A STUDY REPORT ON

VALUATION OF STOCK
TOWARDS
MORE DISTRIBUTION CENTRE IN PENDURTHI
(Through the analysis of VALUATION OF STOCK)
A project report submitted to ANDHRA UNIVERSITY in partial fulfillment of the
requirements for the award of the degree of
BACHELOR OF BUSINESS MANAGEMENT
Submitted by
T.YASHODA
Redg.no- 113127307021
UNDER THE
GUIDENCE OF
POPITHA MOHARANA
MBA (FINANACE & H.R)
H.O.D OF MANAGEMENT

ADITYA DEGREE COLLEGE (PG COURSES)

(Affiliated to Andhra University)
Gopalapatnam,
Visakhapatnam 530027

CONTENTS

CHAPTER-1

INTRODUCTION
NEED FOR THE STUDY
OBJECTIVES
METHODOLOGY
LIMITATIONS
CHAPTER-2

INDUSTRY PROFILE
COMPANY PROFILE

CHAPTER -3
MARKETING STRATEGY
SWOT ANALYSIS
THEORITICAL FRAME WORK
CHAPTER -4

TABULATION AND ANALYSIS

CHAPTER -5

SUMMARY
FINDING
SUGGESTIONS
BIBLOGRAPHY

ANNEXTURE

CHAPTER-1

Introduction

As there is frequent changes in the financial structures of every firm according to

todays market scenario. It also may be due to development of the firm. Income level
of the people has changed; life styles and social class of people have completelymark.
New generation people are no more dependent on hyper market and far off
departmental stores. Today we can see a new era in market with the opening up of
many departmental stores, hyper market, shoppers stop, malls, branded retail outlets
and specialty stores. In todays world shopping is not any more tiresome work rather
its a pleasant outing phenomenon now.
My study is based on a survey done on customers of a hypermarket named big bazaar.
Big bazaar is a new type of market which came into existence in India since 1994. It is
a type of market where various kinds of products are available under one roof. My
study is on determining the customers buying behavior of customers in big bazaar and

the satisfaction level of customers in big bazaar. My study will find out the current
status of big bazaa and determine where it stands in the current market.

NEED FOR THE STUDY

The present study is undertaken to understand the impact of valuation of stock in

distribution centre of more. The study will be helpful in finding out the profile,stock
movement, financial valuation of stock and managing level of employees in
distribution centre of more in pendurthi who supply the stock to all the more outlets
in viashakapatnam. This study shows the process of valuation of stock done and
also about the process of reaching the stock to the 32 outlets of more in city of
vishakapatnam.

OBJECTIVES OF THE STUDY

The research objectives of this project are :

a. To find out the pocess of valuation of stock in the distribution

centre of more aditya birla.
b.To identify out the reasons for development of the financial
position of the firm.
c.To develop an explanatory theory of firm achieving an
acceptable profits and long term stability.
d. To view the capacity of outflow and inflow of stock for supply of
stores .

Methodology
The data was collected from the inward incharge Mr. pavan kumar who provided
information. Thid study is partially qualitative and quantitative.
Area of study:

The study is exclusively done in the area of finance. It is the process of

acquiring information of financial level of managing the stock of goods in the
distribution centre of a firm. By taking the information from the employees of all
categories.

Sample Siz :Manager, inward incharge ,employees.

Data Collection: Data is collected from various employees through personal interaction.
Specific questionnaire is prepared for collecting data. Data is collected with mere
interaction and formal discussion with different respondents. Some other relevant
information collected through secondary data
Tools of Analysis: - The proper process of taking information from employees
about the techniques of valuation of stock and nature of expenditure is carried out
by personally interacting with all the employees in the more distribution centre.

Limitations of study
Certain limitations

faced in the research study due to constraints of the time,

money and human efforts, the present study is also not free from certain limitation,
which were unavoidable.

Although all effort were taken to make the result of the work as accurate as possible
as survey but the survey have following constraints.
I- Some employees were not willing to give appointment due to their busy schedule.
II- Due to very large size of the work only a selected employees could be contacted.
III- Due to time constraint and other imperative work load during the period it
could not be made possible to explore more area of concern pertaining to study.
IV- It also impossible for company to provide information that is confidential.
V-Due to fast pace of work

some employees were not able to do justification to the questions.

VI-Personal biases might have come while answer the questions.
VII-As per company rule many information was disclosed as the manager are busy
in their daily schedule. It is not possible for us to spend more time in interaction
with them.
VIII- As there is a norm of not revealing the financial data only certain information
is provided by the employees.

CHAPTER-2

INDUSTRY PROFILE
The contracting global economy, advances in technology, a proliferationin the
number of shopping channels, and an increasingly well-informed and mobile
consumer base are altering the means, modes, and mannerin which consumers shop.
HISTORIES AND EVOLUTION OF RETAIL INDUSTRY:

India retail industry is the largest industry in India, with an employment of around
8% and contributing to over 10% of the country's GDP. Retail industry in India is
expected to rise 25% yearly being driven by strong income growth, changing
lifestyles, and favourable demographic patterns.
It is expected that by 2016 modern retail industry in India will be worth US$ 175200 billion. India retail industry is one of the fastest growing industries with revenue
expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly.
A further increase of 7-8% is expected in the industry of retail in India by growth in
consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It
has further been predicted that the retailing industry in India will amount to US$
22.5 billion by 2015 from the current size of US$ 18.5 billion. Shopping in India has
witnessed a revolution with the change in the consumer buying behaviour 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
centres, and sprawling complexes which offer food, shopping, and entertainment all
under the same roof.
India retail industry is expanding itself most aggressively; as a result a great demand
for real estate is being created. Indian retailers preferred means of expansion is to
expand to other regions and to increase the number of their outlets in a city. It is
expected that by 2015, India may have 600 new shopping centres.
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.

India retail industry is progressing well and for this to continue retailers as well as
the Indian government will have to make a combined effort.
RETAIL IN INDIA: HISTORICAL PERSPECTIVE
Retailing provides a crucial link between producers and consumers in a modern
market economy. The performance of this sector has a strong influence on consumer

welfare. Retailers not only provide consumers with a wide variety of products, but
also a wide range of complementary services (such as assurance of product
delivery), which can lead to more informed choice and greater convenience in
shopping. They also provide producers with much needed information on consumers
demand pattern. Productivity and efficiency in retail operations lowers price level
and reduce distortions in the price structure. Through backward and forward
linkage, performance of retailing services affects the performance of interlinked
sectors such as tourism, recreational and cultural services, manufacturing of
consumers goods agro-good producing industries etc.
The present paper is an attempt to explore retailing in India in Historical
perspective. Retailing is the largest private industry in India and second largest
employer after agriculture. The sector contributes to around 10 per cent of GDP and
6-7 per cent of employment. With over 15 million retail outlets, India has the
highest retail outlet density in the world. This sector witnessed significant
development in the past 15 years from small-unorganized family-owned retail
formats to organized retailing. Liberalization of the economy, rise in per capita
income and growing consumerism has encourage larger business houses and
manufactures to set up retail formats; real estate companies and venture capitalist
are investing in retail infrastructure. Many foreign retailers have also entered the
market through different routes such as wholesale cash-and-carry, local
manufacturing, franchising, test marketing, etc. With the growth in organized
retailing, unorganized retailers are fast changing their business models and
implementing new technologies and modern accounting practices to face
competition. The retailing sector in India has undergone significant transformation
in the past 10 years. Traditionally, Indian retail sector has been characterized by the
presence of a large number of small-unorganized retailers. However, in the past
decade there has been development of organized retailing, which has encouraged
large private sector player to invest in this sector. Many foreign players have also
entered India through different routes such as test marketing, franchising, and
wholesale cash-and-carry operation. With high GDP growth, increased consumerism
and liberalization of the manufacturing sector, India is being portrayed as an

attractive destination for foreign direct investment (FDI) in retailing. At present this
is one of the few sectors, which has 51% FDI in multi-brand retail sector & 100%
FDI in single brand. On one hand farmers will benefit from it but on the other hand
small traders feel they will not be able to withstand the competition. In India, the
retail sector is the 2

nd

largest employers after agriculture. In fact due to wide

network of retailing in India it is known as nation of shopkeepers. There are about

12 millions retail outlet spread across India and the country has the highest density
of shops in the world i.e. one shop for every 20 to 25 families or 11 retail shop for
every 1000 persons. While, it is only four shops per 1000 in USA. Retailing in India
provides employment to about 7% of total work force in the country and contributes
about 14% to GDP of India. However the retailing sector in India is highly
fragmented and consists predominantly of small, independent and owner managed
shop.
The Global Retail Development Index developed by A.T Kearney has ranked India
first among the top 30 emerging markets in the world. A look at the landscape of
most of the cities in India shows the rapid phase of change. This changes in
reflection of the changes in the Indian consumers his lifestyle and his habits.
Goldman Sachs has estimated that the Indian economic growth could actually
exceed that of China by year 2015. It is believed that the country has the potential to
deliver the fast growth over the next 50 years. It took 10 years for the first 2500
organized retail stores to emerge in India; the next 2500 could easily get added in
the next 5 years. Formats new to the India market place have emerged rapidly over
the past ten years. There is little doubt that retail in India is revelling up for an
exciting phase ahead.

EVOLUTION OF RETAIL IN INDIA:

The origins of retail are old as trade itself. Barter was the oldest form of trade. For
centuries, most merchandise was sold in market place or by peddlers. Medieval
markets were dependent on local sources for supplies of perishable food because

Journey was far too slow to allow for long distance transportation. However,
customer did travel considerable distance for specialty items. The peddler, who
provided people with the basic goods and necessities that they could not be self
sufficient in, followed one of the earliest forms of retail trade. Even in prehistoric
time, the peddler travelled long distances to bring products to locations, which were
in short supply. They could be termed as early entrepreneurs who saw the
opportunity in serving the needs of the consumers at a profit.Later retailers opened
small shops, stocking them with such produce. As towns and cities grew, these retail
stores began stocking a mix of convenience merchandise, enabling the formation of
high-street bazaars that become the hub retail activity in every city.
TRADITIONAL RETAIL FORMAT IN INDIA:
It is important that for centuries now, India has been operating within her unique
concept of retailing. Retailing in its initial period was witnessed at the weekly Haats
or Gathering in a market place where vendors put on displays their produce. Off
course this practice is still prevalent in many towns and cities in India: then the
market saw the emergence of the Local banias and his neighbourhoodKirana shop.
In fact these were the common local mummy-daddy or multipurpose departmental
store located in the residential areas such shops stocked goods and multipurpose
utility and were with the vision of providing convenience at the doorstep of the
consumer.
While barter would be considered to be the oldest form of retail trade, since
Independence, retail in India has evolved to support the unique needs of our country,
given its size and complexity. Haats, mandis and melas have been a part of India
landscape. They will continue to be present in most part of the country and form an
essential part of life and trade in various areas.
EMERGENCE OF ORGANISED RETAIL IN INDIA:
The emergence of first phase of organized retailing in India can be traced back when
a shopping centre into existence in the year 1869 with Mumbai Crawford Market.
After that, in the year 1874 Hogg market, popularly and better known as new market

came into existence in Kolkata. This shopping centre was designed by an East
Indian Railways Co. Architect R.R. Banya and was named after the then municipal
commissioner of Kolkata, Sir Stuart Hogg. Earlier the Hogg market even had a
garden with a beautiful fountain adding to its ambience and benches too for tired
shoppers.
Today, the New Market continues to be a premier shopping area in Kolkata despite a
part of it being incinerated in late 1985. Its redbrick Gothic clock tower today bears
testimony to the past Grandeur of this first shopping centre in India. Today from
linen to cakes and fruits to fishes everything is available at the New Market Atta
reasonable price and this has made the New Market sustain its popularity among the
metro customers of Kolkata. The tenant mix of this first shopping centre is unique as
it has a large number of 2000 stalls, which are organized in an order of merchandize.
There are rows of stalls dealing with one particular line of Goods.
A retail researcher by name Christine Furedy in 70s has observed in her article in the
th
capital on 24 Dec. 1979 tracing the emergence of the New Market, thus The most
complex retail business of late nineteenth century Kolkata, establishment which
were to dominate the modern retail sector, were the departmental stores. Although
everyone has closed its doors, many Calcuttians still remember the name or
recognize their converted, subdivided building: Francis, Harrison and Hathaway;
Hall and Anderson; the Army and Navy stores; white a way; laid low and Co. In
their scope and outreach these shops rivalled those to be found in cities of the same
size in Britain, Europe or the United States.
The second phase of development of organized retailing can be traced back to the
year 1931 when Bata shoe Co. took lead in opening its chain stores at various cities
& towns. DCM and Raymonds followed it extensively.
The earliest seed of the so-called specialty malls can be traced to shopkeepers who
stocked goods of the same product category in a particular locality. If one were to go
back to the early 80s, it can be said that organized retail, to a great extent was visible
in the functioning of stores such as Akbar Ally in Mumbai and Nilgiris and

Spencers in Chennai. These stores later evolved into multi-chain outlet and were
the first to bring on the onset of organized retail in India.
The evolution of PDS (Public Distribution System) of Grains in India having its
origin in the rationing system introduced by the British during World War II was
example of single largest retail chain in the country the canteen stores Department
and the Post Offices in India are also among the largest network of outlets in the
country, reaching populations across state boundaries. The Khadi and Village
Industries (KVIC) was set during post Independence and today it has more than
7000 stores across the country.
While Independence retail stores like Akbar Ally's, Viveks and Nallis have existed
in India for a long time, Reliance, Garden Silk Mills, Madhura Garments, Arvind
Mills etc. have set up show rooms for retail sale of their branded products.
At present India is rapidly evolving in to an existing and Competitive market place
with potential target consumers in both the rich and middle class segments.
Manufacturer owned and retail chain stores are springing up in urban area to market
consumer goods in a style similar to that of mall in more affluent countries. Even
though big retail chains like Crossroad, Saga and Shoppers stop are concentrating
on the upper segment and selling products at higher prices, some like A.V Birla
Retails

More, RPGs Spencers, Food World and Big Bazaars are tapping the huge

middle class population. During the past two years, there has been tremendous
amount of Interest in the Indian retail trade from global majors as well as over the
years, International brands like McDonalds, Swarovski, Lacoste, Dominos, Pepsi,
Benetton among a host of others have come in and thrived in India.
RETAIL FORMATS IN INDIA:
In India, at present, retailing activities are being carried through wide varieties of

formats ranging from pheriwala in streets to Modernized Malls in Metro cities.

However from study point of view these formats can easily classified into following
three Groups.

EM ER
G IN G

EST A B
L IS H E
D

TR A D I
TI O N A
L
HATS

Formats of Retailing

A) TRADITIONAL FORMATS :
1. ITINERANT SALESMAN: It is a type of direct selling, which stated
centuries ago. It is an example of door-to-door office-to-office delivery or
marketing. Morning milk man and sabjiwala are the most famous examples of
this category. This type of format has been very popular throughout India in

coping with daily needs. In rural areas this sales man use cycles, for carrying
their stock for display of Goods.

2. HAATS :Haats are the unique examples of traditional malls in India. Just like
Malls, different sellers sells different types of items along with the sale of
vegetables, fruits, sweets, chart etc. Some entertainment arrangements are also
made in available in these haats. There was tendency in rural as well as semiurban area in India for visiting these haats with family members as a part of
picnic cum purchasing programs. In fact Haats are periodic markets (generally
organized once in week or fortnight at a particular place & time) that form a
major part of the rural market system in India. In other words the term Haats
refers to locations, which witness a public gathering of buyers and sellers at
fixed time, and fixed locations. On account of organization of these haats these
are called with the name of a particular day also such as Mangal Bazaar, Budh
Bazaar etc. According to one estimate about 42,000 haats are organized in our
country.
3. MELAS :Melas are fairs & they can range from commodities fairs to
religious fairs. Virtually every state in India has meals for which it is known. It is
estimated that more than 2500 melas are held annually in the country. It is also
estimated that the average outlets in every Mela would be more than 800 & the
average sale per mela would be Rs. 143 lakhs. Nauchandi is an example of
important annual mela in Meerut, at many places such as Gwalior, Aligarh,
Bulendshahr annual exhibitions are organized. At government level, a number of
fairs such as book fair, trade fair and specific commodity fair are organized by
Trade Fair Authority of India.
4. MANDIS :Mandis are markets set up & regulated by state government for the
sale of agricultural produce directly from farmers. At present the number of such
markets stand at 7521. These mandis are playing significant role in providing
better prices to farmers.

B) ESTABLISHED FORMATS :
1.KIOSKS : A kiosk is a small freestanding pavilion or stall often open on one or
more sides and used for information sales and promotion. Generally a kiosks is
placed in a shopping centre, a bus stand or near by the prospective customers.
2. KIRANA SHOP & INDEPENDENT STORES :This is one of the important &
popular established formats of retailing in India. These shops are usually shops with
a very small area, stocking a limited range of products, varying from region to
region according to the need of the clientele or the whims of the owners.
These are low cost structures mostly owner operated, have reliable real estate
&labours cost. Consumer familiarity that runs from generation to generation is one
big advantage enjoyed by such Kirana Shops.
It is worth mentioning that India retail sector has traditionally been structured
around 3 small retail entities the grocer, the general store and the chemist. The
grocer stocks non-packaged, unbranded/Generic commodities such as rice, floor,
pulses, spices, salt etc. for sale. The Grocery Stores or Kirana shops located in
neighbour-hood centres also sale branded & packaged fast moving consumer goods.
The General store stocks only branded & packaged FMCGs. These are generally
located prominently in the neighbourhoodcentre& residential areas. Chemists are a
part of dispensing pharmaceutical. Products, sales branded FMCGs such as personal
Carrier Products & health food. Alongside the three retail outfit, exist a large
segment of smaller, unorganized players - paan, beedi stores which stock products in
sachets, batteries, confectionary & soaps, bakery & confectioners, fruit juice/tea
salts, ice-cream parlour, electrical, furniture & hardware stores.
Kirana shops & independent small stores provide a wide variety of facilities to their
customers, such as telephone order credit facilities, home delivery, customization on
account of offerings & packaging & specific products produced on order in case of
stock out. More importantly theyre available next door to offer personalized
service. In this way their able to develop a strong relationship with their customer,

who over a period of time, become extremely loyal.

3. SUPER MARKETS/HYPER MARKETS:These are large (90,000 square feet
plus) self-service stores selling a variety of products at discounted price. The best
practice chains in this format are Carrefour (France) Wal-Mart (US). Supermarkets
tend to be located in key residential markets and malls and offer competitive prices
due to economics of scale in logistics and purchasing. The format is new to India
and some important players in this field are Food World, Big Bazaar. Indian Super
Market are smaller than others countries.
4. DEPARTMENTAL STORES :These large stores primarily sell non-food items
such as apparel, footwear household products. They stock multiple brands across
product categories, though some of them focus as their own store labels.
Departmental stores are found on high streets and as anchor shops of shopping
malls. Some department stores chains are opened in India e.g. Shoppers stop,
Westside and Ebony.
5. SPECIALTY CHAINS: These outlets focus on a particular brand as product
category, usually non-food items and are located on high streets and in shopping
malls. The most famous specialty chains include Gap, Levis and Benetton.
6. DISCOUNT STORE :It is a general merchandise retailer that offers a wide
variety of merchandises limited service and low prices. Subhiksha and Margin free
markets are operating in this format in India.
7. WHOLESALE CASH AND CARRY :The wholesale cash and carry operation
is defined as any trading outlets where goods are sold at the wholesale rate for
retailers and business to buy. The transactions are only for the business purpose and
not for personal consumption. Metro, cash and carry, Gmbh of Germany entered the
India in this format.
8. CONVENIENCE STORE :It is a retail business of less than 5,000 square feet
with primary emphasis on providing the public a convenient location to quickly
purchase an assortment of food, gasoline and other consumable products. They are

usually open seven days a week for extended hours

C) CO-OPERATIVE SHOPS/GOVT. ORGANISATION :
Cooperative stores in India are the result of the cooperative movement that can be
traced to the Pre-independence period. They emerged as a reaction to the feudal
system & attempted to place the fruit of labour in the hands of the producer himself
to make him relevant. The Cooperative movement was strengthened after
independent in Western India?
A consumer cooperative is a retail institution owned by member customers. A
consumer cooperative is generally formed either because of dissatisfied consumers
who's needs are not fulfilled by the existing retailers or on account of initiative by
enlightened consumer.
D) PDS/FAIR PRICE SHOP :
The PDS or Public Distribution System would easily emerge as the single largest
retail chain existing in the country. The evolution of PDS of Grains in India has its
origin in the rationing system introduce by the British during World War II. The
system was started in 1939 in Bombay & Subsequently extended to other cities and
towns. By the year 1946, as many as 771 cities/towns were covered. The system was
abolished post war, however, on at attaining Independence India was forced to
reintroduce it in 1950 in the face of renewed inflationary pressures in the economy.
The system, however, continued to remain an essentially urban oriented activity. In
fact, towards the end of the First 5-year plan (1956) the system was closing its
relevance due to comfortable food grains availability. At this point in time, PDS was
reintroduced and other essential commodities like sugar, cooking coal & kerosene
oil were added to the commodity basket of PDS. There was also a rapid increase in
the Ration shop and their number went up from 18000 in 1957 to 51000 in 1961.
Thus, by the end of the second 5 year Plan, PDS had changed from the typical
rationing system to a social safety system, making available food grains at a 'fairprice' so that access of household to food grain could be improved & such

distribution could keep a check on the speculative tendencies in the market. The
PDS has been functioning for more than 4 decades now and its greatest achievement
lies in preventing famines in India.
E) CONVENIENCE SHOPS :
These shops are relatively small shops that are located near residential areas, are
open for long house & 7 days a week and offer a limited line of convenience
products like beverages, ready to eat snack (Pastry, Sandwiches) bread, eggs, milk,
confectionary etc. These shops have been quite common throughout the country.
F) SPECIALTY SHOPS :
A Specialty shop is a retail shop displaying merchandise, which has narrow product
line, specializing in a particular type of merchandise & offering, specialized service
to customers. Generally these shops concentrate on a specific item such as Appeal,
Jewellery, Fabric, Sporting Goods, and Furniture etc. Specialty shop can be sub
classified by the degree of narrowness in their product line. E.g. a clothing stock
would be a single line shop, a mens clothing shop would be limited time shop & a
mens shirt store would be a super specialty shop. Such shop have always played
significant role in relating of consumer durables throughout the country but
particularly in urban & sub-urban areas.
RURAL MALLS HAVE MADE A BEGINNING:
Rural retailing is an important segment of the retail industry and it is only lately that
companies are making investments in this area. ITC launched ChaupalSagar, the
first rural mall, with a variety of products and offering farmers tools to adapt to new
technologies and methods of farming and selling their produce. The DCM Sriram
Group has opened a Hariyali Bazaar, offering farm-related services and plans to
increase their product line to a full-fledged grocery store. Godrej Group has opened
Adhaar, a one-stop shop for farmers, focusing on farm related products. Escorts and
Tata Chemicals are also in the process of setting up agri-stores targeting the rural
market

HYPERMARKETS:
In commerce, a hypermarket is a superstore combining a supermarket and a
department store. The result is an expansive retail facility carrying a wide range of
products under one roof, including full groceries lines and general merchandise. In
theory, hypermarkets allow customers to satisfy all their routine shopping needs in
one trip.
It is often a very large establishment; hypermarkets offer a large variety of products
such as appliances, clothing and groceries.
The hypermarket appeared first in France at the beginning of the sixties as a
synthesis of the main features of modern retailing. But in France, the decline of this
retail format seems to have begun and Spain could follow quickly. In the same time,
the German hard-discounters continue their invasion. According to the retail life
cycle theory, this paper displays curves to demonstrate the evolution of this retail
concept in France, Spain and Italy and tries to evoke some managerial and strategic
issues. The retail wheel seems to go on turning!
HISTORY OF HYPERMARKET:
At the end of the 1950's and at the beginning of the 1960's, many French retailers
came to United States to listen to Bernardo Trujillo, director of the International
Management Systems Seminars. One of his arguments during his seminars on
modern retailing was: No parking, no business. Most of these French retailers
came back to France very enthusiastic. A new concept then was launched in the
French market: the hypermarket.
The hypermarket was defined as a retail concept with a floor space over 2,500 m 2.
Every kind of products was supposed to be sold through self-service techniques
even though there are today exceptions. Despite several bank support refusals, the
families Fournier, Badin, and Defforey, native from Switzerland, decided to open
the first hypermarket. It was in the Southern Paris in 1963 under the name
Carrefour. Its size was exactly 2,500 m2. This first hypermarket was immediately a

big success.
Ten years after, there were more than 250 hypermarkets in France. Today, there are
more than 1,300 hypermarkets in this country. And the group Carrefour, composed
of several chains, is now the second world largest retailer after Wal-Mart. This
public company has more than 10,000 stores in the world today located in more than
30 countries. Carrefourbegan its internationalization process very early in the
1970's. The group is present of course in Europe but also in South and Central
America, and in North Africa. In Asia, Carrefouris very successful in China and
Thailand but not in Japan where they located only four hypermarkets at this time.

COMPANY PROFILE
BIG BAZAAR
Type

Public

Industry

Retailing

Founded

2001

Headquarters

Mumbai, Maharashtra, India

Products

Hypermarket

Revenue

11500 crores (US$1.8 billion) crores (in 2014) (Big Bazaar and
Food Bazaar combined)

Employees

36000 people

Parent

Future Group

Divisions

214

Website

http://www.pantaloonretail.in/businesses/big-bazaar.html

Company Profile of Big Bazaar

Big Bazaar is the largest hypermarket chain in India. As of June 2, 2014 there are
214 stores across 90 cities and towns in India covering around 16 millionm2 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 stores are aimed at providing a local marketplace feel to the shoppers.
They offer a wide variety of household items including retail apparels, food
products, general merchandise, furniture, electronics, books, fast food, etc. Several
stores also have leisure and entertainment sections. The hypermarket chain crossed
the 100 store mark in 2008.

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

assortment of products such as fashion, which includes merchandise for men and
women, mobile accessories, mobile handsets and electronics like home theatres,
video cameras, digital camera, LCD TVs, kitchen appliances and many more.
Discounts: Haftekasabsesasta din was introduced by the Big Bazaar,
wherein extra and special discounts were offered on Wednesday every week,
to attract the potential buyers into their store.
Security check: At each exit of Big Bazaar, they use alarm systems or
Electronic Article Surveillance system, which detects the products that has
attached tags or not.

FUTURE GROUP ALSO OWNS

Central Hypermarket

Brand Factory

Pantaloons

e - ZONE

Hometown

futurebazaar.com

KB's Fair Price

COMPANY HISTORY

2001 to 2010
Big Bazaar was introduced by the Future Group in September 2001 with the
opening of its first four stores in Kolkata, Indore, Bangalore and Hyderabad within a
period of 22 days.
Started by Kishore Biyani, Big Bazaar was launched mainly as a fashion format
selling apparel, cosmetics, accessories and general merchandise. Over the years, the
retail chain has included in its portfolio a wide range of products and services,
ranging from grocery to electronics.
The current retail formats of the Future Group include Big Bazaar, Food Bazaar,
Electronic Bazaar and Furniture Bazaar. According to Kishore Biyani, the
inspiration behind this entire retail format was from Saravana Stores, a local store in
T. Nagar, Chennai. Big Bazaar is popularly known as the Indian Wal-Mart today.
In the second year of operations, Big Bazaar tied up with Indian banking giant ICICI
Bank and launched the Big Bazaar ICICI Bank Card. In the same year, the first
Food Bazaar store was also launched at High Street Phoenix mall in Mumbai,
marking the retailers entry into dedicated food retail.
In 2003, Big Bazaar made its foray into small towns and cities. The first store in this
category was launched that year in Nagpur. The franchise also welcomed its 10
millionth customer at its new store in Gurgaon in the same year.
Over the next two years, Big Bazaar consolidated its position in the Indian retail
landscape. This phase of growth included the setting up of the Mumbai store in
Lower Parel, which registered a record Rs 10 million turnover in a single day on
Diwali-eve in 2004. In 2005, the first Big Bazaar Exchange Offer was launched,
which has quickly gained popularity among customers.
In 2006, further changes in loyalty marketing took place with the launch of the
housewife-centric credit card, Shakti. Jewellery store Navaras was also launched
that year within Big Bazaar stores which became the first store-in-store concept to

be launched by the brand. Another dedicated retail format launched in 2006 is

Furniture Bazaar.
In 2007, Big Bazaar partnered with a shopping portal Futurebazaar.com and
expanded its retail footprint to 50 stores.
The following year, 2008, witnessed by far the fastest growth in terms of retail
expansion for Big Bazaar, with the launch of the 101st store. Joining the league of
Indias Super brands and voted among the top ten service brands in the country by
the Pitch-IMRB international survey, Big Bazaar became much more than a
household name.
The year also saw the launch of the Monthly Bachat Bazaar (Monthly Budget
Market) campaign, which provided significantly low prices and gave discounts on
bulk purchases in the first week of the month.
Over the next two years, Big Bazaar carved its own niche in modern retail and
became the largest brand in the hypermarket format. Capturing one-third of the food
and grocery market in modern retail, celebrity endorsements and tie-ups with other
brands allowed it to enhance its retail footprint. In 2009, Big Bazaar won the CNBC
Awaaz Consumer Awards for the third consecutive year. It was adjudged the Most
Preferred Multi Brand Food & Beverage Chain, Most Preferred Multi Brand Retail
Outlet and Most Preferred Multi Brand One Stop Shop.
2010 to present
On successful completion of 10 years in the Indian retail industry, in 2011, Big
Bazaar came up a new logo with a new tag line: "Naye India Ka Bazaar.
In 2012, Big Bazaar signed a multi-million dollar deal with Cognizant Technology
Solutions for the development of an IT infrastructure, encompassing Future Groups
entire network of stores, warehousing and data centers.

Recently, Big Bazaar announced its plans to add more retail services to its portfolio
such as grinding, de-seeding and cutting of fruits and vegetables.

MISSION AND VISION

VISION:Future Group shall deliver everything, everywhere & every time for every customer in the
most profitable manner

MISSION:Our customers & stakeholders shall be served only by creating & executing the future.
We share the vision & believe that are scenarios in the consumption space leading to
economic development.
We will be the trendsetters in evolving:
delivery formats
Creating retail reality.
Making consumption affordable for all customer segments for classes

& for masses.

We shall infuse Indian brands with confidence & renewed ambition.
We shall be:
Efficient
Cost conscious
Committed to quality in whatever we do.
We shall ensure that our positive attitude, sincerity, humility & united determination
shall be the driving force to make us successful.

OPERATIONS

Various formats and store concept

Most Big Bazaar outlets are multi-leveled stores and are located in stand-alone
buildings in city centers as well as within shopping malls. These stores have more
than 2,00,000 Stock Keeping Units (SKU) in a wide range of categories, led
primarily by fashion and food products. The retail space of these stores in the metros
range between 50,000 and 1,60,000 sq. ft. Since its launch in 2001 in metro cities
like Kolkata, Bangalore and Hyderabad, Big Bazaar is the largest Hypermarket
chain with presence in 90 cities and towns across the country
CSR ACTIVITIES
As a part of Future Group, Big Bazaar is involved in various social activities that
include green initiatives for the community, blood donation camps, Diwali
celebrations with orphanages, visits to orphanages and other NGOs helping
underprivileged children. These activities usually involve all members of the
management as well as staff of Big Bazaar.
In September 2011, Future Group signed a strategic partnership with the Himachal
Pradesh Government to directly source, market and promote the states products and
services through its Big Bazaar stores under the brand Himachal. The aim of this
partnership is to aid the development of various source-to-market initiatives to
enhance livelihoods for more than 25,000 families in the state.
Big Bazaar created a platform called Yatra to provide women of self-help groups
across various towns and regions of Maharashtra and Gujarat the opportunity to
market their wide assortment of indigenous food and non-food products. As part of
the programme, women from over 30 regional self-help groups were invited,
encouraged and helped to set up stalls to exhibit their products at Big Bazaar stores.

 Big Bazaar Mysore started offering a free wholesome meal to all its customers,
who in return contribute ShraddhaAnussar for a community cause. In other words,
the customers donate any amount for the meal which would be used for a local,
regional or topical cause.
SCHEMES & INNOVATIONS

The introduction of SabseSasta Din (Cheapest Day) in the year 2005 was a turning
point for the Big Bazaar franchise. As part of this effort, the Republic Day holiday
was used to ensure that consumers visited Big Bazaar outlets across the country in
large numbers to get required household items at cheaper rates.
Taking cue from this highly successful concept, another initiative was introduced,
named the Purana do aurnaya lo (give old and get new) scheme. In this scheme,
consumers were asked to bring and sell old clothes, utensils and other household
items in exchange of discount coupons.
The concept proved to be a success yet again as people from across the country
responded spontaneously, in spite of the different preconditions associated with it.
The franchise further inaugurated the concept of Haftekasabsesasta din
(Cheapest Day of the Week), wherein Wednesday was designated to be the day
when special discounts were offered to consumers during a week.

Wednesday Bazaar

The concept of Wednesday Bazaar was promoted as HafteKaSabseSasta Din

(Cheapest Day of the Week). Initiated in January 2007, the idea behind this scheme
was to draw customers to stores on Wednesdays, the day when consumer presence is
usually less. According to the chain, the aim of the concept was to give
homemakers the power to save the most.

SabseSasta Din

Big Bazaar introduced SabseSasta Din (Cheapest Day) with the intention of
attaining a sales figure of Rs 26 crores in a single day. The concept became such a
hit that the time period for the offer had to be increased from one day to three days
in 2009 (January 24 to 26) and to five days in 2011 (January 22 to 26).

MahaBachat

The concept of MahaBachat (Mega Saving) was introduced in the year 2006 as a
single day campaign with attractive promotional offers across the company outlets.
Over the years, the concept has grown to become a six-day biannual campaign.
During this campaign, attractive offers are given in all the value formats including
Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar.
The Great Exchange Offer

Introduced on February 12, 2009, The Great Exchange Offer allows customers to
exchange their old goods for Big Bazaar coupons. The coupons can be redeemed
later for buying brand new goods from Big Bazaar outlets across the nation.

ADVERTISING CAMPAIGNS & MARKETING INITIATIVES

In view of the increasing competition in the retail market, Big Bazaar has introduced
certain steps to keep itself updated and continue promoting the band.
Advertising initiatives
Big Bazaar has recently launched a 360-degree promotion drive covering the three
prime media, television, print and social media, to mark the launch of the new logo.
The entire media campaign was developed by Mudra Communications as Big
Bazaar celebrating April Utsav on 2013. They Offering Rs. 50 off on Rs. 500 or Rs.
100 off on Rs. 500 or Rs. 200 off on Rs. 500 coupon through missed call.

STRATEGY USED IN BIG BAZAAR

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

1. India one: Consuming class which includes upper middle and lower middle
class (14% of India's population).
2. India two: Serving class which includes people like drivers, household helps,
office peons, liftmen, washer men, etc. (55% of India's population) and
3. India three: Struggling class (remaining 31% of India's population).
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Strategies Used in Big Bazaar

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, Group emerged as a retail destination for consumers across all
classes in the Indian society.

FOUR PS OF BIG BAZAAR

PRODUCT MIX

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Product Mix
PRICE MIX
Value Pricing (EDLP)
Promotional Pricing
Low Interest Financing
Psychological Discounting
Special Event Pricing
Differentiated Pricing
Time Pricing
Bundling

PLACE MIX
Initially Identifies Future/Potential development areas.

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 Acquire such areas at an early phase before the real estate value booms.
Located at high traffic areas.
Design to look crowded.

PROMOTION MIX
SaalKeSabseSasta 3 Din
Future Card(3%Discount)
Advertising(Print ads, TV Ads, Radio)
Brand Endorsement by M.S Dhoni
Exchange Offer
Weekend Discount
Point of Purchase Promotion

PRODUCTS PROFILE

The product profile of Big Bazaar is as follows. They are dealing with various types
of products and so they had divided them into various departments for the
customers convenience.

The departments are:

FOOD BAZAAR
HOME CARE PRODUCTS
BOOKS & STATIONARIES
APPARELS & GARMENTS
MEN & WOMEN ACCESSORIES
KIDS ACCESSORIES
CROCKERY & PLASTIC ITEMS
HOME DECORS
GIFTS
BAGS & TRALLIES
FURNITURES
ELECTRONIC GOODS
FOOT WEARS

COMPETITORS PROFILE
Big Bazaar faces competition from other retailers of similar products & services.
These include stand alone stores in the organised&unauthorised sector, as well as
other chain of stores including Department stores.
It is because of this and the service and ambience that Big Bazaar believes have
been able to create a differentiation in the mind of the customer vis-a-vis our
competitors where similar products and Brands are available.
COMPETITORS OF BIG BAZAAR
More
Reliance Trend
Wal-Mart
Reliance
Shoppers stop
Local retailers
Spencer's
Reliance Fresh

CHAPTER-3

SWOT Analysis:Strength
1.
2.
3.
4.
5.
6.

Affordability for middle class

Quality choice and convenience
Wide range of products and service offerings
Strong presence in local market.
Attractive promotional offers.
Good branding and advertising by also roping in celebrity brand ambassadors.

Weakness
1. Not known globally and restricted to the Indian market only.
2.No different game plan according to divergent people, their lifestyles, their tastes and
budgets in India

Opportunity
1.
2.
3.
4.

To expand globally by tie-ups

Entering into high premium segment
Opportunity to expand into financial services catering to huge segment
Increased rural penetration

Threats
1. Competitors global presence
2. Future bazaar under debt can cause financial problems
3. .Low priced brand perceived to be of low quality in Indian consumer minds