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EXECUTIVE SUMMARY

Fashion at Big Bazaar is an exclusive apparel store under the future group. It mainly caters to the needs of fashion conscious people, it has a variety of product mix which includes women(casual, formal and ethnic wear), men(casual, formal and ethnic wear) and kids. It is the only store in south India designed exclusively for fashion apparels and it is situated in Cosmos mall. The study is conducted to find out the competitors of Fashion at Big Bazaar in Bangalore. As a marketer one should be aware of the competitors and their various marketing strategies to function effectively in any field. Objectives of the study is to find out the acceptance of brand both private and manufacturers brands sold through retail outlet, find out the depth in product assortment, to find out various selling techniques.

A research design is the specification of methods and procedures for acquiring the information needs to structure or to solve the problems, the type of research used here was descriptive research. The study is conducted using primary data, the primary data will be collected through survey method using questionnaire as the major tool. Primary data was collected through interactions with the retailers.

The population includes the number of retail outlets who sell the same category of products as the store in study. Questionnaires will be the tool used to collect data from the retailers. The study will be conducted on selected retailers in Bangalore, which include both the organized and unorganized retailers. The study will also be conducted on various other apparel outlets under the future group (pantaloons, loot mart etc). Majorly the study has time as a constraint, the number of retail outlets to be considered as sample is also 100. It is found that majority of stores have a good footfall to conversion rate and their price and quality that they offer is good. It is suggested that the store should try to get a better footfall by giving more discounts and by offering better quality. It should stock different brands and try to target the middle class customer.

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PART - A

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CHAPTER I

AIM: To study Organizational activities in all functional area and relate this to theoretical knowledge acquired.

1.1 INDUSTRY PROFILE

Retail is India’s largest industry, accounting for over 10 percent of the country’s GDP and around 8 percent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted success so far. However the future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations.

Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with average age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India. The market size of Indian retail industry is about US $312 billion. India’s Consumption Cosmos During the past decade, Private Final Consumption Expenditure has been the key driver of economic growth in India. Retail industry in India is expected to rise 25percent yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is

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increasing at a rate of 5percent yearly. A further increase of 7-8percent is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof.

1.2 COMPANY PROFILE

1.2.1 Background and inception

Big Bazaar is a chain of department stores in India currently with 100 outlets. It is owned by Pantaloon Retail India Ltd, Future Group. It works on the same economy model as Wal-Mart and has been successful in many Indian cities and small towns. The idea was pioneered by entrepreneur Mr. Kishore Biyani, the CEO of Future Group. Currently Big Bazaar stores are located only in India. It is the fastest growing chain of department stores and aims at having 350 stores by 2010. Fashion at big bazaar was introduced in 2001, Fashion at Big Bazaar are found as cut-ins within all Big Bazaar stores, as well as some stand alone stores.

1.2.2 Nature of the business carried

Fashion at Big Bazaar aims to dispel the myth that fashion comes with a steep price tag. With fashion apparel and accessories for all age groups across categories like men, ladies, kids and infants, Fashion at BigBazaar is the fashion destination for all. Be it office or casual wear; festivals or weddings, Fashion at Big Bazaar has apparel for every occasion. And what’s more, it makes fashion available at affordable prices. Fashion at Big Bazaar has developed many in-house brands that cater to every age group and category. The format sells brands for both men and women including DJ&C, Knighthood, Privilege Club, AFL and Haute n Spicy. Shrishti and Shatranj are ethnicwear brands, while Pink n Blue, Princess and the Power Rangers line caters to kids. It also has a special tie up with Star TV for a

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special Star Parivaar line. Under this line, the format retails clothes that don many of the consumer’s favourite television stars. The format also retails international and national brands like Signature by Levis, Going 3, 14U, Meena Bindra by Biba, Aurelia by W, Lilliput and Juno. Fashion for Big Bazaar is not just about brands, but it is also about customising apparels for a diverse country like India. A strong team of designers constantly work to create special ranges to suit to the tastes of its customers spread across the country.

Fashion at Big Bazaar is found as cut-ins within all Big Bazaar stores, as well as some stand alone stores.

1.2.3. Vision, Mission & Quality Policy

Vision

“To emerge as the best and the most profitable retailer in India”

Mission

“To spearhead his company to be the finest and the most preferred chain in retailing”

Core 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 relationships.

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

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

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

1.2.4 Product profile

Fashion at Big Bazaar has developed many in-house brands that cater to every age group and category. The format sells brands for both men and women including DJ&C, Knighthood, Privilege Club, AFL and Haute n Spicy. Shrishti and Shatranj are ethnic wear brands, while Pink n Blue, Princess and the Power Rangers line caters to kids. It also has a special tie up with Star TV for a special Star Parivaar line. Under this line, the format retails clothes that don many of the consumer’s favourite television stars. The format also retails international and national brands like Signature by Levis, Going 3, 14U, Meena Bindra by Biba, Aurelia by W, Palm Tree by Gini & Jony, Lilliput and Juno.

1.2.5. Area of operation

Fashion at Big Bazaar operates in India, it has cut-ins in almost all the big bazaar outlets. Expansion has been a part of this organization and recently they have opened stores in II tier and III tier cities. Fashion at big bazaar has 5 standalone outlets in India. It has presence in almost all the major cities in India.

1.2.6. Ownership pattern

The Board consists of a whole time Chairman and Managing Director, three whole time Directors and six part time Directors holding responsible positions with vast and varied experience. The whole time directors have more than 20 years of experience in retail, manufacturing and textile industry. All independent directors have rich experience in various manufacturing and retail segment.

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BOARD OF DIRECTOR

Mr. Kishore Biyani,

Mr. Gopikishan Biyani,

Mr. Rakesh Biyani,

Mrs. Veda Prakash Arya,

Mr. Shailesh Haribhakti,

Mr. S Doreswamy,

Dr. D O Koshy,

Mrs. Anju Poddar,

Mrs. Bala Deshpande,

Mr. Anil Harish,

Managing Director

Whole time Director

Whole time Director

Director

Independent Director

Independent Director

Independent Director

Independent Director

Independent Director

Independent Director

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1.2.7.

Competitors information

The Store operates in a competitive environment. For each line of business, they face competition from established national and regional companies.

Major Competitors

Shoppers Stop

The loot

Lifestyle

Westside

Mega mart

Pantaloons

1.2.8. Infrastructural facilities

The store has the best infrastructural facilities with air conditioned. It has a good parking facility and has excellent security service. Big bazaar has state-of-the-art infrastructure facilities across the country which enhances the shopping experience of the customers and enriches the working experience of employee.

1.2.9. Awards

2009 CNBC Awaaz Consumer Awards 2009, Images Fashion Forum 2009

2008 Indian Retail Forum Awards 2008, The INDIASTAR Award 2008 , Retail Asia Pacific 500 Top Awards 2008, The Reid & Taylor Awards For Retail Excellence

2008

2007 Images Retail Awards, National Retail Federation Awards, World Retail Congress Awards, Hewitt Best Employers 2007

2006 Retail Asia Pacific Top 500 Awards, Asia money Awards, Ernst & Young Entrepreneur of the Year Award, CNBC Indian Business Leaders Awards, Lakshmipat Singhania – IIM Lucknow National Leadership Awards, Images Retail

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Awards , Readers’ Digest Awards , CNBC Awaaz Consumer Awards, Reid & Taylor Awards for Retail Excellence

2005 Images Retail Awards 2005, DAKS London

2004 Images Retail Awards 2004, Reid & Taylor and DLF Awards

2003 Indian Express Award

1.2.10. Future growth and prospects

Retail sector is expected to create 2 million jobs up to 2010.

According to Indian Retail Report top 10 players in modern retail trade are going to invest US $ 18-20 billion in next five years

Future group’s retail chain Big bazaar is planning to have 300hypermarkets in the country by 2010-2011.

The company is also mulling to increase its annual turnover to Rs.13,000 crore by 2010-2011, up from Rs.3,600 crore last fiscal on the back of its expansion.

It is projected that up to 2010 retail sector will be worth around US $ 300 billion.FDI is going to increase rapidly, by 2010 retail sector will become biggest industry in India.

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1.2.11. Work flow model (End to End):

start

1.2.11. Work flow model (End to End): start Develop EOQ base on consumption pattern Receive request

Develop EOQ base on consumption pattern

(End to End): start Develop EOQ base on consumption pattern Receive request for consumable by 7

Receive request for consumable by 7 th of every month

Receive request for consumable by 7 t h of every month Feed the requirement in the
Feed the requirement in the system System verification for stock availability Yes no Send execution
Feed the requirement in the system
System verification for stock availability
Yes
no
Send execution order
Get approval for purchase
No
Send requirement
Verification for stock availability at warehouse

Yes

Dispatch order

for stock availability at warehouse Yes Dispatch order Inward process at store Update stock level end

Inward process at store

for stock availability at warehouse Yes Dispatch order Inward process at store Update stock level end

Update stock level

end
end

Place requirement

for stock availability at warehouse Yes Dispatch order Inward process at store Update stock level end

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CHAPTER II

APPLICATION OF 7 S MODEL

2.1 Application of 7-S McKinsey model

The 7-S Model is better known as McKinsey 7-S. the two persons who developed this model are, Tom Peters and Robert Waterman, have been consultants as McKinsey & Co at that time. They published this model in their article “Structure is Not Organization” (1980) and in their books. “The Art of Japanese Management” (1981) and “In Search of Excellence”

(1982).

This model shows that organizational immune systems and the many interconnected variables involved make a change complex, and that an effective change must address many of these issues simultaneously. The 7S framework of Mc Kinsey is a value based management model that describes how one can holistically and effectively organize a Company. Together these factors determine the way in which a corporation operates.

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Those seven elements are distinguished in so called hard S’s and soft S’s. The hard

Those seven elements are distinguished in so called hard S’s and soft S’s. The hard elements are feasible and easy to identify. They can be found in strategy statements, corporate plans and organizational charts and other documentations.

The four soft S’s however, are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization. Therefore it is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors are below the surface, they can have a great impact of the hard structure, strategies and systems of the organization.

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Description

The hard S’s

Strategy: actions a company plans in response to or anticipation of changes in its external environment.

Structure: basis for specialization and co-ordination influenced primarily by strategy and by organization size and diversity.

Systems: formal and informal procedures that support the strategy and structure. (Systems are more powerful than they are given credit)

The soft S’s

Style / culture: the culture of the organization, consisting of two components:

Organizational culture: the dominant values and beliefs, and norms, which develop over time and become relatively enduring features of organizational life. Management style: more a matter of what managers do than what they say, how does

a company’s manager spend their time? What are they focusing attention on?

Symbolism- the creation and maintenance (or sometimes deconstruction) of meaning

is a fundamental responsibility of managers.

Staff : the people / human resource management- processes used to develop managers, socialization processes, ways of shaping basic values of management cadre, ways of introducing young recruits to the company, ways of helping to manage the careers of employees.

Skills the distinctive competences-what the company does best, ways of expanding

or shifting competences

Shared values /super ordinate goals: guiding concepts, fundamental ideas around which a business is built –must be simple, usually stated at abstract level, have great meaning inside the organization even though outsiders may not see or understand them.

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Effective organization achieves a fit between these seven elements. This criterion is the origin of the other name of the model: Diagnostic model for organizational effectiveness.

Structure

Structure describes the hierarchy of authority and accountability in an organization. Structure basis for specialization and co-ordination influenced primarily by strategy and by organization size diversify. These relationships are frequently diagrammed in organizational charts. A structure is the formalizing of relationships, roles and responsibilities in order to organize and perform work. The store manager acts as a nodal point between his higher authorities and his subordinates, he keeps track of the inventory and records the sales target achieved by his store. The store manager reports all the day to day activities to the zonal office. The diagrammatic representation of the organization structure at Fashion at big bazaar is given below.

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STORE

MANAGER

ASSISTANT

STORE MANAGER

DEPARTMENT

MANAGER

ASSISTANT

DEPARTMENT MANAGER

TEAM LEADER

SALES PERSONS

Or

PROMOTERS

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Systems A system is defined process, or a set of processes, that links and orders

Systems

A system is defined process, or a set of processes, that links and orders activities to enable work to be done and goals to be achieved. In big bazaar the longevity of the company itself has inbuilt systems of severe competition with each other in achieving their targets in the spheres of actions defined in the aforesaid structure. The departments are taking pride in achieving their set goals and never allow the management to set them on the docks at any cost.

Systems refer to the processes used to manage the organization. The system includes:

Performance management system

Compensation system/ reward system

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Customer satisfaction monitoring system

Innovation system

Financial system/ capital allocation system

Management information system.

Fundamentally hard work, pride are the basics of culture in Big bazaar. The management also observes each worker keenly and assures that the rewards are justified and are hard to attain. This kind of approach extricates the optimum output out of each individual whereas the individual himself dwells in the illusion that he is the greatest person in the organization. This simply boosts the morale of the workers in Big bazaar, every time he works hard to achieve what is expected out of him.

Style

Style expresses the nature of big bazaar group. Style of leadership or relationship is the manner in which an individual is given importance to his or her talents, values, knowledge, judgment and attitude to lead and relate to others.

The organization believes in placing the employees in the right jobs.

The organization believes in giving the employees authority and confidence in decisions-making.

The organization believes in seeing to it that the employees are able to grow to meet both their own needs and the needs of the organization.

Staffing

In Big bazaar the employees are well trained. Over a period of time the leadership qualities are recognized and promotion are made periodically according to seniority and efficiency. The fresh recruits, under training and induction are always told about the behavioral pattern and the ways to achieve the skills to perform well and fit into the groove of promotional avenues in their careers by their seniors. This persuasive leadership is a in built system of administration. The people /human resource management will always have an opportunity to

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interact with the individuals in presence of their supervisors and managers to understand the need of his home front and upkeep of health.

Each incumbent should have a specific academic qualification to match the position he/she is going to hold and also the necessary skill to execute the assignment. Marketing/sales people should possess at least a degree, although a management degree is preferred. They

should necessarily possess good communication skills and flair for sales. For fresher due training will be given and then they will be assigned jobs. The potential will be monitored on

a regular basis and will be given suitable guidance from time to time. Annual increment is given based on the performance.

Skill

In Big bazaar the experienced and the exposure with the higher echelons of managers for over a period of three decades as the business is inherited in the family each workers, is continuously guided to attain efficiency to achieve the required quality in production. They are aware of the sources where the skills can be natured and who the master of particular trade is. The manager should have the managerial skill and they should have the ability to take the right decisions. They should manage the personnel and make them carry out their responsibility. The front end sales personnel are given special training to incorporate skills necessary to understand the buying behavior of customer; they are trained regularly to perform better.

Shared values

Shared values are the identity by which a company is known throughout its business areas. These values must be explicitly stated as both corporate objectives and individuals values. A shared value is an essential characteristic or attribute promoted by the organization to motive the behavior of members of the organization. Big bazaar has a list of values, among which Indianness, leadership, Respect & humility and building long term relationship are targeted

at building long term relationship with customer

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3.1 SWOT analysis

SWOT Analysis

Chapter III

SWOT stands for strengths, weaknesses, opportunities and threats. It is a methodology used to aid strategic planning that gained popularity during the 80's. A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Strengths and weaknesses are internal to an organization. Opportunities and threats originate from outside the organization. A SWOT analysis, usually performed early in the project development process, helps organizations evaluate the environmental factors and internal situation facing a project.

STRENGTHS

State-of-the-art infrastructure of Fashion at big bazaar outlet

The availability of good product line and depth

It has a high brand equity in present retail market

Increased sales with the help of healthy competition between different department

WEAKNESS

The number of walk-ins is moderate

large fixed costs and therefore high cost of operation

No optimum utilization of employees

Unable to meet store opening target

High attrition rate of employee

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OPPORTUNITIES

Increasing population of women

Can expand the business in smaller cities as there is a lot of opportunity

Organized retail is just 4.15percent of total pie of Indian retail

Evolving customer preferences may result in increasing market potential

Growth in income of customers

THREATS

Unorganized retail market of India-low priced product from the unorganized sector

Competitors, global big players planning to foray into market

Retail market already has several existing players

Foreign direct investment cause more problems in future because of that many mergers and acquisition are happening in Indian retail sector

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4.1 Functional departments

CHAPTER IV

o

Human Resource Department.

o

Finance Department.

o

Marketing Department.

o

Logistics Department.

o

Sales Department.

o

Customers Service Department.

o

Administration Department.

4.1.1 Human resource department

The HR department of Fashion at Big Bazaar is very dynamic. Employees are the biggest

strength and asset of any organization and the HR department realizes this very well. This is

very evident from the way the HR department handles all its employees. They take utmost

care to select, train, motivate and retain all the employees. They have continuous

developmental programs for all the employees. There are two shifts for the employees, the

first shift employees arrive at 10:30AM in the morning and leave at 7.30 in the evening,

while the second shift employees report at 12.30 in the afternoon and leave at the time of the

store closing (10pm).

Sources of Recruitment:

The following are the main sources through which Fashion at Big Bazaar recruits its

employees.

Consultancy Services: For top level management, employees are recruited through

private consultants. They are usually appointed as Departmental Managers.

Walk-ins: This is the main source through which Fashion at Big Bazaar recruits its

employees. People seeking job usually themselves approach the HR department for

job vacancy. Employees usually selected from this source are appointed at the entry

level as team members.

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Employee Referrals: This is the other main source through which employees are selected. Candidates who have given their previous employer as referrals are first interviewed and from their previous employer, opinion is taken about their behavior and performance in the job. If they receive a positive opinion from their previous employer they are selected.

Campus Recruitment: Young people bring new ideas and fresh enthusiasm. Therefore Big Bazaar visits some of the reputed educational institutions to hire some of the most talented and promising students as its employees.

Selection Procedure:

The following is the selection procedure that the HR department practices to hire its employees.

Interview: For entry level jobs, the candidates are interviewed by a HR person. They are asked a few basis questions about their education, previous work experience if any, languages known etc. This is done to evaluate the candidate’s ability to communicate freely and also other skills.

Psychometric Tests: For higher and top level jobs, candidates are asked to answer a few questions which basically test their sharpness, analytical ability, ability to handle stress, presence of mind etc. This is done as Managers are required to work under stress all the time and still maintain a cool head to make some vital decisions.

Group Discussion: In campus recruitment students are involved in a Group Discussion, where they will be given a topic on which the group has to deliberate, discuss and arrive at a solution or a decision which is accepted by the whole group. Along with the GD they are also given a written aptitude test. Finally a formal interview will be conducted to assess the overall skills of the student.

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Induction:

New employees selected will be given a 13 day induction and training program. They will be given information about the company’s business, different departments etc. They will be informed of their roles, duties and responsibilities. They will also be informed about the HR policies and rules of the company. The new employees will be on probation for a period of 6 months. After this period the HR period along with the department manager will review the performance of the employee. If the employee’s performance is good and encouraging, the employee’s services will be confirmed.

Compensation & Rewards:

The employees are rewarded suitably with attractive pay packages.

The salary of an employee includes basic pay. HRA, special allowance, PF,ESI, Mediclaim etc. Annual bonus will be given at the time of Diwali. The employees and their dependents are also entitled for medical treatment in recognized hospitals with cashless hospitalization with whom the company has tie-ups. If a hospital is not recognized, the amount spent by the employee will be reimbursed.

Along with these all the employees are given a card known as ‘Employee Discount card’ (EDC) through which they can buy any product at any of the future group stores at a special discount of 20-30 percent.

Performance Appraisal:

The HR department conducts performance appraisal of all the employees annually in the month of April. Based on their performance increments will be given in their pay. In addition to this if an employee achieves or exceeds the target given to along with their team members will be provided with attractive cash and other incentives.

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Training & Development:

Future group has its own training division for all its employees, known as ‘Future Learning & Development Limited’ (FLDL). All the employees are given training for 20 days in a year spread over different periods.

‘Gurukul’ which is a part of FLDL gives training to all the employees on various skills like team work, dedication discipline improving customer service etc to make them more knowledgeable and productive.

‘prarabh’ which is a part of FLDL gives training for new employees. In prarabh, new employees are made familiarized with company’s values, vision, product knowledge etc

Cashier training for non cashiers all employee has to be aware of what are the process in cashiering, how to do billing what are pitfalls in billing etc. Communication training is for improving the communication skills of employees.

4.1.2 Finance Department

Finance is the life blood of any business. The South Zone Head office located at Jayanagar, performs most of the financial functions and therefore the Finance department of the store performs a few basic functions, such as preparing the Store’s ‘Income and Expenditure Statement’ giving full particulars of all items. It also prepares the budget for expenditure at various levels on different items. This department is also responsible for deciding and giving the weekly, monthly and yearly sales targets and the margins for all the departments separately. The Finance department is also responsible for collecting and depositing the cash received in the company’s bank account daily.

4.1.3 Marketing Department

Marketing concept is a customer orientation backed by integrated marketing aimed at generating customer satisfaction as the key to satisfying organizational goals. For a firm in

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order to implement the marketing concept it has to focus its attention on the consumer, ascertain his/her needs, wants and requirements.

Every Brand appeals to individual customers in different ways. Good customer service is the life blood of any business. Good customer service is all about attending to existing and potential customers. Maintaining good relationship with the customers is the key to business success and hence the concept relationship marketing. Relationship marketing looks at customers and clients over a longer term. It takes into account the lifetime value of a customer.

Many experts think it costs anywhere from six to ten times as much, to find a new customer, than to sell to an existing one. With those financial realities in mind, the approach makes some sense; The Marketing department is responsible for marketing of Big Bazaar’s products through different media like TV, radio, newspapers, banners, placards etc. The marketing department has to decide and identify the most effective medium to attract the customers to Big Bazaar thereby increasing the sales. The department has to design creative and attractive advertisements through which the company’s products can be promoted to the customers. The company has to visit different companies and has to enter in tie-ups for all its advertisement campaign. The marketing department also concentrates on what is called as ‘Visual Merchandising’. Visual merchandising is an art by which a retailer makes the store talk to its customers. The colors, signage, lights, look and feel, everything is taken into account. It is very important to figure out what is the story, the picture, the idea that is being sold to the customers.

Another concept that was incorporated from the beginning was that of ‘Category management’ as opposed to the brand merchandising practice that is followed by many retailers. Category management is based on the belief that a customer walks into a store looking for party shirt or a formal trouser, rather than a particular brand. Therefore the store is designed according to the categories like men’s formal wear, women’s western wear or a casual wear, etc. Within the organization too, teams were divided according to the categories that they managed, rather than the brands.

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This department is responsible for the attractive product arrangement in the Store with respect to their nature. The basic function of this department is it divides the Store into some departments based on the nature of the product and also within the department it decides how the products should be arranged keeping in mind the customers taste. It also arranges the products to attract the customers and also ensure easy availability of products.

4.1.4 Logistics Department

Logistics is a very important department of Big Bazaar. It is responsible for procuring the stock of all the products of the different departments. The logistics department receives the goods from the warehouse. The Warehouse of Big Bazaar for the entire South zone is located at Hosakote, Karnataka. The logistics department receives the stock of different goods and verifies the quantity and quality of the goods with the particulars given in the ‘Goods Received Statement’ which it receives along with the stock.

Then it checks for any damage in the stock received. If there is no damage in the stock, after recording it in the ‘Stock Inward Register’ dispatches the goods to the respective department taking the signature of the Departmental Manager. On the other hand if there is a damage in the goods or if the goods do not match the details given in the Goods Received Statement, it enters in the Stock Outward Register and sends it back to the warehouse along with a Goods Returned Note giving full information regarding the reason for returning back the goods and the defect or damage in the goods.

The logistics department receives two truckloads of stock every day. It is the respective departmental Managers who place an order to the Zonal head office through e-mail for stock of goods when they feel that the stock has to be replenished. The logistics departments works in complete coordination with all the other departments to ensure that the stocks are received and maintained properly for the smooth functioning of the store and avoid any inconvenience to the customers.

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Registers maintained by the store

o

Big bazaar outward

o

Vendor schedule register

o

Bar code register

o

Free gin register.

o

Scrap register.

o

Big bazaar vendor security inward register.

o

Big bazaar ware house security inward register

4.1.5

Sales Department

This department is responsible for the collection of sales amount i.e., cash sales. There is a Head Cashier to whom all the cahiers report and submit the total sales amount collected throughout the day by the cashiers. In addition to cash all leading credit and debit cards are accepted at no extra charge. Also Big Bazaar vouchers and Sodexho coupons are also accepted. A cashier at the time of opening his billing counter will be given an opening balance of Rs.1000. The cashier has to ensure that all the offers applicable on respective products are given to the customer in his/ her bill. Also if any free items are given on some purchases, it should be informed to the customer clearly. After the billing is done, the cashier has to pack the products neatly in a plastic cover according to the customer’s needs. At the time of closing the billing counter, the cashier has to give a statement of cash, with all particulars of different denominations of cash, amount collected through credit cards, amount collected in debit cards, amount collected in Sodexho coupons & Big Bazaar vouchers and also amount collected through Credit Notes.

4.1.6 Customer Service Department

As the name suggests this is the separate department which mainly focuses on customer service like if a customer finds difficulty in finding any product, if there are any customer

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complaints, they are also looked into, any customer assistance etc. is also provided. There is also an Exchange Counter where if a customer is dissatisfied or wants to exchange the product he/ she has purchased for any reason , the customers can exchange them within 7 days of their purchase. When a customer brings a product for exchange, the product is first received and checked if it is used or deliberately damaged or tampered with. If it is in an acceptable condition, then the customer is issued a Credit Note for that amount (product’s price). Then customer can purchase any product for that amount or just take back the money by encashing the credit note at a cash counter. If the customer buys a product less than the amount in the credit note, the difference amount will be returned to the customer and on the other hand if a customer buys a product more than the amount in the credit note, the customer will be asked to pay the difference amount. This department is also responsible for announcing all the offers running in the store on different products throughout the day. This department also does gift wrapping for any product if the customer wants it at free of cost. The department also collects customers’ opinion / feedback for continuous improvement in their service. The ultimate aim of this department is to help and satisfy the customer in every possible manner and makes the customers’ experience memorable.

4.1.7 Administration Department

The store administration comes under the store manager. Its functions are store maintenance, housekeeping, security etc. the store maintenance is concerned with the proper running of the store in coordination with all the departments. It also has to ensure proper back –up

power supply in times of power cuts. The housekeeping is concerned with keeping all the departments of the store clean and neat all the time. Covers and other wastes should be properly cleaned and the floor is swept regularly to keep it clean. The security section is concerned with the security of the entire store. Security department keeps a vigilant check on all the people entering and departing at the various entry and exit points in the store. They also maintain all the registers like employees’ attendance register, stock register, visitors’ register etc. They check all customers bill before leaving them out of the store. They ensure orderliness in the store and prevent shrinkage or pilferage of goods to minimise the loss

28

arising out of it. The housekeeping and security are outside agencies employed by the store on a contract basis to take care of the respective functions. The Administration department also has a separate section known as ‘Information Technology’. This department is responsible for the maintenance of all the systems of the store; all billing machines their functioning networking with the master machine etc. If there is any problem with the machine in any department in the store, then this department comes into function. This department integrates all the systems in the store and properly maintains all of them.

29

CHAPTER V

5.1 Profit & Loss Summary

CHAPTER V 5.1 Profit & Loss Summary 5.2 Balance sheet Summary 30

5.2 Balance sheet Summary

CHAPTER V 5.1 Profit & Loss Summary 5.2 Balance sheet Summary 30

30

5.3 Cash Flow Summary

5.3 Cash Flow Summary Sales The Company’s sales and other operating income has increased from Rs.5048.91

Sales The Company’s sales and other operating income has increased from Rs.5048.91 Crores to Rs.6341.70 Crores, an increase of 25.61percent over the previous year. The Company has also recorded same store growth of 6.97percent during the year.

Profit Before Tax Profit before tax of the Company for the year 2008-09 stood at Rs.216.23 Crores as compared to Rs. 195.62 Crores in the previous year, an increase of 10.54percent over the previous year. Interest Interest & Financial charges outflow has increased from Rs.185.27 Crores in 2007-08 to Rs.318.22 Crores in 2008-09. The increase in interest and financial charges is on account of additional borrowing for funding the growth plans of the Company. The interest and financial charges cover during the year under review has fallen down to 2.12 times as

31

compared to 2.51 times in the preceding year. Weighted average cost of borrowing has marginally increased from 11.15percent to 11.37percent on account of higher cost of funds/ borrowings driven by market conditions.

Net Profit Net profit of the Company for the year under review stood at Rs.140.58 Crores as compared to Rs.125.97 Crores in the previous year, an increase of Rs.14.61Crores and 11.60percent over the previous year.

Loans and Advances Loans and advances stood at Rs.1202.56 Crores in 2008-09, an increase of Rs.240.24 Crores over the previous financial year.

Capital employed The capital employed in the business increased by Rs.1084.41 Crores in 2008-09. This is reflected in the liabilities side of the balance sheet through an increase in borrowings by Rs.658.61 Crores and an increase in shareholders funds by Rs.425.80 Crores. Return on capital employed has increased from 14.44percent to 14.73percent.

Surplus management The Company generated a cash profit of Rs.328.88 Crores as compared to Rs.246.64.Crores in the last year, registering the growth of 33.34percent.

32

CHAPTER VI

LEARNING EXPERIENCE

The in-plant training was truly a remarkable experience, in terms of study of the organization as a whole. I am very happy to express my practical experience at Big Bazaar. Those four weeks of training has given me practical knowledge about the working of retail industry. I had a great opportunity to learn things from people in the field; and working under them has given me a confidence to perform any given job in a right manner.

In these four weeks I had the opportunity to work under all the departments and understood what retailing is about, this knowledge helped me to know about customer’s buying behavior and their taste and priority. During my four weeks of training I was lucky to have worked during the special sale named ”saal ke sabse saasthe char din” , during which I learnt about paging and tried my hands on sales.

And also I learned what management makes to attract the customers and their several promotional strategies. Working in each department helped me to understand the application of theoretical concepts that I had learnt; being given a place at the customer service desk was my best job, where I had to handle customer queries during which many customers appreciated my work. Interacting with customers directly helped me understand them and analyze their buying pattern. Among all the departments that I worked in, logistics was a memorable experience, I was taught to understand the functioning of this department. This experience has increased my confidence level and knowledge.

33

PART- B

34

CHAPTER VII

Introduction

7.1. Statement of the problem

The study is conducted to find out the competitors of Fashion at BigBazaar in

Bangalore. As a marketer one should be aware of their competitors and the various

marketing strategies to function effectively in any field.

7.2. Objectives of the study

To understand the functioning of retail industry

To measure the product line and depth

To determine the selling techniques and sales promotion

To analyze the acceptance of brand both private and manufacturers brand sold through retail outlet

To understand customer buying patterns towards apparel

To make suggestions on the problem identified under study

7.3. Scope of the study

The study was conducted on retailers present in Bangalore for understanding the

competitive positioning of Fashion at big bazaar, Bangalore is a cosmopolitan city and has a

mix of stores; both organized and unorganized. Therefore this study can be used to

understand how the basic retail market operates.

7.4. Methodology

A research design is the specification of methods and procedures for acquiring the

information needs to structure or to solve the problems, the type of research used here was

descriptive research.

35

7.4.1.

Research Method

Descriptive research

Descriptive research includes survey and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. The major characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening.

Sources of data collection

The study was conducted using both primary and secondary data. The primary data was collected through survey method using questionnaire as the major tool. Primary data was also collected through interactions with the merchandisers. The secondary data was collected through the internet, print media, company journals, and reports.

Description of population

This included the number of retailers taken into consideration with the use of questionnaire. The retail outlets that deal with only apparels, outlets that sell both in-house and manufacturer brands are considered.

7.4.2. Sample size

The study was conducted among the selected retailers. This included the number of retailers taken into consideration with the use of questionnaire. The retail outlets that deal with only

apparels, outlets that sell both in-house and manufacturer brands are considered. The sample size considered was 100.

7.4.3. Sampling technique

The sampling method used was convenience sampling. This sample consists of retailers who belong to both organized and unorganized sector. Mainly those retailers were selected who had products for men, women and kids. The sample size considered was 100.

36

7.4.4. Data collection Technique (Primary and Secondary)

Questionnaire was the primary tool for data collection from the retailers. Meetings with the external guide were held to gather information. Information was also collected from the company website and using the company’s brochures and annual report.

Design of data collection tool:

Survey method was used to gather primary data from the retailers. The tool used was a questionnaire consisting of 20 questions, where the retailer’s response was utilized for the study. Refer to the questionnaire in the annexure.

7.4.5. Data Analysis Technique The information is analysed using bar charts and interpretations are made from it. Questionnaire is used to collect details of retailers and then charts are used to depict these details; analysis and interpretations are made from these charts.

7.4.6 Limitations

Time limit is the major constraint

This study is applicable to Bangalore region only

Some respondents replied half heartedly and biased answers

Some respondents gave incomplete information

37

ANALYSIS

AND

INTERPRETATION

38

CHAPTER VII ANALYSIS AND INFERENCES

8.1 SIZE OF STORE Table 8.1

 

Less

than

2000 to 5000 sq ft

5000

to

More

than

Total

2000 sq ft

10000 sq ft

10000 sq ft

No.

35

25

20

15

95

respondents

Percentage

37

26

21

16

100

Graph 8.1

SIZE OF STORE 40 30 20 10 SIZE OF STORE 0 LESS THAN 2000-5000 5000-10000
SIZE OF STORE
40
30
20
10
SIZE OF STORE
0
LESS THAN
2000-5000
5000-10000
MORE THAN
2000
10000
Analysis:

From the table and the bar chart it is evident that out of 95 respondents 37 percent of them have store area less than 2000 sq ft. whereas 26 percent have store area between 2000 to 5000 sq ft.

Interpretation:

It can be analysed that 37 percent of stores have area less than 2000 sq ft; 26 percent of stores have area between 2000 to 5000 sq ft. it can be seen that only 16 percent of the stores have area more than 10,000 sq ft.

39

8.2 LOCATIONAL ADVANTAGE

Table 8.2

   

YES

NO

Total

No of

95

0

95

responds

percentage

100

0

100

Graph 8.2

LOCATIONAL ADVANTAGE 150 100 LOCATIONAL 50 ADVANTAGE 0 YES NO Analysis:
LOCATIONAL ADVANTAGE
150
100
LOCATIONAL
50
ADVANTAGE
0
YES
NO
Analysis:

From the table and bar chart it is evident that all the 95 respondents were happy with their

current location

Interpretation:

100 percent of respondents think that their current location is advantageous to their store and

therefore they have no plans to increase their store area or location.

40

8.3 RETAILERS PLAN TO INCREASE STORE AREA

Table 8.3

   

NO

YES

Total

No of

95

0

95

responds

percentage

100

0

100

Graph 8.3

STORE AREA 150 100 50 STORE AREA 0 YES NO Analysis:
STORE AREA
150
100
50
STORE AREA
0
YES
NO
Analysis:

From the table and bar chart it is noted that all the respondents do not have plans to increase

their store area

Interpretation:

100 percent of respondents think that their current location is advantageous to their store and

therefore have no plans of increasing their store area

41

8.4 AVERAGE NUMBER OF WALK-INS

Table 8.4

 

Less than 50

50-100

100-150

150-200

Total

No.

10

50

20

15

95

respondents

Percentage

10

53

21

16

100

Graph 8.4

AVG. WALK-IN 60 50 40 30 AVG. WALK-IN 20 10 0 LESS THAN 50 50-100
AVG. WALK-IN
60
50
40
30
AVG. WALK-IN
20
10
0
LESS THAN 50
50-100
100-150
150-200
Analysis:

From the bar chart and table it is evident that out of 95 respondents 50 retail stores have an average walk-in of 50 to 100.

Interpretation:

Majority of the stores have 50 to 100 footfalls on an average per day, 53 percent of respondents (retailers) have around 50 – 100 foot falls. While 21 percent have footfall between 100-150.

42

8.5 REPEAT PURCHASERS

Table 8.5

 

Less than 10

10-30

More than 30

Total

No.

5

35

55

95

respondents

Percentage

5

37

58

100

Graph 8.5 REPEAT PURCHASERS 80 60 40 REPEAT PURCHASERS 20 0 LESS THAN 10 10
Graph 8.5
REPEAT PURCHASERS
80
60
40
REPEAT PURCHASERS
20
0
LESS THAN 10
10 TO 30
MORE THAN 30

Analysis:

It can be noted from the bar chart and table that out of 95 retailers 55 have more than 30 percent of customers as loyal customers

Interpretation:

It can be interpreted that 58 percent of respondents (retailers) feel that they have more than 30 percent of their customers as repeat purchasers, whereas 37 percent feel that they have 10 to 30 percent of customers as repeat purchasers.

43

8.6 CUSTOMER BUYING PREFERENCE

Table 8.6

 

Price

Brands

Quality

Variety

Others

Total

No.

39

9

14

9

24

95

respondents

Percentage

40

10

15

10

25

100

Graph 8.6

customer buying preference 50 40 30 customer buying 20 preference 10 0 price brands quality
customer buying preference
50
40
30
customer buying
20
preference
10
0
price
brands
quality
variety
others
Analysis:

From the table and bar chart it can be noted that; out of 95 respondents 39 felt that customer buy due to the price. 24 respondents felt that customers’ buying is related to other reasons.

Interpretation:

It can be noted that 40 percent of customers prefer retail outlets which given them at lesser price. Whereas 24 percent feel that other factors are also important.

44

8.7 PRODUCT LINE AND DEPTH

Table 8.7

 

MEN

WOMEN

KIDS

TOTAL

No. of

95

95

95

285

respondents

Percentage

100

100

100

100

Graph 8.7

600 500 400 accessories sports 300 ethnic 200 casuals formals 100 0 men women kids
600
500
400
accessories
sports
300
ethnic
200
casuals
formals
100
0
men
women
kids
Analysis:

From the table and bar chart it can be noted that out of 95 respondents all of them cater to men, women and kids apparel

Interpretation:

It can be interpreted that most of the stores have all the category of apparel and mainly cater to the needs of men and women section

45

8.8 DIFFERENT BRANDS

Table 8.8

       

More than

Total

0-20

20-100

100-200

200

No.

35

20

25

15

95

respondents

Percentage

37

21

26

16

100

Graph 8.8

number of brands 40 30 20 number of brands 10 0 0-20 20-100 100-200 more
number of brands
40
30
20
number of brands
10
0
0-20
20-100
100-200
more than
200
Analysis:

From the bar chart and table given above it can be noted that out of 95 respondents 35 have

less than 20 brands and 25 have between 100-200 brands

Interpretation:

It can be interpreted that 37 percent of the retail outlets mainly in unorganized sector offer

less than 20 brands, whereas 26 percent retail outlets mainly in organized sector offer 100 to

200 brands

46

8.9 CUSTOMER PROFILE

Table 8.9

 

High class

Upper

Middle

Lower

Lower

Total

middle

class

middle

class

No

of

14

27

48

6

0

95

respondents

Percentage

15

29

50

6

0

100

Graph 8.9

CUSTOMER PROFILE 60 50 40 30 20 10 CUSTOMER PROFILE 0 HIGH UPPER MIDDLE LOWER
CUSTOMER PROFILE
60
50
40
30
20
10
CUSTOMER PROFILE
0
HIGH
UPPER
MIDDLE
LOWER
LOWER
CLASS
MIDDLE
CLASS
MIDDLE
CLASS
CLASS
CLASS
Analysis:

From the bar chart and table it is noted that out of 95 respondents 48 have middle class customer as their customer and 27 have upper middle class customers.

Interpretation:

The graph indicates that 50 percent of customers are from the middle class level and 29 percent are from the upper middle class level, whereas 15 percent retailers have high class customers

47

8.10 CUSTOMER MIX

Table 8.10

 

youngsters

couple w/o

couple

youngsters

couples with or w/o children

Total

children

and married

with

couples

children

 

No

of

6

0

13

48

28

95

respondents

Percentage

7

0

14

50

29

100

Graph 8.10

 
customer mix 60 50 40 30 20 10 customer mix 0 youngsters couple couple youngsters
customer mix
60
50
40
30
20
10
customer mix
0
youngsters
couple
couple
youngsters
couples
w/o
with
and
with or
children
children
married
w/o
couples
children
Analysis:

From the table and bar chart it is evident that 48 respondents said that most of their customers are youngsters and married couples, whereas 28 respondents said that their customers are couples with children.

Interpretation:

It can be noted from the graph that 50 percent of customers are youngsters and married couples without children, therefore majority of retailers have youngsters and married couples as their customers.

48

8.11 HIGHEST SELLING BRAND Table 8.11

 

Classic polo

Arrow

Imported

others

Total

No.

of

7

13

52

23

95

respondents

Percentage

8

14

54

24

100

Graph 8.11

 
customer mix 60 50 40 30 customer mix 20 10 0 classic polo arrow imported
customer mix
60
50
40
30
customer mix
20
10
0
classic polo
arrow
imported
others
Analysis:

From the bar chart and table it is evident that out of 95 respondents 52 respondents offer imported apparels. Interpretation:

It can be noted that as the study was also conducted on the unorganized retail sector, 54 percent of customers prefer unbranded imported apparels. Whereas 24 percent retailers said that customers prefer other brands, 14 percent retailers said that customers prefer arrow brand. The majority of customers prefer imported brands of apparel.

49

8.12 DIFFERENT KIND OF SALES PROMOTION Table 8.12

 

Mail

and

Mall

Festive

Nothing

in

Total

sms

to

branding

offer

,

specific

customer

discounts

No.

of

38

2

27

28

95

respondents

Percentage

40

2

28

30

100

Graph 8.12

 
sales promotion 50 40 30 20 sales promotion 10 0 mail and sms mall festive
sales promotion
50
40
30
20
sales promotion
10
0
mail and sms
mall
festive offer
nothing
branding
specific
Analysis:

From the bar chart and table it is evident that out of 95 respondents 38 respondents said that Send sms and mails to customers to inform them about sale, 28 have said that they donot have a specific promotion technique Interpretation:

It can be understood that 40 percent of retailers use sms and mail for sales promotion and that 2 percent of retailers are involved in mall branding

50

8.13 CUSTOMER BUYING PATTERN Table 8.13

 

Stock

Festive offer

Spl. discount

others

Total

clearance

No

of

0

54

41

0

95

respondents

Percentage

0

57

43

0

100

Graph 8.13 CUSTOMER VISITS 60 50 40 30 20 CUSTOMER VISITS 10 0 STOCK FESTIVE
Graph 8.13
CUSTOMER VISITS
60
50
40
30
20
CUSTOMER VISITS
10
0
STOCK
FESTIVE
SPL. DISCOUNT
OTHERS
CLEARENCE
SEASON

Analysis:

From the bar chart and table it is evident that out of 95 respondents 54 respondents said that customers buy during festive season, 41 respondents said that customers buy during special discount offer.

Interpretation:

It can be understood that 57 percent of customers visit stores during festive season and 43 percent of customer visit stores during special discount season. Therefore majority of customers prefer to buy during festive season.

51

8.14 COMPETITORS

Table 8.14

 

Unorganized

Brand

Mega mart

West

Big bazaar

Total

retailers

factory

side

No.

of

29

19

14

4

29

95

respondents

Percentage

30

20

15

5

30

100

Graph 8.14

competitors 35 30 25 20 15 10 competitors 5 0 unorganized brand megamart west side
competitors
35
30
25
20
15
10
competitors
5
0
unorganized
brand
megamart
west side
bigbazaar
factory
Analysis:

From the bar chart and table it is evident that out of 95 respondents 29 think that their competitor is unorganised retailers and big bazaar.

Interpretation:

Majority of retailers feel that the unorganised sector and big bazaar are their competitors, whereas 20 percent felt that brand factory is their competitor.

52

8.15 NUMBER OF SALES EMPLOYEE

Table 8.15

 

Less than 10

10 - 50

50-100

Total

No.

of

26

55

14

95

respondents

Percentage

27

58

15

100

Graph 8.15

number of sales employees 70 60 50 40 30 number of sales employees 20 10
number of sales employees
70
60
50
40
30
number of sales employees
20
10
0
less than 10
10 to 50
50-100
Analysis:

From the table and bar chart it is evident that out of 95 respondents 55 respondents said that they have between 10 to 50 sales employees, 26 respondents said that they have less than 10 sales employees.

Interpretation:

58 percent of stores have between 10 to 50 sales employees and 27 percent have less than 10 sales employee. Majority of retailers have sales employee between 10 to 50.

53

8.16 STRATEGIES TO RETAIN CUSTOMER Table 8.16

 

Loyalty

discounts

Inform

Send

Offer

Total

cards

about sale

greetings

better

quality

No.

of

4

39

14

9

29

95

respondents

Percentage

5

40

15

10

30

100

Graph 8.16

 
strategies to retain customer 50 40 30 20 strategies to retain customer 10 0 loyalty
strategies to retain customer
50
40
30
20
strategies to retain
customer
10
0
loyalty
discounts
inform
send
offer
cards
about sale
greetings
quality
Analysis:

From the table and bar chart it is evident that out of 95 respondents 39 said that they offer discounts to retain customers, whereas 29 respondents said that they offer better quality

Interpretation:

It can be noted that retailers give discounts to attract customers and to retain them. 40 percent said they give discounts while 30 percent said they would offer better quality to retain customers.

54

8.17 AVERAGE VALUE PER BILL

Table 8.17

 

Less than 500

500 - 1000

1000-1500

Total

No.

of

35

20

40

95

respondents

Percentage

37

21

42

100

Graph 8.17

AVG. VALUE PER BILL 50 40 30 20 AVG. VALUE PER BILL 10 0 LESS
AVG. VALUE PER BILL
50
40
30
20
AVG. VALUE PER BILL
10
0
LESS THAN 500
500-1000
1000-1500
Analysis:

From the table and bar chart it is evident that out of 95 respondents 40 have average value per bill in the range of 1000 -1500 rupees. Whereas 35 respondents have less than Rs.500 average bill value. Interpretation:

42 percent stores have average bill value between Rs.1000 to Rs.1500 and 37 percent stores have less than 500. It is interpreted that majority of retailers have bill value between Rs.1000 to Rs.1500.

55

8.18 PRICE RANGE (MEN’S WEAR) Table 8.18(a)

 

Less than 500

500- 1000

1000-1500

More

than

Total

1500

No.

of

8

19

39

29

95

respondents

Percentage

9

20

41

30

100

Graph 8.18(a)

 
price men's wear 50 40 30 20 price men's wear 10 0 LESS THAN 500-1000
price men's wear
50
40
30
20
price men's wear
10
0
LESS THAN
500-1000
1000-1500
more than
500
1500
Analysis:

From the table and bar chart it is evident that out of 95 respondents 39 respondents sold their products in the price range of Rs.1000- Rs.1500

Interpretation:

41 percent stores have apparel in price range between Rs.1000 to Rs.1500 and 30 percent stores have more than 1500. It is interpreted that majority of retailers have products between Rs.1000 to Rs.1500.

56

8.18 PRICE RANGE (WOMEN’S WEAR) Table 8.18(b)

 

Less than 500

500- 1000

1000-1500

More

than

Total

1500

No.

of

8

19

39

29

95

respondents

Percentage

9

20

41

30

100

Graph 8.18(b)

 
price women's wear 50 40 30 20 price women's wear 10 0 LESS THAN 500-1000
price women's wear
50
40
30
20
price women's wear
10
0
LESS THAN
500-1000
1000-1500
more than
500
1500
Analysis:

From the table and bar chart it is evident that out of 95 respondents 39 respondents sold their products in the price range of Rs.1000- Rs.1500

Interpretation:

41 percent stores have apparel in price range between Rs.1000 to Rs.1500 and 30 percent stores have more than 1500. It is interpreted that majority of retailers have products between Rs.1000 to Rs.1500.

57

8.18 PRICE RANGE (KIDS WEAR) Table 8.18(c)

 

Less than 500

500- 1000

1000-1500

More

than

Total

1500

No.

of

29

19

39

8

95

respondents

Percentage

30

20

41

9

100

Graph 8.18(c)

 
price kids wear 50 40 30 20 price kids wear 10 0 LESS THAN 500-1000
price kids wear
50
40
30
20
price kids wear
10
0
LESS THAN
500-1000
1000-1500
more than
500
1500
Analysis:

From the table and bar chart it is evident that out of 95 respondents 39 respondents sold their products in the price range of Rs.1000- Rs.1500

Interpretation:

41 percent stores have apparel in price range between Rs.1000 to Rs.1500 and 30 percent stores have less than 500. It is interpreted that majority of retailers have products between Rs.1000 to Rs.1500.

58

8.19 CUSTOMER CONVERSION AGAINST FOOTFALL Table 8.19

 

Less

than

20 - 40

40 – 60

More

than

Total

20

60

No.

of

0

40

55

0

95

respondents

Percentage

0

42

58

0

100

Graph 8.19

 
CUSTOMER CONVERSION 70 60 50 40 30 20 CUSTOMER CONVERSION 10 0 LESS THAN 20
CUSTOMER CONVERSION
70
60
50
40
30
20
CUSTOMER CONVERSION
10
0
LESS THAN 20
20-40
40-60
MORE THAN
60
Analysis:

From the table and bar chart it is noted that out of 95 respondents 55 respondents have a customer conversion ratio between 40 to 60 percent.

Interpretation:

It can be noted that 58 percent of stores have a conversion rate between 40 -60 percent and 42 percent of stores have conversion rate between 20 – 40 percent. It is seen that majority of the stores have higher footfall to customer conversion ratio.

59

8.20 RATIO OF IN-HOUSE TO MANUFACTURER’S BRAND

Table 8.20

   

YES

NO

Total

No of

41

54

95

responds

percentage

43

57

100

Graph 8.20

availability of in-house brands 60 40 20 availability of in- house brands 0 YES NO
availability of in-house brands
60
40
20
availability of in-
house brands
0
YES
NO
Analysis:

From the table and bar chart it is evident that out of 95 respondents 54 said that they do not

have in-house brands whereas 41 replied that they have in-house brands.

Interpretation:

57 percent of retailers say that they don’t have any in-house brands available; majority

retailers are from the unorganized sector and therefore do not have in-house brands.

60

9.1 Findings

CHAPTER IX

The studies conducted among the retailers have brought out many interesting aspects. The following are some of the important aspects found through the study.

i. It is found that most of the retailers prefer their current location and are not interested in expanding or changing their location. This implies that the retail outlet has good business and a good and competitive environment to function.

ii. It is found that on an average majority of retail stores have foot falls between 50-100, and the average conversion ratio is between 40-60 percent. This implies an average of 50 customers purchasing apparels in various stores.

iii. The analysis has also given information on the type of customer profile, middle class is on spending spree and therefore they are the social class that purchases the most. This consists mainly of youngsters and married couples.

iv. While most stores have more than 30 percent of customers as repeat purchasers, it is also found that their buying is affected by price, brand or variety. And most stores offer between 50-100 different brands of apparel.

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v. It was noted that most stores offer apparel to men, women and kids ,but majority of the stores had depth in assortment only in men’s section. It was noted that imported brands were the once sold the most.

vi. Another important finding is that customers generally purchase during festive season and special discount offers. Retailers try to retain their customers by giving them discounts and by giving better quality.

vii. It was found that the average value per bill was between Rs.1000 to Rs.1500 and that the customer conversion ratio was around 40-60 percent. While most stores did not offer in-house brands.

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9.2 Suggestions and Recommendations

It is noted that all the retail outlets under study considered their location to be advantageous. This implies that any business area can be advantageous to a store. The store should try to increase its footfall and try to offer better service so that customer can become repeat purchasers.

It can be noted that majority of retailers have a good product assortment and that the unorganized stores attract customers due to their imported products and price. The store can offer better price and variety and try to stock products in depth and have all product line. The middle class is the target segment now as they have high disposable money.

Most stores find their neighboring stores as competitors, while few consider organized stores as their competitors like brand factory, big bazaar, mega mart. Customers are becoming brand conscious and therefore the store can offer more brands. Few stores have in-house brands, but their conversion ratio is around 40 percent. Different sales promotion techniques should be used to attract customers.

It was found that most stores have an average bill value of Rs.1000 to Rs.1500 and the store must try to achieve this target and make better sales. Retail outlets in organized category have a better value on bill. It is also noted that number of sales employee should be increased to increase sales.

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9.3 Conclusion

The objectives of the study were achieved, the different types of sales promotion were analyzed and how they help retailers was understood. The target segment was found to be the middle class segment and the customer buying pattern was determined to be based on quality and price. Retailers have good product assortment and they stock in both branded and imported apparels, the sale was found to be high for imported apparels and the main reason was reduced price. The store can achieve better sales by offering better quality and price to customers.

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APPENDICES

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Name of retail outlet:

Name of the person:

Location:

Questionnaire

1. What is the size of your store…………………

2. Do you think that this location is advantageous to your store?

Yes

think that this location is advantageous to your store? Yes No 3.Do you have any plans

No

that this location is advantageous to your store? Yes No 3.Do you have any plans of

3.Do you have any plans of increasing your store area? If yes please mention the reason……………………………………… ………………………………………………… ………………………………………………………………………………………………… ……

4. On an average how many walk-ins do you have per day?

…………………………………………………

5. What percentage of your customers are repeat purchasers?

Less than 10percent

percentage of your customers are repeat purchasers? Less than 10percent More than10 – less than 30

More than10 – less than 30 %

More than 30%

percentage of your customers are repeat purchasers? Less than 10percent More than10 – less than 30
percentage of your customers are repeat purchasers? Less than 10percent More than10 – less than 30

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6. Customer buying preference based on

Price

Brand

Variety

Quality

Others

7. What are the different product lines that you have? (tick √ in the relevant box)

 

Formals

Casuals

Ethnic

Sports

Accessories

MEN

         

WOMEN

         

KIDS

         

8. Mention the number of different brands that you offer?

……………………………………………

9. What is your customer profile?

High class

High class

Upper middle class

Upper middle class

Middle class

Middle class

Lower middle class

Lower middle class

Lower class

Lower class

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10.

What is your customer mix?

 

Youngsters

Youngsters

Couples w/o children

Couples w/o children

Couples with children

Couples with children

Older couples

Older couples

Others

Others

11.

Which is the highest selling brand in your store?

 

………………………………………………….

12.

What are the different kinds of sales promotion that you undertake?

(Other than print ads)

 
 

…………………………………………………………………………

 

13. When customers mostly visit showroom?

 
 

a) During stock clearance

  a) During stock clearance c) During spl. discount offer

c) During spl. discount offer

  a) During stock clearance c) During spl. discount offer

b) During festive offer

d) Any Other (Please Specify)…………………

14.

Whom do you consider your competitor and the reason, in order?

 
 

Name of the competitor

 

Reason

15.

How many number of sales employees do you have?

 

…………………………………

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16. How do you retain your customers and offer service?

Loyalty cards

Discounts

Inform them about discount sale

Offer better quality

Send them greetings on special occasions

17. What is your average value per bill?

……………………………………….

18. What is the price range of each product line?

 

Formals

Casuals

ethnic

MEN

     

WOMEN

     

KIDS

     

19. What is your average customer purchase against footfall percentage?

……………………………………………………….

20. Do you have any in-house brand, if yes what is the ratio of sales of in-house to

manufacturer’s brands?

……………………………………………………………………………………………

Place:

Date:

Signature:

Thank you for your time

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ANNEXURES

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WEEKLY PROGRESS REPORT

SUMMER PROJECT – (05MBA48)

Name of the organization: Fashion at Big Bazaar

Area of specialization: Marketing

Name of the student: Suganya V

DATE

WORK DONE

REMARKS

Week I

1/1/2010-9/1/2010

Got the confirmation letter, Introduction to

employees and organization. worked in

administration section

Week II

11/1/2010-16/1/2010

Worked in logistics section, Worked in customer

care desk section

Week III

18/1/2010-23/1/2010

Worked in customer care desk section,

Worked as sales executive

Week IV

25/1/2010-30/1/2010

Learnt paging and worked in Human resource

department

Week V

1/2/2010-6/1/2010

Was given the research topic, Preparation of

questionnaire

Week VI

8/2/2010-13/2/2010

Analyzed the brands and details of store, Survey

done in marathahalli and Whitefield area

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Week VII

15/2/2010-20/2/2010

Survey done in Jayanagar and Basaveshvaranagar

Week VIII

22/2/2010-27/2/2010

Survey done in old Airport Rd, New Thippasandra HAL area

Week IX

1/3/2010-6/3/2010

Survey done in Koramangala, Indiranagar Preparation of report

Week X

8/3/2010-10/3/2010

Preparation of Report

Signature of the student

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Signature of external guide

Books

Bibliography

James A T Stoner et.al. Management, (6th ed; New Delhi: Prentice Hall of India Pvt. Ltd, 1997)Ch.II, p.584.

Kothari C R, Research Methodology: Methods and Techniques, (2nd ed; New Delhi:

Viswa Prakasham, 1996) Ch.I, pp.30-38.

Chopra Sunil: Supply chain management: strategy, planning and operation(3 rd ed; Prentice Hall of India Pvt. Ltd, 1997)Ch.I, pp.20-31.

Panda Tapan: Retail management (3 rd ed; oxford publications,2001)Ch II p.25-40

Journal

“customerization:getting to the customer” The ICFAI Journal of Marketing management Pg:63-71; Author: Jitendra kumar Das

“Retail sectors functioning” The ICFAI Journal of Marketing management Pg:23-25; Author: Ramesh sinha

Website

Buyer Behavior: http://buyerbehaviour.blogspot.com/2008/01/big-bazaar-freedom- sale-change-in.html/

Indian Retail Scenario: http://www.slideshare.net/theRedIndian/india-retail-2008- big-bazaar-scenario/

www.pantaloons.in

http://www.wikipedia.com/retailsector

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