PROJECT REPORT

OF
QUANTITATIVE TECHNIQUES FOR MANAGERS
ON
BIG BAZAAR
“IS IT A LOOSER OR SUCCESS
AMONG CONSUMERS ?”

INSTITUTE OF MANAGEMENT STUDIES,

GHAZIABAD (U.P.)

DECLARATION

We hereby declare that this submission is our own work & to the best of our knowledge & belief, it

contains neither the material previously published or written by another person nor material which to a

substantial extent has been accepted for the award of any other degree or diploma of the university or

other institute of higher learning except where due acknowledge has been made in the text.

1
Date: 1st January, 2010

CERTIFICATE

ACKNOWLEDGEMENT

Perseverance, inspiration and motivation have always played a key role in the success of any venture. A

successful and satisfactory completion of any project is the outcome of the invaluable aggregate

2
contribution of different personal fully in radical direction, explicitly or implicitly.

Whereas vast, varied and valuable reading efforts leads to substantial acquisition of knowledge via

books and allied information sources, true expertise excludes from collateral practical works and

experiences.

Words have never seemed as inadequate as now, when we are endeavoring to express our heartfelt

gratitude at the culmination of the project, to all those made it possible. Even the best effort is waste

without proper guidance and advice. We highly solicit to DR. SADIA SAMAR ALI, Faculty, Institute

of Management Studies, for launching us into this foray. We are indebted to her for giving time-to-time

suggestion and their valuable guidance, co-operation, inspiration and keen supervision to our project.

Last but not the least; we are grateful to God, our parents, elders and friends for encouraging us to take

up this challenging task.

Table of contents

SL. NO. CONTENTS PAGE NO.

1 Introduction of report 6

2 Objective 7

3 Research Methodology 8

3
 4 Brief History of the 9-11
organization

5 Company’s vision, mission 12-13

and core values

6 Performance 14-15
products/services

7 Analysis of data collected 16-23

8 Statistical tools 24-35

9 Conclusion 36

10 Recommendation 37

11 Scope of study 38

12 Limitations 39

13 References 40

14 Annexure 41-43

INTRODUCTION OF THE REPORT

The Indian Retail Industry is the largest among all the industries, accounting for over 10 per cent of the

country’s GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as

one of the most dynamic and fast paced industries with several players entering the market. The whole

concept of shopping has altered in terms of format and consumer buying behavior, ushering in a

4
revolution in shopping in India by Big Bazaar.

All over India, Big Bazaar attracts a few thousand customers on any regular day. Big Bazaar PRIL’s

Hypermarket format has truly heighten up the expectation of value concisions Indian customer to a new

level ever before.

In this report we have interpreted and analyzed through the primary data collected from the customers in

the Big Bazaar itself about their perception about it.

This report contains the performance in terms of sales, revenues, consumer’s satisfaction- the

customers' perception to what extent they have realized that Big Bazaar can provide real value for their

money as it claimed it to be “ Isse sasta aur achha kahi nhi”

OBJECTIVE

(i) The basic objective of this project on “BIG BAZAAR” is to know the general perception, which

the consumers have towards Big Bazaar.

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(ii) Another important objective of this project is to get information about whether or not Big Bazaar

offers quality products or not along with the cheap prices of the products.

(iii) To evaluate the overall performance of Big Bazaar considering all the factors like shopping

experience of the consumers in Big Bazaar, their general impression about the various salespersons

offering various services and products at Big Bazaar.

RESEARCH METHODOLOGY

Primary data was collected for the research and the data was collected through structured questionnaire.

The sample size was 100. Data analysis technique is quantitative and the data analysis tools are pie

charts and chi-square test. Other tools that were used in the report are trend analysis, regression,
6
correlation and forecasting.

BRIEF HISTORY OF THE ORGANIZATION: COMPANY PROFILE

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 On Oct. 12, 2001, ‘Big-Bazaar’-Isse sasta aur achcha kahin nahi, India’s first hypermarket was

launched with over 1, 70,000 products offering in the value-retailing segment.

It was when the young, first generation entrepreneur Kishore Biyani opened the country’s first

hypermarket retail outlet in Kolkatta (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. It comes under the Pantaloon Retail India Limited (PRIL). PRIL was early

to realize the potential of the huge middle-class population in India. The franchise operations realized

the problems associated with franchise model ,thus they decided to have their own retail outlets. They

launched the own retail store, “Pantaloon’s”. They have introduced the concept of seamless malls in

India through the new format Central. And, today there is a wide network of Pantaloons stores spread

across the country.

Apart from retailing lifestyle products, it ventured into value retailing by launching the

hypermarket chain. Big Bazaar is a chain that stocks all home need products under one roof; spread over

30,000 square feet of land, across different cities in India. It has been positioned as ‘Is se sasta aur

achcha kahin nahi,’ (Nothing cheaper and better anywhere) indicating the value of stores. Big Bazaar

stocks over 200,000 products that include apparel, food products, home appliances and cosmetics.
8
Products are cheaper than the market price by as much as 5 to 60%. Apparels are cheaper by 25 to 60%

while the price difference on the other products varies between 5 to 20%.

By removing inefficiencies from the distribution chain we are able to unleash attractive savings,

which are passed on to the consumer. Big-Bazaar is India’s first hypermarket in the discount store

format. Big-Bazaar provides more than 2,00,000 items- food, grocery, utensils, kitchen needs, home

needs, bath needs, toys, stationary, electronics & white goods which are sold at a discount to the

maximum retail price. Price is the principal value proposition at these stores.

A big driver of the Big Bazaar is the product variety. This is achieved by selling wide range of

products & through the “Shop-in-Shop” format. As a result, a typical Big-Bazaar comprises shops that

stocks medicines, optical accessories, camera rolls, bakery products, dry fruits, crockery, glassware,

health & beauty products, ladies accessories, electronics infant necessities, watches, clocks, computer

accessories, food & beverages, stationary, readymade garments, household appliances, home

furnishings, baggage .The Big-Bazaar has been positioned to the customer as a place where the

customer can shop for each & everything for which if goes to a market.

The private label initiative was also launched in Big-Bazaar. Understanding of the apparel

industrial, decades of experience& a vertically, integrated structure provides with more compelling

reasons to expand the number of private labels. A full range of accessories was launched in order to

supplement the apparel business including imitation jewellery, sunglasses, watches, mobile phones etc.

Analysts attribute the success of PRIL to cheaper sourcing of products and lower distribution

cost. Pantaloons sourced its products through ‘Consolidators.’ There was a consolidator for each product

category. These consolidators were responsible for procuring quality goods at the cheapest possible

price, and were paid commissions on their sale at the store. The consolidator directly dealt with

manufacturers, and as a result the distribution cost could be slashed as no intermediates were involved.

In addition to discounts on products through the year, Big Bazaar also held events such as ‘Kitchen

Mela’, ‘Trouser Mela’, etc. to attract customers.

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 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 favourite shopping destination.

Company Vision, Mission and Core values

Company’s Vision
10
 It shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most

profitable manner.

Company’s Mission

 They 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.

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

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

 They shall infuse Indian brands with confidence and renewed ambition.

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

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

the driving force to make us successful.

Core Values

 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 Action.

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

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

The SWOT analysis of Big Bazaar is as follows:

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 Strengths:

 The strengths of Big Bazaar are it is leading and growing at the faster pace.

 It has many outlets all over India. It has a good customer base.

 They launched Big-Bazaar a hypermarket with over 1, 70,000 products as the first offering in

value retailing segment. Products are cheaper than the market price by as much as 5 to 60%.

 Apparels are cheaper by 25 to 60% while the price difference on the other products varies

between 5 to 20 %.

 The Big-Bazaar has been positioned to the customer as a place where the customer can shop for

each & everything for which if goes to a market.

Weakness:

 Big Bazaar has not yet trapped the whole market.

 Facing problems due to political environment

Opportunities

 Huge untapped market

Threats

 Competition from organized retail players which are in market and emerging like Reliance,

shopper’s stop, Wal-Mart

 Competition from local retailers.

Performance Products/Services
12
 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. There’s a tremendous growth in number of outlets since

2001 all over the country. The number of Big-Bazaar stores has increased from 4 in 2002 to 21 by Oct

24, 2005. In 2006-2007, more Indians discovered the value of shopping in Big Bazaar. And with the

launch of each store, we discovered more value in terms of operational efficiency. Big Bazaar launched

27 new stores in 22 cities, covering over 1.40 million square feet. As of June 2007, there were 56 Big

Bazaar stores across 43 cities. While Big Bazaar continued to expand in the large cities, it also tapped

consumption potential in smaller cities like Agra, Allahabad, Coimbatore, Surat, Panipat, Palakkad,

Kanpur and Kolhapur. The year under review also witnessed realigning of business teams with shared

experience in category management, sourcing, front-end operations and business planning. In addition,

separate teams have been formed to look into all aspects of new store launches and to manage mature

stores. This provides more flexibility and focus in expansion plans.

The increase in SKUs in existing categories and the introduction of new categories encouraged the

opening of larger stores or Super Centres, measuring 100,000 square feet or more. There are now 5 Big

Bazaar Super Centres. Considering this scale of expansion, technology plays a significant facilitating

role. The introduction of SAP in 2005-06 and its roll out during the year positively impacted the

business.

Big Bazaar has initiated the process of Auto Replenishments Systems, thus improving operational

efficiencies and productivity. The company has also rationalized nearly 250 vendors through better

vendor management in terms of potential to expand, and for inclusion and upgradation to the online

B2B platform. The company plans to open over 60 stores across India in FY 2008, and the opening of

the 100th Big Bazaar store will mark the fastest ever expansion by a hypermarket format.

YEAR REVENUES (in crores) SALES (in crores)

13
 2004 117 80
2005 132 105
2006 165 128
2007 181 140
2008 200 160

ANALYSIS OF DATA COLLECTED

QUESTIONNAIRE

• NAME- ………………………………………….

14
• GENDER- MALE ( ) FEMALE ( )

Q-1. In a month how many times you visit Big Bazaar?

Once ( )
Twice ( )
Thrice ( )
More Than Thrice ( )
Interpretation: majority of people visited big bazaar atleast a once.

What rates would you like to give as per the following scales:
Excellent:5
Good:4
Average:3

15
Bad:2
Very bad:1

5 4 3 2
Q.2 Shopping experience ( ) ( ) ( ) ( ) ( )
in Big Bazaar:

Interpretation: Highest no. of people find it a good shopping expeience while shopping In big bazaar

Q3.Discountas and offers ( ) ( ) ( ) ( ) ( )

Served here:

Interpretation: There is different views of the people about discounts and offres provided in Big

Bazaar , ranging from excellent to bad

16
Q4.Products and brand ( ) ( ) ( ) ( ) ( )
availability :

Interpretation: Although the population had a dispersed response but still most of the people thought

that products and brands were good.

17
Q5.Product display and ( ) ( ) ( ) ( ) ( )
Signage in the store:

Interpretation: About the product display people were quite offense as although the majority said that

the product display is good but the significant point was that 20 percent of people even said that product

display is bad.

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 Q6. Quality of products ( )
( ) ( ) ( )
( )
served by Big Bazaaar:

Interpretation: To this question again the highest no. of people were to the good side even, some

stated it very good contradictingly to it .10 percent of people responded it as average where as 5 percent

even responded it as bad.

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Q7. On Wednasday- ( ) ( ) ( ) ( ) ( )
Hafte ka sabse sasta din,
how’s your experience?

Interpretation: There was not much of variation in this case as 52 which is the major percent people

stated it as a very good and rest that is 45 percent responded to it as good , while very few responded it

to be average.

Q8. Do you want ( ) ( ) ( ) ( ) ( )

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Wednesday offer day on
weekends (Saturdays)?

Interpretation: Mostly people suggested offer days to be shifted to weekends.

Q9. How do you feel about ( ) ( ) ( ) ( ) ( )

the sales persons and
promoters? Are they well dressed?

Interpretation: People were not very much happy, but the answers were ranging from good to bad.

21
Q10. Are the salespersons ( ) ( ) ( ) ( ) ( )
empathetic and give greetings?

Interpretation: Majority to the people said yes.

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 STATISTICAL TOOLS

(I) The survey was done about the shopping experience in Big Bazaar. The sample was taken 100 and

the people were asked to rate their experience as:-

Excellent , good, average, bad and very bad. Now we will make a decision whether all the customers has

same shopping experience or not.

Step 1 Ho : There is no difference in the shopping experiences of all the 100

customers .

HA : There is difference in the shopping experiences of 100 customers.

Step 2 Finding the tabulated value:-

α = 5 % = 0.05

df = k-1 = 5-1 = 4

χ 2
.05, 4 = 2.312

Step 3 Applying the formula

χ 2
statistics = Σ (O-E)2/ E

23
Scales Observed Expected (O-E) (O-E)2 (O-E)2/ E

value(O) value(E)

Excellent 18 20 -2 4 0.2

Good 54 20 34 1156 57.8

Average 16 20 -4 16 0.8

Bad 7 20 -13 169 8.45

Very bad 5 20 -15 225 11.25

Total 78.5

χ 2
calculated =Σ (O-E) /E = 78.5
2

Step 4: χ > χ
2 2
calculated tabulated

(78.5) > (2.312)

Hence, Ho is to be rejected.

Decision: There is difference in the shopping experiences of 100 customers.

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(II) Calculation of Karl Pearson’s Coefficient of Correlation between Sales and Revenue generated of

Big Bazaar from (2004-2008): -

• From the data given in the above table relating to the Sales and Revenues of “Big Bazaar” in

(Crores) we have calculated Karl Pearson’s Coefficient of Correlation to show the relation

between the sales and the revenue.

Year Sales (x) Revenues (y) dx=x-A dy=y-B dx2 dy2 dxdy

2005 80 117 -60 -48 3600 2304 2880

2006 105 132 -35 -33 1225 1089 1155
2007 128 165 -12 0 144 0 0
2008 140 181 0 16 0 256 0
2009 160 200 20 35 400 1295 700
Σ dx= -87 Σ dy = Σ dx2 Σ dy2 Σ dxdy

-30 =5369 =4874 = 4735

Here we have taken assumed mean (A)= 140

assumed mean(B)= 165

r = (Σ dxdy-((Σ dx).(Σ dy)/N))/ (√Σ dx2-(Σ dx)2/N)- (√Σ dy2-(Σ dy)2/N)

r = 4735- ((-87). (-30)/5))/ (√ 5369-(-87)2/5)- (√ 4874-(-30)2/5)

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 r = 4735-522/ √3855.2 . √4694

r = 4213/62.09*68.51

r = 4213/ 4253.7859

r = +0.99

Analysis: - In this case the correlation calculated is +0.99, which is highly positive. It indicates that both

Sales and Revenue of Big Bazaar are positively correlated i.e. both the sales and revenue are

consistently increasing which is a good situation for Big Bazaar, as more and more consumers are being

attracted to purchase the products offered by Big Bazaar.

(III) Calculation Of Trend Values of Revenues of Big Bazaar and representing it with the help of a Graph: -

Year (x) Revenues (y) X=X-A X2 XY Y2

2004 117 -2 4 -234 115

2005 132 -1 1 -132 137

2006 165 0 0 0 159

2007 181 1 1 181 181

2008 200 2 4 400 203

Σ Y=795 Σ X=0 Σ =10 Σ X`Y=215
X2

26
Σ Y=Na+bΣ X-----(i)

Σ XY=aΣ X+ bΣ X∧2

Σ Y=795

795=5a+0

a=159

Σ XY=aΣ X+bΣ X∧2----(ii)

215=159*0+ b*10

b=215/10

b=21.5 or 22

(i) Yc=a+bx

Yc=159+22(-2)

Yc=159+(-44)

27
Yc=115

(ii) Yc=a+bx

Yc=159+22(-1)

Yc=137

(iii) Yc=a+bx

Yc=159+22(0)

Yc=159

(iv) Yc=a+bx

Yc=159+22(1)

Yc=181

(v) Yc=a+bx

28
Yc=159+22(2)

Yc=203

X-axis: Years (2004-2008)

Y-axis: Value of Yc∧2 from the Table above is taken.

29
 (IV) Calculation of Regression Coefficients with the help of Regression Analysis: -

Year Sales(x) x=X-X x∧2 Revenues (y) y=Y-Y y∧2 xy

2004 80 -43 1849 117 -42 1764 1806

2005 105 -18 324 132 -27 729 486

2006 128 5.0 25 165 6.0 36 30

2007 140 17.0 289 181 22 484 374

2008 160 37.0 1369 200 41 1681 1517

Σ X=-2 Σ X∧2=3856 Σ Y=0 Σ Y∧2 4213

4694

X=Σ X/N=> 613/5=>122.6 or 123

Y=Σ Y/N=>795/5=>159

In 2009 the Revenues of Big Bazaar are expected to reach 240 Crores.

So, in this case we will calculate the Regression Equation of X on Y i.e. (Sales on Revenues)

i) Regression Equation of X on Y: -

(X-X)= bxy (Y-Y)

30
bxy = Σ xy/Σ y
^2

bxy = 4213/4694

bxy =0.90

Regression Equation of X on Y (Sales on Revenues): -

X-X= bxy (Y-Y)

X-123=0.90(Y-159)

X-123=0.90Y-143.1

X-0.90Y= -143.1+123

X-0.90Y= -20.1

X=0.90Y-20.1

Now, we will substitute the value of Revenues for 2009(Y) in the equation of X: -

X=0.90Y-20.1

X=0.90(240)-20.1
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X=216-20.1

X=195.9 or 196 Crores.

Analysis: Sales calculated for the year 2009 is 196 Crores. This signifies that the sales of Big Bazaar

will definitely show an upward trend in the coming years. As in 2009 the expected revenue is 240

Crores, so the sales are also increasing alongwith it.

(IV) Forecasted revenue

Year Y (revenue in X Xy X^2

crore)
2005 117 -2 -234 4
2006 132 -1 -132 1
2007 165 0 0 0
2008 181 1 181 1
2009 200 2 400 4
795 0 215 10

Y = a + bx

∑y = na + a∑x

∑xy = n∑x + b∑x^2

∑x=0, ∑x^2=10, ∑y=795

n=5, ∑xy=215

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∑y = na + a∑x

795 = 5a +a0

a = 159

∑xy = n∑x + b∑x^2

215 = 0 + b10

b = 21.5

y = a + bx

y = 159 + 21.5 (3)

= 180.5 (3)

therefore. Forecasted revenue = 541.5

33
 CONCLUSION

From this project we can conclude that “Big Bazaar” is quite popular among the consumers. The quality

of products offered by Big Bazaar is good and is appreciated by the consumers. Big Bazaar should

maintain this standard in the near future in order to compete with its various competitors and strive

ahead of them in the near future by bringing about innovation in its products and the techniques of

offering those products. The customers are satisfied with the discounts and offers ,brands availability ,

quality of the products served and signages in the stores .

Concluding our report as a whole, we got to know that BIG BAZAAR has showed that Isse sasta aur

achcha kahin nahi and it has proved A SUCCESSFUL STORY in the RETAIL INDUSTRY.

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RECOMMENDATIONS & MANAGERIAL IMPLICATIONS

(i) The awareness and mange home delivery services in a proper manner should be created more.

(ii) Proper signage should be ensured so that customers can locate the product easily.

(iii) Cleanliness and hygiene should be maintained regularly.

(iv) Proper training should be imparted to various salespersons so that they can deal with the customers

efficiently.

(v) The quality of the products should be maintained.

(v) Product visibility of other brands should be emphasized.

(vi) Billing department should be more efficient.

(vii) Trolleys and baskets should be kept in order assuring customers' convenience.

(viii) Management should take care of the assigned salespersons for a particular department only.

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SCOPE OF THE STUDY

In this project on “Big Bazaar” our scope of study includes the survey done to collect the opinions of the

general consumers and their perception of Big Bazaar. This has been shown through the medium of

Questionnaire, where the sample size taken is 100. This project is not merely confined to the opinions

given by only a particular category of consumers for Big Bazaar but all categories and age- groups

including the youth and the set of family groups who frequently visit “Big Bazaar” and are aware of the

various offers going on from time to time.

36
 LIMITATIONS OF THE STUDY

• Some respondents refuse to co-operate.

• Some respondents replied half- heartedly.

• Some respondents gave incomplete information.

• The survey was conducted in very general way as no other variable such as their education level,

occupation.

37
 REFERENCES: -

Books :-

 Gupta S.C. , Fundamentals Of Statistics, Sixth Edition

 Bharadwaj R.K., Chetiya Anuradha R., Majumdar Kakali, Quantitative Techniques For Business

Managers, First Edition

Internet:-

 http://en.wikipedia.org/wiki/Big_Bazaar

 http://bigbazaar.futurebazaar.com/indexBigBazaar.jsp?_requestid=16948

 http://www.futurebazaar.com/index.jsp?_requestid=17039

 http://retailigence.wordpress.com/2008/10/04/big-bazaar-–-india’s-real-retail-story/

Newspaper: -

The Times Of India ( )

38
 ANNEXURE

QUESTIONNAIRE

• NAME- ………………………………………….

• GENDER- MALE ( ) FEMALE ( )

Q-1. In a month how many times you visit Big Bazaar?

Once ( )
Twice ( )
Thrice ( )
More Than Thrice ( )

What rates would you like to give as per the following scales:
Excellent:5
Good:4
Average:3
Bad:2
Very bad:1

5 4 3 2 1

39
Q.2 Shopping experience ( ) ( ) ( ) ( ) ( )
in Big Bazaar:

Q3.Discountas and offers ( ) ( ) ( ) ( ) ( )

Served here:

Q4.Products and brand ( ) ( ) ( ) ( ) ( )

availability :

Q5.Product display and ( ) ( ) ( ) ( ) ( )

Signage in the store:

Q6. Quality of products ( ) ( ) ( ) ( ) ( )

served by Big Bazaaar:

Q7. On Wednasday- ( ) ( ) ( ) ( ) ( )
Hafte ka sabse sasta din,
how’s your experience?

Q8. Do you want ( ) ( ) ( ) ( ) ( )

Wednesday offer day on
weekends (Saturdays)?

Q9. How do you feel about ( ) ( ) ( ) ( ) ( )

the sales persons and
promoters? Are they well dressed?

Q10. Are the salespersons ( ) ( ) ( ) ( ) ( )

empathetic and give greetings?

40
41