INDUSTRY PROFILE

Retail industry largest industry, accounting for are 10% of the country’s GDP and
around 8% of the employment retail industry in India is at the cross roads. It has emerged as
one of the most dynamic and fast paced industry with several players entering the market, but
because of the heave initial investment required breakeven is difficult to achieve and many of
these players have not tasted success so far.
However the future is promising; the market is growing, government policies are
becoming more favorable and emerging technologies are facilitating operations. Retailing in
India is gradually inching its way towards becoming the next boom industry. The whole
concept of shopping has altered in terms of format and consumer buying behavior ushering in
a revolution in shopping in India.

SOMEKEY FACTORS
 RETAIL IS India’s largest industry accounting for over 10% of the country’s GDP and
around 8%of the employment.
 The market size of the Indian retail industry is about US $312 billion.
 Retailing in India is gradually inching its way towards become the next boom industry.
 A large young working population with average age of 24 years

The Retail Marketing Revolution - An Introduction

“Any business that directs its marketing efforts towards satisfying the final consumer
based upon the organization of selling goods and services as a means of distribution”

By 2010, the list of India's top 10 retailers will have at least 5 Indian corporate. Retail
Marketing will go through a tremendous change in India this millennium. It will change
India's cities, its people, and its households. The Indian consumer is reportedly the largest
spender in Singapore and London. It is, therefore, strange that there have, so far, been few
efforts to present the product in the right kind of environment in India.
Indeed, the right shopping experience does induce Indian consumers to spend more. This is
evident from the experiences of retail-outlets like Music.

World, Big Bazaar, Spencer’s, Crosswords, The Home Store, Ebony, Bigjo’s, Saboos,
Standard, Nanz, Vijay Store and Janaki Das & Sons, Westside etc.

Factors affecting Retail marketing

The development of organized retail is dependent on the efforts of several agencies and
institutions. A glimpse of the last 2 decades of the previous century proves illuminating.
Large-format retailing started with outlets like Vivek's and Nalli's in Chennai and Kidskemp
in Bangalore, and, at another level, with manufacturer-retail brands like Bata, Bombay
Dyeing, and Titan.

Government:

The first among these is the government. In a country as big as India and with as many states
as ours, it is imperative that the Central government and all state governments bring in Value
Added Taxation or a unified taxation system to ensure that the tax-regimes are the same
across the country.

The laws governing retail real estate should also be looked into, so that it is possible to
develop retail-estate beyond the city-limits. Apart from providing entertainment and retail
opportunities, this will also decongest the city center and facilitate the development of
suburbs. The relevant rules should also be amended to allow retail-stores to operate 7 days a
week, 12 hours a day.

Nuclear Families:

Given the hours most urban consumers keep at work, and keeping in mind the increase in the
number of nuclear families, this may, indeed, make sense. This will also help people enjoy
their evenings, out at malls.
Developers:

The second group, whose participation is essential in making retail a boom-sector in this
millennium, comprises developers. Most properties are developed without considering the
end user; thus, we sometimes find high-
Ceilinged offices and low-ceilinged retail stores. Often, the shopper's convenience is not
taken into consideration while the property is constructed.

Manufacturers:

There's a lot at stake here: even so early in the 21st Century, India is too large a market to be
ignored by transnational retail giants. From the manufacturing company's perspective, the
focus should be on producing good products, and forging relationships with organised retail.
Manufacturers need to draw a plan of producing quality products and tie in with retailers.
Indeed, the birth of organised retail will also engender the creation of private labels and
store-brands. Thus, if a manufacturing company lacks the resources to build a brand, it can
supply to a retail-chain that has the resources to create a brand of its own.

Indian Consumers:

And even as these developments were taking place, the Indian consumer became more
mature. Customer-expectations zoomed. Thus, at the beginning of the New Millennium,
retailers have to deal with a customer who is extremely demanding. Not just in terms of the
product-quality, but also in terms of service, and the entire shopping experience.

Today, the typical customer who shops in a retail outlet compares the time spent at the check-
out counter with that at an efficient petrol station, and the smile of the counter-person to that
decorating the face of a Jet Airways' crew member. To cope with the new customer,
manufacturers have to focus on product quality and brand building. And retailers, in turn,
have to focus on the quality of the shopping experience.

In this millennium, like in the last, customers will want to spend time with their family and
friends. They may like to visit an outlet on weekends where everything will be available
under one roof. India will benefit from these developments
because of increased consumption through retailing and the corresponding increase in
employment created by retailing.

Retail organizations exhibit great variety and new forms keep emerging. There are store
retailers, non store retailers, and retail organizations.

Consumers today can shop for goods and services in a wide variety of stores. The best-known
type of retailer is the department store. Japanese department stores such as Takashimaya and
Mitsukoshi attract millions of shoppers each year. These stores feature art galleries, cooking
classes, and children’s playgrounds.

The success of the retail stores, therefore, depends on customers’ reaction to the retailing mix
which influences the profits of the store, its volume of turnover, its share of the market, its
image and status and finally its survival.

Trends In Retail Marketing

At this point, I can summarize the main development retailers and manufacturers need to take
into account as they plan their competitive strategies.
In India the trends are mainly in three sectors. These sectors are:

Trends in retail marketing

Urban Suburban Rural

New retail forms and combinations continually emerge. Bank branches and ATM counters
have opened in supermarkets. Gas stations include food stores that make more profit than the
gas operation. Bookstores feature coffee shops.

The electronic age has significantly increased the growth of non store retailing consumers
receive sales offers in the mail and over television, computers, and telephones, to which they
can immediately respond by calling a toll-free number or via computer.

Competition today is increasingly intertype, or between different types of store outlets.

Discount stores, catalog showrooms, and department stores all compete for the same
consumers. The competition between chain superstores and smaller independently owned
stores have become particularly heated. Because of their bulk buying power, chains get more
favorable terms than independents, and the chains’ large square footage allows them to put in
cafes and bathrooms.

Today’s retailers are moving toward one of two poles, operating either as mass merchandisers
or as specialty retailers. Superpower retailers are emerging. Through their superior
information systems and buying power, these giant retailers are able to offer strong price
savings. These retailers are using sophisticated marketing information and logistical systems
to deliver good service and immense volumes of product at appealing prices to masses of
consumers.

Many retailers are even telling the most powerful manufacturers what to make; how to price
and promote; when and how to ship; and even how to reorganize and improve production and
management. Manufacturers have little choice: They stand to lose 10 to 30 percent of the
market if they refuse.

Technology is becoming critical as a competitive tool. Retailers are using computers to

produce better forecasts, control inventory costs, order electronically from suppliers, send e-
mail between stores, and even sell to
Customers within stores. They are adopting checkout scanning systems, electronic funds
transfer, and improved merchandise-handling systems.
Retail Marketing In India

There are various ways of making goods available to consumers like:

 Company to distributor to wholesaler to retailer to consumer

 Company to salesperson to consumer
 Company to consumers (online/ phone/ catalog ordering)

These three are among the most common ways of making the goods available to consumers.
But in India the three layered system of distributor, wholesaler and retailer, forms the
backbone of the front-end logistics of most of the consumer-good companies.

There are a number of reasons behind this fragmented retail market. Some of the major
reasons being:

 Poverty and lower literacy levels.

 Low per capita income.
 Savings focused and less indulgence mindset.
 Poor infrastructure facilities like roads etc.
 Restrictions on intra-state good movement.
 High taxes.
 No exposure to media.
 High import duties on imported goods.
 FDI in retailing is not allowed.
 COMPANY PROFILE

Future Group

Mr. Kishore Biyani CEO, Future Group

 Future Group, led by its founder and Group CEO Mr.
Kishore, Biyani, is one of India’s leading business houses
with multiple businesses spanning across the
consumption space. While retail forms the core business
activity of Future Group, group subsidiaries are
presenting consumer finance, capital, insurance, leisure
and entertainment, brand development, retail real estate
development, retail media and logistics. Led by its
flagship enterprise, Pantaloons Retail, the group operates over 12 million square feet of retail
space in 71 cities and towns and 65 rural locations across India. Headquartered in Mumbai
(Bombay), Pantaloons Retail employs around 35,000 people and is listed on the Indian stock
exchanges. The company follows a multi-format retail strategy that captures almost the entire
consumption basket of Indian customers. In the lifestyle segment, the group operates
Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment,
its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel
of Indian bazaars with the choice and convenience of modern retail. In 2008, Big Bazaar
opened its 100th store, marking the fastest ever organic expansion of hypermarket.

The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore. The
group’s specialty retail formats include, books and music chain, Depot, sportswear retailer,
Planet Sports, electronics retailer, Ezone, home improvement chain, Home Town and rural
retail chain, Aadhar, among others. It also operates popular shopping portal, futurebazaar.com.

Future Capital Holdings, the group’s 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 group’s insurance venture in partnership
with Italy’s 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 group’s 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
centers, 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 Group’s joint venture partners include, US-
based stationery products retailer, Staples and Middle East-based Axiom Communications.
Future Group believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas, as espoused in the group ‘score value of ‘Indianans.’ The
group’s corporate credo is, ‘Rewrite Rules, Retain values.

Board of Directors

• Mr. Kishore Biyani, Managing Director

Kishore Biyani is the Managing Director of Pantaloons Retail (India) Limited and the Group
Chief Executive Officer of Future Group.

• Mr. Gopikishan Biyani, Whole time Director

Gopikishan Biyani is a commerce graduate and has more than twenty years of experience in
the textile business.

• Mr. Rakesh Biyani, Whole time Director

Rakesh Biyani is a commerce graduate and has been actively involved in category
management; retail stores operations, IT and exports. He has been instrumental in the
implementation of the various new retail formats.

• Mr. Vijay Biyani, Whole time Director

Vijay Biyani has more than twenty years of experience in manufacturing, textiles and retail
industry and has been actively involved in the financial, audit and corporate governance related
issues within the company.

• Mr. Vijay Kumar Chopra, Independent Director

V.K.Chopra is a fellow member of The Institute of Chartered Accountants of India (ICAI) by

profession and is a Certified Associate of Indian Institute of Bankers (CAIIB).His banking
career spans over 31 years and he has served senior management positions in Central Bank of
India, Oriental Bank of Commerce, SIDBI, Corporation Bank and SBI.
• Mr. Shailesh Haribhakti, Independent Director

Shri Shailesh Haribhakti is a Chartered Accountant, Cost Accountant, and a Certified Internal
Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered Accountants and
past president of Indian merchant Chambers. He is on the Board of several Public Limited
Companies, including Indian Petrochemicals Corporation Ltd. Ambuja Cement Eastern Ltd.
etc. He is on the Board of Company since June 1, 1999.

• Mr. S Doreswamy, Independent Director

S. Doreswamy, is a former Chairman and Managing Director of Central Bank of India and
serves on the board of DSP Merrill Lynch Trustee Co and Ceat Limited among others.

• Dr. D O Koshy, Independent Director

Dr. Darlie Koshy, a PhD from IIT Delhi and rank holder in MBA headed NID (Ministry of
Commerce, GOI) as Director for 2 terms of office prior to which he was the founding
Chairperson of Fashion Management at the National Institute of Fashion Technology(Ministry
of Textiles, GOI).

• Ms. Bala Deshpande, Independent Director

Bala Deshpande is Independent Director, Pantaloon Retail (India) Ltd. and also serves on the
boards of Deccan Aviation, Nagarjuna Construction, Well spun India and Indus League
Clothing Ltd, among others.

• Mr. Anil Harish, Independent Director

Anil Harish is the partner of DM Harish & Co. Associates & Solicitors and an LLM from
University of Miami. He also serves on the board of Mahindra Gesco, Unitech, Indusind Bank
and Hinduja TMT, among others.

Key Group Companies:

Retail

BiG Bazaar - Hypermarket chain

Food Bazaar - Supermarket chain

eZone - Electronics superstore

HomeTown - Home improvement and building materials store

Central - Seamless department store

Planet Sports - Sportswear retailer

Aadhar - Rural retail chain

KB’s Fairprice - Urban low-frills neighbourhood store

Futurebazaar.com - Shopping portal

Services

While retail forms the core business activity of Future Group, group subsidiaries are present in
leisure and entertainment, brand development, retail real estate development, retail media and
logistics. Some of our other businesses include, mobile telephony brand, T24, operated in
association with Tata Teleservices, a supply chain and logistics Infrastructure Company, and a
company engaged in providing educational and training services through three Future
Innoversity campuses in Ahmadabad, Bangalore and Kolkata.

Finance

In the financial space, our group companies offer consumer finance and insurance to customers,
as well as corporate loans and equity investments to companies engaged in consumer
businesses.
 Group Vision, Mission and Core value

Group Vision

Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer
in the most profitable manner.

Group Mission
•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.

• We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments – for classes and for masses.

• We shall infuse Indian brands with confidence and renewed ambition.

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

• We shall ensure that our positive attitude, sincerity, humility and united determination shall
be the driving force to make us successful.

Core Values

• Indianess: confidence in ourselves.

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

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

• Introspection: leading to purposeful thinking.

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

• Valuing and Nurturing Relationships: to build long term relationships.

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

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

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

ABOUT BIG BAZAAR

Big Bazaar was launched in September 2001 with the opening of its first four stores in Calcutta,
Indore, Bangalore, and Hyderabad in 22 days. Within a span of ten years, there are now 161
Big Bazaar stores in 90 cities and towns across India.

Big Bazaar was by Mr. Kishore Biyani, the Group CEO and Managing Director of Pantaloons
Retail India. Though Big Bazaar was launched purely as a fashion format including apparel,
cosmetics, accessory and general merchandise. Over the years Big Bazaar has included a wide
range of products and service offerings under their retail chain.

The FutureBazaar.com’ promise as given by the General Manager:

Manufacturer’s warranties on all products

Future Bazaar sells only original products from authorized dealers; so all applicable
products carry the original manufacturer’s warranty. Customers can visit any of the
authorized service centers of the manufacturer if required. The invoice accompanying the
product is your warranty document, so please preserve it.

Guaranteed Delivery

Future bazaar guarantees to deliver the exact product you selected, without defects. In case
you have received a different product, or if the product was damaged in transit, please let
us know and we will ensure that we replace the product or ensure that your money is
refunded. Please note that delivery times vary according to products to products 95%of our
deliveries take place within the committed time period. For the occasional delays, we will
contact you and update you about the status.

Secure Payments

We are committed to ensuring that no payment misuse happens, so we work with bank and
payment gateways to ensure that your information is protected. Payments are protected
both by us and by the policiesof your bank, and the chances of fraud in these channels are
actually very low.

We also have a Risk Management team that scrutinizes all payments to ensure that there
are no fraudulent transactions. Our office address is also available for anyone who wishes
to contact us in person. moreover, being part of India’s largest retail company with a
presence all over India, we are omnipresent.

Our simple 15-Days Return Policy – No questions asked!

If you have purchased something at FutureBazaar.com ad the product did not meet your
expectations or does not fit your needs, then you can return the product to us, no questions
asked, as long as it is in its original packaging and accompanied by its invoice. Just contact
our Customer Care and we’ll arrange to pick up the product from your home – simple.

Prompt Customer Support

Our Customer Care is manned by dedicated personnel, who can take decisions and resolve
your problems. They are empowered to solve your problems and are aware of the processes
and means to handle them. In case they cannot solve the problem at their end, they will
trigger the required action on your half or advise you the best possible method to a
successful fulfillment of all your queries/issues. Be assured that when you call us, your call
is being taken seriously.

ABSTRACT

The field of consumer behaviour is very vast. Consumer make numerous decisions every
day; sometimes even when they are not consciously aware of how and why they have made
a choice. The respondents are chosen by convenience sampling. In AMOS 20, CFA and
Path Model used in this study. From the findings, the researcher concluded that Prestige
Sensitivity (PS), Price Quality Schema (PQS), Local Retailer Shop Loyalty (LRSL), Value
Consciousness (VC), Price consciousness (PC), Coupon Proneness (CP), Sales Proneness
(SP) are factors for buying behaviour of consumer and these factors highly influenced on
consumer buying behaviour.
 RESEARCH METHODOLOGY

The survey technique is intended to secure one or more items of information from a
sample of respondents who are representatives of a larger group. The information is recorded
on a form known as questionnaire. As data are gathered by asking questions from persons who
are believed to have desired information, the method is known as questionnaire technique.

REASONS FOR WIDE USE OF THIS METHOD:

 It can secure both quantitative and qualitative information directly from the
respondents.
 It is the only method of directly measuring attitudes and motivations.
 It is quite flexible in terms of the types of data to be assembled, the method of collection
or the timing of research.

Meaning of Research

According to D. Slessinger and M. Stephenson in the Encyclopedia of social sciences

define research as “the manipulation of things, concepts or symbols for the purpose of
generalizing to extend, correct or verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art”.

TYPES OF RESEARCH

1. Exploratory Research,
2. Descriptive Research.

Exploratory Research:

Exploratory research studies are also termed as formulate research studies. The main
purpose of such studies in that of formulating a problem for more precise investigation or of
developing the working hypothesis forms an operational point of view.
Descriptive Research:

Diagnostic Research studies determine the frequency with something occurs or its
association with something else.

In this project, information pertaining to customer needs satisfaction and their

demographic profile was collected; hence it is a descriptive research.

1) Primary data: Primary sources of data are the data which needs the personal efforts of
collect it and which are not readily available. Primary source of data are the other type of
source through which the data was collected.
Following are few ways in the data was collected:

1. Questionnaires: It is the set of questions on a sheet of paper was being given to fill it,
bases on which the data was interpreted.
2. Direct interviewing: Direct interviewing involved the process where i asked the questions
directly to the customers and I got the feedback.

2) Secondary data: Secondary sources are the other important sources through which the data
was collected.These are the readily available sources of the data where one had need not put
much effort to collected, because it is already been collected and part in an elderly manner by
some researcher, experts and special.

The secondary sources helpful for the study were

1) Text books like marketing management research methodology, advertisement and

sales promotion etc.
2) Internet was made use for the collection of the data.
3) Newspapers were also referred.
4) Business magazines were referred.

1. Sample size: By using judgment random sampling technique 100 respondents are
selected for the purpose of the study.
2. Period of study: The study is undertaken in the duration of 35 days.
3. Research approach: The survey method was adopted for collected the primary data.
Survey research is systematic gathering of data from respondent through questionnaire.
4. Research instrument: The data for this research study was collected by survey technic
using interview method guided by questionnaire.
5. Collection of Data: Questionnaire and personal interviews are the methods that I have
used for collecting the data.