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A PROJECT REPORT ON “BUYING BEHAVIOUR PATTERN OF CONSUMERS IN GENERAL MERCHANDISE” AT P.C.M.C PUNE -18 Submitted for partial fulfillment of award of Post graduate programme of Indira School of career development Pune Under the guidance of Prof. M.V.Kulkarni Submitted By Rahul kumar G-34 1 | Page
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Page 1: Big Bazaar Project 17

A

PROJECT REPORT ON

“BUYING BEHAVIOUR PATTERN OF CONSUMERS

IN GENERAL MERCHANDISE”

AT

P.C.M.C PUNE -18

Submitted for partial fulfillment of award of Post graduate programme of

Indira School of career development Pune

Under the guidance of

Prof. M.V.Kulkarni

Submitted By

Rahul kumar

G-34

Indira School of Career Development

2009-2011

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Summer Training Project Report

On

“BUYING BEHAVIOUR PATTERN OF CONSUMERS

IN GENERAL MERCHANDISE”

AT

BIG BAZAAR P.C.M.C PUNE-18

In the partial fulfillment of the requirement of the

career

Development programme for the session of 2009-2011

of Indira School of career development programme

Under the under the

guidance of

Supervision of prof.M.V.

Kulkarni

Ashutosh sathe

Store manager

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Submitted by

Rahul kumar G-34

DECLARATION

I hereby declare that the information presented here is true to

the best of my knowledge. Also, the report has not been

published anywhere else.

Rahul kumar

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Acknowledgement  

The project of this magnitude would not have been completed

singly. Firstly I want to give my hearty thanks to all mighty

who made the world and me also.

There are many other people without whom the completion of

the project would not have been possible.

It gives me immense pleasure to thank and I would like to

express my gratitude to Mr. AHUSTOSH SATHE SIR, Store

Manager, and Mr. NITIN SIR DM of general merchandise Big

Bazaar (P.C.M.C PUNE) whose direction, assistance, and

guidance have been invaluable for the project. I wish to thank

Big bazaar staff for their constant support.

I express special thanks to Prof. M.V.Kulkarni my project

guide, who provided his recommendations and suggestions to

complete my project successfully.

I particularly like to extend my thanks to my seniors and my

friends who supported me during the project.

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Rahul kumar

PREFACE

PGP is the one of the most reputed professional

coures in the field of Management.It include theory

as well as its practical application.Summer Training is

an integral part of Post graduate programme, for

sucessful completion of this programme require two

months summer training .

So after completion of second semester each student

at Indira school of career development need to

under go two months training in an organisation.

This training serves the purposes of

acquainting the student with environment of an

organisation in which student have to work hard in

future .Only theoretical knowledge is not enough but

its practical application is also required to be learned.

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I was fortunate enough to have an opportunity of doing

summer training at BIGBAZAAR, P.C.M.C PUNE .

Every trainee was required to prepare a report of his

working in the organisation. I was assigned a project

on

“Buying behaviour pattern of consumers in

general merchandise”. In this report,all the

important findings of the project are included ,over

and above an overall profile of the

company(PANTALOON) is also given.

EXECUTIVE SUMMARY

As customers taste and preferences are changing, the

market scenario is also changing from time to time.

Today’s market scenario is very different from that of

the market scenario before 1990. There have been

many factors responsible for the changing market

scenario. It is the customers changing tastes and

preference, which has bought in a change in the

market. Income level of the people has changed; life

styles and social class of people have completely

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changed now than that of olden days. Technology is

one of the major factors, which is responsible for this

paradigm shift in the market. Today we can see a new

era in market with the opening up of many

departmental stores, hypermarket, shopper’s stop,

malls, branded retail outlets and specialty stores.

The study is based on a survey done on customers of a

hypermarket named big bazaar. Big bazaar is a type of

market where various kinds of products are available

under one roof. My study is on determining buying

behaviour pattern of customer in general merchandise

(luggage, untensil, plastic, footwear) . The study will

find out the current status of big bazaar and determine

customer response toward big bazaar.

ABOUT THE PROJECT

Primary objective :-

“To study the buying behaviour pattern of consumers

in general merchandise” in Big bazaar.

Secondary objective:-

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a)Swot analysis of general merchandise(Big bazaar)

b) To find out the current status of Big Bazaar.

c) To find out the customer response towards GM

(Big Bazaar).

d) To identify main competitors of (GM) Big Bazaar.

e)To study the satisfaction level of customer in GM.

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LIST OF CONTENTS

Sr.No. Name of Contents Pag

e

NO.

1. a) INRODUCTION OF TOPIC

b) RETAIL INDUTRY IN INDIA

c)COMPANY INTRODUCTION

9

2. RESEARCH OBJECTIVE 37

3. RESEARCH METHODOLOGY 38

4. DATA COLLECTION 39

5. ANALYSES AND INTERPRETATION 41

6. SWOT ANALYSIS 64

7. FINDING AND SUGGESTIONS 65

8. RECOMMENDATION 66

9. CONCLUSIONS 67

10. LIMITATION 69

11. ANNEXURE 70

12. BIBLIOGRAPHY 77

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GENERAL INTRODUCTION

Like England, India too, has been described as a notion of

shopkeepers having an estimated 15 million small retail

outlets, mostly single-store, family-owned fronts all over the

country. This works out to 14 shops per 1000 people, which is

one of the highest densities of shops per 1000 population all

over the world. The unorganized sector comprising small &

medium retailers who employ over 40 million people is indeed

the current face of retail that is in the threshold of

transformation to a more organized form. Only 2-3 % of

retailers are large -scale who have the ambition to organized

retailing to the whole of India. Only 4% of the 15 million retail

outlets have floor space in excess of 500 sq.ft. The vast

available untapped potential, naturally has attracted majors

like Reliance, Tatas, Birla’s, Godrejs, Mahindra’s & ITC to

foray into this sector.

More Importantly, the revolution in retail forges farm to fork

linkages with thousands of farmers to procure additional

outlets for retailing their produce. This necessarily entails

huge investments in supply chain logistics, cold chain,

warehousing, & so on all over India's rural market.

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RETAIL INDUSTRY IN INDIA

Retail is the world's largest industry with global sales of

roughly US$ 8 trillion. Retailing is also one of the biggest

contributers to the Gross Domestic Period(GDP) of most

countries & also one of the biggest employers(Source CII

McKinsey Report titled “Retailing in India, the Emerging

Revolution”). In India however, the retail sector has been a

high level of fragmentation with a large Share held by

unorganized players.

INDIAN RETAIL INDUSTRY:

India is the 4th largest economy in the world in

purchasing power parity (PPP) terms after USA,China and

Japan. In 2008-09, India became the 2nd fastest growing

economy in the world with a growth rate of 9.2%. The

economy is expected to grow at an average 7.8% per annum

for the next 5 years.

Wholesale & Retail trade sector currently contributes to about

13% of GDP & employs about 40 million people. India has a

large number of retail enterprises with close to 12 million

retail outlets. India has one of the highest retail densities in

the world, but only 4% being larger than 500 sq ft in size. In

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terms of the structure, the industry is fragmented &

predominantly consists of independent, owner managed

shops. The retail businesses include a variety of traditional

retail formats, such as “Kirana” stores which stock basic

household necessities (including food products).

RETAILING IN INDIA, THE EMERGING

REVOLUTION!

Retail sector accounts for 13.72 % of India's GDP.

Provides employment to 15% of the population.

World's largest retail networks with 12 million outlets.

Total market size of retailing in India now is US$ 300

billion.

Current share of Organized Retail is 3% or US$ 9-10

billion.

The size of Indian retail sector is estimated to grow by a

compound annual growth rate of 5.5 per cent, to become

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$410 billion market by 2010.

COMPANY PROFILE

We never created a group identity in the past...... We cannot

be known as Pantaloon. It was originally a trouser brand.

----Kishore

Biyani

CEO, Future Group.

PRIL, which begin as a trouser manufacturer in the mid

1980's, had grown over the years to become one of India's

largest retail chains. In march 2006, the pantaloons group

renamed as the “Future Group”.

The “Future Group”

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In march 2006, the Pantaloon Knowledge Group, as a part of

its restructuring & its expansion plans changedits identity to

the “ Future Group”. The new group was set up to drive

growth through the use of consumer insights and scenario

planning to design future retail delivery formats. Kishore

Biyani, chairman PRIL said, “India is changing rapidly and we

believe that rather than look at the past to extrapolate or the

west to emulate, we have to prepare ourself by planning

scenarios based on innovative and original research”.

Descriptions of verticals in Future Group

FUTURE

GROUP

VERTICALS

DESCRIPTIONS

Future RetailPRIL's Retail business like food and fashion

were included under this vertical.

Future SpaceManagement of all the shopping malls and

real estate.

Future Brands Management of all owned or licensed brands

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of the Group companies.

Future MediaFocus on development and management of

retail media spaces.

Future Capital

The financial arm of the Future Group ,

which would focus on retail financial

products and services.

Future logistics

This vertical would focus on deriving

efficiencies across businesses through better

supply chain management and distribution.

With the launch of Future Group, PRIL had plans to

develop a business model, which resembled wall-Mart's Sam's

club. This strategy was adopted to strengthen its back-end

supply chain sourcing capabilities in addition to reducing

costs and scalling up business volumes.

Analysts opined that PRIL, under its new identity as the

Future Group aimed to garner market share in the retail

industry in India. A report released by AT Kearney in 2006

titled emerging market priorities for global retailers, ranked

india first in its 2006 Global Retail Development Index, an

indication that global retailers considered it one of the most

attractive markets. The reports also estimated that the retail

industry in india was worth US$300 billion.

Outlook

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Big Bazaar has been accepted as a pan-India model,

from the agrarian singly to the-cosmopolitan Mumbai. Big

Bazaar has democratized shopping in India and is entering its

most aggressive role out phase. Besides, Big Bazaar will enter

rural India; it is both a vertical and horizontal aggression. The

outlook is very exciting and buoyant.

Fashion Focus

With Private labels expected to be at the forefront,

the category is likely to see lot of action in jeans and knits in

men's and ladies wear, as well as in the hugely popular fusion

or mix and match ladies wear. With the introduction of Gine &

Jony products in the stores, the kids and infants section will

also be reinforced considerably. Another category that the

company has identified is the sportswear category, which will

be addressed through the setting up of a fashion led sports

apparel mix of the best in national and international brands,

all under one roof.

Market size

Largely an untapped and unorganized market as of

now, the total retail size of the Indian books and music sector

is estimated to be about Rs.800 crore. Of this the share of

organized retailing accounting for about 10 percent and is

growing at a faster rate than traditional retail. As a size of

total retail pie, this segment accounts for just 1 percent but

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attracts close to 8 percent of a consumer's wallet. A recent

report indicates that between 2002 & 2010, the category is

estimated to grow at a rate of nearly 26 percent every year for

the next five years.

Strategic Direction

With a wide range of private labels, at different price

points, Fashion Station will continue to provide the customers

an alternative option to latest fashion that was hitherto not

addressed in modern retail environment. With more stores

lined up in the coming year, across cities and towns, this

concept would cater to a larger mass of customers and also

improve the company's bottom- line.

Across India, food habits vary according to

community, customs and geography. Food Bazaar, through its

multiple outlets addresses this. At the same time,it offers best

quality products at wholesale prices to a wide cross section of

the Indian population. Food bazar effectively blends the

look,touch and feel of the Indian bazar with the

choice,convenience and hygiene that modern retail provides.

Most stores are located within Big Bazaar,Central and

Pantaloon and act as strong footfall generators. These are

separated stand alone Food Bazaar as well. The business

contributed just under 50% of value retailing and 30% to the

company;s turnover during 2009-10.Food Bazar offers a

variety of daily consumption items,which includes

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staples,soaps and detergents,oils,cereals and biscuits. On the

product category side , the primary segregation is done on the

basis of staples,fresh products,branded foods,home and

personal care products.

Changing Food Preferences

Food Bazaar talks to the housewives of India and

constantly learns from them and it is at the forefront of

changing preferences. Some of the trends that were noticed

during year were increased consumption of processed food

category and ready to eat concepts. Besides an increasing

number of working women are experimenting lot with their

cooking habits and this is opening up of new food categories.

Restaurant Business

While consumers in the West spend nearly 46% of

their food expenditure on away from home meals, Indian

consumers spend only about 3% of their food expenditure in

hotels and restaurants. However a significant trend noticed in

this group is that almost 8% of their wallet share is spent on

eating on at either a restaurant or a fast food joint,as

compared to other forms of entertainment.

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With the intention of expanding the organized food

and restaurant business in the country, the company entered

into a equal joint venture with blue foods Pvt. Ltd and food

rite. Through its PAN India food solution private limited

subsidiary. The alliance aims at offering the best in Indian and

multi cuisine preparations to Indian public,capitalizing on the

modern retail experience and customer insights that

Pantaloon provides coupled with Blue Foods reputation as a

pioneer in this business.

FINANCIAL PERFORMANCES

The growth in the retail sector was reflected in the

financial results of PRIL for 2005-06. For the year ended june

30, 2006, PRIL reported a total income of Rs.38.72 billion in

2008-09 pantaloon Retail (India) Limited declared its

unaudited financial result for the quarter ended December 31,

2009 wherein the Net profit ( Rs 50.67 crore) increased by

51.1 percent for the quarter ; income from operation (Rs

1912.84 crore ) increased by 25.4 per cent ; and PBDIT ( Rs

205.46 crore ) increased by 29.4 per cent.

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GROWTH AND DEVELOPMENT OF

ORGANIZATION

Mr. Kishore Biyani

Managing Director (FUTURE GROUP)

Company Name: Pantaloon Retail (India) Limited

Background: Founded in 1987 as a garment manufacturing

company, the company forayed into modern retail in august

1997 with the launch of its first department store, pantaloons

in Kolkata.

Organization Design

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The company follow an inverse pyramid structure; as a

result decisions are taken closest to the point of customer

action. Sales executive are encouraged to think customer first.

They are empowered to run their respective departments like

'small business owners'.

Pantaloon India's major retailers with presence in the

following two segments

1. Lifestyle Retailing - Pantaloons, Central, all, Blue sky.

2. Value Retailing - Big-Bazaar, Food Bazaar, Depot, Health

village, Fashion station.

Lifestyle retailing: The stores under this category

primarily retail non-food items such as - (apparel, footwear,

accessories, cosmetic & household products.)

Value retailing: The stores under this category retail

mainly food & household items.

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MAJOR INDIAN RETAILERS

The low-intensity entry of the diversified Mahindra Group into

retail is unique because it plans to focus on lifestyle products.

The Mahindra group is the fourth large Indian business group to

enter the business of retail after Reliance Industries Ltd, the

Aditya Birla Group, and Bharti Enterprises Ltd. The other three

groups are focusing either on perishables and groceries, or a

range of products, or both.

RPG Retail-Formats:

Music World- Music World's product portfolio comprises of

audio CDs, DVDs and VCDs, CD-ROMs, gaming consoles &

software of all the leading brands, and other music accessories.

The company is an important player in the home video market.

Books & Beyond- books, encyclopaedia, novel etc.

Spencer’s Hyper- monthly groceries, weekly fresh and top ups,

fashion accessories, home care, toys, stationery, electricals,

electronics and garments

Spencer’s Super: - monthly groceries and weekly top up of

fresh requirements, deli, fresh meat, chicken and fish products,

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a bakery and a café.

Daily & Fresh:- groceries, fresh food, chilled and frozen

products, bakery items and weekly top up .

Pantaloon Retail-Formats:

Food & grocery (Big bazaar, Food bazaar), Home solutions

(Hometown, furniture bazaar, collection-i), consumer electronics

(e-zone), shoes (shoe factory), Books: music & gifts (Depot),

Health & Beauty care services (Star, Sitara and Health village in

the pipeline), e-tailing (Futurbazaar.com), entertainment

(Bowling co.).

The Tata Group-Formats: Tata Group - operates Westside, a

lifestyle retail chain and Star India Bazaar - a hypermarket with

a large assortment of products at the lowest prices.

Landmark- India's largest book and music retailer.

Titan – watches, glasses (specks).

Tanishq- jewellery

Westside:- Menswear, Women’s wear, Kid’s wear, Footwear,

Cosmetics, Perfumes and Handbags, Household Accessories,

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lingerie, and Gifts

K Raheja Corp Group-Formats:

Shoppers’ Stop: - Menswear, Women’s wear, Kid’s wear,

Footwear, Cosmetics, Perfumes and Handbags, Household

Accessories, lingerie, and Gifts

Crossword: - Books, Magazines, Music, Movies, Toys, Stationery,

CD ROMs Lifestyle International-Lifestyle, Home Centre, Max,

Fun City and International Franchise brand stores.

Pyramid Retail-Formats: Pyramid Megastore, TruMart

Nilgiri’s-Formats: Nilgiri's’ supermarket chain

Subhiksha-Formats: Subhiksha supermarket pharmacy and

telecom discount chain.

Trinethra- Formats: Fabmall supermarket chain and Fabc

Vishal Retail Group-Formats:

Vishal Mega Mart:- monthly groceries, weekly fresh and top

ups, fashion accessories, home care, toys, stationery, electricals,

electronics and garments

Reliance Retail-Formats: Reliance Fresh:- monthly groceries,

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weekly fresh and top ups.

Reliance ADAG Retail-Format: Reliance World, reliance

trendz:- Menswear, Women’s wear, Kid’s wear, Footwear,

Cosmetics, Perfumes and Handbags, Household Accessories

Shoprite Holdings-Formats: Shoprite Hyper

D mart : monthly groceries, weekly fresh and top ups, home

care, stationery, electricals, electronics .

Aditya birla:-

More:- monthly groceries, weekly fresh and top ups, home care,

stationery, electricals, electronics .

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DESCRIPTION OF LIVE EXPERIENCE

These are some of my live experiences and learning

from the store:

As a trainee I gained enough experience particularly in

relation to the initial efforts such as floor designing, stores

arrangement, selling counters, billing & delivery counters.

I got a first hand experience of the desirable effect team

work. An exposure to work with the immediate superiors

and experienced colleagues. And to learn the practical

aspects of retailing, face to face dealing with the

customers.

I learnt that relationship marketing, the essence of the

successful retailing is lesson to be learned step by step

and continuously everyday. Retailing provides these

wonderful opportunities of imbibing this vital quality of

dealing with customers reaching up to their expectations,

as each customer leaves a clue that would please

customers.

I Learnt many things from store such as:-

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How offers and promotions are executed on floor to

increase the sales.

How meetings are conducted successfully.

How to check daily sales and plan for targets smooth

handling of operation.

How to handle pressure in difficult situations, keep

benchmarks and try to achieve that.

Understanding the organization and the store objectives,

pool all resources together to achieve those objectives.

Preparing questionnaires and interacting with customers

with a great experience.

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P.C.M.C BIG BAZAAR

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.

This store is located in Pimpri Pune.

Big Bazaar trying to provide customer with 3V’s

o Value

o Variety

o Volume

Big Bazaar divides into three categories; such as

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Electrronics and furniture

Page 29: Big Bazaar Project 17

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.

General merchandise is one of the most fascinating

departments of big bazaar.

It is divided into two parts

GENERAL MERCHANDISE

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o GENERAL HOME : - GM home basically cater the

need of daily home utility. This department include :

Plastic

Utensils

GM home has wide variety of home utility product. It

has various brand of product available under one roof.

EDLP is also one of the important aspect of GM home.

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Car accesories

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UTENSILS DEPARTMENT AT BIG BAZAAR

utensils department has wide variety of merchandise

from gas burner to steel utensils. Offers like 20% and

30% off often attract customer to purchase product.it

has inhouse brand like Dreamline which is mostly

purchased by customers.

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

Big Bazaar has a punch line isse sastaa aur achha kahin nahinIt 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.

4. Pressure cooker: - Jaipan, tuffware, prestige etc.

PLASTIC DEPARTMENT AT BIG BAZAAR

This department has wide variety of plastic container.

in plastic department we have the many brand such as;

cello, milton, bluepast, dreamline, dew, creative, pearlpet,

pioneer, gala, homio, polyset, neelkamal etc. Recently big

bazaar has launched Dreamline cresols (hot pot) which

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has become much popular because of its look design

and quality.

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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GM FASHION

This department contain all those merchandise which are used

for fashion or used other than home utility. Brand, design,

style has mostly influence customer to purchase product. So

department has to accommodate with merchandise of branded

as well as private level brands to cater the need every class of

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people. Department has wide variety and range of products.

Discount offer like 20%, 30% and 50% plays important role in

attracting customer.

Department include:

LUGGAGE DEPARTMENT @ BIGBAZAAR

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GM FASHION

Car accessories

FootwearLuggage

StationaryToys

department

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BRANDS AVAILABLE IN LUGGAGE

DEPARTMENT:-

MILESTONE

VIP

SAFARI

AMERICAN TOURISTER

TRACKER, etc.

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FOOTWEAR DEPARTMENT AT BIG BAZAAR

MENS

Formal Shoes Brands: - A) Branded

B) Private level brand

Branded: - DJ&C, Provogue, Franch Leone

Private level brands: - Knighthood, Neptune,

Spalding, Spunk, Picks etc.

Men fancy slippers:- Sach ,Spalding

Casual shoes :- A) Branded

B) Private level brand

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Branded: - DJ&C, ID, Numerono, Puma, and

Leecouper etc.

Private level brand: - Spalding, All star etc

Sports:-A) Branded

B) Private level brand

Branded:-Reebok, Puma, Nike Addidas etc.

Private level brand: - Fairport, Fitness Jogger, Spunk

etc

Ladies

Private level brand: - Shyla, leaf, spring,

Haute&Spicy, Xe- look, Hype etc

Kids sandal’s:-Disney, Fuel etc.

Ladies fancy slippers: - Sach

Kids shoes: - Liberty, Fitness Jogger etc.

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Stationary

DePOT is a chain of retail stores from Pantaloon Retail (India)

Limited (a part of Future Group), which sells books, gifts,

stationary items. Books available at DePOT span a diverse

range of subjects including fiction, general reference,

management, kids, cookery, etc. It also has an attractive range

of gifts (candles, mugs, photo-frames, theme parks) toys and

stationery (office, children’s and fancy stationery). Depot

stores display the products in an informal setting, focusing of

affordable pricing. It aims at providing a localized, youthful,

lively and interactive retail experience to its customers.

Toys department:-

Toys department of general merchandise has wide variety of

kid’s game and toys. Toys department has wide range and

variety of Soft toys , electronic toys, board games etc.it also

international brand like Barbie doll, batman series etc.

Major brand include Fun school, Mitashi,

Flamingo,United, creative, Venus

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RESEARCH OBJECTIVE

Primary objective:-

“To study the buying behaviour pattern of consumers

in general merchandise” in big bazaar.

Secondary objective:-

a)Swot analysis of general merchandise(Big bazaar)

b) To find out the current status of Big Bazaar.

c) To find out the customer response towards GM

(Big Bazaar).

d) To identify main competitors of (GM) Big Bazaar.

e)To study the satisfaction level of customer in GM.

40 | P a g e

Electronic car, train etc.

Cricket bat, badminton

Board games

Soft toys, dolls

Toys department

Page 41: Big Bazaar Project 17

RESEARCH METHODOLOG

The objective of the study was to understand the buying

behaviour pattern of consumer in general merchandise.

Source and method of data collection:-

Collection of data

The task of data collection begins after a research problem has

been defined and research design chalked out. While deciding

about the method of data collection to be used for the study,

two types of data should be kept in mind .they are primary and

secondary data .both type of data are used in the report

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1. Primary data sources

They are those which are collected fresh and for the first time

and thus happen to be original in character.

Tool of data collection

1. Observation method

2. Reference of previous report

3. Interview method

4. Structured questionnaire

2. Secondary source:-

Secondary data are those which have already been

collected and which have already been passed through

the statistical process, secondary data can be collected

from:

Books

Annual reports of the company

Journal and magazine

Internet

Newspaper

Research Design - Exploratory Research42 | P a g e

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Type of sampling method used:-

The sampling procedure used here was non-probability

convenience sampling which helped in keeping the path of

research in focus throughout the work.

Target population:-

Individual between the age group of 15 to 70 years were

chosen as the target population .it is people under this

age group who are frequent visitors and shoppers to the

big bazaar.

Sample size:

Since covering the entire population for the study was

not feasible, a sample of 250 customers was taken.

Sample element:-

The sample elements consisted of people who visit and

shop from big bazaar.

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Analysis and interpretation

Customer s monthly income

Higher income group 13

Middle income group 125

Lower income group 50

No income group 62

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Analysis: The above diagram shows the distribution of income

level of customers coming in to big bazaar. Among the 250

respondents 50% of customers are of middle income level that

is between Rs10000 – 40000 per month. Least number of

customers visiting Big bazaar are the higher income level

people (> Rs.60000 pm) that constitute only 5%. The lower

income level of people coming to big bazaar constitutes of

20%. 25% of people belong to no income group which mostly

consists of students.

Interpretation: Big bazaar is the hub of shopping for middle

level income group people because of its reasonable price on

its each product category. The higher level income group

people don’t prefer to do shopping in big bazaar as it doesn’t 45 | P a g e

INCOME GROUP

5%

50%

20%

25%Higher Income

Group (> Rs.60000)

Middle IncomeGroup (Rs. 40000-60000)

Lower IncomeGroup(Rs.10000-40000)No Income Group

(< Rs.10000)

Page 46: Big Bazaar Project 17

deal with much of the branded products. The higher level

income group people are very status conscious and their

psychology is such type that they don’t prefer much to visit big

bazaar as it is a discounted store. The lower income group

people come in to big bazaar as they get goods at a discounted

price. Hence big bazaar should include branded products in its

product category which will encourage higher income group

people to come in to big bazaar.

Customers visit Big Bazaar

Weekly 29% 73

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Monthly 34% 85

Quarterly 23% 57

On unplanned basis 14% 35

Interpretation:

From this I interpret that in big bazaar 34% customers visit

monthly, 29% customer visit weekly 23% customers visit

quarterly and 14% customers visit on planned basis , it means

mostly customers visit weekly and monthly basis for purchase

their requirements.

Apart from Big bazaar visit retail outlet

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Interpretation: From this I interpret that 64% customers of big

bazaar visit other retail stores for their requirements and 36%

customers of big bazaar generally do not visit other retail

stores. It shows that customers satisfaction level is more in big

bazaar.

Products mostly purchased by customers in big bazaar

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Clothes 60%

Grocery 70%

Food Item 50%

Leather Item 25%

Electronic Item 15%

Gift Item 10%

Any other Item 10%

0% 20% 40% 60% 80%

Clothes

Grocery

Food Item

Leather Item

Electronic Item

Gift Item

Any other Item

Series1

Analysis: This chart clearly indicates that the demand for

grocery that is 70% is highest by the customers followed by

clothes rated 60%. The next highest demand is for food items

that is 50%. 25% demand is for leather items in big bazaar.

Electronic items holds 15% of demand and gift items and other

items has a demand of only 10% by the customers of big

bazaar.49 | P a g e

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Interpretation: From this analysis I interpret that customers

demand are high for grocery and clothes followed by food

items in big bazaar. Electronic items have a little demand by

the customers. Gift items and other items are not much in

demand by the customers. I can interpret that clothes, grocery

and food items are the major products which hold maximum

number of customers. So big bazaar should maintain its low

pricing and product quality to keep hold of the customers.

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Expenditure pattern of customers coming in to big bazaar

Below Rs.500 /single visit 11%

500-1000 /single visit 16%

1000-1500 /single visit 22%

1500-2000 /single visit 22%

More than 2000 /single visit 29%

EXPENDITURE PATTERN

11%

16%

22%22%

29%Below 500

500-1000

1000-1500

1500-2000

More than 2000

Analysis: We can clearly see from this graph that majority of

the customers spend a lot in big bazaar that is 29% of people

spend more than Rs2000 in a single visit to big bazaar. Equal

number of people that is 22% of people each spend Rs 1000-

1500 and Rs 1500-2000 respectively in a visit to big

bazaar.16% of people spend Rs 500-1000 and only 11% of

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customers are there who spends less than Rs500 in their visit

to big bazaar.

Interpretation: From this I interpret that most of the

customers purchase goods in bulk which leads them to spend a

lot. Volume sales are high in big bazaar. Customers tend to

purchase more goods from big bazaar as it provides goods at a

discounted rate. Probably those persons who spend more in a

visit to big bazaar are purchasing on a monthly basis. Those

customers who are spending very less money that is below Rs

500 are mostly coming in just to move around big bazaar and

spend time.

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Do you know about general merchandise department

Yes 90%

No 10%

Analysis :

1. We can clearly see from this graph that majority of

the are aware about the general merchandise

department

2. 10% people are not aware about the department

Interpretation :- thus from graph we can interpret that

consumer come to GM for buying merchandise . as this

department include all non food essenytial goods. GM

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Page 54: Big Bazaar Project 17

department attract customer through various offers and

scheme.

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Page 55: Big Bazaar Project 17

If yes do you purchased footwear from GM

Analysis : 65% people comes to luggage department for

purchasing footwear. Whereas 35% never visit footwear

department.

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Yes 65%

No 35%

Page 56: Big Bazaar Project 17

Interpretation:- from this we can interpret, footwear

department of Big bazaar attract customer to purchse

footwear as it offers good quality footwear at low price. Brand

like Spunk ,knighthood and splading are in-house brand which

is mostly purchased by consumer because of good quality ,and

design at lowest price. Footwear department also has big

brand of footwear like Puma, leecouper, ID etc. But footwear

department need to un tap rest customer by offering discount

and standard quality footwear

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Page 57: Big Bazaar Project 17

Factor influencing buying decision while purchasing footwear

1) Quality 20%

2) Price 40%

3) Style 30%

4) Brand 10%

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Analysis: - 20% of people are influenced by quality, 40% are influenced

by price and 30% are influenced by style and deign of footwear.

Interpretation:- from this we can interpret that Footwear department has

to maintain quality as well as price to attract the customer . Footwear

department has various private level brands like fairport,spunk and

spalding which has standard quality and design . footwear department

also has branded shoes to attract customer.

Rank the attribute according to satisfaction level

Price 50%

Durability 17%

Variety 15%

Looks and comfort 18%

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Page 59: Big Bazaar Project 17

Analysis:- 50% people give priority to price ,while 17% give priority to

durability. 15 % and 18% to looks.

Interpretation:- this indicates that price is the main attribute which often affect

the buying decision of consumer. As in big bazaar merchandise are sold at low

price so consumer give more priority to price than other thing

GM footwear serves the purpose of providing footwear of

consumer choice

Strongly agree 35%

Agree 35%

Disagree 20%

Strongly disagree 10%

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Page 60: Big Bazaar Project 17

Analy sis :- 70% people agree on this statement and while 30% do not agree.

Interpretation:- from this we can interpret that 70% of the customers are

satisfied with the footwear department. Footwear department fulfil the

demand of customer by giving footwear at lowest price and of best quality.

b) Purchased luggage from luggage department

Yes 70%

No 30%

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Page 61: Big Bazaar Project 17

Analysis:- 70% of people purchased luggage from luggage while 30%

of person never purchased.

Interpretation :- from this we can interpret that 70% of consumer are

attracted by the luggage department because of branded and wide range

of luggage present in luggage section. Even discount offer like 30% and

50% attract customer to purchase luggage. Luggage department offers

lowest price than retail outlet existing outside the big bazaar. while 30%

never purchase luggage from big bazaar. Hence luggage department

must attract these customers.

If yes which brand purchased

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Page 62: Big Bazaar Project 17

Milestone 15%

American tourister 30%

V.I.P 20%

Samsonite 10%

Safari 25%

Analysis : from the graph we can conclude that most of the

customer purchase branded luggage from luggage

department. Luggage department must promote inhouse brand

(milestone) to attract customer.

Satisfied with the variety offered by luggage department

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Strongly agree 35%

Agree 45%

Disagree 10%

Strongly disagree 10%

Analysis : 80% of customer thinks that luggage department fulfil

demand of customer. While 20% of people are unsatisfied

Interpretation:- luggage department offers wide range of

luggage at very low price so consumer purchase luggage from

luggage department.

d) plastic and utensils

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Purchased any product from plastic and utensils department

Yes 93%

No 7%

Analysis :- from graph it is clear that 93% of people prefer to

purchase merchandise from plastic and utensils while 7%

never purchase from plastic and utensils.

Interpretation: - from this we can interpret that plastic and

utensil department offers product (home utility) in wide range

and at lowest price.

Product available in plastic and utensil are

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Excellent 45%

Good 35%

Bad 15%

Very bad 5%

Analysis :- from graph we can say that 80% of customer are satisfied

with the product offer in plastic and utensils while 20% are not

satisfied.

Interpretation:- from this we can interpret that big bazaar offer huge

discount and offers on the utensil and plastic.

d) Stationary department

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Purchased stationary from stationary department

yes 75%

No 25%

Interpretation :- from this we can interpret that 75% comes to

stationary department for shopping while 25% never do shopping in

stationary department. Stationary department has wide variety of

product for children and office item.

Satisfied with the availability of product in

stationary department

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Strongly agree 45%

Agree 35%

Disagree 10%

Strongly disagree 10%

Interpretation:-from this we can interpret that 80% of the

customer are satisfied with the stationary department. They

are satisfied with the wide range at low price. Discount offered

during back to school and price challenge are attracting.

Product Mostly purchase merchandise from stationary department

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Stationary 60%

Gifts 5%

Books 10%

Office use items 25%

Interpretation:- from this we can interpret people come to this

department for buying stationary product.

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Comparison of GM of Big bazaar with others Organized retailers based on following

points

Price Service Variety Quality Convenience

Shopping

Experience Ambience

GM(BB) 45% 50% 55% 52% 54% 46% 58%

O. Org. Retails 55% 50% 45% 48% 46% 54% 42%

Interpretation: I interpreted from this that other organized

stores is another competitors of GM big bazaar. It is a threat

for GM big bazaar as some of the attributes of other organized

stores store provides more satisfaction to customers. GM Big

bazaar should try to improve on each of its attributes and out

compete the other organized stores.

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SWOT ANALYSIS OF BIG BAZAAR

A SWOT analysis is done to know the strengths, weaknesses,

opportunities and threats of any company. This analysis will

explain about the strengths, weaknesses, opportunities and

threats of GM at big bazaar.

Strength

Large variety of product available in GM

Discounts and offers Huge customer Base Availability of branded

product

Weakness

Unable to tap the entire region across Chinchwad and Pimpri.

Unavailability of separate cash counter in GM department

Customers’ negative perception about the private level brand

Threat

Opening up of other discounted stores like shoes express, D mart ,local retail store , Reebok, Addidas, woodland etc. Convenience of customers to nearby retail shop. Availability of products in other retail outlets

Opportunity

MIDC region has largest density of population Private level brand like spunk, milestone are becoming popular To bring in the customers of other retail outlet by dealing with branded products Increase in standard of living of people and preference

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FINDING AND SUGGESTIONS

1. Generally youth and women are the main customers at big

bazaar.

2. Electronic media has a great impact on customers.

Electronic media help in making people aware about new

products and offers

3. The availability of all products under one roof of GM and

nearby their house helps customer to shop weekly and shop

fresh every time.

5. Mega events like great Indian shopping festival has great

impact in attracting customer to purchase more and more.

6. Customer are more attracted toward discount and offer

including gift .

7. Signage and display helps in attracting customer to

purchase more and more.

8. Offers and promotional scheme helps in add on sales.

9. Availability of branded and private level brand like

milestone, spunk, Dreamline helps in catering every section of

people.

10. Big bazaar follow rule of GAPACT

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G- Greeting the customerA-approach the customerP-purpose about the productA-Add on salesC- closing the dealT-thanks

SUGGESTION

1. General merchandise constitute number of departments so

cash counter should be added up in the section to reduce

problem of billing.

2. Queue process management should be made good.

3. During weekend customer often feel problem of trolley’s so

trolley should be properly managed to get rid of trolly

problem.

4. Damaged product should be replaced because it gives bad

impact to other product kept on the shelf.

5. Big bazaar should include more of branded products in its

product category so as to attract the brand choosy people to

come in to big bazaar.

6. Employee should be given training time to time. The service

of the sales person is needed to be improved. Personal care

should be taken by the sales person for the customers so that

the customers feel good.72 | P a g e

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8. It was observed most of the customers were not aware

about the offer and scheme going in the store .so proper

communication should be made to mke customer aware about

the offer and discount.

9. Customer often face problem of unavailability of product

like shoes, folder, different size of pressure cooker etc. so

product should be made available in stock so that customer

should not face problem of stock out.

RECOMMENDATION

1. It is recommended that Big Bazaar must develop effective

CRM tool to survive in the market and to attract more and

more customer for example if GM of Big bazaar is launching

new trolley or shoes then it should be informed to customer

about the particular product.

2. Big Bazaar must perform demonstration new products to

make customers aware and create trust among them.

3. General merchandise has number of departments so staff

number should be increased to serve customer during

weekend and big days.

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4. Often many of the product are not sold because of low

visibility, high price so, the product should be properly

displayed and discount should be given to attract the customer

to purchase the product. For example many product present in

stationary department are placed at the corner which is not

purchased by customer due to high price.

5. Proper signage should be there so that customer can locate

the products easily.

6. To increase more footfalls more promotional activities must

be carried out either offer more discount or increase

advertisement.

9. Promotion of big bazaar should be made in society by

conducting free distribution of sample and other activity.

10. Private level branded should be durable and give value to

the customer money.

11. Allowing more space between the entrance of store and

product allow customer to spend more time and buy more.

12. Exhibit their new line of footwear, luggage, untensil

through events like fashion show.

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13. Make some arrangement for any new scheme or offer such

as queue system management so crowd can be controlled

during big days.

14. Waiting time should be short enough.

15. During the off peak hour’s big bazaar should provide some

offers to its customers so that people would be encouraged to

come to big bazaar during off peak hours. The customers who

are present in the mall during the off peak hours of big bazaar

will definitely go in to big bazaar if surprise offers are made at

that time.

16. Customer care department is needed to take proper care of

customer complaints and queries. For example: - warranty on

certain product like non- stick cookware, shoes.

CONCLUSION

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

It is a place where customers find variety of products at a

reasonable price. Big bazaar has a good reputation of itself in

the market. It has positioned itself in the market as a

discounted store. It holds a huge customer base. The majority

of customers belong to middle class family. The youth

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generation also likes shopping and moving around big bazaar.

Volume sales always take place in big bazaar. Impulse buying

behaviour of customers comes in to play most of the times in

big bazaar.

GM department of big bazaar provides various kinds of goods

like stationary, luggage, footwear, toys, plastic and utensils

leather items, crockery, decorative items, sport items, many

more. It competes with all the specialty stores of different

products which provide goods at a discounted rate all through

the year. It holds a large customer base and it seemed from

the study that the customers are quite satisfied with Big

bazaar. Private brand like Milestone, Dreamline, Spunk are

accepted by consumer due to good quality and reasonable

price.

The report reveals that there is huge scope for the growth of

organised retailing and improvement of big bazaar P.C.M.C in

Pune. Target achieved every week show that movement of

product is good. Aggressive marketing is the key to increase

market share in this area. Since market is still untapped. Big

bazaar uses SAP, DOT, REM, RFID technology. Discount and

scehme decision are taken by the headquarters and new

product is added time to time by the direction of category

management. GM department should manage their

merchandise in such a way that they must be accepted by

customer.

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LIMITATION OF THE STUDY

Certain limitation do creep in research study due to

constraints of the time, money human efforts, the present

study is also not free from certain limitation, which were

unavoidable. Although all efforts were taken to make the result

of the work as accurate as possible as survey but the survey

have following

1. Some customer was not willing to giving proper response.

2. Due to very large size of the population, only a selected

sample of customer could be contacted.

3. Some of respondents were not co-operative they didn’t

provide some of the details.

4. Language barrier was also one of the main reasons.

5. As per company rule many information was not disclose as

the manager were busy in their daily schedule. It was not

possible for us to spend more time in interaction with them.

6. Personal biases might have come while answer the question.

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ANNEXURE(S)

Questionnaire

Name: -___________________ Age: -

Gender: - Ph.

Address: -________________ occupation : -

What’s your monthly income?

a) Below 10,000

b) 20,000 – 40,000

c) 40,000 – 60,000

d) More than 60,000

1.How frequently do you visit Big Bazaar?

a) Weekly

b) Monthly

c) Quarterly

d) On unplanned basis

2 .Apart from Big Bazaar do you intend to visit any other retail outlet in a Mall?

a) Yes b) No

2.(a). If yes then what are the other retail outlets do you intend

to visit in a mall?

e) Garment Outlet

f) Footwear Outlet

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g) Food Court

h) Entertainment

i) Gift Corner

j) Jewellery and Watches store

2. What type of products do you mostly purchase in Big

Bazaar?

a) Cloths

b) Grocery

c) Food Item

d) Leather Item

e) Electronic Item

f) Gift Item

g) Any other Item

3. On an average how much amount of money do you spend in

a visit to Big Bazaar?

a) Below 500

b) 500 – 1000

c) 1000 – 1500

d) 1500 – 2000

e) More than 2000

4. Do you know about general merchandise department at Big

bazaar?

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Yes No

Footwear

4 a) If yes do you purchase footwear from footwear

department?

a) Always b) Sometime c) No

4 b) which factor influence your buying decision while

purchasing footwear?

a) Quality

b) Price

c) Style

d) Brand

e) Not applicable

4 c) Rank the attribute according to your satisfaction level?

a) Price b) durability c) variety d) looks and comfort

4 d) do you think GM footwear department of Big bazaar

serves the purpose of providing you footwear of your choice?

a) Strongly agree

b) Agree

c) Disagree

d) Strongly disagree

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Luggage

5 a) have you purchased any luggage from Luggage

department ?

a)Yes b) no

5 b) if yes which luggage brand you have purchased?

a) Milestone b) American tourister c) V.I.P d) Samsonite

e) safari

5 c) Are you Satisfied with the variety offered by

luggage department

a) Strongly agree

b) Agree

c) Disagree

d) Strongly disagree

5 d) what factor influence you to purchase luggage from

luggage section?

a) Discount b) quality c) design d) brand

Plastic and utensils

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6 a) Have you purchased any product plastic and utensils

department ?

a) yes b) no c) not applicable

b) Product available in plastic and utensil are!!

a) Excellent b) Good c) Bad d) Very bad

Stationary department

7 a) have you purchased any product from stationary department ?

a) Yes b) no

b) Satisfied with the availability of product in stationary

department

a) Strongly agree b) Agree c) Disagree

d) Strongly disagree

c) What type product you mostly purchase from stationary

department?

a) Stationary b) Gifts c) Books

d) Office use items

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8. Compare others organized retail stores with GM at Big Bazaar on the following parameters.

a)Price

1.GM(BB) II. Others Organized Retailer

b)Service

1.GM(BB) II. Others Organized Retailer

c) Variety

1.GM(BB) II. Others Organized Retailer

d)Quality

1.GM(BB) II. Others Organized Retailer

e) Convenience

1.GM(GM) II. Others Organized Retailer

f) Shopping Experience

1.GM(BB) II. Others Organized Retailer

g)Ambience

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1.GM(BB) II. Others Organized Retailer

THANK YOU

BIBIOGRAPHY

BOOKS

1. Kotler Philip, marketing management, (Pearson

education, 12th edition).

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2. Prof.M.V. Kulkarni , Research methodolgy

INTERNET WEB PAGE

Bigbazaar.co.in

Organizedretail.co.in

Retail seminar. In

Literature review on Big Bazaar.com

Retailing.co.in

Pantaloon.com

Futuresbazaar.com

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