Big Bazaar Report

INDEX

TOPICS PAGE NO.

1. EXECUTIVE SUMMARY……………………………………………………………………………………. 52. OBJECTIVE……………………………………………………………………………………………………. 53. INTRODUCTION …………………………………………………………………………………………… 6 Overview of Indian retail industry……..………………………………………………………….. 6 Future group…….…………………………………………………………………………………………. 12 Big Bazaar……………………………………………………………………………………………………. 154. MARKETING……………………………………….…………………………………………………………. 205. LUCKNOW………………………………………….…………………………………………………………. 21 Overview of city background……………………………………………………………………….. 21 Demographics……………………………………………………………………………………………… 226. COMPETITOR ANALYSIS………………………………………………………………………………. 237. CATCHMENT ANALYSIS……………………….………………………………………………………. 298. CONDUCTING IN STORE ACTIVITIES……………………………………..…………………….…40 Ms. Kitchen smart contest. Food-Food channel cookery competition. Nestle (MAGGI) promotional activity. L.G and Electrolux food garnishing competition activity.9. SWOT ANALYSIS OF BIG BAZAAR…………………………………………………………………. 7010.CONCLUSION……………………………………………………………………………………………….. 7111.SUGGETIONS FROM CUSTOMER…………………………………………………………………… 7212.RECOMMENDATIONS………………………………………………………………………………….. 7313. BIBLIOGRAPHY……………………………………………………………………………………………. 74

EXECUTIVE SUMMARY

The Indian retail industry—one of the fastest growing industries in the country over the past couple of

years— is no exception. While 2008 showed growth for the industry on the whole, the last quarter of

2008 was impacted by the economic slowdown and liquidity crunch, and this is expected to continue in

the current year.

The year gone by was packed with several significant developments for the Indian retail industry,

including the entry of many global players, growing acceptance of the modern formats, the success of

many specialty retail formats, and the rising competition in the regional markets beyond the metros and

Tier 1 cities. On the other hand, the after effects of the global economic turmoil are being felt in India as

well, and the economy is expected to grow at a significantly lower rate over the next 2 years (between 5

to 7 percent according to various estimates*). Consequently, overall consumption levels, particularly

discretionary spend and impulse purchases have been affected, which, in turn, has resulted in a lower

growth rate for the industry for the current year.

Moreover, this trend is expected to continue in 2012. Given the industry‘s changing landscape and

emerging challenges, the focus of industry players too is changing; with a strong emphasis on profitable

growth in the current scenario. Hence, retail companies are increasingly concentrating on strengthening

existing operations and assessing options for growth through consolidation, while continuing to innovate.

Factors like renegotiating rentals, store rationalization, working capital management, regionalization, cost

optimization and manpower resizing are some of the key Top of Mind (TOM) issues for retailers in the

current context of the downturn. In the year 2004, the size of Indian organized retail industry was Rs

28,000 cr, which was only 3% of the total retailing market. Retailing in its present form started in the

latter half of 20th Century in USA and Europe and today constitutes 20% of US GDP. The contribution

of organized retail is expected to rise from 3% to 9% by the end of the decade. In India it has been found

out that the top 6 cities contribute for 66% of total organized retailing. With the metros already been

exploited, the focus has now been shifted towards the tier-II cities**. The 'retail boom', 85% of which has

so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns.

The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%. In

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the year 2004, Rs 28,000 cr organized retail industry had Clothing, Textiles &fashion accessories as the

highest contributor (39%), where as health & beauty had a contribution of 2%. Food & Grocery

contributed to 18% of the total.

The Indian retail sector has witnessed a great change in the past couple of years. Changing lifestyle,

higher disposable income coupled with greater affordability and a surge in advertising has been

instrumental in bringing about a sea change in the consumer behaviour pattern and their shopping

culture.

Catchment analysis was done at Big Bazaar in Gomti Nagar, River Side Mall. The catchment area is

divided into two parts 1. Localities of Gomti Nagar 2. important markets of Gomti Nagar. The outdoor

survey was done in the households in these potential areas.

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OBJECTIVE

Main objective:

i. Catchment Analysis of Big Bazaar Lucknow.

ii. Thursday property Generation for SAHARAGANJ Mall, Lucknow.

iii. Analyzing the in store customer feedback.

iv. Identifying the action plan for improving walk-in.

Sample design Sample Universe:

The sample universe includes all the existing and potential customers of Lucknow district.

Sample Unit:

The sample unit includes all the existing and potential customers of Big Bazaar, Lucknow catchment.

Sample Size:

The sample size of customers which would be considered for the research is 500 respondents for in store

analysis and for the catchment analysis both.

Secondary objective:

To understand the activation and execution of BTL element.

Marketing planning done at two level one is at ATL and other is at BTL level.

ATL “Above The Line” and BTL “Below The Line” is marketing communication these are advertising techniques, or different strategies companies use to sell their product and can be used to build Brand awareness.

ATL communication use media that broadcast and publish to mass audience nationally.

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BTL communication use media or different marketing tool that broadcast and publish to less audience locally.

In Big Bazaar marketing is done at BTL level.

Extra in store activities:

i. Organizing the mega event named “Ms. Kitchen smart contest”

ii. Organizing the cookery competition of FOOD-FOOD Channel By chef “Rakesh shetty”

iii. Organizing Nestle (MAGGI) promotional activity.

Data collection

Primary Data

Primary data will be collected by taking interview from the potential respondents in the form of

questionnaire. The questions in the questionnaire would be in the form of rating-scale, open-ended &

close-ended questions which would be logically framed in order to achieve the above stated objectives.

Secondary Data

Secondary data will be obtained through information from previous literature, reports, newspapers,

reference books, magazines and websites.

Limitations of Study

1. People May not able to properly rate the parameters.

2. Results concluded may not be applicable to entire population.

3. Certain variables may have been ignored.

4. Customer choice is also based on geographic factors.

5. Macro-economic factors affect this industry to a large extent.

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Chapter 1

INDUSTRY PROFILE

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1. INTRODUCTION

Retailing is the business where an organization directly sells its products and services to an end consumer

and this is for his personal use. By definition organization whether it is a manufacturer or a wholesaler is

selling goods directly to the end consumer, it is actually operating in the Retail space. This industry has

traveled a long way from a humble beginning to a situation where worldwide Retail sales are more than $

7 Trillion.

1.1 OVERVIEW OF INDIA’S RETAIL INDUSTRY 1.1.1 What is Retail?

“Retail involves the sale of goods from a single point (malls, markets, department stores etc) directly to the consumer in small quantities for his end use.”

Retailing is a distribution channel function, where one organization buys products from supply firms or manufactures products themselves and sells directly to the consumers.

In majority of retail situation, the organization, from whom a consumer buys, is a reseller of products obtained from others, and not the products manufacturer. However, some manufacturers do operate their own retail outlets in a corporate channel arrangement.

1.1.2 Indian Retail Industry

Retailing is considered as a sunrise industry today after InfoTech. It is the most happening

industry with almost all the big players vying for a share of the coveted pie. Buoyed by a strong

increase in private consumption, retailing is one industry that is waiting to explode. The Indian

Retail sector has caught the world‘s imagination in the last few years. Topping the list of most

attractive retail destination list for three years in a row, it had retail giants like Wal-Mart,

Carrefour and Tesco sizing up potential partners and waiting to enter the fray. India‘s retail

growth was largely driven by increasing disposable incomes, favorable demographics, changing

lifestyles, growth of the middle class segment and a high potential for penetration into urban and

rural markets. However, with the onset of the global financial crisis, Indian retailers have been

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suffering from the effects of rapid credit squeeze, high operating costs and low customer

confidence.

Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, Indian retail industry is one of the fastest growing industries in India especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of taste and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually.

In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non-branded items.

As of now the retail sector in India accounts for approximately 33-35% of the GDP with 46% growth rate in past three years and employs 7% of the total Indian work-force.

According to the analysis done on January, 2012.

Retail store:-

Number of firms : 37

Growth in EPS : 6.19%

Growth in Sales : 8.85%

Growth in Dividends: 12.21%

It is expected that by 2016, modern retail industry in India will be worth US$ 175- 200 billion.

1.1.2. A. Organized and Unorganized Retail

Organized Retail- Organized retail includes the licensed retailers i.e. those, who have registered themselves for sales tax/vat, income tax and routine regulatory checks. These are generally privately owned large businesses. Organized retailing has become more popular in big cities in India and most of

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the metropolitan cities and other big cities are flooded by modern organized retail stores. Many semirural areas have also witnessed entry of such organized retail outlets. India’s retail sector is estimated to touch US$833 billion by 2013 and US$ 1.3 trillion by 2018, with a compound annual growth rate (CAGR) of 10%, which is quite lucrative. The organized sector accounts for a mere 5% indicating a huge potential market opportunity that is lying in the waiting for the consumer-savvy organized retailer.

Purchasing power of Indian urban consumer is growing and branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even jewelry are slowly becoming lifestyle products that are widely accepted by the urban Indian consumers.

Opportunities for the Organized Retail Sector in India

1. India’s booming economy is a major source of opportunity. It is the third largest in the world in terms of purchasing power. India is the second fastest growing major economy in the world.

2. India's huge population has a per capita income of Rs 44,345.

3. The proportionate increase in spending with earnings is another source of opportunity.

4. With the Indian economy now expected to grow at over 8% and with average salary hikes of about 15%, manufacturers and retailers of consumer goods and services can expect a major boost in consumption.

5. The Demography Dynamics are also favorable as approximately 60 per cent of Indian population is below the age of 30.

6. Increasing instances of Double Incomes in most families coupled with the rise in spending power.

7. Increasing use of plastic money for categories relating to Apparel, Consumer Durable Goods, Food and Grocery etc.

8. Increased urbanization has led to higher customer density areas thus enabling retailers to use lesser number of stores to target the same number of customers. Aggregation of demand that occurs due to urbanization helps a retailer in reaping the economies of scale.

9. With increased automobile penetration and an overall improvement in the transportation infrastructure, covering distances has become easier than before. Now a customer can travel miles to reach a particular shop, if he or she sees value in shopping from a particular location.

Unorganized Retail- unorganized retailing refers to the traditional kirana shops, general/departmental stores, paan/beedi shops etc. if we talk about the statistics, the market share of unorganized retail sector is 97% of the total retail sector, as compared to organized retail sector, which accounts for only 2-3%. This data is even after the presence of big corporate giants like Tata, Reliance etc

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1.1.3. Major Retailers in India

A. Future Group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, operates some of India’s most

popular retail formats that include Pantaloons, Big Bazaar, Central, Home Town, Ezone and Food

Bazaar. While retail forms the core business activity of Future Group, the group has developed

significant presence in consumer finance, capital, insurance, brand development, retail media and

logistics. Headquartered in Mumbai (Bombay), the company details are given below.

Food and Grocery: Big Bazaar, Food Bazaar. Home solution: Hometown, Furniture Bazaar, Collection-i. Consumer Electronics: e-zone E-tailing: Futurebazaar.com Entertainment: Central: shop, eat and celebrate.

B. Tata Group

Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and star India Bazaar. Establish in 1998, it also acquired the largest book and music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lakh sq. ft retail space across the country.

C. RPG Group

RPG Group is one of the earlier entrants in the Indian retail market, when it came into food and grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy and beauty care outlets ‘Health & Glow’.

D. Reliance

Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It’s expecting its sales to reach Rs. 90000 crores by 2010.

E. AV Birla Group

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AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, and Peter England are quite popular. It’s also investing in other segments of retail. It will invest Rs. 8000-9000 crores by 2010.

1.1.4. The Supply chain

Manufacturers: Manufacturers are the ones who are involved in production of goods with the help of machines, labour and raw materials.

Wholesalers: The wholesalers are the one who purchases the goods from the manufacturers and sells to the retailers in large numbers but at a lower price. A wholesaler never sells goods directly to the end users.

Retailer: A retailer comes at the end of the supply chain who sells the products in small quantities to the end users as per their requirement and need.

The end user goes to the retailer to buy the goods (products) in small quantities to satisfy his needs and demands. The complete process is also called as shopping.

Shopping: The process of purchasing products by the consumer is called as shopping. However there are certain cases where shopping does not always end in buying of products. Sometimes individuals do go for shopping but return home empty handed. Such a shopping is merely for fun and is called window shopping. In window shopping, individuals generally go to the market, check out various options and their prices but do not buy anything. This kind of shopping helps to break the monotony.

1.1.4. Current FDI Policy in respect of Retail sector in India

Keeping in mind the ‘welfare’ motive, India has kept the retail sector closed for the foreign investors in order to protect the interest of the 15 million small retail store-owners. Currently, the foreign investor can make investments as per following guidelines:

1. FDI up to 100% for cash and carry wholesale trading and export trading allowed under the automatic route.

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2. FDI up to 51% with prior Government approval for retail trade of ‘Single Brand’ products. (Now 100% allowed vide notification dated 11/Jan/2012)

3. FDI is not permitted in Multi Brand Retailing in India.

1.1.5. Retailing formats in India

1. Malls

2. Specialty Stores

3. Discount Stores

4. Department Stores

5. Hyper marts / Supermarkets

6. Convenience Store

7. MBO’s

8. E-trailer

Malls:

Mall is largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts they range from 60,000 sq ft to 7, 00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Pyramid, and Pantaloon.

Specialty Stores:

Focusing on specific market segments and have established themselves strongly in their sectors. Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World are few of the examples.

Discount Stores:

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As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable goods. Discount Circuit is one such example.

Department Stores:

Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further they are classified into localized departments such as clothing, toys, home, groceries, etc.

Hyper marts/Supermarkets:

Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified into mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.

Convenience Stores:

These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium.

MBO’s:

Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros.

E-trailers:

Retailers providing online buying and selling of products and services.

Conclusion

For a start, these retailers need to invest much more in capturing more specific market.

Intelligence as well as almost real-time customer purchase behavior information. The retailers also need

to make substantial investment in understanding/acquiring some advanced expertise in developing more

accurate and scientific demand forecasting models. Re-engineering of product sourcing philosophies-

aligned more towards collaborative planning and replenishment should then be next on their agenda. The

message, therefore for the existing small and medium independent retailers is to closely examine what

changes are taking place in their immediate vicinity, and analyze Whether their current market offers a

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potential redevelopment of the area into a more modern multi-option destination. If it does, and most

commercial areas in India do have this potential, it would be very useful to form a consortium of other

such small retailers in that vicinity and take a pro-active approach to pool in resources and improve the

overall infrastructure. The next effort should be to encourage retailers to make some investments in

improving the interiors of their respective establishments to make shopping an enjoyable experience for

the customer. As the retail marketplace changes shape and competition increases, the potential for

improving retail productivity and cutting costs is likely to decrease.

Therefore, it will become important for retailers to secure a distinctive position in the marketplace

based on value, relationships or experience. Finally, it is important to note that these strategies are not

strictly independent of each other; value is function of not just price, quality and service but can also be

enhanced by Personalization and offering a memorable experience. In fact, building relationships with

customers can by itself increase the quality of overall customer experience and thus the perceived value.

But most importantly for winning in this intensely competitive marketplace, it is critical to understand the

target customer's definition of value and make an offer, which not only delights the customers but also is

also difficult for competitors to replicate.

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FUTURE GROUP

1.2.1 Overview of company

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, operates some of India’s most

popular retail formats that include Pantaloons, Big Bazaar, Central, Home Town, Ezone and Food

Bazaar. While retail forms the core business activity of Future Group, the group has developed

significant presence in consumer finance, capital, insurance, brand development, retail media and

logistics.

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The group’s retail formats bring in around 250 million customer footfalls every year and provide a

platform for over 30,000 small, medium and large entrepreneurs in India to sell their products and

services to these customers. The group has a retail presence in 85 cities and 65 rural destinations and

employs over 35,000 people directly.

The group’s flagship enterprise, Pantaloon Retail India Limited was founded in 1987 and is listed in

the Bombay Stock Exchange and National Stock Exchange since 1991. The company along with its

subsidiaries operates around 16 million square feet of retail space in the country. Other group

companies include, Future Capital Holdings, a financial services company, Future Ventures, engaged in

operating and investing in allied businesses, Future Supply Chain Limited which operates a nation-wide

logistics and warehousing network, Future Brands India Limited, a brand and intellectual property rights

development corporation and Future Human Development Limited, an educational and manpower

training company with campuses in Ahmadabad, Bangalore and Kolkata that offers degree programs in

association with IGNOU.

Over the years, the group has also developed successful partnerships with Indian and foreign

companies. The group has partnered with Tata Group to operate the brand T24 as a telecom service

provider for its customers. It also operates rural retail chain in partnership with Godrej Group. The

group also has exclusive brand license partnerships with leading global brands like Lee

Cooper, Converse, Callaway, Prince, Spalding and Wilson.

1.2.2. Vision

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

customer in the most profitable manner.

1.2.3. Mission

We share the vision and belief that our customers and stake holders shall be served only by

creating and executing future scenarios in the consumption space leading to economic

development.

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

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

We shall infuse Indian brands with confidence and renewed ambition.

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

We shall ensure that our positive attitude, sincerity, humility and united determination shall be

driving force to make us successful.

1.2.4. Values

Indianness: confidence in ourselves.

Leadership: To be a leader, both in thought and business.

Respect & Humility: To respect every individual and be humble in our conduct.

Introspection: Leading to purposeful thinking.

Openness: To be open and receptive to new ideas, knowledge and information.

Valuing and Nurturing Relationships: To build long term relationship.

Simplicity & Positivity: Simplicity and positivity in our thought, business and action.

Adaptability: To be flexible and adaptable, to meet challenges.

Flow: To respect and understand the universal laws of nature.

1.2.5 Strategy

Future Group’s strategy is aimed at achieving inclusive, sustained and profitable growth with three layers.

1.2.6. KEY COMPANIES:

RETAIL

Future Value Retail Limited

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Pantaloon Retail (India) Limited

FINANCE

Future Ventures (India) Limited

SERVICES

Future Supply Chains Limited

Future Human Development Limited

Future Media (India) Limited

Future Corporate Resources Limited

1.3BIG BAZAAR

1.3.1 Overview of Big Bazaar Big Bazaar is a chain of hypermarket in India. Currently, there are 214 stores across 90 cities and towns in India covering around 16 million sq.ft. of retail space. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections.

Big Bazaar is part of Future Group, which also owns the Central Hypermarket, Brand Factory, Pantaloons, eZONE, Hometown, futurebazaar.com, KB's Fair Price to name a few and is owned through a wholly owned subsidiary of Pantaloon Retail India Limited

1.3.2 Strategy

3-C THEORYAccording to Kishore Biyani’s 3-C theory, Change and Confidence among the entire population is leading to rise in Consumption, through better employment and income which in turn is creating value to the agricultural products across the country. Big Bazaar has divided India into three segments:

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

India two: Serving class which includes people like drivers, household helps, office peons, liftmen, washermen, etc. (55% of India's population) and

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

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While Big Bazaar is targeted at the population across India one and India two segments, Aadhaar Wholesale is aimed at reaching the population in India three segment. With this, Future Group emerged as a retail destination for consumers across all classes in the Indian society.

1.3.3 Innovation

WEDNESDAY BAZAAR

Big Bazaar introduced the Wednesday Bazaar concept and promoted it as “Hafte Ka Sabse Sasta Din”. It was mainly to draw customers to the stores on Wednesdays, when least number of customers are observed. According to the chain, the aim of the concept is "to give homemakers the power to save the most and even the stores in the city don a fresh look to make customers feel that it is their day".

SABSE SASTA DIN

With a desire to achieve sales of Rs 26 Crore in a one single day, Big Bazaar introduced the concept of "Sabse Sasta Din". The idea was to simply create a day in a year that truly belonged to Big Bazaar. This was launched on January 26, 2006 and the result was exceptional that police had to come in to control the mammoth crowd. The concept was such a huge hit that the offer was increased from one day to three days in 2009 (24 to 26 Jan) and to five days in 2011 (22-26 Jan).

MAHA BACHAT

Maha Bachat was started off in 2006 as a single day campaign with attractive promotional offers across all Big Bazaar stores. Over the years it has grown into a 6 days biannual campaign. It has attractive offers in all its value formats such as Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar - catering to the entire needs of a consumer.

THE GREAT EXCHANGE OFFER

On February 12, 2009 Big Bazaar launched "The Great Exchange Offer", through with the customers can exchange their old goods in for Big Bazaar coupons. Later, consumers can redeem these coupons for brand new goods across the nation.

Public Holiday Sale

On April 28, 2012 Big Bazaar launched “Public Holiday Sale” as a 4 day campaign with attractive promotional offers across all Big Bazaar stores. It has attractive offers in all value formats such as Big Bazaar, Food Bazaar, Electronic Bazaar, and Furniture Bazaar. Catering to the entire needs of a customer.

1.3.4 Time line

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2001

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

2002

Big Bazaar - ICICI Bank Card is launched. Food Bazaar becomes part of Big Bazaar with the launch of the first store in Mumbai at High

Street Phoenix

2003

Big Bazaar enters Tier II cities with the launch of the store in Nagpur Big Bazaar welcomes its 10 million-th customer at its new store in Gurgaon

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

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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 Big Bazaar opens its fourth store in Kanpur at Jajmau which is the largest leather tannery

garrison of Asia Vidya Balan was chosen as the brand ambassador of Big Bazaar's Price Challenge exercise Ranked 6 among the Top 50 Service Brands in India.

2011

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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’. 200th store opened in India Future Group has launched its latest venture, Foodhall – a premium food destination across 10

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

above Rs. 1000 Entered into an agreement with Hindustan Unilever to co-develop and co-brand bakery

products, which would be sold exclusively at Big Bazaar stores.

2012

Big Bazaar entered into a five year multi-million dollar deal with Cognizant Technology Solutions for IT infrastructure services that support Future Group's network of stores, warehouses, offices, and data centers.

Partnered with Disney to launch "Kidz Cookies", exclusively for kids across India. Big Bazaar is planning to add further value to its retail services by offering Value added services

like grinding, de-seeding, vegetables cutting at free of cost.

1.3.5. Line of Business

Big Bazaar normally has number of departments as follows:-

1. Food – Food department contain both Food and Non–food section like fruits groceries, golden harvest etc.

2. Fashion- Fashion department contains variety of clothes for children, men’s, ladies.3. General Merchandise- General Merchandise deals in three sets Plastic, Utensils and Crockery.4. Electronic- Electronic department contains variety of electronic brands like Samsung, Hitachi,

Koryo, etc.5. Furniture – Furniture department contains variety of furniture like Dining table, Sofa sets etc. 6. Home Fashion- Home fashion contains variety of accessories which help in decorating homes. 7. Footwear- Footwear section contains variety of sandals, shoes of knighthood brand which is owned

Big Bazaar only. 8. Luggage- Luggage section contains variety of luggage like American Tourister, VIP, etc.

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9. Navras / Star Stira- Navras section particularly deals in GOLD, it sells Gold items and Star Stitar is a beauty parlor.

10. Food Service- Food Services is provide healthy snacks item to the customer at affordable price.11. Toys and stationary- Toys and stationary department contains variety of soft toys , video games

etc.12. T24- T24 is the sim card launched by Future Group in partnership with TATA.

2. MARKETING 2.1. Key Responsibility Area of Marketing in Big Bazaar

3. LUCKNOW

3.1 An Overview of City Background

Located in what was historically known as the Awadh region, Lucknow has always been a multicultural city. Courtly manner, beautiful gardens, poetry, music, and fine cuisine patronized by the Persian-loving Shia Nawabs of the city are well known amongst Indians and students of South Asian culture and history. Lucknow is popularly known as the “The city of Nawabs”. It is also known as the Golden City of Nawabs. It is also known as the Golden City of the East, Shiraz-i-Hind and The Constantinople of India.

Today, Lucknow is a vibrant city that is witnessing an economic boom and is among the top ten fastest growing non-major-metropolitan cities of India. It is the second largest city in Uttar Pradesh State. The Unique combination of its cultured grace and newly acquired pace is its most promising feature the augurs well for the future.

Situated in the heart of the great Gangetic plan Is surrounded by its rural town and villages like the orchard town of Malihabad, historic Kakori,

Mohanlalganj, Gosainganj, Chinhat, Itaunja. On its eastern side lies Barabanki District, on the western side is Unnao District, on the southern

side Raebareli District, and on the northern side the Sitapur and Hardoi districts. The Gomti River, the chief geographical features, meanders through the city, dividing it into the

Trans-Gomti and Cis-Gomti regions.

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3.2 Demographic

The majority of Lucknow’s population compromises people from Central and Eastern Uttar Pradesh. However Bengalis, Punjabis and Anglo-Indians have also settled in large numbers.

According to the Census of India 2001:

Number of households is 6,44,269 Household size (per household) is 6. Type of houses (% of household occupying)

1. Permanent :70.62. Semi-permanent: 7.73. Temporary : 21.7

71%

8%

22%

Type of Household

permanent semi permanenttemporary

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4 Competition Analysis- Big Bazaar & Competitors

4.1 Competitor Analysis- Competitors all over Lucknow

4.2 Competitor Analysis- Our Major Competitor: SPENCER

4.3 Snapshot of Spencer’s Hyper

Spencer’s Hyper is situated in India Nagar. The distance between our new store, Big Bazaar Eldee Plaza and Spencer’s Hyper is 50 meters

4.4 SWOT Analysis: Spencer’s

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CONVENIENCE

CONVENIENCECONVENIENCE

CONVENIENCE

HYPER

HYPER

CONVENIENCE

CONVENIENCE

CONVENIENCE

CONVENIENCE

CONVENIENCENew store

CONVENIENCE

CONVENIENCE

SUPERSUPER

SUPER

SUPERCASH & CARRY

Strength:

Spencer’s have good brand awareness among the consumer

Major focus on upper middle class group by laying more emphasis on quality.

Weakness:

The consumers are not satisfied by the offers introduce by the spencer’s.

Variety of products is less in comparison with other competitors.

Promotional schemes are not attractive.

Opportunities

Should adopt better marketing strategies

Threats

Big Bazaar is the huge threat to Spencer’s

Footfall is less in comparison from the other competitor.

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5. Catchment Analysis

1. Big Bazaar through City Map

RESEARCH METHODOLOGY

Sources of data

Primary sources: Primary data is collected from the customers of Big Bazaar

Secondary sources: Secondary data is collected from company records, literature, Internet

Research approach : Survey method

Research design : Descriptive research design

Research instrument : Questionnaire

Contact method : Personal contact

Analysis for representation : Bar diagram

Sampling Plan:

Sampling unit : Customers

Sample size : 210

Sampling method : Convenience sampling method

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ELDEE PLAZA – L4

SAHARAGANJ – L1 RIVERSIDE

MALL–L2

PHOENIX MALL – L3

1. Analysis through statistical representation:

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CUSTOMERS: ACCORDING TO GENDER

Interpretation: the above diagram shows that out of 210 customers 73% are male

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Interpretation: the above diagram shows the distribution of age of the customers. 58% 0f the customers fall in the young age group that is 18-25. Which shows that customers falling in this age group are generally of working class and they don’t have much time and Big Bazaar being the shopping hub, it become easier for them to shop under one roof.

Interpretation: the above diagram shows that 61.43% of the customers visit the store casually whereas 38.57% of customers visit the store was preplanned.

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CUSTOMERS : ACCORDING TO AGE

Interpretation: the above diagram shows the 50% customer visit the store with family and 43% customer visit the store with friends, which shows that Big Bazaar is much popular among the family member of the customers and youth.

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Interpretation: the above diagram shows that 41.4% customers visit the store on monthly basis which shows that they mainly buy from Big Bazaar when they are with their monthly salary in hand and 28.6% customer visit the store weekly.

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How often do you visit Big Bazaar?

Interpretation: the above diagram shows the distribution of items purchased by the customer. 25% of the customer buys food from the Big Bazaar and 15% of the customer buys apparels.

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What do you usually prefer to shop at Big Bazaar

Interpretation: the above diagram shows the outcome of marketing strategies used by Big Bazaar. 56% of the customer noticed the newspaper advertisement which shows it as a successful marketing tool and 27% of the customer noticed the banners of the Big Bazaar advertisement which prove it to be the next best marketing tool.

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Did you come across any of the following for big bazaar

Interpretation: the above diagram shows the customer view about using marketing tool. 34% of the customer wants the newspaper advertisement which shows it as a successful marketing tool and 31% of the customer wants the Big Bazaar advertisement through SMS which make it to be the next best marketing tool.

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How do you want us to convey the offers to you

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Parameters Rating for BB

FINDINGS

At Lucknow the store currently has an image that of a discount store. This takes

away the image that they sell quality products and that shopping is an experience

here.

The general public at Lucknow does not consider shopping as a wasteful

extravaganza. This is a good indicator of a good future ahead for Big Bazaar

Lucknow as, here shopping is turning out to a family experience.

There is a huge opportunity for store-in-store to cater to specific local items during

local festivals and occasions.

Catchment area study help store to know about the demographic profile of

customer, existing competitors, entertainment zone, dinning and help to know

where customers are currently going for shopping and reason for the same.

Most of the retail store having in-house brands to compete with private label and

customer also ready to purchase in-house brand if it suits to price their range and

stuff they actually want.

Customer service is one of important factor that influence the customer to visit

stores.

Offers/discounts also the factor that help store to increase number of footfalls.

Most of customer is aware of loyalty program of branded retail store and being a

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member of this store also influence customer to go for shopping in the same store.

It was found that, 58% of the respondents fall in range between18 years to 25

years, 19% of the respondents fall in range between 26 years to 30 years, 10% of

the respondents fall in range between 31 years to 35 years, 5% of the respondents

fall in range between 36 years to 40 years, 4% of the respondents fall in range

between 41 years to 49 years and 4% of the respondents fall above 50 years.

It is revealed from the data that only 1% of the respondents lives within 1 KM

range from Big Bazaar, 10% of the respondents lives within 1-3 KM range, 18% of

the respondents lives within 3-5 KM range, 49% of the respondents lives within 5-

15 KM range, 4% of the respondents lives within 15-30 KM range and 19% of the

respondents lives above 30 KM range.

It is revealed from the data that 38.57% of the respondents visit on pre planned

basis and 61.43% of the respondents visit the sore on casual basis.

It is revealed from the data that 7% of the respondents visit alone, 50% of the

respondents visit with family and 43% of the respondents visit with their friends.

It is revealed from the data that 1.4% of the respondents visit daily, 28.6% of the

respondents visit weekly, 17.6% of the respondents visit fortnightly, 41.4% of the

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respondents visit monthly and 11% of the respondents visit occasionally to the

store.

It is evident from the data that 25% of the respondents normally visit the store to

buy food products, 15% of the respondents normally visit the store to buy

apparels, 13% of the respondents normally visit the store to buy electronic

products, 12% of the respondents normally visit the store to buy from PUC

(Plastics/Utensils/Crockery) section, 12% of the respondents normally visit the

store to buy products from toys/sports/stationary section and 12% of the

respondents normally visit the store to buy home fashion products.

It was found that only 7% of the respondents had seen Big Bazaar offer leaflets,

56% of the respondents had seen Big Bazaar offers in newspaper advertisement,

9% of the respondents had seen Big Bazaar offers in sms form, 27% of the

respondents had seen Big Bazaar offers on banners, none of the respondents had

seen Big Bazaar offers live on radio and 1% of the respondents had noticed Big

Bazaar offers through auto announcement.

It was found that 13% of the respondents wants Big Bazaar offers through leaflets,

34% of the respondents wants Big Bazaar offers through newspaper

advertisement, 31% of the respondents wants Big Bazaar offers through SMS, 21%

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of the respondents wants Big Bazaar offers through banners display, and only 1%

of the respondents wants Big Bazaar offers through auto announcement.

It is evident from the data that in case of price Big Bazaar get 7.62149104 average

rating whereas competitors gets 6.756228 average rating by respondents.

It is evident from the data that in case of product quality Big Bazaar get

7.71622605 average rating whereas competitors gets 6.936944 average rating by

respondents.

It is evident from the data that in case of product availability Big Bazaar get

7.50801681 average rating whereas competitors gets 6.842542 average rating by

respondents.

It is evident from the data that in case of staff knowledge Big Bazaar get

7.55652605 average rating whereas competitors gets 6.927242 average rating by

respondents.

It is evident from the data that in case of store ambience Big Bazaar get

7.44737087 average rating whereas competitors gets 6.709598 average rating by

respondents.

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It is evident from the data that in case of shopping experience Big Bazaar get

7.34245651 average rating whereas competitors gets 6.666472 average rating by

respondents.

12.Recommendations

Every week certain activities to be planned so that foot falls can be maintained.

Marketing team needs a support from category team so that marketing team will

get proper offers on time and publish it in the newspaper or announce in the radio

before the promotion started

Under stocking is the grave situation which can hamper the foot fall of the store.

Hoarding comes out as the major marketing tool so marketing team should

communicate their promotion for creating pre hype amongst the customer in big

promotions.

As hoarding is one of the major marketing tools so marketing team should hire

four hoardings in the catchment of the all four Big Bazaar’s on yearly so that if

customer wants to see what is going on in the Big Bazaar can easily get from those

hoardings.

Regular feedback should be taken from the customer and implemented

accordingly.

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Property generation is task, we have to conduct a major research for property

generation for a long time, like “Thursday thok bazaar”

13. Bibliography http://www.futuregroup.in/ http://bigbazaar.futurebazaar.com http://www.slideshare.net/bnharsha/big-bazaar-project03-final http://www.caclubindia.com/articles/fdi-in-indian-retail-sector-highlights-analysis-

12546.asp#.T88MMrBh95g

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