SUMMER TRAINING PROJECT REPORT

On

INDIAN ORGANIZED RETAIL INDUSTRY WITH

SPECIAL REFERENCE TO BIG BAZAAR

Towards partial fulfilment of

Integrated Master of Business Administration (IMBA)
School of Management, Babu Banarasi Das University, Lucknow

Submitted by-
Sumit Kumar Yadav
7th Semester
Roll No-1130675094

Under Supervision of
Prafull Srivastava
Fashion Department- Floor Manager

Session 2015-2016
School of Management

Babu Banarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
CERTIFICATE FROM THE ORGANIZATION
BONA-FIDE CERTIFICATE OF DEAN-SCHOOL OF

MANAGEMENT
 ACKNOWLEDGEMENT

I sincerely would like to show my gratitude towards all those persons who have helped me

throughout my project work.

I am heartily thankful to Prafull Srivastava Sir at Big Bazar for giving me his valuable

guidance for preparing this report. He has been an exceptional mentor during these two

months of training. It has been a great learning experience of being a trainee under him.

I would like to express my special thanks to all the another official who has helped me a

lot during this SIP. Their critical advices helped me to make this report more effective.

I want to give my sincere thanks as I am deeply indebted to my guide Mr. Manish Jain

Sir for her guidance and support throughout our project. She gave me great support to

prepare this project, too. And all who directly or indirectly helped me in preparing this

report.

SUMIT KUMAR YADAV

IMBA (7th Sem.)

Roll No- 1130675094

 DECLARATION

I do hereby declare that the research report titled Indian Organized Retail Industry with

special reference to Big Bazaar submitted by me in partial fulfilment of the requirement

of Integrated Master of Business Administration, exclusively prepared and conceptualized

by me and is not submitted to any other Institution or University or published anywhere

before for the reward of any Degree/Diploma/Certificate. It is the Original work of mine

and has not been obtained from any other part.

SUMIT KUMAR YADAV

IMBA (7th Sem.)

Roll No- 1130675094

 Preface

Retailing is evolving into a global, high-tech business. Wal-Mart is now the worlds

largest corporation and has become the largest food retailer in the United States. French

based Carrefour is the worlds second largest retailer. Retailing in developed countries is

big business and better organized. But the retail scenario in India is different much of it is

in unorganized sector. There are more than 12 million retail outlets of various sizes and

formats. And almost 90% of them are less than 500 sq. ft. in size and the per capita retail

space is only 2 sq. ft. while US has 16 sq. ft.

India has the largest number of outlet in world i.e. 9 outlets for 1000 people. Most of them

are independent and contribute to the retail sales. Because of increasing number of nuclear

families, working women, greater work pressure and greater commuting time, convenience

has become a priority for Indian customers. They ever want things under one roof for easy

access and multiplicity of choice. The growth and development of organized retailing is

driven by two main factors- prices and benefits the customer cant resist.

India is rapidly involving into a competitive market place with potential target consumers

in the niche middle class segments. The market trend indicates tremendous growth

opportunities. The buying behaviour and lifestyle in India too are changing and the concept

of value for money is fast catching on in Indian retailing. This is the evident from the

expansion of the Pantaloons chain into the large format, Big Bazaar. This growth in retail

sector is making the retailers powerful intermediates in the marketing channel, bridging the

gap between manufactures and consumers.

Keeping in mind the rapid growth of Indian retail industry and its bright future, this has

always been a thrust area for me. Big Bazaar is at the top position in Indian retail industry.

That is why it attracted me to have summer training (on the job training) in Big Bazaar,

Lucknow. Big Bazaar is the retail chain of Future Retail (India) Ltd. And it provides a wide

range of products availability for the customers.

As a matter of fact, retail is the buzz word of the Indian economy today. As retail

industry is growing at a high pace I wanted to have an overview of the subject. I have

chosen Big Bazaar retail chain for the summer training (on the job training) because Big

Bazaar retail is very upcoming retail company which is continuously changing its activities

with the change of time. I wanted to understand their marketing activities and liked to relate

how similar or dissimilar it is from what I have studied in marketing management.

To execute the project, I underwent on the job training at Big Bazaar, Phoenix

United Mall, and Lucknow. The interaction with the Human Resource Manager,

Department Manager, Operational Manager, Team Leaders and other staff personnel was

fruitful to me as it cleared many core concepts when it came to practical application what

we have learned in the classrooms and books.

 TABLE OF CONTENT

Chapters Content Page No.

Part I

1 Introduction 1-18

a) Industry Profile 1

b) Indian Retail Industry 2-7

c) Major Retailers in India 8-10

d) Classification of retail sector 11-18

2 Company Profile: Future Group 19-37

a) About organization 19-21

b) Corporate Statements 22-24

c) Major Milestones 25-28

d) Awards and Recognition 29-31

e) Future Group Companies 32-34

f) Future Retail 35-37

3 Big Bazaar 38-60

a) Big Bazaar Indias real retail story 38-40

b) About Big Bazaar 41-43

c) Fashion Department at Big Bazaar 44-54

d) Space Mix and Space Management 55-60

4 Learning Process for Summer Training at Big Bazaar 61-65

Part II

5 Objectives of the study 66

6 Research Methodology 67-68

a. Method of data collection 67

 b. Data Source 67

c. Sample design 68

d. Universe 68

e. Sample type 68

f. Sample size 68

g. Sample Unit 68

h. Limitation of the Study 68

Part III

7 Data Analysis & Interpretations 69-82

8 Findings 83-84

9 Suggestions/Recommendations 85

10 Conclusion 86-87

11 Bibliography 88

12 Appendix 89-92
 INTRODUCTION

Industry Profile-

Retailing:-

The word retail is derived from the French word retailer, meaning to cut a

piece off or to break bulk. In simple terms, it implies a first-hand transaction with the

customer.

Retailing involvers a direct interface with the customer and the coordination of

business activities right from the concept or design stage of a product or offering to its

delivery and post-delivery service to the customer. The industry has contributed to the

economic growth of many countries and is undoubtedly one of the fastest changing and

dynamic industries in the world today.

Retailing today is not only about selling at the shop, but also about surveying the
market, offering choice and experience to consumers, competitive prices and
retaining consumers as well

Retail trade provides 9% of all jobs in India and 14% of GDP.

Retail classification

Retail industry can be broadly classified into two categories namely- organized and

unorganized retail.

Organized retail - Organized traders/retailers, who are licensed for trading activities

and registered to pay taxes to the government.

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 Unorganized retail It consists of unauthorized small shops - conventional Kirana

shops, general stores, corner shops among various other small retail outlets - but

remain as the radiating force of Indian retail industry.

Indian Retail Industry

The Indian retail industry is one of the fastest growing in the world. Retail industry in India

is expected to grow to US$ 1.3 trillion by 2020, registering a Compound Annual Growth

Rate (CAGR) of 16.7 per cent over 2015-20.

The retail market is expected to reach a whooping Rs. 47 lakh crore by 2016-17, as it

expands at a compounded annual growth rate of 15 per cent,

-According to the Yes Bank - Assocham study.

India is the fifth largest preferred retail destination globally. The country is among the

highest in the world in terms of per capita retail store availability. Indias retail sector is

experiencing exponential growth, with retail development taking place not just in major

cities and metros, but also in Tier-II and Tier-III cities. Healthy economic growth, changing

demographic profile, increasing disposable incomes, urbanization, changing consumer

tastes and preferences are the other factors driving growth in the organized retail market in

India.

Indias population is taking to online retail in a big way. The online retail market is

expected to grow from US$ 6 billion to US$ 70 billion during FY15-FY20.

2
Increasing participation from foreign and private players has given a boost to Indian retail

industry. Indias price competitiveness attracts large retail players to use it as a sourcing

base. Global retailers such as Walmart, GAP, Tesco and JC Penney are increasing their

sourcing from India and are moving from third-party buying offices to establishing their

own wholly-owned/wholly-managed sourcing and buying offices.

The Government of India has introduced reforms to attract Foreign Direct Investment

(FDI) in retail industry. The government has approved 51 per cent FDI in multi-brand retail

and increased FDI limit to 100 per cent (from 51 per cent) in single brand retail.

(Exchange Rate Used: INR 1 = US$ 0.0148 as on July 11, 2016)

Source: - http://www.ibef.org/industry/retail-india/infographic

3
Market Dynamics

In the past few years, Indian Retail sector has seen tremendous growth in the organized

segment. Major domestic players have stepped into the retail arena with long term,

ambitious plans to expand their business across verticals, cities and formats.

Companies like Tata, Reliance, Adani Enterprise and Bharti have been investing

considerably in the booming Indian Retail market. Along with these giant retailers, a

number of transnational brands have also entered into the market to set up retail chains in

close association with bigger Indian companies.

High consumer spending over the years by the young population (more than 31% of the

country is below 14 years) and sharp rise in disposable income are driving the Indian

organized retail sectors growth. Even Tier I & Tier II cities and towns are witnessing a

major shift in consumer preferences and lifestyles, the result of which, they have emerged

as attractive markets for retailers to expand their presence.

The Indian retail sector is highly fragmented and the unorganized sector has around 13

million retail outlets that account for around 95-96% of the total Indian retail industry.

However, going forward, the organized sectors growth potential is expected to increase

due to globalization, high economic growth, and improved lifestyle.

The retail companies are found to be rising in India at a remarkable speed with the years

and this has brought a revolutionary change in the shopping attitude of the Indian

customers.

4
Growth of Indian retail industry

Organized Retail is emerging as the new phenomenon in India and despite the slump, the

market is growing exponentially. As economic growth brings more of Indias people into

the consuming classes and organized retail lures more and more existing shoppers, by 2015,

more than 300 million shoppers are likely to patronize organized retail chains.

The retail sector in India is emerging as one of the largest sectors in the economy

By 2015, the total market size is estimated to be around US$ 600 billion, thereby

registering a CAGR of 7.45 per cent since 2000.

Retail industry is expected to grow to US$ 1.3 trillion by 2020, registering a CAGR

of 9.7 per cent between 2000-2020

MARKET SIZE OVER THE PAST FEW YEARS

1300
600
518

490
424
368
321
278
238
204

2000 2002 2004 2006 2008 2010 2012 2013 2015 2020E

5
Consumer markets in emerging market economies like India are growing rapidly owing to

robust economic growth. India's modern consumption level is set to double within five

years to US$ 1.5 trillion from the present level of US$ 750 billion.

The growing middle class is an important factor contributing to the growth of retail in India.

By 2030, it is estimated that 91 million households will be middle class, up from 21

million today. Also by 2030, 570 million people are expected to live in cities, nearly twice

the population of the United States today.

Thus, with tremendous potential and huge population, India is set for high growth in

consumer expenditure. With India's large young population and high domestic

consumption, the macro trends for the sector look favorable.

Key drivers of the Indian Retail Industry

An increase in the double-income households trend

Large working population

Reasonable Real estate prices

Increase in disposable income and customer aspiration

Demand as well as increase in expenditure for luxury items

Growing preference for branded products and higher aspirations

Growing liberalization of the FDI policy in the past decade

Increasing urbanization,

6
Bottlenecks

A long way to meet international standards

Lack of efficient supply-chain management

Lack of required retail space

No fixed consumption pattern

Shortage of trained manpower

Lack of proper infrastructure and distribution channel

7
Major Retailers in India

Shoppers' Stop-

Shopper Stop is counted among the top retail companies of India that has thousands of

outlets in PAN India. All the outlets have amazing collection of apparels for men and

women. Company is known for customer satisfaction and selling quality product.

Corporate office Mumbai, Maharashtra | Establishment 1991

Website www.shoppersstop.com

Reliance Retail limited

Reliance Retail is counted among the top 10 retail companies of India. It was started in

2006 to capture the growing retail market of India. Company is the part of Reliance

industries that has excellent reputation in the industry. From reliance retail customers have

the facility to buy food items, lifestyle, fashion, consumer electronics products, and home

decorative products.

Corporate office Mumbai, Maharashtra | Establishment 2006

Website www.ril.com

Indian Tobacco Company (ITC)

ITC is a leading retail company of India that was started in 1910 and has been in the

industry from last 100 years and selling quality products in affordable prices. Company

8
sells products under brand name of Wills Lifestyle and John players and has thousands of

outlets in PAN India

Corporate office Kolkata, West Bengal | Establishment 1910

Website www.itcportal.com

Tata Group

Tata Group is an Indian multinational conglomerate holding company headquartered in

Mumbai, Maharashtra, India. It was founded in 1868 by Jamsedji Tata and gained

international recognition after purchasing several global companies

Corporate office Mumbai, Maharashtra | Establishment 1868

Website www.tata.com

RPG Group

The RPG Group is an industrial conglomerate headquartered in Mumbai, India. It was

founded by R. P. Goenka in 1979, and initially encompassed the Phillips Carbon Black,

Asian Cables, Agarpara Jute, and Murphy India companies. Later it also opened the

pharmacy and beauty care outlets Health & Glow.

Corporate office Mumbai, Maharashtra | Establishment 1979

Website www.rpggroup.com

Titan Industries

Titan Industries is the part of Tata Group of companies. It was started in 1984 and has more

than 30 years of industry experience. Company was started with the joint venture of Tata

9
group and the Tamil Nadu Industries development corporation. Company has head office

in Bangalore and has seen excellent growth industry. Major Business is Jewelry and Watch

retail

Corporate office Bengaluru, India | Establishment 1984|

Website www.titan.co.in

Pantaloons Retail Limited

India's largest and fastest growing big box fashion retailer, Pantaloons is one of the fastest

growing lifestyle apparel retail destinations in India. Constantly innovating designs,

concepts and products by infusing the latest trends in fashion and clothing styles,

Pantaloons has a repertoire of lifestyle brands to cater to every consumer's needs across

multiple occasions.

Corporate office Mumbai, Maharashtra | Establishment 1997

Website www.pantaloons.com

Adtiya Birla Group

A US $41 billion (Rs. 2, 50, 000 crore) corporation, the Aditya Birla Group is in the

League of Fortune 500. Anchored by an extraordinary force of over 120,000 employees,

belonging to 42 nationalities. Over 50 per cent of its revenues flow from its overseas

operations spanning 36 countries.

Corporate office Mumbai, Maharashtra | Establishment 1857

Website www.adityabirla.com

10
Retail Formats and Classification

The evolution of retail in India has led to the emergence of the various formats in the retail

industry.

The first hypermarket that was developed was Carrefour in France in 1963.This new format

gave the customer the choice of picking up a product, comparing it with others and then

taking a decision to buy. The decision making of a customer has changed and there are

three principles that have become fundamental to modern selling

They fixed product prices before sale and that the customer bought at the set prices

The prices were determined on the basis of stock turns and the amount of profit that

was generated from the product.

They departmentalized the products .Accounting system were devised to determine

the contribution of various department and this enabled them to drop unprofitable

goods.

The various formats can be classified on the basis of ownership and the merchandise

offered.

11
Classification based on ownership: -

1) Independent retailer: -

An independent retailer is the one who owns and operates only one retail outlet .Such an

outlet is managed by the owner & proprietor and few other local hands or family members

working in the shop .Stores like the local kirana store, independent retailers like Benzer,

Amarsons .The retail strategy depends on the location and the product mix .The retailer has

the advantage to have a one on one rapport with the customer.

2) Corporate retail chain:-

When two or more outlets re under a common ownership, it is called a retail chain .These

stores have the similar merchandise to offer the customer, the ambience, advertising and

promotion. Eg: - Wills Sports, Louis Philippe.

The biggest advantage of a chain retailer is that it has the bargaining power with the

suppliers.

3) Franchising:-

A franchise is contractual agreement between the franchiser and the franchisee which

allows the franchisee to conduct business under an established name in return of fee or

compensation .Franchising can be:-A product or trademark franchise - where the franchisee

sells the products of the franchiser operating under the franchisers name eg: Archies.-A

business format franchise Mc Donalds is one best example.

12
4) Leased Departments:-

These re also termed s Shop in shops. When section of the department in a retail store

is leased / rented to an outside party it is termed as a leased department .This helps

the department to expand its offerings to the customers for eg: counters of perfumes

and cosmetics. These stores display only part of merchandise sold in the anchor stores.

Classification based on the merchandise offered:-

The retailers are classified based on the merchandise mix offered.

1) Convenience stores:-

These are relatively small stores located near residential areas they are open long hours,

seven days a week and offer a limited but essential and convenient products like bread,

milk, and egg etc .stores like HP Speedmart and in & out stores are some examples.

2) Supermarkets:-

They are large, low cost, low margin, high volume, self-service, operations designed to

meet the needs for food, groceries & other non food items. This format was the grocery

revolution in India and it rule 30 % of the grocery market in many countries .It sells 70 %

food products and every day commodities . Eg: Tesco, Safeway, food bazaar, food world.

3) Hypermarket: -

The word Hypermarket is derived from the French work Hypermarket, Which is a

combination of a supermarket and a departmental store. It sells other non-grocery products

to about 35 % along with grocery products .High square feet area around 80,000 to 2,

13
00,000. Apart from food it also sells nonfood products like clothes, jewelry, sports

equipments, accessories, CD s, electrical appliances etc .Hypermarkets today are like one

stop shop.

They are a typical destination location with low prices and other facilities like Chemist,

ATM, etc.

-Large selling area.

- Wide range of products including food and Nonfood products.-Discounted prices.

- Destination offers .Eg: Walmart, Target, Hyper city, Big Bazaar etc.

4) Specialty store: -

A store specializing in a particular type of merchandise or single product of durable goods

i.e.: electronics, furniture, electrical appliances etc. They have a very clearly defined

market and the success lies in serving the needs. They provide a very high level of

information and service of the product. Eg: Ikea, croma, planet sports etc.

5) Department store: -

It is a large scale retail outlet, offend multilevel whose merchandise offer spans a no of

different category. They sell goods like clothing, accessories, cosmetics, house hold goods

and a very broad assortment with fixed prices. Eg: Shoppers stop. Globus, Westside,

pantaloons etc.

14
6) Off price Retailer: -

Here the merchandise is sold lesser than the retail price. Off price retailers buy

manufacturers seconds, over runs and off seasons at deep discounts. The merchandise may

be in odd sizes, unpopular colures or with minor defects .It may be manufacturer owned

or by a specialty store. Eg factory Outlet of a brand, like Levis, etc. This format largely

depends on volume sales to make money

Retail formats in India

Hyper marts supermarkets: large self-servicing outlets offering products from a variety of

categories.

Mom-and-pop stores: they are family owned business catering to small sections;

they are individually handled retail outlets and have a personal touch.

Departmental stores: are general retail merchandisers offering quality products and

services.

Convenience stores: are located in residential areas with slightly higher prices

goods due to the convenience offered.

Shopping malls: the biggest form of retail in India, malls offers customers a mix of

all types of products and services including entertainment and food under a single

roof.

E-trailers: are retailers providing online buying and selling of products and services.

Discount stores: these are factory outlets that give discount on the MRP.

15
 Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks

and other small items can be bought via vending machine.

Category killers: small specialty stores that offer a variety of categories. They are

known as category killers as they focus on specific categories, such as electronics

and sporting goods. This is also known as Multi Brand Outlets or MBO's.

Specialty stores: are retail chains dealing in specific categories and provide deep

assortment. Mumbai's Crossword Book Store and RPG's Music World is a couple of

examples

Geographic Distribution of the Indian retail sector

The presence of Indias retail clusters seems to be directly based on the presence of

large and concentrated consumer base.

The top 10 markets consist of metro cities, such Mumbai, Delhi-NCR, Bengaluru

and Hyderabad, including leading tier-1 cities such as Surat, Ahmedabad and

Jaipur. In terms of state-wise distribution of stores of followed by retailers,

concentration is highly skewed toward few states, particularly in south India,

followed by west and north India. Eastern states have the lowest presence of

organized retailers.

Over the last Decade, existing metros have expanded significantly through the

growth of peripheral sub-urban areas, and this has been a key driver of the

organized retail segment.

16
 These areas offer the advantages of better planned development, lower rentals and

large spaces, needed by organized retailers.

17
Classifying Indian Retailers:

1. Modern Format Retailers

Supermarkets (food World)
Hypermarkets (Big Bazaar)
Department Stores (shoppers Stop)
Specialty Chains (Ikea)
Company Owned Company Operated

2. Traditional Format Retailers

Kiranas: traditional Mom and Pop Stores
Kiosks
Street Market
Exclusive /Multiple Brand Outlets

3. Hypermarket
Big Bazaar
Giants
Shoprite
Star

4. Department
Lifestyle
Pantaloons
Pyramids
Shoppers Stop
Trent

5. Entertainment
Fame Ad labs
Fun Republic
Inox
PVR

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 Company Profile

Future Group is an Indian private conglomerate, headquartered in Mumbai. The

company is known for having a significant prominence in Indian retail and fashion sectors,
with popular supermarket chains like Big Bazaar and Food Bazaar, lifestyle stores like
Brand Factory, Central etc. and also for having notable presence in integrated foods
and FMCG manufacturing sectors.

Every day, Future Group brings multiple products, opportunities and services to millions
of customers in India. Through more than over 17 million square feet of retail space, they
serve customers in more than 240 cities across the country. Most of all, they help India
shop, save and realize dreams and aspirations to live a better quality of life every day.

Future Retail (initially Pantaloons Retail India Ltd (PRIL)) and Future Lifestyle
Fashions, two operating companies of Future Group, are among the top retail companies
listed in BSE with respect to assets, and in NSE with respect to market capitalization.

On May 2012, Future Group announced 50.1% stake sale of its fashion
chain Pantaloons to Aditya Birla Group in order to reduce its debt of around INR 8000
crores. To do so, Pantaloons fashion segment was demerged from Pantaloons Retail India
Ltd; the latter was then merged to another subsidiaryFuture Value Retail Ltdand
rechristened Future Retail Ltd.

Future Group employs 36,000 people directly from every section of our society.
We source our supplies from enterprises across the country, creating fresh employment,
impacting livelihoods, empowering local communities and fostering mutual growth.

In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic
expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata,
Hyderabad and Bangalore.

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 Future Group

Type Private

Industry Retailing, Insurance, Logistics, Media

Founder Kishore Biyani (CEO)

Headquarters Mumbai, Maharashtra, India

Products Integrated foods and other FMCGs

Services Supermarkets, hypermarkets, discount stores, insurance, logistics, media

Net income 960.18 crore(US$140 million) as of March 2013

Number of 35,000
employees

Divisions Future Retail Ltd (BSE: 523574,NSE: FRL),

Future Lifestyle Fashion Ltd.,

Future Consumer Enterprise Ltd.,

Future Innoversity Ltd.,

Future Supply Chains Ltd.,

Future Brands Ltd.,

Future Capital Holdings Ltd.

Website www.futuregroup.in

www.futurebazaar.com

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 The groups speciality retail formats include supermarket chain Food Bazaar,
sportswear retailer - Planet Sports, electronics retailer - eZone, home improvement chain -
Home Town and rural retail chain, Aadhaar, among others.

Future Capital Holdings, the groups financial arm provides investment advisory to
assets worth over $1 Billion that are being invested in consumer brands and companies,
real estate, hotels and logistics. It also operates a consumer finance arm with branches in
150 locations.

Other group companies include, Future Generali, the groups insurance venture in
partnership with Italys Generali Group, Future Brands, a brand development and IPR
company, Future Logistics, providing logistics and distribution solutions to group
companies and business partners and Future Media, a retail media initiative.

The groups presence in Leisure & Entertainment segment is led through, Mumbai-
based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports
Bar and Bowling Co. and family entertainment centres, F123.Through its partner company,
Blue Foods the group operates around 100 restaurants and food courts through brands like
Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato.

Future Groups joint venture partners include, US-based stationery products

retailer, Staples and Middle East-based Axiom Communications.

Future Group believes in developing strong insight on Indian consumers and

building businesses based on Indian ideas, as espoused in the groups core value of
Indianans. The groups corporate credo is, Rewrite rules, Retain values.

Corporate Statements:-
21
Future Group manifesto

Future- the word which signifies optimism, growth, achievement, strength, beauty,

rewards and perfection. Future encourages us to explore areas yet unexplored, write rules

yet unwritten, create new opportunities and new successes. To strive for a glorious future,

it brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.

We, in Future Group, will not wait for the future to unfold itself but create future

scenarios in the consumer in the consumer space and facilitate consumption because

consumption is development. Thereby, we will effect socio-economic development for our

customers, employees, shareholders, associates and partners.

Our customers will not just get what they need, but also get them where, how and when

they need.

We will not just post satisfactory results, we will create success stories.

We will not just operate efficiently in the Indian economy, we will evolve it.

We will not just spot trends, we will set trends by marrying our understanding of the Indian

consumer to their needs of tomorrow.

It is this understanding that has helped us succeed. And it is this that will help us succeed

in the future. We shall keep relearning.

And in this process, do just one thing.

22
 Rewrite Rules, retain Values

Vision

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

consumer in the most profitable manner.

Mission

1. We share the vision and belief that our customers and stakeholders shall be served

only by creating and executing future scenarios in the consumption space leading

to economic development.

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

making consumption affordable for all customer segment- for classes and for

masses.

3. We shall infuse Indian brand with confidence and renewed ambition.

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

5. We shall ensure that our positive attitude, sincerity, humility and united

determination shall be the driving force to make us successful.

23
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 respective to new ideas, knowledge and information.

Valuing and nurturing relationship: to build long term relationships.

Simplicity & positivity: Simplicity and positivity in our thought, business and

action.

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

Founders' Board:

Kishore Biyani | Group CEO, Future Group

Anil Biyani | Director, Future Group

Rakesh Biyani | Director, Future Group

Sunil Biyani | Director, Future Group

Vijay Biyani | Director, Future Group

24
Major Milestones:

1987- Company incorporated as Manz Wear Pvt. Ltd. launch of Pantaloons trouser, Indias

first formal trouser brand.

1991- Launch of BARE, the Indian jeans brand.

1992- Initial public offer (IPO) was made in the month of May.

1994- The Pantaloon Shoppe- exclusive menswear store in franchise format launched

across the Nation. The company starts the distribution of branded garments through multi-

brand retail outlets across the Nation.

1995- John Miller- Formal shirts brand launched.

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1997- Pantaloon- Indias family store launched in Kolkata.

2001- Big Bazar, Is se sasta aur accha kahi nahin

2002- Food Bazar, the supermarket chain is launched.

2004- Central- Shop, Eat, Celebrate in the Heart of our City- Indias first seamless mall

is launched in Bangalore.

2005- Fashion Station- the popular fashion chain is launched all.

2006- Future capital Holdings, the companys financial arm launches real estate funds

Kshitij and Horizon and private equity fund in division. Plans forays into insurance and

consumer credit.

2007-

Introduction of Wednesday Bazar especially for women.

Future Group crosses the $1 billion turnover mark.

2008-

Future Capital Holdings becomes the second group company to make a successful

Initial Public Offering (IPO) in the Indian capital market.

Total operational retail space crosses the 10 million square feet mark.

Future Group acquires rural retail chain Aadhar from the Godrej Group, which has a

presence in 65 rural locations.

Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the

hypermarket format anywhere in the world.

26
2009-

Future Group celebrates its first Shopping Festival across all retail formats in key

Indian cities.

Future Innoversity starts its campuses in Ahmedabad, Bangalore and Kolkata to offer

degree programs through a tie-up with IGNOU.

Future Group partners with Hong Kong-based Li & Fung Group to strengthen its supply

chain and logistics network across the country.

2010-

Future Group launches its telecom brand T24 in partnership with Tata Teleservices to

provide additional loyalty benefits to its customers.

Future Group launches products in key FMCG categories through Sach, a brand co-

created with Sachin Tendulkar.

Future Group connects over 4000 small and medium Indian manufacturers and

entrepreneurs with consumers.

2011-

April 2011 KB's Fair price celebrates opening its 200 stores in India

May 2011 Future Supply Chains becomes ISO certified

2012-

On 1st May 2012, the company introduced a new retail initiative Public Holiday Sale

Future Supply Chains Express Logistics business became the fastest profitable Express

Business in India

27
 Future Supply Chains Express Logistics business became the fastest profitable

Express Business in India

2013-

Future Group officially launched India's largest State of the Art Logistical Distribution

Hub at Nagpur.

Big Bazaar introduced a unique customer membership program 'Big Bazaar Profit

Club.'

2014-

Future Group partnered with the Fortune 500 Company and one of the largest online

shopping destination, Amazon.

Big Bazaar and Ezone were voted as one of the Top 50 Most Trusted Brands in the

country in the Brand Equity Survey 2013 conducted by Nielson.

2015-

Future Consumer Enterprise Limited (FCEL), signed an equal joint venture deal with

the Mibelle Group, Europe's third largest FMCG brand company.

Big Bazaar announced an exclusive tie-up with a leading mobile wallet company,

MobiKwik.

Bharti Retail joins hands with Future Retail.

Future Group forays into M-Commerce with the T24 Mobile App.

2016-

Future Group associated with Bajaj Finserv to launch India's first retail EMI card.

28
 Future Group's People Office team receives ISO 9001: 2015 certification on Jan 5,

2016.

Future Group acquired its first e-commerce home furnishing store Fab Furnish

Future Consumer Enterprise Limited (FCEL) partnered with Star Bazaar

FCEL Brands Tasty Treat and Fresh & Pure partnered with FMCG brands like Coke,

Britannia & BRU for Joint Marketing Campaigns.

AWARDS AND RECOGNISION:

Future Group is always being the best in which he deals from retailing to service sector

because of this they have won a ton of awards in the name of their performance, excellence

and most preferred brand by the peoples.

Recently Received Awards-

2016-

Future Group awarded with IMAGES Most Admired Food & Grocery Retailer of the

Year: Effective Technology Application

Future Group awarded with IMAGES Most Admired Food & Grocery Retailer of the

Year: Effective Technology Application

2015-

India's favorite Bazaar was awarded with the title of 'Best Retail Shopping Destination'

for the year 2015 at Retail India.

29
 Future Sharp Skills Ltd was awarded with 'The Best International Business Partner' by

Plymouth City College, UK

Future Retail won the Dun & Bradstreet (D&B) Corporate Award 2015 for its leading

performance in the Retail sector.

Big Bazaar won the 'Images Most Admired Food & Grocery Retailer of the Year in

Food & Grocery category.

Some Back Years Important Awards Following are the categories in which Future

Group has won awards and in some categories multiple awards -

2009-

CNBC Awaaz Consumer Awards 2009,

Images Fashion Forum 2009,

Coca-Cola Golden Spoon Awards 2009

2008-

Indian Retail Forum Awards 2008,

The INDIASTAR Award 2008 ,

Retail Asia Pacific 500 Top Awards 2008,

Coca-Cola Golden Spoon Awards 2008,

The Reid & Taylor Awards For Retail Excellence 2008

30
2007

Images Retail Awards,

National Retail Federation Awards,

World Retail Congress Awards,

Hewitt Best Employers 2007,

PC World Indian Website Awards Readers Digest Trusted Brands Platinum Awards.

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 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

31
Future Group's operating companies sorted by targeted

markets-

Retail:-

Future Retail Ltd

Future Lifestyle Fashion Ltd

Future Consumer Enterprise Limited

Financial Services:-

Future Capital Holdings (for internal financial services)

Future Generali Life Insurance

Future Generali General Insurance

Future Ventures

Other Services:-

Future Innoversity

Future Supply Chains

Future Brands

Future Learning

Future Brands

32
Future Group retail services sorted by operating companies:-

Food Bazaar

FBB (Fashion @ Big Bazaar)

HomeTown

E Zone

Foodhall

FutureBazaar.com (e-retailing)

Easyday

Big Bazaar

Future Lifestyle Fashion Ltd:-

Central

Brand Factory

Planet Sports

Future Consumer Enterprise Limited:-

KB's FairPrice

Future Brands
The Future Group has built a strong portfolio of some of the fastest growing consumer
brands in India. This activity is led through Future Brands India Limited, a specialized
subsidiary company that was set up to create and build powerful brands that address the
aspirations of the new Indian consumer.

33
Some of the key brands in this portfolio include, John Miller, Lombard, Bare, DJ&C,
Buffalo and RIG in the fashion and apparel space. Dreamline, present in the home
segment, offers a wide range of products in kitchenware, bed & bath linen, and Home
Dcor categories.

In the food and home care segment brands include Tasty Treat, Premium Harvest, Fresh
& Pure, Care Mate and Clean Mate. In consumer durables and electronics space, the
groups brands include Koryo and Sensei.

Line of Business:-

The company is present across several lines of business which have various formats (stores)

lywood, The Doller store(JV).

Fashion Central, All, Brand Factory, Blue Sky, Top 10, Fashion Station, Big

Bazaar, Lee Cooper (JV).

General Merchandise Big Bazaar, Shoe Factory, Navras, Electronics Bazaar,

Furniture Bazaar, KBs Fair Price.

Electronics- e-Zone, Staples (JV)

Home improvement- Home Town

Furniture Collection I, Furniture Bazaar, Home Bazaar.

E-tailing (Online Shopping).

Books & Entertainment Bowling Co., F123.

Wellness Star & Sitara, Tulsi.

Telecom & IT Gen M, M-bazaar, M-Port, and Converge M.

Consumer Durables Koryo, Sensei.

Service E-Care.

Malls TGIP, Central Gurgaon.

34
Future Retail

Retail forms the core business activity at Future Group and most of its businesses

in the consumption space are built around retail. Future Groups retail network touches the

lives of more than 200 million Indians in 73 cities and 65 rural locations across the

country. The group currently operates around 1,000 stores spread over 16 million square

feet of retail space. Present in the value and lifestyle segments, the groups retail formats

cater to almost the entire consumption expenditure of a wide cross-section of Indian

consumers

Future Retail, the groups flagship company, the group manages some of Indias most

popular retail chains like :-

Big Bazaar - a uniquely Indian hypermarket chain,

Fashion at Big Bazaar - Affordable fashion destinations aimed to make India Thoda aur

stylish

Ezone- It brings to you the latest in electronics at the lowest prices

35
Food Bazaar - a supermarket chain that blends the look, touch and feel of Indian bazaars

with aspects of modern retail like choice, convenience and quality,

Central - a chain of seamless destination malls. Some of its other formats include

KB's Conveniently Yours- An urban convenience store in your neighbourhood, KBs

Conveniently Yours

HomeTown - One-stop destination for every need of the aspirational Indian home-owner.

Ethnicity - India's first concept store, which recreates the experience of a traditional ethnic

market in a modern retail format,

Easyday- The convenient neighbourhood store offers refreshing shopping experience to

its customers

36
Foodhall - a premium lifestyle food destination

all - The plus size store

Aadhaar - Rural retail chain

Brand Factory- Indias largest discount retail chain, gives Indian consumers the promise

of revolutionizing discount shopping by offering the best Indian and International brands.

Planet Sports- Sportswear retailer

37
Big Bazaar Indias Real Retail Story

Big Bazaar, the flagship retail chain of the Future Group, is on the verge of

achieving a unique milestone in the History of World retail- by being the first hypermarket

format in the globe to rollout fastest 101 stores in a short span of seven years.

Big bazaars journey began in October 2001, when the young first generation

entrepreneur Kishore Biyani opened the countrys first hypermarket retail outlet in Kolkata

[Then Calcutta]. In the same month, two more stores were added one each in Hyderabad

and Mumbai, thus starting on a successful sojourn which began the chapter of organized

retailing in India.

Speaking on this momentous occasion and remembering the days of

conceptualizing the hypermarket idea Mr. Kishore Biyani said, We initially decided to

name the format as Bazaar because we had designed the store keeping the Indian

mandi style in mind. Since the size of the hypermarket was big than an average mandi, the

thought came to name it as Big Bazaar. However we had freezed on the punch line-

Is Se Sasta Aur Accha kahin Nahi much before we met the creative agency to design

the final logo of Big Bazaar .

Though, Big Bazaar was started purely as a fashion format including apparel

cosmetics, accessory and merchandise, the First food bazaar format was added as shop-In

shop within big bazaar in the year 2002. Today, Big Bazaar, with its wide range of products

and service offering, reflects the aspirations of millions of Indians.

38
 The journey of Big Bazaar can be divided into two phases one pre and the other

post January 26th, 2005 when the company rewrote the retail chapter in India, with the

introduction of a never before sales campaign Sasbe Sasta Din In just one day, almost

the whole of India descended at various Big Bazaar stores In the country to shop at their

favorite shopping destination.

Further, what followed was the time and again rewriting of the Indian Retail

experience wherein understanding of the Indian consumers reflected in the products and

services offered, creating innovative deals, expanding in the tier II and tier III towns, tying

up with branded merchandise to offer exclusive products and services to its customers.

The format is expecting the number of footfall in the stores to increase by over 140

million by this financial year over the years, Mr. Biyani for his vision and leadership, and

Big Bazaar for its unique proposition to its customers, have received every prestigious

consumer awards both nationally and internationally.

Says Rajan Malhotra, President, Strategy & Convergence, Big Bazaar, what is

important in our journey is not the number of stores, but the customers faith in us. Its the

India and the Indians, which have helped us, reach this feat in such a short time span and

today our country is creating a history in the word organized retail.

Rajan Malhotra, who is also the first employee of Big Bazaar, joining the

organization in early 2001 adds, Since beginning, we have kept Big Bazaar as a soft brand,

which reflects the India and the Indianness. We believed in growing with the society,

39
participating and celebrating all regional and local community festivals, giving customers

preferences above everything else.

Every Big Bazaar is a small family by its own and the head of the family Karta-

is the store manager. Kishore Biyani, the CEO of the Future Group, has a vast

understanding of the consumers insight, has inculcated the habit of observing,

understanding customers, in every employee of the group.

Future Group is confident of the Indian Retail Story. The group has not slowed

down its expansion plans despite the fiscal woes in the economy present today.

40
About Big Bazaar
Type : Hypermarket type

Founded : 2001

Industry : Retail

Product : Department store

MD & CEO: Mr. Kishore Biyani

Parent : Future Group

Website : www.bigbazaar.com

Big Bazaar is a chain of hypermarkets in India, with more than 200 stores in

operations. It is a subsidiary of Pantaloon Retail India Ltd, Future Group, offers a wide

range of products including clothing, footwear, electronic appliances, groceries and kitchen

utensils. You can also buy branded stuff from Reebok, Nike and Puma here. It caters to

every need of your family. Where Big Bazaar scores over other stores is its value for money

proposition for the Indian customers.

The word hypermarket is derived from the French word hypermarche, which is a

combination of a supermarket and department store.

The stores occupy an area which ranges from anywhere between 80000 to 220000

sq. ft. and offer a variety of food products like clothes, jewellery, hardware, sports

equipment, books, CDs, DVDs, TVs, electrical equipment and computers etc.

Hypermarkets are today synonymous with one stop shopping. The cheapest prices

will normally be found in these stores. Across the world, hypermarkets are usually part of

41
a retail park, along with other shops, cafeterias and restaurants. A key element of

differentiation between the hypermarket and the other retail formats is that they typically

have destination locations. The hypermarkets are designed to attract customers from a

significantly large area with their low price offers, unique range and offers. It is the largest

form of organized retailing today. It is an ideal shopping experience with an amalgamation

of product, service and entertainment all under of a common roof.

The company has been able to leverage on its multi-formats-multi-brand stores,

secure prime locations at the best possible prices and command a strong bargaining power

with suppliers, which provide it an edge over its competitors.

Customers come in Big Bazaar for purchasing, entertainment and pacing here and there.

It gives many facility to the customers like; Helpline, Baggage Counter, Parking,

Exchange etc. big Bazaar trying to provide customer with 3Vs

Value

Variety

Volume

Big Bazaar has different categories; such as

Food Bazaar

Apparels

General Merchandise: - At Big Bazaar, you will definitely get the best products at

the best prices- thats what it guarantees. With the ever increasing array of private

42
 labels, it has opened the doors into the world of fashion and general merchandise

including home garnishings, utensils, crockery, cutlery, sports goods and much

more at prices that surprise us. Here we talk about the department stores, because

Big Bazaar based on the departments.

Department Stores:-

Carry broad variety and deep assortment organized into separate department for displaying

merchandise,

Major departments includes:-

Utensils
Cosmetics
Plastics
Crockery
Home dcor
Dress Materials Suiting & Shirting
Luggage
Electrical Accessories
Footwear
Toys
Baby Accessories.
Home Textiles
Household Plastics
Home Needs
Linens Sarees
Household Appliances
Stationery etc.

Chains are very diverse and appeal to different markets. They are unique in terms of the

shopping experience they offer, the services they provide and the atmosphere of the store.

They are promotion- oriented. They increase competition with discount and specialty stores

creating problems.

43
 Fashion Department at Big Bazaar

Marketing Strategies of Big Bazaar:

At the time of the launch of Big Bazaar, there was no real precedent in the Indian

Market. A western model had to be adapted to suits the needs of the Indian environment.

Various local markets were studied to understand the product mix and the prices offered.

Savings is to the key to the Indian middle class consumers. The store that would be

launched had to offer value to the consumers. Keeping this in mind the concept of Big

Bazaar was created.

In India, when a customer needs something for home, a typical thought is to seek

it from bazaar where a complete range of products is available to the consumers. As the

store offers a large mix of products at a discounted price, the name Big Bazaar was

finalized. The idea was to re-create a complete bazaar, with a large product offering and

to offer a good depth and width in terms of range.

Price was the basic value proposition at Big Bazaar. The Big Bazaar outlets

sold a variety of products at prices which were 5 to 60% lower than the market price. The

line Is Se Sasta Aur Accha Kahin Nahi emphasized this. The key question faced by

the management was whether the low margins on the products would allow the company

to sustain growth. With the aim of answer in order to allow the company decides on the

right locations.

44
 The key learning which came out of this exercise was that for a large store like

Big Bazaar, a large catchments area was needed. The management decided to stick to the

existing market places within the city as the western model of hypermarkets, where the

store was located in large area on the mid of the city would also really work in India. The

cost of time spent on travels and the cost of petrol in India would really become a plus

point for the customers. Some of the key marketing strategies and promotional activities

that are successfully employed by Big Bazaar are:-

Discount Selling:-

Big Bazaar sells all its products at a much cheaper price as compared to the local

markets. The range of discounts ranges from 5 to 60%. Although the store sells the

products at a cheaper rates it does not compromises with the qualities of the products.

Huge No. of Brands:-

Big Bazaar maintains a huge number of brands under its dispose which give the

customers the liberty of buying the product of their favorite brand. This helps the

customers as they dont go looking out for a product of a particular brand.

Large Product Line:-

Big Bazaar also stocks a large product line of a single brand or multiple brands which

give the customers the choice to select the most appropriate product out of many

available at the most economical prices.

45
Frequent Promotional Activities:-

Frequent promotional programs like Wednesday- Haftey Ka Sabse Sasta Din, Fashion

Shows, Monthly Bachat, Price Challenge, etc. were conducted in store in which the

customers were provided special discounts, offers in addition to the normal discounts and

offers of the store. The main purpose of this sort of activities is to generate in the dull

days of the week or of the month.

46
FASHION DEPARTMENT @ BIG BAZAAR, PHOENIX UNITED

MALL

Introduction

Fashion department is a Line of Business (LOB) at Big Bazaar, Phoenix United

Mall, Lucknow. Location of Fashion department is situated on 1st floor of the store. Fashion

department has large range of Product mix. It has collection of huge brands. Fashion

department plays an important role in Big Bazaar as it attracts the customers to visit the

store. Every day, it also contributes almost 50% sale of the entire store.

Process of Fashion

Warehouse (Receiving)

Sub department

Tagging

On floor

Staking (MPM)

Sub department of Fashion

Mens wear

Ladies wear

Kids wear

Home Linen

47
Mens Wear

Section of mens wear-

Men's Casual

Men's Fabric

Men's Formal

Men's Occasion Wear

Suit & Blazer

Men's Accessories

Mens night wear

Brands Available

AFL

Knighthood

John Miller

DJ&C

Famous Basics

Signature

Shatranj

48
 VIP

Ladies Wear

Section of ladies wear-

Ladies Ethnic

Ladies Western

Saree & Dress Material

Ladies Accessories

Ladies night wear

Brands of Merchandises

Sharisty

DJ&C

SHAYLA

49
Kids Wear

Section in kids wear-

Children Wear

Kids Accessories

Brands Available

PINK & Blue

Power Ranger

Tagging pattern:-

All stores use security tags for preventing the theft of the items that they sell. A

security tag consists of a very small device that emits a radio signal of high frequency.

This is something that can easily be turned off by store officials.

The signal from the security tag is released all the time and therefore it is not

possible for a customer to leave the store without paying for the product. The tag gives

off an alarm at the exit if you try taking a product without paying for it.

50
 There is three type of tags-

Soft Tag

Hard Tag

String Tag

Types of Tag-

String Tags:-

These tags are the hard plastic tags or could be paper sandwich

Tags with a non-deceivable soft tag placed inside.

These tags are reusable like the hard tags

Use only the non-deactivating soft tags

Used on all items below Rs.400 in value and have been

Developed as an alternative to hard tags.

The tags are attached to the item using a hard nylon fastener.

To check if the tags are working, simply place them on

The deactivating pad. If the tag does not beep stop use of the tag.

51
Hard Tags:-

Has got two specific parts- The pin and the tag.

Used for apparels above Rs.400 and in certain categories on all the items.

Tags will ring only if the pin is inserted properly Never use bent, damaged or

rusty pins while tagging.

The pins can be removed only using a detacher, thus care should be

Soft Tags:-

Soft tags are the flat paper tags.

Must always be used on flat clean surfaces.

52
 A tag must be bent, do not bend any of the pink area of the circuit. Bend 1 cm

on one side only & no more than 90 degrees.

They should not be used on garments, as they will leave a stain.

These tags should not be put on metal or foil products unless there is at least 1

cm space between the security tag and the product, or else they wont work.

These tags get deactivated on the deactivation pad.

Importance of MPM In fashion-

MPM (Merchandise Presentation Manual)

MPM is related to the Visual Merchandise. A manual is designed by the higher

authorities of the store by VM team to make the products on the store look good and more

appealing to the customer.

For that a lot of psychology of humans is used to trick people and impact more on

the peoples brain for shopping.

What is Visual Merchandising?

Merchandise is briefly defied as presentation of a store as merchandise in the

way that will attract the attention of potential to the customer and motivate them to make

purchase.

Visual merchandising is the ultimate image building tool. Depending on the

merchandise and the imagery of the brand/store the VM is done. Visual merchandising

puts forward the desired image of the store and helps in enhancing the same.

53
 Designer stores have lesser merchandise and more space to make the product

look and feel expensive (or rightly said RICH). On the contrary hypermarkets have

more merchandise and lesser space.

Influence Buying Behavior: Through the right and attractive display one can

influence the customer to like and but the product.

Increase in Turnover: Due to scientific and strong product presentation the

customer is induced to buy more.

Increase in Bill Size: Putting forth coordinated look makes the customer buy

more than he would otherwise.

Advantage of MPM-

Arranged merchandise properly

Easy to find

Easy to pick

Easy to buy

To put best forward the merchandise highlight I terms of colour ,quality

Who can we make effective MPM Product should be tagged from

manufacturing house.

Focus light should be on the floor.

Availability of Proper mannequins for all the product.

Hygienic product should be packed.

Stock should be properly displayed.

54
 Space Mix and Space Management

Space Mix:-

For the retailer space is money. The store has to be planned in such a way that it

optimizes the selling area and minimizes the non-selling parts. The selling area is used

to present the merchandise and the non-selling part is accounted for by circulation space,

staircases, lifts, facilities, the back area, etc.

Area Mix:-

The area mix in a typical department store is: selling area about 60%, circulation area

15%and back area 25%.

AREA DISTRIBUTION IN STORE

Circulation Back Area Selling

Circulation
15%

Back Area
Selling 25%
60%

55
Space Management

The placement of merchandise within the store in the most profitable manner is

called space management. It is one of the most important activities, because the location of

merchandise at different location have different values. Some parts of store are more

valuable because customers visit those more frequently, which results in higher sales. It is

easier to make sales along.

Space closest to the entrances and exits is the most is the valuable, and values

decrease further into the store.

Retail Marketing Mix

The basic function of retail is to provide the right goods to the consumer, at the right place

and time. Through the retail marketing mix we can compete with our competitors and

achieve the sales target. The marketing tools that a retail organization uses to pursue its

marketing objectives are termed as the retail marketing mix.

The most channels are:-

Product

Price

Place

Promotion

Presentation

Customer Service

People

56
The channels are illustrated in figure given below:

Product

Physical
Place
Evidence

Retail
Marketing
Mix
Presentation Price

People Promotion

Product:-

One of the main elements of the retail marketing mix is the products and /or

services that store offers to the customer.

Products are also termed as merchandise. The different products that the store

offers are together termed as the merchandise mix.

For example, if we consider the Fashion department, the merchandise line comprises:

Mans wear

Mans accessory

57
 Party wear

Ladies wear

Kids wear

Home fashion

Place:-

The location of the retail store was considered to be the most important element of

the retail marketing mix.

Big Bazaar is situated at premier location in Lucknow, where Pantaloons, Reebok,

Jumbo, Globus, Reliance Trends like stores are situated. It is the best place for Big Bazaar

because it is situated under the Phoenix United Mall which gives a large footfalls in the

store.

Price:-

Pricing is an integral part of the retail marketing mix. The price policy that the

organization decides to follow depends on the customer profile of the target audience for

its range of products.

Big Bazaar gives the good price to the customer price makes the good relationship

to the customers.

Big Bazaar has a punch line Isse Sasta Aur Accha Kahin Nahi

It gives the high discount on the price like; foods products (20%, 25%, 35%),

nonfood products (10%, 20%, 35%), buy one get one free, best Price, buy 3 get one free,

etc.

58
 Big Bazaar gives many offers to the customer like; the great Indian festival Big

Days, Sabse Saste 3 Din, etc. In these types of days it gives the huge discount on the

products.

Promotion:-

The advertising budget, sales promotion, publicity and the public relations play a

very important role in the competitive world of retailing these help the store to achieve the

short term goals. Promotion may be price led or occasional led, in which case special

merchandise offered by the stores only for the occasion. Most retail organization run

promotions during festival seasons.

Big Bazaar also provides the promotional offers on festival like Independence Day,

Diwali, New Year, Eid, Valentine day, etc. Discounts depend on the products.

Presentation:-

The manner in which the merchandise is presented at the store level is very

important. This aspect not only deals with the store layout and the ambience created, but

also with visual merchandising.

Visual merchandising is the orderly, systematic way of putting stock on display

in the retail store.

Big Bazaar presents the store as per the season and occasions like; on Diwali store

is decorated with candles and flowers, on Christmas store is decorated with stars, ribbons,

59
balloons, Christmas tree and on Independence Day and Republic Day store is decorated

with green, orange, and white balloons, etc. that attract the customers.

People:-

Retailers operate in a unique environment. The retail industry is characterized by a

large number of inexperienced workers, who need to put in long hours of work. Most of

the time, these employees are in direct contact with the customer and may face irritated or

unreasonable customer.

The people who work at the front-end of a retail organization are very important,

as they are the manners and products knowledge plays a very important role in building

long term relations with the customer.

Physical Evidence:-

It refers to the way product, service, and everything about the retail store, appears

from the outside. Decisions need to be made about the size, shape, colour, material, UPC

bar code, and label of the packaging. It should be customer tested and updated when

needed. It should fall in line with retailers other product offerings as well. Packaging

involves the visual layout, practical setup, and when needed for products, clear and precise

installation instructions.

Physical Evidence can also refer to the people within company and how they dress

and act. It can refer to how your office is set up, the professionalism of your staff, nice

brochures, how you interact with your customer base, and every single visual element

about company.

60
Learning Process for Summer Training at Big Bazaar

The following learning process for summer training at Big Bazaar, Phoenix United Mall,

Lucknow was prepared by me. According to this learning process, I had to undertake my

summer training in Big Bazaar. The learning process is given below in brief:-

Merchandising:-

This includes

Inward,

Display,

Replenishing (FIFO),

Offer Updating,

Top Selling SKUs,

Bottom Line SKUs,

Liquidation Process,

Defective Goods Handling (DAD- Damage & Defective),

Margins,

Buying,

Outward,

Stock take.

61
Customer Service

It has

CSD (Customer Service Desk) Operations,

Customer Movement,

Customer Touch Point,

After Sale Services,

Home Delivery,

Alteration and Customer Grievance Handling.

Visual Merchandising

It has Signage,

Details of Materials,

VM Frames,

Shelf Talkers,

Focal Point/ Hot Spots,

Execution of Promotions,

Communication of Offers,

Directional Signages in the Store,

Window Display.

62
Cash Department

It works on Cash Till Operations,

Billing Process,

Handling Cash,

Tallying Cash,

Allocation of Till wise Cashiers,

Depositing of Cash in Bank,

Shortage/ Excess Cash Treatment,

All Modes of Payments,

Checking of Currency Note,

Foreign Exchange,

Cash Float of Cashier,

Grab Process,

Currency Handling & System.

Information Technology

REM Knowledge,

SAP Knowledge,

System Generated Report,

Stock Adjustment,

Scheme Updating

63
 Hardware Knowledge

Day Closing Activity.

Human Resources

PERK,

Sanjeevani,

Fun Zone,

Atithee,

Employee of the Month,

HR Policies,

Prerna,

Staff In / Out Management,

Saturday Meeting,

Payroll Process,

Skip Meeting.

Operations

Entire SOP,

Opening of Stores,

H. K. Activities throughout the Day,

Security Activities,

H. K. positioning,

64
 Security Positioning,

Discipline & Attire Check of Security & H. K.,

Parking Management,

Trolley management,

Scrap Disposal process,

Waste Management,

Daily Check Points,

Fixed Asset Knowledge,

AMCs Checklist of Fire Safety Equipments,

A/Cs, Electricals, Lifts, Invertors, Chakkis,

DGs, LPC Process & Team Management.

65
 Objective of the Study

The main objective of the project is:

To get practical training of what we have learnt theoretical in the classroom. In

other words, it was to get practical exposure of all the marketing skills and how to

implement in the real situation.

The sub-objectives of the project are:

To look at the current trends in the Indian organized retail industry.

To understand the Big Bazaar organization as how systematically it is run by the

management personnel.

To know the customer queries, comments and suggestions about the store and its

products.

To understand customer base of Big Bazaar (through questionnaire)

To know about the promotional activities done at Big Bazaar to increase the sales.

66
 Research Methodology

Since the study is on retail sector first the detail observation of the store is been

conducted about its Management team, its structure, the number of departments, which

all brands does the store has, who are its suppliers about its warehouses etc.

Based on the topic objectives a questionnaire was designed which consist of 10

questions and response is collected from the customers who are visiting the store. For

data collection convenient sampling method was adopted

For this project the area of research is Big Bazaar, Phoenix United Mall, Lucknow (U.P.)

Data Collection Method:

Market research requires two types of data i.e. Secondary data and Primary data. Primary

data has been used abundantly for the study. Questionnaire is prepared & the survey was

undertaken. Feedback and suggestion for the store has been taken by asking questions

and observation has also done to gather primary information.

Primary Data: In Store customer survey through Questionnaire

Secondary Data: Journal, Annual Reports, Company Manual & websites.

Location of Research: Big Bazaar, Lucknow

Research Approach: Survey Method

Research Design: Descriptive Research

67
Sampling Method:

Since the study is restricted to Retail sector, all the functional departments of Big Bazaar

and the respondents are found at the store only so according to the convenience they are

being picked so sampling method is used in this study is convenient sampling.

Sample Size: 50 Respondents

Sampling Method: Convenience Sampling

Sample Unit: Customers of Big Bazaar

Measuring Tool: Questionnaire

68
LIMITATION OF THE STUDY:

The present research is restricted to the customers visiting store only.

The sample size taken is only 50 and as such is very small as compared to the

universe, this is due to the constraints of time and effort,

Respondents might have responded with the actual feelings of facts while giving

responses to the questionnaire.

Time Constraint

While every care has been taken to eliminate perceptual bias from the side of the

researcher and the respondents however certain element of bias might have set in

to the research inadverantly.

69
 DATA ANALYSIS

1) Gender:

44% Male
Female
56%

Interpretation:

As per the above chart 44% respondents were female and 56% respondents were male who

have filled the questionnaire. It clearly shows that female are more interested in shopping

at big bazaar which provides all kind of products.

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2) Age Group:

Above 60 Years

40-60 Years 8%

31-40 Years 14%

26-30 Years 8%

18-25 Years 70%

Below 18 Years

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

Below 18 Years 18-25 Years 26-30 Years 31-40 Years 40-60 Years Above 60 Years
Response 0 70% 8% 14% 8% 0

Interpretation:

As per the above chart it is clear that most of the people belong to age group 18-25

Years followed by 31-40 Years than 26-30 Years and 40-60 Years. So on an average

customers age is in between 18-30 Years who visit the store the most. It shows that

Younger Generation is more into shopping at departmental store.

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3) What is your family monthly income?

16%
32% Less than 20,000
20,000 - 30,000
24% 30,000 - 40,000
Above 40,000

28%

Interpretation:

As per the above chart it is clear that most of the respondents who came to visit and filled

the questionnaire have family monthly income Above 40,000, followed by 30,000-

40,000Rs, followed by 20,000-30,000Rs. So on an average most of the people were having

family income more than 30,000Rs. Monthly. Only 16% People are having less than

20,000Rs. Family Monthly income. It clearly shows that as the income of the people

increases there shopping habits changes and they tend to shop more from stores and malls.

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4) How often do you shop in a month from Big Bazaar?

40% 34% 1-3 Times

3-6 Times
More than 6 Times
As Per Requirement

4%
22%

Interpretation:

As per the above chart most of the people 40% shop as per requirement when they

need, followed by the people who shop 1-3 times, than 3-6 times and very small amount

of people 4% said more than 6 times.

The majority of the people who said as per requirement can also be counted under the 1-

3 times and 3-6 times category as well. One thing quite mentioning here is people are not

sure.

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5) How do you go for shopping?

48% Spot Purchasing

Planned Purchasing
52%

Interpretation:

As per the above chart there not so much difference in both the options given and people

do shopping with pre planned list and as well as spot purchasing, still planned purchasing

is leading with 4% which shows that people prepare some sort of list before going for

shopping as because it feels convenient to them.

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6) What do you mostly shop at Big Bazaar?

Others 30%

Furniture/Home Utensils 8%

Food Items 70%

Clothings 60%

Electronics 12%

Groceries 44%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Furniture/Hom
Groceries Electronics Clothings Food Items Others
e Utensils
Response 44% 12% 60% 70% 8% 30%

Interpretation:

As per the above chart most of the people 70% shop Food Items followed by 60% people

Clothings, followed by 44% people Groceries, than other things. Very small amount of

people shop Electronics and Furniture/ Home Utensils from big bazaar. It means that

people are more interested in food items and fashion because as per age group analysis

most of the respondents were younger generation above 18 years and below 30 years.

75
7) Why do you shop at Big Bazaar?

Near To Home 10%

Convenience 44%

Value For Money 24%

Low Prices 42%

Quality 52%

0% 10% 20% 30% 40% 50% 60%

Quality Low Prices Value For Money Convenience Near To Home
Response 52% 42% 24% 44% 10%

Interpretation:

As per the above chart people are more attracted towards big bazaar because of the Quality

, followed by Convenience and very close to it Low Prices. It clearly shows that big bazaar

is able to provide quality products to the customer. But it can also be seen that still a decent

amount 24% people were not satisfied with the value for money.

76
8) Whom you prefer mostly to go shopping at Big Bazaar?

Self/ Alone 38%

With Friends 38%

With Family 54%

0% 10% 20% 30% 40% 50% 60%

With Family With Friends Self/ Alone

Response 54% 38% 38%

Interpretation:

As per the above chart people enjoy more going on shopping at Big Bazaar with Family

(54%) followed by equal percentage of people 38% -38% each in Alone and With Friends.

It means that people enjoy more with families in Big Bazaar because it provides all the

products which every family need day to day.

77
9) Are you aware of promotional offers running time to time?

30%
Yes
No

70%

Interpretation:

As per the above chart 70% of the people are aware of the promotional offers running time

to time and only 30% are not aware, it means promotional activities are done quite

effectively still they need more work to reach more people and decrease the amount of

people who are not well aware about promotional offers run by Big Bazaar time to time.

78
10) Where do you find the following better?

90%
78%
80%
70% 70% 70%
70%

60%

50% 44%
40%
30% 30%
30%
22%
20% 15%

10% 6%

0%
Promotional
Price Quality Product Range Ambience
Offers
Big Bazaar 70% 70% 78% 44% 70%
Other Retailer Stores 30% 30% 22% 6% 15%

Big Bazaar Other Retailer Stores

Interpretation:

As per the above chart in each standard people find Big Bazaar better from Price, Quality,

Product Range, Offers, and Ambience but in the product range people are more satisfied

with big bazaar. Other Retailers are competent in Price and Quality higher than other

aspects still Big Bazaar hold and edge towards them.

79
11) In which category you are not satisfied with the availability of the products at
the store?

Others 26%

Furniture/Home Utensils 24%

Food Items 14%

Clothings 30%

Electronics 34%

Groceries 14%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Furniture/Hom
Groceries Electronics Clothings Food Items Others
e Utensils
Response 14% 34% 30% 14% 24% 26%

Interpretation:

As per the above chart people are not satisfied mostly 34% with the Electronic products,

followed by Clothings around 30% people because they want more brands, than

furniture/home utensils 24% people and 26% people with other items.

It shows that Big Bazaar has to work more on the electronic section which comes under

the E-Zone and Under clothings they need to provide some external brand except their

own brands and very few others.

80
12) Have you ever faced any of these problems during billing?

No Problem 50%

Very Slow Billing Process 40%

Price Mismatch 14%

Offers Not Updated 12%

No Bar Code 12%

0% 10% 20% 30% 40% 50% 60%

Offers Not Very Slow Billing
No Bar Code Price Mismatch No Problem
Updated Process
Response 12% 12% 14% 40% 50%

Interpretation:

As per the above chart people face mostly very slow billing process and vast majority of

the people are having no problems at all. A very few others problems that occurs mostly

are Price mismatch, offers updating and no bar code which occurs not so much.

For slow billing process they need to open more counters on rush timings and some more

advanced training to staff to keep the customers motivated and tensed free.

81
13) Do you feel customer service desk is effective in handling customer grievances?

38% 44% Yes

No
Some Times

18%

Interpretation:

As per the above chart customer service desk is effective in handling customer grievances

still a decent amount of people are not satisfied and 18% people feels only sometimes they

are effective in handling customer problems.

Customer grievances handling can help the Big Bazaar to make the customer come back

again if handled with respect and importance.

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14) Rate the Sales Personnel at Big bazaar in the following-

70%
60%
50%
40%
30%
20%
10%
0%
Overall, How would You
Staff Was Available In A Staff Answered Your Behaviour of Staff
Rate Customer Service
Timely Manner Questions Members
of Big Bazaar
Excellent 30% 30% 26% 26%
Good 46% 48% 60% 60%
Average 18% 16% 14% 14%
Fair 6% 6% 0 0
Poor 0 0 0 0

Excellent Good Average Fair Poor

Interpretation:

As per the above chart mostly people are satisfied with the sales personnel at Big Bazaar

because almost more than half of the people have rated around 48%-60% in good criteria

which is a good thing and so many people have rated even Excellent. Still there are people

who were not having good experience with staff with in between 6%-14% people.

Despite of small amount of people not satisfied Big Bazaar has to make the staff

personnel more and more better for the customers in behavior and query handling and make

them feel comfortable while shopping.

83
 FINDINGS

As a matter of fact, this summer internship was fruitful for me as I learnt many

management skills practically during training period at Big Bazaar. Right from the

beginning of my training I observed so many things which are the part of daily routine of

Big Bazaar.

I also learnt how to apply all the management skills in the real situation in any

organization. During my on the job training, however, I observed the following things at

Big Bazaar, Udaipur:-

Everyday many people came only for visit at Big Bazaar.

The foot- falls of customers are good at Big Bazaar, Phoenix United Mall,

Lucknow.

Mostly middle class family prefers Big Bazaar.

Customers come at Big Bazaar because it gives the huge discounts and offers.

During big days (5 Days Mahabachat), it has huge crowd of customers and the sale

is very high.

The offers/discounts changed any time if there is technical problem or shortage of

stock.

Team members sometimes do not pay proper attention to the customers on the floor.

Signages were not maintained on the floor by team members.

84
 There were many cash counters at the store but they didnt open every day. All cash

counters are open only on festival season or on the mega offers of Big Bazaar.

The order processing take huge time and sometimes gets delayed due to lack of

stock at the vendor side.

The collection of vegetables and fruits are done from local markets and local

farmers.

There was at least one meeting of Store Manager with employees in a week.

Communication between the employer and employee is good.

Employees have the good knowledge about the products in their own sections.

Team Leaders do their work very efficiently.

85
 SUGGESTIONS/RECOMMENDATIONS

The following suggestions could be made for the better performance of Big Bazaar,-

Review of everyday discounts/offers at signage whether they are updated properly

or not.

Signages should be displayed properly on the floor and near the entrance gate.

More security gadgets and checks should be there to control thefts and employees

working.

Availability of products in each size should be at the floor.

At least 6 to 8 cash counter should remain open every day to avoid crowd at cash

counter.

Increase the number of supporting staff (team members) on the floor of Food

Bazaar to pay proper attention to the customers.

Increase the brand and products range in the Food Bazaar to increase the sale.

Interaction should be there between employees and customers.

Sitting arrangement and drinking water facilities on the floor for customers should

be maintained as because there is no facilities like this.

The arrangement of merchandise should be proper on the floor.

Some motivational classes should be given so that it keeps the team members and

team leaders and employees to work more effectively.

Time to time some fun activities should be organized so the organization doesnt

looks like just work place instead a fun to work place.

Some strict rules and regulations about theft, fraud etc to make sure people try to

get away from these malpractices.

86
 Conclusion
From all the available results this can be concluded that people have huge

expectations from the company. They not only want all the things they are getting from

other companies but in addition they also want some other benefits which in turn can give

them security of being a part of Big Bazaar as a customer in long run.

Big Bazaar has many brands in Food Bazaar such as Nestle, HUL, Cadbury, Amul,

Tata, Parle, Bikaji, Marico, Adanis Suffola, etc. but after that they do not have the large

product range of these brands that is why they are losing their customers. Since many

customers have different brand preferences.

In Food Bazaar they have big brands as mentioned above but many times they do

not achieve the target due to the arrangements of merchandise is not good and employees

interaction with customers are very less.

However, Food Bazaar contributes almost 50% of daily sale of the store. But

sometimes in normal days, Food Bazaar does not achieve the target. In fact, during festival

offers and Big Days, Food Bazaar has the major contribution in attracting customers and

increasing the store sale.

So we can say that customers want huge offers and discounts. If Big Bazaar gives huge

discount and offers, it will definitely increase its sales.

All the customers know about the Big Bazaar that is:

Isse Sasta aur Accha Kahi Nahi

87
 Although Big Bazaar provides many services yet there are many areas where

customers demand for more than what they should get and which is beyond company

policy like, free servicing, additional free gifts and extra term benefits.

Company also facing some problems from its previous customers side that had

some bad experience about the company product and service. It is due to the less attention

of team members to the customers and not giving them complete information about the

products. Big Bazaar also needs good service at CSD for their customers. In brief, the

organization is working on all these aspects continuously by filling feedback forms from

customers and conducting market research on products range and customers preferences.

88
 Bibliography

The lists of reference for the purpose of completing this marketing project are as given

below:

BOOKS:

Marketing Management Kotler ,Keller, Koshy, Jha Pearson Education

Twelfth edition pg 15-16,22-23,48-50,146-150

Retailing Management Levy Weitz Tata Mcgrawhill Publication Company

Limited Fifth edition pg no 106-110,114-134, 218,228-230 ;244-252

WEBSITES:

http://futureretail.in/

http://www.futuregroup.in/

http://www.ibef.org/industry/retail-india.aspx

http://www.ibef.org/industry/retail-india.aspx

http://info.shine.com/industry/retail/7.html

https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documen

ts/BBG-Retail.pdf

89
 APPENDIX
QUESTIONNAIRE

PERSONAL INFO-

Name: - __________________________

Gender:-

o Male
o Female

Age Group:-

o Below 18 Years o 31-40 Years

o 18-25 Years o 40-60 Years
o 26-30 Years o Above 60 Years

Occupation: - ____________________

Locality: -________________________________

Mobile NO: - _____________________________

Email id: - ________________________________

Answers the questions on the basis of your experiences with Big Bazaar & Retail
Industry:-

1) What is your family monthly income?

(A) Less than 20,000

(B) 20,000-30,000

(C) 30,000-40,000

(D) Above 40,000

90
2. How often do you shop in a month from Big Bazaar?

1-3 times More than 6

3-6 times As per requirement

3. How do you go for shopping?

Spot Purchasing (Unplanned)

Planned Purchasing

4. What do you mostly shop at Big Bazaar?

Groceries

Electronics

Clothings

Food Items

Furniture / Home Utensils

Others

5. Why do you shop at Big Bazaar?

Quality

Low Prices

Value for Money

Convenience

Near To Home

91
6. Whom you prefer mostly to go shopping at Big Bazaar?

With Family

With Friends

Self / Alone

7. Are you aware of promotional offers running time to time?

Yes

No

8. Where do you find the following better-

At Big Bazaar Other Retailer stores

Price

Quality

Product Range

Promotional Offers

Ambience

9. In which category you are not satisfied with the availability of the products at the
store?

Groceries

Electronics

Clothings

Food Items

Furniture / Home Utensils

Others

10. Have you ever faced any of these problems during billing? *

92
No Bar Code

Offers Not Updated

Price Mismatch

Very Slow Billing Process

No Problem

11. Do you feel customer service desk is effective in handling customer grievances?

Yes

No

Some Times

12. Rate the Sales Personnel at Big bazaar in the following-

Excellent Good Average Fair Poor

Staff was available in a timely manner

Staff answered your questions

Behaviour of staff members

Overall, how would you rate customer

Service of big bazaar?

93