE per month.

Promotion: Promotion Co-Branding – ICICI Bank Ltd. Exclusive Benefits 6 reward points on every Rs. 100/- spent at Big Bazaar (Except EMI Purchase) 1 reward point for all non Big Bazaar purchases. Special payment counters for Cardholders. Priority entry to Cardholders during high traffic. Special preview day during annual sale at Big Bazaar. Exclusive offer for Cardholders from time to time. Regular features of ICICI Bank Sterling Silver Card and facilities of Big Bazaar. All Rewards points earned can be converted into Big Bazaar Vouchers.

Promotion: Promotion Co-Branding – ICICI Bank Ltd. Other Benefits Comprehensive Insurance for primary Cards upto Rs. 10 lakhs. Baggage insurance upto Rs. 10,000. Hospitalization Benefit policy upto Rs.25,000. Purchase protection of Rs.20,000. Comprehensive travel related insurance. Zero Lost Card liability. Dial a draft at 1% fee. Lifetime Balance Transfer offer: 0.75% for first 6 months (9% p.a.), followed by 1.49% (17.88% p.a.) thereafter. Comprehensive Travel Benefits. Accepted at over 22 million merchant establishments globally.

Promotion: Promotion

People: People At the senior management level, the group hired high profile executives from reputed organizations like Goldman Sachs , Coca-Cola India, PRIL also tied up with a few management schools to create a management talent pool for the lower levels. Well-trained staff, the staff employed by Big-Bazaar are well-suited for modern retail. Employ close to 30,000 people and employ around 500 more per month. Well-dressed staff improves the overall appearance of store. Use scenario planning as a tool for quick decision making multiple counters for payment, staff at store to keep baggage and security guards at every gate, makes for a customer-friendly atmosphere. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers.

Process: Process Big Bazaar has implemented SAP with an investment of $10 Million in keeping pace with the technology and it is currently in the process of setting up a SAP consultancy software. SAP will be helpful in building robust transaction management system. Multiple counters with trolleys to carry the items purchased. Proper display / posters of the place like (DAL, SOAP, etc.). Home delivery counters also started at many places.

Process: Process Baggage Counter Inside the Store Take Trolley Selection of Merchandise Billing Counter Exit Process at Big Bazaar Store – From Entry Till Exit In addition, to facilitate the billing process, the store has numbers of check-out and Express counters.

Process: Process

Physical Evidence: Physical Evidence Big Bazaar stores are normally ‘U shaped’ and well planned & designed Stylized to provide ample space to move around the store lay out has been designed to give a very contemporary and international look with wide aisle for easy movements. Products are displayed and highlighted with customer friendly signage's, lighting and fixtures to enable hassle-free shopping for all. Products in Big Bazaar are properly stacked in racks. Throughout the store there are boards/written displays put up which help in identifying the location of a product. appropriate racks.

Physical Evidence: Physical Evidence

Physical Evidence: Physical Evidence

Strategies @: Strategies @ Influence of Sarvana Stores Located in Theyagraya Nagar, Chennai Many people think that Big Bazaar was inspired by Wall-Mart but the truth is that Kishore Biyani and his team members are neither inspired by US ways of doing retailing nor they have been to US much. The credit for foundation and inspiration goes to Saravana Store, a family-run 25-years-old store, whose philosophy was – low margin, high turnover. In that store, food, groceries, clothes, everything had a separate section. It had around 120 people just to manage crowd. The single shop was doing business of more than INR 200 Crore per year. This shop was the template for Big Bazaar.

Strategies @: Strategies @ Right Product Mix: To overcome lower gross margins of 10 to 12% on Food & Grocery (F&G), retailers are trying to optimize the product mix of F&G and General merchandise. A product mix comprising 40% food and 60% of non-food could enhance gross margins to a respectable 18-19%. Big Bazaar is able to do even better with 63% of non-food. More Non-food Display: Higher non-food sales are achieved by allocating higher shelf and display space. Food display space is restricted to around 20%. This works, because shoppers, in any case, are there to shop for food items.

Strategies @: Store Labels: Hypermarkets are also working hard to discourage sales of branded products. They are promoting their own labels, though, it is not easy to promote them beyond a point due to strong customer brand loyalties for a class of goods, such as, FMCG. Big Bazaar has been able to touch only 15%. Increased Volumes: “ Suppliers themselves are willing to give away more if the volumes are high enough ”. Bypassing Middlemen: Big Bazaar is also striving hard to keep costs in check by improving sourcing efficiencies. By pruning on the middleman and reaching farm gates, Big Bazaar is able to improve margins. “ There are too many middlemen ” says Mr. Kishore Biyani. Strategies @

Strategies @: Real Estate Game: For a retailer, location is one of the most important things. According to Kishore Biyani, real estate cost should be less than 5% of total sales of store in order to provide maximum benefits to customer. The strategic decisions to secure spaces before other retailers join in have resulted in cost-saving. Also, it has created early presence in market. Nurturing Relationships: Kishore Biyani follows strategy to develop trust and nurture relationships with suppliers. This trust led to strategically correct decisions most of the time. Whoever works with Future Group, either leaves in initial deals or continues forever. Back-end Operations, Supply Chain : Harvard Business School just did a case study on Future Group’ Supply Chain and it says that Future Group’ is the most cost-effective supply chain in the world. India may not have a modern supply chain but it definitely has a cost-effective one. Strategies @

Brick and Click Model: Brick and Click Model

Guerilla Marketing Strategy: Guerilla Marketing Strategy Future Group have come up with 3 catchy/cocky and cheeky ad campaigns which surely do catch our eyes and surely one can’t resist appreciating the same. Keep West-aSide. Make a smart choice! Change Your Lifestyle. Make a smart choice! Shoppers! Stop. Make a smart choice!

Guerilla Marketing Strategy: Guerilla Marketing Strategy

Conclusion: Conclusion Over emphasize on promoting private labels (Big Bazaar) could prove counterproductive. Changes in pricing strategy has vital role in retailing. Proximity & Location of the Store affects the overall performance of a retail outlet. Supply Chain Management is the key of success in retailing. Indirectly or Directly Co-Branding also gives the benefits. Process should be such that reduces the transaction time. Cost of Real Estate & Employees has to be controlled.

Recommendations: Recommendations Big Bazaar should try and increase the current market penetration.` The Big Bazaar needs to have a robust supply chain network; the big bazaar should concentrate in enhancing its edge on supply chain network. It should try to develop robust home delivery mechanism in its current area of operation. Mechanization

PowerPoint Presentation: Thank You !!!

Strategy[edit]

3-C Theory[edit]

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.[3] Big Bazaar has divided India into three segments:

1. India one: Consuming class which includes upper middle and lower middle class (14% of India's

population).

2. India two: Serving class which includes people like drivers, household helps, office peons, liftmen,

washermen, etc. (55% of India's population) and

3. India three: Struggling class (remaining 31% of India's population).

Schemes and innovations[edit]

Wednesday Bazaar[edit]

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

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

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

concept was ‘to give home makers the power to save the most’.[4]

Maha Bachat[edit]

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

with attractive promotional offers across the company outlets. Over the years, the concept has grown to

become a six-day biannual campaign. During this campaign, attractive offers are given in all the value

formats including Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar.[5]

The Great Exchange Offer[edit]

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

goods for Big Bazaar coupons. The coupons can be redeemed later for buying brand new goods from Big

Bazaar outlets across the nation.[6]

Advertising campaigns and marketing initiatives[edit]

In view of the increasing competition in the retail market, Big Bazaar has introduced certain steps to keep

itself updated and continue promoting the brand.

New Logo[edit]

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

came up with a new logo for the company with a new tag line that says: ‘Naye India Ka Bazaar’ (Market

for New India). This replaces the earlier tag line: ‘Isse Sasta Aur Kahin Nahin’ (Nothing is Cheaper than

Here).

Advertising initiatives[edit]

Big Bazaar has recently launched a 360-degree promotion drive covering the three prime media,

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

developed by Mudra Communications.[7]

Timeline[edit]

2001

Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad [8]

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

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

2007

The 50th Big Bazaar store is launched in Kanpur

Big Bazaar partners with Futurebazaar.com to launch India's most popular 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.

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

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.[9]

2011

Big Bazaar forays into the rural wholesale and distribution business through ‘Aadhaar Wholesale’

store at Kalol, Gujarat.

Big Bazaar has come up a new logo with a new tag line: ‘Naye India Ka Bazaar’.[10]

200th store opened in India [11]

Future Group has launched its latest venture, Foodhall – a premium food destination across 10

metros in India [12]

For the convenience of the online customers, Big Bazaar has started free shipping on all orders

above Rs. 1000 [13]

Entered into an agreement with Hindustan Unilever to co-develop and co-brand bakery products,

which would be sold exclusively at Big Bazaar stores.[14]

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.[15]

Partnered with Disney to launch "Kidz Cookies", exclusively for kids across India.[16]

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.[17]

Big Bazaar

Retailing in India has witnessed a huge growth in the recent years. Retailing in India is gradually

inching its way towards becoming the next boom. The Indian retail industry is largest among all the

industries in India, According to the India Retail Report 2009 compiled by research group “Images

F&R Research” rising economic growth will fuel the growth of industry and it will touch Rs. 18,10,000

crores by 2010. 

Big Bazaar is Indian personification of retail. It’s like an Indian bazaar or mandi or mela. Big Bazaar,

which has become a household name by now, has emerged as one of the prominent organised

retailing player in Indian arena. It has been successful in establishing a chain of shopping malls in

various cities of India, reflecting the look and feel of Indian bazaars at their modern outlets targeting

higher and upper middle class customers with a strong distribution network. 

Big Bazaar faces a formidable competition from the unorganised sector. Change in consumer

behavior, intensification of competition with the emergence of new players has made it difficult to

achieve the forecasted success. An insight into unorganised retailing reveals that it enjoys higher

margin due to many reasons including low operational cost, and low taxations.

Being aware of the threats and opportunities present in the Indian retailing, the top management at

Big bazaar planned various strategic alternatives. Big Bazaar has huge promotion budgets. The

biggest idea behind all advertisements is to prompt people to do bulk shopping. There are two types

of promotional strategies of big bazaar. One is the holistic advertisement which promotes the brand

and creates awareness among people. Other type of promotion is the particular store oriented

promotion. There are promotional efforts even inside the store 

Big Bazaar ensures that no other kirana store / departmental store are offering considerable

discount compared to its own price. This helped it Big Bazaar in being the "value for money" store.

Product mix at Big Bazaar is compared to kirana store. 

7P Analysis of Big Bazaar

• Product: Big Bazaar offers a wide range of products which range from apparels, food, farm

products, furniture, child care, toys, etc. Products of all the major brands are available at Big Bazaar

• Price: The tag-line is "Is se Sasta aur accha aur kahin nahi". They work on the model of economics

of scale. There pricing objective is to get "Maximum Market Share". 

• Place: Big Bazaar stores are located in 50 cities with 75 outlets. Big Bazaar has presence in almost

all the major Indian cities. 

• Promotion: The various promotion techniques used at Big Bazaar include "Saal ke sabse saste

teen din", Future Card (the card offers 3% discount) Brand Endorsement by M. S. Dhoni, Exchange

Offer - ‘Junk Swap Offer’, Point-of-Purchase Promotions. Advertising has played a crucial role in

building of the brand. Big Bazaar advertisements are seen in print media, TV, Radio (FM) and road-

side bill-boards.

• People: Well-trained and dressed staff, Employees are motivated to think out-of-the-box.

• Process: Multiple counters with trolleys to carry the items purchased. Proper display / posters of

the place like (DAL, SOAP, etc.). 

• Physical Evidence: It deals with the final deliverable or the display of written facts. This includes the

current system and available facilities.

Strategic Decisions Taken to Build the Big Bazaar Brand

Indian customers prefer to purchase grains, grams, etc., after touching them, so it’s better not to sell

in polythene packs. Big Bazaar has counters where you can touch wheat, rice, sugar, etc., before

purchasing. Advertisements about schemes and offers through local newspapers, radio in local

languages, inspires customer more than the traditional ways. For Indians, shopping is an

entertainment; they come in groups, with families so Big Bazaar offers something for every section

of family. Their newspaper advertisements are present just before launch of any new scheme. This

creates aura about the Big Bazaar brand in the minds of customers. Big Bazaar bill-boards are

displayed on prime locations in various cities as a brand building exercise. They display the catch-

phrases now-a-days. For a retailer, location is one of the most important things. The strategic

decisions to secure spaces before other retailers join in have resulted in creating early presence in

market.

Posted in Retail Industry, Retail Quotes, Retail Strategy

“Rich people love low prices, the poor need   them” Posted on October 22, 2006 | Leave a comment

Hypermarkets have caught on the

imagination of poor and rich alike.

Shoppers are thronging to 25 or so of the

country’s Hypermarkets. And, there is a

scope for 1,000 such markets in 67 retail

destinations by 2010, says an

interesting report in Rediff.

“We expected 3,500 footfalls a day, but,

by the second week of its launch in May,

the figure stood at 12,500,” said Andrew Levermore, CEO, K. Raheja promoted

HyperCity Retail.

What makes Hyper markets click? The convenience of one stop shopping, lower prices,

or wider choice of products? May be all, but price appears to be the major driver of

increasing footfalls.

People may love to shop, but their eyes never stray too far from the price tag. “Rich

people love low prices, the poor need them,” says Livermore. “Unless your prices are

the best, especially in the food and groceries (F&G) segment, there’s little point,” adds

Levermore, explaining that it’s actually the perceived value that customers believe

they’re getting that is going to matter.

So, how are hypermarket retailers coping with the pressure to offer lower prices and still

make money? Here, are a few of the strategies followed by some of them:

Right Product Mix: To overcome lower gross margins of 10 to 12% on Food & Grocery

(F&G), retailers are trying to optimise the product mix of F&G and General merchandise.

A product mix comprising 40% food and 60% of non-food could enhance gross margins

to a respectable 18-19%. While Hypercity, is able to achieve a mix of 60  non-food to 40

food, Big Bazar is able to do even better with 63% of non-food.

More Non-food Display: Higher non-food sales are achieved by allocating higher shelf

and display space. Food display space is restricted to around 20%. This works, because

shoppers, in any case, are there to shop for food items.

Store Labels: Hypermarkets are also working hard to discourage sales of branded

products. They are promoting their own labels, though, it is not easy to promote them

beyond a point due to strong customer brand loyalties for a class of goods, such as,

FMCG. While Hypercity has achieved store labels sale of around 30%, Trent promoted

Star Bazar has been able to touch only 10%.

Increased Volumes: “Suppliers themselves are willing to give away more if the

volumes are high enough,” says Neeti Chopra, Marketing Head Trent.

Bypassing Middlemen: Retailers are also striving hard to keep costs in check by

improving sourcing efficiencies. By pruning on the middleman and reaching farm gates,

retailers are able to improve margins. “There are too many middlemen” says

Levermore.

MARKETING STRATEGY OF BIG BAZAAR INDIAIn this assignment, I have described its marketing strategies and promotional activities.The assignment is based on ‘ the effective marketing strategy which influences customer to purchase a product of Big Bazaar’ helps to understand the effect of  marketing strategy  which is responsible for attracting customer towards big bazaar.The research was carried out as per the steps of Marketing Research. The well supportive objectives were set for the study. To meet the objectives primary research was undertaken. The data collection approach adopted was experimental research.Big Bazaar is the fastest growing and most successful Retail chain in India. Big bazaar is the first retail chain to be started in India and is the largest until now. In the later part of the assignment I have applied 4P’s marketing strategy to show that how Big Bazaar has reached from introduction stage to growth stage and observed via some points that this company is right now in growth stage of Product Life Cycle model. I have also analyzed the SWOT showing how this company made its brand more effective. I have also described some suggestions to improve its brand image towards customers.

ContentsINTRODUCTION:BIG BAZAAR is a name renowned in Retail. It is now a brand image in private retail sector. Wal-Mart is the retail stores of USA and is known all over the world for its fashionable and affordable materials and is known as one of the best in its field, big bazaar can be said as the Wal-Mart of India running a chain of more than 100 retail stores in India.People around the country thinks that big bazaar is inspired from Wal-Mart and it is quite obvious to think as Wal-Mart is world leading chain of retail shopping but actually the idea of big bazaar came to the CEO Kishore Biyanifrom a 25 years old store “Saravana” which was owned by a family and worked on the philosophy of “low margin high turnover”.Following its slogan of “isse sasta or achha kahin nahi”(Meaning cannot find cheaper and better than this anywhere) it provides the consumer with the best of the materials at a rate less than rest of the market.Big bazaar is the subsidiary of Future Group, Pantaloons Retail India ltd.The brain behind big bazaar is the CEO of Future Group Mr. Kishore BiyaniFuture group is has various brands like Pantaloons, F123, Copper Chimney, Etam, Staples, One Mobile, Urbana, Brand Factory, LootMart, HomeTown and Central. Big bazaar covers all parts of India including the metro cities Kolkata, Delhi, Chennai, and Mumbai.Big bazaar started with its first store in Kolkata, west Bengal in 2001 and now owns more than 100 stores all over India making itself the fastest growing retail chain in India and leaving all its competitors behind.WHY BIG BAZAAR?Indian retail sector is witnessing one of the most hectic Marketing activities of all times.  The companies are fighting to win the hearts of customer. There is always a ‘first mover advantage’ in an upcoming sector. This advantage goes to “BIG BAZAAR” in India. It has brought about many changes in the buying behavior of people as Big Bazaar provides all items in one roof at low rates.The consumer’s preferences are changing & they are moving from shops stores to Modern Retail outlet. It’s the main challenge to the Modern retail outlets to attract the customers towards them from that of competitors. To attract more customers companies have to carry out the promotional activities in unique way. BIG BAZAAR has maintained that uniqueness & has succeeded in attracting customers.The promotional activity of the company, which famous as Less Price than others as it says ‘Nobody Sells Cheaper and Better!’ is made its place in minds of customer. As the competition is becoming stiff in the market the activities conducted by the company are unique, that have brought fruitful result to the company. Among them sales Promotions is one of the leading

activity or unique among all other activities & has high influence on the customer walk-in.OBJECTIVES:To know the effective marketing strategy which influence customer to purchase a product of Big Bazaar.To know the marketing and promotional strategy of big bazaar.How Big Bazaar Establish and maintain its position in retailing through promotion.LITERATURE REVIEW:RELATED CASE STUDY:A lot of case studies have been done before on this topic and its different aspects as my focus is on leading towards success through the low cost strategy which is followed by big bazaar, one of them is described below:Building brand through challenge:In 2001, PRIL opened its first 'Big Bazaar,' a 30,000 square feet store in Kolkata. The major USP of the 'Big Bazaar,' store was low pricing. These stores offered the best price proposition to customers.As part of this, the stores focused less on branded items and more on unbranded products with the same quality as branded ones, at a much cheaper rate. Commenting on this, Biyani said, "We are not in the business of selling ambience, but in the business of giving the best possible deals to our consumers."...The first Food Bazaar was set up in Lower Parel in suburban Mumbai in 2001. Food Bazaars represent PRIL's foray into yet another value retailing business, focusing on food and grocery products. These stores were designed based on PRIL's understanding of the emotional and rational needs of Indian housewives...The tremendous success of the 'Pantaloons,' 'Big Bazaar' and 'Food Bazaar' retailing formats, easily made PRIL, the #1 retailer in India by the early 2004, in terms of turnover and retail area occupied by its outlets.In the fiscal year ended June 30, 2003, PRIL increased its retail area by 66% to 586,000 sq. ft and reported revenues of Rs 4.45 billion, a 56% increase over fiscal 2002. Its net profits rose by 63% to Rs. 114.1 million in fiscal 2002-03, over the previous year.Big Bazaar has positioned itself as a ‘value for money proposition for Indian family’ retail store. They wanted to promote Big Bazaar as a retail store which gives its customers maximum advantage over other retail stores by catering to all their needs budget wise and income level wise.‘Sabse Saste 3 Din’ (the cheapest 3 days) brain child of Mr. Sadashiv Nayak, President Big Bazaar and Rajan Malhotra, President - Strategy and Convergence, Big Bazaar, believe that ‘Consumers are always looking for

best value for their money. Big Bazaar's Sabse Saste 3 Din is a great opportunity for them to save money and gets best products at the best possible prices. These three days have come to truly signify freedom from high prices for consumers in the country.’‘Maha Bachat’ ( save money) was introduced five years back ( in the year 2006 ) and it is still running very successfully. It is known as one of India’s mega shopping campaign. Continuing its efforts to provide the best shopping deals and savings to Indian consumers, Big Bazaar is always set to make Republic Day and Independence Day’s 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 are also a part of this mega campaign. From daily household needs of food and grocery to apparels, RETAIL INDUSTRY IN INDIA:India has one of the largest numbers of retail outlets in the world. Of the 12 million retail outlets present in the country, nearly 5 million sell food and related products. Thought the market has been dominated by unorganized players, the entry of domestic and international organized players is set to change the scenario. Organized retail segment has been growing at a blistering pace, exceeding all previous estimates. According to a study by Deloitte Haskins and Sells, organized retail has increased its share from 5 % of total retail sales  in 2006 to 8 % in 2007. The fastest growing segments have been the wholesale cash and carry   stores (150%) followed by supermarkets (100%) and hypermarkets (75-80%). Further, it estimates the organized segment to account for 25 per cent of the total sales by 2011. India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing life styles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175 - 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$320 billion and is increasing at  a  rate of  5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact

that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof.India   retail   industry is   progressing well   and for   this to continue retailers as   well as   the   Indian government will have to make a combined effort.4P’S OF MARKETING:"Marketing" is the promotion of products, especially advertising & branding. Marketing practice tends to be seen as a creative industry, which includes advertising, distribution and selling.Marketing mix is a deciding factor in formulating marketing techniques for the success of a particular brand, commodity or company. The components of marketing mix are:ProductPricePlacePromotionhttp://marketingroi.robinsonmaites.com/wp-content/uploads/2010/01/4ps.gifSource: http://notesdesk.com/notes/marketing/the-marketing-mix-4-ps-of-marketing/PRODUCT:Big Bazaar offers the maximum variety for every category of product. The product is the same in every store in the city but the brand options are more in Big Bazaar and the quantity for each product is not limited to large packs only. The commodities sold by the retail chain includes its “own products” which get a ready distribution network. The own products of Big Bazaar include My World fashion magazine which is not available anywhere else. So costs are very low for such products.PRICE:Price is the critical point in a competitive industry. Big Bazaar works on a low cost model. It considers its discounted price as its USP. There is an average discount of 6-8% on all items in respect to their MRP. Prices of products are low because it is able to secure stock directly from the manufacturer. There are huge synergies in terms of bulk purchasing, transportation and central warehousing. These all factors are very helpful for the retailers to keep low prices.PLACE:Place means the location of the business. Big Bazaar has always worked on cheap locations. It targets semi-urban population with its placement. Its strategy is to find a low-cost location and it never goes for hot spots in the city. It relied on promotional activities to make up for unattractive locations. Another strategy used by Big Bazaar to overcome location disadvantage is

use of internet. It has launched a merchandise retailing website www.futurebazaar.com which targets high-end customers ready to use credit cards. The promotion of this website is done through advertisement on Google. The website is put as sponsored link.PROMOTION:Big Bazaar has huge promotion budgets. The biggest idea behind all advertisements is to make people do bulk shopping. There are 2 types of promotional strategies of big bazaar. One is the advertisement which promotes the brand and creates awareness towards people. It is not targeted at promoting each store but only creates an image of Big Bazaar as low-cost shopping option. The store has advertised through TV, road shows and also started reality show-typed promotional campaign “The Big Bazaar Challenge.” Promotions like “Sabse Sasta Din”(Cheapest Day) are a very successful strategy to get good results. In this products across categories such as furniture, electronics, utensils, apparels and food products at the lowest possible prices, coupled with attractive promotional schemes. Some of the most attractive offers being a 20-litre branded microwave oven with grill for Rs 2,399, jeans and trousers for Rs 199 and HCL laptops for Rs 22,800.Buy 2 Get 1 Free types of promotions are very common. Original prices are cut down and new prices are shown, of which customer takes quick notice. There are loyalty schemes which reward regular clients.CURRENT POSITIONING STRATEGY OF BIG BAZAAR:Big Bazaar is holding a strong position in the market and is growing very fast. It captures the maximum Indian market and with a strong financial background and it has to go a long way through.The low price strategy it is successfully running its business all over India and is still growing bigger and bigger. The following graph shows the Product Life Cycle of Big Bazaar which is currently at the growth stage.Source: http://www.coolavenues.com/know/mktg/ravi-big-bazaar-14.phpLooking at the product life cycle of big bazaar it can be seen that it is in the growth stage at this point of time and still have a lot scope to grow.It is said that:“Cheap prices are a luxury for the rich but a necessity or a need for the poor.”So Big bazaar has understood the need of a vast population of the upper middle class and middle class people of the country and in fact no matter how rich a person is wherever he/she can get good brands at a cheaper rates they will be attracted towards it whether an average or a rich person.

RETENTION STRATEGY:Big Bazaar strive to foster a feeling of well-being in their employees through care and respect, Big Bazaar have several structured processes including employee mentoring and grievance management programmers which are intended to facilitate a friendly and cohesive organization culture. Off –site activities are encouraged to improve interpersonal relationship. Big Bazaar also acknowledge the efforts exerted by their employees by organization an annual celebration called ‘Pantaloon Day’ where Big Bazaar recognize employees who have shown exceptional talent, sincerity and dedication. Big Bazaar have implemented an employee suggestion programme called ‘Prerna’ wherein the employee can give their suggestions. Every quarter the best suggestion received per zone per format is awarded prize called ‘Golden Cap’.BIG BAZAAR’S NEW MARKETING STRATEGY:Big Bazaar has launched new marketing strategy which is based on Guerrilla Marketing. Guerrilla marketing warfare strategies are a type of marketing warfare strategy designed to wear-down the enemy by a long series of minor attacks, using principles of surprise and hit-and-run tactics. Attack, retreat, hide, then do it again and again, until the competitor moves on to other markets. Guerrilla force is divided into small groups that selectively attack the target at its weak points. In the world of cut throat competition, corporate use extension of the same strategy in marketing. Corporate like Pepsi, Coke etc have been using the same for quite some time now and the latest entrant is our very own ‘Future Group’- Big Bazaar, Future Bazaar, Pantaloons, e Zone are all part of this group and they are taking on the biggies like Shoppers Stop, Lifestyle, and Tata’s Westside. In order to do the same, Future Group have come up with 3 catchy and cheeky ad campaigns which surely do catch our eyes and surely one can’t resist appreciating the same.ADVERTISING: THE ESSENTIAL OF BRAND BUILDING PROCESS-Advertising is an essential component of brand building. The advertisement and brand buildingis done through various ways, the techniques used are:Tag-line: Big Bazaar tag-lines are the key components of advertising. These tag-lines aremodified according to demographic profile of customers. These catch-phrases appeared onhoardings and newspapers in every city where Big Bazaar was launched.Print Ads: Big Bazaar newspaper advertisements are present just before launch of any newscheme.

TV Ads: Kishore Biyani spends a lot of money in brand building exercise. Big Bazaar commercials are shown on various channels in India. Presently, Fashion at Big Bazaar commercial is aired.Road-side Advertisements: Big Bazaar bill-boards are displayed on prime locations in variouscities as a brand building exercise. They display the catch-phrases now-a-days.Radio Ads: This technique is used in cities like Sangli (Tier 1 / Tier 2 cities).Now-a-days, it is replaced by advertisements on FM channels. This informs customers about all new happenings atBig Bazaar.For example:The departmental store chain Big Bazaar has launched a commercial sometime back to promote 'The Great Exchange Offer'. The commercial portrays how customers can exchange any old and broken items (junk) and get new products at a discounted price from Big Bazaar.Customer can get the amazing prices for junk. The month of January and February is generally a low-key affair in terms of customer footfalls and revenue generation. Innovative, out of the box promotions is one of the effective ways to draw customer attention and shore up the revenue. Historically Exchange schemes have been used to induce better sales; it also has a strong appeal with the Indian mindset of getting value even for their junk, states an official release from Big Bazaar.SWOT ANALYSIS: Strengths:Maximum number of varieties: People prefer those places where they can get the maximum products they need and Big Bazaar provides vast range of products under one roof helping in attracting customer  and  their  family  to shop  together  and  enjoy  the experience.High brand equity: Big Bazaar has created high brand equity through its promotions and marketing it has created a different image for its products as the cheap and best.Largest chain of retail marketing in India: Big Bazaar is the first retail chain to be started in India and is the largest and successful until now.High capacity investment: Big Bazaar offers 1,70,000 products and owns more than 100 retail stores all over India and has the strong financial background as being the subsidiary of future groups which owns the pantaloons which is one of the biggest the industries in men’s wear in India and have its work is spread all over India. Future group is one of the leading groups in India.

Everyday new promotions and schemes of low prices and discounts: Big Bazaar always offers new schemes of low prices and gives discounts in products like Big Bazaar offers the sabse saste 3 din ( the cheapest 3 days) in which it offers the lowest of prices than other days.Facilities like online booking and delivery of goods: It is not just a chain of retail shopping but also provides online shopping facility to the consumers.Weaknesses: Overcrowded: During offers, promotions and even on weekends the place is overcrowded with people and sometime even there is the situation of closing the store due to it.Checkout can be extremely slow: There can be seen a long queue on the billing counters making the consumer wait for hours due to the slow service and the crowd.Perception of low price=low quality: Generally people think that if any product has low price then the quality of the product will be low as they think quality comes with price.Targets at the middle class and upper middle class only: It targets at the middle and upper middle class due to which it ignores the upper and elite class people as they are the cream of the society who are ready to pay any price for the quality and product they need.Opportunities:Big Bazaar can enter into production of various products due to its in depth understanding of customers’ tastes and preferences.Nowadays people prefer going to one big store and buy everything instead of visiting different places for different items and waste time. So Big Bazaar can expand the business in smaller cities as there is a lot of opportunity.Lot of potential in the rural market.Threats:High business risk involved: Big Bazaar investment is very large so it is obvious that there is high business risk involved.Lot of competitors: There are a lot of countries which are planning to enter the Indian market like Wal-Mart, Carrefour and Tesco which is a big threat to Big Bazaar.Less Parking Space: Customers are not satisfied with the parking space availability provided by Big Bazaar. Hence it’s a threat of Big Bazaar as it may loose its customers because of less parking space availability. In holidays it will be very difficult for customers to park their vehicle in Big Bazaar.Unorganized retailing: Unorganized retail stores are a threat to the business of big bazaar as now also people prefer to go to the local stores which are convenient enough for them.

COMPARITIVE ANALYSIS:BIG BAZAAR V/S VISHAL MEGA MARTVishal Mega Mart ( FOR DETAILS REFER APPENDIX)FieldsBig bazaarVishal mega martPriceBig Bazaar prices are very low because its adopt the low price marketing strategy.Vishal Mega Mart prices are not low because they give whatever is market price.ServiceBig Bazaar services are not quite good as billing problem due to crowd and less parking space.Vishal Mega Mart does not face these kind of problems as its not overcrowded.AmbienceProduct varietyBig Bazaar has lots of variety in every category of products. In Big Bazaar people can find almost everything.Vishal Mega Mart don’t have so much varieties as it is smaller than Big Bazaar.ConvenienceBig Bazaar has always worked in cheap location so that it is very convenient for the people to go to the Big Bazaar rather than going outer of the city.Vishal Mega Mart also works in low cost loacation but it is not so much popular in comparison of Big Bazaar as showrooms of Vishal Mega Mart are less than Big Bazaar.Shopping experienceIn Big Bazaar people can buy the maximum variety of products of every category under one roof helping in attracting customer  and  their  family  to shop  together  and  enjoy  the shopping experience.Vishal Mega Mart also provides the products under one roof but there is not so much varieties so that customers don’t attract so they can not enjoy their shoppingsProduct qualityThe product quality is good in Big Bazaar because people can find cheap and best things in Big Bazaar.The product quality is also good in Vishal Mega Mart but the prices are very high.

RECOMMENDATIONS:Big bazaar should keep offers in regular intervals so that there should not be a long term gap, because offer is the most influencing factor which is responsible for customer purchase decision.Big bazaar should start emphasizing more on internet shopping along with the formal retail shopping because a large population of the country likes to shop online in order to save time.Along with the different discounts and offers it should pay attention towards the students and provide some offers for them also because half of the Indian population is of youths and students.It should work on its billing counters and customer service in order to solve the problem of long queues and waiting customers.CONCLUSION:Big Bazaar is undoubtedly the number one retailer in India. It has built a very emotional and cordial relationship with its customers. It is also very intending to built long-term relationship with all its stakeholders, which is very essential for a successful business venture. It is observed that the organization hierarchy is professional as all the departmental Managers directly report to the store manager who in turn reports to the Zonal Head. Big Bazaar, with 25 years of experience in the field of weaving fabrics, is the leading Apparels and fashion design fabric company.There exist a healthy and positive relationship between employees and managers. The employees accept their responsibilities wholeheartedly, accept that it is their responsibilities to carry out a part of the activities of the company and they will be held accountable for the quality of their work. It is found that more than 60% of employees are of the age group of 20-35. From this it reveals that company is having young and energetic workforce who are very creative, enthusiastic and also very determined to grow in their career and in turn helping the company to grow. Working environment is good and also the various facilities provided helps in motivating the employees. The company is reaching  out  to  all  the  sections  of  the  society  as  it  is creating a hypermarket where not only the rich people shop but also the middle and the lower class customers come to enjoy the whole shopping experience.Moreover the customer friendly ambiance and the organized retailing of products also make Big Bazaar one of the successful retail industries in India.REFRENCES:Abhay, 2008. Big Bazaar. [Online] Available at: http://ekikrat.in/Big-Bazaar [Accessed 23 March 2011].Admin, 2009. Marketing Mix. [Online] Available at: http://notesdesk.com/notes/marketing/the-marketing-mix-4-ps-of-marketing/ [Accessed 18 March 2011].

Berry, T., 2008. How to Perform SWOT Analysis. PaloAltoSoftware,Inc.Bhasin, R., n.d. Big Bazaar Case Analysis. [Online] Available at: http://www.slideshare.net/pushpa14/big-bazaar-case-analysis [Accessed 29 March 2011].Bhatia, H., 2010. Big Bazaar. [Online] Available at: http://business.mapsofindia.com/india-retail-industry/companies-growth/big-bazar.html [Accessed 21 March 2011].Cook, S., 2011. Big Bazaar India. [Online] Available at: http://goindia.about.com/od/shopping/gr/big-bazaar.htm [Accessed 20 March 2011].FutureBazaar.com, 2010. Future Bazaar India Ltd. [Online] Available at: http://bigbazaar.futurebazaar.com [Accessed 24 March 2011].Group, F., 2008. Future Group. [Online] Available at: http://www.futuregroup.in/home.asp [Accessed 22 March 2011].Gupta, N., 2010. Big Bazaar Maha Bachat. [Online] Available at: http://www.indiasummary.com/2010/08/11/big-bazaar-5-days-maha-bachat-sale-from-big-bazaar-india-august-2010-for-independence-day/ [Accessed 25 March 2011].Kotler, P., n.d. In Marketing Management. 12th ed.Kumar, V., 2010. Promotional Strategy of Big Bazaar & Maintaining the image in Retailing. [Online] Available at: http://www.skylinecollege.com/blog/dissertation/promotional-strategy-of-big-bazaar-maintaining-the-image-in-retailing [Accessed 19 March 2011].Malhotra, R., 2008. Big Bazaar – India’s Real Retail Story. [Online] Available at: http://www.moneycontrol.com/news/business/big-bazaar-%E2%80%93-india%E2%80%99s-real-retail-story_358768.html [Accessed 26 March 2011].Mital, D., 2010. Big Bazaar: a Review. [Online] Available at: http://www.chillibreeze.com/articles/Big-Bazaar.asp [Accessed 27 March 2011].Rakesh, 2011. Big Bazaar. [Online] Available at: http://www.pantaloonretail.in/fashion-bigbazaar.asp [Accessed 20 March 2011].Raman, A. & Winig, L., 2006. Big Bazaar. Harvard Business Review, p.23.Rao, V.S.R., 2010. Big Bazaar. [Online] Available at: http://www.citeman.com/11184-big-bazaar/ [Accessed 28 March 2011].Sankar, M., 2009. Big Bazaar The hypermarket. [Online] Available at: http://articles.besttofind.com/a-1462/business-&-finance/big-bazaar-the-hypermarket.html [Accessed 26 March 2011].Sumesh, 2008. Sasta Shopping. [Online] Available at: http://www.sastashopping.com/search.aspx?search=big-bazaar&allwords=true [Accessed 25 March 2011].

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INTRODUCTION

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 marker. Headquartered in

Mumbai (Bombay), the company operates over 5 million square feet of retail space, has over 450

stores across 40 cities in India and employs over 18,000people.

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, Depot, Shoe

Factory, Brand Factory, Blue Sky, Fashion Station. The company also operates an online portal,

futurebazaar.com.

As customers tastes and preferences are changing, the market scenario is also changing from

time to time. It is the changing tastes and preference of customer which has bought in a change

in the market. Income level of the people has changed. New generation people are no more

dependent on haat market and far off departmental stores. Today we can see a new era in market

with the opening up of many departmental stores, hyper market, shoppers stop, malls, branded

retail outlets and specialty stores. . My study is based on a survey done on customers of a

hypermarket named big bazaar. Big bazaar is a new type of market which came into existence in

India since 1994. It is owned by pantaloon retail India Ltd. It is a type of market where various

kinds of products are available under one roof. My study is on determining the customers buying

behavior of customers in big bazaar and the satisfaction level of customers in big bazaar. My

study will find out the current status of big bazaar and determine where it stands in the current market. This market field survey will help in knowing the present customers tastes and

preferences. It will help me in estimating the customers future needs, wants & demands.

COMPANY

PROFILE

BIG BAZAAR

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

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

Wal-Mart. Facilities offered by Big Bazaar Online shopping: Big Bazaar has an official

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

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

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

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

LCD TVs, kitchen appliances and many more.

Discounts: “Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein extra and

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

their store.

Security check: At each exit of Big Bazaar, they use alarm systems or Electronic Article

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

1. Big Bazaar is a chain of hypermarket in India, which caters to every family’s needs and

requirements.

2. Big Bazaar has released the doors for the fashion world, general merchandise like sports

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

3. Big Bazaar group offers more than 100 stores all over the country with an amalgamation

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

4. The worldwide country chain, Big Bazaar, is formed by CEO of Future Group, Mr.

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

Price. 5. Big Bazaar has become a massive hit with lower middle-class and middle class people as

a major client base.

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

GROUP VISION

“To deliver Everything, Everywhere, Everytime to Every

Indian Consumer in the most profitable manner.”

GROUP MISSION

1 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.

2 We will be the trendsetters in evolving delivery formats, creating retail realty, making

consumption affordable for all customer segments – for classes and for masses.

3 We shall infuse Indian brands with confused and renewed ambition

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

Board of directors

1. Managing director

Mr kishore Biyani

2. Wholetime Director

Mr Gopikishan Biyani

Mr Rakesh Biyani

3. Director

Mr Shailesh Haribhakti

Mr S.Doreswamy

Mr Darlie Koshy

Mr Anil Harish

OBJECTIVES

1. To analyze how the mix influence the customer satisfaction level.

2. To determine the current status of big bazaar.

3. To study the satisfaction level of customers with regard of big bazaar.

4. To find out the buying behavior of the customers coming in to Big Bazaar.

5. To identify main competitors of Big Bazaar with regard to services.

IMPORTANCE OF STUDY

Its provide guideline for further research in area for organized retail. Research says about

customer buying behavior towards Big Bazaar. The research is also important to identify Market

size, growth and Market Potential of Big Bazaar. The research shows future Scenario of Big

Bazaar in current perspective. The study shows Opportunities and challenges for Big Bazaar

respect of internal & external environment. Research say about main competitors in the field of

organized retail sectors. The study provide guideline to further extension of Big Bazaar. The

study provide help to know the customers satisfaction with Big Bazaar stores.

SCOPE OF STUDY

The scope of this research is to identify the buying behavior of customers of Big Bazaar. This

research is based on primary data and secondary data. This study only focuses on urban buying

behavior of customers. The study does not say anything about rural buying behavior of customer

because rural norms/status/attitude & acceptance of the rural customers differs with urban

customers. It provides help to further the research for organized retail sector. It aim to understand

the skill of the company in the area like technological advancement, competition in management.

CORE VALUES

1 Indianness-Confidence in ourselves

2 Leadership-To be leader in thought & business

3 Openness-To be open in & receptive to new ideas, knowledge & information

4 Adaptability-To be flexible & adaptable, to meet new challenges.

MARKETING MIX

4 P’S of Big Bazaar

PRODUCT MIX

Apparels Home Care Chill Station Farm Produce

Denims & Shirts Shampoos Soft Drink Fruits

Fabrics Detergents Packaged Juices Vegetables

Formal Wear Soaps Milk Items Imported Fruits

Casual Wear Liquid Wash Frozen Foods Dairy Products

PRICE MIX

Value Pricing (EDLP)

Promotional Pricing

Low Interest Financing

Psychological Discounting

Special Event Pricing

Differentiated Pricing

Time Pricing

Bundling

PLACE MIX

Initially Identifies Future/Potential development areas.

Acquire such areas at an early phase before the real estate value booms.

Located at high traffic areas.

Design to look crowded.

PROMOTION MIX

“Saal Ke Sabse Saste 3 Din”

Future Card(3%Discount)

Advertising(Print ads, TV Ads, Radio)

Brand Endorsement by M.S DHoni

Exchange Offer

Weekend Discount

Point of Purchase Promotion

CUSTOMER

SERVICES WITH

REFERENCE TO

BIG BAZAAR

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

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

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

expectation."

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

exchanged, often only with a receipt and within a specified time frame. Big Bazaar will often

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

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

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

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

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

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

perception a customer has of the organization.

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

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

shooting, maintenance, upgrading, and disposal of a product.

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

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

efficiencies.

Objectives of Customer Services

Provide customers and staff with clear standards and expectations

Ensure all customer contact reaches an appropriate conclusion

Minimize incidences of repeat contact

Seek to provide a seamless service for customers

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

of residents, businesses and other stakeholders

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

origin, race, religion or geographical location

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

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

Enable our customers to provide feedback easily, through complaints, customer surveys, etc

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

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

information in a format that can be easily accessed

Customer Segmentation of Big Bazaar

Big Bazaar target higher & upper middle class customers.

The large and growing young working population is a preferred customer segment.

Big Bazaar specially targets working women & home markets who are the primary

decision maker.

Good customer service is the lifeblood of any business. You can offer promotions and slash

prices to bring in as many new customers as you want, but unless you can get some of those

customers to come back, your business won't be profitable for long.

Good customer service is all about bringing customers back. And about sending them away

happy - happy enough to pass positive feedback about your business along to others, who may

then try the product or service you offer for themselves and in their turn become repeat

customers.

Big bazaar use 8 golden rules to deal with Customer Services.

Answer the phone.

Don’t make promise unless you will keep them.

Listen to your customer.

Deal with complaints.

Be helpful.

Train your staff to be always helpful, courteous and knowledgeable. Take the extra step.

Throw in something extra.

Customer satisfaction in big bazaar

The degree of customer satisfaction you deliver determines the level of

long- term success you will achieve in business.”

Customer satisfaction their top priority

Don't just make sales. Create customers - satisfied customers. In addition to the

Immediate profit they provide on the first sale, satisfied customers help you build

your business in 2 other important ways:

1. They become a reservoir of repeat buyers. For some businesses that means

repeat buyers for more of the same product or service. For every business, it

means buyers for additional products and services.

2. They automatically refer more business to you from their friends and business

contacts. This is highly profitable business for you because it doesn't cost you any time or money

to get it.

Customers services offered by Big Bazaar

Online shopping: Big Bazaar has an official website, FutureBazaar.com, which is one of

the most favorite sites among people of India for online shopping. Future Bazaar is an online

business venture of Future Group, which sells an assortment of products such as fashion, which includes merchandise for men and women, mobile accessories, mobile handsets and electronics

like home theatres, video cameras, digital camera, LCD TVs, kitchen appliances and many more.

Discounts: “Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein extra and

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

their store.

Security check: At each exit of Big Bazaar, they use alarm systems or Electronic Article

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

Customer oriented Strategy

Attracting & retaining customers.

Uses Non- Traditional Strategy.

Moving demo-trolley.

Used young population as strategic blessing.

Attractive Design, interior & good atmosphere.

Competitors of Big Bazaar with regard to services

Wal-Mart

Reliance

Shoppers stop

Vishal mega mart

Local retailers

Big Bazaar targets to be achieved

The aim is to increase the retail business to around 30 million square feet by 2011 as

compared to 8 million square feet of now.

To become a substantial part of every Indian’s wallet.

To get across 30% of the population of entire nation which is now just 8%.

To increase organized retail from 3% to at least 18-20% in next 2 years.

SWOT ANALYSIS

1. Strengths

Everyday low pricing

Point of purchase

Experience marketing team executive staff

Emphasis on providing total customer satisfaction

Variety of stuff under single roof

Maintain good employee-employer relationship

2. Weakness

Failing revenue/sq.ft

Unable to meet store targets

Unavailability of popular brands

3. Opportunities

Population of country is growing where the scope of market is kept on increasing for

retail sector.

Evolving consumer preference

Organized retail presently nearly 5% in India. So it acts as a great opportunities to the

organization for its growth.

4. Threats

Competition from organized retail players which are in market and are emerging. Competition from local retailers.

RESEARCH

METHODOL